[Federal Register Volume 61, Number 56 (Thursday, March 21, 1996)]
[Rules and Regulations]
[Pages 11552-11556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6597]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[IN66-1-7289a; FRL-5439-6]
Approval and Promulgation of State Implementation Plan; Indiana;
Clean-Fuel Fleet Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
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SUMMARY: The U.S. Environmental Protection Agency (USEPA) is giving
full approval through a direct final action to a state implementation
plan (SIP) revision request submitted on December 20, 1995, and
February 14, 1996, by the State of Indiana for the purpose of
establishing a Clean-Fuel Fleet Program (CFFP) in Lake and Porter
Counties. Lake and Porter Counties are classified as severe
nonattainment for ground-level ozone, commonly known as urban smog, and
are required under the Clean Air Act (CAA) to attain the National
Ambient Air Quality Standards (NAAQS) by 2007. The Indiana CFFP, which
is also required by the CAA, is one of the control measures being
implemented in these counties to reduce ozone precursor emissions in
order to help attain the ozone standard. The Indiana CFFP requires
that, beginning in Model Year (MY) 1998, a specified percentage of the
new vehicles acquired by certain vehicle fleets operating in Lake and
Porter Counties meet clean fuel vehicle (CFV) emissions standards,
which are more stringent than current federal vehicle standards.
Indiana expects that after the full phase-in of the CFFP, approximately
3500 fleet vehicles in Lake and Porter Counties will meet the CFV
tailpipe standards.
DATES: This final rule is effective May 20, 1996 unless adverse
comments are received by April 22, 1996. If the effective date is
delayed, timely notice will be published in the Federal Register.
ADDRESSES: Copies of this submittal, and other documents pertinent to
this direct final rule 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 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: Mark J. Palermo, Environmental
Protection Specialist, Regulation Development Section, Air Programs
Branch (AR-18J), United States Environmental Protection Agency, Region
5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6082.
SUPPLEMENTARY INFORMATION:
I. Background
On November 15, 1990, Congress enacted amendments to the 1977 CAA,
codified at 42 U.S.C. 7401-7671q. The CFFP is contained under Part C of
Title II of the CAA, entitled ``Clean Fuel Vehicles.'' Part C was added
to the CAA to establish two programs, a clean-fuel vehicle pilot
program in the state of California (the California Pilot Test Program)
and a federal CFFP in certain ozone and carbon monoxide (CO)
nonattainment areas.
The CFFP will introduce lower polluting vehicles, CFVs, into
centrally-fueled fleets by requiring covered fleet operators to include
a specified percentage of CFVs in their new fleet purchases. The goal
of the CFFP is to reduce emissions of non-methane organic gases (NMOG),
oxides of nitrogen (NOx), and CO through the introduction of CFVs
into the covered areas. Both NMOG and NOx are precursors of ozone
and, in most areas, their reduction will reduce the concentration of
ozone in covered ozone nonattainment areas. Reductions of vehicular CO
emissions will reduce the concentration of CO in covered CO
nonattainment areas.
Congress chose centrally-fueled fleets because operators of these
fleets have more control over obtaining fuel than the general public.
Additionally, the control that operators maintain over their fleets
simplifies maintenance and refueling of these vehicles. Finally,
because fleet vehicles typically travel more miles on an annual basis
than do non-fleet vehicles, they provide greater opportunity to improve
air quality on a per vehicle basis.
Section 182(c)(4) of the CAA allows states to opt-out of the CFFP
by submitting, for USEPA approval, a SIP revision consisting of a
substitute program resulting in as much or greater long term emission
reductions in ozone producing and toxic air emissions as the CFFP. The
USEPA may approve such a revision ``only if it consists exclusively of
provisions other than those required under the [CAA] for the area.''
USEPA has promulgated rulemakings on March 1, 1993, December 9,
1993, and September 30, 1994, establishing emission standards for CFVs
and criteria for state CFFPs (See 58 FR 11888, 58 FR 64679, and 59 FR
50042). These rules were codified in 40 CFR part 88.
