

[Federal Register: December 28, 2006 (Volume 71, Number 249)]
[Proposed Rules]               
[Page 78115-78123]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de06-22]                         

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2005-AZ-0009; FRL-8262-5]

 
Approval and Promulgation of Implementation Plans; Arizona; Motor 
Vehicle Inspection and Maintenance Programs

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve two revisions to the Arizona State 
Implementation Plan submitted by the Arizona Department of 
Environmental Quality. These revisions consist of changes to Arizona's 
Basic and Enhanced Vehicle Emissions Inspection Programs that would 
exempt collectible vehicles in the Phoenix metropolitan area, and 
collectible vehicles and motorcycles in the Tucson metropolitan area, 
from emissions testing requirements; an updated performance standard 
evaluation for the vehicle emissions inspection program in the Phoenix 
area; and new contingency measures. EPA is proposing approval of these 
two state implementation plan revisions because they meet all 
applicable requirements of the Clean Air Act and EPA's regulations and 
because the exemptions would not interfere with attainment or 
maintenance of the national ambient air quality standards in the two 
affected areas. EPA is proposing this action under the Clean Air Act 
obligation to take action on State submittals of revisions to state 
implementation plans. The intended effect is to exempt these vehicle 
categories from the emissions testing requirements of the State's 
vehicle emissions inspection programs as approved for the Phoenix and 
Tucson areas.

DATES: Written comments must be received at the address below on or 
before January 29, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-

[[Page 78116]]

OAR-2005-AZ-0009 by one of the following methods:
    http://www.regulations.gov. Follow the on-line instructions for 

submitting comments.
    E-mail: tax.wienke@epa.gov.
    Fax: (415) 947-3579 (please alert the individual listed in the FOR 
FURTHER INFORMATION CONTACT if you are faxing comments).
    Mail: Wienke Tax, Office of Air Planning, Environmental Protection 
Agency (EPA), Region 9, Mailcode AIR-2, 75 Hawthorne Street, San 
Francisco, California 94105-3901.
    Hand Delivery: Wienke Tax, Office of Air Planning, Environmental 
Protection Agency (EPA), Region 9, Mailcode AIR-2, 75 Hawthorne Street, 
San Francisco, California 94105-3901. Such deliveries are only accepted 
Monday through Friday, 8 a.m. to 4:55 p.m., excluding federal holidays. 
Special arrangements should be made for deliveries of boxed 
information.
    Instructions: Direct your comments to Docket ID No. EPA-R09-OAR-
2005-AZ-0009. EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online at http://www.regulations.gov, including any personal 

information provided, unless the comment includes information claimed 
to be Confidential Business Information (CBI) or other information 
whose disclosure is restricted by statute. Do not submit information 
that you consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site 

is an ``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA, without 
going through http://www.regulations.gov, your e-mail address will be 

automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional information about EPA's public 
docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm
.

    Docket: All documents in the docket are listed in the http://www.regulations.gov
 index. Although listed in the index, some 

information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy 
form. Publicly available docket materials are available either 
electronically in http://www.regulations.gov or in hard copy at the 

Office of Air Planning, Environmental Protection Agency (EPA), Region 
9, Mailcode AIR-2, 75 Hawthorne Street, San Francisco, California 
94105-3901. EPA requests that if at all possible, you contact the 
individual listed in the FOR FURTHER INFORMATION CONTACT section to 
view the hard copy of the docket. You may view the hard copy of the 
docket Monday through Friday, 8 a.m. to 4 p.m., excluding federal 
holidays.

FOR FURTHER INFORMATION CONTACT: Wienke Tax, Office of Air Planning, 
U.S. Environmental Protection Agency, Region 9, (520) 622-1622, e-mail: 
tax.wienke@epa.gov.


SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we'', 
``us'', and ``our'' refer to EPA.

