[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Proposed Rules]
[Pages 47130-47139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22738]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Region II Docket No. NJ47-227, FRL-7053-4]


Approval and Promulgation of Implementation Plans; New Jersey; 
Motor Vehicle Inspection and Maintenance Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP) 
revision submitted by New Jersey. This revision consists of two 
elements necessary for EPA to grant final full approval of New Jersey's 
enhanced motor vehicle inspection and maintenance (I/M) program. The 
first element provides the State's final submittal for compliance with 
the National Highway Systems Designation Act (NHSDA), which allowed 
states to claim additional credit for their decentralized inspection 
and maintenance programs, provided they could validate that credit 
claim with actual program implementation data. The second element 
revises New Jersey's performance standard modeling to reflect the 
State's enhanced I/M program as it is currently implemented. This 
element satisfies a condition of EPA's May 14, 1997 conditional interim 
approval of New Jersey's enhanced I/M program SIP. The intended effect 
of this proposal is to approve the two evaluations of the enhanced I/M 
program, in addition to prior minor revisions to the enhanced I/M SIP, 
and to grant final full approval of the program. The enhanced I/M 
program will result in emission reductions that will help achieve 
attainment of the one-

[[Page 47131]]

hour ozone standard and carbon monoxide standard.

DATES: Comments must be received on or before October 11, 2001. Public 
comments on this action are requested and will be considered before 
taking final action.

ADDRESSES: All comments should be addressed to Raymond Werner, Branch 
Chief, Air Programs Branch, Environmental Protection Agency, 290 
Broadway, 25th Floor, New York, New York 10007-1866.
    Copies of the documents relevant to this action are available for 
public inspection during normal business hours at the following 
locations: Environmental Protection Agency, Region 2 Office, Air 
Programs Branch, 290 Broadway, 25th Floor, New York, New York 10007-
1866, and New Jersey Department of Environmental Protection, Bureau of 
Air Quality Planning, 401 East State Street, CN027, Trenton, New Jersey 
08625.

FOR FURTHER INFORMATION CONTACT: Michael P. Moltzen, Air Programs 
Branch, Environmental Protection Agency, 290 Broadway, 25th Floor, New 
York, New York 10007-1866, (212) 637-4249.

SUPPLEMENTARY INFORMATION:

Table of Contents

1. Background
2. What is the purpose and content of New Jersey's submittal?
3. What are the criteria of New Jersey's final NHSDA Evaluation?
    A. Emission Test Scores and Failure Rates
    B. Repair Success Rates
    C. Trigger Data Comparison
4. How have the NHSDA Evaluation criteria been met, and what are the 
conclusions?
    A. Emission Test Scores and Failure Rates
    B. Repair Success Rates
    C. Trigger Data Comparison
5. What is performance standard modeling?
6. How has New Jersey modeled and met the performance standard?
7. What are the related elements associated with New Jersey's 
enhanced I/M program which EPA is addressing today?
8. Summary of Conclusions and Proposed Action
9. Administrative Requirements

1. Background

    The Clean Air Act Amendments of 1990 (the Clean Air Act) require 
certain states to implement an enhanced Inspection and Maintenance (I/
M) program to detect gasoline-fueled motor vehicles which exhibit 
excessive emissions of certain air pollutants. The enhanced I/M program 
includes a tailpipe exhaust analyzer and a dynomometer test which 
simulates realistic driving conditions. The enhanced I/M program is 
intended to help states meet federal health-based national ambient air 
quality standards (NAAQS) for ozone and carbon monoxide by requiring 
vehicles with excess emissions to have their emissions control systems 
repaired. Specifically, the Clean Air Act requires enhanced I/M 
programs to be implemented by states for areas which meet one or more 
of the following criteria:
    (1) Designated as a serious, severe or extreme ozone non-attainment 
area with urbanized populations of 200,000 or more;
    (2) Designated as a carbon monoxide non-attainment area that 
exceeds a 12.7 part per million (ppm) design value with urbanized 
populations of 200,000 or more; or,
    (3) Part of a Metropolitan Statistical Area with a population of 
100,000 or more in the Northeast Ozone Transport Region.
    New Jersey meets all three of these criteria, and consequently has 
adopted, and is implementing, an enhanced I/M program state-wide.
    As required by the Clean Air Act, EPA promulgated regulations, 
including a performance standard and program administration features, 
for the implementation of enhanced I/M programs. EPA's final rule on 
Inspection/Maintenance Program Requirements was promulgated on November 
5, 1992 at 40 CFR part 51. To comply with EPA's requirements for 
implementation, on June 29, 1995, New Jersey submitted to EPA a SIP 
revision for its adopted enhanced I/M program (N.J.A.C. 7:27-15.5). 
That SIP revision included provisions for an inspection program whereby 
all 1968 and newer gasoline fueled motor vehicles, unless specifically 
exempt through law or regulation, would be subject to a steady-state 
dynamometer-based exhaust emission test known as the ASM5015. The SIP 
revision provided that once the program was fully implemented, all 
subject motor vehicles would be inspected at least once every two years 
(i.e., biennially). New Jersey's enhanced I/M SIP revision also 
accounted for a hybrid inspection network, that is, it would utilize 
both centralized, test-only and decentralized, test-and-repair 
facilities.
    Regarding the emission reduction effectiveness of decentralized 
enhanced I/M programs, the National Highway System Designation Act of 
1995 (NHSDA) included a key change to EPA's previously developed 
enhanced I/M rule requirements. Under the NHSDA, EPA cannot disapprove 
a state I/M SIP revision, nor apply an automatic discount to a state I/
M SIP revision under section 182, 184 or 187 of the Clean Air Act, 
because the I/M program in such plan revision is decentralized, or a 
test-and-repair program. Accordingly, an automatic 50 percent credit 
discount that was originally established for decentralized programs by 
EPA's I/M rule was replaced with a presumptive equivalency criterion 
where appropriate. That criterion places the emission reduction credits 
for decentralized networks on par with credit assumptions for 
centralized networks, based upon a state's good faith estimate of 
reductions as provided by the NHSDA. The NHSDA allowed states to claim 
any reasonable amount of credit for their decentralized programs that 
they deemed appropriate, so long as 18 months from the approval of 
their enhanced I/M SIP, the State could show full implementation 
enhanced I/M program data substantiating their credit claim.
    On March 27, 1996, New Jersey submitted a revision to its June 29, 
1995 enhanced I/M SIP, modifying its enhanced I/M program design to 
take advantage of the additional flexibility afforded states by 
Congress in the NHSDA. Consequently, as part of its March 27, 1996 
enhanced I/M SIP revision, New Jersey claimed 80 percent credit for the 
decentralized portion of its enhanced I/M program.
    On May 14, 1997, (62 FR 26401) EPA granted conditional interim 
approval to New Jersey's enhanced I/M program based on both the State's 
original June 29, 1995 enhanced I/M SIP submittal and its subsequent 
March 27, 1996 SIP revision. That action began the 18-month period by 
the end of which, as required by the NHSDA, New Jersey was to 
demonstrate that its decentralized program was as effective as claimed. 
This ``NHSDA clock'' thus began on the effective date of the interim 
approval, June 13, 1997. The conditions of the May 14, 1997 interim SIP 
approval included requirements that the State provide final and 
complete test equipment specifications, test procedures and emission 
standards; and that the State provide enhanced I/M performance standard 
modeling. New Jersey made revisions to its SIP which satisfied the 
conditions of this approval by rectifying the two major deficiencies in 
its enhanced I/M SIP by January 31, 1997 and January 30, 1998, 
respectively. In addition, on December 14, 1998, New Jersey cured eight 
de minimus deficiencies identified by EPA. Fulfillment of the 
conditions that New Jersey provide final and complete test equipment 
specifications, test procedures and emission standards and the 
rectification of the de minimus