II. Program Requirements
Unless a state chooses to opt-out of the CFFP under section
182(c)(4) of the CAA, section 246 of the CAA directs a state containing
covered areas to revise its SIP, within 42 months after enactment of
the CAA, to establish a CFFP. The CFFP shall require a specified
percentage of all newly acquired vehicles of covered fleets, beginning
with MY 1998 and thereafter, to be CFVs, and such vehicles shall use
the fuel on which the vehicle was certified to be a CFV (or to use a
fuel that will result in even fewer emissions than the fuel that was
used for certification), when operating in the covered area.
III. State Submittal
The State of Indiana did not choose to opt-out of the CFFP pursuant
to section 182(c)(4) of the CAA. On December 7, 1994, the Indiana Air
Pollution Control Board (IAPCB) held a preliminary adoption hearing on
a proposed rule to establish a CFFP program, and on October 4, 1995,
the IAPCB adopted the rule. The rule became effective on January 18,
1996, and was published in the Indiana State Register on February 1,
1996. The Indiana Department of Environmental Management (IDEM)
formally submitted the CFFP rule to USEPA on December 20, 1995, as a
revision to the Indiana ozone SIP, and submitted an addendum which
included the Secretary of State signature and the published rule on
February 14, 1996.
The December 20, 1995, and February 14, 1996, submittals contains
the following new rules:
326 Indiana Air Code (IAC) 19-3 Clean Fuel Fleet Vehicles
19-3-1 Applicability
19-3-2 Definitions
19-3-3 General purchase requirements
19-3-4 Banking and trading of credits
[[Page 11553]]
19-3-5 Registration and recordkeeping requirements
19-3-6 Exemptions from transportation control measures
19-3-7 Violations
IV. USEPA's Analysis of the State's Clean Fuel Fleet Program
USEPA has reviewed the State's submittal for consistency with the
requirements of USEPA regulations at 40 CFR Part 88. A summary of
USEPA's analysis is provided below.
A. Covered Areas
The SIP revision needs to list those areas where the CFFP will be
implemented, as required by section 246(a)(2) of the CAA. In Indiana,
the applicable areas defined by section 246(a)(2) are Lake and Porter
Counties.
Section 19-3-1 defines the CFFP's covered area as Lake and Porter
Counties. These are the same counties as required by the CAA.
B. Definitions
Sections 241(1) through (7) of the CAA, and 40 CFR 88.302-94,
define specific terms that are to be used in state CFFP regulations.
Section 19-3-2 contains definitions of the terms used by Indiana in
the CFFP rule. The revision's definitions are consistent with section
241(1) through (7) of the CAA as well as 40 CFR Part 88.302-94.
C. Fleet Applicability
Section 246(b) requires that the SIP revision's provisions for
compliance with the CFFP apply to ``covered fleet operators.'' The
definition of ``covered fleet operator,'' as provided for in 40 CFR
88.302-94, can be broken down into the following criteria which the SIP
revision must include in order to determine which fleet operators are
``covered fleet operators:''
(a) The fleet operator is a person (individual, business, agency,
etc;) who owns, operates, leases, or otherwise controls ten or more
fleet vehicles. Vehicles leased for less than 120 days are exempt from
this criteria.
(b) At least ten of those fleet vehicles are in a vehicle class
which is required by the CAA to be covered in the program. These
vehicle classes are light-duty vehicles and light-duty trucks (LDVs and
LDTs) less than 8,500 pounds Gross Vehicle Weight Rating (GVWR) and
heavy-duty trucks (HDTs) less than 26,000 pounds GVWR.
(c) At least ten of those vehicles are not exempt from the program.
Section 241(5) of the CAA exempts motor vehicles held for lease or
rental (without a driver) to the general public, motor vehicles held
for sale by motor vehicle dealers (including demonstration vehicles),
motor vehicles used for motor vehicle manufacturer product evaluations
or tests, law enforcement and other emergency vehicles, and nonroad
vehicles (including farm and construction vehicles).
