[Federal Register Volume 62, Number 244 (Friday, December 19, 1997)]
[Proposed Rules]
[Pages 66576-66578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33222]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX 61-1-7270: FRL-5937-4]


Approval and Promulgation of State Implementation Plans (SIP) for 
Texas: Accelerated Vehicle Retirement (AVR) Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
disapprove the SIP revision submitted by the State of Texas for the 
Accelerated Vehicle Retirement (AVR) program which allows stationary 
sources to purchase Emission Reduction Credits (ERCs) through a vehicle 
scrappage program. For areas which face relatively high stationary 
source control costs, Mobile Emission Reduction Credits

[[Page 66577]]

(MERCs) offer stationary sources another option to achieve required 
emission reductions through early retirement and scrappage of motor 
vehicles which fail mandated emissions testing. The EPA is proposing 
disapproval because the State's AVR SIP revision uses a vehicle 
emission testing method from a vehicle Inspection and Maintenance (I/M) 
program that has changed since the ARV SIP was submitted. This action 
is being taken under sections 110 and 182 of the Clean Air Act, as 
amended in 1990 (the Act).

DATES: Comments must be received on or before January 20, 1998.
ADDRESSES: Written comments on this action should be addressed to Mr. 
Thomas H. Diggs, Chief, Air Planning Section, at the EPA Region 6 
Office listed. Copies of the documents relevant to this action area 
available for public inspection during normal business hours at the 
following locations. Persons interested in examining these documents 
should make an appointment with the appropriate office at least 24 
hours before the visiting day.Environmental Protection Agency, Region 
6, Air Planning Section (6PD-L), 1445 Ross Avenue, suite 700, Dallas, 
Texas 75202-2733.Texas Natural Resource Conservation Commission, 12100 
Park 35 Circle, Austin, Texas 78711-3087.

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

SUPPLEMENTARY INFORMATION:

I. Background

    The Act broadly encourages, and in Title I of the Act, mandates, 
States to develop and facilitate market-based approaches for achieving 
the environmental goals of the Act for attainment and maintenance of 
the National Ambient Air Quality Standards, and to meet associated 
emission reduction milestones. The Agency has developed comprehensive 
guidance and rules (as required by the Act) for States and individual 
sources to follow in designing and adopting such programs for inclusion 
in SIPs. The Economic Incentive Program (EIP) Rules (April 7, 1994, 59 
FR 16690-16717) provide a broad framework for the development and use 
of a wide variety of incentive strategies for stationary, area, and/or 
mobile sources. One such approach is the generation and trading of 
ERCs, which historically have been allowed under guidance provided in 
the 1986 Emission Trading Policy Statement. In certain areas where 
emission control costs for stationary sources may be high relative to 
mobile source control costs, creating EIPs which allow for the trading 
of emission reduction credits from mobile sources to stationary sources 
can be beneficial.
    On October 31, 1994, the State of Texas submitted revisions to the 
SIP making changes to the Texas Administrative Code (30 TAC), Chapter 
114: Control of Air Pollution from Motor Vehicles. In this revision, 
section 114.29, Accelerated Vehicle Retirement Program, was added to 
the Code. The new section provides specific requirements for the 
purchase, screening, and processing of scrappage vehicles, so that all 
emission reductions generated through AVR are creditable, enforceable, 
surplus, quantifiable, and permanent. The scrappage program requires 
all potential vehicles to get an ``IM240'' emission test at an I/M 
testing facility.
    The AVR program was planned when the State was intending to 
implement an I/M program which utilized the IM240 emission test in a 
centralized, test-only setting. The I/M program was designed, 
developed, and began operation in January 1995, before being halted by 
the Governor and the Texas Legislature.
    However, various states, including Texas, desired greater 
flexibility in implementing their I/M programs. On September 18, 1995, 
EPA revised and finalized I/M rules that gave states much greater 
flexibility in implementing I/M programs. One element of the I/M 
flexibility amendments included a provision for a new low enhanced 
performance standard that would allow for less stringent I/M programs 
if overall air quality goals were met. In addition, on November 28, 
1995, President Clinton signed the National Highway System Designation 
Act of 1995 (NHSDA) which allowed even greater flexibility in I/M 
programs for states, especially in the area of emission reduction 
estimates.
    In response to this additional flexibility, the State of Texas, in 
a letter dated March 12, 1996, submitted its revised I/M program to the 
Region 6 office within the submission deadlines contained in the NHSDA. 
The EPA granted conditional interim approval (July 11, 1997, 62 FR 
37138) of the revised Texas I/M plan. As a result, the State has 
implemented a decentralized testing network which allows for both test-
and-repair and test-only stations, and includes remote sensing. Testing 
stations administer a two-speed idle test. This program is referred to 
as the Texas Motorist Choice Program. With the IM240 test no longer 
available, the tailpipe emission measurements needed for AVR 
calculations as outlined in section 114.29 of 30 TAC 114 cannot be 
obtained. The EPA believes this is a significant deficiency which 
prohibits approval of the SIP under section 110 of the Act.

