[Federal Register Volume 63, Number 250 (Wednesday, December 30, 1998)]
[Proposed Rules]
[Pages 71807-71815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34420]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

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


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA is proposing conditional approval of a Vehicle 
Inspection and Maintenance (I/M) Program proposed by the State of 
Louisiana. This action is taken under section 110 of the Clean Air Act 
(the Act). This conditional approval is also being proposed under the 
parallel processing provision of 40 CFR part 51. The EPA is proposing a 
conditional approval because the SIP revision is lacking certain 
elements necessary to meet the statutory and regulatory requirements of 
an enhanced I/M program. To correct the SIP deficiencies, the State 
must commit by a date certain within one year of final EPA rulemaking 
on this SIP to: submit a demonstration supporting its claim of 100 
percent network effectiveness; submit an effectiveness demonstration of 
sticker-based enforcement; submit an opinion from the State Attorney 
General regarding barriers to immediate suspension authority in the 
Louisiana Constitution; submit an updated interagency agreement between 
the Louisiana Department of Environmental Quality (LDEQ) and the 
Department of Public Safety (DPS); make changes to the DPS Official 
Motor Vehicle Inspection Manual (the Manual) to reflect: changing the 
weight of light-and heavy-duty vehicles covered by the program in the 
nonattainment area from 8,500 lb. Gross Vehicle Weight Rating (GVWR) to 
10,000 lb. GVWR; adding test procedures for evaporative system checks 
in the nonattainment area to the Manual; adding a list of evaporative 
system check test equipment for the nonattainment area to the Manual; 
adding calibration of evaporative system check test equipment to the 
Manual; and adding an additional training requirement on evaporative 
system check equipment for inspector/technicians in the nonattainment 
area to the Manual. Furthermore, the State's I/M program must start up 
no later than January 1, 2000, to qualify for a final full approval.
    If the State submits these documents and changes to the Manual to 
correct the deficiencies noted above by the date committed to within 
one year of the final conditional approval, then the I/M submittal will 
be fully approved into the SIP. If the conditions are not met by that 
date, the conditional approval converts to a disapproval. In addition, 
EPA has identified two sections of the Federal I/M Regulation for which 
the State cannot meet the requirements as written. The EPA intends to 
amend the sections of the Federal rule on test equipment and on-road 
testing to exempt programs that meet certain criteria from the portions 
of those sections which have been identified elsewhere in this action. 
The EPA cannot proceed with final action conditionally approving this 
SIP until it has completed final rulemaking amending the Federal I/M 
rule with respect to these issues.

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

ADDRESSES: Written comments on this action should be addressed to Mr. 
Thomas H. Diggs, Chief, Air Planning Section, at the EPA Regional 
Office listed below. Copies of the documents relevant to this action 
are available for public inspection during normal business hours at the 
following locations. Persons interested in examining these documents 
should make an appointment with the appropriate office at least 24 
hours before the visiting day. Environmental Protection Agency, Region 
6, Air Planning Section (6PD-L), 1445 Ross Avenue, Suite 700, Dallas, 
Texas 75202-2733. Louisiana Department of Environmental Quality, Air 
Quality Compliance Division, 7290 Bluebonnet, 2nd Floor, Baton Rouge, 
Louisiana. Louisiana Department of Environmental Quality Capital 
Regional Office, 11720 Airline Highway, Baton Rouge, Louisiana.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Rennie, Air Planning 
Section (6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-
2733, telephone (214) 665-7367.

I. Background

    A final EPA disapproval of the Louisiana 1996 I/M SIP revision was 
effective on February 13, 1998. Discussion of background leading up to 
that final disapproval can be found in the rulemakings on that SIP, 62 
FR 61633 (June 9, 1997), 62 FR 41002 (July 31, 1997), and 62 FR 61633 
(November 19,1997). An 18-month sanction clock was started under 
section 179 of the Act on the effective date of the final disapproval. 
In July 1998, Louisiana sought greater flexibility from EPA for 
designing an I/M program tailored to meet the State's air quality 
needs. The EPA worked in parallel with the State in developing an 
approvable I/M SIP revision.
    The State's I/M program is required because of its nonattainment 
classification and population. The SIP credits are not taken for the I/
M plan in the 15% Rate-of-Progress (ROP) Plan or the 9% ROP plan, or 
the State's attainment demonstration. Additional information on these 
actions can be found in EPA's proposed approval in 63 FR 44192 dated 
August 18, 1998. Furthermore, EPA believes that in taking action under 
section 110 of the Act, it is appropriate to propose granting a 
conditional approval to this submittal since there are deficiencies 
with respect to certain statutory and regulatory requirements 
(identified herein) that EPA believes can be supplied by the State 
during the following 12 months. The State must commit to address the 
insufficiencies identified above by a date certain within one year of 
EPA final action on this SIP.

II. The State's Proposal

    Louisiana published a notice of a proposed I/M SIP in the Louisiana 
Register on October 20, 1998. The State received public comment through 
December 1, 1998. The SIP contains a SIP narrative, I/M Rules, and 
several appendices including the DPS Manual addressing the requirements 
of the I/M program. The submittal is intended to fulfill the 
requirements of the Act for the ozone nonattainment area of Louisiana 
that is required to implement an I/M program.

