1 STATE OF NEW JERSEY

2 DEPARTMENT OF ENVIRONMENTAL PROTECTION 3 BUREAU OF AIR QUALITY 4 5 IN THE MATTER OF: : : 6 PROPOSED STATE IMPLEMENTATION PLAN : REVISION TO THE ENHANCED INSPECTION & : 7 MAINTENANCE PROGRAM FOR THE STATE OF : NEW JERSEY EXTENSION OF THE NEW VEHICLE : 8 INSPECTION EXEMPTION FROM 4 TO 5 YEARS :

__________________________________________ 9 10 11 12 13 TRANSCRIPT OF PROCEEDINGS 14 TUESDAY, AUGUST 17, 2010 15 16 17 18 19 20 ROSENBERG & ASSOCIATES, INC. 21 Certified Court Reporters & Videographers 22 425 Eagle Rock Ave., Suite 201 575 Madison Ave. 23 Roseland, New Jersey 07068 New York, New York 1 0022 24 (973) 228-9100 1-800-662-6878 (212) 868-1936 25 www.rosenbergandassociates.com2

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 (Whereupon, the proceedings commence at 10:10 a.m.) 2 MS. DAVIS: Good morning and welcome. I 3 am Sharon Davis, Acting Chief of the Bureau of Air 4 Quality Planning of the Department of Environmental 5 Protection's Division Air Quality. I will be the 6 Hearing Officer this morning. Joining me on the 7 hearing panel today are Mobile Sources Manager, 8 John Gorgol, and the Chief of the Bureau of Motor 9 Vehicles Inspection and Maintenance, Dave West. 10 The purpose of today's hearing is to 11 accept comments on proposed revisions to the State 12 Implementation Plan (SIP) for changes to the 13 Enhanced Inspection and Maintenance Program. Notice 14 of this hearing and the availability of the 15 proposed SIP revision were: Provided through 16 mailings, posted on the Department of Enviromental 17 Protection's website, distributed to libraries, 18 published in six newspapers throughout the State on 19 or about July 12, 2010, and published in the New 20 Jersey Register on August 16, 2010. 21 The subject of this hearing is a revision 22 to New Jersey's Inspection and Maintenance (I/M) 23 program State Implementation Plan (SIP) reflecting 24 changes to the program. A recent New Jersey statute 25 change has specified an extension of the new3

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 vehicle inspection exemption from 4 to 5 years. The 2 Department has also demonstrated that New Jersey's 3 decentralized I/M network (the private inspection 4 facilities, or PIFs) is currently 96 percent as 5 effective as New Jersey's centralized I/M network 6 (the centralized inspection facilities or CIFs). 7 PIFs were previously assumed to be 80 percent as 8 effective as CIFs. 9 This SIP revision evaluates the emission 10 impacts of the enhanced I/M program changes by 11 comparing emission factors calculated using the 12 USEPA MOBILE6 model for the existing and new 13 programs. The emission factors were estimated for 14 2012, which is when the full impact of the 15 anticipated changes are expected to occur. The 16 emission factor, in this case, is grams of 17 pollutant released per mile of vehicle travel, and 18 is a representation value that relates the quantity 19 of a pollutant released to the atmosphere with an 20 activity associated with the release of that 21 pollutant. The model results indicate that there is 22 no difference between emission factors for the 23 existing and new enhanced I/M programs for ozone 24 precursors (volatile organic compounds or VOCs and 25 oxides of nitrogen or Nox). The new enhanced I/M4

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 program provides a small but significant increase 2 in the predicted carbon monoxide relative to the 3 existing program. Therefore, this SIP revision 4 demonstrates that the change from 4 to 5 years new 5 vehicle exemption does not increase emission 6 factors or actual emissions when compared to the 7 current I/M program. This SIP revision demonstrates 8 that the proposed changes to the I/M program do not 9 compromise the State's efforts to meet and/or 10 maintain National Ambient Air Quality Standards 11 (NAAQSs) for ozone or carbon monoxide. 12 In addition, this SIP revision also 13 revises the State's I/M performance standard 14 modeling to account for the proposed I/M program 15 changes. As part of its final rule for I/M 16 requirements, the USEPA established a"model" 17 program for areas that were required to implement 18 enhanced I/M programs. This model program is termed 19 by the United States Environmental Protection 20 Agency (USEPA) as the"I/M performance standard" and 21 is defined by a specific set of program elements. 22 The purpose of the performance standard is to 23 provide a gauge by which the USEPA can evaluate the 24 adequacy and effectiveness of each state's enhanced 25 I/M program. States are required to demonstrate5

