[Federal Register Volume 61, Number 92 (Friday, May 10, 1996)]
[Proposed Rules]
[Pages 21404-21412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11758]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IL102-1-6693; FRL-5503-9]


Approval and Promulgation of Air Quality Implementation Plans; 
Illinois: Motor Vehicle Inspection and Maintenance

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve portions and to conditionally 
approve other portions of a vehicle inspection and maintenance (I/M) 
State Implementation Plan (SIP) revision submitted by the State of 
Illinois on June 29, 1995, based on the State's April 22, 1996, letter 
of commitment to submit certain items within one year of the final 
conditional approval. This revision provides for the adoption and 
implementation of an enhanced I/M program in both the Chicago severe 
ozone nonattainment area and the East St. Louis moderate ozone 
nonattainment area. Both areas are required to attain the National 
Ambient Air Quality Standards (NAAQS) as specified under the Clean Air 
Act (Act) by 2007 and 1996 respectively. Illinois indicates that the 
implementation of this important program in the two areas stated above, 
will reduce vehicle emissions which contribute to the formation of 
urban smog in Illinois by more than 38 tons per day. In support of the 
proposed conditional approval of the SIP revision, the State has 
submitted the State's Request-For-Proposals as supplemental information 
to the SIP. In addition, the State has committed in an April 22, 1996, 
letter to submit to EPA as supplemental information in support of the 
SIP, the State's final I/M contract and any rules necessary to address 
the requirements identified in the analysis section of this document.

DATES: Comments must be received on or before June 10, 1996.

ADDRESSES: Copies of Illinois' I/M SIP submittal, EPA's proposals and 
rulemakings, and other documents pertinent to this proposed notice are 
available at the following address: U.S. Environmental Protection 
Agency, Region 5, Air and Radiation Division, Air Programs Branch, 77 
West Jackson Boulevard, Chicago, Illinois 60604.
    Comments on this proposed rule should be addressed to: J. Elmer 
Bortzer, Chief, Regulation Development Section, Air Programs Branch 
(AR-18J), United States Environmental Protection Agency, Region 5, 77 
West Jackson Boulevard, Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Environmental 
Engineer, Regulation Development Section, Air Programs Branch (AR-18J), 
United States Environmental Protection Agency, Region 5, 77 West 
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6061.
    Anyone wishing to come to Region 5 offices should first contact 
Francisco J. Acevedo.

SUPPLEMENTARY INFORMATION:

I. Introduction

    Motor vehicles are significant contributors of volatile organic 
compounds (VOC), carbon monoxide (CO), and nitrogen oxide (NO<INF>X) 
emissions. The motor vehicle inspection and maintenance program is an 
effective means of reducing these emissions. Despite improvements in 
emission control technology in past years, mobile sources in urban 
areas continue to remain responsible for roughly half of the emissions 
of VOC causing ozone, and most of the emissions of CO. They also emit 
substantial amounts of nitrogen oxides and air toxics. This is because 
the number of vehicle miles traveled has doubled in the last 20 years 
to 2 trillion miles per year, offsetting much of the technological 
progress in vehicle emission control over the same period. Projections 
indicate that the steady growth in vehicle miles will continue.
    Under the Act, the EPA is pursuing a three-point strategy to 
achieve emission reductions from motor vehicles. The development and 
commercialization of cleaner vehicles and cleaner fuels represent the 
first two elements of the strategy. These developments will take many 
years before cleaner vehicles and fuels dominate the fleet and 
favorably impact the environment. This document deals with the third 
element of the strategy, inspection and maintenance, which is aimed at 
the reduction of emissions from the existing fleet by ensuring that 
vehicles are maintained to meet the emission standards established by 
EPA. Properly functioning emission controls are necessary to keep 
pollution levels low. The driving public is often unable to detect a 
malfunction of the emission control system. While some minor 
malfunctions can increase emissions significantly, they do not affect 
drivability and may go unnoticed for a long period of time. Effective 
I/M programs can identify excessive emissions and assure repairs. The 
EPA projects that sophisticated I/M programs such as the one being 
proposed in this rulemaking in Illinois will identify emission related 
problems and prompt the vehicle owner to obtain timely repairs thus 
reducing emissions.
    The Act requires that polluted cities adopt either a ``basic'' or 
``enhanced'' I/M program, depending on the severity of the pollution 
and the population of the area. Moderate ozone nonattainment areas, 
plus marginal ozone areas with existing or previously required I/M 
programs in Census-defined urbanized areas, fall under the ``basic'' I/
M requirements. Basic and enhanced I/M programs both achieve their 
objective by identifying vehicles that have high emissions as a result 
of one or more malfunctions, and requiring them to be repaired. An 
``enhanced'' I/M program covers more vehicles in operation in the 
fleet, employs inspection methods which are better at finding high 
emitting vehicles, and has additional features to better assure that 
all vehicles are tested properly and effectively repaired. The Act 
directed EPA to establish a minimum performance standard for enhanced 
I/M programs. The standard is based on the performance achievable by 
annual inspections in a centralized test program. States have 
flexibility to design their own programs if they can show that their 
program is as effective as the model program used in the performance 
standard. Naturally, the more effective the program the more credit a 
State will get towards the emission reduction requirement. An effective 
program will help to offset emissions associated with growth in vehicle 
use and allow for industrial and/or commercial growth.
    The EPA and the States have learned a great deal about what makes 
an I/M program effective since the Clean Air Act of 1977 first required 
I/M programs for polluted areas. There are three major keys to an 
effective program:
    (1) Given the advanced state of current vehicle design and 
anticipated technology changes, the ability to accurately fail problem 
vehicles and pass clean ones requires improved test equipment and test 
procedures;
    (2) Comprehensive quality control and aggressive enforcement are 
essential to assuring the testing is done properly;
    (3) Skillful diagnostics and capable mechanics are important to 
assure that failed cars are fixed properly.
    These three factors are missing in most older I/M programs. 
Specifically, the idle and 2500 RPM/idle short tests and anti-tamper 
inspections used in current I/M programs are not as effective in 
identifying and reducing in-use emissions from the types of vehicles in 
the current and future fleet. Also, covert audits by EPA and State 
agencies