(d) At least ten of those vehicles operate in the covered area. All
fleet vehicles which are garaged in the covered area are considered to
``operate in the covered area.'' In addition, 40 CFR 88.302-94 provides
that fleet vehicles that operate in, but are garaged outside, the
covered area be included in the CFFP. This means that fleet vehicles
garaged outside the Lake and Porter Counties but nonetheless operated
in those counties are applicable to the CFFP rules.
(e) At least ten of those vehicles can be centrally fueled 100
percent of the time. ``Can be centrally fueled,'' as defined in 40 CFR
88.302-94, means the sum of those vehicles that are centrally fueled
and those vehicles that are capable of being centrally fueled. Fleet
vehicles are ``centrally fueled'' when they are fueled 100 percent of
the time at a location that is owned, operated, or controlled by the
covered fleet operator, or is under contract with the covered fleet
operator. Location, as defined in 40 CFR 88.302-94(3), means any
building structure, facility, or installation which; is owned or
operated by a person, or is under the control of a person; is located
on one or more contiguous properties and contains or could contain a
fueling pump or pumps for the use of the vehicles owned or controlled
by that person. Any vehicle under normal operation which is garaged at
a personal residence that is, in fact, centrally fueled 100 percent of
the time shall be considered to be ``centrally fueled'' for
applicability purposes.
On the other hand, a fleet vehicle that is ``capable of being
centrally fueled'' is one which could be refueled 100 percent of the
time at a location that is owned, operated, or controlled by the
covered fleet operator, or is under contract with the fleet operator.
Fleet vehicles garaged at a personal residence would not be considered
being ``capable of being centrally fueled'' for applicability purposes.
A state must, in its SIP revision, provide a methodology to be used in
determining how many fleet vehicles are capable of being centrally
fueled, subject to USEPA approval.
Section 19-3-1 and 19-3-2 of the Indiana rule contain all the
necessary components for determining covered fleet operator
applicability as described above. Further, the rule states in
subsection 19-3-2(4) that the determination of ``capable of being
centrally fueled'' shall be made by using USEPA's recommended method
provided on December 9, 1993 (58 FR 64684), as amended on September 30,
1994 (59 FR 50068). This method includes requiring covered fleet
operators which control vehicles which are not centrally fueled 100
percent of the time to develop trip profiles which indicate the
refueling patterns of those vehicles. These trip profiles will, in
turn, be used to calculate the number of vehicles in the fleet which
are capable of being centrally fueled.
D. Clean-Fuel Vehicles (CFVs)
Section 241(7) of the CAA defines a CFV to mean a vehicle in a
class or category of vehicles that has been certified to meet for any
model year the applicable CFV standards. 40 CFR 88.104-94 and 40 CFR
88.105-94 establish three categories of increasingly stringent CFV
standards, which are referred to as low-emission vehicle (LEV)
standards, ultra low-emission vehicle (ULEV) standards, and zero-
emission vehicle (ZEV) standards.
Section 19-3-2(7) of the Indiana rule defines a CFV as a vehicle
certified as a LEV, ULEV, or ZEV when it is operating on the clean fuel
for which the vehicle was certified as a clean fuel vehicle, meeting
the emissions standards applicable to such a vehicle promulgated
September 30, 1994 at 59 FR 50042. The standards specified in the rule
are the same as those established in 40 CFR 88.104-94 and 40 CFR.105-
94.
E. Percentage Requirements
Section 246(b) of the CAA provides that the SIP revision require
that at least a specified percentage of all new covered fleet vehicles
in MY 1998 and thereafter purchased by each covered fleet operator
shall be CFVs, and that these CFVs shall use the clean fuel or fuels
for which they were certified to operate on when operating in the
covered area.
``New covered fleet vehicle,'' for purposes of this requirement,
means a vehicle that has not been previously controlled by the current
purchaser, regardless of the MY, except as follows: vehicles that were
manufactured before the start of MY 1998 for such vehicle's weight
class, vehicles transferred due to the purchase of a company not
previously controlled by the purchaser or due to a consolidation of
business operations, vehicles transferred as part of an employee
transfer, or vehicles transferred for seasonal requirements, that is,
less than 120 days (See 40 CFR
[[Page 11554]]
88.302-94). This definition of new covered fleet vehicle is distinct
from the definition of new vehicle as it applies to manufacturer
certification, including the certification of vehicle to clean fuel
standards.