[[Page 47132]]

deficiencies is discussed further in section 7. of this proposal.
    The performance standard modeling which was submitted on January 
30, 1998, however, was completed prior to the implementation of New 
Jersey's enhanced I/M program on December 13, 1999. As such, in 
performing this modeling, the State had to make certain assumptions 
regarding the I/M program's parameters, some of which later proved to 
be inaccurate. Subsequently, on April 23, 2001, EPA informed New Jersey 
that an additional submittal which included performance standard 
modeling more reflective of the State's program's parameters as 
currently implemented would be required in order to grant final 
approval of the enhanced I/M program. That request and its subsequent 
fulfillment are discussed further below in this Background section and 
in section 6. of this proposal.
    By letter dated December 12, 1997, EPA indicated that New Jersey's 
15 percent Rate of Progress Plan was disapproved for failure to meet 
certain commitments and found that the State had failed to implement 
its enhanced I/M program. Notice of this letter was published in the 
Federal Register on August 26, 1998 at 63 FR 45399. As a result of 
EPA's finding that New Jersey failed to implement the program, the 
NHSDA clock was effectively stopped six months after the granting of 
conditional interim approval. EPA's finding of failure to implement the 
required enhanced I/M program also began 18 and 24 month time periods 
after which a two-to-one emissions offset sanction and a federal 
highway funding sanction would be imposed, respectively, absent 
implementation of the enhanced I/M program. These are referred to as 
``the sanctions clocks.''
    On November 19, 1999, New Jersey notified EPA by letter that its 
enhanced I/M program would be implemented on December 13, 1999. EPA had 
been working closely with the State during the phase-in period of the 
enhanced I/M program and agreed that the State would have the program 
implemented on December 13, 1999. Therefore, on December 17, 1999 (64 
FR 70659), EPA proposed to find that the State of New Jersey had 
implemented its enhanced I/M program by December 13, 1999. EPA also 
proposed to reinstate the interim approval under Section 348 of the 
NHSDA of the enhanced I/M program effective on December 13, 1999. The 
``NHSDA clock'' thus re-started on December 13, 1999 when the enhanced 
I/M program began being implemented; however only the remaining 12 
months could be used to evaluate the program for NHSDA. This meant that 
New Jersey's NHSDA submittal would be due by December 13, 2000.
    Also in the December 17, 1999 Federal Register, EPA published an 
interim final rule (64 FR 70593), which, as of December 13, 1999, 
stayed the application of the offset sanction and deferred the highway 
sanction. Clocks for both sanctions were originally started based on 
EPA's finding that New Jersey failed to implement the enhanced I/M 
program. Although New Jersey had numerous start-up problems, the 
program was implemented and has since become fully operational. On June 
12, 2001 (66 FR 31554), EPA took final action to find that New Jersey 
has implemented its enhanced I/M program. As a result of that finding, 
the sanctions clocks related to the implementation of New Jersey's 
enhanced I/M program were terminated on July 12, 2001, the effective 
date of that action. The June 12, 2001 action also had the effect of 
reinstating the interim approval of New Jersey's enhanced I/M program.
    As stated above, New Jersey started its enhanced I/M program on 
December 13, 1999. One year later, on December 13, 2000, in order to 
fulfill the requirement of the NHSDA that the State substantiate its 
decentralized program credit claim before expiration of the NHSDA 
clock, New Jersey submitted to EPA an interim analysis. The analysis 
was based on four months of inspection data in an attempt to 
demonstrate the effectiveness of the decentralized portion of its 
enhanced I/M program relative to its centralized test-only network. 
However, due to start-up issues encountered by the State at the 
beginning of the program, the data collected was insufficient for a 
qualitative evaluation. Since New Jersey was not in a position to 
submit an adequately representative NHSDA evaluation before the 
termination of the 18 month period, the interim approval of the I/M 
program under the NHSDA terminated. However, since EPA had approved the 
I/M program under section 110 of the Clean Air Act as well, the I/M 
program remained a part of the federally enforceable SIP.
    Also as stated above, New Jersey's January 30, 1998 I/M SIP 
submittal included performance standard modeling completed prior to the 
implementation of New Jersey's enhanced I/M program, and which was 
based upon assumptions regarding the I/M program's parameters, some of 
which later proved to be inaccurate. As mentioned earlier in this 
section, on April 23, 2001, EPA sent a letter from Acting Regional 
Administrator William J. Muszynski to New Jersey Department of 
Environmental Protection Commissioner Robert C. Shinn, Jr., which 
included remaining actions to be completed before EPA could grant final 
approval to the State's ozone attainment demonstration. Because all 
required elements of the State's SIP must be in place and fully 
approved before the attainment demonstration can be approved, including 
the enhanced I/M program, the letter identified the two outstanding 
items related to that program. Specifically, EPA informed New Jersey 
that its final NHSDA evaluation report and its revised performance 
standard modeling were needed before we could take those approval 
actions.

