[Federal Register Volume 73, Number 4 (Monday, January 7, 2008)]
[Proposed Rules]
[Pages 1175-1195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-25636]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R09-OAR-2007-0561; FRL-8513-6]


Approval and Promulgation of Implementation Plans and Designation 
of Areas for Air Quality Planning Purposes; Nevada; Wintertime 
Oxygenated Gasoline Rule; Vehicle Inspection and Maintenance Program; 
Redesignation of Truckee Meadows to Attainment for the Carbon Monoxide 
Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve certain submittals by the State of 
Nevada of revisions to the Nevada state implementation plan that are 
intended to provide for attainment and maintenance of the carbon 
monoxide national ambient air quality standard in the Truckee Meadows 
nonattainment area located within Washoe County, Nevada. These 
revisions include a local wintertime oxygenated gasoline rule, a 
``basic'' vehicle inspection and maintenance program (including a 
performance standard evaluation), current statutory provisions and 
State rules governing mobile sources, a maintenance plan and related 
motor vehicle emissions budgets. EPA is also proposing to approve 
Nevada's request to redesignate the Truckee Meadows carbon monoxide 
nonattainment area to attainment. Lastly, EPA is proposing to rescind a 
provision previously approved in error related to inspection and 
maintenance of vehicles operated on Federal installations. EPA proposes 
these actions pursuant to those provisions of the Clean Air Act that 
obligate the Agency to take action on submittals of revisions to state 
implementation plans and requests for redesignation. This proposed 
action is intended to make certain State and local measures and 
commitments related to attainment and maintenance of the carbon 
monoxide standard in Truckee Meadows federally enforceable as part of 
the Nevada state implementation plan.

DATE: Any comments on this proposal must arrive by February 6, 2008.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2007-0561, by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the on-line instructions for submitting comments.
    2. E-mail: [email protected].
    3. Mail or deliver: Eleanor Kaplan (AIR-2), U.S. Environmental 
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 
94105-3901.
    Instructions: Direct your comments to Docket ID No. EPA-R09-OAR-
2007-0561. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site 
is an ``anonymous access'' system, which means that EPA will not know 
your identity or contact information unless you provide it in the body 
of your comment. If you send e-mail directly to EPA, without going 
through http://www.regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of the comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other information, 
such as copyrighted material, will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically in http://www.regulations.gov or in hard copy at the 
Office of Air Planning, Environmental Protection Agency (EPA), Region 
IX, 75 Hawthorne Street, San Francisco, California. To inspect the hard 
copy materials, please schedule an appointment during normal business 
hours with the contact listed in the FOR FURTHER INFORMATION CONTACT 
section.

[[Page 1176]]


FOR FURTHER INFORMATION CONTACT: Eleanor Kaplan, EPA Region IX, (415) 
947-4147, [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,'' 
``us,'' and ``our'' refer to EPA. This supplementary information is 
organized as follows:

Table of Contents

I. Summary of Today's Proposed Action
II. Nature, Sources, and Health Effects of Carbon Monoxide
III. Introduction to Truckee Meadows, Washoe County, Nevada
IV. History of Carbon Monoxide Planning in Truckee Meadows
V. Nevada's Procedures for Adoption of these SIP Revisions
VI. Washoe County's Wintertime Oxygenated Fuel Requirements
VII. Nevada's Motor Vehicle Inspection and Maintenance (I/M) Program 
in Truckee Meadows
    A. Background Information
    B. Evaluation of the State's I/M Program in Truckee Meadows
VIII. Clean Air Act Requirements for Redesignation to Attainment
IX. Evaluation of the State's Redesignation Request for Truckee 
Meadows
    A. The Area Must Have Attained the Applicable NAAQS.
    B. The Area Must Have a Fully Approved SIP Under Section 110(k) 
of the CAA.
    C. The Area Must Show the Improvement in Air Quality Is Due to 
Permanent and Enforceable Emissions Reductions.
    D. The Area Must Have Met All Applicable Requirements Under 
Section 110 and Part D.
    1. Section 110 Requirements
    2. Part D Requirements
    E. The Area Must Have a Fully Approved Maintenance Plan Under 
CAA Section 175A.
    1. Attainment Inventory
    2. Maintenance Demonstration
    3. Monitoring Network
    4. Verification of Continued Attainment
    5. Contingency Plan
    6. Subsequent Maintenance Plan Revisions
    7. Motor Vehicle Emissions Budgets
    8. Conclusion
X. Proposed Action and Request for Comment
XI. Administrative Requirements

I. Summary of Today's Proposed Action

    Under section 110(k)(3) of the Clean Air Act, as amended in 1990 
(CAA or ``Act''), EPA is proposing to approve certain submittals of 
revisions to the Nevada state implementation plan (SIP) by the Nevada 
Division of Environmental Protection (NDEP). These revisions are 
intended to provide for attainment and maintenance of the carbon 
monoxide (CO) national ambient air quality standards (NAAQS) in the 
Truckee Meadows nonattainment area located within Washoe County, 
Nevada. The specific SIP revision submittals that we are proposing to 
approve are listed in the following table:

------------------------------------------------------------------------
                                                        State of Nevada
   Plan, plan element or rule      Adoption date(s)    submittal date(s)
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Washoe County District Board of   Originally adopted  Submitted on Apr.
 Health Regulations Governing      on Dec. 21, 1988    14, 1991;
 Air Quality Management, section   and amended on      resubmitted as
 040.095 (``Oxygen content of      Apr. 18, 1990;      amended on Nov.
 motor vehicle fuel'').            amended on Sept.    13, 1992; re-
                                   23, 1992; amended   submitted as
                                   on Sept. 22, 2005.  amended on Nov.
                                                       4, 2005.
State Implementation Plan for a   Regulations         June 3, 1994.
 Basic Program for the             adopted at
 Inspection and Maintenance of     various times by
 Motor Vehicles for the Truckee    the State
 Meadows Planning Area, Nevada     Environmental
 (June 1994).                      Commission and
                                   Department of
                                   Motor Vehicles
                                   but superseded by
                                   SIP revision
                                   submittal dated
                                   May 11, 2007, as
                                   listed below.
Basic I/M Performance Standard    Sept. 28, 2006....  Nov. 2, 2006.
 Evaluation.
Nevada Mobile Source SIP, Update  Regulations         May 11, 2007.
 of the Regulatory Element (May    adopted at
 11, 2007).                        various times by
                                   State
                                   Environmental
                                   Commission and
                                   Department of
                                   Motor Vehicles.
Redesignation Request and         Sept. 22, 2005....  Nov. 4, 2005.
 Maintenance Plan for the
 Truckee Meadows Carbon Monoxide
 Non-Attainment Area (September
 2005).
------------------------------------------------------------------------

    Specifically, we are proposing to approve NDEP's SIP revision 
submittal dated November 4, 2005 of the wintertime oxygenated gasoline 
rule as amended on September 22, 2005 by the Washoe County District 
Board of Health (``District'') and codified as District Regulations 
Governing Air Quality Management section 040.095 (``District rule 
040.095''). We are also proposing to approve the SIP revision submittal 
dated June 3, 1994 of the State Implementation Plan for a Basic Program 
for the Inspection and Maintenance of Motor Vehicles for the Truckee 
Meadows Planning Area, Nevada (June 1994) (``Basic I/M SIP''). In 
connection with the basic vehicle inspection and maintenance (I/M) 
program in Truckee Meadows, we are proposing to approve two subsequent 
SIP revision submittals: A ``basic'' I/M performance standard 
evaluation (``Basic I/M Performance Standard Evaluation'') submitted on 
November 2, 2006 and the Nevada Mobile Source SIP, Update of the 
Regulatory Element (May 11, 2007) (``Mobile Source SIP Update'') 
submitted on May 11, 2007. NDEP's Mobile Source SIP Update contains 
current I/M-related statutory provisions, regulations, and updated 
exhaust gas analyzer specifications.\1\ In so doing, we find that the 
above submittals fulfill the applicable requirements under section 110 
and part D (of title I) of the Act.
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    \1\ The statutory provisions and rules submitted by NDEP on May 
11, 2007 represent a comprehensive update to the regulatory portion 
of the State's mobile source SIP (excluding the rules establishing 
fuels specifications, alternative fuels programs for government 
vehicles, and local rules related to mobile sources), including the 
regulatory portion of the State's Truckee Meadows I/M SIP, which was 
last approved in 1984 (49 FR 44208, November 5, 1984), and the 
regulatory portion of the State's Las Vegas Valley I/M SIP, which 
was last approved in 2004 (69 FR 56351, September 21, 2004). The 
current submitted versions of the I/M-related statutory provisions 
and rules are not significantly different than the corresponding 
versions of the statutory provisions and rules approved in 2004 for 
the State's Las Vegas I/M program, and are consistent with the 
underlying assumptions used to develop the Las Vegas Valley 2005 CO 
Plan, which was approved by EPA on August 7, 2006 (71 FR 44587).
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    In connection with our proposed approval of the State's Basic I/M 
SIP, as supplemented and amended in submittals dated November 2, 2006 
and May 11, 2007, we are taking no action on submitted rule NAC 
445B.595(2), which extends the State's I/M requirements to motor 
vehicles operated on Federal installations located within I/M areas 
because the Federal government has not waived sovereign immunity in the 
context of vehicle I/M programs. Furthermore, we are proposing, under 
CAA section 110(k)(6), to rescind our previous, and erroneous, approval 
of NAC 445B.595(2) into the Nevada SIP in 2004, also on the grounds of 
sovereign immunity.
    Lastly, we are proposing to approve NDEP's SIP revision submittal 
(dated November 4, 2005) of the Redesignation

[[Page 1177]]

Request and Maintenance Plan for the Truckee Meadows Carbon Monoxide 
Non-Attainment Area (September 2005) (``Truckee Meadows CO Maintenance 
Plan''), adopted by the District on September 22, 2005, and to approve 
NDEP's request for redesignation of the Truckee Meadows CO 
nonattainment area to attainment. In connection with our proposed 
approval of the Truckee Meadows CO Maintenance Plan, we are approving 
certain commitments by the District, contingency provisions, and CO 
motor vehicle emissions budgets for years 2010 and 2016 for the 
purposes of transportation conformity. In so doing, we find that the 
Truckee Meadows CO Maintenance Plan meets the requirements for 
maintenance plans under section 175A of the Act. In connection with our 
proposed approval of NDEP's redesignation request, we find that the 
State has fulfilled the criteria for redesignation of the Truckee 
Meadows CO nonattainment area from nonattainment to attainment as set 
forth in section 107(d)(3)(E).\2\
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    \2\ The Truckee Meadows CO Maintenance Plan relies upon three 
principal State or local control measures: The District's wintertime 
oxygenated gasoline rule, the State's vehicle inspection and 
maintenance (I/M) program, and the District's residential wood 
combustion rule. We are proposing to approve the first and second of 
the three measures in this document. We approved the third measure 
(the residential wood combustion rule) in a separate document 
earlier this year. See 72 FR 33397 (June 18, 2007). We will not 
finalize the proposed approval of the redesignation request until we 
take final action approving the oxygenated gasoline rule and the I/M 
program. Also, for reasons set forth in this document, we find that 
we need not fully approve either the County's nonattainment new 
source review rules or the County's transportation conformity rules 
as a pre-condition to redesignation of Truckee Meadows to attainment 
for the CO NAAQS.
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II. Nature, Sources, and Health Effects of Carbon Monoxide

    Carbon monoxide (CO) is a colorless and odorless gas, formed when 
carbon in fuel is not burned completely. It is a component of motor 
vehicle exhaust, which contributes about 60 percent of all CO emissions 
nationwide. Nonroad vehicles account for the remaining CO emissions 
from transportation sources. High concentrations of CO generally occur 
in areas with heavy traffic congestion. Peak CO concentrations 
typically occur during the colder months of the year when CO automotive 
emissions are greater and nighttime inversion conditions (where air 
pollutants are trapped near the ground beneath a layer of warm air) are 
more frequent.
    CO enters the bloodstream through the lungs and reduces oxygen 
delivery to the body's organs and tissues. The health threat from 
levels of CO sometimes found in the ambient air is most serious for 
those who suffer from cardiovascular disease, such as angina pectoris. 
At much higher levels of exposure not commonly found in ambient air, CO 
can be poisonous, and even healthy individuals may be affected. Visual 
impairment, reduced work capacity, reduced manual dexterity, poor 
learning ability, and difficulty in performing complex tasks are all 
associated with exposure to elevated CO levels.

III. Introduction to Truckee Meadows, Washoe County, Nevada

    Truckee Meadows lies in the far southern portion of Washoe County. 
Washoe County lies in the northwestern portion of the State of Nevada 
and is bordered by the State of California to the west and the State of 
Oregon to the north. Within the State of Nevada, the counties of 
Humboldt, Pershing, Churchill, Lyon, and Storey and the city of Carson 
City bound Washoe County to the east and south. Located at an average 
elevation of 4,500 feet above sea level, Truckee Meadows lies in the 
rain shadow of the Sierra Nevada mountain range located to the west. 
The boundaries of Truckee Meadows are defined as equal to the State's 
hydrographic area 87, and encompass a land area of 
approximately 200 square miles. It is surrounded by mountain ranges, 
which can lead to persistent wintertime temperature inversions where a 
layer of cold air is trapped in the valley. Warmer air above the 
inversion acts as a lid, containing and concentrating air pollutants 
emitted at ground-level.
    Truckee Meadows has experienced rapid growth in population, with an 
increase in population from approximately 138,000 in 1977 to 
approximately 359,000 in 2002, an increase of 160 percent over that 25-
year period. The two major cities are Reno and Sparks.
    Air quality planning and monitoring in Truckee Meadows is the 
responsibility of the District, which administers air quality programs 
in Washoe County through the District Health Department's Air Quality 
Management Division (``District AQMD''). The State Environmental 
Commission and the Nevada Department of Motor Vehicles are responsible 
for the motor vehicle I/M program in Truckee Meadows.