Further, section 246(b) of the CAA provides the following table
detailing the phase-in of the specified percentage requirements, which
must be included in the SIP revision:
----------------------------------------------------------------------------------------------------------------
MY 1998 MY 1999 MY 2000
Vehicle type (percent) (percent) (percent)
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LDTs up to 6000 lbs. GVWR and LDVs.............................. 30 50 70
HDTs above 8,500 lbs. GVWR but below 26,000 lbs. GVWR........... 50 50 50
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As an alternative to purchasing CFVs to meet the purchase
requirement, section 246 allows fleet operators to redeem CFFP credits
instead (the CFFP credit provisions are described in further detail
below). Also, section 247 provides that new or existing vehicles owned
or purchased by the fleet can be converted to meet CFV standards, if
the conversions were made according to requirements promulgated at 40
CFR 88.306. (See September 30, 1994, at 59 FR 50042).
Finally, section 246(d) of the CAA requires that the choice of CFVs
and clean fuels shall be at the discretion of the covered fleet
operators.
The Indiana rule correctly incorporates all of the above required
percentage purchase requirements which will be placed upon covered
fleet operators. It also includes the three ways listed above to comply
with the purchase requirement. Section 19-3-3(d) of the Indiana rule
provides that the fleet operator shall decide which CFVs and fuels to
use in order to comply with the purchase requirement. Section 19-3-3(f)
requires that CFVs used to meet purchase requirements or generate
credits shall operate at all times on the fuel for which they were
certified as CFVs in Lake and Porter Counties. Finally, the rule
requires at section 3(b) that CFV conversions must be done in
accordance with the requirements for CFV conversions contained in 59 FR
50042, September 30, 1994.
G. Credit Program
Section 246(f) of the CAA and 40 CFR 88.304-94 require states to
implement a credit program as part of their CFFPs. Briefly, the CFFP
credit program establishes a market-based mechanism that allows fleet
owners some flexibility in complying with the CFFP purchase
requirement. The regulations under 40 CFR 88.304-94 require CFFPs to
allow fleet operators to generate credits in any of the following ways:
(1) by the purchase of more CFVs than the minimum required by a CFFP;
(2) by the purchase of CFVs which meet more stringent emission
standards than the minimum required by the CFFP; (3) by the purchase of
CFVs otherwise exempt from the CFFP; and (4) by the purchase of CFVs
before MY 1998.
40 CFR 88.304-94 further states that the credits generated may be
used by a covered fleet operator to satisfy the purchase requirements
of a CFFP or may be traded by one covered fleet operator to another,
provided the credits were generated, traded, and used by operators
located in the same nonattainment area. Lake and Porter Counties are in
the same ozone nonattainment area as the Chicago area (as codified in
40 CFR 81.314 and 40 CFR 81.315), so that fleet operators covered under
the Indiana CFFP can trade credits with fleet operators covered under
the Illinois CFFP for the Chicago area portion of the ozone
nonattainment area, and vice versa. Certain restrictions on the trading
of the credits between classes must be observed. The credits do not
depreciate with time and are to be freely traded without interference
by the State.
Section 19-3-4 establishes rules for acquiring, trading and
redeeming credits under the Indiana CFFP credit program according to
regulations established in 40 CFR 88.304-94. The rule under 19-3-
4(d)(4) requires credits for LDV and HDV to be kept separate. Trading
of credits between the LDV and LDT subclasses is permitted. However,
trading is not allowed between the HDV class and LDV/LDT class, or
between HDV subclasses in an upward direction. These limitations and
restrictions are consistent with those specified in section 246(f)(2)
of the CAA. Moreover, section 19-3-4(a)(11) specifies that CFVs used to
meet the purchase requirements or to generate purchase credits for a
fleet operator cannot be used to satisfy additional purchase
requirements or generate additional purchase credits for any other
fleet operator, even if the latter operator purchases or acquires those
CFVs from the former. Section 19-3-4(e) of the Indiana rule includes
tables which set forth the amount of credit granted for the various
ways of meeting the purchasing requirements explained above. These
tables are identical to Tables C94-1.1, C94-1.2, C94-1.3, C94-4.1, C94-
4.2, and C94-4.3 of 40 CFR Part 88, Subpart C.