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typically discover improper inspection and testing 50 percent of the 
time in test-and-repair stations indicating poor quality control. 
Experience has shown that quality control at high-volume test only 
stations is usually much better. And, finally, diagnostics and 
mechanics training are often poor or nonexistent.
    On November 5, 1992 (57 FR 52950), EPA established a high-tech 
emission test for high-tech cars. This I/M test, known as the IM240 
test, is so effective that biennial test programs yield almost the same 
emission reduction benefits as annual programs. The test can also 
accurately measure NO<INF>X emissions where NO<INF>X is important to 
address an ozone problem. The addition of the pressure and purge test 
increases the benefit even more and results in lower testing costs and 
consumer time demands. The pressure test is designed to find leaks in 
the fuel system, and the purge test evaluates the functionality of the 
vapor control system. In addition, EPA published changes to the I/M 
rule in the Federal Register on October 18, 1995, (60 FR 48029) in 
order to provide greater flexibility to States required to implement I/
M programs.

II. Background

    The State of Illinois currently contains two ozone nonattainment 
areas which are required to implement I/M programs in accordance with 
the Act. The Chicago severe-17 ozone nonattainment area contains the 
Chicago, Aurora, Crystal Lake, Elgin, Joliet, and Round Lake Beach-
McHenry urbanized areas. The Federal I/M rule requires the Chicago 
urbanized area to implement an enhanced I/M program. Since the I/M rule 
does not require enhanced I/M programs in severe urbanized areas with a 
Census population of less than 200,000, the remaining five cities in 
the Chicago nonattainment area will be required to implement only a 
basic I/M program based on their 1990 Census-defined urbanized area 
populations. The East St. Louis moderate ozone nonattainment area 
contains the Illinois portion of the St. Louis and Alton urbanized 
areas. Both areas are required to implement a Basic I/M program in the 
nonattainment area. On June 29, 1995, IEPA submitted to EPA a SIP 
revision for the implementation of an enhanced I/M program to cover 
both the Chicago and the East St. Louis nonattainment areas. This 
submittal includes the Vehicle Emissions Inspection Law of 1995 (625 
ILCS 5/13B), P.A. 88-533, which became effective January 18, 1994. That 
statute provides authority for IEPA to implement an enhanced I/M 
program and meet EPA's requirements for such a program. P.A. 88-533 
mandates enhanced I/M testing for the Metro-East area and certain 
portions of the Chicago nonattainment area. In addition, the Illinois 
submittal includes I/M regulations (R94-19 and R94-20) adopted on 
December 1, 1994, by the Illinois Pollution Control Board (Board), 
which include emissions standards based upon EPA's preferred IM240 
loaded mode exhaust emissions standard. On December 23, 1994, the 
amended rule for R94-20 was published in the Illinois State Register 
and its effective date was December 12, 1994. On December 30, 1994, the 
amended rule R94-19 was published in the Illinois Register and had an 
effective date of December 14, 1994. On April 22, 1996, IEPA submitted 
the State's I/M Request-For-Proposal as part of the Illinois SIP 
submittal.
    Under the Environmental Protection Act [415 ILCS 5 (1992)], the 
Board has the authority to adopt air pollution regulations for the 
State of Illinois. The adopted regulations and the legislation 
submitted by Illinois changes the existing program from a basic I/M 
program to a fully enhanced I/M program in both of Illinois' ozone 
nonattainment areas. EPA summarizes the requirements of the Federal I/M 
regulations, as found in 40 CFR 51.350-51.373, and its analysis of the 
state submittal below. Parties desiring additional details on the 
Federal I/M regulation are referred to the November 5, 1992, Federal 
Register notice (57 FR 52950), or 40 CFR 51.350-51.373.

III. EPA's Analysis of the Illinois, Enhanced I/M Program

    As discussed above, section 182 of the Act requires that States 
adopt and implement updated regulations for I/M programs in moderate 
and above ozone nonattainment areas. The following sections of this 
notice summarize the requirements of the Federal I/M regulations and 
address whether the elements of the State's submittal comply with the 
Federal rule.

Applicability 40 CFR 51.350

    Section 182(c)(3) of the Act and 40 CFR 51.350(a) require States 
which contain areas classified as serious or worse ozone nonattainment 
and containing metropolitan statistical areas (MSAs) with a population 
of 200,000 or more to implement an enhanced I/M program. As noted 
above, the State of Illinois contains the Aurora, Chicago, Crystal 
Lake, Elgin, Joliet, and Round Lake beach-McHenry urbanized areas in 
its Chicago Severe-17 ozone nonattainment area, but the Chicago 
urbanized area is the only area which contains a population of more 
than 200,000, based on 1990 Census data. The remaining urbanized areas 
in the Chicago nonattainment area with populations less than 200,000 
are required to implement a basic I/M program. In addition, section 
182(b)(4) of the Act and 40 CFR part 51.530(a) require States with 
moderate ozone nonattainment areas containing 1990 census-defined 
urbanized areas to implement a basic I/M program. The State of Illinois 
contains the East St. Louis moderate nonattainment area where this 
requirement applies.
    The Illinois submittal contains the legal authority and regulations 
necessary for IEPA to establish the program boundaries and operate an 
enhanced I/M program in ozone nonattainment areas stated above. P.A. 
88-533 specifies the geographic boundaries of the program in both ozone 
nonattainment areas. The program boundaries described in the Illinois 
submittal meet the Federal I/M requirements under Sec. 51.350 and are 
approvable. The Federal I/M regulation requires that the State I/M 
program must operate until it is no longer necessary. EPA has 
determined that a SIP which does not terminate prior to the attainment 
deadline for each applicable area (i.e. 2007 for the Chicago severe-17 
ozone nonattainment area, and 1996 for the Metro-East moderate ozone 
nonattainment area) satisfies this requirement. The State I/M submittal 
does not contain a termination provision and is therefore approvable. 
EPA proposes to approve this section of the Illinois submittal.

