[Federal Register Volume 61, Number 54 (Tuesday, March 19, 1996)]
[Rules and Regulations]
[Pages 11142-11149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6466]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[IN56-1-7077a; FRL-5426-4]


Approval and Promulgation of Air Quality Implementation Plans; 
Indiana: Motor Vehicle Inspection and Maintenance

AGENCY: United States Environmental Protection Agency (USEPA).

ACTION: Direct final rule.

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SUMMARY: The U.S. Environmental Protection Agency (USEPA) is giving 
full approval through a direct final action to a state implementation 
plan (SIP) revision submitted on June 6, 1995 and September 28, 1995, 
by the Indiana Department of Environmental Management (IDEM). This 
revision provides for the adoption and implementation of an enhanced 
motor vehicle emission inspection and maintenance (I/M) program in the 
areas of Lake, Porter, Clark, and Floyd Counties. The Lake and Porter 
County area is designated severe nonattainment for ozone and is 
required to implement an enhanced I/M program. The Clark and Floyd 
County area is designated moderate nonattainment for ozone and has 
opted to implement enhanced I/M. These areas are required to attain the 
National Ambient Air Quality Standards (NAAQS) as specified under the 
Clean Air Act (Act) by 2007 and 1996, respectively. The implementation 
of this important program in the areas stated above will reduce vehicle 
emissions which contribute to the formation of urban smog in Indiana by 
more than 4.5 tons per day. In the proposed rules section of this 
Federal Register, USEPA is proposing approval of this I/M program and 
SIP revision, and solicits public comments on the action. If adverse 
comments are received on this direct final rule, USEPA will withdraw 
this final rule and address these comments in a subsequent final rule 
based on the proposed rule.

DATES: This final rule is effective on May 20, 1996 unless adverse or 
critical comments are received by April 18, 1996. If the effective date 
is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Copies of Indiana's I/M SIP submittal, and other documents 
pertinent to this direct final rule are available at the following 
address: U.S. Environmental Protection Agency, Region 5, Air and 
Radiation Division, Regulation Development Branch, 77 West Jackson 
Boulevard, Chicago, Illinois 60604.
    Comments on this rule should be addressed to: J. Elmer Bortzer, 
Chief, Regulation Development Section, Air Programs Branch (AR-18J), 
United States Environmental Protection Agency, Region 5, 77 West 
Jackson Boulevard, Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Environmental 
Engineer, Regulation Development Section, Air Programs Branch (AR-18J), 
United States Environmental Protection Agency, Region 5, 77 West 
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6061.
    Anyone wishing to come to Region 5 offices should first contact 
Francisco J. Acevedo.

SUPPLEMENTARY INFORMATION:

I. Introduction

    Motor vehicles are significant contributors of volatile organic 
compounds (VOC), carbon monoxide (CO), and nitrogen oxide (NOX) 
emissions. The motor vehicle inspection and maintenance program is an 
effective means of reducing these emissions. Despite improvements in 
emission control technology in past years, mobile sources in urban 
areas continue to remain responsible for roughly half of

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the emissions of VOC causing ozone, and most of the emissions of CO. 
They also emit substantial amounts of nitrogen oxides and air toxics. 
This is because the number of vehicle miles traveled has doubled in the 
last 20 years to 2 trillion miles per year, offsetting much of the 
technological progress in vehicle emission control over the same 
period. Projections indicate that the steady growth in vehicle miles 
will continue.
    Under the Act, the USEPA is pursuing a three-point strategy to 
achieve emission reductions from motor vehicles. The development and 
commercialization of cleaner vehicles and cleaner fuels represent the 
first two elements of the strategy. These developments will take many 
years before cleaner vehicles and fuels dominate the fleet and 
favorably impact the environment. This document deals with the third 
element of the strategy, vehicle inspection and maintenance, which is 
aimed at the reduction of emissions from the existing fleet by ensuring 
that vehicles are maintained to meet the emission standards established 
by USEPA. Properly functioning emission controls are necessary to keep 
pollution levels low. The driving public is often unable to detect a 
malfunction of the emission control system. While some minor 
malfunctions can increase emissions significantly, they do not affect 
drivability and may go unnoticed for a long period of time. Effective 
I/M programs can identify excessive emissions and assure repairs. The 
USEPA projects that sophisticated I/M programs such as the one being 
implemented by Indiana will identify emission related problems and 
prompt the vehicle owner to obtain timely repairs thus reducing 
emissions.
    The Act requires that certain areas which have not attained the 
ozone NAAQS adopt either a ``basic'' or ``enhanced'' I/M program, 
depending on the severity of the pollution and the population of the 
area. Moderate ozone nonattainment areas, plus marginal ozone areas 
with existing or previously required I/M programs in Census-defined 
urbanized areas, fall under the ``basic'' I/M requirements. Basic and 
enhanced I/M programs both achieve their objective by identifying 
vehicles that have high emissions as a result of one or more 
malfunctions, and requiring them to be repaired. An ``enhanced'' I/M 
program covers more vehicles in operation in the fleet, employs 
inspection methods which are better at finding high emitting vehicles, 
and has additional features to better assure that all vehicles are 
tested properly and effectively repaired. The Act directed USEPA to 
establish a minimum performance standard for enhanced I/M programs. The 
standard is based on the performance achievable by annual inspections 
in a centralized test program. States have flexibility to design their 
own program if they can show that their program is as effective as the 
model program used in the performance standard. Naturally, the more 
effective the program the more credit a State will get toward the 
emission reduction requirement.
    The USEPA and the States have learned a great deal about what makes 
an I/M program effective since the Clean Air Act of 1977 first required 
I/M programs. There are three major keys to an effective program:
    (1) Given the advanced state of current vehicle design and 
anticipated technology changes, the ability to accurately ``fail'' 
problem vehicles and ``pass'' clean ones requires improved test 
equipment and test procedures;
    (2) Comprehensive quality control and aggressive enforcement is 
essential to assuring the testing is done properly;
    (3) Skillful diagnostics and capable mechanics are important to 
assure that failed cars are fixed properly.
    These three factors are missing in most older I/M programs. 
Specifically, the idle and 2500 RPM/idle short tests and anti-tamper 
inspections used in these older I/M programs are not as effective in 
identifying and reducing in-use emissions from the types of vehicles in 
the current and future fleet. Also, covert audits by USEPA and State 
agencies typically discover improper inspection and testing 50 percent 
of the time in test-and-repair stations, indicating poor quality 
control. Experience has shown that quality control at high-volume test 
only stations is usually much better. And, finally, diagnostics and 
mechanics training are often poor or nonexistent.
    On November 5, 1992 (57 FR 52950), USEPA established a high-tech 
emission test for high-tech cars. This I/M test, known as the IM240 
test, is so effective that biennial test programs yield almost the same 
emission reduction benefits as annual programs. The test can also 
accurately measure NOX emissions where NOX is important to 
address an ozone problem. Adding the pressure and purge test increases 
the benefit even more, resulting in lower testing costs and consumer 
time demands. The pressure test is designed to find leaks in the fuel 
system, and the purge test evaluates the functionality of the vapor 
control system. In addition, USEPA published additional changes to the 
I/M rule in the Federal Register on September 18, 1995 (60 FR 48029), 
in order to provide greater flexibility to states required to implement 
I/M programs.