III. EPA's Analysis of Louisiana's Proposal

    The EPA reviewed the State's proposal against the requirements 
contained in the Act and Federal I/M

[[Page 71808]]

rules (40 CFR part 51, subpart S). Deficiencies that EPA noted are the 
need for: (1) a demonstration supporting the State's claim of 100 
percent network effectiveness; (2) an effectiveness demonstration of 
sticker-based enforcement; (3) an opinion from the State Attorney 
General regarding barriers to immediate suspension authority in the 
Louisiana Constitution; (4) an updated interagency agreement between 
LDEQ and the DPS. In addition, five changes to the DPS Manual must be 
made to reflect; (5) changing the weight of light- and heavy-duty 
vehicles covered by the program in the nonattainment area from 8,500 
lb. GVWR to 10,000 lb. GVWR; (6) adding test procedures for evaporative 
system checks in the nonattainment area to the Manual; (7) adding a 
list of evaporative system check test equipment for the nonattainment 
area to the Manual; (8) adding calibration of evaporative system check 
test equipment to the Manual; and (9) adding training on evaporative 
system check equipment for inspector/technicians in the nonattainment 
area to the Manual. During EPA's public comment period, the State must 
formally commit to correct these deficiencies by a date certain within 
12 months after the date of approval of the plan revision. The State 
must then correct the deficiencies within one year of final conditional 
approval or this approval will automatically convert to a disapproval 
under section 110(k)(4) the Act.
    The following analysis describes the Federal requirement and 
addresses how the State intends to fulfill the requirements of the Act 
and the Federal I/M rules. This analysis assumes the State corrects the 
deficiencies stated above. A more detailed analysis of the State 
submittal is included in the Technical Support Document for this action 
and may be obtained from the EPA Region 6 office. A summary of EPA's 
findings follows.

Section 51.350  Applicability.

    The SIP needs to describe the applicable areas in detail and, 
consistent with Sec. 51.372 of the Federal I/M rule, shall include the 
legal authority or rules necessary to establish program boundaries.
    The Louisiana regulations specify that an I/M program will be 
implemented in the Baton Rouge ozone nonattainment area. The low 
enhanced I/M program will be implemented in the urbanized area that 
includes East Baton Rouge Parish. In addition to East Baton Rouge 
Parish, the program will cover Ascension, Iberville, Livingston, and 
West Baton Rouge parishes in the nonattainment area. The authority to 
establish program boundaries in this area is found in Louisiana Revised 
Statutes (LA R.S.) 32:1304(3).
    The State submittal meets the applicability requirement of the 
Federal I/M regulation for approval.

Section 51.351-2 Low Enhanced I/M Performance Standard

    The I/M program submitted by the State is required to meet a 
performance standard, either basic or enhanced as applicable. The 
performance standard sets an emission reduction target that must be met 
by a program in order for the SIP to be approvable. The SIP must also 
provide that the program will meet the performance standard in actual 
operation, with provisions for appropriate adjustments if the standard 
is not met. Equivalency of emission levels needed to achieve the I/M 
program design in the SIP to those of the model program described in 
this section must be demonstrated using the most current version of 
EPA's mobile source emission model, or an alternative approved by the 
Administrator.
    The State has submitted a modeling demonstration using the EPA 
computer model MOBILE5b and localized parameters showing that the low 
enhanced performance standard can be met for Volatile Organic Compounds 
(VOCs) in the Baton Rouge area with the program proposed by the State. 
The low enhanced performance standard is established in 40 CFR 
51.351(g). That section provides that states may select the low 
enhanced performance standard if they have an approved SIP for 
reasonable further progress in 1996, commonly known as a 15% ROP Plan. 
Louisiana's 15% Plan for Baton Rouge was approved on October 22, 1996 
(61 FR 54737). Projections of oxides of nitrogen (NOx) emissions were 
not included because EPA approved a NOx waiver for Baton Rouge on 
January 16, 1996, which was published on January 26, 1996 at 61 FR 
2438. Light- and heavy-duty vehicles up to 10,000 lb. GVWR from 1980 
and newer model years will be required to participate in the I/M 
program. No covered model years are exempted. The State is modeling 
with a test and repair program which assumes a 100 percent credit for 
network effectiveness. This amount of credit was chosen by the State to 
complete the modeling necessary to demonstrate compliance with the 
performance standard. States submitting I/M SIP revisions after passage 
of the National Highway System Designation Act (NHSDA) are not subject 
to an automatic 50 percent credit deduction for decentralized programs 
that had been in EPA's original I/M rules. The NHSDA effectively 
invalidated this regulatory provision establishing the credit 
reduction. However, the State must demonstrate within 12 months of 
final conditional approval of the SIP that the network effectiveness 
credit claimed is in fact being met, or adjust the credit accordingly 
to reflect the actual effectiveness of the test network.
    The State must submit a demonstration supporting its claim of 100 
percent network effectiveness in order to meet the low-enhanced I/M 
performance standard requirements of the Federal I/M regulations for 
approval. Although vehicles between 8,500 and 10,000 lb. GVWR are not 
required by the Federal I/M rule to be covered, the Louisiana program 
needs the credit generated by the additional vehicles to meet the 
performance standard. Accordingly, the State must submit a revision to 
the DPS Manual changing the maximum weight of light- and heavy-duty 
vehicles required to participate in the program from 8,500 lb. GVWR to 
10,000 lb. GVWR.

