96-28732. Retrofit/Rebuild Requirements for 1993 and Earlier Model Year Urban Buses; Additional Update of Post-Rebuild Emission Levels in 1997  

  • [Federal Register Volume 61, Number 219 (Tuesday, November 12, 1996)]
    [Proposed Rules]
    [Pages 58022-58028]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-28732]
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 85
    
    [FRL-5649-4]
    
    
    Retrofit/Rebuild Requirements for 1993 and Earlier Model Year 
    Urban Buses; Additional Update of Post-Rebuild Emission Levels in 1997
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Notice of proposed rulemaking.
    
    -----------------------------------------------------------------------
    
    SUMMARY: Today's notice of proposed rulemaking describes proposed 
    amendments to the current regulations regarding EPA's Urban Bus 
    Retrofit/Rebuild Program. Today's proposed rule would allow one 
    additional year for equipment manufacturers to certify equipment that 
    might influence compliance under Option 2 of the program. Such a 
    revision will remove the incentive to switch compliance options by 
    guaranteeing the two options remain equivalent, as EPA originally 
    intended. In the absence of such a revision to the program regulations, 
    the two compliance options will not remain equivalent as EPA intended, 
    and urban buses may not be utilizing the ``best retrofit technology * * 
    * reasonably achievable'' as Congress required. In addition, urban 
    areas, many of which are not in compliance with National Ambient Air 
    Quality Standards (NAAQS) for PM, will not realize the full PM benefits 
    of this program.
    
    DATES: Written comments on this proposal will be accepted until 
    December 12, 1996, or 30 days after the date of a public hearing, if 
    one is held.
        EPA will hold a public hearing on this proposal on December 6, 1996 
    if it receives a request by November 22, 1996. EPA will cancel this 
    hearing if no one requests to testify. Members of the public should 
    call the contact person indicated below to notify EPA of their interest 
    in testifying at the hearing. Interested parties may call the contact 
    person to determine whether the hearing will be held.
        Further information on the public hearing and the submission of 
    comments can be found under ``Public Participation'' in the 
    Supplementary Information'' section of today's document.
    
    ADDRESSES: Interested parties may submit written comments (in 
    duplicate, if possible) to Public Docket No. A-91-28 (Category VII) at 
    the address listed below.
        Interested parties may contact the person listed in FOR FURTHER 
    INFORMATION CONTACT to determine the time and location of the public 
    hearing, if one is requested. A court reporter will be present to make 
    a written transcript of the proceedings and a copy will be placed in 
    the public docket following the hearing.
        Materials relevant to this proposed rulemaking are contained in 
    Public Docket A-91-28 (Category VII). This docket is located in room M-
    1500, Waterside Mall (Ground Floor), U.S. Environmental Protection 
    Agency, 401 M Street SW, Washington, D.C. 20460. Dockets may be 
    inspected from 8 a.m. until 5:30 p.m., Monday through Friday. As 
    provided in 40 CFR Part 2, a reasonable fee may be charged by the EPA 
    for copying docket materials.
    
    FOR FURTHER INFORMATION CONTACT: Tom Stricker, Engine Programs and 
    Compliance Division (6403-J), U.S. Environmental Protection Agency, 401 
    M Street SW, Washington, D.C. 20460. Telephone: (202) 233-9322.
    
    SUPPLEMENTARY INFORMATION:
    
    Regulated Entities
    
        Entities potentially regulated by this proposed action consist of 
    the same entities currently regulated by existing Retrofit/Rebuild 
    Requirements of 40 CFR Part 85, Subpart O, and include urban transit 
    operators in Metropolitan Statistical Areas (MSA's) and Consolidated 
    Metropolitan Statistical Areas (CMSA's) with 1980 populations of 
    750,000 or more, and equipment manufacturers who voluntarily seek 
    equipment certification pursuant to the program regulations. Regulated 
    categories and entities include:
    
    ------------------------------------------------------------------------
                   Category                  Examples of regulated entities 
    ------------------------------------------------------------------------
    Industry.............................  Equipment manufacturers who      
                                            voluntarily seek equipment      
                                            certification pursuant to the   
                                            program regulations.            
    Transit operators....................  Transit bus operators in         
                                            Metropolitan Statistical Areas  
                                            (MSA's) and Consolidated        
                                            Metropolitan Statistical Areas  
                                            (CMSA's) with 1980 populations  
                                            of 750,000 or more, who operate 
                                            1993 and earlier model year     
                                            urban buses, or who rebuild or  
                                            replace such bus engines.       
    ------------------------------------------------------------------------
    
    
    [[Page 58023]]
    
        This table is not meant to be exhaustive, but rather provides a 
    guide for readers regarding entities likely to be regulated by this 
    action. This table lists the type of entities that EPA is now aware 
    could potentially be regulated by this action. Other types of entities 
    not listed in the table could also be regulated. To determine whether 
    your facility or company is regulated by this action, you carefully 
    examine the existing urban bus retrofit/rebuild regulations contained 
    in 40 CFR Part 85, Subpart O, and the preamble to the final rule (58 FR 
    21359, April 23, 1993). If you have any questions regarding the 
    applicability of this action to a particular entity, consult the person 
    listed in the preceding FOR FURTHER INFORMATION CONTACT section.
    