Table of Contents

I. Introduction and Background
II. Summary of Arizona's SIP Submittals
III. EPA Review of the SIP Revisions
    A. CAA Procedural Provisions
    B. I/M Program Requirements
    1. Vehicle Coverage and Exemptions
    2. Compliance Enforcement
    3. Performance Evaluation
    C. Demonstrating Noninterference With Attainment and Maintenance 
Under CAA Section 110(l)
    1. Ozone
    2. Carbon Monoxide
    3. Particulate Matter
    4. Air Toxics
    5. Conclusion
    D. Contingency Provisions of CAA Section 175A(d)
IV. EPA's Proposed Action and Request For Public Comment
V. Statutory and Executive Order Reviews

I. Introduction and Background

    In May 1995, EPA approved Arizona's Basic and Enhanced Vehicle 
Emissions Inspection/Maintenance (VEI) Programs as meeting the 
applicable requirements of the Clean Air Act, as amended in 1990 (CAA 
or ``Act'') and EPA's motor vehicle inspection and maintenance rule 
(``EPA's I/M rule'' or ``federal I/M rule'') as amended. See 60 FR 
22518 (May 8, 1995). A ``basic'' I/M program was required in the Tucson 
Air Planning Area carbon monoxide (CO) nonattainment area (referred to 
by Arizona in this context as ``Area B'') and in the Phoenix 
metropolitan CO and ozone nonattainment area (referred to as ``Area 
A''). The VEI programs were designed to reduce emissions of CO, 
volatile organic compounds (VOC) and oxides of nitrogen 
(NOX).\1\ At that time, Arizona was not required to have an 
``enhanced'' I/M program, although Arizona was implementing most 
elements of an enhanced program in Phoenix. Arizona's program, as 
implemented in Phoenix, however, was not approved as an enhanced 
program, because the program did not satisfy all the requirements in 
EPA's I/M rule for enhanced programs. An enhanced I/M program became a 
requirement for the Phoenix area when the area was reclassified from 
``moderate'' nonattainment to ``serious'' nonattainment for the CO 
NAAQS effective August 28, 1996 (61 FR 39343, July 29, 1996), and when 
the area was reclassified from ``moderate'' nonattainment to 
``serious'' nonattainment for the 1-hour ozone NAAQS effective February 
13, 1998 (63 FR 7290, February 13, 1998).
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    \1\ The Phoenix metropolitan area is also a nonattainment area 
for respirable particulate matter (PM10); however, the 
VEI program plays a very minor role in the control strategy for this 
pollutant. There is no CAA requirement for I/M programs in 
PM10 nonattainment areas.
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    Since the Arizona VEI programs were originally approved in May 
1995, EPA has amended the federal I/M rule several times to provide 
states with more flexibility in designing their programs but also to 
require testing of the on-board diagnostic (OBD) system. Since that 
time, Arizona has also made a number of changes to its enhanced and 
basic VEI programs.
    In January 2003, we approved changes to the Arizona VEI programs 
submitted to us on July 6, 2001 and April 10, 2002, including the 
incorporation of OBD testing, an exemption for the first five model 
year vehicles from the programs on a rolling basis, replacement of the 
previously-approved remote sensing program in Phoenix with an on-road 
testing study, and legislative changes to the waiver provisions. See 68 
FR 2912 (January 22, 2003). In our January 2003 final rule, we also 
approved the VEI program in the Phoenix area as meeting the enhanced I/
M program performance standard. In today's notice, we propose action on 
a statutory change made by the Arizona Legislature to the Arizona VEI 
programs to exempt certain categories of vehicles from emissions 
testing requirements.