Section 51.353 Network Type and Program Evaluation

    The State submittal is required to include a description of the 
network to be employed, and the required legal authority. Also, for 
enhanced areas, the SIP needs to include a description of the 
evaluation schedule and protocol, the sampling methodology, the data 
collection and analysis system, the resources and personnel for 
evaluation, and related details of the evaluation program, and the 
legal authority enabling the evaluation program.
    The State is implementing a decentralized test and repair program. 
The program includes an ongoing evaluation process with results 
reported to EPA on a biennial basis, in July, starting two years after 
the initial start of mandatory testing. Surveys assessing 
effectiveness, measured rates of tampering, and results of covert 
audits will be reported. In addition, the SIP commits to meet the 
ongoing program evaluation requirement using a sound methodology 
approved by EPA, and of at least 0.1 percent of subject vehicles, and 
reporting the results of such evaluation on a biennial basis. Resources 
and personnel for the program evaluation are described in the SIP. 
Legal authority, which is contained in LA R.S. 32:1305-1306, authorizes 
the DPS to implement the program and conduct the program evaluation.
    The State SIP meets the network type and program evaluation 
requirements of the Federal I/M regulations for approval.

[[Page 71809]]

Section 51.354 Adequate Tools and Resources

    The SIP needs to include a description of the resources that will 
be used for program operation and discuss how the performance standard 
will be met which includes (1) a detailed budget plan which describes 
the source of funds for personnel, program administration, program 
enforcement, purchase of necessary equipment (such as vehicles for 
undercover audits), and any other requirements discussed throughout, 
for the period prior to the next biennial self-evaluation required in 
the Federal I/M rule, and (2) a description of personnel resources. The 
plan shall include the number of personnel dedicated to overt and 
covert auditing, data analysis, program administration, enforcement, 
and other necessary functions and the training attendant to each 
function.
    Louisiana R.S. 32:1306.C(2) authorizes the program to charge an 
emission inspection fee and a safety/antitampering inspection fee. The 
SIP narrative also describes the budget, staffing support, and 
equipment that will be added to the existing personnel and budget 
needed to implement the program. The State has committed to employ and 
train three additional employees dedicated to implementing this 
program.
    The State submittal meets the adequate tools and resources 
requirements of the Federal I/M regulations for approval.

Section 51.355 Test Frequency and Convenience

    The State submittal needs to describe the test schedule in detail, 
including the test year selection scheme if testing is other than 
annual. Also, the SIP needs to include the legal authority necessary to 
implement and enforce the test frequency requirement and explain how 
the test frequency will be integrated with the enforcement process. In 
addition, in enhanced I/M programs, test systems shall be designed in 
such a way as to provide convenient service to motorists who are 
required to get their vehicles tested. The SIP needs to demonstrate 
that the network of stations providing test services is sufficient to 
insure short waiting times to get a test and short driving distances to 
test stations.
    The revised Louisiana I/M SIP commits to testing all designated 
vehicles of model years 1980 and newer annually. In addition, at least 
0.5 percent of the vehicle population will be subject to on-road 
testing. The program is decentralized and stations will adhere to 
regular convenient inspection hours. The network of stations will 
consist of familiar locations where motorists regularly receive the 
annual currently required safety/antitampering inspections and other 
vehicle services. Louisiana R.S. 1301-1310 provides the legal authority 
for implementation of the test frequency.
    The State submittal meets the test frequency and convenience 
requirements of the Federal I/M regulations for approval.

Section 51.356 Vehicle Coverage

    The State submittal needs to include a detailed description of the 
number and types of vehicles to be covered by the program, and a plan 
for how those vehicles are to be identified, including vehicles that 
are routinely operated in the area but may not be registered in the 
area. Also, the SIP needs to include a description of any special 
exemptions which will be granted by the program, and an estimate of the 
percentage and number of subject vehicles which will be impacted. Such 
exemptions need to be accounted for in the emission reduction analysis. 
In addition, the SIP needs to include the legal authority or rule 
necessary to implement and enforce the vehicle coverage requirement.
    The revised Louisiana I/M SIP includes coverage of light- and 
heavy-duty cars and trucks up to 10,000 lb. GVWR registered or required 
to be registered in the I/M program area, including fleets. Subject 
vehicles will be identified through the Department of Motor Vehicle 
database. No covered model years are exempt. Approximately 388,000 
vehicles will be subject to inspection. Legal authority for vehicle 
coverage is contained in LA R.S. 32:1304.A(2), and LA R.S. 47:501 and 
503.
    The State intends to revise to the Louisiana DPS Official Motor 
Vehicle Inspection Manual to increase the weight of vehicles included 
in their program in order to meet the performance standard. The weight 
of light- and heavy-duty vehicles covered by the program in the 
nonattainment area needs to be changed from 8,500 lb. GVWR to 10,000 
lb. GVWR for the State program to meet the applicable performance 
standard. However, 40 CFR 51.356 only mandates coverage up to 8,500 lb. 
GVWR. The State submittal meets this requirement for vehicle coverage 
of the Federal I/M rule.

Section 51.357 Test Procedures and Standards

    The SIP needs to include a description of each test procedure used. 
The SIP also needs to include the rule, ordinance or law describing and 
establishing the test procedures.
    Vehicles tested in the nonattainment area program shall be subject 
to an antitampering check, a fill pipe pressure test, and a gas cap 
pressure test. Pressure testing procedures will meet requirements in 
EPA IM240 and Evaporative Test Guidance (1998 Revised Technical 
Guidance). Authority to conduct tests on vehicles is established in LA 
R.S. 32:1304. The State commits to implementing on-board diagnostic 
testing on all 1996 and newer vehicles beginning January 1, 2001.
    The State must submit a revision to the Louisiana DPS Manual in 
order to meet the test procedures requirements of the Federal I/M 
regulations for approval. Test procedures for evaporative system checks 
in nonattainment areas must be added to the Manual.