II. Background

    The State of Indiana contains the Lake and Porter County area which 
is classified as a severe nonattainment area for ozone, and the Clark 
and Floyd County area which is classified as a moderate nonattainment 
area for ozone. On June 6, 1995, IDEM submitted a complete SIP revision 
request containing the I/M program. USEPA made a finding of 
completeness in a letter dated June 9, 1995. This submittal includes 
new I/M regulations adopted on April 5, 1995 by the Indiana Air 
Pollution Control Board and documentation addressing required portions 
of the Federal I/M rule. The rules were signed by Governor Bayh on June 
20, 1995, and the final rules were published in the Indiana Register on 
August 1, 1995. On September 28, 1995, IDEM submitted additional 
documentation for the Indiana I/M SIP. Under IC 13-1-1 and 13-7-7, the 
Air Pollution Control Board has the authority to adopt air pollution 
regulations for the State under Title 326 Indiana Administrative Code. 
The adopted regulation changes the current program in all four counties 
from a basic I/M program to an enhanced I/M program. In addition to the 
Indiana I/M rule, the State SIP submittal includes the Indiana I/M 
Performance Standard Modeling Demonstration (August 30, 1995); State of 
Indiana Request for Proposal #A305-2038 for the Indiana Department of 
Environmental Management (December 14, 1993); Systems Control Inc. 
Contract for Services with Amendments; Systems Control Inc. Proposed 
Public Information Plan; Supplemental I/M State Implementation Plan 
Document (September 27, 1995). USEPA summarizes the requirements of the 
Federal I/M regulations as found in 40 CFR 51.350-51.373 and its 
analysis of the state submittal below. Parties desiring additional 
details on the Federal I/M regulation are referred to the November 5, 
1992, Federal Register document (57 FR 52950) and 40 CFR 51.350-51.373.

III. EPA's Analysis of the Indiana, Enhanced I/M Program

    As discussed above, section 182 of the Act requires that states 
adopt and implement updated regulations for I/M programs in moderate 
and above ozone nonattainment areas. The following sections of this 
document summarize the requirements of the Federal I/M regulations and 
address whether the

[[Page 11144]]
elements of the State's submittal comply with the Federal rule.

Applicability--40 CFR 51.350

    Under the requirements of the Act, basic I/M programs are required 
in a number of areas classified as moderate nonattainment for ozone. In 
Indiana, these areas are: Clark and Floyd Counties. In addition, areas 
classified as serious and above are required to implement an enhanced 
I/M program. In Indiana, these are Lake and Porter Counties. The 
Indiana submittal contains the legal authority and regulations 
necessary for IDEM to establish the program boundaries and operate an 
enhanced I/M program in all four counties cited above. 326 IAC 13-1.1 
specifies that the geographic boundaries of the program in each area 
are county-wide. The program boundaries described in the Indiana 
submittal meet the Federal I/M requirements under Section 51.350 and 
are approvable. The Federal I/M regulation requires that state programs 
not lapse prior to the time they are no longer needed. USEPA believes 
that a program that does not lapse prior to the attainment deadline for 
each applicable area would meet this requirement. The attainment date 
for the Clark and Floyd County nonattainment area is November 15, 1996, 
and the attainment date for the Lake and Porter County nonattainment 
area is November 15, 2007. The State I/M regulation contained in the 
Indiana submittal allows for implementation of the program through the 
attainment date for each of the areas listed above, and is therefore 
approvable.