Enhanced I/M Performance Standard 40 CFR 51.351

    The enhanced I/M program must be designed and implemented to meet 
or exceed a minimum performance standard, expressed in area-wide 
average grams per mile (gpm), for emission levels of certain 
pollutants. The performance standard shall be established using local 
characteristics, such as vehicle mix and local fuel controls, and the 
following model I/M program parameters: network type, start date, test 
frequency, model year coverage, vehicle type coverage, exhaust emission 
test type, emission standards, emission control device, evaporative 
system function checks, stringency, waiver rate, compliance rate and 
evaluation date. The emission levels achieved by the State's program 
design shall be calculated using the most current version, at the time 
of submittal, of the EPA mobile source emission factor model. At the 
time of the Illinois submittal, the most current version was

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MOBILE5a. Areas shall meet or exceed the performance standard for the 
pollutants which cause them to be subject to I/M requirements. In the 
case of ozone nonattainment areas, the performance standard must be met 
for both nitrogen oxides (NO<INF>X) and volatile organic compounds 
(VOCs). Urban Airshed Modeling (UAM) has been conducted in both the 
Chicago and St. Louis regions. In the Chicago area, the UAM has 
demonstrated that control of NO<INF>X within the nonattainment area is 
counterproductive in controlling ambient ozone. IEPA has petitioned 
for, and has received from EPA, a waiver from Clean Air Act NO<INF>X 
control requirements, including the requirement to meet the NO<INF>X 
enhanced I/M performance standard. EPA is currently in the process of 
evaluating the UAM data and an IEPA NO<INF>X waiver request for the St. 
Louis region. NO<INF>X testing will be restricted to tests conducted 
for program evaluation purposes in accordance with 40 CFR Part 
51.353(c).
    The June 30, 1995, Illinois submittal includes three alternative 
enhanced program options based on the use of either ASM5015, ASM2, or 
IM240 networks. All three options use the following program design 
parameters: Centralized test only network; 1986 start date; biennial 
frequency; 1968 and newer model year coverage; Vehicle type include 
LDGV, LDGT1, LDGT2 and HDGV; IM240 for 1981 and newer vehicles, and 
idle for 1968-1980 LDGV's and LDGT's and 1968 and later HDGV's; purge 
test on 1981 and newer LDGV's and LDGT's undergoing either ASM or 
IM240; pressure test of gas cap; stringency rate of 20 percent for 1980 
and older vehicles; waiver rate of 3 percent and a 96 percent 
compliance rate.
    The Illinois program design parameters meet the Federal I/M 
regulations and are approvable. The emission levels achieved by the 
State, for each area, were modeled using MOBILE5a. The modeling 
demonstration was performed correctly, using local characteristics 
where available, and it demonstrated that the program design will meet 
the enhanced I/M performance standard, expressed in grams per mile, for 
VOCs and NO<INF>X for each milestone and for the attainment deadline. 
The modeling demonstration submitted by the State is approvable. EPA 
proposes to approve this section of the submittal.

Network Type and Program Evaluation 40 CFR 51.353

    Enhanced I/M programs shall be operated in a centralized test only 
format, unless the State can demonstrate that a decentralized program 
is equally effective in achieving the enhanced I/M performance 
standard. The enhanced program shall include an ongoing evaluation to 
quantify the emission reduction benefits of the program and to 
determine if the program is meeting the requirements of the Act and the 
Federal I/M regulations. The SIP shall include details on the program 
evaluation and a schedule for submittal of biennial evaluation reports, 
data from a State monitored or administered mass emission test of at 
least 0.1 percent of the vehicles subject to inspection each year, 
description of the sampling methodology, the data collection and 
analysis system and the legal authority enabling the evaluation 
program.
    The State legislative authority and the State I/M regulations 
provide for a centralized, test-only network. Illinois' centralized, 
test only network type is approvable. The submittal does not, however, 
include provisions for on-going program evaluation to satisfy all of 
the requirements of 40 CFR part 51.353. Specifically, the State must 
submit schedules for program evaluations and methodologies by which 
this biennial program evaluation will be carried out, as required by 40 
CFR part 51.353. EPA proposes to conditionally approve this section of 
the Illinois enhanced I/M SIP based on the April 22, 1996, letter and 
phone conversation record committing to submit to EPA as supplemental 
information in support of the SIP the necessary documentation within 
one year of the final conditional approval. In addition, the State has 
committed to submit to EPA biennial program evaluation reports meeting 
the requirements of 40 CFR part 51.353 starting at the end of the 
program's first biennial cycle.