    I. Introduction
    
        Section 219(d) of the Clean Air Act requires EPA to promulgate 
    regulations that require certain 1993 and earlier model year urban 
    buses, having engines which are replaced or rebuilt after January 1, 
    1995, to comply with an emission standard or control technology 
    reflecting the best retrofit technology and maintenance practices 
    reasonably achievable.
        On April 21, 1993, EPA published final Retrofit/Rebuild 
    Requirements for 1993 and Earlier Model Year Urban Buses (58 FR 21359). 
    The Urban Bus Retrofit/Rebuild Program requires affected operators of 
    urban buses to choose between two compliance options. Option 1 
    establishes particulate matter (PM) emissions requirements for each 
    urban bus in an operator's fleet whose engine is rebuilt or replaced. 
    Option 2 is a fleet averaging program that sets out specific annual 
    target levels for average PM emissions from urban buses in an 
    operator's fleet. The two compliance options are designed to yield 
    equivalent emissions reductions for approximately the same cost.
        In the final rule, EPA stated that it would review the retrofit/
    rebuild equipment that was certified by July 1, 1994, and again by July 
    1, 1996, and publish the post-rebuild PM emission levels for urban bus 
    engines affected by the program. These post-rebuild levels are to be 
    used by transit operators choosing to comply with Option 2 for 
    calculating their fleet emission levels. In two previous Federal 
    Register notices (59 FR 45626, September 2, 1994, and 60 FR 42763, 
    August 16, 1996), EPA published post-rebuild PM levels based on 
    equipment that was certified as of these two dates. Today's notice 
    proposes, as described below, that EPA review certified equipment for a 
    third time and publish the post-rebuild PM emissions levels 
    accordingly, based on equipment certified as of July 1, 1997.
    
    II. Background
    
    A. Compliance Options
    
        EPA promulgated the final rule regarding the Urban Bus Retrofit/
    Rebuild Program on April 23, 1993 (58 FR 21359). In short, the rule 
    requires operators of 1993 and earlier model year urban buses, in MSA's 
    and CMSA's with a 1980 population of 750,000 or more, to comply with 
    one of two program options.
        Option 1 is a performance based program requiring that affected 
    urban buses meet a 0.10 g/bhp-hr PM standard at the time of engine 
    rebuild or replacement, if equipment has been certified by EPA for six 
    months as meeting the 0.10 g/bhp-hr standard for less than a life cycle 
    cost limit of $7,940 (in 1992 dollars). (EPA chose to allow a six month 
    lead time before requiring such equipment to allow transit operators to 
    plan their budgeting and procurement activities, and to help ensure an 
    adequate supply of parts are available from equipment manufacturers.) 
    If equipment is not certified as meeting the 0.10 g/bhp-hr standard for 
    under the life cycle cost limit, then affected buses must receive 
    equipment which reduces PM emissions by 25 percent, if such equipment 
    has been certified by EPA for six months as meeting the 25 percent 
    reduction standard for less than a life cycle cost limit of $2,000 (in 
    1992 dollars). If no equipment is certified to meet either the 0.10 g/
    bhp-hr standard, or the 25 percent reduction standard, then the 
    affected bus engine must be rebuilt to the original engine 
    configuration, or to an engine configuration certified to have a PM 
    level lower than that of the original engine.
        Option 2 is an averaging based program requiring that affected 
    urban bus operators meet an annual average fleet PM level, rather than 
    requiring that each individual rebuilt engine meet a specific PM level. 
    The transit operator must reduce PM emission from its buses to a level 
    low enough to meet an annual average target level for the fleet (TLF). 
    The TLF is calculated for each calendar year of the program, beginning 
    in calendar year 1996, and is based on EPA's determination of the 
    projected PM emission level for each engine model in the affected 
    fleet, and on assumed engine rebuild and retirement schedules. The 
    actual fleet level attained (FLA) must remain equal to, or below, the 
    TLF for each year of the program. The FLA is a fleet weighted average 
    PM level based on the ``actual'' PM level of each affected engine. The 
    ``actual'' PM level of each affected engine is determined by the PM 
    certification level of the equipment used to retrofit the engine. If no 
    retrofit equipment is installed on the engine, or if no retrofit 
    equipment is certified for the engine, then the PM level is based on 
    EPA's determination of the projected PM emission level for the engine 
    model.
        EPA established the pre-rebuild PM levels for each engine model in 
    the final rule. The pre-rebuild PM level for an engine model is based 
    on new-engine certification data, if available, for that engine model. 
    Otherwise, the level is based on EPA's estimate of such emissions based 
    on data from similar engine models. In addition, EPA projected post-
    rebuild PM levels for each engine model based on the expectation that 
    retrofit equipment would be certified for certain engine models and 
    would achieve certain reductions. EPA recognized that these projections 
    may not accurately reflect future equipment certification, and that 
    transit operators may not be able to comply if the TLF were based on 
    unrealistic PM levels. Therefore, the final rule contained requirements 
    that EPA revise the post-rebuild PM levels based on equipment that was 
    actually certified.
        When determining when it would revise the post-rebuild PM levels, 
    EPA considered several factors. First, EPA had to estimate the time 
    frame during which equipment manufacturers would likely certify 
    equipment for this program. For example, revising the post-rebuild PM 
    levels in 1995, and again in 1999, would be meaningless if 
    certification activity ceased in 1994. Second, EPA wanted to ensure 
    that Option 2 remained comparable in terms of cost, lead time, and 
    emissions benefit, to Option 1. Third, EPA wanted to ensure Option 2 
    remained a workable and feasible compliance option.
        EPA assumed that certification activity under this program would 
    likely be completed by 1996. The retrofit program only affects 1993 and 
    earlier model year urban buses, which will only be in operation until 
    around 2008. In order to recuperate development costs, EPA expected 
    equipment manufacturers to certify equipment as early as possible, and 
    for the most popular engine models. In fact, some retrofit kits already 
    existed and were in use prior to the publication of the final rule, and 
    EPA expected those equipment manufacturers to seek certification 
    immediately after the rule was published.
        With early certification activity expected, a revision of post-
    rebuild PM
    