Enhanced I/M Performance Standard--40 CFR 51.351

    The enhanced I/M program must be designed and implemented to meet 
or exceed a minimum performance standard, which is expressed as 
emission levels in area-wide average grams per mile (gpm) for certain 
pollutants. The performance standard shall be established using local 
characteristics, such as vehicle mix and local fuel controls, and the 
following model I/M program parameters: network type, start date, test 
frequency, model year coverage, vehicle type coverage, exhaust emission 
test type, emission standards, emission control device, evaporative 
system function checks, stringency, waiver rate, compliance rate and 
evaluation date. The emission levels achieved by the state's program 
design shall be calculated using the most current version, at the time 
of submittal, of the USEPA mobile source emission factor model. At the 
time of the Indiana submittal, the most current version was MOBILE5a. 
Areas shall meet or exceed the performance standard for the pollutants 
which cause them to be subject to I/M requirements. In the case of 
ozone nonattainment areas, the performance standard must be met for 
both nitrogen oxides (NOX) and volatile organic compounds (VOCs).
    The Indiana submittal includes the following program design 
parameters: centralized test only network; January 1, 1996 start date; 
biennial frequency; 1976 and newer model year coverage; Vehicle type 
include LDGV, LDGT1, LDGT2 up to 9,000 pounds; IM240 for 1981 and newer 
vehicles, and Idle for 1976 through 1980 vehicles; four element visual 
inspection; purge test on 1981 and newer vehicles; pressure test on 
1976 and newer vehicles; stringency rate will be 20 percent for 1980 
and older vehicles; waiver rate will be 3 percent and a 95 percent 
compliance rate for Clark and Floyd Counties and 96 percent compliance 
rate for Lake and Porter Counties.
    The Indiana program design parameters meet the Federal I/M 
regulations and are approvable. The emission levels achieved by the 
State, for each area, were modeled using MOBILE5a. The modeling 
demonstration was performed correctly, using local characteristics 
where available and it demonstrated that the program design will meet 
the enhanced I/M performance standard, expressed in gpm, for VOCs and 
NOX for each milestone and for the attainment deadline. The 
modeling demonstration is approvable.

Network Type and Program Evaluation--40 CFR 51.353

    The two Indiana ozone nonattainment areas required to implement an 
I/M program will be implementing an enhanced I/M program. In both areas 
a single contractor, Systems Control, Inc., will operate a test-only 
centralized network for inspections and reinspection. All vehicles 
included in the emission reduction demonstration will be tested by the 
contractor in centralized I/M test facilities. The contract specifies 
that the contractor is barred from involvement in motor vehicle-related 
business with the exception of vehicle testing equipment fabrication 
and sales. The Indiana I/M program plan calls for IDEM to institute an 
ongoing evaluation of the enhanced I/M program consistent with USEPA 
regulations to quantify the emissions reductions benefits of the 
program to verify that it is meeting the requirements of the Act. The 
evaluation will consist of monitoring the performance of IM240 on a 
random, representative sample of at least 0.1 percent of the vehicles 
subject to inspection and covering 1981 and later vehicles. Evaporative 
system purge (1981 and newer vehicles) and pressure tests (1976 and 
newer vehicles) will be performed on those vehicles subject to the test 
requirements. The State's plan describes the manner in which the State 
will perform the evaluation: using IDEM auditors, visiting each lane at 
every station quarterly, choosing vehicles at random at different times 
of the day, performing calibration checks, and ensuring the selected 
vehicles represent the fleet mix in the test area. Data will be 
collected as part of the regular data collection system for routine 
testing. IDEM will submit biennial reports on the results of the 
evaluations. The reports will assess whether the program is meeting the 
emission reduction target. The State's submittal meets the network type 
and program evaluation requirements in the Federal I/M rules.

Adequate Tools and Resources--40 CFR 51.354

    The Federal regulation requires states to demonstrate that adequate 
funding of the program is available. Reliance on funding from a state 
or local General Fund is not acceptable unless doing otherwise would be 
a violation of the State's Constitution. The SIP shall include a budget 
plan which describes the source of funds for personnel, program 
administration, program enforcement, and purchase of equipment. The SIP 
shall also detail the number of personnel dedicated to the quality 
assurance program, data analysis, program administration, enforcement, 
public education and assistance and other necessary functions. Indiana 
has entered into a contract for services with Systems Control, Inc. to 
conduct enhanced I/M testing in Lake, Porter, Clark, and Floyd 
Counties. This contract has a ten-year duration. During the first two 
years of the program, Indiana intends to use $6.8 million in Congestion 
Mitigation and Air Quality funds and $4.2 million in State funds to 
operate the program. The submittal demonstrates that sufficient funds, 
equipment and personnel have been appropriated to meet program 
operation requirements. The State's submittal meets the adequate tools 
and resources requirements set forth in the Federal I/M regulations.