IV. History of Carbon Monoxide Planning in Truckee Meadows

    On April 30, 1971 (36 FR 8186), pursuant to section 109 of the 
Clean Air Act, as amended in 1970, EPA promulgated NAAQS for six 
criteria pollutants, including CO. EPA set the NAAQS for CO at 35 parts 
per million (ppm), one-hour average, and 9 ppm, eight-hour average. The 
CO NAAQS remain the same today.
    Under section 110 of the Clean Air Amendments of 1970, States were 
required to adopt and submit plans that provide for implementation, 
maintenance, and enforcement of the NAAQS. These original plans, 
generally submitted and approved in the early 1970's, are referred to 
as state implementation plans (SIPs). Incremental changes to SIPs that 
a State submits, such as new or amended rules, attainment plans, and 
maintenance plans, are referred to as ``SIP revisions.''
    Generally, SIPs were to provide for attainment of the NAAQS within 
three years of EPA approval of the plan. However, many parts of the 
country did not attain the NAAQS within the statutory period. In 
response, Congress amended the Act in 1977 to establish a new approach, 
based on area designations, for attaining the NAAQS, and on March 3, 
1978 (43 FR 8962), under paragraph 107(d)(2) of the Act as amended in 
1977, EPA promulgated attainment status designations for all States. 
EPA designated Truckee Meadows (with boundaries defined by reference to 
State hydrographic area 87) as a nonattainment area for the CO 
NAAQS. See 43 FR 8962, at 9013 (March 3, 1978).
    The Act, as amended in 1977, required States to revise their SIPs 
by January 1979 for all designated nonattainment areas. The CO 
attainment plan for Truckee Meadows that was developed in the late 
1970's and early 1980's relied upon implementation of such control 
measures as a vehicle inspection and maintenance (I/M) program, road 
improvements, traffic controls, and areawide ride-sharing programs to 
attain the CO NAAQS by the statutory deadline of 1982. In 1981, we 
approved most of the elements of the CO plan for Truckee Meadows and 
conditionally approved other elements. See 46 FR 21758 (April 14, 
1981). In 1982, we revoked the remaining conditions resulting in full 
approval of the CO plan. See 47 FR 15790 (April 13, 1982).
    Truckee Meadows did not attain the CO NAAQS by the 1982 attainment 
deadline, and thus, the District revised the CO attainment plan and 
requested an extension in the attainment date to 1987. In 1984, we 
approved parts of the revised CO attainment plan but deferred action on 
certain other parts based on our conclusion that the emissions 
reduction credit taken in the revised CO

[[Page 1178]]

plan for one of the principal control measures relied upon to show 
attainment, residential wood burning control, was not sufficiently 
documented. See 49 FR 31683 (August 8, 1984).
    Like many other areas of the country, Truckee Meadows did not 
attain the CO NAAQS by the 1987 attainment date and remained 
nonattainment at the time of the 1990 Clean Air Act Amendments. Under 
section 107(d)(1)(C) of the 1990 Amended Act, the CO nonattainment 
designation in Truckee Meadows was brought forward by operation of law. 
Based on a design value of 9.8 ppm (eight-hour average), we further 
classified Truckee Meadows as a ``moderate'' CO nonattainment area for 
the CO NAAQS with an attainment date of (no later than) December 31, 
1995. See 56 FR 56694, at 56798 (November 6, 1991) and CAA section 
186(a)(1). A review of the data collected in 1994 and 1995 provided EPA 
with the basis to determine that Truckee Meadows in fact attained the 
CO NAAQS by the 1995 attainment date. See 70 FR 22803 (May 3, 2005).
    In addition to extending the deadline for attainment of the CO 
NAAQS, the Act, as amended in 1990, also established new requirements 
for CO nonattainment areas that vary depending upon the severity of the 
problem. The additional requirements for ``moderate'' CO nonattainment 
areas are set forth in sections 172, 176, 187, and 211 of the Act, and 
include such elements as updated and periodic emission inventories, 
upgraded vehicle I/M programs, conformity requirements, and wintertime 
oxygenated gasoline requirements. To address these requirements, the 
District AQMD developed new plans and adopted new or amended rules, the 
State revised the vehicle I/M program, and NDEP submitted the plans, 
rules and revised vehicle I/M program to EPA as revisions to the 
Truckee Meadows portion of the Nevada SIP. In today's action, we are 
proposing to approve a number of elements contained in these 
submittals, including the wintertime oxygenated gasoline rule and an 
upgraded vehicle I/M program. In a separate action, we approved the 
District's residential wood combustion rule. See 72 FR 33397 (June 18, 
2007).
    Section 107(d)(3)(D) of the Act allows a State to request 
redesignation of an air quality planning area. On November 4, 2005, 
NDEP submitted such a request for the Truckee Meadows CO nonattainment 
area and submitted the Truckee Meadows CO Maintenance Plan to EPA for 
approval as a revision to the Nevada SIP. The purpose of the Truckee 
Meadows CO Maintenance Plan is to provide for maintenance of the CO 
NAAQS in the Truckee Meadows area for ten years following 
redesignation. In this action, we are proposing to approve the Truckee 
Meadows CO Maintenance Plan and proposing to approve the request for 
redesignation of Truckee Meadows from nonattainment to attainment for 
the CO NAAQS.

V. Nevada's Procedures for Adoption of These SIP Revisions

    Section 110(l) of the Act requires States to provide reasonable 
notice and public hearing prior to adoption of SIP revisions. In this 
action, we are proposing to approve the following SIP revisions: the 
wintertime oxygenated gasoline rule (District rule 040.095), submitted 
on November 4, 2005; the Basic I/M SIP submitted on June 3, 1994, the 
Basic I/M Performance Standard Evaluation submitted on November 2, 
2006, and current I/M-related statutory provisions and regulations and 
updated exhaust gas analyzer specifications submitted on May 11, 2007; 
and the Truckee Meadows CO Maintenance Plan submitted on November 4, 
2005.
    Each of the SIP revision submittals cited above contains evidence 
that reasonable notice of a public hearing was provided to the public 
(via newspaper advertisement) and that a public hearing was conducted 
prior to adoption by the District.\3\ Following adoption, the District 
forwarded these SIP revisions to NDEP, the Governor of Nevada's 
designee for submitting SIP revisions and redesignation requests to 
EPA, and NDEP then submitted the SIP revisions to EPA for approval. We 
find that each of the SIP revisions cited above satisfies the 
procedural requirements of section 110(l) of the Act for revising SIPs.
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    \3\ In the case of the Basic I/M SIP and the May 11, 2007 SIP 
submittal of current I/M statutory provisions and regulations, NDEP 
provided evidence of reasonable notice and public hearing for the 
various recent amendments to the I/M regulations. The submittal of 
the current I/M-related statutory provisions and regulations 
supersede the corresponding provisions and regulations submitted in 
1994 as part of the Basic I/M SIP.
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VI. Washoe County's Wintertime Oxygenated Fuel Requirements

    Under section 211(m) of the Act, as amended in 1990, States with CO 
nonattainment areas with design values of 9.5 ppm or greater (eight-
hour average) are required to submit an oxygenated gasoline program as 
a SIP revision. The design value for Truckee Meadows based on data 
collected during 1988-1989 (and recorded in EPA's Air Quality System 
database) was 9.8 ppm, eight-hour average, and thus, the State of 
Nevada is required to submit an oxygenated gasoline program for the 
Truckee Meadows area as a SIP revision.
    Section 211(m) of the 1990 Amended Act also specifies the minimum 
geographic extent for such an oxygenated gasoline program (larger of 
the Consolidated Metropolitan Statistical Area (CMSA) or MSA if the 
area is not in a CMSA), the minimum oxygen content (2.7% by weight), 
and the applicable portion of the year in which the program must be 
implemented (as determined by EPA). EPA determined that the applicable 
control period for the purposes of an oxygenated gasoline program in 
Truckee Meadows area is October 1 through January 31. See 57 FR 47853 
(October 20, 1992). EPA labeling requirements for oxygenated gasoline 
are found at 40 CFR 80.35.
    The District first adopted an oxygenated gasoline rule (i.e., 
District rule 040.095 ``Oxygen Content of Motor Vehicle Fuel'') on 
December 21, 1988, and implementation of the rule began in December 
1989. This rule applied throughout Washoe County and required a minimum 
gasoline oxygen content of 2% by weight during a control period defined 
as December 1 through February 15. The District modified the oxygenated 
gasoline rule on April 18, 1990 to extend the control period to 
November 1 through the end of February. The April 18, 1990 version of 
the District's oxygenated gasoline rule was included in a SIP revision 
submittal from the Governor to EPA dated April 15, 1991. Meanwhile, 
five months prior to this SIP submittal, the Clean Air Act Amendments 
of 1990 were enacted, and the amended Act established new SIP 
requirements, discussed above, for oxygenated gasoline rules in CO 
nonattainment areas.
    In response to the new requirements, the District again amended the 
oxygenated gasoline rule (on September 23, 1992) to increase the 
minimum oxygen content requirement to 2.7% and to extend the control 
period to October 1 through January 31. NDEP submitted this revised 
rule to EPA as a SIP revision on November 13, 1992 thereby superseding 
the April 15, 1991 submittal of the previous version of the rule. EPA 
did not take action on the November 13, 1992 submittal of the 
District's oxygenated gasoline rule. In the intervening years, the 
District has twice amended the oxygenated gasoline rule: on October 25, 
2000, the District phased-out use of methyl tertiary butyl ether (MTBE) 
as the oxygenate to meet the oxygen content requirement, and on

[[Page 1179]]

September 22, 2005, the District clarified labeling requirements 
consistent with related EPA requirements at 40 CFR 80.35 and made 
certain other changes to improve enforceability. The September 22, 2005 
version of the wintertime oxygenated gasoline rule was submitted as a 
SIP revision by NDEP on November 4, 2005, thereby superseding the 
November 13, 1992 submittal of the rule.
    We have evaluated the State's November 4, 2005 submittal of the 
wintertime oxygenated gasoline rule (District rule 040.095) and find 
that it meets the applicable statutory and regulatory requirements by 
establishing the necessary minimum oxygen content requirement (2.7% by 
weight) in the applicable geographic area (i.e., Reno MSA, which 
consists of Washoe County, Nevada) for the appropriate control period 
(October 1 through January 31) and also provides for the necessary 
labeling of gasoline dispensers, and for recordkeeping, sampling and 
for enforceability. The District AQMD enforces the oxygenated gasoline 
rule by obtaining fuel samples from retail gasoline distributors, which 
are then analyzed by the State of Nevada, Department of Agriculture. 
Each year, the District AQMD publishes a report summarizing the results 
of the oxygenated gasoline program for the prior year. A review of 
these annual reports reveals near-full compliance with the requirements 
of the rule.
    For the above reasons, we find that District rule 040.095 (``Oxygen 
Content of Motor Vehicle Fuel''), as amended by the District on 
September 22, 2005, and submitted by NDEP to EPA on November 4, 2005, 
fulfills the requirements of section 211(m) of the Act and applicable 
EPA regulations, and, based on that finding, we propose approval of the 
rule as a revision to the Nevada SIP.

VII. Nevada's Motor Vehicle Inspection and Maintenance (I/M) Program in 
Truckee Meadows

A. Background Information

    As noted in section IV of this document, EPA promulgated area 
designations for all states pursuant to the Act, as amended in 1977. 
See 43 FR 8962 (March 3, 1978). The Truckee Meadows area of Nevada was 
designated nonattainment for the NAAQS for CO and photochemical 
oxidant.\4\
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    \4\ In 1979, EPA established a new NAAQS for ozone to replace 
the oxidant standard. In 1981, EPA changed the designation for 
Truckee Meadows from nonattainment for oxidant to attainment for 
ozone. See 46 FR 37896 (July 23, 1981).
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    During the late 1970's, the Nevada Legislature established the 
first motor vehicle I/M program for Truckee Meadows, and the Nevada 
Department of Motor Vehicles (DMV) began to implement this initial 
program in 1978. Nevada's motor vehicle I/M program is required in two 
counties, Washoe and Clark.
    Originally, I/M requirements were triggered only by a change in 
vehicle ownership, but by 1983, I/M in Truckee Meadows had been 
expanded to apply annually upon vehicle registration or upon 
registration renewal. Implementation of a mandatory annual I/M program 
in Truckee Meadows was not a requirement of the 1977 amended Act but 
was one of the control measures selected by Washoe County and the State 
of Nevada to reduce CO emissions in that area.
    The 1980's-era program in Truckee Meadows excluded certain types of 
vehicles including, among others, new cars, vehicles over 5,000 pounds 
unladen weight, and motorcycles. Waivers were allowed in certain cases 
for repairs costing over $100 in labor plus parts. For more information 
on this early I/M program in Truckee Meadows and related EPA rulemaking 
actions, see 44 FR 26763 (May 7, 1979), 45 FR 59334 (September 9, 
1980), 46 FR 21758 (April 14, 1981), 48 FR 5071 (February 3, 1983), 49 
FR 6386 (February 21, 1984), and 49 FR 44208 (November 5, 1984).
    As noted in section IV of this document, under the Clean Air Act 
Amendments of 1990, EPA classified Truckee Meadows as a ``moderate'' CO 
nonattainment area based on a design value of 9.8 ppm. Under section 
187(a) of the Act, as amended in 1990, States with ``moderate'' CO 
nonattainment areas (with design values less than 12.7 ppm) were 
required to continue implementation of existing I/M programs and to 
submit I/M SIP revisions to meet the ``basic'' I/M performance standard 
and other new related requirements promulgated by EPA subsequent to the 
1990 Act Amendments. See CAA section 187(a)(4).\5\ On January 15, 1993, 
EPA made a finding of failure to submit the required ``basic'' I/M SIP 
revision for Truckee Meadows. On November 15, 1993, the NDEP submitted 
a ``basic'' I/M SIP revision for Truckee Meadows, but by letter dated 
April 13, 1994, EPA made a finding of incompleteness for the November 
15, 1993 SIP revision submittal.
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    \5\ In 1991, all of Washoe County was designated as a 
``marginal'' nonattainment area for the 1-hour ozone NAAQS. See 56 
FR at 56798 (November 6, 1991). For most such areas, a corrected and 
upgraded ``basic'' I/M program was required under CAA section 
182(a)(2)(B); however, the Washoe County ``marginal'' ozone 
nonattainment area was not subject to the I/M requirement because 
the EPA-approved I/M program for Truckee Meadows (at the time of 
designation as a marginal ozone nonattainment area) did not include 
hydrocarbon emissions testing (but only CO emissions testing), and 
thus the I/M program was not part of the applicable ozone SIP. The 
State of Nevada deleted hydrocarbon emissions testing from the I/M 
program in 1983, and EPA approved the related changes in 1984. See 
49 FR 6386 (February 21, 1984) and 49 FR 44208 (November 5, 1984). 
Hydrocarbon emissions testing requirements have since been restored 
to the program and are a part of the current I/M program that is the 
subject of today's proposal.
---------------------------------------------------------------------------

    On June 3, 1994, NDEP submitted the State Implementation Plan for a 
Basic Program for the Inspection and Maintenance of Motor Vehicles for 
the Truckee Meadows Planning Area, Nevada (June 1994) (``Basic I/M 
SIP''). By letter dated January 31, 1995, EPA found the Basic I/M SIP 
to be complete. The Basic I/M SIP includes I/M-related statutes and 
rules, as well as various other documents to satisfy EPA I/M 
requirements, but does not include the required performance standard 
evaluation.
    On November 2, 2006, NDEP submitted a SIP revision containing a 
performance standard evaluation of the basic I/M program for motor 
vehicles in the Truckee Meadows planning area (``Basic I/M Performance 
Standard Evaluation'') thereby fulfilling a requirement not addressed 
in the Basic I/M SIP. The November 2, 2006 SIP revision submittal 
contained the performance standard evaluation along with motor vehicle 
emissions modeling documentation and evidence of public process and 
adoption by the Washoe County District Board of Health on September 28, 
2006.
    Since the submittal of the Basic I/M SIP in 1994, the State of 
Nevada has revised many of the I/M-related statutory provisions and 
regulations and has established new specifications for exhaust gas 
analyzers. On May 11, 2007, NDEP submitted a SIP revision entitled 
Nevada Mobile Source SIP, Update of the Regulatory Element (May 11, 
2007) (``Mobile Source SIP Update''), which includes current I/M-
related statutory provisions and regulations as well as updated exhaust 
gas analyzer specifications. The current Nevada I/M statutory 
provisions and rules submitted by NDEP on May 11, 2007 are as follows:
     Nevada Revised Statutes (2005), chapter 365: section 
365.060; chapter 366, section 366.060; chapter 445B, sections 445B.210, 
445B.700-845 (excluding NRS 445B.776, 445B.777, and 445B.778); chapter 
481, sections

[[Page 1180]]

481.019-481.087; chapter 482, sections 482.029, 482.155-482.290, 
482.385, 482.461, and 482.565; and chapter 484, sections 484.101, 
484.644 and 484.6441;
     Nevada Administrative Code (NAC), chapter 445B (January 
2007 revision by the Legislative Counsel Bureau), sections 445B.400 to 
445B.735.\6\
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    \6\ As explained below in the subsection entitled ``Vehicle 
coverage (40 CFR 51.356), we are taking no action on subsection (2) 
of NAC section 445B.595.
---------------------------------------------------------------------------

    The Mobile Source SIP Update supersedes the corresponding materials 
included in the Basic I/M SIP submitted in 1994 and represents a 
comprehensive update to the regulatory portion of the State's mobile 
source SIP (excluding the rules establishing fuels specifications, 
alternative fuels programs for government vehicles, and any local rules 
related to mobile sources), including the regulatory portion of the 
Truckee Meadows I/M SIP, which was last approved in 1984 (see 49 FR 
44208, November 5, 1984), and the regulatory portion of the Las Vegas 
Valley I/M SIP, which was last approved in 2004 (see 69 FR 56351, 
September 21, 2004).