    [[Page 58024]]
    
    levels prior to the start of the program (January 1, 1995) was 
    determined appropriate. In addition, with certification activity 
    expected to be completed by 1996, a second revision of the post-rebuild 
    levels in mid-1996 was also determined appropriate. Limiting the number 
    of revisions to the post-rebuild PM levels was important to provide 
    stability in the averaging program and make it a viable compliance 
    option. Having more than two revisions could lead to a ``moving 
    target'' for transit operators. Selection of the specific dates for the 
    two revisions is discussed below.
        Under Option 1, transit operators are not required to use equipment 
    until six months after it is certified as meeting both emissions and 
    cost requirements. This lead time is vital to transit operators to 
    effectively plan their budgeting and procurement activities. Similarly, 
    under Option 2, EPA believes six months of lead time are also 
    appropriate. As a result, EPA determined that the first revision of 
    post-rebuild PM levels would be based on equipment certified as of July 
    1, 1994. This date would allow inclusion of equipment certified early, 
    and would also allow Option 2 transit operators six months prior to the 
    program start date to plan their budgeting and procurement activities 
    in order to meet the TLF for 1996 (TLF96). (Although the first TLF 
    calculation for Option 2 is effective for calendar 1996 (TLF96), 
    transit operators will likely take actions beginning January 1, 1995 to 
    ensure compliance with TLF96 on January 1, 1996.) EPA determined 
    the second (and final) revision to post-rebuild PM levels would be 
    based on equipment certified as of July 1, 1996.
        This date would allow six months of lead time for transit operators 
    to plan their budgeting and procurement activities in order to meet 
    TLF98. (Again, transit operators will likely take actions 
    beginning January 1, 1997 to ensure compliance with TLF98 on 
    January 1, 1998). In addition, by revising the post-rebuild PM levels 
    after certification activity was complete, EPA could be assured that 
    buses would be using the ``best retrofit technology * * * reasonably 
    achievable'' as Congress required.1
    ---------------------------------------------------------------------------
    
        \1\ Clean Air Act Section 219(d), 42 U.S.C. 7554(d).
    ---------------------------------------------------------------------------
    
        In addition to the timing of the post-rebuild PM level revisions, 
    EPA was also concerned about the content of the revisions. From an 
    environmental standpoint, the lowest PM level certified for an engine 
    model would be the most desirable post-rebuild PM level to include in 
    the revision. However, low emitting technologies could be quite costly. 
    Under Option 1, transit operators are not required to use technology 
    unless it can meet certain cost limits. In order to maintain equity 
    between Option 1 and Option 2 programs, the final rule requires that 
    certified equipment must meet the life cycle cost limits of Option 1 in 
    order to be considered for inclusion in the Option 2 revisions of post-
    rebuild PM levels. Among the certified equipment that meets the Option 
    1 cost limits, the numerically lowest PM certification level for a 
    given engine model will establish the revised post-rebuild PM level for 
    that engine model.
        Default provisions were also included in the final rule in the 
    event equipment meeting cost limits were not certified.
    