Test Frequency and Convenience--40 CFR 51.355

    The enhanced I/M performance standard assumes an annual test 
frequency; however, other schedules may be approved if the performance

[[Page 11145]]
standard is achieved. The SIP shall describe the test year selection 
scheme and shall include the legal authority, regulations, or contract 
provisions necessary to implement and enforce the test frequency 
requirement. The program shall be designed to provide convenient 
service to motorists by ensuring short waiting times, short driving 
distances and regular testing hours. The Indiana enhanced I/M 
regulation provides for a biennial test frequency for all subject 
vehicles. New vehicles are exempt from testing the first year. Based on 
the performance standard modeling provided by the State, the enhanced 
I/M program meets the performance standard accounting for biennial test 
frequency. For re-registration the vehicles are placed back into the 
testing cycle according to their vehicle identification number (VIN). 
In Indiana's biennial program if the last three digits of the VIN are 
from 000 to 495, or if the VIN contains any letters in place of the 
last three digits, such vehicles will be tested in even-numbered 
calendar years. If the last three digits of the VIN are from 496 to 
999, such vehicles will be tested in odd-numbered calendar years. Used 
vehicles that are not currently registered in the four subject counties 
must be tested and receive a valid emission test certificate prior to 
registration in the subject counties. The State plan specifies that 
test facilities are located such that eighty (80) percent of all 
motorists in urban areas do not have to drive more than five (5) miles 
to a test facility, and ninety-six (96) percent in urban areas will not 
have to drive more than twelve (12) miles. The I/M contract specifies 
at least fifty-four (54) hours of operation of a test facility per 
week. These provisions are approvable.

Vehicle Coverage--40 CFR 51.356

    The performance standard for enhanced I/M programs assumes coverage 
of all 1968 and newer model year light duty vehicles and light duty 
trucks up to 8,500 pounds gross vehicle weight rating (GVWR), and 
includes vehicles operating on all fuel types. Other levels of coverage 
may be approved if the necessary emission reductions are achieved. The 
Indiana I/M program requires coverage of all 1976 and newer gasoline 
powered light duty passenger cars, light duty trucks up to 9,000 pounds 
GVWR. The Indiana Bureau of Motor Vehicles (IBMV) data available on the 
current fleet does not include vehicles owned by the U.S. General 
Services Administration or the U.S. Post Office. These government 
vehicles are required to be tested but are not currently part of the 
State data base. IDEM is working with these organizations to establish 
a testing routine and schedule for these vehicles, which are not 
presently licensed by the IBMV. The Indiana program exempts vehicles 
older than model year 1976, motor cycles, vehicles over 10,000 pounds, 
and diesel-fueled vehicles, electric vehicles, farm vehicles, and 
recreational vehicles. USEPA agrees with the State that these vehicles 
do not make up a significant portion of the total motor vehicle fleet 
in the tested area and most are not included in the modeling for the 
performance standard. Additional information and other statistical 
information regarding the fleet, required to manage the program, will 
become available following the first test cycle. This section is 
approvable.

Test Procedures and Standards--40 CFR 51.357

    Written test procedures and pass/fail standards are required to be 
established and followed for each model year and vehicle type included 
in the program. Federal test procedures and standards are found in 40 
CFR 51.357 and in the draft USEPA document entitled ``High-Tech I/M 
Test Procedures, Equipment Standards, Quality Control Requirements, and 
Equipment Specifications'', EPA-AA-EPSD-IM-93-1, finalized in April 
1994. IDEM has the authority to establish test procedures according to 
the needs of the program. The Indiana submission requires the 
contractor to develop and maintain written up-to-date procedures which 
correspond to the USEPA recommended test procedures. All applicable 
1981 and newer vehicles will be subject to an IM240 test that includes 
the purge and pressure test. All applicable 1976 through 1980 vehicles 
will be subject to a BAR90 single-speed idle test that includes the 
pressure test. The IM240 test will include a fast-pass algorithm. All 
vehicles will be tested in an as-received condition and vehicle owners 
will have an opportunity to view the test from an area at the test site 
that affords an unobstructed view. Each vehicle will be inspected prior 
to the emissions test and rejected from testing if any unsafe condition 
exists or if the exhaust is leaking or missing. In the event of an 
emission failure of any kind, all components are retested after 
repairs. These provisions are approvable.

Test Equipment--40 CFR 51.358

    The Federal regulation requires computerized test systems for 
performing any measurement on subject vehicles. IDEM lists the details 
of the technical specification of the test equipment in the Indiana 
SIP, and makes reference to the requirements of the Federal regulations 
and the technical guidance document. Computerized test systems are 
required for performing any measurements on subject vehicles. According 
to the requirements in the SIP, these systems must conform to Federal 
requirements. Each of the State's test lanes shall be equipped with a 
dynamometer, constant volume sampler, non-dispersive infrared analyzers 
to measure carbon monoxide, carbon dioxide, and hydrocarbons, and an 
analyzer for measuring NOx, and pressure and purge test equipment. 
All of this equipment must pass an acceptance test before it is 
approved by the State. All test systems will be linked by a real-time 
data link in order to prevent unauthorized multiple initial tests on 
the same vehicle in the same test cycle. These provisions are 
approvable.