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 that their enhanced I/M programs achieve applicable 2 area-wide emission levels for the pollutants of 3 interest that are equal to, or lower than, those 4 which would be realized by the implementation of 5 the model program. This SIP revision shows that the 6 State's new enhanced I/M program meets the 7 applicable USEPA performance standard. 8 The Department is accepting comments on 9 this proposed SIP revision. Information on how to 10 submit comments is provided in the handouts 11 available on the side table in this hearing room. A 12 limited number of copies of the proposal are also 13 available on the side table in this hearing room. 14 Electronic copies of the proposal are available 15 from the Department's website. We have also 16 provided a handout with further information 17 regarding notice of the proposal and information on 18 submitting written comments by August 20, 2010. 19 There is also a handout with information on how 20 hearings are conducted. Please review this 21 information if you intend to comment at today's 22 hearing. 23 Let me remind you that everyone present 24 is invited to sign in at registration desk. We ask 25 that you complete a registration card if you wish6

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 to comment. When your name is called, please come 2 forward. State your name, and spell it for the 3 benefit of the stenographer. Also state the name of 4 your organization, company, or interest that you 5 represent. If you have copies of your prepared 6 written statement, please leave one copy with the 7 stenographer. Also, at this time, please silence 8 all cell phones and pagers. Thank you. 9 That is the end of the opening 10 statement. If you wish to make any statement or 11 comment regarding this revision? 12 AUDIENCE SPEAKER: Well, actually, maybe I 13 think I will. I was expecting a little bit more 14 than this. I wanted to listen to other folks' 15 comments because I believe some of my comments may 16 be moot, but I will enter them into the record just 17 obviously this is a formality here today. 18 MS. DAVIS: Can you state your name? 19 MR. RISALVATO: Sal Risalvato, 20 R I S A L V A T O. I'm the Executive Director of 21 New Jersey Gasoline Seastar and Automotive 22 Association. I represent about 1500 small 23 businesses that are in the gasoline service station 24 business, and most of my members are private 25 inspection facilities.7

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 We were opposed to the change. We still 2 are opposed to the change. However, we are 3 committed to working with the MVC for a smooth 4 transition for further further changes that would 5 benefit both state budget and public and, of 6 course, the small businesses of this state. 7 Everything that you just stated may be 8 factually correct. I don't have a means of 9 checking up to verify everything. Somehow I 10 remember disputing the fact that somebody claimed 11 PIFs were 80 percent as effective as SIFs at one 12 point. Quite frankly, they are 100 percent as 13 effective. So I want to be on the record as making 14 that claim. The one factor that cannot be taken 15 into account, that your department cannot take into 16 account because it's an unknown. 17 However, the experience of my members and 18 the personal experience that I have having spent 23 19 years in a private inspection facility until the 20 last I/M program change was made back in 2000, that 21 experience must be taken into account. And your 22 numbers cannot take that into account. And that is 23 the fact that you are claiming. That the 24 technology of today's cars now makes it possible 25 for people to know when their car is emitting8

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 pollutants. And that the technology keeps our cars 2 running cleaner. And that, in fact, is true. 3 The factor you cannot account for is that 4 a motorist on occasions will ignore those warnings, 5 those lights, those indicators that will alert them 6 to those facts until they are mandated and required 7 to bring the car in for an inspection and get an 8 approval sticker. The car could come in for 9 service a hundred times with the indicator lights 10 on, and as long as the customer is not feeling a 11 malfunction, to them leave it alone. What's it 12 going to cost? 13 In many instances its unknown cost has a 14 relationship to emissions components and computer 15 components. Diagnosis is expensive. Repair is 16 expensive. I'll bring the car back to do that once 17 I start to feel a problem with driveability. That 18 is extremely common. 19 Now, I know you're not addressing the 20 safety issues. I've already exhausted all of 21 that. I'm not going to beat a dead horse. 22 However, the same thing applies to the safety 23 aspects. We are still documenting instances where 24 people bring their cars in are told of serious 25 safety issues, and they are ignored now because we9