Adequate Tools and Resources 40 CFR 51.354

    The Federal I/M regulation requires States to demonstrate that 
adequate funding of the program is available. A portion of the test fee 
or a separately assessed per year vehicle fee shall be collected, 
placed in a dedicated fund and used to finance the program. Alternative 
funding approaches are acceptable if it is demonstrated that the 
funding can be maintained. Reliance on funding from a State or local 
General Fund is not acceptable unless doing otherwise would be a 
violation of the State's constitution. The SIP shall include a detailed 
budget plan which describes the source of funds for personnel, program 
administration, program enforcement and purchase of equipment. The SIP 
shall also detail the number of personnel dedicated to the quality 
assurance program, data analysis, program administration, enforcement, 
public education and assistance and other necessary functions. A.P. 88-
533 prevents the IEPA from charging motor vehicle owners for 
inspections required under this law. Instead, A.P. 88-533 states that 
the Vehicle Inspection Fund, which was a fund created in the State 
treasury for the purpose of receiving money from the Motor Fuel Tax and 
other sources, shall be used for the payment of the cost of the 
program, including reimbursement of those agencies of the State that 
incur expenses in the administration and enforcement of the program. 
EPA proposes to approve this section of the Illinois submittal.

Test Frequency and Convenience 40 CFR 51.355

    The enhanced I/M performance standard assumes an annual test 
frequency; however, other schedules may be approved if the performance 
standard is achieved. The SIP shall describe the test year selection 
scheme and shall include the legal authority, regulations or contract 
provisions necessary to implement and enforce the test frequency 
requirement. The program shall be designed to provide convenient 
service to motorists by ensuring short waiting times, short driving 
distances and regular testing hours. The Illinois enhanced I/M law of 
1995 provides the legal authority to implement and enforce biennial 
test frequency for all subject vehicles. New vehicles are exempt from 
testing for two years, requiring the vehicle to be initially tested in 
the second calendar year after the vehicle model year. Based on the 
performance standard modeling provided by the State, the enhanced I/M 
program meets the performance standard accounting for biennial test 
frequency. P.A. 88-533 also requires that the program be designed so 
that covered vehicle owners reside within 12 miles of an official 
inspection station. In addition, the law requires the program to be 
designed in such a way that sufficient inspection capacity at the 
station is so that the usual wait before the start of an inspection 
does not exceed twenty minutes. The test frequency and convenience 
section is approvable and EPA is proposing to approve.

Vehicle Coverage 40 CFR 51.356

    The performance standard for enhanced I/M programs assumes coverage 
of all 1968 and newer model year light duty vehicles and light duty 
trucks up to 8,500 pounds gross vehicle

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weight rating (GVWR), and includes vehicles operating on all fuel 
types. Other levels of coverage may be approved if the necessary 
emission reductions are achieved. Vehicles registered or required to be 
registered within the I/M program area boundaries, and fleets primarily 
operated within the I/M program area boundaries belonging to the 
covered model years and vehicle classes comprise the subject vehicles. 
Fleets may be officially inspected outside the normal I/M program test 
facilities, if such alternatives are approved by the program 
administration, but shall be subject to the same test requirements 
using the same quality control standards as non-fleet vehicles and 
shall be inspected in independent, test-only facilities, according to 
the requirements of 40 CFR part 51.353(a).
    The Federal I/M regulation requires that the SIP shall include the 
legal authority or rule necessary to implement and enforce the vehicle 
coverage requirement, a detailed description of the number and types of 
vehicles to be covered by the program and a plan for how those vehicles 
are to be identified, including vehicles that are routinely operated in 
the area but may not be registered in the area, and a description of 
any special exemptions, including the percentage and number of vehicles 
to be impacted by the exemption.
    The Illinois Vehicle Inspection Law of 1995 requires coverage of 
all 1968 and newer vehicles registered or required to be registered in 
the I/M program area, except those vehicles which run on diesel or 
exclusively by electricity. The modeling demonstration submitted with 
the SIP narrows the vehicle coverage to LDGV, LDGT1, and LDGT2. The 
Illinois legislation provides the legal authority to implement and 
enforce the vehicle coverage. This level of coverage is approvable 
because it provides the necessary emission reductions. The modeling 
demonstration does contain estimates of the number of registered 
vehicles in the area. However, the State's June 29, 1995, SIP submittal 
does not adequately address fleet testing requirements. Existing 
legislation allows for the self testing of fleets, but the submittal 
fails to address the specific requirements involved in fleet testing. 
The State also did not provide a description of the impact vehicle 
exemptions will have on the subject fleet. The modeling demonstration 
submitted by the State does not account for these exemptions in the 
emission reduction analysis. The State must describe the extent of the 
exemption's impact, in accordance with 40 CFR part 51.356, in order for 
EPA to fully approve this section of the State submittal. EPA proposes 
to conditionally approve this section based on the April 22, 1996, 
letter to EPA committing to address the requirements of 40 CFR 51.356 
with regard to fleets, within one year of the final conditional 
approval.

Test Procedures and Standards 40 CFR 51.357

    Written test procedures and pass/fail standards are required to be 
established and followed for each model year and vehicle type included 
in the program. Federal test procedures and standards are found in 40 
CFR 51.357 and in the EPA document entitled ``High-Tech I/M Test 
Procedures, Equipment Standards, Quality Control Requirements, and 
Equipment Specifications'', EPA-AA-EPSD-IM-93-1, finalized in April, 
1994. A.P. 88-533 provides the State the authority to establish test 
procedures according to the needs of the program. The Illinois 
submittal also includes I/M regulations (R94-19 and R94-20) adopted on 
December 1, 1994, by the Illinois Pollution Control Board (Board) which 
include emissions standards based upon EPA's preferred IM240 loaded 
mode exhaust emissions standard. IEPA has asked I/M contract bidders to 
address in detail the requirements of this section in its Request-For-
Proposal (RFP). EPA proposes to conditionally approve this section of 
the SIP based on the State's commitment to submit to EPA as 
supplemental information in support of the SIP its final signed I/M 
contract addressing the requirements of 40 CFR part 51.357 within one 
year of EPA's final conditional approval.