B. Evaluation of the State's I/M Program in Truckee Meadows

    This subsection summarizes the applicable requirements of EPA's I/M 
requirements found in 40 CFR part 51, subpart S (``Inspection/
Maintenance Program Requirements''), which is referred to herein as the 
``Federal I/M rule,'' and discusses whether the elements of the State's 
``basic'' vehicle I/M program for Truckee Meadows as contained in SIP 
revisions submitted on June 3, 1994, November 2, 2006, and May 11, 2007 
comply with Federal requirements.
Applicability (40 CFR 51.350)
    Under the Federal I/M rule, any area classified as marginal ozone 
nonattainment or moderate CO nonattainment with a design value of 12.7 
parts per million (ppm) or less shall continue operating I/M programs 
that were part of an approved SIP as of November 15, 1990, and shall 
update those programs an necessary to meet the basic I/M program 
requirements as set forth in part 51, subpart S. See 40 CFR 
51.350(a)(3). This requirement applies to Truckee Meadows because the 
CO SIP for Truckee Meadows, as of November 15, 1990, included an I/M 
program and because, under the Act as amended in 1990, the Truckee 
Meadows CO nonattainment area was classified as ``moderate'' (with a 
design value of 12.7 ppm or less).
    I/M programs are nominally required to cover at least the entire 
urbanized area, based on the 1990 census. See 40 CFR 51.350(b)(2). The 
State's legal authority necessary to establish program boundaries is 
contained in Nevada Revised Statutes (NRS) 445B.770. The applicable 
area for the basic I/M program is the urbanized area within ``Truckee 
Meadows,'' which is defined by reference to the State's hydrographic 
area 87. Under Nevada Administrative Code (NAC) 445B.594, the 
State's basic I/M program applies within all of Washoe County, except 
for residents that live outside of the urbanized area and are serviced 
by one of the following post offices: (1) Crystal Bay, (2) Empire; (3) 
Incline Village, (4) Nixon, (5) Sutcliffe, or (6) Wadsworth. This is 
acceptable.
    The Federal I/M rule requires a State I/M program to remain in 
operation even if the area is redesignated to attainment until the 
State submits and EPA approves a SIP revision which convincingly 
demonstrates that the area can maintain the relevant standard without 
benefit of the emission reductions attributable to the I/M program. See 
40 CFR 51.350(c). The statutory authority for the ``basic'' I/M program 
in Truckee Meadows contains no automatic sunset provision and thus is 
consistent with EPA requirements.
Basic I/M Performance Standard (40 CFR 51.352)
    ``Basic'' I/M programs must be designed and implemented to meet or 
exceed a minimum performance standard, which is expressed as emission 
levels achieved from highway mobile sources as a result of the program. 
Areas are required to meet the performance standard for the pollutants 
which cause them to be subject to I/M requirements. The performance 
standard is based on the model I/M program inputs and local 
characteristics, such as vehicle mix and local fuel controls, and 
emission levels and emission reduction benefits must be calculated 
using the most recent version of EPA's mobile source emission factor 
model (MOBILE).
    The Federal model ``basic'' I/M program has the following 
characteristics: (1) Network type (centralized testing); (2) Start date 
(for areas with existing I/M programs, 1983); (3) Test frequency 
(annual testing); (4) Model year coverage (testing of model year (MY) 
1968 and later vehicles); (5) Vehicle type coverage (light-duty 
vehicles (excluding trucks)); (6) Exhaust emission test type (idle 
test); (7) Emission standards (no weaker than specified in 40 CFR part 
85, subpart W); (8) Emission control device inspections (none); (9) 
Stringency (a 20% emission test failure rate among pre-1981 model year 
vehicles); (10) Waiver rate (0% waiver rate); (11) Compliance rate (a 
100% compliance rate); and (12) Evaluation date (1996 for CO 
nonattainment areas). Also, the basic I/M performance standard includes 
inspection of all 1996 and later light-duty vehicles equipped with 
certified on-board diagnostic (OBD) systems,\7\ and repair of 
malfunctions or system deterioration identified by or affecting OBD 
systems.
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    \7\ A certified OBD system consists of a computer, which 
performs checks of a number of different vehicle systems for 
malfunctions or deterioration, which could result in the vehicle 
exceeding its emissions standards, and a malfunction indicator 
light, which is required to be illuminated when the system detects a 
problem.
---------------------------------------------------------------------------

    The Nevada basic I/M program within Truckee Meadows has the 
following characteristics: (1) Network type (decentralized, test-and-
repair); (2) Start date (1983); (3) Test frequency (annual testing); 
(4) Model year coverage (testing of MY 1968 and later vehicles); (5) 
Vehicle type coverage [light-duty (i.e., less than 8,500 pounds gross 
vehicle weight rating (GVWR)) vehicles (both gasoline- and diesel-
powered) and heavy-duty gasoline-powered vehicles]; (6) Exhaust 
emission test type (``two-speed idle'' test (i.e, at 2,500 revolutions 
per minute (rpm) and at idle) for light-duty gasoline-powered vehicles 
from 1968 through 1995 and heavy-duty gasoline-powered vehicles 1968 
and newer; 1968 and newer light-duty diesel-powered vehicles are 
inspected for exhaust opacity on a dynamometer (i.e., steady state 
using load mode)); (7) Emission standards (based on those specified in 
40 CFR part 85, subpart W); (8) Emission control device inspections 
(for 1968 and newer vehicles, a gas cap check; for gasoline-powered 
vehicles newer than 1980, the anti-tampering program (ATP) checks for 
air pump disablement, catalyst removal, fuel inlet restrictor 
disablement, exhaust gas recirculation (EGR) system disablement, 
evaporative system disablement, and positive crankcase ventilation 
(PCV) system disablement; for diesel-powered vehicles, visual tampering 
inspection is based on manufacturer's specifications); (9) Stringency 
(21% based on 1996 data); (10) Waiver rate (4% for pre-1981 and 3% for 
1981 and newer based on 1996 data); (11) Compliance rate (96%); and 
(12) Evaluation date (year 1996). The State's basic I/M program 
includes inspection of all 1996 and newer light-duty gasoline-powered 
vehicles equipped with certified on-board diagnostic (OBD) systems. 
Repair of

[[Page 1181]]

malfunctions or system deterioration is identified for emission 
compliance through the OBD system.
    As noted above, the Basic I/M SIP submitted in 1994 does not 
include a performance standard evaluation, but NDEP submitted the 
required evaluation (referred to herein as the ``Basic I/M Performance 
Standard Evaluation'') to EPA for approval on November 2, 2006. 
District AQMD prepared this evaluation using the latest available 
version of MOBILE (MOBILE6.2.03). District AQMD used the various inputs 
for EPA's ``basic'' model program and the State's basic I/M program for 
Truckee Meadows as described above to estimate the composite CO 
emission rate in year 1996 of the vehicle fleet in Truckee Meadows 
under three scenarios: (1) no I/M program, (2) EPA's basic model 
program, and (3) the State's basic I/M program for Truckee Meadows. 
District AQMD assumed 50% effectiveness for the State's basic I/M 
program in Truckee Meadows to account for the decentralized, test-and-
repair nature of the I/M program.
    A comparison of the MOBILE6.2.03-based CO emissions rates for these 
three scenarios shows that EPA's basic model program would have reduced 
composite CO emissions by 8.9% (relative to the no I/M scenario) and 
that the State's basic I/M program for Truckee Meadows reduced the 
emissions rate by 9.5% (once again, relative to the no I/M scenario). 
We find that District AQMD used the appropriate model and reasonable 
methods and assumptions in developing the CO emission rates for the 
performance standard evaluation. Based on this finding and because the 
results of the evaluation show that State's basic I/M program achieves 
equivalent or greater reductions in the CO emissions rate as compared 
to EPA's basic model program, we find that the State's basic I/M 
program in Truckee Meadows meets the performance standard requirement 
under 40 CFR 51.352.
Network Type and Program Evaluation (40 CFR 51.353)
    State law provides for a decentralized (i.e., privately-owned but 
licensed by the State), test-and-repair network for 1968 and newer 
gasoline-powered autos and trucks.\8\ The network includes different 
types of test-and-repair stations. State law differentiates between two 
types of test-and-repair stations: (1) Test stations that are allowed 
to do only specific types of repairs (such as oil changes, replacement 
of oil or air filters, and servicing of the fuel injection system) but 
are generally not allowed to perform repairs that affect exhaust 
emissions and (2) test stations that are allowed to do more extensive 
repairs. The former are referred to as ``authorized inspection 
stations'' and the latter are referred to as ``authorized stations.'' 
NAC sections 445B.460 through 445B.480 specify requirements for 
facilities to obtain licenses as authorized test stations or authorized 
stations. For the purposes of the performance standard evaluation, 
Washoe County assumed 50% effectiveness for the program based on the 
decentralized, test-and-repair nature of the network. The 50% 
effectiveness value is the default value in MOBILE for such networks 
and is acceptable. We find that the State's I/M testing network for 
Truckee Meadows is adequately described in the State's I/M submittals, 
that the State has sufficient legal authority to enforce the 
requirements that must be met for stations to obtain and retain 
licenses as authorized inspection stations or as authorized stations, 
and that the network has been adequately modeled for performance 
standard purposes, and thus the requirements of 40 CFR 51.353 are 
satisfied.
---------------------------------------------------------------------------

    \8\ Under the Nevada I/M program, light-duty diesel-powered 
motor vehicles registered in the applicable portions of Washoe 
County and Clark County are also subject to annual inspections, 
which include a tampering inspection and an opacity test.
---------------------------------------------------------------------------

    We note that the program evaluation required under 40 CFR 51.353(c) 
applies to ``enhanced'' I/M programs, and because Truckee Meadows is 
subject only to the ``basic'' I/M program requirements, the program 
evaluation requirement under 40 CFR 51.353(c) does not apply.
Adequate Tools and Resources (40 CFR 51.354)
    The Federal I/M rule requires the state to demonstrate that there 
is adequate funding of the program functions including quality 
assurance, data analysis and reporting, the holding of hearings and 
adjudication of cases. The state must also demonstrate that sufficient 
personnel have been employed to effectively carry out the duties 
related to the program and that equipment necessary to achieve the 
objectives of the program have been acquired.
    Nevada law establishes annual fees to cover costs associated with 
implementation, administration and operation of the I/M program. See 
NRS 445B.830. The fees must be paid to the DMV and accounted for in the 
pollution control account, which is created in the Nevada general fund. 
The 1994 Truckee Meadows I/M SIP notes that the basic I/M program in 
Truckee Meadows is an update to existing program whose funding has long 
been established. To illustrate how the funds paid to DMV are allocated 
to provide for employee salaries, the Basic I/M SIP includes a copy of 
the budget for the program, as approved by the 67th Session of the 
Nevada Legislature and the Governor, showing provisions for personnel 
sufficient to meet the oversight requirements of the program for fiscal 
year 1994. See appendix 3 of the Basic I/M SIP. EPA believes 
the State's I/M program plan for tools and resources is acceptable.
Test Frequency and Convenience (40 CFR 51.355)
    The performance standards for I/M programs assume an annual test 
frequency, but under the Federal I/M rule, other schedules may be 
approved if the required emission targets are achieved. Also, under the 
Federal I/M rule, the SIP must 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.
    Nevada's motor vehicle I/M program is registration-enforced in the 
two affected counties (i.e., Washoe and Clark) and is tracked by 
continuing annual vehicle registration. Under NRS 482.206, vehicle 
registration must be renewed annually, and under NAC 445B.594, persons 
who are registering or reregistering their vehicle in Truckee Meadows 
(except for new vehicles) must provide evidence of compliance (with the 
emission inspection) as part of the annual registration process. New 
vehicles are exempt from testing until the third registration cycle. 
See NAC 445B.592.
    The DMV has authority under NRS 445B.798 to require proof of 
compliance with the emission standards after a vehicle has been cited 
for needing mechanical repair or for a smoking vehicle. Nevada law 
thereby provides for out-of-cycle emission testing for high-emitting 
vehicles. Under NRS 482.461, cancellation of registration can result if 
the vehicle failing a test conducted under NRS 445B.798 has not been 
repaired as required.
    On May 11, 2007, NDEP submitted all of the current versions of the 
statutory provisions and rules cited above for approval into the Nevada 
SIP. EPA believes these elements meet the requirements of the Federal 
I/M rule.
Vehicle Coverage (40 CFR 51.356)
    The Federal model ``basic'' I/M program against which State 
programs are compared assumes coverage of all

[[Page 1182]]

1968 and newer model year (MY) ``light-duty'' vehicles (i.e., up to 
8,500 pounds GVWR) and includes vehicles operating on all fuel types. 
The Federal ``basic'' I/M program does not assume coverage of light-
duty trucks. Other levels of coverage may be approved if the necessary 
emission reductions are achieved.
    Under Nevada's basic I/M program, the term ``light-duty motor 
vehicles'' refers to passenger cars and trucks up to 8,500 pounds GVWR; 
``heavy-duty motor vehicles'' refers to vehicles of 8,500 pounds GVWR 
or more. Nevada's basic I/M program is more inclusive than required 
under the Federal I/M rule in some ways and less inclusive in others. 
For instance, the program is more inclusive in that, as mentioned 
above, it requires all 1968 and newer heavy-duty gasoline-powered 
vehicles to be tested annually in addition to light-duty gasoline-
powered vehicles. On the other hand, Nevada's basic I/M program 
provides certain exemptions not included in the model program, such as 
the exemption for new vehicles, which are not emissions-tested until 
the third registration cycle (but still must be registered or re-
registered). Other minor exemptions are set forth in NAC 445B.592 (such 
as motorcycles and motor vehicles permanently converted from gasoline 
to propane, compressed natural gas, methane or butane as a fuel). The 
Basic I/M Performance Standard Evaluation submitted by NDEP as a SIP 
revision on November 2, 2006 takes these exemptions into account.
    Under the Nevada program, light-duty diesel-powered vehicles, 1968 
and newer, are also subject to annual registration requirements and 
certain emissions-related requirements but are not subject to the 
emissions testing procedures that apply to gasoline-powered vehicles. 
In addition, the emissions evaluation for the State's I/M program takes 
no specific credit for inspection and maintenance of diesel-powered 
vehicles.
    EPA believes that Nevada's ``basic'' I/M program adequately 
identifies and accounts for the vehicles covered by the program and 
thereby meets the requirements of the Federal I/M rule under 40 CFR 
51.356.
    The Federal I/M rule requires that vehicles operated on Federal 
installations located within an I/M program area be tested regardless 
of whether the vehicles are registered in the state or local I/M area. 
See 40 CFR 51.356(a)(4). However, we are not requiring states to 
implement 40 CFR 51.356(a)(4) 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 approving nor disapproving the specific 
requirements which apply to Federal facilities at this time. 
Specifically, we are taking no action on submitted rule NAC 
445B.595(2), which extends the State's I/M requirements to motor 
vehicles operated on Federal installations located within I/M areas. We 
are also proposing under CAA section 110(k)(6), which authorizes EPA to 
correct errors in SIP actions, to rescind our previous approval of NAC 
445B.595(2) into the Nevada SIP on grounds of sovereign immunity. We 
approved NAC 445B.595(2) as part of our 2004 approval of the State of 
Nevada's I/M program for Las Vegas and Boulder City.
Test Procedures and Standards (40 CFR 51.357)
    The Federal I/M rule requires that states establish written test 
procedures and pass/fail standards to be followed for each model year 
and vehicle type included in the program. The required test procedures 
are specified in 40 CFR 51.357(a). The Federal I/M rule also requires 
that beginning January 1, 2002, inspection of the OBD systems on MY 
1996 and newer light-duty vehicles shall be conducted according to the 
procedure described in 40 CFR 85.2222, at a minimum. See 40 CFR 
51.357(a)(12). The required test standards are specified in 40 CFR 
51.357(b).
    EPA's basic I/M performance standard assumes testing in idle mode, 
but Nevada's I/M program requires subject vehicles to pass the more 
demanding ``two-speed idle'' test (i.e., exhaust emissions are tested 
in idle mode and at 2,500 rpm). In this instance, the subject vehicles 
include all gasoline-powered motor vehicles (except motorcycles, and 
other exempt categories), i.e., light-duty gasoline-powered vehicles MY 
1968 through MY 1995, and heavy-duty gasoline-powered vehicles MY 1968 
and newer. See NAC 445B.580. Generally, the procedures require use of 
an approved exhaust gas analyzer and compliance with the emissions 
standards set forth in NAC 445B.596 (unless a waiver is granted). All 
light-duty gasoline-powered vehicles MY 1996 and newer are subject to 
OBD systems checks. See NAC 445B.5805. The State's procedures for the 
two-speed idle test and the OBD system check are consistent with EPA 
requirements. Testing procedures and standards for light-duty diesel-
powered vehicles are found in NAC 445B.587 through 445B.589.
    EPA's basic I/M performance standard assumes exhaust emission 
testing standards as specified in 40 CFR part 85, subpart W. Consistent 
with those standards, the State I/M program establishes, for those 
vehicles that are subject to emissions testing, maximum exhaust 
emissions for MY 1981 and newer of 1.2% for CO and 220 ppm for 
hydrocarbons (HC). For older light-duty gasoline-powered vehicles (MY 
1968 through 1980), maximum CO (%) and HC (ppm) standards range from 
4.0%-2.0% and 800 ppm-500 ppm, respectively. The standards for heavy-
duty gasoline-powered vehicles MY 1981 and newer are 3.5% for CO and 
1,000 ppm for HC; for older heavy-duty gasoline-powered vehicles (MY 
1968 through 1980), maximum CO (%) and HC (ppm) range from 7.0%-4.0% 
and 1,400 ppm-1,000 ppm, respectively. See NAC 445B.596. In the event 
of an emission failure of any kind, all components are retested after 
repairs.
    The Federal basic I/M performance standard does not assume that 
inspections are made of the emission control devices as part of the I/M 
program. Under the Nevada I/M program, however, such inspections are 
required. Specifically, inspectors perform visual checks for smoke from 
the exhaust system and for blowby gases from the crankcase. See NAC 
445B.580. Also, inspectors visually inspect all vehicles to determine 
the presence of a properly installed gas cap. For light-duty gasoline-
powered vehicles MY 1981 through MY 1995 (and MY 1996 and newer heavy-
duty gasoline-powered vehicles), inspectors also check for the presence 
of an exhaust gas recirculation valve, catalytic converter, air 
injection system and fuel inlet restricter, and whether this equipment 
appears to be operating in accordance with the specifications of the 
manufacturer of the vehicle. See NAC 445B.580. For MY 1996 and newer 
light-duty gasoline-powered vehicles, inspection stations administer 
OBD systems checks (see NAC 445B.5805) that substitute for the visual 
inspections that are part of the program for earlier models. If a 
vehicle has missing or malfunctioning emissions control equipment, 
Nevada's required I/M test will result in a failed vehicle 
notification. Under NAC 445B.582 and 445B.589, necessary