    B. Current Status of Program
    
        Certification activity under the retrofit program has lagged 
    substantially behind the schedule anticipated by EPA. In fact, when EPA 
    published revised post-rebuild levels based on equipment certified as 
    of July 1, 1994 (59 FR 45626, September 2, 1994), no equipment had been 
    certified. That revision included no updated post-rebuild PM levels, 
    but instead is based on default provisions of the final rule (40 CFR 
    85.1403(c)(1)(iii)(B)(5)). The first approval of a certification for 
    this program occurred on May 31, 1995 (60 FR 28402), almost a year 
    after the post-rebuild levels were revised the first time. Although six 
    retrofit kits have been certified by EPA as of August 1996, no 
    equipment has been certified as meeting the 0.10 g/bhp-hr PM standard 
    for under the life cycle cost limit of $7,940 (in 1992 dollars). 
    Therefore,the recent revision to the post-rebuild PM levels were based 
    on 25 percent reduction equipment, or on no equipment (for those engine 
    models for which no equipment was certified as meeting emissions and 
    cost requirements).
        Not only has EPA's assumption that certification activity would 
    begin early proven incorrect, but more importantly, EPA's assumption 
    that certification activity would be complete by mid-1996 has proven 
    incorrect. EPA is currently processing several applications for 
    certification, including one aimed at meeting the 0.10 g/bhp-hr PM 
    standard for less than the life cycle cost limit of $7,940 (in 1992 
    dollars). Several more equipment manufacturers have made initial 
    contact with EPA regarding certification of equipment, including 
    additional technologies aimed at meeting the 0.10 g/bhp-hr standard. 
    Consistent with the current program regulations, none of the 
    potentially promising retrofit technologies certified after the July 1, 
    1996 final post-rebuild PM level revision can influence compliance 
    under Option 2.
    
    C. Potential Inequity Between Compliance Options
    
        As discussed above, technologies certified after the final post-
    rebuild PM revision of July 1996 cannot influence compliance under 
    Option 2. In other words, under the current regulations, transit 
    operators choosing to comply with Option 2 would never be required to 
    reduce their fleet PM levels below those PM levels contained in the 
    recent post-rebuild level revision based on equipment certified as of 
    July 1, 1996. However, consistent with the final program regulations, 
    transit operators choosing to comply with Option 1 would be required to 
    use equipment certified to the 0.10 g/bhp-hr standard, even if the 
    standard is triggered after July 1, 1996. The result is that Option 1 
    could become a much more stringent compliance option. Given the level 
    of current certification activity, and the continued interest from 
    equipment manufacturers, eventual certification of a 0.10 g/bhp-hr 
    technology, and thus the likelihood of program inequity, is likely.
        As discussed above, EPA intended the two compliance options to be 
    equivalent in terms of cost, emissions reduction and lead time. 
    However, future certification of technology which triggers the 0.10 g/
    bhp-hr standard could result in Option 2 being much less costly than 
    Option 1. Further, Option 1 would yield significantly more PM 
    reductions. The root cause of this inequity is that equipment 
    certification activity will continue longer than originally 
    anticipated. If the current program regulations are not amended, then 
    transit operators, the majority of whom EPA currently believes are 
    complying with Option 1, will have a great incentive to switch to 
    Option 2. Obviously, PM reductions would be significantly reduced in 
    those cities where transit operators switch to Option 2. Furthermore, 
    such a loophole is in direct conflict with the Clean Air Act language 
    that urban buses use the ``best retrofit technology * * * reasonably 
    achievable''.
    