2. What Is the Purpose and Content of New Jersey's Submittal?

    New Jersey's May 4, 2001 proposed SIP revision submittal (the May 
4, 2001 submittal) addresses EPA's April 23, 2001 letter requesting the 
two remaining enhanced I/M program SIP elements which are needed in 
order for EPA to grant final approval to the program. The overarching 
purpose of the May 4, 2001 submittal is to fulfill the remaining 
requirements necessary before EPA can grant final approval to New 
Jersey's enhanced I/M program.
    First, the May 4, 2001 submittal provides the final evaluation 
report for compliance with the NHSDA, which allowed states to claim 
additional credit for their decentralized program networks, provided 
they could validate that credit claim with actual program 
implementation data. The May 4, 2001 submittal proposes to conclude 
that, based on the qualitative evaluation report, New Jersey's 
decentralized enhanced I/M network is at least 80% as effective as its 
centralized enhanced I/M network. Primary conclusions drawn from the 
analysis are that emission reductions after vehicle repairs 
consistently show greater incremental reductions for re-inspections 
conducted at private inspection facilities (PIFs) as compared to those 
conducted at centralized inspection facilities (CIFs), and that there 
is a consistent level of performance between CIFs and PIFs. The 
evaluation validates the State's original claim allowed by the NHSDA 
regarding the decentralized network's effectiveness.
    Second, the May 4, 2001 submittal includes the State's revised 
performance standard modeling, which was originally submitted on 
January 30, 1998 to satisfy one of the conditions of EPA's May 14, 1997 
interim approval of New Jersey's enhanced I/M program. The revised 
performance standard modeling reflects New Jersey's enhanced I/M 
program as it is currently

[[Page 47133]]

implemented, whereas the original performance standard modeling 
submitted in 1998 made certain assumptions prior to the start-up of the 
enhanced I/M program which later proved to be inaccurate. The revised 
performance standard modeling demonstrates that New Jersey's enhanced 
I/M program, as currently implemented, successfully meets and exceeds 
EPA's low enhanced I/M program performance standard developed for all 
three criteria pollutants (volatile organic compounds (VOC), oxides of 
nitrogen ( NOX) and carbon monoxide or CO) as modeled for 
the year 2002.

3. What Are the Criteria of New Jersey's Final NHSDA Evaluation?

    In New Jersey, motorists have the option of using either a CIF or a 
PIF for initial inspections and a CIF or PIF for re-inspections. For 
the time period New Jersey evaluated, approximately 80 percent of 
motorists who submitted their vehicles to enhanced emissions 
inspections in New Jersey chose to have their initial inspection 
performed at a CIF, whereas, only 20 percent chose to have that initial 
inspection performed at a PIF. New Jersey's final NHSDA evaluation 
report covers program data collected in both types of networks from 
July 1, 2000 to December 31, 2000. The final NHSDA evaluation report 
which was included in the May 4, 2001 submittal contains the results of 
the data analyses criteria described in this section for a full six 
months of enhanced I/M operational data. The following criteria were 
used to evaluate the program's effectiveness with respect to the 20% of 
vehicles which were tested at PIFs as compared with the remaining 80% 
tested at CIFs.

A. Emission Test Scores and Failure Rates

    The database for I/M emissions test results analyzed under this 
criterion consisted of test data for enhanced emissions inspections 
(i.e., involving the ASM5015 exhaust emission test) that were collected 
and electronically stored on the State's Vehicle Information Database 
(VID). Average emission scores (in parts per million (ppm) for 
hydrocarbons (HC) and nitric oxide (NO, an indicator of overall 
NOX reductions) and percent of CO) were calculated from that 
test data. For each network type, the State conducted these 
calculations for initial ASM5015 exhaust emission tests performed 
between July 1 and December 31, 2000 for three conditions: when the 
initial test result was a failure for emissions, when the initial test 
result was a pass for emissions, and the overall emission result (i.e. 
all vehicles receiving an ASM5015 exhaust emission test, regardless of 
pass/fail status). The analysis was aggregated by station type (i.e., 
CIF and PIF).
    Additional analyses were conducted to further investigate the 
trends found when analyzing initial emission test results for each 
pollutant. First, average emissions were calculated by model year and 
station type. Second, to further explore the initial test failure rate 
data, an analysis was conducted which included calculating the 
differences in emissions before and after repair for vehicles failing 
their initial test.

B. Repair Success Rates

    The second criterion used to evaluate the effectiveness of the 
decentralized network compared to the centralized network was an 
analysis of the repair success rate of vehicles that failed their 
initial tests during the time period examined. The repair success rates 
were determined by comparing all initial failing tests with the test 
results of the ``first retest after repair.'' This criterion is useful 
in identifying possible differences in repair success between the 
different after-repair facility types.

C. Trigger Data Comparison

    The last criterion used as part of the State's NHSDA evaluation was 
trigger data comparison. Typically, trigger analyses are conducted as 
part of a program's enforcement efforts. An analysis based on this 
criterion checks various results throughout the inspection process that 
might be symptomatic of program-compromising behavior. An example of a 
trigger checked as part of this criterion is an unusually low failure 
rate. For the purpose of ensuring that indicative criteria were 
included as part of the NHSDA evaluation, New Jersey selected trigger 
analyses used to allow the State to determine if the behavior in the 
PIFs and CIFs is comparable. Data used to satisfy this criterion was 
collected as part of initial vehicle inspections in New Jersey during 
the period July 1 through December 31, 2000 from both centralized and 
decentralized stations.
    For each of the individual triggers analyzed, an index number on a 
scale of 0 to 100 was computed for each PIF and CIF emissions analyzer. 
For example, in general, a below-average failure rate would produce a 
lower index score than the mean value for the entire inspection 
network. Average trigger index numbers were then compared to provide an 
indication of relative performance of the decentralized network 
compared to the centralized network. EPA agrees that the criteria 
selected by the State to qualitatively evaluate the effectiveness of 
its decentralized enhanced I/M network relative to the centralized 
network are sufficient for the purposes of the NHSDA requirements.

4. How Have the NHSDA Evaluation Criteria Been Met, and What Are 
the Conclusions?

    During the period of July 1, 2000 to December 31, 2000, New Jersey 
collected operational data regarding its enhanced I/M program, 
summarized as follows:
 914,842 vehicles received an initial ASM5015 exhaust emission 
test
 837,722 (91.6%) vehicles passed the initial ASM5015 exhaust 
emission test
 77,120 (8.4%) failed the initial ASM5015 exhaust emission test
 180,262 (19.7%) initial ASM5015 tests conducted by PIFs (test-
and-repair)
 734,580 (80.3%) initial ASM5015 tests conducted by CIFs (test-
only)

    A summary of the State's analysis of the data collected based on 
the criteria described above follows.

A. Emission Test Scores and Failure Rates

    This analysis covered 914,842 vehicles receiving initial ASM5015 
exhaust emission tests between July 1 and December 31, 2000. Overall, 
for both centralized and decentralized networks, the State found that 
vehicles failing the enhanced test are significantly more polluting 
than vehicles which pass the test. Furthermore, New Jersey found that 
there was a significant difference in overall average ASM5015 initial 
test failure rates (i.e., 7.6 percent for CIFs and 11.9 percent for 
PIFs). Another significant finding of the Emission Test Scores and 
Failure Rates analysis showed an average first repair success rate of 
approximately 83.9 percent in the PIFs for vehicles receiving their 
second test at a PIF, as compared to an average rate of approximately 
56.9 percent in the CIFs for vehicles receiving their second test at a 
CIF.
    The following conclusions can be drawn from the Emission Test 
Scores and Failure Rates analysis:
     Overall, the enhanced I/M program is achieving significant 
reductions in emissions through the effective repair of vehicles 
emitting unacceptable levels of air pollutants. The analyses show 
overall reductions of 55 percent for HC, 58 percent for NOX 
and 84 percent for carbon monoxide.
     The analysis of emission reductions after repairs 
consistently show greater

[[Page 47134]]

incremental reductions for re-inspections conducted at PIFs as compared 
to those conducted at CIFs. New Jersey's evaluation concludes that 
repairs conducted by PIFs are more successful and effective on the 
first attempt as compared to any repairs conducted by either a vehicle 
owner or an untrained repair technician (e.g., subsequent to test 
failure at a CIF).
     The State concluded that test results for the two networks 
by model year track closely, indicating near equivalency between the 
network types when comparing similar model years.