[[Page 1183]]

repairs must be completed before a second test can be performed.
    We conclude that the State's test procedures and standards meet the 
corresponding Federal I/M rule requirements.
Test Equipment (40 CFR 51.358)
    The Federal I/M rule requires computerized test systems for 
performing any measurement on subject vehicles, and the SIP is to 
include written technical specifications for all test equipment used in 
the program.
    In 1994, when the Basic I/M SIP was submitted, the State's exhaust 
gas analyzer was the Nevada 94 analyzer, and the Basic I/M SIP included 
the written specifications for that analyzer. Since then, the State has 
replaced the Nevada 94 analyzer with the NV2000 analyzer and submitted 
the related written specifications to EPA in a SIP submittal dated 
January 30, 2002. The January 30, 2002 SIP submittal was made in 
connection with our review of the I/M program in Las Vegas and Boulder 
City, but we note that the same analyzer (i.e., NV2000) is required for 
use in both the Las Vegas/Boulder City area and in the Truckee Meadows 
area. On May 11, 2007, NDEP submitted another I/M-related SIP revision 
that included, among other items, written specifications for a change 
in NV2000 as previously submitted to make emissions testing possible on 
motor vehicles containing a certified OBD system which uses controller 
area network communication.
    NV2000 emission testing equipment has been used to inspect 
gasoline-powered vehicles since April 2001. NV2000 analyzers carry 
California Bureau of Automotive Repair (BAR 97) certification. Two-
speed idle and OBD inspection procedures can be performed with NV2000 
analyzers. The NV2000 emission analyzer has remained in the same 
configuration as when first implemented in April 2001 with one 
exception. In late 2004, a revised OBD scan hardware capable of 
communication with controller area network systems was approved as an 
option. Emissions stations were required to update their NV2000 
emission analyzers to include the revised OBD scan hardware by 
September 2006.
    NV2000 test equipment features include: Concentration measurements 
of CO, HC, carbon dioxide (CO2) and oxygen (O2); 
engine RPM; leak checks; anti-tampering checks; automatic test data 
recording; and lock-out measures. The test begins with a check of the 
vehicle's registration and for any recall notices for that model 
vehicle. Adoption or use of alternate test equipment, test procedures 
or alternate methods requires prior approval by EPA. The exhaust gas 
analyzer specifications describe all the necessary components of the 
emission analysis process, test equipment and all necessary EPA 
requirements under 40 CFR 51.358. We found NV2000 to be acceptable in 
connection with our approval of Nevada's I/M program for Las Vegas and 
Boulder City (see 69 FR 56351 (September 21, 2004)) and believe that 
NV2000, as updated in NDEP's submittal dated May 11, 2007, is equally 
acceptable for the purposes of the basic I/M program in Truckee 
Meadows.
Quality Control (40 CFR 51.359)
    The Federal I/M rule requires state programs to include measures to 
ensure emission testing equipment is calibrated and maintained 
properly. See 40 CFR 51.359. SIPs are to include a description of 
quality control and recordkeeping procedures and the procedure manual, 
rule, ordinance or law describing and establishing the quality control 
procedures and requirements. See 40 CFR 51.359(f). The specifications 
for Nevada's NV2000 analyzer include several quality control elements. 
Only State-certified analyzers may be used for emission testing 
purposes under the I/M program, and to qualify for certification, 
manufacturers of analyzers must demonstrate that their model complies 
with all NV2000 specifications. NV2000 specifications were submitted by 
NDEP as part of its January 30, 2002 SIP submittal to EPA and approved 
as a SIP revision on September 21, 2004 (69 FR 56351). NDEP submitted 
revisions to NV2000 on May 11, 2007. NV2000 requires that analyzers be 
designed to perform automatic two-point gas calibrations for HC, CO and 
carbon dioxide; ambient air zero and span check tests; and measurements 
of oxygen using ambient air. The specifications call for automatic gas 
calibration to be conducted every 72 hours as activated by the 
analyzer's internal clock. In addition, to meet NV2000 specifications, 
an analyzer must be designed with a system capable of requiring an 
automatic leak check of the vacuum side of the analyzer activated by 
the internal clock every 24 hours.
    The NV2000 analyzer also includes a number of automated controls to 
ensure that the system is tamper-resistant. The inspection certificates 
are stored automatically by the exhaust gas emission analyzer. The 
analyzers provide security capable of preventing any unauthorized 
modifications to the software or test data. The performance of licensed 
test and repair stations on repairing vehicles for retest is monitored. 
Emission certificates are counterfeit-resistant. Overt and covert 
audits are used to help verify the security of documents and emission 
test information. The Nevada DMV collects and inspects records from 
licensed test stations to detect discrepancies in testing and/or 
repairs. EPA believes the State's submitted basic I/M program for 
Truckee Meadows meets the quality control requirements of 40 CFR 51.359 
and is acceptable.
Waivers and Compliance via Diagnostic Inspection (40 CFR 51.360)
    Under the Federal I/M rule, state I/M programs may allow the 
issuance of a waiver, which is a form of compliance with the program 
requirements that allows a motorist to comply without meeting the 
applicable test standards, as long as certain prescribed criteria are 
met. See 40 CFR 51.360. For ``basic'' I/M programs, state I/M programs 
must require motorists to make an expenditure of at least $75 for pre-
1981 vehicles and $200 for 1981 and newer vehicles to qualify for a 
waiver, but allows motorists to wait to repair a failed vehicle for the 
period of one test cycle for ``economic hardship.'' See 40 CFR 
51.360(a)(9).
    The State of Nevada has adopted procedures for issuing waivers 
after an emission test failure (see NAC 445B.590). First of all, only 
Nevada DMV may grant a waiver under the emissions standards tests. 
Second, for the basic I/M program in Truckee Meadows, the Nevada 
program requires a minimum expenditure of at least $200 at an 
authorized station on repair parts (other than a catalytic converter, 
fuel inlet restrictor or air injection system) or on labor to qualify 
for a waiver. See NAC 445B.590(2)(a). Such labor costs cannot include 
emission testing if the repairs evidenced by the receipt were directly 
related to the deficiency in emissions. If the vehicle is repaired by 
the owner, the waiver application must include receipts or other 
evidence that at least $200 has been spent on parts (other than a 
catalytic converter, fuel inlet restrictor or air injection system). No 
allowance is permitted for labor on vehicles repaired by the owner. 
Also, a vehicle that qualifies for repairs under a warranty is not 
eligible for a waiver. The performance standard evaluation provided by 
the State in the Basic I/M Performance Standard Evaluation SIP 
submittal dated November 2, 2006 reflects the actual waiver rate that 
occurred during the first quarter of 1996: 4.2% for pre-1981 vehicles 
and 3.3% of 1981 and newer vehicles. We

[[Page 1184]]

find that Nevada's submitted basic I/M program for Truckee Meadows 
meets the requirements for issuing waivers under such programs under 40 
CFR 51.360 and adequately accounts for waivers in the performance 
standard evaluation for the program.
Motorist Compliance Enforcement (40 CFR 51.361)
    The Federal I/M rule requires the use of registration denial to 
ensure compliance with the requirements of the I/M program. However, 
the Federal I/M rule allows programs in ``basic'' I/M areas to use an 
alternative enforcement mechanism if the State demonstrates that the 
alternative will be as effective as registration denial.
    The Nevada program includes a registration denial enforcement 
program. See NRS 445B.815 AND NRS 482.280. New residents to Nevada must 
register their motor vehicles within 60 days of becoming a resident. 
See NRS 482.385. Vehicle owners that do not renew vehicle 
registrations, and continue to drive an unregistered vehicle in the 
state, are subject to enforcement action by any law enforcement officer 
in the state. Local governments are responsible for establishing 
policies for the mandatory fines of all traffic violations including 
failure to comply with registration requirements.
    Persons purchasing vehicles from used-car dealers must have the 
vehicle tested and obtain evidence of compliance from the dealers prior 
to sale (NRS 445B.800). All persons purchasing vehicles from 
individuals must have the vehicle tested and have a passing certificate 
of compliance to obtain registration. If a vehicle is not registered, 
it is unlawful to be operated on public highways, and NRS 445B.840 
prohibits possession of unauthorized evidence of compliance or the 
making, issuance, or use of any imitation or counterfeit evidence of 
compliance.
    Government fleets (any number of vehicles) and private fleets 
(consisting of 25 or more vehicles) can certify their vehicles in their 
own licensed fleet facility (see NAC 445B.461 and NAC 445B.478). I/M 
inspection facilities for fleets must also meet the requirements 
applicable to a licensed test station except for bonds and signs. 
Evidence of I/M compliance for vehicles serviced by a covered fleet 
must be submitted annually to Nevada DMV.
    Emission control compliance is tied to vehicle registration or re-
registration. Registration tags are color-coded with the date imprinted 
to make it easily visible to local, county or State law enforcement 
personnel. EPA believes the submitted basic I/M program for Truckee 
Meadows meets the requirements under the Federal rule related to 
motorist compliance enforcement and is acceptable.
Motorist Compliance Enforcement Program Oversight (40 CFR 51.362)
    The Federal I/M rule requires the State to audit the enforcement 
program on a regular basis and to follow effective program management 
practices, including adjustments to improve operation when necessary. A 
quality assurance program must be implemented to ensure effective 
overall performance of the enforcement system.
    Under Nevada's program, compliance is monitored using computer 
records of vehicle registration through the Nevada DMV, in conjunction 
with the State, local and county law enforcement agencies. Denial of 
vehicle registration or re-registration is the main tool for 
compliance. The DMV issues and supplies all emission control documents. 
The DMV tracks all certificates of inspection issued, received, 
returned or voided by the individual licensed test stations. Licensed 
test stations are required to provide the DMV with a report on all 
control documents received, issued, or voided (see NAC 445B.472 and 
445B.473).
    The DMV is required to develop procedures for personnel engaged in 
I/M document management and processing. Periodic audits of test records 
and registration files for renewals must be performed. Evaluations of 
all personnel are conducted on a regular basis in accordance with the 
State Personnel Manual.
    Emission test files are required to be updated periodically at the 
DMV. Procedures have been developed for inquiry into the host computer 
for specific vehicles, stations, and general program reporting. 
Information on complaints, waivers issued, and recall information is 
included in the data files. NV2000 specifications require automatic 
functions for such items as the following: Pass/fail determinations on 
all measurements; a record of all test data and vehicle data to the 
central computer; electronic calibration and system integrity checks; 
and lockouts for specified quality control.
    The State has developed written procedures for all field auditors 
and personnel directly involved in the enforcement of the I/M program. 
The procedures include: Methods for performing covert and overt audits, 
preparation of enforcement documents, methods for operation of I/M test 
equipment, public relation materials and other applicable information. 
EPA believes the submitted basic I/M program for Truckee Meadows meets 
the requirements under the Federal rule related to oversight of the 
motorist compliance enforcement program and is acceptable.
Quality Assurance (40 CFR 51.363)
    The Federal I/M rule requires an ongoing quality assurance program 
to discover, correct, and prevent fraud, waste, and abuse and to 
determine whether procedures are being followed and are adequate, if 
equipment is measuring accurately, and if other problems may exist, 
which would impede program performance. The procedures must also be 
periodically evaluated to assess their effectiveness and relevance in 
achieving program goals. See 40 CFR 51.363.
    The specifications for the NV2000 analyzer incorporate quality 
assurance procedures. Among its various software requirements, NV2000 
provides the capability for generating station and inspector evaluation 
reports. NV2000 also provides for different types of reports generated 
for State audit purposes, such as a station performance report and 
details regarding analyzer maintenance. Each licensed test station must 
maintain records and have them available for collection for DMV 
evaluation (see NAC 445B.472).
    The State's rules for inspecting test stations and inspectors are 
set forth in NAC 445B.7015-445B.7045. Nevada DMV conducts annual audits 
of test stations and may determine that additional inspections are 
necessary based on circumstances such as abnormal rates of failure of 
motor vehicles on exhaust emissions tests or receipt of complaints 
against stations or inspectors. In addition, a minimum of once every 
calendar month, DMV performs an audit of all exhaust gas analyzers 
located at a test station, and once every calendar quarter, DMV's audit 
includes an evaluation of the accuracy of the analyzers using specialty 
gas specifically designed for that purpose. See NAC 445B.472.
    DMV has developed written standard operating procedures for quality 
assurance that were included as appendix 6 of the Basic I/M SIP 
submitted in 1994. These procedures cover such subjects as covert 
audits and use of covert vehicles. Nevada DMV auditors receive formal 
training in the use of analyzers, basics of air pollution control, 
basic engine repair, State administrative procedures, quality assurance 
practices, covert procedures and program rules and regulations. EPA