II. Evaluation of Accelerated Vehicle Retriement (AVR) SIP

    Several key program elements in EIP rules must generally be 
included in any MERC program to ensure that the EIP principles and 
requirements are met. One of the elements calls for credible, workable, 
replicable procedures for quantifying emissions and/or emission-related 
parameters.
    In the State's submittal, emission reductions in grams/vehicle/year 
for each vehicle are calculated using tailpipe emissions, evaporative 
emissions, vehicle replacement emissions, and vehicle miles traveled. 
Tailpipe emissions are measured by using the IM240 test. The MERCs are 
calculated in tons/year from the emission reductions from all vehicles 
in a scrappage program.
    The owner of a scrappage vehicle must obtain an IM240 vehicle 
emission certificate at a testing facility showing that the vehicle has 
failed the mandated emissions test prior to the sale of the vehicle to 
a scrappage program. A motorist must submit the vehicle to an emissions 
test according to specific procedures outlined in the SIP. In the Texas 
Motorist Choice I/M program, which is in operation, the test stations 
offer only the idle test. The IM240 test is not an option. 
Consequently, tailpipe emissions can no longer be quantified according 
to the procedure outlined in the SIP. This prevents the State from 
satisfying the program element for obtaining credible emissions data.
    In summary, the Texas AVR SIP submittal does not reflect current 
programs which are necessary to implement the scrappage program as 
designed. Based on the analysis, EPA cannot approve the Texas AVR SIP.

III. Proposed Action

    The EPA proposes to disapprove the Texas AVR SIP under sections 110 
and 182 since the State failed to update elements of the AVR SIP 
submitted October 31, 1994. The AVR SIP submittal represents vehicle 
emission testing for vehicle scrappage using an I/M loaded mode 
transient emission test (IM240). The Texas Legislature halted the 
operation of that particular program, and has since chosen to implement 
a different I/M program, the Texas Motorist Choice Program, which 
requires a two-speed idle test. This test has not been shown to be 
equivalent to

[[Page 66578]]

the IM240 test. Consequently, the AVR SIP is not applicable to current 
programs as submitted.
    This revision is not required by the Act. Therefore, this proposed 
disapproval action does not impose sanctions for failure to meet Act 
requirements.
    The EPA is soliciting public comment on the proposed action 
discussed in this document or on other relevant matters. These comments 
will be considered before taking final action. Interested parties may 
participate in the Federal rule making procedure by submitting written 
comments to the EPA Regional office listed in the Addresses section of 
this document.
    Nothing in today's action should be construed as permitting, 
allowing, or establishing a precedent for any future request for 
revision to any SIP. Each request for revision to the SIP shall be 
considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.
    The Regional Administrator's decision to approve or disapprove the 
AVR SIP revision will be based on whether it meets the requirements of 
section 110(a)(2)(A)-(K) and part D of the Act, as amended, and EPA 
regulations in 40 CFR part 51.

IV. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget has exempted this regulatory 
action from Executive Order 12866 review.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. See 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    The EPA's proposed disapproval of the State request under sections 
110 and 301, and subchapter I, part D of the Act does not affect any 
existing requirements applicable to small entities. Any preexisting 
Federal requirements remain in place after this proposed disapproval. 
Federal disapproval of the State submittal does not affect its State-
enforceability. Moreover, the EPA's disapproval of the submittal does 
not impose any new Federal requirements. Therefore, the EPA certifies 
that this proposed disapproval action does not have a significant 
impact on a substantial number of small entities because it does not 
remove existing requirements, nor does it impose any new Federal 
requirements.

C. Unfunded Mandates Act

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

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Ozone, Volatile 
organic compounds.

    Dated: December 10, 1997.
Lynda F. Carroll,
Acting Deputy Regional Administrator, Region VI.
[FR Doc. 97-33222 Filed 12-18-97; 8:45 am]
BILLING CODE 6560-50-F