B. Repair Success Rates

    New Jersey found that 91.6 percent of the vehicles tested using the 
ASM5015 exhaust emission test passed their initial inspection. 
Following the second evaluation criterion described above, New Jersey 
analyzed the repair success rate of the 77,120 vehicles that failed 
this initial test during the time period examined.
    New Jersey found an average first repair success rate of 
approximately 83.9 percent in the PIFs for vehicles receiving their 
second test at a PIF, as compared to an average rate of approximately 
56.9 percent in the CIFs for vehicles receiving their second test at a 
CIF.
    The State drew the following conclusions from the Repair Success 
Rates analysis:
     Repairs performed on vehicles tested exclusively at CIFs 
appear to be less effective when compared to repairs administered when 
a vehicle had one or both tests performed at a PIF. This is most likely 
attributable to the higher skill level of the technicians in the test 
and repair community.
     The overall repair success rates of the enhanced I/M 
program, regardless of the test facility, demonstrate that the program 
is significantly reducing vehicle emissions.

C. Trigger Data Comparison

    Trigger data test results that were compared between the two 
networks included test data collected as part of initial vehicle 
inspections. As discussed in section 3.C. above, for each of the 
individual triggers analyzed, an index number was computed for each PIF 
and CIF emissions analyzer. In analyzing the trigger data, distribution 
of average index scores, on a scale of zero to 100, for PIFs verses 
CIFs was created for comparative purposes. New Jersey's analysis showed 
that the distributions for both the CIF and PIF analyzers are centered 
between index ratings of 70 and 85; however, the range of the 
distribution differs substantially between the facility types. While 
average CIF indexes are tightly grouped between 75 and 85, PIF indexes 
are more broadly grouped, most ranging from 55 to 85. As previously 
discussed, scores extending toward zero from the clustered majority of 
the scores indicate a higher probability of poor performance.
    The State drew the following conclusions from the Trigger Data 
analysis:
    i. The fraction of PIF analyzers with below-average scores account 
for a small fraction of the total volume of initial tests. The 
significance of this finding is that only a relatively small fraction 
of the initial test volume occurred at the facilities considered most 
likely to be engaging in questionable performance.
    ii. Results show that there is little difference between the PIF 
and CIF networks on an average basis; i.e., all average trigger index 
values are similarly located in the upper 70s. It thus appears that, on 
average, CIFs and PIFs are achieving similar performance, based upon 
the selected trigger criteria.
    Overall conclusions of NHSDA evaluation:
    Although the NHSDA evaluation was qualitative in nature, it did 
allow the State to draw conclusions which substantiate the State's 80 
percent PIF effectiveness credit claim. First, the State found that the 
analyses demonstrate that emission reductions after repairs 
consistently show greater incremental reductions for re-inspections 
conducted at PIFs as compared to those conducted at CIFs. Second, it 
found that these analysis all appear to demonstrate a consistent level 
of performance between CIFs and PIFs. Taking into consideration all the 
results from the various analyses, it is clear that the PIFs are 
meeting the State's 80 percent SIP credit claim estimation. In 
addition, these analyses seem to indicate that the State may have been 
conservative in that original estimation.
    EPA agrees with New Jersey's conclusions regarding the analyses 
associated with each criterion chosen, as well as its overall 
conclusion regarding the results of the final NHSDA evaluation report. 
EPA proposes to approve this element of the May 4, 2001 SIP revision. 
EPA also proposes to find that New Jersey has fulfilled its 
requirements under the NHSDA regarding the substantiation of its 
decentralized enhanced I/M program credit claim.

5. What Is Performance Standard Modeling?

    EPA included provisions for a model program, known as the 
performance standard, in the requirements established for enhanced I/M 
programs. The features of the enhanced I/M performance standard model 
program are used to generate the minimum performance target that a 
state must meet. When programmed into EPA's mobile source emission 
factor model (the MOBILE model), these features produce target emission 
factors, in grams per mile of vehicle travel, which a state's enhanced 
I/M program must not exceed to be deemed minimally acceptable for 
purposes of SIP approval. The performance standard provides a gauge by 
which EPA can evaluate the adequacy and effectiveness of each state's 
enhanced I/M program. As such, states are required to demonstrate that 
their enhanced I/M programs achieve applicable area-wide emission 
levels for the pollutants of interest that are equal to, or lower than, 
those which would be realized by the implementation of the performance 
standard model program. However, the combination of program features 
which make up the performance standard does not necessarily constitute 
a recommended program design. The use of the performance standard 
approach allows EPA to meet Congress's dual statutory requirements that 
EPA develops a performance standard based on certain statutory features 
and that the standard provide states with maximum flexibility to design 
I/M programs to meet local needs.
    On September 18, 1995 (60 FR 48029), EPA amended the enhanced I/M 
final rule to establish an alternate, ``low enhanced'' I/M performance 
standard for those areas that can meet the Clean Air Act's requirements 
for Reasonable Further Progress (RFP) and attainment of either the CO 
and/or ozone ambient air quality standards without the benefits of the 
high enhanced I/M performance standard. This low enhanced performance 
standard is designed for areas that are required to implement enhanced 
I/M but do not have a major mobile source component to the air quality 
problem or can obtain adequate emission reductions from other sources 
to meet the 15% VOC emission reduction requirement and demonstrate 
attainment.
    The low enhanced performance standard meets the Clean Air Act's 
requirement that it be based on centralized, annual testing of light 
duty cars and trucks, and checks for tampering and exhaust emissions. 
Nevertheless, this standard can be met with a comprehensive 
decentralized, test-and-repair program or a hybrid program comprised of 
both centralized

[[Page 47135]]

and decentralized networks such as the program in New Jersey.