Test Equipment 40 CFR 51.358

    The Federal regulation requires computerized test systems for 
performing any measurement on subject vehicles. The Federal I/M 
regulations requires that the State SIP submittal include written 
technical specifications for all test equipment used in the program. 
The specifications shall describe the emission analysis process, the 
necessary test equipment, the required features and written acceptance 
testing criteria and procedures.
    A.P. 88-533 provides the general authority for the State to 
establish the designation of official test equipment and testing 
procedures. The Illinois submittal also includes I/M regulations (R94-
19 and R94-20) which include emissions standards based upon EPA's 
preferred IM240 loaded mode exhaust emissions standard. IEPA has 
addressed the requirements of this section in its RFP released February 
29, 1996. EPA proposes to conditionally approve this section of the SIP 
based on the State's April 22, 1996, commitment to submit to EPA as 
supplemental information in support of the SIP its final signed 
contract addressing the requirements of 40 CFR part 51.358 within one 
year of EPA's final conditional approval.

Quality Control 40 CFR 51.359

    Quality control measures shall ensure that emission measurement 
equipment are calibrated and maintained properly, and that inspection, 
calibration records and control charts are accurately created, recorded 
and maintained. The Illinois submittal contains general legal authority 
in A.P. 88-533 which requires IEPA to establish an enhanced program 
containing procedures to assure the correct operation, maintenance and 
calibration of test equipment, and also procedures for certifying test 
results and for reporting and maintaining relevant data and records. 
Illinois' RFP requires bidders as part of their Technical proposal to 
submit a Quality Assurance Plan which addresses the requirements of 
this section. EPA proposes to conditionally approve this section of the 
SIP based on the State's April 22, 1996 commitment to submit to EPA as 
supplemental information in support of the SIP its final signed 
contract and the contractor's Quality Assurance Plan addressing the 
quality control requirements of 40 CFR part 51.359 within one year of 
EPA's final conditional approval.

Waivers and Compliance Via Diagnostic Inspection 40 CFR 51.360

    The Federal I/M regulation allows for 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 prescribed criteria are met. For enhanced I/M programs, an 
expenditure of at least $450 in repairs, adjusted annually to reflect 
the change in the Consumer Price Index (CPI) as of 1989, is required in 
order to qualify for a waiver. Waivers can only be issued after a 
vehicle has failed a retest performed after all qualifying repairs have 
been made. Any available warranty coverage must be used to obtain 
repairs before expenditures can be counted toward the cost limit. 
Tampering related repairs shall not be applied toward the cost limit. 
Repairs must be appropriate to the cause of the failure. Repairs for 
1980 and newer model year vehicles must be performed by a recognized 
repair technician. The Federal regulation

[[Page 21409]]

allows for compliance via a diagnostic inspection after failing a 
retest on emissions and requires quality control of waiver issuance. 
The SIP must set a maximum waiver rate and must describe corrective 
action that must be taken if the waiver rate exceeds that committed to 
in the SIP.
    The Illinois SIP submittal contains the necessary authority in A.P. 
88-533 to issue waivers, set and adjust cost limits, and administer and 
enforce the waiver system. The Illinois law requires that IEPA certify 
whether a vehicle that has failed a vehicle emission retest qualifies 
for a waiver of the emission inspection standards if the following 
criteria are met: The vehicle has received all repairs and adjustments 
for which it is eligible under any emission performance warranty 
provided under section 207 of the Act; IEPA determines by normal 
inspection procedures that the vehicle's emission control devices are 
present and appear to be properly connected and operating; consistent 
with 40 CFR 51.360 for vehicles required to be tested under the 
Illinois law, a minimum expenditure of $450 in emission-related repairs 
exclusive of tampering-related repairs have been made; repairs for 
vehicles of model year 1981 and later are conducted by a recognized 
repair technician; evidence of repair is presented consisting of either 
signed and dated receipts identifying the vehicle and describing the 
work performed and amount charged for eligible emission-related 
repairs, or an affidavit executed by the person performing the eligible 
emission related repairs; and that the repairs have resulted in an 
improvement in vehicle emissions as determined by comparison of initial 
and final retest results.
    The State of Illinois has chosen not to allow compliance via a 
complete documented physical and functional diagnosis and inspection 
which shows that no additional emission-related repairs are needed. The 
State has set a maximum waiver rate of 3 percent for both pre-1981 and 
for 1981 and later vehicles. Illinois used MOBILE5a and assumed a 
maximum waiver rate of 3 percent for 1980 and older model year vehicles 
and 3 percent for 1981 and newer vehicles. In the event the actual 
waiver rate exceeds the planned maximum used for estimating the 
emission reduction benefit, the State will need to remodel to assess 
the emission reduction benefits based on the actual waiver rate. This 
section is approvable and EPA is proposing to approve.

Motorist Compliance Enforcement 40 CFR 51.361

    The Federal regulations require the use of registration denial to 
ensure compliance with the requirements of the I/M program unless an 
exception for use of an alternative is approved. Registration denial 
enforcement consists of rejecting an application for initial 
registration or registration for a used vehicle unless the vehicle has 
complied with the I/M requirements prior to the granting of the 
application. The SIP shall provide information concerning the 
enforcement process, legal authority to implement and enforce the 
program, a commitment to a compliance rate to be used for modeling 
purposes and to be maintained in practice. The Illinois SIP contains an 
alternative compliance system to that of registration denial. The 
Illinois compliance approach uses computer matching of vehicle 
registration records and inspection records to identify violations. The 
Illinois Secretary of State (SOS) is required under A.P. 88-533 to 
suspend either the driving privileges or the vehicle registration, or 
both, of any vehicle owner who has not complied with the requirements 
of A.P. 88-533. A suspension under this requirement would not be 
terminated until proof of compliance has been submitted to the SOS. In 
the I/M SIP, Illinois commits to the level of motorist enforcement 
necessary to ensure a compliance rate of no less than 96 percent among 
subject vehicles in the program area. If it is determined as part of 
the required program evaluation that the I/M program is not meeting the 
compliance rate, Illinois will need to investigate the problem and 
institute changes to improve the compliance rates. EPA proposes to 
approve this section of the Illinois SIP.