Section 51.358 Test Equipment

    The State submittal needs to include written technical 
specifications for all test equipment used in the program and needs to 
address each of the requirements contained in 40 CFR 51.358 of the 
Federal I/M rule. The specifications need to describe the emission 
analysis process, the necessary test equipment, the required features, 
and written acceptance testing criteria and procedures.
    The revised Louisiana I/M SIP states that all test equipment 
specifications will be consistent with that described in the EPA IM240 
and Evap Technical Guidance (August 1998). In addition, the gas cap 
integrity test will be in accordance with EPA equipment specifications.
    The State must submit a revision to the Louisiana DPS Manual in 
order to meet some of the test equipment requirements of the Federal I/
M regulations for approval. A list of evaporative system check test 
equipment for the nonattainment area must be added to the Manual. 
Because the decentralized program does not include realtime data 
capture, which is currently required under section 51.358, this section 
of the Federal I/M regulation cannot be satisfied. However, EPA intends 
to amend the Federal I/M regulation to allow States, under certain 
circumstances, to be exempt from this requirement, provided they can 
demonstrate equal data capture effectiveness through other means. The 
EPA cannot proceed to final conditional approval of this SIP until EPA 
has completed this rulemaking.

[[Page 71810]]

Section 51.359 Quality Control

    The State submittal needs to include a description of quality 
control and recordkeeping procedures. The SIP needs to include the 
procedure manual, rule, ordinance or law describing and establishing 
the quality control procedures and requirements.
    The revised Louisiana I/M SIP states that the quality control 
procedures applicable to the State program design will be conducted in 
accordance with 40 CFR 51.359. The requirements under LA R.S. 32:1305 
and 1306 ensure that equipment calibrations are properly performed and 
recorded while maintaining compliance document security. Equipment 
manufacturers' quality control procedures, periodic maintenance 
schedules, and calibration procedures will be performed per the SIP 
revision to ensure proper operation of the test equipment.
    The State must submit a revision to the Louisiana DPS Manual in 
order to meet the quality control requirements pertaining to proper 
calibration of test equipment of the Federal I/M regulations for 
approval. Calibration procedures for evaporative system check test 
equipment in the nonattainment area must be added to the Manual.

Section 51.360 Waivers and Compliance Via Diagnostic Inspection

    The State submittal needs to include a maximum waiver rate 
expressed as a percentage of initially failed vehicles. This waiver 
rate needs to be used for estimating emission reduction benefits in the 
modeling analysis. Also, the State needs to take corrective action if 
the waiver rate exceeds that committed to in the SIP, or revise the SIP 
and the emission reductions claimed accordingly. In addition, the SIP 
needs to describe the waiver criteria and procedures, including cost 
limits, quality assurance methods and measures, and administration. 
Lastly, the SIP needs to include the necessary legal authority, 
ordinance, or rules to issue waivers, set and adjust cost limits as 
required, and carry out any other functions necessary to administer the 
waiver system, including enforcement of the waiver provisions.
    The State will not have a minimum waiver amount. That is, the State 
does not intend to allow any waivers from the program. The revised 
Louisiana I/M program therefore includes a waiver rate of 0 percent of 
initially failed vehicles. This waiver rate is used in the modeling 
demonstration. The State need not provide for waiver program 
administration or future corrective action because it does not have a 
waiver program at all.
    The State submittal meets the waivers and compliance via diagnostic 
inspection requirement of the Federal I/M regulations for approval.

Section 51.361 Motorist Compliance Enforcement

    The State submittal needs to provide information concerning the 
enforcement process, including: (1) a description of the existing 
compliance mechanism if it is to be used in the future and the 
demonstration that it is as effective or more effective than 
registration-denial enforcement; (2) an identification of the agencies 
responsible for performing each of the applicable activities in this 
section; (3) a description of, and accounting for, all classes of 
exempt vehicles; and (4) a description of the plan for testing fleet 
vehicles, rental car fleets, leased vehicles, and any other subject 
vehicles, e.g., those operated in (but not necessarily registered in) 
the program area. Also, the SIP needs to include a determination of the 
current compliance rate based on a study of the system that includes an 
estimate of compliance losses due to loopholes, counterfeiting, and 
unregistered vehicles. Estimates of the effect of closing such 
loopholes and otherwise improving the enforcement mechanism shall be 
supported with detailed analyses. In addition, the SIP needs to include 
the legal authority to implement and enforce the program. Lastly, the 
SIP needs to include a commitment to an enforcement level to be used 
for modeling purposes and to be maintained, at a minimum, in practice.
    The State has chosen to enforce the I/M program with sticker-based 
enforcement. The current safety/antitampering program relies on 
sticker-based enforcement. Penalties for missing stickers include a 
fine, as well as possible criminal charges, or revocation of the 
inspector from the program.
    The motorist compliance enforcement program will be handled 
cooperatively by the DPS, local law enforcement agencies, and the LDEQ. 
As a condition to the approval of the I/M SIP, the State is required to 
submit a demonstration of sticker-based enforcement effectiveness to 
show this method of enforcement is more effective than registration 
denial, as required by the Act.

[[Page 71811]]

    There are no classes of on-road exempt vehicles. Fleet vehicles 
will be allowed to conduct self-testing provided that the fleet testing 
stations meet the required equipment standards, are certified by the 
administrative authority, and tests are performed in accordance with 
established inspection procedures. Motorists operating vehicles in the 
I/M areas with an expired or invalid sticker will be subject to 
penalties and/or citations by local and State law enforcement 
officials, imprisonment, or registration suspension. The SIP commits to 
a compliance rate of 96 percent through cooperation with the DPS. The 
legal authority to implement and enforce the program is included in the 
Louisiana statutes cited in the SIP.
    The State must submit a demonstration of sticker-based enforcement 
effectiveness in order to meet the motorist compliance enforcement 
requirements of the Act and Federal I/M regulations for approval.