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 don't need to put a sticker on the car. The same 2 thing applies with emissions. And our state agency 3 is banking on the fact that the technology is there 4 and it is but there's nothing in that technology 5 that makes it mandatory for those cars to be 6 repaired. 7 We have just extended by a year the 8 period by which somebody can ignore that and 9 pollute. When we from one year to two year 10 inspections if somebody's car starts polluting the 11 day after they got the sticker they can go two 12 years and pollute the air. For some reason on a 13 personal level I am extremely offended when I'm 14 driving by a car that I know is emitting pollutants 15 because it's in the cab of my car. Their exhaust is 16 in the cab of my car, and I am offended by that. 17 That's on a personal basis. 18 On a professional level, and as somebody 19 that lobbies the State of New Jersey, as somebody 20 that has a constituency that performs service for 21 the State of New Jersey as a private inspection 22 facility, I can tell you that our professional 23 experience is that you are wrong. You cannot take 24 that factor into account at all unless you are 25 monitoring every single car as it goes in for10

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 service and record the ignoring of the malfunction 2 until the necessary mandate is approaching or has 3 approached. That factor is an unknown that you 4 cannot take into consideration. 5 I'm going to suggest very strongly that 6 it is our professional experience that it happens 7 very often and that needs to be taken into account. 8 MR. WEST: If I could just -- first of 9 all, thank you for attending today. I know you 10 have a busy schedule. We appreciate your 11 comments. 12 As far as the check engine light being 13 on, what impact in your opinion these cars -- most 14 of these cars would be under warranty in that time 15 frame, 4 to 5 years. So that if that light comes 16 on what impact would -- having coverage under the 17 emissions warranty, wouldn't that be an incentive? 18 MR. RISALVATO: Well, warranties don't go 19 for that long. 20 MR. WEST: Really? 21 MR. RISALVATO: We went through a period 22 where warranties were touted to be -- I guess 23 Chrysler started a number of years ago 7 years/ 24 7,000 miles. Then we've had some manufacturers, 25 most prominant of them is Mitsubishi, 100,000.11

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 However, the standard is three years/36,000 miles. 2 I would find less to argue with if this 3 were a three year inspection because of that. 4 However, at four years we have gone past the 5 expiration warranties. At five years we are 6 exacerbating that. 7 I will tell you that this is more common 8 and more prevalent today because of the economy. We 9 documented safety where people with photos, 10 documentation and people refusing -- not refusing. 11 I don't want to use the word refuse, but declining 12 a repair at this time. And I think many of them 13 have the intention of, okay, you know what maybe 14 next month I'll come in. Or month after that I'll 15 get that. I'll get my tires. Then I'll get my 16 brakes. 17 Just yesterday a family has a motor 18 vehicle inspection done last week. Leaves this past 19 weekend. And because it was no safety, gets their 20 emissions tested. Leaves this weekend on a trip to 21 Maryland. In Maryland their brakes are not working 22 and they pulled into a service facility that says 23 you can't drive the car. That car should have 24 failed the week before in a safety inspection. Now, 25 that's an indication, not of a customer that12

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 declined something, but we have instances 2 particularly with tires that people ignore getting 3 the tire now. Check engine lights in my 23 years in 4 the business it was such a commonplace thing that 5 that check engine light came on and you did not 6 notice a thing different about your car. It was 7 indicating some malfunction. 8 The technology of today's cars aren't -- 9 we have eliminated so much pollution is that the 10 technology is so precise that every component needs 11 to work properly from the temperature, the air to 12 the pressure of the ambient pressure to the speed 13 of the car. All -- every little thing. And when 14 any one or more of those things are not working 15 properly the light comes on. That does not mean my 16 car is going to perform poorly. That does not mean 17 I'm not going to get it started. It does not mean 18 anything until my car does not perform properly. 19 And it's at that time that I will get it addressed. 20 There is way too much of that. And with the 21 difficult economy it has exacerbated. The problem 22 has without a doubt gotten worse in the last 23 several years. 24 Your intentions are good. I'm with you 25 on making all the changes that save the state money13