[[Page 78117]]

II. Summary of Arizona's SIP Submittals

    The Arizona Department of Environmental Quality (ADEQ) submitted 
the most recent statutory changes to its Basic and Enhanced VEI 
Programs as a revision to the Arizona State Implementation Plan (SIP) 
on December 23, 2005 (``VEI SIP Revision''). The VEI SIP Revision 
submittal includes the SIP revision itself, divided into a non-
regulatory portion, ``Final Arizona State Implementation Plan Revision, 
Basic and Enhanced Vehicle Emissions Inspection/Maintenance Programs'' 
(December 2005), and a regulatory portion, House Bill (HB) 2357, as 
well as supporting materials related to legal authority, adoption, 
public process and technical analysis.
    HB 2357 amends the Arizona Revised Statutes (ARS) Section 49-542 by 
exempting vehicles that are at least 15 years old or are of a unique 
and rare design and that carry collectible vehicle insurance that 
restricts the mileage and/or use of the vehicle (``collectible 
vehicles'') from emissions testing in both Area A (i.e., the Phoenix 
area) and Area B (i.e., the Tucson area). In addition, HB 2357 exempts 
motorcycles in the Tucson area from emissions testing. Specifically, 
the amendments to ARS 49-542 are found in paragraphs or subparagraphs 
(J)(2)(k), (J)(2)(l), (Y), and (Z) of that section of code. The changes 
to ARS Section 49-542 are self-implementing, which means that they 
become effective upon EPA approval as a revision to the Arizona SIP.
    Among the technical materials included in the VEI SIP Revision 
submittal package is a report \2\ prepared by ADEQ that evaluates the 
impacts of exempting three vehicle categories (vehicles 25 model years 
old and older, motorcycles, and collectible vehicles) from the 
emissions testing requirements on ambient air quality and on the 
ability of Areas A and B (i.e., Phoenix and Tucson, respectively) to 
maintain or attain the national ambient air quality standards (NAAQS). 
The report concluded that the testing and repair of these vehicle 
categories as a whole does provide a significant air quality benefit. 
The analysis, however, also identified a subset of vehicle categories 
(collectible vehicles in Phoenix and Tucson plus motorcycles in Tucson) 
for which the emissions testing requirement does not provide a 
significant air quality benefit and for which exemption would not 
interfere with continued maintenance of the CO NAAQS or progress 
towards the 8-hour ozone NAAQS. HB 2357 was a Legislative response to 
the findings in this report.
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    \2\ ``Report on Potential Exemptions from Vehicle Emissions 
Testing for Motorcycles, Collectible Vehicles, and Vehicles 25 Model 
Years Old and Older'' (December 2004).
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    In consultation with EPA concerning the VEI SIP Revision, ADEQ 
prepared an updated performance standard evaluation for the VEI program 
in the Phoenix area to reflect the new exemption for collectible 
vehicles, and developed new contingency measures that are intended to 
provide for reinstatement of emissions testing for the newly exempt 
vehicle categories in the event that a violation of the carbon monoxide 
NAAQS were to be recorded in the Phoenix or Tucson areas. On October 3, 
2006, ADEQ adopted and submitted the updated performance standard 
evaluation and new contingency measures in a supplemental SIP revision, 
entitled, ``Supplement to Final Arizona State Implementation Plan 
Revision, Basic and Enhanced Vehicle Emissions Inspection/Maintenance 
Programs, December 2005'' (September 2006) (``VEI SIP Supplement''). As 
part of the submittal of the VEI SIP Supplement, ADEQ documented the 
public participation process that was conducted by ADEQ prior to 
adoption and submittal to EPA.