Section 51.362 Motorist Compliance Enforcement Program Oversight

    The SIP needs to include a description of enforcement program 
oversight and information management activities.
    The Louisiana I/M SIP provides for regular auditing of its 
enforcement efforts and for following effective management practices, 
including adjustments to improve the program when necessary. The 
program oversight and information management activities listed in the 
SIP narrative and in the interagency agreement include schedules and 
procedures for I/M document handling and processing, audit procedures, 
and procedures for dealing with motorists and inspection facilities 
suspected of violating program rules.
    The State submittal meets the motorist compliance enforcement 
program oversight requirements of the I/M regulations for approval.

Section 51.363 Quality Assurance

    The SIP needs to include a description of the quality assurance 
program, and written procedures manuals covering both overt and covert 
performance audits, record audits, and equipment audits. This 
requirement does not include materials or discussion of details of 
enforcement strategies that would ultimately hamper the enforcement 
process.
    The revised Louisiana I/M SIP includes a detailed description of 
its quality assurance program. The program includes both covert and 
overt audits which will be conducted on a regular basis. The SIP 
describes regular performance audits which include the inspection of 
records and equipment. Procedures for program oversight are based upon 
written instructions and will be updated as necessary.
    The State submittal meets the quality assurance requirement of the 
Federal I/M regulations for approval.

Section 51.364  Enforcement Against Contractors, Stations and 
Inspectors

    The SIP needs to include the penalty schedule and the legal 
authority for establishing and imposing penalties, civil fines, license 
suspension, and revocations. In the case of State constitutional 
impediments to immediate suspension authority, the State Attorney 
General needs to furnish an official opinion for the SIP explaining the 
constitutional impediment, as well as relevant case law. Also, the SIP 
needs to describe the administrative and judicial procedures and 
responsibilities relevant to the enforcement process, including which 
agencies, courts, and jurisdictions are involved; who will prosecute 
and adjudicate cases; and other aspects of the enforcement of the 
program requirements, the resources to be allocated to this function, 
and the source of those funds. In States without immediate suspension 
authority, the SIP needs to demonstrate that sufficient resources, 
personnel, and systems are in place to meet the three day case 
management requirement for violations that directly affect emission 
reductions.
    The revised Louisiana I/M SIP states that the State may assess 
penalties in its enforcement against stations and inspectors. The 
penalty schedule is discussed in the SIP narrative. The SIP describes 
the enforcement process. The legal authority for Louisiana to assess 
penalties is located in LA R.S. 32:1312. The authority for DPS to deny 
application for license or revoke or suspend an outstanding license of 
any inspection station or the license of any person to inspect vehicles 
is found in LA R.S. 32:1305(C). Louisiana has indicated that the State 
Constitution precludes immediate suspension of licenses to inspect. The 
State must submit a statement from the Attorney General outlining the 
Constitutional prohibition and outlining the process by which the State 
can suspend or revoke a license within 3 business days of discovery of 
the violation.
    The State must submit an opinion from the State Attorney General as 
described above as a condition of approval. Other than this condition 
regarding suspension authority, the State submittal meets the other 
requirements for approval of enforcement against inspection stations 
and inspectors of the Federal I/M regulations.

Section 51.365-6  Data Collection, Analysis and Reporting

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

[[Page 71812]]

    The revised Louisiana I/M SIP provides for collection of test data 
to link specific test results to specific vehicles, I/M program 
registrants, test sites, and inspectors. The SIP lists the specific 
types of test data and quality control data which will be collected to 
evaluate program effectiveness. The data collected will be consistent 
with that required in the Federal I/M rule. The data will be entered 
into an electronic database and used to generate reports in the areas 
of test data, quality assurance, quality control, and enforcement.
    The State submittal meets the data collection, analysis and 
reporting requirements of the Federal I/M regulations for approval.

Section 51.367  Inspector Training and Licensing or Certification

    The SIP needs to include a description of the training program, the 
written and hands-on tests, and the licensing or certification process.
    The revised Louisiana I/M SIP provides for the implementation of 
training, licensing, and refresher programs for emission inspectors 
consistent with EPA's regulations. The SIP describes this program 
including written and hands-on testing. Inspector licenses will expire 
two years after issuance. All inspectors must be licensed to inspect 
vehicles in the Louisiana I/M program.
    The State must submit a revision to the Louisiana DPS Manual in 
order to meet the training and licensing or certification requirements 
of the Federal I/M regulations for approval. Additional training on 
evaporative system check equipment for inspector/technicians in the 
nonattainment area must be added to the Manual.