Finally, the rule specifies that each fleet operator submit an
annual report to IDEM which indicates the number of credits sold,
traded, or purchased during the previous year and the number of credits
proposed to be used by the operator to satisfy purchase requirements
for that year.
H. Fuel Use
40 CFR 88.304-94(b)(3) requires that the fuel on which a dual fuel/
flexible fuel CFV was certified must be used at all times when the
vehicle is in the covered area.
Section 19-3-3(f) requires that any CFV acquired to meet the
purchase requirements of the CFFP or to generate credits must be
operated, while in the covered area, on the fuel or power source for
which it was certified by USEPA to meet applicable emission standards.
It should be noted that the definition of ``clean alternative
fuel'' under section 241(2) of the CAA does not designate particular
fuels as fuels that vehicles must use in order to be considered CFVs.
Rather, for purposes of the CFFP, ``clean alternative fuel,'' is
defined under section 241(2) of the CAA as meaning any fuel or power
source used in a CFV that complies with the standards and requirements
applicable to such vehicle under the CFFP when using such fuel or power
sources. In other words, when a vehicle model is certified to meet CFV
emission standards, the fuel type the vehicle model used to achieve
those standards is considered the ``clean alternative fuel.''
A CFV can operate on any fuel, including gasoline, as long as the
vehicle's manufacturer received a certificate from the USEPA for that
vehicle model confirming that it meets the particular CFV emission
standard when using that fuel. The type of fuel or power source on
which a CFV will operate on will be determined only by what fuel the
CFV has been certified to use.
I. Fuel Availability:
Section 246(e) of the CAA requires the SIP revision to require fuel
providers to
[[Page 11555]]
make clean alternative fuel available to the covered fleets at central
locations.
Because fuel providers in Lake and Porter Counties are already
required by USEPA to make reformulated gasoline available, and USEPA
expects that many CFVs in MY 1998 will be certified to operate on
reformulated gasoline, USEPA believes that section 246(e) is satisfied
for purposes of the Indiana CFFP.
J. Consultation
Section 246(a)(4) of the CAA requires that the SIP revision must be
developed in consultation with fleet operators, vehicle manufacturers,
fuel producers, distributors of motor vehicle fuel, and other
interested parties, taking into consideration operational range,
specialty uses, vehicle and fuel availability, costs, safety, resale
values, and other relevant factors.
On October 14, 1994, before the IAPCB preliminarily adopted the
CFFP, IDEM sent a letter, addressed to 250 representatives of fleet
operators and fuel providers expected to be affected by the Indiana
CFFP, which described the program, solicited comment on the proposed
rule, invited the representatives to participate with IDEM in the
program's development, and invited them to attend the IAPCB preliminary
adoption hearing.
On August 31, 1995, before the IAPCB adopted the CFFP, IDEM sent a
letter to these same representatives inviting them to attend an
informational session where IDEM and the regulated community could meet
together to discuss the CFFP and be given further opportunity to
comment on the rule. This meeting was held in Portage, Indiana on
September 20, 1995.
K. Recordkeeping and Monitoring
USEPA recommends that the State include recordkeeping provisions in
its CFFP that require fleet operators to register with the State in
advance of MY 1998 in order to provide information to be used to
determine their covered status, require annual reports from covered
fleet operators indicating annual fleet acquisitions, fuel use, and
credit generation/redemption to determine compliance, and require
covered and noncovered fleet operators to submit periodic reports
indicating covered status (See 58 FR at 64679, December 9, 1993).