III. EPA Review of the SIP Revisions

A. CAA Procedural Provisions

    CAA section 110(l) requires revisions to a SIP to be adopted by the 
state after reasonable notice and public hearing. EPA has promulgated 
specific requirements for SIP revisions in 40 CFR part 51, subpart F.
    On October 20 and 21, 2005, ADEQ published notices in newspapers of 
general circulation in the Phoenix and Tucson areas of public hearings 
on proposed revisions to the Arizona SIP to exempt collectible vehicles 
in Phoenix and collectible vehicles and motorcycles in Tucson from 
emissions testing requirements under the Arizona VEI programs (i.e., a 
draft VEI SIP Revision). Public hearings were held on November 28, 2005 
in Phoenix and November 30, 2005 in Tucson. On December 23, 2005, in 
accordance with Arizona law, ADEQ adopted these exemptions as set forth 
in ``Final Arizona State Implementation Plan Revision, Basic and 
Enhanced Vehicle Emissions Inspection/Maintenance Programs'' (December 
2005) as a revision to the Arizona SIP and submitted the revision to 
EPA for approval.
    ADEQ followed a similar process in adopting and submitting the VEI 
SIP Supplement. ADEQ held a public hearing in Tucson on August 30, 2006 
and in Phoenix on August 31, 2006 on a draft VEI SIP Supplement and 
adopted the VEI SIP Supplement on October 3, 2006 in accordance with 
Arizona law prior to submittal to EPA as a revision to the Arizona SIP.
    ADEQ's VEI SIP Revision and VEI SIP Supplement submittal packages 
include evidence of public notice and hearing, ADEQ responses to public 
comments, and ADEQ adoption as described above, and, based on review of 
these materials, we find that ADEQ has met the procedural requirements 
of CAA section 110(l) and 40 CFR part 51, subpart F.

B. I/M Program Requirements

    As noted in Section I, Introduction and Background, herein, 
Arizona's VEI programs were most recently approved as meeting federal 
I/M program requirements on January 22, 2003 (68 FR 2912). Although the 
Phoenix and Tucson areas have been redesignated to ``attainment'' for 
the CO NAAQS, the VEI programs continue to be relied upon to maintain 
the CO standard in those areas. Moreover, ``enhanced'' I/M remains an 
``applicable requirement'' for the Phoenix area under our final rule 
implementing the 8-hour ozone NAAQS (see 40 CFR 51.900(f) and 
51.905(a)(1)) based on the designation of that area as a nonattainment 
area for the 8-hour ozone NAAQS (and designation as nonattainment for 
the 1-hour ozone NAAQS at the time of designation for the 8-hour 
standard). Thus, to be approved, the VEI programs, as amended and 
evaluated herein, must continue to meet the relevant enforceability 
requirements for I/M programs in subpart S of 40 CFR part 51 and, for 
the Phoenix area with respect to ozone, the enhanced performance 
standard in 40 CFR 51.351. In the following paragraphs, we review 
ADEQ's VEI SIP Revision and VEI SIP Supplement to determine whether the 
amended VEI programs continue to meet federal I/M program requirements. 
The aspects of I/M affected by the submitted revisions to the VEI 
programs include vehicle coverage and exemptions, compliance 
enforcement, and the performance standard evaluation.
1. Vehicle Coverage and Exemptions
    The performance standard for enhanced I/M programs (including 
alternate low enhanced programs) assumes coverage of all 1968 and later 
model year light duty vehicles and trucks. Light duty trucks are not 
included in the performance standard for basic I/M programs. Other 
levels of coverage may be approved if the

[[Page 78118]]

necessary emission reductions are achieved. See 40 CFR 51.356.
    The Arizona VEI programs approved by EPA in 1995 exempt several 
categories of vehicles from the emissions testing requirements. Such 
vehicle categories included, among others, vehicles manufactured in or 
before the 1966 model year and vehicles being sold between motor 
vehicle dealers. See 60 FR 22518, 22521 (May 8, 1995). In 2003, we 
approved revisions to the VEI programs including an exemption for the 
first five model year vehicles on a rolling basis. See 68 FR 2912 
(January 22, 2003). The SIP revision we are acting on today would 
establish additional vehicle categories that would be exempt from 
emissions testing requirements: collectible vehicles in the Phoenix and 
Tucson areas and motorcycles in the Tucson area. Based on data for 
calendar year 2003, collectible vehicles make up 0.5 percent of the 
fleet of vehicles subject to VEI in the Phoenix area, and collectible 
vehicles and motorcycles together make up 2.1 percent of the subject 
fleet in the Tucson area. See Table 1 below.