Section 51.368  Public Information and Consumer Protection

    The SIP needs to include a plan for informing the public on an 
ongoing basis throughout the life of the I/M program of the air quality 
problem, the requirements of Federal and State law, the role of motor 
vehicles in the air quality problem, the need for and benefits of an 
inspection program, how to maintain a vehicle in a low-emission 
condition, how to find a qualified repair technician, and the 
requirements of the I/M program. Also, the SIP shall include a detailed 
consumer protection plan.
    The revised Louisiana I/M SIP commits to the establishment of an 
ongoing public awareness plan addressing the significance of the air 
quality problem, the requirements of Federal and state law, the role of 
motor vehicles in the air quality problem, the need for and benefits of 
an inspection program, the ways to maintain a vehicle in low-emission 
condition, how to find a qualified repair technician, and the 
requirements of the I/M program. The SIP states under the Improving 
Repair Effectiveness section (40 CFR 51.369) that motorists will be 
offered general repair information including a list of repair 
facilities, information on the results of the repairs by repair 
facilities in the area, diagnostic information and warranty 
information. The SIP also describes consumer protection provisions 
which include a challenge mechanism, oversight of the program through 
the use of audits, and whistle blower protection.
    The State submittal meets the public information and consumer 
protection requirements of the Federal I/M regulations for approval.

Section 51.369  Improving Repair Effectiveness

    The SIP needs to include a description of the technical assistance 
program to be implemented, a description of the procedures and criteria 
to be used in meeting the performance monitoring requirements of the 
Federal I/M rule, and a description of the repair technician training 
resources available in the community.
    The revised Louisiana I/M SIP includes a description of the 
technical assistance plan, repair industry performance monitoring plan, 
repair technician training assessment, and recognized repair technician 
requirements. The State will regularly inform repair facilities through 
the use of a newsletter regarding changes to the inspection program, 
training course schedules, common problems and potential solutions for 
particular engine families, diagnostic tips, repair, and other 
technical assistance issues. Repair facility performance monitoring 
statistics will be available to motorists whose vehicles fail the I/M 
test. The State will also ensure that adequate repair technician 
training resources are available to the repair community.
    The State submittal meets the improving repair effectiveness 
requirements of the Federal I/M regulations for approval.

Section 51.370  Compliance With Recall Notices

    The SIP needs to describe the procedures used to incorporate the 
vehicle lists provided in 40 CFR 51.370 (a)(1)into the inspection or 
registration database, the quality control methods used to insure that 
recall repairs are properly documented and tracked, and the method 
(inspection failure or registration denial) used to enforce the recall 
requirements.
    The revised Louisiana I/M SIP commits to ensuring compliance with 
EPA I/M recall rules when they are finalized. Additional rulemaking by 
EPA related to recall requirements is needed before the State will be 
able to implement this provision. Inspection failure will be used to 
enforce the recall requirements.
    The State submittal meets the compliance with recall notices 
requirements of the Federal I/M regulations for approval.

Section 51.371  On-road Testing

    The SIP needs to include a detailed description of the on-road 
testing program, including the types of testing, test limits and 
criteria, the number of vehicles (the percentage of the fleet) to be 
tested, the number of employees to be dedicated to the on-road testing 
effort, the methods for collecting, analyzing, utilizing, and reporting 
the results of on-road testing and, the portion of the program budget 
to be dedicated to on-road testing. Also, the SIP needs to include the 
legal authority necessary to implement the on-road testing program, 
including the authority to enforce off-cycle inspection and repair 
requirements. In addition, emission reduction credit for on-road 
testing programs shall be granted for a program designed to obtain 
significant emission reductions over and above those already predicted 
to be achieved by other aspects of the I/M program. The SIP needs to 
include technical support for the claimed additional emission 
reductions.
    The revised Louisiana I/M SIP includes a description of its on-road 
testing program. The State is planning roadside antitampering checks 
and evaporative emission testing. The State has committed to cover 0.5 
percent of the EPA required subject vehicles. The legal authority to 
conduct on-road testing is in LA R.S.32:1302-1303. The SIP describes 
adequate funding, resources and personnel to implement the on-road 
testing program. The State does not claim any additional reductions 
from on-road testing.
    Louisiana's on-road testing program will check for hydrocarbon 
emissions as a complement to the required evaporative emissions testing 
program. Because the on-road testing program does not include tailpipe 
testing, this section of the Federal I/M regulation cannot be 
satisfied. However, EPA intends to amend the Federal I/M regulation to 
allow States, under certain circumstances, to be exempt from the 
tailpipe testing requirement. The EPA

[[Page 71813]]

cannot proceed to final action on this SIP approval prior to completion 
of the amendment to the Federal I/M rule.

Section 51.372  State Implementation Plan Submissions

    Under the Federal I/M rule, the SIP submittal should include legal 
authority for I/M program operation until such time as it is no longer 
necessary.
    Legal authority to operate the I/M program is found in LA R.S. 
32:1304.
    The revised Louisiana I/M SIP commits to revising the I/M SIP as 
new regulations are promulgated, including the provision for inclusion 
of on-board diagnostic checks as they become available. In addition, 
the SIP commits to having all agreements with the DPS in place prior to 
start up. Updating the interagency agreement between LDEQ and the DPS 
is a deficiency that must be corrected for full approval of this SIP 
revision.

Section 51.373  Implementation Deadlines

    The original Federal I/M rule had a January 1995 start date 
requirement as well as subsequent start dates for special 
circumstances. In response to States' requests after January 1995 for 
greater flexibility in implementing I/M program SIPs processed under 
the National Highway System Designation Act EPA SIP approvals allowed 
programs to start as soon as possible, and specified start dates of 
November 15, 1997. Then in a narrower application, a January 1, 1999, 
start date was designated as a result of providing greater flexibility 
only in Ozone Transport Regions (OTR) (61 FR 39034, July 25, 1996). The 
OTRs affected would normally be exempt from I/M program requirements 
except for their location within the OTR. The January 1, 1999, start 
date allows the affected areas to meet the performance standard by the 
Act's attainment and reasonable further progress deadlines, including 
the end of 1999 for serious ozone nonattainment areas. The EPA received 
no public comment regarding the 1999 start date in this notice. 
Finally, at this late date, starting the program in the Baton Rouge 
nonattainment area by January 1, 2000, is ``as soon as possible'' for 
Louisiana.
    The revised Louisiana I/M SIP commits to implementing all 
requirements related to the I/M program by January 1, 2000. A schedule 
for start-up related activities is included. The EPA concludes that 
given the circumstances described above, this start date is approvable 
as being ``as soon as possible'' for Louisiana. The EPA is requiring 
that the I/M program start up no later than January 1, 2000.