Motorist Compliance Enforcement Program Oversight 40 CFR 51.362

    The Federal I/M regulation requires that the enforcement program 
shall be audited regularly and shall follow effective program 
management practices, including adjustments to improve operation when 
necessary. The SIP shall include quality control and quality assurance 
procedures to be used to insure the effective overall performance of 
the enforcement system. An information management system shall be 
established which will characterize, evaluate and enforce the program. 
The legal authority for the implementation of an I/M program is found 
in A.P. 88-53. This statute provides the authority necessary to develop 
and implement the enforcement program oversight element of the I/M 
program. EPA proposes to conditionally approve this portion of the 
State's submittal based on the April 22, 1996, letter to EPA committing 
to addressing the requirements of 40 CFR part 51.362 within one year of 
the conditional approval.

Quality Assurance 40 CFR 51.363

    An ongoing quality assurance program shall be implemented to 
discover, correct and prevent fraud, waste, and abuse in the program. 
The program shall include covert and overt performance audits of the 
inspectors, audits of station and inspector records, equipment audits, 
and formal training of all state I/M enforcement officials and 
auditors. A description of the quality assurance program which includes 
written procedure manuals on the above discussed items must be 
submitted as part of the SIP. The Illinois submittal contains only a 
general provision under P.A. 88-533 which requires that the State I/M 
program provide for procedures to assure the correct operation, 
maintenance, and calibration of test equipment. Illinois' RFP requires 
bidders as part of their Technical proposal to submit a Quality 
Assurance Plan which addresses the requirements of this section. EPA 
proposes to conditionally approve this section of the SIP based on the 
State's April 22, 1996 commitment to submit to EPA as supplemental 
information in support of the SIP its final signed contract and the 
contractor's Quality Assurance Plan addressing the quality assurance 
requirements of 40 CFR part 51.363 within one year of EPA's final 
conditional approval.

Enforcement Against Contractors, Stations and Inspectors 40 CFR 51.364

    Enforcement against licensed stations or contractors and inspectors 
shall include swift, sure, consistent penalties for violation of 
program requirements. The Federal I/M regulation requires the 
establishment of minimum penalties for violations of program rules and 
procedures which can be imposed against stations, contractors and 
inspectors. The legal authority for establishing and imposing 
penalties, civil fines, licence suspensions and revocations must be 
included in the SIP. State quality assurance officials shall have the 
authority to temporarily suspend station and/or inspector licenses 
immediately upon finding a violation that directly affects emission 
reduction benefits. The SIP shall describe the administrative and 
judicial procedures and responsibilities relevant to the enforcement 
process. The Illinois

[[Page 21410]]

submittal includes the legal authority to establish and impose 
penalties against station, contractors, and inspectors. In addition, 
the RFP contains detailed provisions addressing the requirements of 
this section, including specific monetary penalties established for 
violation of program rules and procedures. The provisions found in the 
RFP will be enforceable once a final I/M contract is developed and 
signed. EPA proposes to conditionally approve this section of the SIP 
based on the State's April 22, 1996 commitment to submit to EPA as 
supplemental information in support of the SIP its final signed 
contract and any necessary administrative rules addressing the 
requirements of 40 CFR part 51.364 within one year of EPA's final 
conditional approval.

Data Collection 40 CFR 51.365

    In order to manage, evaluate and enforce the program requirements 
an effective I/M program requires accurate data collection. The Federal 
I/M regulation requires data to be gathered on each individual test 
conducted and on the results of the quality control checks of test 
equipment required under 40 CFR part 51.359. The Illinois submittal 
contains a general provision under P.A. 88-533 which requires that the 
State I/M program provide for procedures for certifying test results 
and for reporting and maintaining relevant data and records. In 
addition, the RFP requires that the contractor submit to IEPA, on a 
monthly basis, a file containing detailed data for each vehicle test 
transaction conducted. The data collection requirements specified in 
the RFP meet those specified in 40 CFR part 51.365. Once the final I/M 
contract is submitted to EPA as supplemental information in support of 
the SIP this section of the I/M SIP can be fully approved. At this 
time, EPA proposes to conditionally approve this section of the SIP 
based on the State's April 22, 1996 commitment to submit to EPA as 
supplemental information in support of the SIP its final signed 
contract addressing the data collection requirements of 40 CFR part 
51.365 within one year of EPA's final conditional approval.

Data Analysis and Reporting 40 CFR 51.366

    Data analysis and reporting are required in order to monitor and 
evaluate the program by the State and EPA. The Federal I/M rule 
requires annual reports to be submitted to EPA that provide information 
and statistics and summarize activities performed for each of the 
following programs: Testing, quality assurance, quality control and 
enforcement. These reports are to be submitted by July of each year and 
shall provide statistics for the period of January to December of the 
previous year. A biennial report shall be submitted to EPA that 
addresses changes in the program design, regulations, legal authority, 
program procedures, any weaknesses in the program found during the 
previous two year period and how these problems will be or were 
corrected. The Illinois RFP contains the necessary provisions 
addressing the requirements of this section. However, in order to 
receive full approval, the State must submit its final, signed contract 
as supplemental information in support of the SIP addressing the 
requirements of 40 CFR part 51.366 to EPA within one year of EPA's 
final conditional approval. EPA proposes to conditionally approve this 
section of the SIP based on the State's April 22, 1996 commitment to 
submit to EPA as supplemental information in support of the SIP its 
final signed contract addressing the data analysis and reporting 
requirements of 40 CFR part 51.366 within the time frame specified 
above.