       Table 1.--Percentage of Fleet Affected by SIP Revision \1\
------------------------------------------------------------------------
                                                 Number of    Percent of
                                                  vehicles     vehicle
                                                   tested       fleet
------------------------------------------------------------------------
Phoenix:
    Total Tested Fleet........................      825,812        100.0
    Estimated Number of Collectible Vehicles..        3,800          0.5
Tucson:
    Total Tested Fleet........................      373,734        100.0
    Estimated Number of Collectible Vehicles..        1,400          0.4
    Number of Motorcycles.....................        6,240         1.7
------------------------------------------------------------------------
\1\ From Table 1 on page 4 of the VEI SIP Revision.

    Basic and enhanced I/M programs are not required to test 
motorcycles. However, the emissions testing of motorcycles was shown to 
have a significant air quality benefit in the Phoenix area, so the 
State has not adopted an exemption for motorcycles in that area. The 
effect of the new exemptions on the continued ability of the VEI 
program in the Phoenix area to meet the enhanced I/M program 
performance standard is discussed below in Section III.B.3, 
``Performance Evaluation,'' and the effect of the new exemptions on 
emissions and ambient air quality in both Phoenix and Tucson is 
discussed herein in Section III.C, ``Demonstrating Noninterference With 
Attainment And Maintenance Under CAA Section 110(l).''
2. Compliance Enforcement
    Section 51.361 of title 40 of the CFR requires that denial of motor 
vehicle registration be the method used to ensure compliance with 
enhanced I/M programs. ARS Section 49-542(D) and Arizona Administrative 
Code (AAC) R18-2-1007 require that all vehicles must complete a vehicle 
emissions inspection to obtain a vehicle registration.
    Collectible vehicles exempt from emissions testing under the 
submitted SIP revision are required to have collectible vehicle 
insurance. This type of vehicle is ``maintained primarily for use in 
car club activities, exhibitions, parades or other functions of public 
interest or for a private collection and is used only infrequently for 
other purposes'' and ``has a collectible vehicle or classic automobile 
insurance coverage that restricts the collectible vehicle mileage or 
use, or both, and requires the owner to have another vehicle for 
personal use.'' \3\
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    \3\ See HB 2357, in Appendix A of the VEI SIP submittal.
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    The Arizona Department of Transportation, Motor Vehicle Division 
(MVD), will be able to track collectible vehicles in cooperation with 
collectible vehicle insurers. Insurers who submit evidence of 
collectible vehicle insurance to MVD will have those vehicles 
automatically tagged in MVD's database to be exempt from testing at 
renewal of registration. Should those vehicles' collectible insurance 
be cancelled or not be renewed, MVD will be notified by the insurer and 
will send the vehicle owner a letter that the collectible vehicle's 
registration will be cancelled. The owner of the vehicle has 14 days 
after receipt of the letter from MVD to submit a new policy. If this is 
not done, the vehicle's registration is cancelled, as is the exemption 
from emissions testing.
    In contrast to collectible vehicles, exemption of motorcycles in 
the Tucson area from emissions testing would be straightforward from 
the standpoint of compliance enforcement and would not undermine 
compliance enforcement for other types of vehicles that continue to be 
subject to the emissions testing requirements under the VEI program in 
the Tucson area. Owners of motorcycles registered in the Tucson area 
will simply receive a registration or re-registration form from MVD 
that indicates ``emissions test not required.''
    Therefore, we propose to find that the Arizona VEI programs, as 
amended to exempt collectible vehicles in the Phoenix and Tucson areas 
and motorcycles in the Tucson area, continue to meet the compliance 
enforcement requirements of 40 CFR 51.361.
3. Performance Evaluation
    In our review of ADEQ's VEI SIP Revision submittal, we concluded 
that the revision could not be approved without a performance 
evaluation demonstrating that the VEI program, as amended to exempt 
collectible vehicles, would continue to meet the federal enhanced I/M 
performance standard (codified at 40 CFR 51.351) in the Phoenix area. 
The need for an updated performance evaluation follows from the fact 
that the Phoenix area, which was designated as nonattainment for the 1-
hour ozone NAAQS (at the time of designation for the 8-hour ozone 
nonattainment), is designated as nonattainment for the 8-hour ozone 
NAAQS and that enhanced I/M remains an ``applicable requirement'' for 
such areas under our final rule implementing the 8-hour ozone NAAQS 
(see 40 CFR 51.900(f) and 51.905(a)(1)).
    In response, ADEQ prepared an updated performance evaluation using 
the most recent version of EPA's motor vehicle emissions model, 
MOBILE6.2. This updated evaluation was included in the VEI SIP 
Supplement submitted to EPA on October 3, 2006. The VEI SIP Supplement 
includes a summary report and paper copies of MOBILE6.2 input and 
output files.