IV. Discussion for Rulemaking Action

A. Concluding Statement of Conditional Approval

    The EPA's review of this material indicates that the proposed SIP 
revision meets the minimum requirements of the Act and Federal I/M 
rules with the exceptions of the deficiencies explained in this 
proposal. Based upon the discussion contained in the previous analysis 
sections and technical support document, EPA concludes the State's 
submittal represents an acceptable approach to the I/M requirements and 
meets the requirements for conditional approval. During the comment 
period, Louisiana must commit to meet the proposed conditions by a date 
certain no later than 12 months after the date of final approval. 
Therefore, EPA is proposing a conditional approval of the proposed 
Louisiana I/M SIP revision. The EPA is soliciting public comment on the 
issues discussed in this document or on other relevant matters. These 
comments will be considered before taking final action. Interested 
parties may participate in the Federal rulemaking procedure by 
submitting written comments to the EPA regional office listed in the 
ADDRESSES section of this notice.

B. Explanation of the Approval

    At the end of the period committed to by the State, the approval 
status for this program will automatically convert to a disapproval 
pursuant to section 110(k) of the Act, unless the conditions of the 
approval are satisfied. The proposed conditions are submittal of:
    1. A network effectiveness demonstration.
    2. A sticker-based enforcement demonstration.
    3. An opinion from the State Attorney General regarding barriers to 
immediate suspension authority in the Louisiana Constitution.
    4. An updated interagency agreement between LDEQ and DPS. 
Additional conditions for approval include making changes to the DPS 
Official Motor Vehicle Inspection Manual (the Manual). These are:
    5. The weight of light- and heavy-duty vehicles covered by the 
program in the nonattainment area will be changed from 8,500 lb. GVWR 
to 10,000 lb. GVWR.
    6. Test procedures for evaporative system checks in the 
nonattainment area will be added to the Manual.
    7. A list of evaporative system check test equipment for the 
nonattainment area will be added to the Manual.
    8. Calibration of evaporative system check test equipment will be 
added to the Manual.
    9. Additional training on evaporative system check equipment for 
inspector/technicians in the nonattainment area will be added to the 
Manual.
    Furthermore, EPA expects this program to start by January 1, 2000. 
If the State fails to start the program by January 1, 2000, the 
approval will convert to a disapproval, and the State will be notified 
by letter.
    In addition, EPA has identified two sections of the Federal I/M 
regulation for which the State cannot meet the requirements as written. 
The EPA intends to amend the sections on test equipment and on-road 
testing to exempt programs that meet certain criteria from the portions 
of those sections which have been identified elsewhere in this action. 
The EPA cannot proceed to final action on this SIP approval prior to 
completion of these amendments to the Federal I/M rule.

V. Status of Sanctions

    The proposed approval will not stop the sanction clock that has 
been running since February 13, 1997, but the proposal is the first 
step toward staying sanctions. Sanctions can be stayed after the State 
submits a final I/M SIP revision along with approved State regulations 
to implement the program. If a full approval of the SIP cannot be made 
at that time, EPA will then publish an interim final determination that 
the State has cured the deficiency that gave rise to the sanctions 
clock. At that time the sanctions will be stayed until the conditions 
are met or the approval converts to a disapproval, whichever occurs 
first. If the conditions are met, the threat of sanctions will be 
lifted. If the conditions are not met within the specified timeframe, 
the final conditional approval converts to a disapproval. After a 
letter is sent to the Governor notifying the State of the disapproval, 
sanctions will be immediately imposed. (See, Order of Sanctions Rule, 
59 FR 39833, August 4, 1994).
    The sanction clock for two-to-one offsets will expire on August 13, 
1999, and the clock for Federal highway fund sanctions will expire on 
February 13, 2000. If the approval converts to a disapproval on or 
after August 13, 1999, offset sanctions will immediately go into 
effect. If a disapproval is in effect on or after February 13, 2000, 
highway sanctions will immediately apply.

[[Page 71814]]

VI. Notice of Parallel Processing

    Because a Sanction Clock is running in the State, and because the 
Administrator agreed that EPA would work with the State to expedite 
processing of an I/M SIP approval, Louisiana has requested that EPA 
proceed with an expedited decision process for this revision to the 
SIP. Therefore, approval of this revision is being proposed under a 
procedure called parallel processing, whereby EPA proposes rulemaking 
action concurrently with the State's procedures for approving a SIP 
submittal and amending its regulations (40 CFR part 51, Appendix V, 
section 2.3). If the State's proposed revision is substantially changed 
in areas other than those identified in this document, EPA will 
evaluate those changes and may publish another notice of proposed 
rulemaking. If no substantial changes are made other than those areas 
specified in this document, EPA proposes to publish a final rulemaking 
on the revisions after responding to any submitted comments. Final 
rulemaking action by EPA will occur only after the SIP revision has 
been fully adopted by Louisiana and submitted formally to EPA for 
incorporation into the SIP. In addition, any action by the State 
resulting in undue delay in the adoption of the SIP by the State, or 
adoption of the regulations by the DPS may result in a re-proposal 
altering the approvability of the SIP.