    III. Description of Today's Proposal
    
        EPA is proposing to amend the current program regulations to 
    include an additional revision of post-rebuild PM levels based on 
    equipment certified as of July 1, 1997. EPA is currently in receipt of 
    one equipment certification application intended to meet the 0.10 g/
    bhp-hr standard for less than the life cycle cost limit of $7,940 (in 
    1992
    
    [[Page 58025]]
    
    dollars), and expects to receive more in the near future. As such, one 
    additional year is expected to allow ample time for equipment 
    manufacturers to certify 0.10 g/bhp-hr technology for those engine 
    models for which equipment could reasonably be certified.
        The purpose and effect of today's proposed action is simple and 
    straightforward. First, the purpose of today's proposal is to close an 
    unintended compliance loophole in the original regulations. Unless EPA 
    amends the current regulations, certification of a 0.10 g/bhp-hr 
    technology which meets cost limits will likely cause eligible transit 
    operators choosing to comply with Option 1 to switch to Option 2 to 
    avoid potentially high equipment costs. Under this scenario, a mass-
    switch to Option 2 will result in PM reductions which fall short of 
    those expected from this program, and would negate the benefits of 
    certifying the 0.10 g/bhp-hr technology. However, if post-rebuild PM 
    levels are revised in mid-1997 to include any eligible 0.10 g/bhp-hr 
    technology, there will be no incentive for transit operators to switch 
    to Option 2. If 0.10 g/bhp-hr is included in the revised post-rebuild 
    PM levels, the Option 2 TLF for future calendar years will be 
    substantially reduced, effectively requiring Option 2 transit operators 
    to use 0.10 g/bhp-hr technology or retire a substantial number of buses 
    early in order to comply with the TLF. In effect, both Option 1 and 
    Option 2 would require the use low-emitting technology.
        EPA believes today's proposal is consistent with intent of the 
    original regulations and with the intent of Congress. As discussed 
    above, EPA originally intended Option 1 and Option 2 to be equivalent 
    in terms of emissions reductions, costs, lead time, and stability. 
    Moreover, this proposed revision would ensure that EPA's requirements 
    reflect the ``best retrofit technology and maintenance practice 
    reasonably achieveable'' as required under section 219(d) and intended 
    by EPA's initial regulations.
        Clearly, failure to amend the regulations as proposed will result 
    in vastly differing PM reductions between the options as transit 
    operators using Option 2 will avoid using low-emitting technology. On 
    the contrary, amending the regulations as proposed will result in both 
    options essentially requiring the use of low-emitting technology, and 
    should result in similar PM reductions.
        Regarding costs, EPA originally intended that the cost of the two 
    options be comparable, such that both options were truly viable choices 
    for transit operators. Today's proposal will ensure that the two 
    options remain consistent in terms of cost. Note that today's proposal 
    does not result in any additional costs to transit operators not 
    previously contemplated in the original rulemaking. EPA is not 
    proposing any changes to the life cycle cost requirements or the 
    requirement to use certified equipment.
        Today's proposal does not change the six month lead time that 
    transit operators would be allowed to plan their budgeting and 
    procurement strategies. EPA is proposing to base the final revision of 
    post-rebuild PM levels on equipment certified as of July 1, 1997, which 
    is six months prior to the date on which transit operators would likely 
    begin taking actions to ensure compliance with TLF99.
        Finally, regarding program stability, EPA believes today's proposal 
    is consistent with the original regulations, and in addition, provides 
    further stability beyond the original regulations. EPA originally 
    limited the number of post-rebuild PM level revisions to two in order 
    to avoid a ``moving target'' for transit operators. Too much 
    instability would likely discourage transit operators from considering 
    Option 2 as a viable compliance option. As discussed previously in 
    today's notice, EPA determined that revisions of post-rebuild PM levels 
    would be based on equipment certified as of July 1, 1994, and again as 
    of July 1, 1996. The primary reason these dates were determined 
    appropriate at the time of the original rulemaking is that EPA believed 
    equipment certification would begin as soon as the final rule was 
    published on April 23, 1993, and would be completed by mid-1996. 
    Discussions with industry and comments from the public gave no 
    indication that certification activity would not follow this assumed 
    schedule. In fact, retrofit kits already existed and were being used by 
    transit operators when the final rule was published.
        For a variety of reasons, certification activity has lagged behind 
    the schedule anticipated by EPA, so much so that no equipment had been 
    certified as of July 1, 1994. The first revision of post-rebuild PM 
    levels resulted in no revision at all. The recent revision based on 
    equipment certified as of July 1, 1996 did contain several updated 
    post-rebuild PM levels. In effect, adding a third revision based on 
    equipment certified as of July 1, 1997 would be just the second 
    revision of any substance. In this regard, the stability of Option 2 is 
    still maintained as EPA originally intended. Furthermore, EPA expects 
    that option switching that might occur without an additional post-
    rebuild PM level revision could be more disruptive to program stability 
    than today's proposal.
        EPA believes today's proposed action is consistent with Congress' 
    intent that urban buses utilize the ``best retrofit technology * * * 
    reasonably achievable.'' Clearly, low-emitting equipment such as 
    equipment which meets a 0.10 g/bhp-hr standard would represent the best 
    retrofit technology. The fact that transit operators will only be 
    required to use such equipment if it meets certain life cycle cost 
    limits means that such equipment will be reasonably achievable. The 
    fact that EPA miscalculated the time table on which low emitting 
    technology would be developed by a year or less does not itself imply 
    that such technology is not reasonably achievable.
        EPA solicits comments on this proposal and its effect on the Urban 
    Bus Retrofit/Rebuild Program, transit operators and equipment 
    manufacturers. In particular, EPA solicits comments on the need to add 
    a third revision of post-rebuild PM levels, the timing of a third 
    revision, the consistency of today's proposal with the original 
    regulations, the need to address the potential compliance loophole that 
    may exist, how to ensure the same compliance loophole issue addressed 
    by today's proposal does not happen again in the future, and any other 
    aspects of the proposed action.
    