Section 19-3-5 provides for recordkeeping and reporting
requirements as described above. In addition, 19-3-5 requires that
information required in the annual report, as well as routine
maintenance records for all vehicles, shall be maintained by the
covered fleet operator for compliance audit purposes. Monthly odometer
readings, fuel economy information, and fuel usage for dual fuel or
flexible-fuel vehicles also need to be kept, as well as copies of
converted vehicle certification for all converted clean-fuel vehicles.
CFVs shall at all times be accompanied by certification that they are
CFVs.
L. Enforcement
40 CFR 88.304-94(b)(ii) requires that each CFFP SIP revision
stipulate the specific mechanism by which the CFFP will be administered
and enforced.
IDEM will oversee compliance and enforcement with this rule, and
will hire contractors to review the annual recordkeeping reports to
assure the regulatory requirements of the Indiana CFFP are being met.
The Indiana Code (IC) 13-7-13-1, states that any person who
violates any provision of IC 13-1-1, IC 13-1-3, or IC 13-1-11, or any
regulation or standard adopted by one (1) of the boards (i.e., IAPCB),
or who violates any determination, permit, or order made or issued by
the commissioner (of IDEM) pursuant to IC 13-1-1, or IC 13-1-3, is
liable for a civil penalty not to exceed twenty-five thousand dollars
per day of any violation. Because this submittal is a regulation
adopted by the IAPCB, a violation of which subjects the violator to
penalties under IC 13-7-13-1, and because a violation of the ozone SIP
would also subject a violator to enforcement under section 113 of the
CAA by USEPA, USEPA finds that the submittal contains sufficient
enforcement penalties for approval. In addition, IDEM has submitted a
civil penalty policy document which accounts for various factors in the
assessment of an appropriate civil penalty for noncompliance with IAPCB
rules, among them, the severity of the violation, intent of the
violator, and frequency of violations. USEPA finds these criteria
sufficient to deter non-compliance.
M. Transportation Control Measure Exemptions
40 CFR 88.307-94(a) requires states to exempt any CFV required by
law to participate in a CFFP from temporal-based (e.g., time-of-day or
day-of-week) transportation control measures (TCM) existing for air
quality reasons as long as the exemption does not create a clear and
direct safety hazard. In the case of high occupancy vehicle (HOV)
lanes, this exemption only applies to CFVs that are certified by USEPA
to be inherently low-emitting vehicles (ILEV) pursuant to 40 CFR
88.313-93.
Section 19-3-6 stipulates that CFVs shall receive TCM exemptions
from time-of-day, day-of-the-week, day-of-the-month, or other similar
time-based restrictions. Further, ILEVs shall be exempt from mechanisms
designed to reduce air pollution from motor vehicles by limiting their
use in certain areas, air quality related parking restrictions, and HOV
lane restrictions.
N. Conclusion
The USEPA has reviewed the Indiana CFFP SIP revision submitted to
the USEPA as described above. The materials contained in the SIP
revision represent an acceptable approach to the CFFP requirements and
meet the criteria required for approvability. The USEPA therefore
approves Indiana's CFFP SIP submittal. With this action, USEPA
incorporates Indiana's CFFP SIP revision into the SIP, making it
federally enforceable.
Procedural Background
A. Direct Final Action
The USEPA is publishing this action without prior proposal because
USEPA views this action as a noncontroversial revision and anticipates
no adverse comments. However, USEPA is publishing a separate document
in this Federal Register publication, which constitutes a ``proposed
approval'' of the requested SIP revision and clarifies that the
rulemaking will not be deemed final if timely adverse or critical
comments are filed. The ``direct final'' approval shall be effective on
May 20, 1996, unless USEPA receives adverse or critical comments by
April 22, 1996. If USEPA receives comments adverse to or critical of
the approval discussed above, USEPA will withdraw this approval before
its effective date by publishing a subsequent Federal Register document
which withdraws this final action. All public comments received will
then be addressed in a subsequent rulemaking document. Any parties
interested in commenting on this action should do so at this time. If
no such comments are received, USEPA hereby advises the public that
this action will be effective on May 20, 1996.