[[Page 1185]]

believes the State's submitted basic I/M program for Truckee Meadows 
meets the requirements under the Federal rule related to quality 
assurance and is acceptable.
Enforcement Against Contractors, Stations and Inspectors (40 CFR 
51.364)
    The Federal I/M rule requires the establishment of minimum 
penalties for violations of program rules and procedures which can be 
imposed against licensed stations or contractors, and inspectors. 
Procedures for actions against stations and inspectors are provided for 
in NAC sections 445B.463 and 445B.476 (stations) and sections 445B.489 
and 445B.491 (inspectors). Violations and penalties are set forth in 
NRS section 445B.835 and 445B.845 and NAC sections 445B.7045 and 
445B.727. Stations and inspectors are regulated by Nevada DMV with 
respect to license denials, suspension, reinstatements, temporary 
suspensions, revoked licenses, required bonds, reapplications, and 
hearings for reapplication [NAC sections 445B.463 through 445B.468 
(stations) and sections 445B.489 through 445B.493 (inspectors)]. EPA 
believes the State's submitted basic I/M program for Truckee Meadows 
meets the requirements for enforcement against licensed stations or 
contractors, and inspectors in the Federal rule and is acceptable.
Data Collection (40 CFR 51.365)
    An effective I/M program requires accurate data collection in order 
to manage, evaluate and enforce the program requirements. The Nevada I/
M program contains data gathering provisions that meet all of the 
criteria of the EPA regulations. Vehicle test data storage and 
retrieval methods are enumerated. Test results are expressed as either 
pass or fail. Information related to the calibration check must be 
stored automatically by each analysis. EPA believes the State's 
submitted basic I/M program for Truckee Meadows meets the requirements 
for data collection in the Federal rule and is acceptable.
Data Analysis and Reporting (40 CFR 51.366)
    Data analysis and reporting are required to monitor and evaluate 
the program by the State and EPA and must provide information regarding 
the types of program activities performed and their final outcomes, 
including summary statistics and effectiveness evaluations of the 
enforcement mechanism, the quality assurance system, the quality 
control program, and the testing element. The Federal I/M rule requires 
four annual reports to be submitted to EPA: A test data report, a 
quality assurance report, a quality control report, and an enforcement 
report. In addition, on a biennial basis, the States must submit a 
report that addresses programmatic changes, such as funding or 
personnel changes and new regulations, and problems identified in the 
program and steps taken to correct those problems.
    Nevada DMV is responsible, in cooperation with NDEP, for data 
analysis and reporting. The State of Nevada has consistently submitted 
the reports on time (by July of each year), and the reports contain the 
required information. Nevada's annual data analysis and reporting 
includes: The number of vehicles tested by MY; pass/fail data; basic 
statistics on the quality assurance program for the previous year that 
include the number of inspection stations operating through the year; 
overt and covert audit information; quality control reporting that 
includes the number of scheduled station audits that were conducted and 
the number of analyzers that failed a calibration audit; enforcement-
related information including the motorist compliance level and the 
number of waivers granted; and a description of any changes made to the 
I/M program. The most recent report covers calendar year 2006.
    EPA believes that the State's submitted basic I/M program for 
Truckee Meadows meets the requirements for data analysis and reporting 
in the Federal rule and is acceptable.
Inspector Training and Licensing or Certification (40 CFR 51.367)
    The Federal I/M rule requires all inspectors to receive formal 
training and be licensed or certified to conduct inspections. NAC 
sections 445B.485 through 445B.502 set forth the procedures for the 
required training and licensing of inspectors. Nevada DMV's 
requirements for an approved inspector include a verified training 
program for ``class 1'' and ``class 2'' inspectors (including a course 
approved by DMV), a written and practical testing program, and a 
separate certification process. All trainees are required to pass a 
comprehensive hands-on and written examination which requires 
inspectors to demonstrate an understanding of Nevada's regulations, 
test procedures, equipment usage, quality control procedures and safety 
and health issues. Certified repair technicians must comply with the 
training and licensing requirements of ``class 2'' inspectors in order 
to perform service on vehicle exhaust emission components. All test 
stations must employ approved inspectors of the appropriate class and 
rating. Nevada DMV provides the appropriate inspector training and 
licensing to meet the requirements listed in 40 CFR 51.367. EPA 
believes that the State's submitted basic I/M program for Truckee 
Meadows meets the requirements for inspector training and licensing or 
certification in the Federal rule and is acceptable.
Public Information and Consumer Protection (40 CFR 51.368)
    The Federal I/M rule requires that an I/M program include a plan 
for informing the public on an ongoing basis throughout the life of the 
I/M program of: Local air quality problems, the requirements of Federal 
and State law, and the impact of motor vehicles to local air quality 
problems. The educational program should also include information on: 
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. In addition, the 
program must describe procedures and mechanisms to protect the public 
from fraud and abuse by inspectors, mechanics, and others involved in 
the I/M program.
    Pursuant to NRS 445B.785 and NAC 445B.471, Nevada DMV issues a 
pamphlet for the purpose of providing the general public with a 
description of the methods of, and reasons for, the I/M program. NDEP 
included such a pamphlet in appendix 8 of the Basic I/M SIP submitted 
in 1994. In addition, Nevada DMV operates a Web site (http://www.dmvnv.com/emission.htm) that describes the emissions testing 
program. Nevada DMV has developed a public relations program to 
disseminate information to the public through the local offices of the 
DMV and civic events throughout the year. Information is made available 
to the motorist, whose vehicle fails the test, regarding repair 
facilities. The consumer is protected through covert audits, regular 
inspections and public reports of improprieties. EPA believes the 
State's submitted basic I/M program for Truckee Meadows meets the 
requirements for public information and consumer protection in the 
Federal rule and is acceptable.
Improving Repair Effectiveness (40 CFR 51.369)
    I/M program goals are achieved through effective repairs of 
vehicles which have failed the initial test. Under the Federal I/M 
rule, the State must provide the repair industry with

[[Page 1186]]

information and assistance on vehicle inspection, diagnosis and repair. 
Also, the State I/M program must provide feedback, including 
statistical and qualitative information to individual repair facilities 
on a regular basis regarding their success in repairing failed 
vehicles. Lastly, the State must assess the availability of adequate 
repair technician training in the I/M area and if such training is not 
currently available, shall ensure training is made available to all 
interested persons in the community either through private or public 
facilities.
    Nevada DMV provides technical assistance to the repair industry by 
requiring the manufacturer of NV2000 exhaust gas analyzers to train all 
approved inspectors at the time of installation in the proper use, 
maintenance and operation of the analyzer and to provide on-site 
service calls to address specific issues or problems. See NAC 
445B.5075. To provide Nevada DMV with the basis to evaluate the success 
in repairing failed vehicles, each authorized station is required to 
maintain, and have available for collection, records of all repairs at 
the request of Nevada DMV. See NAC 445B.472. Lastly, Nevada DMV's 
inspector regulations (NAC 445B.485 through 445B.502) require specific 
training and licensing of ``class 2'' inspectors, who are then approved 
as repair technicians. The training and certifying of mechanics is 
under the auspices of the DMV in cooperation with the Community College 
System.
    We find that the State's I/M program for repair technician training 
meets the requirements of 40 CFR 51.369 thereby justifying the 
technician training credit taken in the Basic I/M Performance Standard 
Evaluation SIP submitted on November 2, 2006.
Compliance With Recall Notices (40 CFR 51.370)
    States are required to establish a method to ensure that vehicles 
subject to ``enhanced'' I/M and that are included in either a voluntary 
emissions recall as defined at 40 CFR 85.1902(d), or in a remedial plan 
determination made pursuant to section 207(c) of the Act, receive the 
required repairs. ``Basic'' I/M programs, such as the one required for 
Truckee Meadows, are not subject to this requirement.
On-Road Testing (40 CFR 51.371)
    On-road testing is required in areas subject to ``enhanced'' I/M 
requirements but is an option for areas subject to ``basic'' I/M. 
Because Truckee Meadows is subject to the ``basic'' I/M requirements, 
no on-road testing is required in that area, and none is being 
conducted.
State Implementation Plan Submission (40 CFR 51.372)
    The Federal I/M rule requires State I/M SIP submittals to address 
the following elements: (1) Schedule of implementation of the program 
including interim milestones leading to mandatory testing; (2) an 
analysis of emission level targets for the program showing that the 
program meets the performance standard; (3) a description of the 
geographic coverage of the program; (4) a detailed discussion of each 
of the required design elements; (5) legal authority requiring or 
allowing implementation of the I/M program; (6) legal authority for I/M 
program operation until such time as it is no longer necessary; (7) 
implementing regulations, interagency agreements, and memorandum of 
understanding; and (8) evidence of adequate funding and resources to 
implement all aspects of the program.
    The State of Nevada has implemented a mandatory I/M program in 
Truckee Meadows since 1983. The changes that the State adopted to meet 
EPA's ``basic'' I/M program requirements were implemented in 1994. For 
MY 1996 and newer light-duty gasoline-powered vehicles, mandatory OBD 
system checks replaced the previous two-speed idle test beginning in 
2002.
    All of the required SIP I/M elements listed above were included in 
the Basic I/M SIP submitted by NDEP on June 3, 1994 except for the 
performance standard evaluation, which was contained in the Basic I/M 
Performance Standard Evaluation SIP submitted on November 2, 2006. 
Also, since 1994, the State has updated certain elements of the Basic 
I/M SIP, including the legal authority for the program, the 
implementing regulations, and the specifications for the approved 
exhaust gas analyzer. On May 11, 2007, NDEP submitted a third related 
SIP revision entitled Nevada Mobile Source SIP: Update of the 
Regulatory Element (May 11, 2007)(``Mobile Source SIP Update''), which 
includes a complete set of current I/M-related statutory provisions and 
implementing rules as well as the changes to the specifications for the 
NV2000 exhaust gas analyzer made since approval of NV2000 as part of 
Nevada's I/M program in Las Vegas and Boulder City in 2004. Thus, NDEP 
has submitted all of the required I/M elements. We note also that 
Nevada's I/M program does not undergo a sunset review, and thereby has 
the legal authority to operate until such time as it is no longer 
necessary.
Implementation Deadlines (40 CFR 51.373)
    The Federal I/M rule requires I/M programs to be implemented as 
expeditiously as practicable. Decentralized ``basic'' I/M programs were 
required to be fully implemented by January 1, 1994. On-board 
diagnostic system checks must be implemented in all ``basic'' I/M areas 
by January 1, 2002. Nevada's ``basic'' I/M program was implemented in 
1994, and Nevada's requirements for OBD checks were implemented in 
2002. This is acceptable.

Conclusion

    Based on our review of the various elements of the program as 
discussed above, we propose to approve the basic I/M program for 
Truckee Meadows as meeting all applicable requirements under the CAA 
and our implementing regulations under 40 CFR part 51, including the 
requirement that the basic program meets the ``basic'' performance 
standard applicable to ``moderate'' CO nonattainment areas with design 
values less than 12.7 ppm.

VIII. Clean Air Act Requirements for Redesignation to Attainment

    The CAA establishes the requirements for redesignating a 
nonattainment area to attainment. Specifically, section 107(d)(3)(E) 
allows for redesignation provided that the following criteria are met: 
(1) EPA determines that the area has attained the applicable NAAQS; (2) 
EPA has fully approved the applicable implementation plan for the area 
under section 110(k); (3) EPA determines that the improvement in air 
quality is due to permanent and enforceable reductions in emissions 
resulting from implementation of the applicable SIP, applicable Federal 
air pollution control regulations, and other permanent and enforceable 
reductions; (4) EPA has fully approved a maintenance plan for the area 
as meeting the requirements of CAA section 175A; and (5) the State 
containing such area has met all requirements applicable to the area 
under section 110 and part D of the CAA.
    EPA provided guidance on redesignations in the form of a General 
Preamble for the Implementation of Title I of the CAA Amendments of 
1990 published in the Federal Register on April 16, 1992 (57 FR 13498), 
as supplemented on April 28, 1992 (57 FR 18070). Other relevant EPA 
guidance documents include:
     ``Contingency Measures for Ozone and Carbon Monoxide (CO) 
Redesignations,'' Memorandum from

[[Page 1187]]

G.T. Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of Air 
Quality Planning and Standards (OAQPS), June 1, 1992 (Helms memo);
     ``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, OAQPS, September 4, 1992 (Calcagni memo 1992a);
     ``Public Hearing Requirements for 1990 Base-Year Emissions 
Inventories for Ozone and Carbon Monoxide Nonattainment Areas,'' 
Memorandum from John Calcagni, Director, Air Quality Management 
Division, OAQPS, September 29, 1992 (Calcagni memo 1992b);
     ``State Implementation Plan (SIP) Actions Submitted in 
Response to Clean Air Act (ACT) Deadlines,'' Memorandum from John 
Calcagni, Director, Air Quality Management Division, OAQPS, October 28, 
1992 (Calcagni memo 1992c);
     ``State Implementation Plan (SIP) Requirements for Areas 
Submitting Requests for Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) On 
or After November 15, 1992,'' Memorandum from Michael H. Shapiro, 
Acting Assistant Administrator for Air and Radiation, September 17, 
1993 (Shapiro memo);
     ``Use of Actual Emissions in Maintenance Demonstrations 
for Ozone and Carbon Monoxide (CO) Nonattainment Areas,'' Memorandum 
from D. Kent Berry, Acting Director, Air Quality Management Division, 
OAQPS, November 30, 1993 (Berry memo);
     ``Part D New Source Review (part D NSR) Requirements for 
Areas Requesting Redesignation to Attainment,'' Memorandum from Mary D. 
Nichols, Assistant Administrator for Air and Radiation, October 14, 
1994 (Nichols memo).
    For the reasons set forth below in section IX of this document, we 
propose to approve NDEP's request for redesignation of the Truckee 
Meadows nonattainment area to attainment for the CO NAAQS based on our 
conclusion that all of the criteria under CAA section 107(d)(3)(E) have 
been satisfied.

IX. Evaluation of the State's Redesignation Request for Truckee Meadows

A. The Area Must Have Attained the Applicable NAAQS

    Section 107(d)(3)(E)(i) of the CAA states that for an area to be 
redesignated to attainment EPA must determine that the area has 
attained the applicable NAAQS. In this case, the applicable NAAQS is 
the CO NAAQS.
    On May 3, 2005 (70 FR 22803), we determined that the Truckee 
Meadows ``moderate'' CO nonattainment area attained the CO NAAQS by the 
applicable attainment date (1995) and had continued to attain the 
standard since that time. As part of that determination, we reviewed 
the ambient CO monitoring network operated by the District AQMD and 
found that it meets or exceeds our requirements. See 70 FR 3170 
(January 21, 2005). For a description of District AQMD's ambient CO 
monitoring network in Truckee Meadows and our requirements for such 
networks, please see our January 21, 2005 proposed CO attainment 
finding (70 FR 3170).
    We based our May 3, 2005 determination of attainment on ambient 
monitoring data through year 2004. For the purposes of this proposed 
rule, we have reviewed the most recent data input to our Air Quality 
System (AQS) database and have found that no exceedances of the CO 
NAAQS have been recorded in the 2005-2006 period. (The highest 8-hour 
CO concentrations were less than 50% of the NAAQS at all of the 
stations over the 2005-2006 period.) Thus, based on the attainment 
finding and positive assessment of the District AQMD ambient CO 
monitoring network that we made in May 2005 and our current review of 
the most recent data in AQS, we find that Truckee Meadows has attained 
the CO NAAQS thereby satisfying the criterion for redesignation set 
forth in section 107(d)(3)(E)(i).

B. The Area Must Have a Fully Approved SIP Under Section 110(k) of the 
CAA

    Section 107(d)(3)(E)(ii) precludes redesignation of a nonattainment 
area to attainment until EPA has fully approved the applicable 
implementation plan for the area under section 110(k). Pursuant to the 
CAA amendments of 1977, the State of Nevada submitted a CO plan for the 
Truckee Meadows nonattainment area. In 1981, we approved in part, and 
conditionally approved in part, the submitted CO plan, and in 1982, we 
found that the conditions imposed on approval of certain elements of 
the CO plan for Truckee Meadows had been fulfilled. In 1984, we 
approved revisions to many of the elements contained in the CO plan for 
Truckee Meadows, and deferred action on other elements. We proposed 
disapproval of a subsequent CO plan for Truckee Meadows in 1987, but we 
consider the plan elements for which we deferred action or proposed 
disapproval in the 1980's to be superseded by the SIP revision 
submittals made pursuant to the 1990 Clean Air Act Amendments.
    With respect to post-1990 SIP submittals, upon final approval of 
the required plan elements proposed for approval herein (wintertime 
oxygenated gasoline rule and ``basic'' I/M program), we will have fully 
approved the applicable implementation plan for the Truckee Meadows CO 
nonattainment area, and thereby satisfied this criterion for 
redesignation.