    IV. Environmental Impact
    
        The environmental impacts expected to result from the retrofit/
    rebuild program are outlined in the final Regulatory Support Document 
    (RSD) for the original rulemaking and can be found in public docket A-
    91-28 (see ADDRESSES section above). Today's proposed action would not 
    result in any additional emissions reductions beyond those outlined in 
    the RSD. However, today's action would help ensure these expected 
    reductions are actually achieved by closing an unintended compliance 
    loophole. If transit operators are allowed to take advantage of the 
    potential loophole in the current program, PM reductions will not be 
    achieved at the level EPA originally anticipated. In addition, to the 
    extent that transit operators can avoid installing low-emitting 
    technology on buses, such buses will not reflect the ``best retrofit 
    technology * * * reasonably achievable'' as Congress required.
    
    V. Economic Impact
    
        Today's proposed action would have no additional economic impact 
    compared to the economic impact
    
    [[Page 58026]]
    
    described in original regulations finalized on April 23, 1993. While 
    failure to take the proposed action could result in reduced costs for 
    those transit operators who could take advantage of the loophole, no 
    additional costs unaccounted for in the original regulations would be 
    imposed on any transit operators as a result of today's proposed 
    action. The costs associated with this program have already been 
    determined to be reasonable and the program to be cost-effective.
    
    VI. Public Participation
    
    A. Comments and the Public Docket
    
        EPA solicits comments on all aspects of this proposal from all 
    interested parties since it is our desire to ensure full public 
    participation in arriving at final decisions. Wherever applicable, 
    complete supporting data and analyses should be submitted to allow EPA 
    to make the maximum use of comments. Commenters are encouraged to 
    provide specific suggestions for changes to any of the proposal. All 
    comments should be directed to the EPA Air Docket No. A-91-28 (Category 
    VII) (See ADDRESSES).
    
    B. Public Hearing
    
        EPA will hold a public hearing on this proposal on December 6, 1996 
    if it receives a request by November 22, 1996. EPA will cancel this 
    hearing if no one requests to testify. Members of the public should 
    call the contact person indicated above to notify EPA of their interest 
    in testifying at the hearing. Interested parties may call the contact 
    person after November 22, 1996 to determine whether the hearing will be 
    held and the time and location of the hearing.
    
    VII. Administrative Designation and Regulatory Analysis
    
        Under Executive Order 12866 (58 FR 51735 (October 4, 1993)), EPA 
    must determine whether a regulatory action is ``significant'' and 
    therefore subject to OMB review and the requirements of the executive 
    order. The order defines ``significant regulatory action'' as one that 
    is likely to result in a rule that may:
        (1) Have an annual effect on the economy of $100 million or more or 
    adversely affect in a material way the economy, a sector, the economy, 
    productivity, competition, jobs, the environment, public health or 
    safety, or State, local, or tribal governments or communities;
        (2) Create a serious inconsistency or otherwise interfere with an 
    action taken or planned by another agency;
        (3) Materially alter the budgetary impact of entitlement, grants, 
    user fees, or loan programs or the rights and obligations of recipients 
    thereof;
        (4) Raise novel legal policy issues arising out of legal mandate, 
    the President's priorities, or the principles set forth in the order.
        EPA has determined that this rule is not a ``significant regulatory 
    action'' under the terms of Executive Order 12866 and is therefore not 
    subject to OMB review.
    