Quality Control--40 CFR 51.359

    Quality control measures shall ensure that emission measurement 
equipment are calibrated and maintained properly, and that inspection, 
calibration records, and control charts are accurately created, 
recorded and maintained. IDEM prepared the I/M contract to require the 
contractor to develop and implement a quality assurance/quality control 
plan which complies with 40 CFR 51.359. The Indiana SIP states that the 
contractor's quality control procedures shall ensure that emission 
measurement equipment are properly calibrated and maintained. Analyzers 
will automatically record quality control check information, lockouts, 
attempted tampering, and any other recordable circumstances that impact 
quality control. These provisions are approvable.

Waivers and Compliance Via Diagnostic Inspection--40 CFR 51.360

    The I/M program allows the issuance of a waiver, which is a form of 
compliance with the program requirements, that allows a motorist to 
comply without meeting the applicable test standards, as long as the 
prescribed criteria are met. The State program plan contains elements 
in this section which generally follow the waiver issuance criteria 
listed in the Federal I/M regulation. In modeling the emission 
reduction benefits, Indiana used MOBILE5a and assumed a maximum waiver 
rate of 3 percent for 1980 and older model year vehicles and 3 percent 
for 1981 and newer vehicles. In the event the actual waiver rate 
exceeds the planned maximum used for estimating the emission reduction 
benefit, the State will remodel to assess the emission

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reduction benefits based on the actual waiver rate. The Indiana I/M 
rule provides the authority to issue waivers, set and adjust cost 
limits, and administer the waiver system. Following a test failure, the 
subsequent reinspection must show that the minimum waiver limit amount 
has been spent on emission related repairs. A vehicle is eligible for a 
waiver when proof is provided that the vehicle has received all repairs 
and adjustments for which it is eligible under any emissions 
performance warranty. The costs associated with repair of any tampering 
is not considered valid toward a waiver. When proof is provided to the 
inspection station manager that appropriate repairs have been performed 
on the vehicle, such vehicle will be eligible for a waiver. The 
inspection station manager is responsible for verifying repairs and 
reviewing repair receipts. The station managers are authorized to 
determine waiver eligibility. Waivers are valid for one (1) year and 
are not renewable. The minimum expenditure made on emission repairs in 
Clark and Floyd Counties is seventy-five ($75) dollars for 1980 and 
older vehicles and two-hundred ($200) dollars for 1981 and newer. While 
the Clean Air Act requires a minimum waiver repair expenditure for 
enhanced I/M programs of $450, basic areas such as the Clark and Floyd 
county areas which are opting up to enhanced I/M do not have to meet 
this requirement. In order to qualify for a waiver in the Lake and 
Porter Counties, motorists with 1981 model year or newer vehicles shall 
spend at least three hundred dollars in repairs between January 1, 
1996, and December 31, 1998; and at least four hundred fifty dollars in 
repairs on or after January 1, 1999. Beginning in January 1, 2000, IDEM 
shall adjust the four hundred fifty dollar minimum expenditure in 
January of each year by the percentage, if any, by which the Consumer 
Price Index (CPI) for the preceding calendar year differs from the CPI 
for 1989. Motorists in Lake and Porter County with 1980 model year or 
older vehicles shall expend at least seventy-five dollars in repairs. 
The State allows exemptions to the inspection requirement and 
extensions if a vehicle is undergoing extensive repair at the time of 
its registration or registration renewal. The requirements for an 
extension or exemption are sufficient to allow the State full 
understanding of the need by the consumer for the extension or 
exemption, and places a burden on the consumer to prove to the State 
that such an extension or exemption is needed. The Federal I/M rules 
also allow the use of compliance via diagnostic inspection following 
repairs after a test failure. The State of Indiana has chosen to allow 
compliance via diagnostic repair. These provisions are approvable.

Motorist Compliance Enforcement--40 CFR 51.361

    The Federal regulations require the use of registration denial to 
ensure compliance with the requirements of the I/M program. IDEM, along 
with the IBMV, will continue to implement a registration denial 
enforcement program. Vehicle owners who do not renew vehicle 
registrations, and continue to drive an unregistered vehicle in the 
State, will be subject to enforcement action by any law enforcement 
officer in the State. Local governments are responsible for 
establishing policies for the mandatory fines of all traffic violations 
including failing to comply with registration requirements. Owners of 
all vehicles registered in the State are required to affix stickers to 
the upper portion of the license plate. These stickers identify the 
month and year of the registration renewal date. If an owner or driver 
fails to comply with I/M or registration requirements, he or she will 
be unable to legally drive that automobile and will be subject to 
enforcement action. In the I/M SIP, Indiana commits to the level of 
motorist enforcement necessary to ensure a compliance rate of no less 
than 96 percent among subject vehicles in Lake and Porter Counties and 
95 percent in Clark and Floyd counties. If it is determined as part of 
the required program evaluation that the I/M program is not meeting the 
compliance rate, Indiana commits to investigating the problem and 
instituting changes to improve the compliance rates. These provisions 
are approvable.