B. Executive Order 12866
This action has been classified as a Table 3 action for signature
by the Regional Administrator under the procedures published in the
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a
July 10, 1995, memorandum from Mary D. Nichols, Assistant Administrator
for Air and Radiation. The Office of Management and Budget (OMB) has
[[Page 11556]]
exempted this regulatory action from Executive Order 12866 review.
C. Applicability to Future SIP Decisions
Nothing in this action should be construed as permitting, allowing
or establishing a precedent for any future request for revision to any
SIP. USEPA shall consider each request for revision to the SIP in light
of specific technical, economic, and environmental factors and in
relation to relevant statutory and regulatory requirements.
D. Unfunded Mandates
Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded
Mandates Act'') (signed into law on March 22, 1995) requires that the
USEPA 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 USEPA 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 USEPA must
identify and consider a reasonable number of regulatory alternatives
before promulgating a rule for which a budgetary impact statement must
be prepared. The USEPA must select from those alternatives the least
costly, most cost-effective, or least burdensome alternative that
achieves the objectives of the rule, unless the USEPA explains why this
alternative is not selected or the selection of this alternative is
inconsistent with law.
This final rule only approves the incorporation of existing state
rules into the SIP and imposes no additional requirements. This rule is
estimated to result in the expenditure by State, local, and tribal
governments or the private sector of less than $100 million in any one
year. USEPA, therefore, has not prepared a budgetary impact statement
or specifically addressed the selection of the least costly, most cost-
effective, or least burdensome alternative. Furthermore, because small
governments will not be significantly or uniquely affected by this
rule, the USEPA is not required to develop a plan with regard to small
governments.
E. Regulatory Flexibility
Under the Regulatory Flexibility Act, 5 U.S.C. section 600 et seq.,
USEPA must prepare a regulatory flexibility analysis assessing the
impact of any proposed or final rule on small entities. (5 U.S.C.
sections 603 and 604.) Alternatively, USEPA 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 section 110 and subchapter I, part D of the
Clean Air Act do not create any new requirements, but simply approve
requirements a State has already imposed. 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 Act, preparation of a regulatory flexibility analysis would
constitute Federal inquiry into the economic reasonableness of the
State action. The Clean Air Act forbids USEPA to base its actions
concerning SIPs on such grounds. Union Electric Co. v. USEPA., 427 U.S.
246, 256-66 (S.Ct. 1976); 42 U.S.C. section 7410(a)(2).
F. Petitions for Judicial Review
Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by May 20, 1996. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this rule for the purposes of judicial
review nor does it extend the time within which a petition for judicial
review may be filed, and shall not postpone the effectiveness of such
rule or action. This action may not be challenged later in proceedings
to enforce its requirements. (See Section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Hydrocarbons,
Incorporation by reference, Ozone, Motor vehicle pollution, Reporting
and recordkeeping requirements.
Dated: February 29, 1996.
Valdas V. Adamkus,
Regional Administrator.
For the reasons stated in the preamble, part 52, chapter I, title
40 of the Code of Federal Regulations is amended as follows:
PART 52--[AMENDED]
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
Subpart P--Indiana
2. Section 52.770 is amended by adding paragraph (c)(104) to read
as follows:
Sec. 52.770 Identification of plan.
* * * * *
(c) * * *
(104) On December 20, 1995, and February 14, 1996, Indiana
submitted a Clean-Fuel Fleet Program for Lake and Porter Counties as a
revision to the State Implementation Plan.
(i) Incorporation by reference. 326 Indiana Administrative Code 19-
3 Clean Fuel Fleet Vehicles, Sections 1 through 7. Adopted by the
Indiana Air Pollution Control Board October 4, 1995. Signed by the
Secretary of State December 19, 1995. Effective January 18, 1996.
Published at Indiana Register, Volume 19, Number 5, February 1, 1996.
[FR Doc. 96-6597 Filed 3-20-96; 8:45 am]
BILLING CODE 6560-50-P