6. How Has New Jersey Modeled and Met the Performance Standard?

    In compliance with the Clean Air Act, on January 30, 1998, New 
Jersey submitted modeling to EPA which was intended to satisfy the 
requirement that the enhanced I/M program meet the performance standard 
targets. At the time of that submittal New Jersey was required to meet 
the original enhanced performance standard, subsequently termed the 
``high'' enhanced performance standard. This was a consequence of New 
Jersey's 1996 15 percent Rate of Progress plan, which relied on credit 
from a program which was to meet that standard, and which is discussed 
in the Background section, section 1. of this proposal.
    On February 5, 1999, New Jersey submitted a revised 1996 15 percent 
ROP Plan, which no longer relied on the emission reduction benefits 
from the enhanced I/M program. Subsequently, on April 23, 1999 (64 FR 
19913), EPA approved this revised 15 percent ROP plan. As such, New 
Jersey is currently demonstrating compliance with the Clean Air Act 
requirements for RFP. On April 11, 2001, New Jersey submitted to EPA a 
ROP Plan which demonstrates that it will meet reasonable further 
progress requirements for the milestone year 2002. That demonstration 
is based on a mix of measures which includes the current enhanced I/M 
program which meets the ``low'' enhanced performance standard. 
Therefore, New Jersey is only required to meet the low enhanced 
performance standard, discussed above in Section 5. The May 4, 2001 
submittal includes modeling which demonstrates that New Jersey's 
enhanced I/M program as currently implemented meets EPA's low enhanced 
performance standard.
    As required in the enhanced I/M final rule, in its May 4, 2001 
submittal New Jersey's intent was to show through modeling that its 
enhanced I/M program is being implemented such that it meets or exceeds 
the low enhanced performance standard, expressed as emission levels in 
program area-wide average grams per vehicle mile (gpm). New Jersey is 
required to meet the low enhanced performance standard for the ozone 
precursors hydrocarbons (HC), NOX and also for CO because of 
its non-attainment status for ozone and CO.
    EPA's enhanced I/M final rule also requires that equivalency to the 
performance standard be demonstrated using the most current version of 
EPA's mobile source emission model. New Jersey has completed its 
performance standard modeling using the most current model applicable 
for its purposes, MOBILE5a-H. A subsequent version of the model, 
MOBILE5b, has also been released, however, EPA allows states to 
continue to use the MOBILE5a version for SIP submittals and 
transportation conformity determinations prior to, and for a limited 
period after, the release of EPA's next version of the model, MOBILE6.
    Both the high and low enhanced performance standards and 
evaluations to determine a program's performance standard compliance is 
based on the following parameters: network type (centralized, 
decentralized or a hybrid network), decentralized effectiveness or 
credit (as a percentage of centralized network effectiveness), program 
start date, test frequency, emission standards (cutpoints), vehicle 
model year and type coverage, exhaust emission test, emission control 
device inspections (visual), evaporative system function checks, pre-
1981 model year stringency (i.e., failure rate), waiver rate, 
compliance rate, evaluation date and on-road testing (as a percentage 
of all subject vehicles).
    Although each state must model the performance standard using 
specific values specified by EPA (detailed in the Technical Support 
Document for this proposal and at 40 CFR 51.351), the performance 
standard emission factor results may vary from state to state. 
Variations will primarily result if states decide to use state-specific 
vehicle registration distribution and/or state-specific Vehicle Miles 
Traveled (VMT) mix. In the modeling included in its May 4, 2001 
submittal, New Jersey used the most recently available state-specific 
vehicle registration data, which was from 1999. The state-specific 
registration data was also used to modify the VMT mix used in the 
modeling so that it more accurately represented the vehicle type 
distribution in New Jersey. Other local parameters, such as minimum, 
maximum and ambient temperatures were also used in determining the 
emission factors associated with the low enhanced performance standard. 
New Jersey's modeling with these state-specific and local parameters 
resulted in low enhanced performance standard emission factors of 1.29 
gpm, 1.41 gpm and 18.33 gpm for VOC, NOX and CO, 
respectively.
    A discussion of the various program parameters New Jersey used to 
determine compliance with the low enhanced performance standard 
follows.
    Network Type: New Jersey's enhanced I/M program is comprised of a 
hybrid network of both centralized test-only facilities and 
decentralized test-and-repair facilities. For modeling purposes, the 
State assumed a 70/30 split for its enhanced I/M network (that is, of 
those vehicles which ultimately pass inspection, either on their first 
test or subsequent to initial failure and repair, 70 percent of the 
vehicle owners passing final inspection are expected to do so at a 
centralized inspection facility, and the remaining 30 percent are 
expected to pass final inspection at a decentralized private inspection 
facility). As discussed in section 2. of this notice, New Jersey 
claimed that the decentralized portion of its enhanced I/M program 
would be 80 percent as effective as the centralized portion of its 
program. Therefore, New Jersey has assumed 80 percent credit for the 
decentralized portion of its program in its performance standard 
modeling. As discussed in Section 4. of this notice, EPA is proposing 
to approve the State's demonstration that its decentralized inspection 
network is at least 80% as effective as its centralized network. For 
further discussion of the methodology employed by the State in modeling 
its hybrid network, the reader is referred to the Technical Support 
Document.
    Start Date: The State began implementing its enhanced I/M program 
on December 13, 1999. For modeling purposes, the State assumed an 
enhanced I/M start date of January 1, 2000.
    Test Frequency: The test frequency of New Jersey's enhanced I/M 
program is biennial (that is, vehicle inspections are required once 
every two years). However, there are several types of ``off-cycle'' 
inspections which, due to their nature, result in vehicles being 
inspected annually, rather than biennially. Off-cycle inspections 
include random roadside inspections, retail and casual change of 
ownership inspections and courtesy inspections. In New Jersey's 
previous performance standard modeling, the State estimated the 
expected volume of ``off-cycle'' inspections and claimed credit for 
those inspections as annual, rather then biennial, inspections. The 
State chose to be more conservative with its current performance 
standard modeling, and did not include any additional benefits achieved 
from ``off-cycle'' annual inspections in the evaluation which EPA is 
proposing to approve in this notice.
    Model Year and Vehicle Type Coverage: All gasoline-fueled vehicles 
in New Jersey, regardless of model year, receive some type of emissions 
inspection as part of the enhanced I/M program, unless specific 
regulatory