Motorist Compliance Enforcement Program Oversight--40 CFR 51.362

    The Federal I/M regulation requires that the enforcement program 
shall be audited regularly and shall follow effective program 
management practices, including adjustments to improve operation when 
necessary. The SIP shall include quality control and quality assurance 
procedures to be used to insure the effective overall performance of 
the enforcement system. An information management system shall be 
established to characterize, evaluate and enforce the program. The 
legal authority for the implementation of an I/M program is found in 
Indiana Environmental Statutes IC 13-1-1 and 13-7-7. These statutes 
provide the authority necessary to develop and implement the 
enforcement program oversight element of the I/M program. Specific 
operation of this aspect of the program is contained in 326 IAC 13-1.1-
3. Program oversight shall be accomplished by IDEM staff using two 
oversight personal computers located at IDEM. The information base for 
the enforcement program is assured through the use of trackable serial 
numbers and test lane and inspector identifiers, such that responsible 
personnel can be identified. Program software precludes any duplicate 
initial inspections being conducted. Follow-up of exempt vehicles and 
exemption-triggering registration changes will be done through periodic 
program documentation audits. These provisions are approvable.

Quality Assurance--40 CFR 51.363

    An ongoing quality assurance program shall be implemented to 
discover, correct and prevent fraud, waste, and abuse in the program. 
The program shall include covert and overt performance audits of the 
inspectors, audits of station and inspector records, equipment audits, 
and formal training of all State I/M enforcement officials and 
auditors. A description of the quality assurance program which includes 
written procedure manuals on the above discussed items must be 
submitted as part of the SIP.
    Both 326 IAC 13-1.1-16 and the I/M contract with Systems Control, 
Inc., include provisions necessary to develop and implement the quality 
assurance element of the I/M program. Overt audits shall include a 
check of document security; recordkeeping practices; licenses, 
certificates and required display information; observation and written 
evaluation of each inspector's ability to perform the test procedure; 
and, a quality control evaluation of test equipment. Test records will 
be reviewed electronically once a month by station to flag 
statistically inconsistent or improbable results. The program shall 
conduct yearly covert audits based upon the number of inspectors 
participating in the program. Additional covert audits may be conducted 
as necessary for suspected problem sites. Covert vehicles will be set 
to fail various aspects of the inspection so as to reflect the full 
range of technology and malfunction types based upon procedures 
established for audits. These provisions are approvable.

Enforcement Against Contractors, Stations and Inspectors--40 CFR 51.364

    The Federal I/M regulation requires the establishment of minimum 
penalties for violations of program rules and

[[Page 11147]]
procedures which can be imposed against stations, contractors and 
inspectors. Senate Enrolled Act No. 285 amended the Indiana 
Administrative Code and gives IDEM authority to enter into a contract 
to implement and maintain an inspection and maintenance program. This 
contract allows the State to impose penalties when violations occur 
that adversely affect the operation of the inspection network. The 
contract lists a variety of rules infractions, which will be used for 
violations discovered at an inspection facility as a result of overt 
and covert audits conducted by IDEM staff. Penalties range from 
monetary fines to termination of employment and breach of contract 
depending on the violation. Under 326 IAC 13.1.1-15, in cases of 
inspector incompetence, IDEM may suspend, revoke, or deny renewal of an 
inspector's state certification. All warnings, fines, suspensions, 
revocations, and notices of violation will be recorded as enforcement 
activities. An Enforcement Activity Summary Report will be compiled and 
submitted to USEPA annually. These provisions of the Indiana submittal 
are approvable.

Data Collection--40 CFR 51.365

    In order to manage, evaluate and enforce the program requirements, 
an effective I/M program requires accurate data collection. The Indiana 
I/M program requires the contractor to design the program to include 
all of the elements of data collection listed in the Federal rule and 
326 IAC 13-1.1-14. The contractor is also required to conduct quality 
control checks and report data from those checks. This section of the 
Indiana submittal is approvable.

Reporting--40 CFR 51.366

    Data analysis and reporting are required in order to monitor and 
evaluate the program by the State and the USEPA. The Federal rule 
requires annual reports submitted to the USEPA following a performance 
period by a specific time. The Indiana I/M program requires the 
contractor to provide the information to the State in order to meet the 
submittal requirements of the Federal rule. Beginning July 1, 1997, and 
annually thereafter, the State of Indiana shall report summary data 
based upon program activities taking place from January through 
December of the previous year. This report will provide statistics for 
the testing program, the quality control program, the quality assurance 
program, and the enforcement program. In the I/M SIP, the State commits 
to address any appropriate data elements listed in 40 CFR 51.366. 
Beginning July 1, 1999, and biennially thereafter, Indiana will report 
on all changes made in the program design, funding, personnel levels, 
procedures, regulations, and legal authority, and will outline the 
impact of such changes upon the program. The report will also discuss 
any weakness or problems discovered in the program over the previous 
two-year period, as well as the steps that were taken to address those 
problems, the result of those corrective actions, and any future 
efforts planned. These provisions of the Indiana submittal are 
approvable.

Inspector Training and Licensing or Certification--40 CFR 51.367

    The Federal I/M regulation requires all inspectors to be formally 
trained and licensed or certified to conduct inspections. The Indiana 
I/M regulation (326 IAC 13-1.1-15) requires all inspectors to receive 
formal training, be certified, and renew their certification at least 
every two years. In order to be licenced by the State, an inspector 
shall be required to pass an examination developed by the State in 
conjunction with the contractor, which shall include both written and 
practicum sections. Curricula shall include, but will not be limited 
to, the following: emission testing program orientation, State 
policies, vehicle emissions and standards, inspection and facility 
operations procedures, customer service, and complaint handling. This 
provision meets the Federal I/M regulation requirements for inspector 
training and certification and is approvable.