    VIII. Impact on Small Entities
    
        The Regulatory Flexibility Act requires Federal agencies to 
    consider potentially adverse impacts of proposed federal regulations 
    upon small entities. In instances where significant impacts are 
    possible on a substantial number of these entities, agencies perform a 
    proposed Regulatory Flexibility Analysis.
        I certify that there will not be a significant adverse impact on a 
    substantial number of small business entities due to the proposed 
    revision of the urban bus retrofit/rebuild program. The urban bus 
    operators affected by the program regulations are generally not small 
    businesses. In addition, EPA determined the original regulations 
    relating to the urban bus retrofit/rebuild program did not have an 
    adverse impact on a substantial number of small entities. Today's 
    proposed revision does not impose any new costs above those included in 
    the original rulemaking. Today's action will affect only a few 
    businesses using the retrofit fleet averaging program and will likely 
    have an effect solely on a small portion of the businesses' fleet. 
    There may be benefit to those small business entities that manufacture 
    retrofit/rebuild equipment, since urban bus operators may be required 
    to use such equipment.
    
    IX. Reporting and Recordkeeping Requirements
    
        Under the Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq., 
    EPA must obtain OMB clearance for any activity that will involve 
    collecting substantially the same information from 10 or more non-
    Federal respondents. The regulatory revisions proposed in today's 
    notice do not include any provisions for the collection of information 
    from non-Federal respondents.
    
    X. Unfunded Mandates Act
    
        Section 202 of the Unfunded Mandates Reform Act of 1995 (signed 
    into law on March 22, 1995) requites that 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 of the Unfunded Mandates Reform Act 
    requires 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 EPA, must identify 
    and consider a reasonable number of regulatory alternatives before 
    promulgating a rule for which a budgetary impact statement must be 
    prepared. EPA must select from those alternatives the least costly, 
    most costly, most cost effective, or least burdensome alternative that 
    achieves the objectives of the rule, unless EPA explains why this 
    alternative is not selected or the selection of this alternative is 
    inconsistant with law.
    
    List of Subjects in 40 CFR Part 85
    
        Environmental protection, Imports, Labeling, Motor vehicle 
    pollution, Reporting and recordkeeping requirements, Research, 
    Warranties.
    
        Dated: November 1, 1996.
    Carol M. Browner,
    Administrator.
    
        For the purposes set out in the preamble, part 85 of title 40, 
    chapter I of the Code of Federal Regulations is proposed to be amended 
    as follows:
    
    PART 85--[AMENDED]
    
        1. The authority citation for part 85 is revised to read as 
    follows:
    
        Authority: 42 U.S.C. 7401-7671q.
    
    Subpart O--[Amended]
    
        2. Section 85.1403 is proposed to be amended by revising paragraph 
    (c)(1)(iii)(C) and adding paragraph (c)(1)(iii)(D) to read as follows:
    
    
    Sec. 85.1403  Particulate standard for pre-1994 model year urban buses 
    effective at time of engine rebuild or engine replacement.
    
    * * * * *
        (c) * * *
        (1) * * *
        (iii) * * *
        (C) For TLF calculations for calendar year 1998, post-rebuild 
    particulate emission levels for a specific engine model shall be equal 
    to the following:
        (1) 0.10 g/bhp-hr, for any engine model (other than those indicated 
    in paragraph (c)(1)(iii)(C)(4) of this section) for which equipment has 
    been certified by July 1, 1996 as meeting the emission and cost 
    requirements of paragraph (b)(1) of this section for all affected urban 
    bus operators;
    
    [[Page 58027]]
    