Inspector Training and Licensing or Certification 40 CFR 51.367

    The Federal I/M regulation requires all inspectors to be formally 
trained and licensed or certified to conduct inspections. The Illinois 
P.A. 88-533 requires all inspectors to be certified by IEPA after 
successfully completing a course of training and successfully passing a 
written test. The RFP requires Bidders to include in their Technical 
Proposal a detailed Management Plan for the implementation and 
operation of the contracted elements of the Illinois enhanced I/M 
program. The Management Plan must include as part of its elements, a 
description of the Personnel Training and Certification Program as 
described in the RFP. The RFP requires the Contractor to establish and 
operate an on-going program to train and certify contractor and IEPA 
personnel. EPA proposes to conditionally approve this section of the 
SIP based on the State's April 22, 1996 commitment to submit to EPA as 
supplemental information in support of the SIP its final signed 
contract and the contractor's Management Plan addressing the 
requirements of 40 CFR part 51.367 within one year of EPA's final 
conditional approval.

Public Information and Consumer Protection 40 CFR 51.368

    The Federal I/M regulation requires the SIP to include a public 
information and consumer protection programs. The submittal needs to 
include a public information program, which educates the public on I/M, 
State, and Federal regulations, air quality, the contribution of motor 
vehicles to the air pollution problem, and other items as describe in 
the Federal rule. A consumer protection program, which includes 
provisions for a challenge mechanism, protection of whistle blowers and 
assistance to motorists in obtaining warranty covered repair, will also 
need to be addressed. The Illinois submittal contains the legal 
authority establishing grievance procedures for consumers to use, but 
it does not address the rest of the requirements stated above for this 
section. In order to receive full approval, the State has committed in 
IEPA's April 22, 1996, letter to submit the remaining provisions of the 
public information program within one year from EPA's final conditional 
approval. EPA proposes to conditionally approve this portion of the SIP 
based on the State's commitment to address the requirements of this 
section within the time frame stated above.

Improving Repair Effectiveness 40 CFR 51.369

    Effective repairs are the key to achieving program goals. The 
Federal regulation requires states to take steps to ensure that the 
capability exists in the repair industry to repair vehicles. The SIP 
must include a description of the technical assistance program to be 
implemented, a description of the procedures and criteria to be used in 
meeting the performance monitoring requirements required in the Federal 
regulation and a description of the repair technician training 
resources available in the community. The Illinois submittal does not 
contain any provisions addressing the requirements of this section, 
however the State has submitted a commitment to address the 
requirements of this section, including the submittal of a description 
of available technician training resources, within one year of EPA's 
final conditional approval. EPA is proposing to conditionally approve 
this portion of the State submittal based on the State's commitment to 
submit the necessary documentation to EPA in the time frame stated 
above.

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

[[Page 21411]]

pursuant to section 207(c ) of the Act, receive the required repairs 
prior to completing the emission test or renewing the vehicle 
registration. The Illinois P.A. 88-533 provides the legal authority to 
require owners to comply with emission related recalls before 
completing the emission test. The Illinois RFP requires that the 
contractor provide and maintain as part of the data handling system a 
means to identify vehicles with unresolved emissions recalls based upon 
the data provided by EPA. At a minimum, the Contractor and IEPA will 
have the capability to store, retrieve, and update recall data that 
consists of the VIN, the numbers of the recall campaign, and the date 
that the repairs were performed. The system is to be capable of 
interactively updating vehicle and/or recall database records based 
upon information supplied by vehicle owners indicating that required 
repairs have been made. The system will also be capable of updating 
appropriate records based upon updated data provided by EPA. EPA 
proposes to approve this section of the SIP based on the State's April 
22, 1996 commitment to submit to EPA as supplemental information in 
support of the SIP its final signed contract addressing the annual 
reporting requirements of 40 CFR part 51.370 within one year of EPA's 
final conditional approval.

On-Road Testing 40 CFR 51.371

    On-road testing is required in enhanced I/M areas. The use of 
either remote sensing devices (RSD) or roadside pullovers including 
tailpipe emission testing can be used to meet the Federal regulations. 
The program must include on-road testing of 0.5 percent of the subject 
fleet or 20,000 vehicles, whichever is less, in the nonattainment area 
or the I/M program area. Motorists that have passed an emission test 
and are found to be high emitters as a result of a on-road test shall 
be required to pass an out-of-cycle test. The Illinois P.A. 88-533 
requires on-road testing through the use of remote sensing devices. The 
SIP submittal requires the use of RSD to test at least 0.5 percent of 
the subject fleet per year in the I/M program area. The RFP requires 
that the Contractor develop and maintain written on-road inspection 
procedures to be approved by IEPA. In addition, the Contractor is to 
provide and maintain as part of the system on-road testing information 
containing vehicle and test results obtained from the on-road testing 
program. The Contractor will be responsible for evaluating all on-road 
emission data, including linking emissions data with vehicle database 
records. EPA proposes to conditionally approve this section of the SIP 
based on the State's April 22, 1996 commitment to submit to EPA as 
supplemental information in support of the SIP its final signed 
contract addressing the on-road testing specifications of 40 CFR part 
51.371 within one year of EPA's final conditional approval.

