SECTION 1. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that, in carrying out title I of the 
Clean Air Act (42 U.S.C. 7401 et seq.), the Administrator of the 
Environmental Protection Agency (referred to in this Act as the 
``Administrator'') has failed to--
            (1) adequately consider alternative programs to centralized 
        vehicle emission testing programs, as required by section 
        182(c)(3)(C)(vi) of such Act (42 U.S.C. 7511a(c)(3)(C)(vi)); 
        and
            (2) provide adequate credit to States for the alternative 
        programs.
    (b) Purpose.--The purpose of this Act is to require the 
Administrator to--
            (1) reassess the determinations of the Administrator with 
        respect to the equivalency of centralized and decentralized 
        programs under section 182(c)(3)(C)(vi) of such Act (42 U.S.C. 
        7511a(c)(3)(C)(vi)); and
            (2) issue new regulations governing the programs that--
                    (A) result in minimum disruption to the ability of 
                States to comply with other requirements of such Act 
                (42 U.S.C. 7401 et seq.); and
                    (B) provide States a reasonable opportunity to 
                comply with the new regulations and implement 
                decentralized testing programs.

SEC. 2. IMPLEMENTATION OF ENHANCED VEHICLE INSPECTION PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law, a 
State shall not be required to implement an enhanced vehicle inspection 
and maintenance program under section 182(c)(3) of the Clean Air Act 
(42 U.S.C. 7511a(c)(3)) prior to March 1, 1996.
    (b) Reassessment of Regulations.--
            (1) In general.--The Administrator shall--
                    (A) immediately rescind the regulations issued on 
                November 5, 1992 (57 Fed. Reg. 52950), relating to 
                operation of the program described in subsection (a) on 
                a centralized basis; and
                    (B) during the period beginning on the date of 
                enactment of this Act and ending on March 1, 1996--
                            (i) reassess the determinations made by the 
                        Administrator with respect to operation of the 
                        program described in subsection (a) on a 
                        centralized basis, taking into consideration 
                        comments submitted by States; and
                            (ii) issue new regulations relating to 
                        operation of the program described in 
                        subsection (a) on a centralized basis or 
                        decentralized basis, at the option of each 
                        State.
            (2) Requirements.--The regulations issued under paragraph 
        (1)(B)(ii) shall--
                    (A) in accordance with the intent of section 
                182(c)(3)(C)(vi) of the Clean Air Act (42 U.S.C. 
                7511a(c)(3)(C)(vi))--
                            (i) make reasonably available to States the 
                        option of operation of the program described in 
                        subsection (a) on a decentralized basis; and
                            (ii) establish criteria that a State must 
                        meet in order to demonstrate that a 
                        decentralized program of the State is equally 
                        effective as a centralized program; and
                    (B)(i) provide each State a reasonable opportunity 
                to submit (at the option of the State) a new revision 
                to a plan under section 182(c)(3) of such Act (42 
                U.S.C. 7511a(c)(3)) based on the new regulations, which 
                revision shall replace any revision to a plan 
                previously submitted by the State under section 
                182(c)(3) of such Act; and
                    (ii) include a schedule that provides States a 
                reasonable opportunity to implement any new revisions 
                to plans that they submit.
            (3) Judicial review.--Notwithstanding section 706 of title 
        5, United States Code, or any other provision of law, if the 
        regulations issued pursuant to paragraph (1)(B)(ii) are 
        reviewed by a court, the court shall hold unlawful and set 
        aside the regulations if the regulations are found to be 
        unsupported by a preponderance of the evidence.
    (c) Prohibition on Imposition of Sanctions.--Until such time as the 
Administrator has carried out subsection (b)(1)--
            (1) the Administrator may not issue a finding, disapproval, 
        or determination under section 179(a) of the Clean Air Act (42 
        U.S.C. 7509(a)), or apply a sanction specified in section 
        179(b) of such Act, to a State with respect to a failure to 
        implement a program described in subsection (a), or any portion 
        of such a program; and
            (2) the Administrator and the Administrator of the Federal 
        Highway Administration of the Department of Transportation may 
        not take any adverse action, against a State with respect to a 
        failure described in paragraph (1), under--
                    (A) section 176 of the Clean Air Act (42 U.S.C. 
                7506);
                    (B) chapter 53 of title 49, United States Code;
                    (C) subpart T of part 51, or subpart A of part 93, 
                of title 40, Code of Federal Regulations (commonly 
                known as the ``transportation conformity rule''); or
                    (D) part 6, 51, or 93 of title 40, Code of Federal 
                Regulations (commonly known as the ``general conformity 
                rule'').
    (d) Full Credit for Decentralized Programs.--Until such time as the 
Administrator has carried out subsection (b)(1), for the purpose of the 
attainment demonstration and the reasonable further progress 
demonstration required under section 182(c)(2) of the Clean Air Act (42 
U.S.C. 7511a(c)(2)), the Administrator shall--
            (1) deem that the emission reductions calculated by States 
        for inspection and maintenance under their State implementation 
        plans would be achieved as if the planned program had been 
        implemented; or
            (2) if appropriate, consider the operation of the program 
        described in subsection (a) on a decentralized basis as 
        equivalent to the operation of the program on a centralized 
        basis in any case in which a State demonstrates that a 
        determination of such an equivalency is reasonable.
Output: Provides that States will not be required to implement enhanced vehicle inspection and maintenance programs under the Clean Air Act prior to March 1, 1996. 
Directs the Administrator of the Environmental Protection Agency to immediately rescind regulations relating to the operation of such programs on a centralized basis and issue new regulations to allow the operation of such programs on a centralized or decentralized basis at the option of each State. 
Prohibits, until the Administrator carries out such requirements, the imposition of sanctions for failures by States to implement such programs or specified adverse actions against States by the Administrator or the Administrator of the Federal Highway Administration. 
Requires the Administrator to:  (1) deem that emissions reductions calculated by States for inspection and maintenance under State implementation plans would be achieved as if the planned program had been implemented; or (2) consider the operation of the program on a decentralized basis as equivalent to operation on a centralized basis if the State demonstrates that such equivalency is reasonable.