C. The Area Must Show the Improvement in Air Quality Is Due to 
Permanent and Enforceable Emissions Reductions

    Section 107(d)(3)(E)(iii) precludes redesignation of a 
nonattainment area to attainment unless EPA determines that the 
improvement in air quality is due to permanent and enforceable 
reductions in emissions resulting from implementation of the applicable 
SIP and applicable Federal air pollution control regulations and other 
permanent and enforceable regulations. If EPA makes such a 
determination, then the criterion is satisfied.
    The improvement in CO air quality in the Truckee Meadows area is 
due to the Federal Motor Vehicle Control Program (40 CFR part 86), the 
local wintertime oxygenated gasoline rule, the State's ``basic'' 
vehicle I/M program, and the local residential wood combustion rule. 
The Federal Motor Vehicle Control Program has contributed to improved 
air quality through the gradual, continued turnover and replacement of 
older vehicle models with newer models manufactured to meet 
increasingly stringent Federal tailpipe emissions standards. The 
emissions reductions from the Federal Motor Vehicle Control Program are 
reflected in the emissions inventories and maintenance demonstration 
discussed later in this document through the use of EPA's MOBILE 
emission factor model for on-road motor vehicles. The Truckee Meadows 
CO Maintenance Plan provides estimates of the emissions reductions 
associated with the State and local measures in years 2002, 2010 and 
2016 (see page 7 of the Truckee Meadows CO Maintenance Plan). Based on 
those estimates, the three State and local control measures together 
reduced CO emissions that would otherwise have occurred in Truckee 
Meadows by approximately 20 percent in 2002.
    With respect to permanence and enforceability, we are proposing 
approval of the wintertime oxygenated gasoline rule and the ``basic'' 
vehicle I/M program in this action, and upon

[[Page 1188]]

their final approval, the local wintertime oxygenated gasoline rule and 
basic I/M program will become federally enforceable as part of the 
Nevada SIP. (The wintertime oxygenated gasoline rule and basic I/M 
program are already enforceable by the District and State, 
respectively.) Upon the effective date of our approval of the 
residential wood combustion rule, it became federally enforceable. None 
of these measures include sunset clauses, and thus, upon approval by 
EPA, the measures will become permanent features of the Nevada SIP 
until such time as the State submits, and EPA approves, future SIP 
revisions that amend or delete them.
    With respect to the connection between the emissions reductions and 
the improvement in air quality, the Truckee Meadows CO Maintenance Plan 
provides a demonstration that the air quality improvement in Truckee 
Meadows, that has resulted in attainment of the CO NAAQS by 1995 and 
continued attainment since then, is due to emission reductions from 
implementation of the control measures discussed above and is not the 
result of a local economic downturn or unusual or extreme weather 
patterns. See pages 6 through 11 of the Truckee Meadows CO Maintenance 
Plan.
    Thus, we find that the improvement in CO air quality in Truckee 
Meadows is the result of permanent and enforceable emissions reductions 
from a combination of the Federal Motor Vehicle Control Program and 
certain State and local measures. As such, the criterion for 
redesignation set forth at CAA section 107(d)(3)(E)(iii) is satisfied.

D. The Area Must Have Met All Applicable Requirements Under Section 110 
and Part D

    Section 107(d)(3)(E)(v) requires a State to have met all 
requirements applicable to a nonattainment area under section 110 and 
part D of the Act as a prerequisite to redesignation of that 
nonattainment area to attainment.
1. Section 110 Requirements
    Section 110(a)(2) sets forth the general elements that a SIP must 
contain in order to be fully approved. Although section 110(a)(2) was 
amended in 1990, a number of the requirements did not change in 
substance, and therefore, EPA believes that the pre-amendment EPA-
approved SIP met these requirements in Truckee Meadows with respect to 
CO. As to those requirements that were amended, (see 57 FR 27936 and 
27939, June 23, 1992), many are duplicative of other requirements of 
the Act. EPA has analyzed the SIP and determined that it is consistent 
with the requirements of amended section 110(a)(2). The Truckee Meadows 
portion of the Nevada SIP contains enforceable emission limitations; 
requires monitoring, compiling and analyzing of ambient air quality 
data; requires preconstruction review of new or modified stationary 
sources; provides for adequate funding, staff, and associated resources 
necessary to implement its requirements; and provides the necessary 
assurances that the State maintains responsibility for ensuring that 
the CAA requirements are satisfied in the event that the District is 
unable to meet its CAA obligations.
2. Part D Requirements
    The requirements that apply under part D of title I of the Act to 
``moderate'' CO nonattainment areas are set forth in sections 172, 176, 
187, and 211. The CAA, as amended in 1990, distinguishes between 
moderate CO nonattainment areas with design values of 12.7 ppm (eight-
hour average) or less and those with design values greater than 12.7 
ppm at the time of initial classification. Truckee Meadows had a design 
value of 9.8 ppm at the time of initial classification and thus is 
subject to those specific requirements that apply to ``moderate'' CO 
nonattainment areas with a design value of 12.7 ppm or less and is not 
subject to the additional requirements of ``moderate'' CO nonattainment 
areas with design values greater than 12.7 ppm. We have issued guidance 
in a General Preamble \9\ describing how we will review SIPs and SIP 
revisions submitted under title I of the Act, including those 
containing moderate CO nonattainment area SIP provisions.
---------------------------------------------------------------------------

    \9\ ``General Preamble for the Implementation of Title I of the 
Clean Air Act Amendments of 1990'' (57 FR 13498, April 16, 1992, as 
supplemented 57 FR 18070, April 28, 1992).
---------------------------------------------------------------------------

    Reasonably Available Control Measures / Reasonably Available 
Control Technology (RACM/RACT). Section 172(c)(1) of the Act requires 
States to submit a SIP revision for nonattainment areas that provide 
for the implementation of all reasonably available control measures 
(RACM) as expeditiously as practicable (including such reductions in 
emissions from existing sources in the area as may be obtained through 
the adoption, at a minimum, of reasonably available control technology 
(RACT)) and shall provide for attainment of the NAAQS. RACM is a more 
general term that can refer to stationary, area or mobile sources while 
RACT is a term that refers to stationary sources.
    Attainment of the CO NAAQS in Truckee Meadows relies upon three 
State or local control measures: The State's I/M program, Washoe 
County's rule establishing a wintertime oxygenated fuel requirement and 
Washoe County's rule establishing requirements for residential wood 
combustion. We are proposing to approve the State's I/M program for 
Truckee Meadows as well as the District's rule establishing a 
wintertime oxygenated fuel requirement as part of this action (see 
sections VI and VII of this document). In a separate action, we 
approved the District's rule governing residential wood combustion. See 
72 FR 33397 (June 18, 2007). Because the area has attained the CO 
NAAQS, no additional measures need be submitted to fulfill the RACM/
RACT requirement of CAA section 172(c)(1) in the Truckee Meadows CO 
nonattainment area.
    Reasonable Further Progress (RFP). Section 172(c)(2) of the Act 
requires States to submit a SIP revision for nonattainment areas that 
provide for reasonable further progress (RFP). Reasonable further 
progress is defined in CAA section 171(1) as such annual incremental 
reductions in emissions of the relevant air pollutant as are required 
by this part or may reasonably be required by the Administrator for the 
purpose of ensuring attainment of the applicable national ambient air 
quality standard by the applicable date.
    EPA interprets the Act such that the requirements for RFP do not 
apply in evaluating a request for redesignation to attainment since, at 
a minimum, the air quality data for the area must show that the area 
has already attained. Showing that the State will make RFP towards 
attainment will, therefore, have no meaning at that point. See 57 FR 
13498, at 13564 (April 16, 1992). See also our September 4, 1992 
memorandum from John Calcagni, entitled ``Procedures for Processing 
Requests to Redesignate Areas to Attainment'' (Calcagni memo), p. 6. 
Based on our finding above that Truckee Meadows has attained the CO 
NAAQS, we find that the requirements for RFP do not apply for the 
purposes of our evaluation of the State's request to redesignate the 
area to attainment.
    Emissions Inventory. Sections 172(c)(3) and 187(a)(1) of the Act 
require States to submit a comprehensive, accurate, current inventory 
of actual CO emissions for year 1990 from all sources within the 
nonattainment area. The inventory is to address actual CO emissions 
during the peak CO season for the area, and all stationary (generally 
referring to larger stationary source or ``point'' sources), area 
(generally referring to smaller

[[Page 1189]]

stationary and fugitive (non-smokestack) sources), and mobile (on-road, 
nonroad, locomotive and aircraft) sources are to be included in the 
compilation. Under sections 172(c)(3) and 187(a)(5) of the Act, States 
are required to submit, no later than September 30, 1995, and no later 
than the end of each 3-year period thereafter, until redesignation, an 
updated inventory of CO emitted within CO nonattainment areas.
    On November 13, 1992, NDEP submitted a revision to the Truckee 
Meadows portion of the Nevada SIP that contained a number of items, 
including the 1990 Base Year CO Inventory. The 1990 Base Year CO 
Inventory was the responsibility of and complied by the staff of the 
District AQMD. In the process of developing this base year inventory, 
the District AQMD submitted an Inventory Preparation Plan (IPP), which 
was officially accepted and approved by EPA.\10\ In 1993, the District 
AQMD revised the 1990 Base Year CO Inventory to reflect, among other 
things, an update of EPA's on-road motor vehicle emission factor model 
(MOBILE) and updated EPA methods for calculating emissions from nonroad 
mobile sources. NDEP submitted the revised inventory (``Revised 1990 
Base Year CO Inventory'') to EPA on June 3, 1994 as appendix 4 to 
NDEP's ``basic'' vehicle I/M SIP revision submittal for Truckee 
Meadows.
---------------------------------------------------------------------------

    \10\ See letter from Julia Barrow, Chief, Air Quality Section, 
Air Division, EPA-Region IX, to Jack Sheen, Air Pollution Control 
Officer, District AQMD, dated February 21, 1992.
---------------------------------------------------------------------------

    On January 19, 1996; April 14, 1999; February 5, 2002; and February 
3, 2005, NDEP submitted SIP revisions that contained updates of the CO 
emissions inventories for Truckee Meadows for years 1993, 1996, 1999, 
and 2002, respectively, as required under CAA sections 172(c)(3) and 
187(a)(5). Each successive inventory update reflects the changes in 
activity levels within each of the various source categories, the 
effects of on-going emissions control programs such as the Federal 
Motor Vehicle Control Program and the District's residential wood 
combustion program, as well as the updates to methods and emissions 
factors used to develop emissions inventories, such as updates to EPA's 
``MOBILE'' emission factor model.
    We interpret the Act such that the emission inventory requirements 
of section 172(a)(3), 187(a)(1), and 187(a)(5) are satisfied by the 
inventory requirements of the maintenance plan. See 57 FR 13498, at 
13564 (April 16, 1992). Thus, our proposed approval of the submitted 
maintenance plan and related base year (2002) CO emission inventory 
satisfies the requirements of section 172(a)(3), 187(a)(1), and 
187(a)(5) for the purposes of redesignation of Truckee Meadows to 
attainment for the CO NAAQS. See section IX.E.1 herein for details 
concerning the base year (2002) CO emission inventory. We plan no 
further action on the previously submitted CO inventories for years 
1990, 1993, 1996, and 1999.\11\
---------------------------------------------------------------------------

    \11\ We are also not taking specific action on NDEP's submittal 
of the 2002 periodic inventory update. However, because the 2002 
inventory was used as the base year inventory in the Truckee Meadows 
CO Maintenance Plan, we are relying on the technical documentation 
submitted with the 2002 periodic inventory update in our evaluation 
of the Truckee Meadows CO Maintenance Plan. See section IX.E.1 of 
this document.
---------------------------------------------------------------------------

Permits for New and Modified Major Stationary Sources

    Under section 172(c)(5), the CAA requires States to submit SIP 
revisions that establish certain requirements for new or modified 
stationary sources in nonattainment areas, including provisions to 
ensure that major new sources or major modifications of existing 
sources of nonattainment pollutants incorporate the highest level of 
control, referred to as the Lowest Achievable Emission Rate (LAER), and 
that increases in emissions from such stationary sources are offset so 
as to provide for reasonable further progress towards attainment in the 
nonattainment area. The process for reviewing permit applications and 
issuing permits for new or modified stationary sources of air pollution 
is referred to as ``New Source Review'' (NSR). With respect to 
nonattainment pollutants in nonattainment areas, this process is 
referred to as ``nonattainment NSR.''
    Under the Clean Air Act Amendments of 1977, States with designated 
nonattainment areas were required to amend their NSR rules to impose 
LAER and offsets requirements on new major sources and major 
modifications of nonattainment pollutants in nonattainment areas. Under 
the 1977 Act Amendments, we designated Truckee Meadows as a CO 
nonattainment area. In Washoe County, the District AQMD administers the 
NSR program for all stationary sources except for certain fossil-fueled 
power plants that are subject under State law to NDEP jurisdiction.
    To address the nonattainment NSR requirements flowing from the 1977 
Act Amendments, the District amended its NSR rules; NDEP submitted them 
to EPA on July 24, 1979 as a revision to the Truckee Meadows portion of 
the Nevada SIP; and we approved them on April 14, 1981. See 21758 
(April 14, 1981). In that same April 1981 final rule, we also approved 
NDEP's revised nonattainment NSR rules. Under these EPA-approved rules, 
LAER and offsets have been requirements for any new major sources or 
major modifications of CO in the Truckee Meadows nonattainment area.
    The 1990 Clean Air Act Amendments retained the core nonattainment 
NSR elements of LAER and offsets but added additional requirements, and 
in response, the District again revised its NSR rules, and NDEP 
submitted the revised rules to EPA on April 7, 1994. We have not taken 
action on the April 7, 1994 NSR SIP submittal.
    We have determined, however, that areas being redesignated from 
nonattainment to attainment do not need to comply with the requirement 
that an NSR program be approved prior to redesignation provided that 
the area demonstrates maintenance of the standard without nonattainment 
NSR in effect. The rationale for this determination is described in the 
Nichols memo cited in section VIII of this document.
    The Truckee Meadows CO Maintenance Plan anticipates an increase in 
CO emissions that is proportional to expected growth in population in 
the Truckee Meadows area from the types of sources potentially subject 
to LAER and offsets \12\ rather than assuming that any increases in CO 
from such sources would be offset. See pages 18-20 in the Truckee 
Meadows CO Maintenance Plan. Thus, we find that the maintenance 
demonstration for the Truckee Meadows CO nonattainment area does not 
rely on nonattainment NSR, and the State need not have a fully-approved 
nonattainment NSR program for Truckee Meadows prior to approval of the 
CO redesignation request.
---------------------------------------------------------------------------

    \12\ The source categories with sources potentially subject to 
LAER and offsets include stationary source fuel combustion and waste 
disposal, treatment and recovery.
---------------------------------------------------------------------------

    Prevention of Significant Deterioration (PSD) is the NSR program 
that applies to new major sources or major modifications of attainment 
pollutants and is the replacement program for nonattainment NSR after 
redesignation to attainment, and part of the obligation under PSD is 
for a new source to review increment consumption and maintenance of the 
air quality standards. The PSD program requires stationary sources to 
undergo preconstruction review before facilities

[[Page 1190]]

are constructed or modified, and to apply Best Available Control 
Technology (BACT). The PSD program will apply to any major source or 
major modification of CO emissions wishing to locate in the Truckee 
Meadows area once the area is redesignated to attainment. EPA currently 
administers the PSD program in Washoe County except for certain types 
of sources for which EPA has delegated PSD authority to NDEP. See 68 FR 
19371 (April 21, 2003) and 70 FR 52837 (September 8, 2003).
    Contingency Provisions. Section 172(c)(9) of the Act requires a 
State to submit contingency measures that will be implemented if an 
area fails to make reasonable further progress \13\ (RFP) or fails to 
attain by the applicable attainment date.
---------------------------------------------------------------------------