        (2) For any engine model for which no equipment has been certified 
    by July 1, 1996 as meeting the requirements of paragraph (b)(1) of this 
    section for all affected urban bus operators, but for which equipment 
    has been certified by July 1, 1996 as meeting the emission and cost 
    requirements of paragraph (b)(2) of this section for all affected urban 
    bus operators, the post-rebuild particulate emission level shall equal 
    the lowest emission level (greater than or equal to 0.10 g/bhp-hr) 
    certified for any such equipment;
        (3) For any engine model for which no equipment has been certified 
    by July 1, 1996 as meeting the requirements of either paragraph (b)(1) 
    or paragraph (b)(2) of this section, the post-rebuild particulate 
    emission level shall equal the pre-rebuild particulate level;
        (4) For any engine model with a pre-rebuild particulate level below 
    0.10 g/bhp-hr, the post-rebuild particulate emission level shall equal 
    the pre-rebuild particulate level; and
        (5) Notwithstanding paragraph (c)(1)(iii)(C)(3) of this section, if 
    by July 1, 1996, no equipment has been certified to meet the emission 
    requirements of paragraph (b)(1) or paragraph (b)(2) of this section 
    for any of the engine models listed in the table at paragraph 
    (c)(1)(iii)(A) of this section, then the post-rebuild particulate 
    levels shall be the pre-rebuild particulate levels specified in the 
    table at paragraph (c)(1)(iii)(A) of this section.
        (D) For TLF calculations for calendar year 1999 and thereafter, 
    post-rebuild particulate emission levels for a specific engine model 
    shall be equal to the following:
        (1) 0.10 g/bhp-hr, for any engine model for which equipment has 
    been certified by July 1, 1997 as meeting the emission and cost 
    requirements of paragraph (b)(1) of this section for all affected urban 
    bus operators;
        (2) For any engine model for which no equipment has been certified 
    by July 1, 1997 as meeting the requirements of paragraph (b)(1) of this 
    section for all affected urban bus operators, for which equipment has 
    been certified by July 1, 1997 as meeting the emission and cost 
    requirements of paragraph (b)(2) of this section for all affected urban 
    bus operators, the post-rebuild particulate emission level shall equal 
    the lowest emission level (greater than or equal to 0.10 g/bhp-hr) 
    certified for any such equipment;
        (3) For any engine model for which no equipment has been certified 
    by July 1, 1997 as meeting the emission and cost requirements of 
    paragraph (b)(1) or paragraph (b)(2) of this section for all affected 
    urban bus operators, the post-rebuild particulate emission level shall 
    equal the pre-rebuild particulate level;
        (4) For any engine model with a pre-rebuild particulate level below 
    0.10 g/bhp-hr, the post-rebuild particulate emission level shall equal 
    the pre-rebuild particulate level;
        (5) Notwithstanding paragraph (c)(1)(iii)(D)(3) of this section, if 
    by July 1, 1997, no equipment has been certified for any of the engine 
    models listed in the table at paragraph (c)(1)(iii)(A) of this section, 
    then the post-rebuild particulate levels shall be as indicated in the 
    table at paragraph (c)(1)(iii)(A) of this section; and
        (6) Notwithstanding paragraph (c)(1)(iii)(D)(3) of this section, if 
    by July 1, 1997, equipment has been certified to meet the emissions 
    requirements of paragraph (b)(1) or paragraph (b)(2) of this section 
    for any of the engine models listed in the table at paragraph 
    (c)(1)(iii)(A) of this section, but no equipment has been certified by 
    July 1, 1996 to meet the life-cycle cost requirements of paragraph 
    (b)(1) or paragraph (b)(2) of this section, then the post-rebuild 
    particulate levels shall be as specified in the following table:
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Post-   
                                                                                            Pre-rebuild   rebuild PM
                     Engine model                              Model year sold                PM level    level  (g/
                                                                                             (g/bhp-hr)    bhp-hr)  
    ----------------------------------------------------------------------------------------------------------------
    DDC 6V92TA...................................  1979-1987..............................         0.50         0.30
                                                   1988-1989..............................         0.30         0.30
    DDC 6V92TA DDECI.............................  1986-1987..............................         0.30         0.30
    DDC 6V92TA DDECII............................  1988-1991..............................         0.31         0.25
                                                   1992...................................         0.25         0.25
                                                   1993 (no trap).........................         0.25         0.25
                                                   1993 (trap)............................         0.07         0.07
    DDC Series 50................................  1993...................................         0.16         0.16
    DDC 6V71N....................................  1973-1987..............................         0.50         0.50
                                                   1988-1989..............................         0.50         0.50
    DDC 6V71T....................................  1985-1986..............................         0.50         0.50
    DDC 8V71N....................................  1973-1984..............................         0.50         0.50
    DDC 6L71TA...................................  1990...................................         0.59         0.59
                                                   1988-1989..............................         0.31         0.31
    DDC 6L71TA DDEC..............................  1990-1991..............................         0.30         0.30
    Cummins L10..................................  1985-1987..............................         0.65         0.46
                                                   1988-1989..............................         0.55         0.46
                                                   1990-1991..............................         0.46         0.46
    Cummins L10 EC...............................  1992...................................         0.25         0.25
                                                   1993 (trap)............................         0.05         0.05
    Alternatively-fueled Engines.................  Pre-1994...............................         0.10         0.10
    Other Engines................................  Pre-1988...............................         0.50         0.50
                                                   1988-1993..............................          \1\         \1\ 
    ----------------------------------------------------------------------------------------------------------------
    \1\ Certification level.                                                                                        
    
    
    [[Page 58028]]
    
    [FR Doc. 96-28732 Filed 11-8-96; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
11/12/1996
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
96-28732
Dates:
Written comments on this proposal will be accepted until December 12, 1996, or 30 days after the date of a public hearing, if one is held.
Pages:
58022-58028 (7 pages)
Docket Numbers:
FRL-5649-4
PDF File:
96-28732.pdf
CFR: (1)
40 CFR 85.1403