[[Page 47136]]

exemptions apply through New Jersey Division of Motor Vehicle (NJDMV) 
regulations at N.J.A.C. 13:20-43.1. (exemptions include collector motor 
vehicles, low mileage vehicles, and historic motor vehicles). However, 
only 1981 and newer model year vehicles which are: (1) classified as 
light-duty gasoline-fueled motor vehicles (LDGVs), or light-duty 
gasoline-fueled trucks 1 and 2 (LDGT1s and LDGT2s), (2) amenable to 
dynamometer-based testing, and (3) not ``specifically exempted'' from 
enhanced testing, are subjected to the enhanced inspection test 
procedures. A more detailed discussion of the applicable exhaust and 
evaporative emission test for each vehicle category can be found in the 
Technical Support Document.
    Exhaust Emission Test Type: The majority of gasoline-fueled motor 
vehicles inspected as part of the State's enhanced I/M program receive 
either an ASM5015 test or an idle test as their exhaust emission test. 
Specifically, the ASM5015 exhaust emission test procedure (a single 
mode ASM test) is performed on all 1981 and newer LDGVs, LDGT1s and 
LDGT2s which are amenable to dynamometer-based testing and are not 
specifically exempted from enhanced testing. All pre-1981 LDGVs, LDGT1s 
and LDGT2s, and all HDGVs, receive an idle test. New Jersey accounted 
for tests applicable to those model year categories in its performance 
standard modeling. A more detailed discussion is found in the technical 
support document.
    Certain 1981 and newer vehicles are exempt from the ASM5015 exhaust 
emission testing. Certain types of the vehicles in this exempt group 
are subjected to a less extensive 2500 RPM exhaust emissions test. In 
its previous performance standard modeling submittal, the State 
estimated the number of vehicles that would be exempt from the ASM5015 
exhaust emission test because they were not amenable to dynamometer 
testing (these include vehicles which employ full-time, four-wheel 
drive or which are installed with non-switchable traction control). 
This estimation was then used to determine the loss in credit 
attributed to these vehicles receiving a 2500 RPM test in lieu of the 
ASM5015 exhaust emission test. At that time, the State estimated that 
fraction at one (1) percent of the total number of vehicles which 
otherwise meet the requirements to receive the ASM5015 test. Based on 
its data analysis from the enhanced I/M program as currently 
implemented, the State significantly underestimated this percentage of 
vehicles that would be exempt from the ASM5015 dynamometer test. New 
Jersey's current program data shows that while 1,062,311 initial 
ASM5015 exhaust emission tests were performed from August 2000 through 
March 2001, there were 96,761 2500 RPM exhaust emission tests performed 
during the same period. This translates to 8.4 percent of the vehicles 
which otherwise met the requirements to receive the ASM5015 test, 
instead received a 2500 RPM test. For current modeling purposes, the 
State assumed the percentage was 10 percent to be conservative in its 
estimates.
    The NJDMV's regulations and State statute also specifically exempt 
several types of vehicles that would otherwise be subjected to enhanced 
I/M testing from either the enhanced tests (that is, subjecting these 
vehicles, instead, to a less effective exhaust emission test) or from 
emission testing as a whole. These vehicles include: (1) low mileage 
vehicles, and (2) collector motor vehicles. In addition, the NJDMV's 
regulations maintain a vehicle category that exempts applicable 
vehicles from basic I/M emission testing. These vehicles are classified 
by the NJDMV as historic motor vehicles.
    In its original performance standard modeling submittal, the State 
estimated that the number of low mileage vehicles in the fleet eligible 
for exemption would be approximately one (1) percent. Also in that 
submittal, the State determined that although it was not possible to 
determine the number of applications the State would receive under the 
enhanced I/M program for designation as a collector motor vehicle, it 
was believed the number would be insignificant, well under 1 percent. 
Therefore, collector motor vehicles were not accounted for in the 
original performance standard modeling. New Jersey also did not account 
for historic motor vehicles in its original performance standard 
modeling, as the vehicles in this category, by definition, fall well 
outside the 25 model year analysis window examined by the MOBILE model.
    Based on its data analysis from the enhanced I/M program as 
currently implemented, the State determined that the number of vehicles 
actually applying for a low mileage exemption was, approximately 0.3 
percent, seventy percent lower than the rate that was estimated in the 
original performance standard modeling. Because the actual rate is so 
small, the State did not consider the impact of these vehicles as part 
of the revised performance standard modeling. In addition, actual I/M 
program operational data indicated that the State was correct in its 
original assessment that the collector vehicle category would be 
insignificant, and therefore New Jersey also did not account for these 
vehicles in the revised modeling. Historic motor vehicles are not 
accounted for since they fall well outside the 25 model year analysis 
window examined by the MOBILE5a-H model. Based on the State's 
determinations described above, the only vehicles receiving a 2500 RPM 
test that are considered in the May 4, 2001 performance standard 
modeling are those vehicles deemed not amenable to dynamometer-based 
testing. Thus, 10 percent of the 1981 and newer vehicles in the State 
were modeled by New Jersey as receiving a 2500 RPM test instead of the 
ASM5015 test. Further detail on how the State modeled the effect of 
that ASM5015 exemption/2500 RPM testing rate can be found in the 
technical support document for this proposal.
    Emission Standards: New Jersey assumed implementation of initial 
cutpoints for the ASM5015 exhaust emission test. ASM5015 cutpoints are 
the numeric values of the emission levels used to determine the pass/
fail status of a vehicle, as compared to the measured emission test 
results, under the ASM5015 test. Exceeding one or more cutpoints is 
considered as failing the emission test. Initial ASM5015 cutpoints are 
less stringent than final cutpoints would be under the program.
    Emission Control Device Inspections: New Jersey performs a visual 
inspection to determine the presence of a catalytic converter on all 
1975 and newer motor vehicles, and that inspection was modeled by the 
State in its performance standard modeling. In addition, the State's 
modeling assumes that all vehicles subject to a gas cap check also 
receive a visual gas cap check. New Jersey also included fuel inlet 
restrictor testing for all applicable model years in its revised 
performance standard modeling. The purpose of that test is to determine 
whether or not a leaded gasoline pump nozzle could fit into the 
vehicle's gasoline inlet, allowing for the possibility of misfueling 
with leaded gasoline. Use of leaded gasoline inhibits the effectiveness 
of vehicles' catalytic converters. Although fuel inlet restrictor 
testing was part of the State's annual inspections since June 1990, New 
Jersey stopped performing inlet restrictor tests in 1994 because it was 
no longer possible for New Jersey motorists to obtain leaded gasoline. 
However, based on EPA modeling guidance (EPA-AA-TEB-94-01, User's Guide 
to MOBILE5, May 1994), states that have previously performed fuel inlet 
tests for at least one full cycle (and have required catalyst