    \13\ RFP means ``such annual incremental reductions in emissions 
of the relevant air pollutant as are required by this part or may 
reasonably be required by the Administrator for the purpose of 
ensuring attainment of the applicable national ambient air quality 
standard by the applicable date.'' See section 171(1) of the Act.
---------------------------------------------------------------------------

    On October 20, 1993, the District adopted a request to the Nevada 
State Environmental Commission to require and implement an ``enhanced'' 
vehicle I/M program in Truckee Meadows, upon the occurrence of future 
CO NAAQS exceedances, as the contingency measure intended to fulfill 
the requirement of CAA section 172(c)(9). NDEP included this 
contingency measure as appendix 7 to the State's ``basic'' vehicle I/M 
program for the Truckee Meadows area and submitted the ``basic'' 
vehicle I/M program for the Truckee Meadows to EPA in a SIP revision 
submittal dated June 3, 1994.
    As noted above, the section 172(c)(9) requirement for contingency 
measures are directed at ensuring RFP and attainment by the applicable 
date. We interpret the Act such that this requirement no longer applies 
when an area has attained the standard and is eligible for 
redesignation. See 57 FR 13498, at 13564 (April 16, 1992). See also 
Calcagni memo 1992a, at page 6. Furthermore, we note that CAA section 
175A for maintenance plans provides specific requirements for 
contingency measures that effectively supersede the requirements of 
section 172(c)(9) for these areas.
    Therefore, based on our finding above that Truckee Meadows has 
attained the CO NAAQS, we find that the requirement for contingency 
measures under section 172(c)(9) does not apply for the purposes of our 
evaluation of the State's request for redesignation, and we consider 
the contingency provisions submitted as part of the Truckee Meadows CO 
Maintenance Plan to supersede the contingency measure submitted on June 
3, 1994 and plan no further action on the latter measure.
    Section 176 Requirements. Under section 176(c) of the Clean Air Act 
Amendments of 1990, States were required to establish criteria and 
procedures to ensure that Federally supported or funded projects 
conform to the air quality planning goals in the applicable SIP. 
Section 176(c) further provided that State conformity provisions be 
consistent with Federal conformity regulations that the CAA required 
EPA to promulgate. EPA's conformity regulations are codified at 40 CFR 
part 93, subparts A (``transportation conformity'') and B (``general 
conformity''). ``Transportation conformity'' applies to transportation 
plans, programs, and projects developed, funded, and approved under 
title 23 U.S.C. or the Federal Transit Act, and ``general conformity'' 
applies to all other Federally-supported or funded projects. SIP 
revisions intended to address the conformity requirements are referred 
to herein as ``conformity SIPs.''
    To address the statutory and regulatory requirements related to 
transportation and general conformity, on July 31, 1995, NDEP submitted 
the conformity procedures and criteria that had been adopted by the 
District on December 14, 1994 and by the Truckee Meadows Regional 
Planning Governing Board on February 9, 1995. We have not taken action 
on the July 31, 1995 SIP revision submittal.\14\
---------------------------------------------------------------------------

    \14\ On August 10, 2005, the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) 
was enacted, and among its provisions, this law amended section 
176(c) of the CAA to reduce the content requirements for 
transportation conformity SIPs. Under SAFETEA-LU, with respect to 
transportation conformity, States are required only to develop 
criteria and procedures for interagency consultation and enforcement 
(and enforceability) of commitments for certain control measures and 
mitigation measures. In response to SAFETEA-LU, NDEP is now free to 
request that EPA approve only the three provisions that are required 
to be included in transportation conformity SIPs and that EPA take 
no action on the remainder of the transportation conformity portion 
of the July 31, 1995 SIP submission; however, other options are 
available as well. See 72 FR 24472, at 24484-24485 (May 2, 2007).
---------------------------------------------------------------------------

    EPA believes it is reasonable to interpret the conformity 
requirements as not applicable for purposes of evaluating a 
redesignation request under section 107(d)(3)(E). The rationale for 
this is based on a combination of two factors. First, the requirement 
to submit a conformity SIP continues to apply to areas after 
redesignation to attainment, since such areas would be subject to a 
section 175A maintenance plan. See CAA section 176(c)(5)(B). Second, 
the EPA's conformity rules require the performance of conformity 
analyses in the absence of Federally-approved State rules. See 40 CFR 
51.390(b) and 51.851(b). Therefore, because areas are subject to the 
conformity requirements regardless of whether they are redesignated to 
attainment and must implement conformity under Federal rules if State 
rules are not yet approved, EPA believes it is reasonable to view these 
requirements as not applicable for purposes of evaluating a 
redesignation request. See Wall v. EPA, 265 F.3d 426, 439 (6th Cir. 
2001) upholding this interpretation.
    For the reasons stated above, EPA believes the approval of 
conformity rules into the State's SIP is not a prerequisite for 
redesignation and thus, our inaction on NDEP's July 31, 1995 submittal 
is no obstacle to redesignation of Truckee Meadows to attainment for 
the CO NAAQS. Federal transportation and general conformity rules will 
continue to apply with respect to CO emissions associated with 
transportation plans, programs, and projects as well as other 
Federally-supported or funded projects within Truckee Meadows.
    Vehicle Inspection and Maintenance Program. Under section 
187(a)(4), the CAA requires States with moderate CO nonattainment areas 
to submit a SIP revision that provides for a new or amended vehicle I/M 
program that meets applicable Federal I/M requirements, including the 
``basic'' I/M performance standard. As described in section VII of this 
document, we are proposing to approve the State's ``basic'' I/M program 
for Truckee Meadows, and if we finalize this action as proposed, the 
vehicle I/M requirement for Truckee Meadows under CAA section 187(a)(4) 
will be fulfilled.
    Oxygenated Gasoline Program. Under section 211(m), the CAA requires 
States with CO nonattainment areas with design values of 9.5 ppm or 
greater (based on 1988-1989 data) to submit a SIP revision that 
provides for an oxygenated gasoline program. As described in section VI 
of this document, we are proposing to approve the District's wintertime 
oxygenated gasoline rule, and if we finalize this action as proposed, 
the fuel requirement under CAA section 211(m) will be fulfilled.
    Conclusion with respect to Section 110 and Part D Requirements. 
Based on our evaluation of the various SIP requirements and submittals 
discussed above, we conclude that upon our final approval of the SIP 
submittals evaluated in this action, the State will have met all

[[Page 1191]]

section 110 and part D requirements that apply to the Truckee Meadows 
moderate CO nonattainment area and thereby satisfied the criterion for 
redesignation under CAA section 107(d)(3)(E)(v).

E. The Area Must Have a Fully Approved Maintenance Plan Under CAA 
Section 175A

    Section 107(d)(3)(E)(iv) of the CAA requires, as a pre-condition to 
being redesignated to attainment, that EPA has fully approved a 
maintenance plan for the area as meeting the requirements of section 
175A of the Act. Section 175A sets forth the elements of a maintenance 
plan for areas seeking redesignation from nonattainment to attainment. 
We interpret this section of the Act to require, in general, the 
following core elements: Attainment inventory, maintenance 
demonstration, monitoring network, verification of continued 
attainment, and contingency plan. See Calcagni memo 1992a.
    The purpose of a maintenance plan is to provide for the maintenance 
of the applicable NAAQS for at least 10 years after redesignation. 
Eight years after redesignation, the State must submit a revised 
maintenance plan which demonstrates continued maintenance of the 
applicable NAAQS for an additional 10 years following the initial ten-
year maintenance period. To address the possibility of future NAAQS 
violations, the maintenance plan must contain contingency measures, 
with a schedule for implementation adequate to assure prompt correction 
of any air quality problems. The Redesignation Request and Maintenance 
Plan for the Truckee Meadows Carbon Monoxide Non-Attainment Area 
(September 2005) (``Truckee Meadows CO Maintenance Plan''), which was 
prepared by the District AQMD and adopted by the District Board of 
Health, addresses these core elements, and our evaluation of these 
elements follows.
1. Attainment Inventory
    The plan must contain an attainment year emissions inventory to 
identify a level of emissions in the area which is sufficient to attain 
the CO NAAQS. This inventory is to be consistent with EPA's most recent 
guidance on emissions inventories for nonattainment areas available at 
the time and should represent emissions during the time period 
associated with the monitoring data showing attainment. The inventory 
should also be based on actual ``CO season data'' (i.e., wintertime) 
emissions for the attainment year.
    The District's Truckee Meadows CO Maintenance Plan presents CO 
emissions estimates and projections for years 2002, 2010, and 2016. We 
find year 2002 to be an acceptable year for the baseline year because 
it represents a year in which the Truckee Meadows was in attainment of 
the CO NAAQS. See 70 FR 22803 (May 3, 2005). Based on monitoring data 
collected during 2002, the design value for CO in Truckee Meadows in 
the attainment year was 4.4 ppm, eight-hour average, which is well 
below the NAAQS of 9 ppm. The baseline (2002) inventory in the 
maintenance plan is not documented in detail in the Truckee Meadows CO 
Maintenance Plan itself but is so documented in a separate SIP 
submittal of the same date as the Truckee Meadows CO Maintenance Plan 
(November 4, 2005) of the 2002 CO periodic inventory update.
    As shown in table 1 below, the baseline inventory (2002) covers 
stationary area sources (including stationary source fuel combustion; 
waste disposal, treatment, & recovery; residential wood combustion; and 
miscellaneous area sources (such as wildfires, structure fires, and 
prescribed burning)), nonroad mobile sources (including aircraft, 
nonroad gasoline and diesel vehicles, and railroads), and on-road 
mobile sources (i.e., cars, trucks, and motorcycles) and reflects 
activity profiles and temperatures characteristic of the CO season 
(i.e., Winter). On-road estimates were made based on EPA's MOBILE6 
(high altitude) emission factors, vehicle I/M and anti-tampering 
programs, the oxygenated gasoline requirement, Regional Transportation 
Commission (RTC) transportation activity estimates (VMT, vehicle 
speeds, etc.), and demographic data provided by the planning 
departments for Washoe County, the City of Reno, and the City of 
Sparks. Nonroad mobile source emissions (not including aircraft or 
locomotives) were estimated using EPA's NONROAD emissions model. The 
baseline emissions estimates reflect the basic control measures relied 
upon for attainment and maintenance of the CO NAAQS in Truckee Meadows: 
The Federal Motor Vehicle Control Program, The District's oxygenated 
gasoline requirement, the State's vehicle I/M program for motor 
vehicles, and the District's residential wood combustion program.

              Table 1.--Carbon Monoxide Emissions Inventory, Truckee Meadows, 2002, 2010, and 2016
                                       [Pounds per typical CO season day]
----------------------------------------------------------------------------------------------------------------
                             Source                                    2002            2010            2016
----------------------------------------------------------------------------------------------------------------
Stationary Source Fuel Combustion...............................           2,920           3,321           3,619
Waste Disposal, Treatment & Recovery............................              18              20              22
Residential Wood Combustion.....................................          31,918          35,344          35,344
Miscellaneous Area Sources......................................             613             697             760
Aircraft........................................................           4,175           4,748           5,175
Nonroad Gasoline Vehicles.......................................          68,578          68,712          77,226
Nonroad Diesel Vehicles.........................................           1,645           1,834           1,873
Railroads.......................................................             155             176             192
On-road Vehicles (without safety margin)........................         335,508         263,938         236,754
                                                                 -----------------------------------------------
    Subtotal (excluding safety margins).........................         445,530         378,790         360,965
                                                                 -----------------------------------------------
Safety Margin (assigned to on-road vehicles)....................             N/A          66,740          84,565
                                                                 -----------------------------------------------
        Total (including safety margin).........................         445,530         445,530        445,530
----------------------------------------------------------------------------------------------------------------
Source: District AQMD, Truckee Meadows CO Maintenance Plan, pages 20 and 21.

    The baseline inventory estimates that on-road motor vehicles 
accounted for approximately 75%, residential wood combustion accounted 
for approximately 7%, and nonroad mobile sources (including locomotives 
and

[[Page 1192]]

aircraft) accounted for approximately 17% of the daily (wintertime) CO 
emissions within Truckee Meadows in 2002.
    The methodologies used by the District AQMD to prepare the baseline 
(2002) CO inventory, as described in the appendices to the 2002 CO 
periodic inventory update SIP submittal (dated November 4, 2005), are 
acceptable, and we find the baseline CO inventory for Truckee Meadows 
to be reasonably comprehensive and accurate.
2. Maintenance Demonstration
    A State may generally demonstrate maintenance of the NAAQS by 
either showing that future emissions of a pollutant or its precursors 
will not exceed the level of the attainment inventory, or by modeling 
to show that the future mix of sources and emissions rates will not 
cause a violation of the NAAQS. In either case, to satisfy the 
demonstration requirement, the State should project emissions for at 
least 10 years beyond redesignation.
    Table 1, above, summarizes the baseline (2002) CO emissions 
estimates and future year (2010 and 2016) projections from the Truckee 
Meadows CO Maintenance Plan. The Truckee Meadows CO Maintenance Plan 
projects future year inventories (2010 and 2016) by adjusting the 2002 
baseline inventory to account for changes in population, vehicle miles 
traveled (VMT), and the underlying composite emissions factors for such 
sources as motor vehicles and nonroad mobile sources (using such 
emissions models as MOBILE6 and NONROAD, consistent with the baseline 
(2002) inventory). The population projections used in developing the 
future year emissions projections are consistent with those that were 
adopted by the Truckee Meadows Regional Planning Commission for use in 
developing the Truckee Meadows Regional Plan. The vehicle activity 
assumptions used for the emissions projections are consistent with 
those developed and used by the local Metropolitan Planning 
Organization (MPO), the Regional Transportation Commission of Washoe 
County.
    The projections for 2010 and 2016 reflect the control measures 
relied upon for attainment and maintenance of the CO NAAQS in Truckee 
Meadows, including the Federal Motor Vehicle Control Program, the 
District's oxygenated gasoline program, the State's vehicle I/M 
program, and the District's residential woodburning combustion program.
    Based on the inventory estimates, CO emissions in Truckee Meadows 
are expected to decrease significantly between 2002 and 2016, despite a 
projected 24% increase in population and 38% increase in VMT over that 
period, primarily due to decreases from the on-road motor vehicle 
category associated with increasingly stringent EPA exhaust standards 
for new cars and trucks and the gradual turnover from older more 
polluting, to newer cleaner burning, vehicles. The District AQMD has 
also established safety margins for years 2010 and 2016 and assigned 
the safety margins to the on-road motor vehicle source category. Based 
on our review of the emissions projections, we find that the methods 
used to make the future year projections are acceptable.
    Assuming redesignation of Truckee Meadows for CO early in 2008, the 
plan does not quite project emissions for 10 years beyond 
redesignation, but given how close the out-year in the maintenance plan 
(2016) is to a 10-year horizon year (2018), the low design value (4.4 
ppm) of Truckee Meadows in the attainment year (2002), the flat trend 
in CO emissions documented by the maintenance plan (even assuming use 
of the safety margin), and the expected continuation of all of the 
measures that brought the area to attainment, we find that the plan 
adequately demonstrates maintenance of the CO NAAQS for the initial 
maintenance period (i.e., first 10 years after redesignation).
3. Monitoring Network
    Continued ambient monitoring of an area is required over the 
maintenance period. In the Truckee Meadows CO Maintenance Plan (see 
page 22 of the plan), the District AQMD indicates its intention to 
continue to operate an air quality monitoring network consistent with 
40 CFR part 58 to verify the attainment status. The Truckee Meadows CO 
Maintenance Plan also states that, in addition, Washoe County's CO 
monitoring network will be reviewed annually pursuant to 40 CFR 
58.20(d) to ensure the network meets the monitoring objectives defined 
in 40 CFR part 58, appendix D.
4. Verification of Continued Attainment
    The District AQMD and NDEP have the legal authority to implement 
and enforce the requirements of the Truckee Meadows CO Maintenance 
Plan. This includes the authority to adopt, implement and enforce any 
emission control contingency measures determined to be necessary to 
correct CO NAAQS violations. As noted above, to implement the Truckee 
Meadows CO Maintenance Plan, the District AQMD will continue to monitor 
CO levels in Truckee Meadows. To track progress on the plan, the 
District AQMD has also committed to continue preparing (and submitting 
to EPA) CO emission inventory updates on a triennial schedule (see page 
23 of the Truckee Meadows CO Maintenance Plan). The District AQMD also 
intends to continue residential wood combustion surveys on a triennial 
basis to monitor changes in the types and number of woodburning devices 
operating, and the amount of wood being burned, in Truckee Meadows and 
thereby maintain up-to-date information on this important CO source 
category.
5. Contingency Plan
    Section 175A(d) of the Act requires that maintenance plans include 
contingency provisions, as necessary, to promptly correct any 
violations of the NAAQS that occur after redesignation of the area. 
Under section 175A(d), contingency measures identified in the 
contingency plan do not have to be fully adopted at the time of 
redesignation. However, the contingency plan is considered to be an 
enforceable part of the SIP and should ensure that the contingency 
measures are adopted expeditiously once they are triggered by a 
specified event. The maintenance plan should clearly identify the 
measures to be adopted, a schedule and procedure for adoption and 
implementation, and a specific timeline for action by the State. As a 
necessary part of the plan, the State should also identify specific 
indicators or triggers, which will be used to determine when the 
contingency measures need to be implemented.
    The Truckee Meadows CO Maintenance Plan includes a contingency plan 
consisting of two tiers. As background to the first tier, we note that, 
under the District's emergency episode plan, now codified as District 
rule 050.001, an exceedance of the 8-hour CO NAAQS (i.e. a value 
exceeding 9 ppm (eight-hour average), which means an actual recording 
of 9.5 ppm or greater due to rounding conventions) at any of the 
monitors located in the Truckee Meadows area triggers a Stage 1 (Alert) 
Episode. Stage 1 (Alert) Episode actions include cessation of open 
burning and use of incinerators that are subject to District AQMD 
operating permits, and a request to the public to curtail unnecessary 
motor vehicle use through the District's public outreach program. Under 
certain conditions, Stage 1 (Alert) Episode actions may also include 
the suspension of the burning of any solid fuel in commercial or 
residential stoves and/or fireplaces unless such fuels supply the only 
heat available to the person burning it. We approved the current 
version of the District's emergency