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 and that save the motorists a hassle. I'm all for 2 it. Your intentions are good. You're missing an 3 important factor. And it is a critical factor. 4 And you have no way of calculating it. 5 Professional experience dictates that you 6 should be aware of that fact. 7 MR. WEST: Now, you indicated that you 8 support the increase in the PIF effectiveness 9 factor which we've increased. 10 MR. RISALVATO: I will tell you without 11 outwardly and openly trashing anybody in the 12 central inspection facilities, because that 13 operation has markedly improved over years, 14 however, for anybody to think that they do a better 15 inspection and have better results than private 16 inspection facilities is nuts. 17 In this whole thing I did a little bit of 18 intelligence by sending people and documenting 19 what's going on in the inspection lanes for no 20 other reason other than to time the inspections, to 21 see how many personnel are working on different 22 aspects of the inspections. And literally I sent 23 two people at the very same time to two different 24 locations. And they got -- I wasn't even looking 25 for this. The report came back to me with two14

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 completely different inspections. And we tried to 2 reason that maybe one aspect of the safety 3 inspection was not performed because the car was 4 newer. Except that in the location they didn't 5 perform a particular inspection of the safety 6 inspection. That car was quite a bit older. 7 So, if anything, it should have been 8 reversed. So I have no idea what their rationale 9 is, or if simply the employees in the lanes are 10 just not doing their prescribed job. I don't have a 11 clue. I sent the people there to record other 12 things. And when this was reported back to me I 13 was floored. It wasn't something that I -- so I 14 wasn't addressing that. 15 However, that suggests to me that any 16 shortcomings in an inspection whether it's an 17 emissions inspection or safety inspection, any 18 shortcomings exist in the central inspection 19 facilities the same as the private inspection 20 facilities, personnel are going to be made to do 21 their jobs in all instance. I could make a case 22 where the personnel in my shops would do a better 23 job than personnel in Parons (phn) lanes. That 24 wouldn't be fair without documents. I have 25 nothing. Again, those people I think for the most15

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 part they're good hard working people. There are 2 instances where they have their shortcomings. They 3 do not perform as is the case in the private 4 facilities. 5 To say that -- to put a number to 6 rationalize -- to analyze and rationalize that 7 there's a 96 percent effectiveness, okay, well it's 8 less offensive than 80 percent. But, folks, we are 9 as effective as them. And if we're going to do 10 that analyzation and rationalization I'm willing to 11 bet that you could find the exact opposite is true. 12 MS. DAVIS: You already made statements 13 that the safety inspection, any changes is not part 14 of this revision. 15 MR. RISALVATO: No. I understand that 16 completely. 17 MS. DAVIS: I'm just clarifying that for 18 the record. 19 MR. RISALVATO: Absolutely. I understand 20 that completely. However, the rationale exists 21 that people won't address a safety issue because 22 they'll put it off for financial reasons. They'll 23 certainly do the same because there's a light on 24 that's not going to cause them any irreparable 25 harm. When the car is not performing properly16

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 they'll address it. 2 But it is common for that light to be 3 on. And if that light was on there isn't anybody 4 that would know there's a performance problem with 5 the car. And I think that if people would ignore 6 safety things because they're not compelled to do 7 them, they will certainly do that. And it is my 8 personal experience and it is an abundance of 9 experience fed to me by my members that that is the 10 case. 11 MR. WEST: Let me just ask a question. If 12 a typical customer comes in for maintenance and the 13 check engine light is on would a typical member of 14 your organization advise? 15 MR. RISALVATO: Yes. 16 MR. WEST: As to what that problem is? 17 MR. RISALVATO: Yes. You all drive cars. 18 You all get your oil changed. You can see oil 19 change signs out on the road as low as 14.95. You 20 could find coupons for free oil changes. Come for 21 a set of tires, free oil change. The object of the 22 oil change is, it's something that's a maintenance 23 that is required on your car. Not everybody honors 24 the interval it's supposed to be done at. But they 25 certainly know if I don't do this my engine -- I'm17