VII. Notice of Proposed Rulemaking

    The EPA is proposing to grant conditional approval of the State's 
submission contingent upon the State satisfying the nine conditions 
listed above, and the I/M program starting no later than January 1, 
2000. The EPA proposes that if the State fails to meet the conditions, 
or fails to start the program on the date identified above, the 
approval will convert to a disapproval, and EPA will send a letter 
notifying the State of the conversion to disapproval.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any State implementation plan. Each request for revision to 
the State implementation plan shall be considered separately in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.

VIII. Administrative Requirements

A. Executive Order (E.O.) 12866

    The Office of Management and Budget has exempted this regulatory 
action from review under E.O. 12866, entitled ``Regulatory Planning and 
Review.''

B. Executive Order 12875

    Under E.O. 12875, EPA may not issue a regulation that is not 
required by statute and that creates a mandate upon a State, local, or 
tribal government, unless the Federal government provides the funds 
necessary to pay the direct compliance costs incurred by those 
governments. If EPA complies by consulting, E.O. 12875 requires EPA to 
provide to the Office of Management and Budget a description of the 
extent of EPA's prior consultation with representatives of affected 
State, local, and tribal governments, the nature of their concern, 
copies of written communications from the governments, and a statement 
supporting the need to issue the regulation. In addition, E.O. 12875 
requires EPA to develop an effective process permitting elected 
officials and other representatives of state, local, and tribal 
government ``to provide meaningful and timely input in the development 
of regulatory proposals containing significant unfunded mandates.''
    Today's proposed rule does not create a mandate on State, local, or 
tribal governments. The rule does not impose any enforceable duties on 
these entities. Accordingly, the requirements of section 1(a) of E.O. 
12875 do not apply to this proposed rule.

C. Executive Order 13045

    Protection of Children from Environmental Health Risks and Safety 
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is 
determined to be ``economically significant'' as defined under 
Executive Order 12866, and (2) concerns an environmental health or 
safety risk that EPA has reason to believe may have a disproportionate 
effect on children. If the regulatory action meets both criteria, the 
Agency must evaluate the environmental health or safety effects of the 
planned rule on children, and explain why the planned regulation is 
preferable to other potentially effective and reasonably feasible 
alternatives considered by the Agency.
    The proposed rule is not subject to E.O. 13045 because it is not 
economically significant under E.O. 12866, and it does not involve 
decisions intended to mitigate environmental health or safety risks.

D. Executive Order 13084

    Under E.O. 13084, EPA may not issue a regulation that is not 
required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, E.O. 13084 requires EPA to 
provide to the Office of Management and Budget, in a separately 
identified section of the preamble to the rule, a description of the 
extent of EPA's prior consultation with representatives of affected 
tribal governments, a summary of the nature of their concerns, and a 
statement supporting the need to issue the regulation. In addition, 
E.O. 13084 requires EPA to develop an effective process permitting 
elected and other representatives of Indian tribal governments ``to 
provide meaningful and timely input in the development of regulatory 
policies on matters that significantly or uniquely affect their 
communities.''
    Today's rule does not significantly or uniquely affect the 
communities of Indian tribal governments. Accordingly, the requirements 
of section 3(b) of E.O. 13084 do not apply to this proposed rule.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 600 et seq., generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. Small entities 
include small businesses, small not-for-profit enterprises, and small 
governmental jurisdictions. This proposed rule will not have a 
significant impact on a substantial number of small entities because 
conditional approval of SIP submittals under section 110 and subchapter 
I, part D of the Act does not create any new requirements but simply 
approves requirements that the State is already imposing. Therefore, 
because the Federal SIP approval does not impose any new requirements, 
I certify that this action will not have a significant economic impact 
on a substantial number of small entities. Moreover, due to the nature 
of the Federal-State relationship under the Act, preparation of 
flexibility analysis would constitute Federal inquiry into

[[Page 71815]]

the economic reasonableness of State action. The Act forbids EPA to 
base its actions concerning SIPs on such grounds. See Union Electric 
Co., v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).
    If the conditional approval is converted to a disapproval under 
section 110(k), based on the State's failure to meet the commitment, it 
will not affect any existing State requirements applicable to small 
entities. Federal disapproval of the State submittal does not affect 
its State-enforceability. Moreover, EPA's disapproval of the submittal 
does not impose a new Federal requirement. Therefore, I certify that 
this potential disapproval action will not have a significant economic 
impact on a substantial number of small entities because it does not 
remove existing requirements nor does it substitute a new Federal 
requirement.

F. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995, 
signed into law on March 22, 1995, EPA must prepare a budgetary impact 
statement to accompany any proposed or final rule that includes a 
Federal mandate that may result in estimated costs to State, local, or 
tribal governments in the aggregate; or to private sector, of $100 
million or more. Under section 205, EPA must select the most cost-
effective and least burdensome alternative that achieves the objectives 
of the rule and is consistent with statutory requirements. Section 203 
requires EPA to establish a plan for informing and advising any small 
governments that may be significantly or uniquely impacted by the rule.
    The EPA has determined that the approval action proposed does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves 
preexisting requirements under State or local law, and imposes no new 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

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

    Dated: December 14, 1998.
Jerry Clifford,
Acting Regional Administrator, Region 6.
[FR Doc. 98-34420 Filed 12-29-98; 8:45 am]
BILLING CODE 6560-50-P