Public Information and Consumer Protection--40 CFR 51.368

    The Federal I/M regulation requires the SIP to include a public 
information and consumer protection program. IDEM assigned some public 
awareness efforts to the contractor with state oversight. These efforts 
include the operation of a hot-line to be used by the public for (but 
not limited to) general information, inquiries on inspection facility 
hours, queuing times and, complaints. In addition, the contractor will 
develop and distribute general information brochures on the emission 
testing program to the public in the program area. Brochures will 
include discussions of potential fuel savings, tampering, fuel 
switching and vehicle warranties. The contractor will also work with 
the Indiana Vocational Technical College (Ivy Tech) public relations 
personnel in order to provide a smooth transition of the I/M inspection 
program during the period where Ivy Tech's involvement is phased out 
and the contractor becomes involved. The public information and 
consumer protection programs contained in the SIP submittal meets the 
Federal regulations and are approvable.

Improving Repair Effectiveness--40 CFR 51.369

    Effective repairs are the key to achieving program goals. The 
Federal regulation requires States to take steps to ensure that the 
capability exists in the repair industry to repair vehicles. The SIP 
must include a description of the technical assistance program to be 
implemented, a description of the procedures and criteria to be used in 
meeting the performance monitoring requirements required in the Federal 
regulation and, a description of the repair technician training 
resources available in the community. Systems Control, Inc., will be 
responsible for assisting repair facilities and technicians. A 
technician hotline service will be provided by ASPIRE. This service is 
a user friendly, diagnostic service for repair mechanics which will be 
accessed by dialing a 1-900 phone number which has a cost to the 
caller. The Indiana program will monitor the performance of individual 
motor vehicle repair facilities, so the consumer has a choice of 
locations to seek repairs. The repair statistics also will be available 
to the repair facilities. The repair effectiveness program described in 
the SIP submission meets the Federal regulation and is approvable.

Compliance with Recall Notices--40 CFR 51.370

    States are required to establish a method to ensure that vehicles 
subject to enhanced I/M and that are included in either a voluntary 
emissions recall as defined at 40 CFR 85.1902(d), or in a remedial plan 
determination made pursuant to section 207(c) of the Act, receive the 
required repairs. IDEM, at the time of submittal, did not have a 
specific plan developed but included provisions in its Request-for-
Proposal (RFP) for the contractor to follow to ensure subject vehicles 
receive all required recall repairs. Emissions tests will not be 
conducted on a vehicle that has an unresolved recall notice until all 
of the work is done. Vehicles with unresolved recall work will be 
identified as noncomplying by the contractor's system. An owner is 
required to provide proof that the repairs have been performed before a 
test is allowed. The contractor shall have the ability to resolve 
situations where the repairs have been performed

[[Page 11148]]
but the database has not yet been updated. The State rule 326 IAC 13-
1.1-11 requires documented proof that the repairs have been performed. 
The cost of these repairs are not counted toward the amount needed for 
a waiver. Unresolved recall reports from the contractor to the State 
are required on an annual basis. The State requires the contractor to 
provide detailed information in the annual report sufficient for the 
State to inform the USEPA of the status of operations of the program. 
These provisions meet the Federal regulations and are approvable.

On-Road Testing--40 CFR 51.371

    On-road testing is required in enhanced I/M areas. The use of 
either remote sensing devices (RSD) or roadside pullovers, including 
tailpipe emission testing, can be used to meet the Federal regulations. 
The program must include on-road testing of 0.5 percent of the subject 
fleet or 20,000 vehicles, whichever is less, in the nonattainment area 
or the I/M program area. Motorists that have passed an emission test 
and are found to be high emitters as a result of a on-road test shall 
be required to pass an out-of-cycle test. The Indiana I/M regulation 
(326 IAC 13-1.1-12) requires on-road testing through the use of remote 
sensing devices or roadside pullovers, including tailpipe emissions 
testing. If a violation is detected the motorist shall be notified that 
the vehicle is required to pass an out-of-cycle follow-up inspection at 
a state facility. Penalty for noncompliance is suspension of the 
motorist's vehicle registration. These provisions meet the Federal 
regulations and are approvable.

State Implementation Plan Submissions--40 CFR 51.372-373

    Indiana is currently in the process of implementing an enhanced I/M 
program. The June 6, 1995 I/M SIP submittal and the September 28, 1995 
additional documentation are fully approvable and contain all elements 
meeting USEPA's I/M requirements. Such elements include: mobile 
computer modeling which shows that the program meets the performance 
standard, a description of the geographic area, a discussion of the 
design elements included in the SIP, final copy of the legal authority, 
regulation, final RFP, and a final, signed contract with Systems 
Control, Inc. USEPA's review of the material indicates that the State 
has adopted an enhanced I/M program in accordance with the requirements 
of the Act.