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 going is have thousands of dollars of repairs. 2 So the object is to have the customer 3 come in not to sell them things they don't need, 4 but to point out the things that are needed. And 5 if your car is on my lift in my shop and I say Mr. 6 West look at your brakes. You have 40,000 miles on 7 the car. Look at your brakes. Maybe you've got a 8 thousand or 2,000 miles left. If you've got time 9 if I give you a good estimate and I can do it now, 10 you are going to get it done. Or you may like me -- 11 and the thing is that I'm polite. I presented 12 myself well. It's convenient for me. I'll come 13 back tomorrow. Or can I make an appointment for 14 next week? You are in my shop. That's the object 15 of an oil change. And very competitive price on 16 oil charge. I want you in there so that I can tell 17 you that that's what you need that's my job to tell 18 you what you need. If your check engine light is on 19 you can bet I'm going to tell you. When your check 20 engine light is on and I say Mr. West you're due 21 for inspection next month or in three months, can I 22 check that out for you? You know, I got to hook 23 everything up. Maybe it's 50 dollar diagnosis 24 charge because I have to do all that. I'll do it 25 for you for 20 dollars. Am I making money at the18

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 20? No. But if you need oxygen sensors, if you 2 need catalyst converter, well in order to repair 3 that and I give you a fair estimate there's a 4 profit in that for me to do that. That's my 5 motivation to do that. Not to sell you something 6 you don't need. There are people that will do 7 that. 8 The object is to have your car there and 9 tell you what's wrong with it. It is commonplace -- 10 I think if you spent a day in a shop and you saw -- 11 just observed the items that are declined, and now 12 you'll never have the opportunity of having the 13 little hammer that says you're going to be due for 14 inspection. That is the compelling reason to 15 repair what is there. If it can be ignored it can 16 be ignored. 17 Now, again, we don't have this, you know, 18 documented recently on a emissions kind of thing 19 because I was documenting safety kinds of things. 20 But -- and I have a customer that was willing to 21 sign an affidavit at the time. Brought a car to a 22 member and said listen, my check engine light is 23 not on. I know it's going to pass. I want to sell 24 the car in a couple months, which by the way in 23 25 years I must have had hundreds of cars that said19

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 listen I'm getting rid of the car, don't worry 2 about it. Two years later they were still bringing 3 me the same car. 4 This one's documented, and the customer 5 was willing to sign an affidavit sent to the 6 legislature. I know that everything's, you know, 7 okay with the car. You know, do the inspection and 8 let's sail it through. And my member checks the 9 car and the brakes are really not that good. So he 10 pulls the wheels and there's not a lot of brakes. 11 He calls the customer. The customer says well it 12 hasn't been stopping as well as it used to but I do 13 want to get rid of the car. My member says I can't 14 pass it for inspection. This was a couple months 15 ago. The guy says okay then do it. He knew ahead 16 of time that it just wasn't stopping well but he 17 thought he could get by inspection. He didn't want 18 to do it. 19 Now, that same customer I'm willing to 20 bet if he wasn't due for inspection and his check 21 engine light was -- especially he knew. He came in 22 and it wasn't on so it should pass, that same 23 customer is the exact customer that the light comes 24 on. The car's running fine. I don't need to 25 address this until I'm due for inspection.20

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 We just extended that by a year. That car 2 is polluting for another year. And I don't think 3 you can tell me how we can solve that problem 4 because I can't tell you how to solve that problem. 5 MR. WEST: Okay. Good. Anything else? 6 MS. DAVIS: We'll just take a short 7 break. If there's no further commentors when we 8 get back we'll formally close the hearing. We can 9 take about a 15, 20 minute break. We'll come back 10 at 11. 11 (Whereupon, a recess is taken 12 at 10:40 a.m.) 13 (Whereupon, the proceedings resume 14 at 11:00 a.m). 15 MS. DAVIS: It is now 11 o'clock and it 16 does not appear anybody has appeared who is 17 interested in making comments at this hearing. 18 I will officially close the hearing. 19 Thank you. 20 (Whereupon, the proceedings are 21 concluded at 11:01 a.m.) 22 23 24 2521

www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 1 2 3 4 5 6 C E R T I F I C A T E 7 8 9 10 I, MADALENE PALAZZO, a Certified Court 11 Reporter and Notary Public of the State of New 12 Jersey, do hereby certify that the foregoing is a 13 true and accurate transcript of my stenographic 14 notes of the within proceedings, to the best of my 15 ability. 16 17 18 19 20 21 22 ______________________ 23 MADALENE PALAZZO, C.C.R. 24 25www.rosenbergandassociates.com ROSENBERG & ASSOCIATES, INC. (800) 662-6878 22

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