[[Page 47137]]

replacement upon failure) may claim the SIP credit associated with this 
testing without future testing. Since New Jersey met these 
qualifications, the State is still permitted to take emission credit 
for the fuel inlet restrictor test.
    Evaporative System Function Checks: New Jersey's evaporative 
emission testing is currently limited to a pressurized gas cap test. 
The gas cap check is designed to insure that the gas cap seals properly 
and has no leaks. All gasoline-fueled motor vehicles manufactured with 
a sealed gas cap are subject to this pressured gas cap inspection, 
which New Jersey determined comprises all 1971 and later model year 
vehicles. However, since the MOBILE model only looks at the last 25 
model years from the evaluation date, for a 2002 evaluation year, New 
Jersey only evaluated emissions for model years 1977 to 2002. Further 
detail on which vehicle categories are subject to the State's 
pressurized gas cap inspection can be found in the Technical Support 
Document. MOBILE5 does not allow a state to estimate the benefit of a 
gas cap test separate from the full evaporative pressure test, which 
New Jersey has not yet implemented as part of its enhanced I/M program. 
EPA has determined that the pressurized gas cap inspection accounts for 
40 percent of the full pressure test benefit. New Jersey accounted for 
only that fraction of emission reductions attributable to the gas cap 
test in its performance standard modeling. Further details on the 
State's methodology in determining that credit can be found in the 
Technical Support Document. In its performance standard modeling, New 
Jersey also projects future emission reductions associated with the 
evaporative purge test for all 1981 and newer vehicles subject to the 
ASM5015 exhaust emission test. The purge test was designed to inspect 
the ability of the vehicle's evaporative control system to properly 
purge stored VOC vapors from the evaporative canister. However, in-use 
evaluation of the purge test by EPA and several states revealed 
significant operational problems with the administration of the purge 
test. Currently, New Jersey does not implement the evaporative purge 
test. EPA acknowledged that problems exist with the purge test in a 
memorandum dated November 5, 1996 from Margo T. Oge, Director, Office 
of Mobile Sources, to its regional Air Division Directors. In that 
guidance and in an addendum memorandum issued on December 23, 1996, EPA 
determined that this type of testing in the interim would not be 
required, but that EPA is allowing states who committed to performing 
the purge test in the future, including New Jersey, to claim the 
applicable emission credit in its performance standard modeling for 
future years.
    Stringency. For modeling purposes, New Jersey assumed a 30 percent 
emission test failure rate for pre-1981 vehicles. EPA agrees that this 
is a reasonable assumption.
    Waiver Rate: In accordance with 40 CFR 51.360(d)(1), each state's 
enhanced I/M SIP must include ``a maximum waiver rate expressed as a 
percentage of initially failed vehicles.'' The purpose of this waiver 
rate is to estimate emission reduction benefits in a modeling analysis. 
EPA's enhanced I/M performance standard assumes a 3 percent waiver 
rate. New Jersey also assumed a 3 percent waiver rate for 1981 and 
newer vehicles in its original performance standard modeling. Under New 
Jersey's enhanced I/M program, any vehicle that applies for a waiver 
must show compliance with the idle test, in addition to meeting the 
minimum cost expenditure. Since all pre-1981 vehicles receive the idle 
test as their official inspection test under the State's enhanced I/M 
program, these vehicles are not eligible for a waiver. Thus, New 
Jersey's pre-1981 model year waiver rate is effectively zero. Data from 
the first year of the enhanced I/M program's implementation shows that 
the waiver rate in New Jersey is approximately 0.3 percent, well below 
the 3 percent waiver rate assumed in the State's original performance 
standard modeling. However, for the purposes of its performance 
standard modeling evaluation, the State continued to assume a 
conservative waiver rate of 3 percent for all model years.
    Compliance Rate: The compliance rate for New Jersey's basic I/M 
program was 96 percent. In moving to the enhanced program, the State 
originally assumed that transitioning from a sticker-enforced 
inspection program to a registration denial-enforced program increases 
compliance with the program by a moderate amount of 2 percent. At the 
time of its May 4, 2001 submittal, New Jersey did not have any 
validated statistical evidence which contradicted that assumed 
compliance rate and continues to assume a 98 percent compliance rate in 
the current performance standard modeling exercise. EPA believes this 
is a reasonable assumption.
    Evaluation Date: Both the high and low enhanced performance 
standard model programs include evaluation dates. These were the dates 
by which states had to demonstrate, through modeling, that their 
enhanced I/M programs could attain equivalent or lower emission levels 
than the performance standard program. Specifically, states had to 
demonstrate that the emission levels achieved by their enhanced I/M 
program were equivalent to, or lower than, those achieved by the 
performance standard program by 2000 for ozone (VOC and NOX) 
and 2001 for CO. At the time of the Agency's May 14, 1997, conditional 
interim approval of New Jersey's enhanced I/M program, EPA made the 
determination that based on the provisions of the NHSDA, the evaluation 
dates in the Federal I/M rule had been superseded. The provisions of 
the NHSDA allow for state development of an enhanced I/M program 
commencing later than those dates set forth in EPA's November 5, 1992 
final rule on Inspection/Maintenance Program Requirements.
    Therefore, to be consistent with the intent of the NHSDA, EPA 
determined that the initial program evaluation for all three criteria 
pollutants would be for calendar year 2002. Because of the seasonal 
nature of New Jersey's nonattainment for ozone and carbon monoxide, the 
State completed its performance standard modeling for the ozone 
precursors VOC and NOX with an evaluation date of July 1, 
2002, and for CO with an evaluation date of January 1, 2002.
    Other Modeling Parameters and Assumptions: In addition to the 
parameters and assumptions discussed above, New Jersey made certain 
other assumptions necessary to complete its performance standard 
modeling. These assumptions are consistent across modeling New Jersey 
did for its own program as well as for the EPA model I/M 240 program 
which is used to generate the minimum performance target that a state 
must meet. Further detail on these additional assumptions can be found 
in the Technical Support Document.
    Performance Standard Modeling Results: The following table shows 
the emission factors obtained from both the EPA model performance 
standard program and New Jersey's enhanced I/M program for January 1, 
2002 for CO and July 1, 2002 for VOC and NOX.

[[Page 47138]]



                       Table 1.--Modeling Results
------------------------------------------------------------------------
           Program type             VOC (gpm)    NOX (gpm)     CO (gpm)
------------------------------------------------------------------------
Low Enhanced Performance Standard         1.48         1.60        21.58
New Jersey Program...............         1.29         1.41        18.33
------------------------------------------------------------------------

    Overall conclusions of the performance standard modeling evaluation
    Based on the State's modeling analysis, EPA agrees that New 
Jersey's enhanced I/M program, as currently implemented, exceeds the 
low enhanced I/M program performance standard for all three criteria 
pollutants. EPA is proposing to approve New Jersey's performance 
standard modeling.