IV. Comments and Approval Procedure

    The USEPA is publishing this action without prior proposal because 
the agency views this as a noncontroversial amendment and anticipates 
no adverse public comments. However, in a separate document in this 
Federal Register publication, the USEPA is proposing to approve the SIP 
revision should adverse or critical comments be filed. This action will 
be effective on May 20, 1996 unless, by April 18, 1996, adverse or 
critical comments are received. If USEPA receives such comments, this 
action will be withdrawn before the effective date by publishing a 
subsequent document that will withdraw the final action. All public 
comments received will then be discussed in a subsequent final rule 
based on the separate proposed rule. The USEPA will not institute a 
second comment period for this action. Any parties interested in 
commenting on this action should do so at this time. If no such 
comments are received, the public is advised that this action will be 
effective on May 20, 1996.

Final Action

    USEPA is approving this revision to the Indiana SIP for an enhanced 
I/M program. The Agency has reviewed this request for revision of the 
Federally-approved SIP for conformance with the provisions of the 1990 
Amendments enacted on November 15, 1990. The Agency has determined that 
this action conforms with those requirements. Under section 307(b)(1) 
of the Act, 42 U.S.C. 7607(b)(1), petitions for judicial review of this 
action must be filed In the United States Court of Appeals for the 
appropriate circuit by May 20, 1996. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this rule for purposes of judicial review nor does it 
extend the time within which a petition for judicial review may be 
filed, and shall not postpone the effectiveness of such rule or action. 
This action may not be challenged later in proceedings to enforce its 
requirements. (See section 307(b)(2) of the Act, 42 U.S.C. 7607 
(b)(2).) The Office of Management and Budget has exempted this rule 
from the requirements of section 6 of Executive Order 12866.

Precedental Effect

    Nothing in this action shall be construed as permitting or allowing 
or establishing a precedent for any future request for a revision to 
any State implementation plan. Each request for revision to the State 
implementation plan shall be considered separately in light of specific 
technical, economic, and environmental factors and in relation to 
relevant statutory and regulatory requirements.

Regulatory Flexibility

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., USEPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, USEPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000. SIP approvals under 110 and subchapter I, Part D of the CAA do 
not create any new requirements, but simply approve requirements that 
the State is already imposing. Therefore, because the Federal SIP 
approval does not impose any new requirements, I certify that it does 
not have a significant impact on any small entities affected. Moreover, 
due to the nature of the Federal-state relationship under the Act, 
preparation of a regulatory flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of state action. The 
Act forbids USEPA to base its actions concerning SIPs on such grounds. 
Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 (S.Ct. 1976); 
42 U.S.C. 7410(a)(2) and 7410(k)(3).

Unfunded Mandates

    Under Sections 202, 203, and 205 of the Unfunded Mandates Reform 
Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 
1995, USEPA must undertake various actions in association with proposed 
or final rules that include a Federal mandate that may result in 
estimated costs of $100 million or more to the private sector, or to 
State, or tribal governments in the aggregate. USEPA's final action 
does not impose any federal intergovernmental mandate, as defined in 
section 101 of the Unfunded Mandates Act, upon the State. To the extent 
that the rules being approved by this action will impose any mandate 
upon the State, local, or tribal governments, or upon the private 
sector, EPA's action will impose no new requirements; such sources are 
already subject to these regulations under State law.
    Accordingly, no additional costs to State, local, or tribal 
governments, or to the private sector, result from this action. For 
these reasons, USEPA has determined that this final action does

[[Page 11149]]
not include a mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Incorporation by reference, Ozone, Reporting and record-
keeping requirements.

    Dated: January 26, 1996.
Valdas V. Adamkus,
Regional Administrator.

    Part 52, chapter I, title 40 of the Code of Federal Regulations is 
amended as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:

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

Subpart P--Indiana

    2. Section 52.770, is amended by adding paragraph (c)(102) to read 
as follows:


Sec. 52.770  Identification of plan.

* * * * *
    ( c) * * *
    (102) On June 6, 1995, and on September 28, 1995 the Indiana 
Department of Environmental Management submitted State Implementation 
Plan (SIP) revisions establishing an enhanced inspection and 
maintenance (I/M) program in accordance with the requirements of the 
Clean Air Act as amended in 1990. The new enhanced I/M program replaces 
the basic I/M programs in operation in Lake, Porter, Clark, and Floyd 
Counties. The Air Pollution Control Board adopted new rule 326 IAC 13-
1.1 and repealed existing 326 IAC 13-1, thereby putting in place a 
revised I/M program.
    (i) Incorporation by reference.
    (A) 326 Indiana Administrative Code 13-1.1 adopted April 5, 1995, 
effective October 1, 1995.
    (ii) Other material.
    (A) June 6, 1995 letter and enclosures from the Indiana Department 
of Environmental Management (IDEM) Commissioner to the Regional 
Administrator of the United States Environmental Protection Agency 
(USEPA) submitting Indiana's revision to the ozone State Implementation 
Plan (SIP).
    (B) September 28, 1995 letter and enclosures from the IDEM 
Assistant Commissioner to the Regional Administrator of USEPA 
submitting supplemental vehicle inspection and maintenance SIP revision 
information and documentation.
* * * * *
[FR Doc. 96-6466 Filed 3-18-96; 8:45 am]
BILLING CODE 6560-50-P