[[Page 1193]]

episode plan on June 18, 2007 (72 FR 33397).
    Under tier 1 of the contingency plan, the District would initiate a 
rulemaking process to redefine the CO stage 1 (alert) episode level 
from 9 ppm to 9.0 ppm. This will have the effect of triggering the 
actions cited above at pre-exceedance levels due to the convention of 
rounding all values from 9.1 ppm through 9.4 ppm down to 9 ppm. In 
other words, under tier 1, the Stage 1 (Alert) Episode criteria level 
for CO will be reduced, as a practical matter, from 9.5 ppm to 9.0 ppm. 
The plan indicates that the District will adopt and implement this 
regulatory change before the next CO season following the triggering 
event.
    Tier 2 will be triggered by a violation of the CO NAAQS (i.e., a 
second non-overlapping exceedance of the 8-hour CO NAAQS in the same 
calendar year from any National Ambient Monitoring Station (NAMS), 
State and Local Monitoring Stations (SLAMS), or Special Purpose 
Monitoring (SPM) site operated within Washoe County). If triggered, 
under tier 2 of the contingency plan, the District AQMD will bring to 
the District Board of Health (within 45 days of the tier 2 triggering 
event) a recommendation for regulatory action, including a timeline for 
adoption and implementation. The contingency plan contains the current 
list of potential CO contingency measures, including an increase in the 
oxygen content requirement under the District's wintertime oxygenated 
gasoline rule, and a request to the State Environmental Commission to 
revise certain provisions of the vehicle I/M program to achieve 
additional CO emissions reductions in Truckee Meadows. The District 
AQMD intends to update this list of potential measures on a triennial 
basis.
    EPA finds that the contingency plan provided in the maintenance 
plan is adequate to ensure prompt correction of a violation and thereby 
complies with section 175A(d) of the Act.
6. Subsequent Maintenance Plan Revisions
    Section 175A(b) of the CAA requires States to submit a subsequent 
maintenance plan revision eight years after the original redesignation 
request and maintenance plan have been approved by EPA. The subsequent 
revision is to provide for maintenance of the air quality standard for 
an additional 10 years following the initial ten-year maintenance 
period. Through adoption of the Truckee Meadows CO Maintenance Plan, 
the District has committed (see page 16 of the Truckee Meadows CO 
Maintenance Plan) to prepare, adopt and submit a revised CO maintenance 
plan eight years after redesignation to attainment.
7. Motor Vehicle Emissions Budgets
    A maintenance plan must contain motor vehicle emissions budgets 
(MVEBs) that, in conjunction with all other sources, are consistent 
with maintenance of the applicable NAAQS. In this case, an MVEB 
represents the total allowable CO emissions allocated to highway and 
transit vehicle use during the maintenance period. The rules and 
requirements governing transportation conformity (codified at 40 CFR 
part 93, subpart A) require certain transportation activities to be 
consistent with the MVEBs contained in control strategy or maintenance 
SIPs (40 CFR 93.118). The projected emissions resulting from the 
transportation activities must be less than or equal to the emissions 
budget levels (40 CFR 93.118(a)).
    The MVEBs for years 2010 and 2016 that are contained in the Truckee 
Meadows CO Maintenance Plan were developed using emission factors 
generated using EPA's MOBILE6 model but also include a safety margin 
equal to the difference between the projected level of overall CO 
emissions in Truckee Meadows in those years and the actual CO emissions 
that were estimated for the baseline year (2002). Safety margins are 
allowed under our transportation conformity rule so long as such 
margins are explicitly quantified in the applicable plan and are shown 
to be consistent with attainment or maintenance of the NAAQS (whichever 
is relevant to the particular plan). See 40 CFR 93.124(a). In this 
instance, the safety margin has been explicitly quantified and shown to 
be consistent with continued maintenance of the CO NAAQS in Truckee 
Meadows through the applicable maintenance period. See section IX.E.2 
of this document.
    We found the MVEBs in the Truckee Meadows CO Maintenance Plan 
adequate in a letter to Leo M. Drozdoff, P.E., Administrator, NDEP, 
dated February 14, 2006. See 71 FR 13386 (March 15, 2006). The adequacy 
finding on the maintenance plan budgets was effective as of March 30, 
2006.
    Our adequacy finding is a preliminary determination that MVEBs are 
consistent with the purposes of the submitted plan (in this case, a 
maintenance plan) and does not constitute an approval action, and in 
today's action, EPA is taking the next step by proposing to approve the 
MVEBs in the Truckee Meadows CO Maintenance Plan for transportation 
conformity purposes. EPA believes that the MVEBs are consistent with 
the control measures identified in the SIP, and that the SIP as a whole 
demonstrates maintenance with the CO NAAAQS. The 2010 and 2016 motor 
vehicle emissions budgets included in the Truckee Meadows Truckee 
Meadows CO Maintenance Plan are shown in Table 2 below.

   Table 2.--On-Road Motor Vehicle Carbon Monoxide Emissions Budgets,
                     Truckee Meadows, 2010 and 2016
                   [Pounds per typical CO season day]
------------------------------------------------------------------------
                                                     2010        2016
------------------------------------------------------------------------
On-Road Motor Vehicle Emissions Budgets.........     330,678     321,319
------------------------------------------------------------------------

8. Conclusion
    Based on the review presented above of the various elements of the 
submitted plan, we propose to approve the Truckee Meadows CO 
Maintenance Plan as a revision to the Truckee Meadows portion of the 
Nevada SIP. In so doing, we find that the Truckee Meadows CO 
Maintenance Plan, adopted on September 22, 2005 by the Washoe County 
District Board of Health and submitted by NDEP to EPA on November 4, 
2005, satisfies the requirements of section 175A of the Act. Our final 
approval of the Truckee Meadows CO Maintenance Plan would satisfy the 
criterion for redesignation under CAA section 107(d)(3)(E)(iv).

X. Proposed Action and Request for Comment

    For the reasons given above, we are proposing to approve, under 
section 110(k)(3) and part D (of title I) of the Act, certain 
submittals by NDEP of revisions to the Nevada SIP that are required to 
provide for attainment of the CO NAAQS in the Truckee Meadows 
``moderate'' CO nonattainment area, to

[[Page 1194]]

approve a maintenance plan under section 110(k)(3) and 175A of the Act, 
and to approve, under section 107(d)(3) of the Act, NDEP's request to 
redesignate Truckee Meadows to attainment for the CO NAAQS.
    First, we are proposing to approve the local oxygenated gasoline 
regulation (Rule 040.095 of the Washoe County District Board of Health 
Regulations Governing Air Quality Management, as amended on September 
22, 2005) as fulfilling the requirements of section 211(m) of the CAA.
    Second, we are proposing to approve the State of Nevada's SIP 
revisions containing the ``basic'' vehicle I/M program for Truckee 
Meadows because we find that the program meets all applicable 
requirements under CAA section 187(a)(4) and EPA regulations. 
Specifically, we are proposing to approve three I/M-related SIP 
revisions submitted by NDEP:
    (i) State Implementation Plan for a Basic Program for the 
Inspection and Maintenance of Motor Vehicles for the Truckee Meadows 
Planning Area, Nevada (June 1994), submitted on June 3, 1994; we are 
excluding the following outdated or superseded elements included in the 
June 3, 1994 SIP revision: the statutory provisions and rules, the 
exhaust gas analyzer specifications, and a contingency measure adopted 
by the Washoe County District Board of Health;
    (ii) Basic I/M Performance Standard Evaluation for motor vehicles 
in the Truck Meadows planning area, submitted on November 2, 2006; and
    (iii) Current Nevada I/M statutory provisions and rules and updated 
exhaust gas analyzer (NV2000) specifications, submitted by NDEP on May 
11, 2007. The submitted Nevada I/M statutory provisions and regulations 
that are proposed for approval are as follows:
     Nevada Revised Statutes (2005), chapter 365: section 
365.060; chapter 366, section 366.060; chapter 445B, sections 445B.210, 
445B.700-845 (excluding NRS 445B.776, 445B.777, and 445B.778); chapter 
481, sections 481.019-481.087; chapter 482, sections 482.029, 482.155-
482.290, 482.385, 482.461, and 482.565; and chapter 484, sections 
484.101, 484.644 and 484.6441;
     Nevada Administrative Code, chapter 445B (January 2007 
revision by the Legislative Counsel Bureau), sections 445B.400 to 
445B.735, excluding subsection (2) of section 445B.595.
    The May 11, 2007 SIP revision submittal is a comprehensive update 
of the statutory and regulatory portion of Nevada's mobile source SIP 
(excluding the rules establishing fuels specifications, alternative 
fuels programs for government vehicles, and any local rules related to 
mobile sources) and is an update of the exhaust gas analyzer 
specifications as approved in 2004 for the State's I/M program in Las 
Vegas and Boulder City.
    In connection with the approval of the State's I/M program, we are 
taking no action on submitted rule NAC 445B.595(2), which extends the 
State's I/M requirements to motor vehicles operated on Federal 
installations located within I/M areas because the Federal government 
has not waived sovereign immunity in the context of vehicle I/M 
programs. Furthermore, we are proposing, under CAA section 110(k)(6), 
to rescind our previous, and erroneous, approval of NAC 445B.595(2) 
into the Nevada SIP in 2004, also on the grounds of sovereign immunity.
    Third, under section 107(d)(3), we are proposing to approve NDEP's 
request (dated November 4, 2005) to redesignate the Truckee Meadows CO 
nonattainment area to attainment. In so doing, we find that:
     The Truckee Meadows nonattainment area has attained the CO 
NAAQS;
     EPA has fully approved the applicable SIP for this area 
under section 110(k) of the CAA;
     The improvement in ambient CO conditions in Truckee 
Meadows is due to permanent and enforceable reductions in emissions 
resulting from implementation of the applicable SIP and applicable 
Federal air pollutant control regulations and other permanent and 
enforceable reductions;
     The State has met all requirements applicable to Truckee 
Meadows under section 110 and part D (of title I) of the CAA; \15\ and
---------------------------------------------------------------------------

    \15\ With respect to this criterion, we will not finalize this 
proposed redesignation until we have finalized proposed approvals of 
the District's wintertime oxygenated gasoline rule and the State's 
basic I/M program, both of which are addressed herein. Also, we find 
that we need not fully approve either the District's nonattainment 
new source review rules or conformity rules as a pre-condition to 
redesignation of Truckee Meadows to attainment for the CO NAAQS.
---------------------------------------------------------------------------

     The State has submitted a maintenance plan, the 
Redesignation Request and Maintenance Plan for the Truckee Meadows 
Carbon Monoxide Non-Attainment Area (September 2005) (``Truckee Meadows 
CO Maintenance Plan''), adopted by the Washoe County District Board of 
Health on September 22, 2005, and submitted by NDEP to EPA on November 
4, 2005, for which we are proposing approval as a revision to the 
Truckee Meadows portion of the Nevada SIP.
    In connection with the Truckee Meadows CO Maintenance Plan, we find 
the following plan elements to be acceptable:
     Baseline (2002) emissions inventory and future year (2010 
and 2016) inventory projections;
     Commitment to continue operating an appropriate ambient CO 
monitoring network;
     Commitment to verify continued attainment through ambient 
monitoring and the preparation and submittal of periodic inventory 
updates and surveys of residential woodburning;
     Contingency provisions under CAA section 175A(d), 
specifically, the adopted two-tier approach with specific triggering 
events and regulatory responses: the first involving a lowering of the 
stage 1 (alert) episode level (tier 1) by the next CO season and the 
second involving a recommendation and timetable for action by the 
Washoe County District Board of Health or the State Environmental 
Commission to tighten certain requirements, potentially including a 
higher wintertime gasoline oxygen content or higher waiver amounts in 
the State's vehicle I/M program, to promptly correct any violation of 
the CO NAAQS after redesignation;
     Commitment to prepare and submit a subsequent CO 
maintenance plan for the Truckee Meadows area eight years after 
redesignation; and
     CO motor vehicle emissions budgets (in terms of pounds per 
typical CO season day) of 330,678 pounds per typical CO season day in 
year 2010 and 321,319 pounds per typical CO season day in year 2016.
    We are soliciting comments on all aspects of this proposed SIP and 
redesignation rulemaking action. We will consider your comments in 
deciding our final action if your comments are received by February 6, 
2008.

XI. 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. For this reason, this proposed action is also not subject to 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 
28355, May 22, 2001). This proposed action merely proposes to approve 
state plan revisions as meeting Federal requirements and redesignate an 
area to attainment for air quality planning purposes and imposes no 
additional requirements beyond those imposed by

[[Page 1195]]

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 
(Pub. L. 104-4).
    This proposed rule also does not have tribal implications because 
it will 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). This proposed action also 
does not have Federalism implications because it does not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This 
action merely proposes to approve state plan revisions implementing a 
Federal standard and to redesignate an area to attainment for air 
quality planning purposes and does not alter the relationship or the 
distribution of power and responsibilities established in the Clean Air 
Act. This rule also is not subject to Executive Order 13045 
``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997), because it is not economically 
significant as defined in Executive Order 12866, and because the Agency 
does not have reason to believe the environmental health or safety 
risks addressed by this rule present a disproportionate risk to 
children.
    In reviewing SIP submissions and redesignation requests, 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 or redesignation 
request for failure to use VCS. It would thus be inconsistent with 
applicable law for EPA, when it reviews a SIP submission or 
redesignation request, 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. 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.).

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Intergovernmental relations, Reporting and recordkeeping requirements.

40 CFR Part 81

    Environmental protection, Air pollution control, National parks, 
Wilderness areas.

    Authority: 42 U.S.C. 7401, et seq.

    Dated: December 26, 2007.
Jane Diamond,
Acting Regional Administrator, Region IX.
 [FR Doc. E7-25636 Filed 1-4-08; 8:45 am]
BILLING CODE 6560-50-P