7. What Are the Related Elements Associated With New Jersey's 
Enhanced I/M Program Which EPA Is Addressing Today?

    EPA is proposing to approve certain revisions to New Jersey's 
enhanced I/M SIP which were made prior to the May 4, 2001 submittal. As 
discussed in section 1 of this notice, on May 14, 1997, EPA granted 
conditional interim approval to New Jersey's enhanced I/M program. In 
addition to the requirement that the State provide enhanced I/M 
performance standard modeling (which the State submitted on May 4, 2001 
and which EPA is proposing to approve today), the conditions of the May 
14, 1997 interim SIP approval also included additional requirements 
that the State provide final and complete test equipment 
specifications, test procedures and emission standards. On January 31, 
1997, New Jersey submitted a SIP revision to satisfy those additional 
conditional requirements. New Jersey finalized those requirements 
through a succession of rule adoptions on February 3, 1997 and July 7, 
1997 at New Jersey Administrative Code (N.J.A.C.) 7:27-15 (Subchapter 
15, Control and Prohibition of Air Pollution from Gasoline-fueled Motor 
Vehicles) and N.J.A.C. 7:27B-4 (Subchapter 4, Air Test Method 4: 
Testing Procedures for Motor Vehicles). EPA is proposing to approve 
those additional requirements in today's action.
    In addition to the conditional requirements discussed above, there 
also remained eight de minimus deficiencies related to the Clean Air 
Act requirements for enhanced I/M in the State's submittal. Those de 
minimus deficiencies did not affect the interim approval status of New 
Jersey's enhanced I/M program, however they did need to be rectified 
prior to EPA granting final approval of the program. In order to 
address these de minimus deficiencies, New Jersey needed to:
    (1) Submit proof that adequate funding will be available throughout 
the life of the enhanced I/M program, as set forth in 40 CFR 51.354.
    (2) Submit final requirements for inspection of fleet vehicles, as 
set forth in 40 CFR 51.356.
    (3) Insure that quality control measures are in accordance with the 
requirements set forth in 40 CFR 51.359.
    (4) Provide a detailed description of its motorist compliance 
enforcement program, as set forth in 40 CFR 51.361.
    (5) Provide a description of the procedures that will ensure 
program quality (such as audits and training requirements), as set 
forth in 40 CFR 51.363.
    (6) Provide final program requirements for data collection, as set 
forth in 40 CFR 51.365.
    (7) Provide final procedures for analyzing and reporting program 
data, as set forth in 40 CFR 51.366.
    (8) Complete the public information program, including the repair 
station report card, as set forth in 40 CFR 51.368.
    New Jersey's December 14, 1998 enhanced I/M SIP revision was 
intended in part to cure these eight de minimis deficiencies identified 
by EPA. Two of the eight de minimus deficiencies were finalized by the 
State through rule adoptions on December 6, 1999 at N.J.A.C. Title 13, 
Chapter 20, Subchapter 43, Enhanced Motor Vehicle Inspection and 
Maintenance Program: de minimus deficiency #2 was cured at 
N.J.A.C.13:20-43.4, 43.5, and 43.6, and de minimus deficiency #4 was 
cured at N.J.A.C.13:20-43.16. Evidence of these corrections is 
contained in the docket for this rulemaking. As part of its proposal to 
approve New Jersey's enhanced I/M program today, EPA is now proposing 
to find that the State has cured the eight previously identified de 
minimus deficiencies.
    Pertaining to de minimus deficiency #2, New Jersey has revised its 
regulations at N.J.A.C. 13:20-43.4 to require fleet and employee-owned 
motor vehicles operated on Federal facilities to comply with the I/M 
program requirements for the state. However, EPA is not requiring 
states to implement 40 CFR 51.356(a)(4), dealing with Federal 
installations within I/M areas, at this time. The Department of Justice 
has recommended to EPA that this Federal regulation be revised since it 
appears to grant states authority to regulate Federal installations in 
circumstances where the Federal government has not waived sovereign 
immunity. It would not be appropriate to require compliance with this 
regulation if it is not constitutionally authorized. EPA will be 
revising this provision in the future and will review state I/M SIPs 
with respect to this issue when this new rule is final. Therefore, for 
these reasons, EPA is neither proposing approval nor disapproval of the 
specific requirements which apply to Federal facilities at this time.

8. Summary of Conclusions and Proposed Action

    This revision is being proposed under a procedure called parallel 
processing, whereby EPA proposes rulemaking action concurrently with 
the state's procedures for amending its regulations. If the 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 cited in this document, EPA will publish a 
final rulemaking on the revisions. The final rulemaking action by EPA 
will occur only after the SIP revision has been adopted by New Jersey 
and submitted formally to EPA for incorporation into the SIP.
    Based on the analyses included in New Jersey's May 4, 2001 
submittal, EPA concludes the following. The State's NHSDA evaluation 
validates New Jersey's 80% decentralized test and repair effectiveness 
rate credit claim. New Jersey's evaluation uses actual program 
implementation data to show that the decentralized portion of the 
network is at least 80% as effective as its centralized program, as the 
State previously claimed. EPA also concludes, based on New Jersey's 
performance standard modeling which reflects the State's enhanced I/M 
program as it is currently implemented, that the State's program meets 
the low enhanced performance standard. Based on these conclusions, EPA 
is proposing to approve New Jersey's May 4, 2001 SIP revision.

[[Page 47139]]

    EPA is also proposing to approve the final and complete test 
equipment specifications, test procedures and emission standards that 
New Jersey submitted to satisfy conditions of EPA's May 14, 1997 
interim approval. New Jersey made a revision to its SIP on January 31, 
1997 which contained those required elements.
    EPA is proposing to find that New Jersey's December 14, 1998, SIP 
revision submittal adequately remedies the eight de minimus 
deficiencies previously identified.
    Finally, as a consequence of EPA's conclusions regarding the 
approvability of the elements summarized above, EPA is proposing to 
change the conditional interim status of the approval of New Jersey's 
enhanced I/M program to final approval.

9. Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. This proposed action merely proposes to approve state law as 
meeting federal requirements and imposes no additional requirements 
beyond those imposed by state law. Accordingly, the Administrator 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). Because this rule proposes to 
approve pre-existing requirements under state law and does not impose 
any additional enforceable duty beyond that required by state law, it 
does not contain any unfunded mandate or significantly or uniquely 
affect small governments, as described in the Unfunded Mandates Reform 
Act of 1995 (Public Law 104-4). This proposed rule also does not have a 
substantial direct effect on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it have substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government, as specified 
in Executive Order 13132 (64 FR 43255, August 10, 1999), because it 
merely proposes to approve a state rule implementing a federal 
standard, and does not alter the relationship or the distribution of 
power and responsibilities established in the Clean Air Act. This 
proposed rule also is not subject to Executive Order 13045 (62 FR 
19885, April 23, 1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3 
of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing 
this proposed rule, EPA has taken the necessary steps to eliminate 
drafting errors and ambiguity, minimize potential litigation, and 
provide a clear legal standard for affected conduct. EPA has complied 
with Executive Order 12630 (53 FR 8859, March 15, 1988) by examining 
the takings implications of the rule in accordance with the ``Attorney 
General's Supplemental Guidelines for the Evaluation of Risk and 
Avoidance of Unanticipated Taking's'' issued under the executive order. 
This proposed rule does not impose an information collection burden 
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

    Dated: August 31, 2001.
William J. Muszynski,
Acting Regional Administrator, Region 2.
[FR Doc. 01-22738 Filed 9-10-01; 8:45 am]
BILLING CODE 6560-50-P