Proposed Action

    EPA is proposing to approve portions and conditionally approve 
other portions of this revision to the Illinois SIP for an enhanced I/M 
program, as cited above. If Illinois fails to timely submit the 
materials discussed above within one year of EPA's final conditional 
approval, the final conditional approval will automatically convert to 
a disapproval.

I. Basis for Conditional Approval

    The EPA believes conditional approval is appropriate in this case 
because the State has the necessary legal authority for an enhanced I/M 
program and needs only to award the I/M contract and amend current 
administrative rules to address a number of enhanced I/M program 
requirements. As a condition of EPA's proposed conditional approval, 
the State must submit a final signed I/M contract as supplemental 
information in support of the SIP and any additional material necessary 
to address the deficiencies identified in this document to EPA no later 
than one year after EPA's final conditional approval. On April 22, 
1996, the IEPA submitted a letter committing to this. In the letter 
IEPA commits to provide EPA the signed enhanced I/M contract, in 
addition to provide appropriate analyses, calculations, and rules as 
discussed in a conference call on April 9, 1996 between IEPA and EPA. 
The telephone conversation record of this call will be included as part 
of the Illinois SIP.

II. Statement of Approvability

    Under the authority of the Governor of Illinois, the IEPA submitted 
a SIP revision to satisfy the requirements of the I/M regulation to the 
EPA on June 29, 1995. EPA found the Illinois SIP complete in a letter 
dated June 30, 1995. The EPA has reviewed this submittal and is 
proposing to approve portions and proposing to conditionally approve 
other portions of it pursuant to Section 110(k) of the Act, on the 
condition that the portions of the I/M program noted above are adopted 
and/or submitted on the schedules noted in this proposed rulemaking. If 
EPA takes final conditional approval on the commitment, the State must 
meet its commitment to submit the final I/M contract and all other 
supporting documentation within one year of the conditional approval. 
Once the EPA has conditionally approved this committal, if the State 
fails to submit any necessary rules and/or documentation to EPA, final 
conditional approval will automatically convert to a disapproval. EPA 
will notify the State by letter to this effect. Once the SIP has been 
disapproved, these commitments will no longer be a part of the approved 
nonattainment area SIPs. The EPA subsequently will publish a notice to 
this effect in the notice section of the Federal Register indicating 
that the commitment or commitments have been disapproved and removed 
from the SIP. If the State adopts and submits the final rule amendments 
and the final I/M contract, as supplemental information in support of 
the SIP, to EPA within the applicable time frame, the conditionally 
approved commitments will remain part of the SIP until the EPA takes 
final action approving or disapproving the new submittal. If the EPA 
approves the subsequent submittal, those newly approved rules and/or 
documentation will become part of the SIP.
    If after considering the comments on the proposal, the EPA issues a 
final disapproval or if the conditional approval portions are converted 
to a disapproval, the sanctions clock under section 179(a) will begin. 
If the State does not submit and EPA does not approve the rule on which 
any disapproval is based within 18 months of the disapproval, the EPA 
must impose one of the sanctions under section 179(b)-highway funding 
restrictions or the offset sanction. In addition, any final disapproval 
would start the 24 month clock for the imposition of a section 110(c) 
Federal Implementation Plan. Finally, under section 110(m) the EPA has 
discretionary authority to impose sanctions at any time after a final 
disapproval.

Regulatory Flexibility

    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. 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.
    SIP approvals under 110 and subchapter I, Part D of the CAA do not

[[Page 21412]]

create any new requirements, but simply approve requirements that the 
State is already imposing. Therefore, because the Federal SIP approval 
does not impose any new requirements, I certify that it does not have a 
significant impact on any small entities affected. Moreover, due to the 
nature of the Federal-state relationship under the CAA, preparation of 
a regulatory flexibility analysis would constitute Federal inquiry into 
the economic reasonableness of state action. The CAA forbids EPA to 
base its actions concerning SIPs on such grounds. Union Electric Co. v. 
U.S. E.P.A., 427 U.S. 246, 256-66 (S.Ct. 1976); 42 U.S.C. 7410(a)(2) 
and 7410(k)(3).
    Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded 
Mandates Act'') (signed into law on March 22, 1995) requires that the 
EPA prepare a budgetary impact statement before promulgating a rule 
that includes a Federal mandate that may result in expenditure by 
State, local, and tribal governments, in aggregate, or by the private 
sector, of $100 million or more in any one year. Section 203 requires 
the EPA to establish a plan for obtaining input from and informing, 
educating, and advising any small governments that may be significantly 
or uniquely affected by the rule.
    Under section 205 of the Unfunded Mandates Act, the EPA must 
identify and consider a reasonable number of regulatory alternatives 
before promulgating a rule for which a budgetary impact statement must 
be prepared. The EPA must select from those alternatives the least 
costly, most cost-effective, or least burdensome alternative that 
achieves the objectives of the rule, unless the EPA explains why this 
alternative is not selected or the selection of this alternative is 
inconsistent with law.
    Because this proposed rule is estimated to result in the 
expenditure by State, local, and tribal governments or the private 
sector of less then $100 million in any one year, the EPA has not 
prepared a budgetary impact statement or specifically addressed the 
selection of the least costly, most cost-effective, or least burdensome 
alternative. Because small governments will not be significantly or 
uniquely affected by this rule, the EPA is not required to develop a 
plan with regard to small governments. It imposes no additional 
requirements. The Office of Management and Budget has exempted this 
action rule from Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Nitrogen Oxide, Ozone, Volatile Organic Compound.

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

    Dated: April 29, 1996.
David A. Ullrich,
Acting Regional Administrator.
[FR Doc. 96-11758 Filed 5-9-96; 8:45 am]
BILLING CODE 6560-50-P