[[Page 78119]]

    For the updated evaluation, ADEQ developed and applied reduction 
factors to exclude collectible vehicles from the fleet tested under the 
VEI program as provided for in HB 2357. ADEQ then compared the 
emissions reduction benefits from the revised VEI program with the 
corresponding benefits that would be achieved under EPA's alternate low 
enhanced I/M performance standard.
    The results of ADEQ's analysis are summarized in Table 2 below, 
which shows that the emissions reduction benefits achieved by the 
Arizona VEI program as amended are higher than those achieved under the 
performance standard. The amended Arizona VEI program continues to 
achieve greater emissions reductions than the federal model program 
because the VEI program includes elements that go beyond federal I/M 
requirements. These include a requirement for a one-time only waiver, 
an implementation area beyond the nonattainment area boundaries, and 
denial of waivers for grossly-emitting vehicles.

 Table 2.--Results of ADEQ's Alternate Low Enhanced Performance Standard
                              Modeling \1\
------------------------------------------------------------------------
                                        2008
                                 VOC    NOX     CO    VOC    NOX     CO
------------------------------------------------------------------------
I/M Benefits in Area A (grams/   0.21   0.10   3.66   0.07   0.09   1.40
 mile)........................
I/M Performance Standard         0.16   0.02   2.91   0.04   0.01  1.02
 benefits (grams/mile)........
------------------------------------------------------------------------
\1\ The emission rates in this table represent the difference between
  the fleet-wide emission rate under the applicable program (i.e.,
  amended Arizona VEI program or EPA's I/M model program) and the
  corresponding emission rate under the no-I/M scenario. See Tables 1,
  2, and 3 of appendix B to the VEI SIP Supplement.

    Based on our review of the VEI SIP Supplement, we find ADEQ's 
methods used to update the performance standard evaluation and use of 
the alternate low enhanced I/M performance standard to be acceptable, 
and we find that the VEI program, as amended to exempt collectible 
vehicles in the Phoenix area from the emissions testing requirements, 
exceeds the alternate low enhanced I/M performance standard in the 
Phoenix area as required under 40 CFR 51.351 and 51.905(a)(1). 
Therefore, we propose to approve the updated performance standard 
evaluation for the Phoenix VEI program, as submitted on October 3, 2006 
in the VEI SIP Supplement, as a revision to the Phoenix portion of the 
Arizona Ozone SIP.

C. Demonstrating Noninterference With Attainment and Maintenance Under 
CAA Section 110(l)

    Revisions to SIP-approved control measures must meet the 
requirements of Clean Air Act section 110(l) to be approved by EPA. 
Section 110(l) states: ``* * *. The Administrator shall not approve a 
revision of a plan if the revision would interfere with any applicable 
requirement concerning attainment and reasonable further progress (as 
defined in section 171), or any other applicable requirement of this 
Act.''
    We interpret section 110(l) to apply to all requirements of the CAA 
and to all areas of the country, whether attainment, nonattainment, 
unclassifiable, or maintenance for one or more of the six criteria 
pollutants. We also interpret section 110(l) to require a demonstration 
addressing all pollutants whose emissions and/or ambient concentrations 
may change as a result of the SIP revision. Thus, for example, 
modification of a SIP-approved measure may impact NOX 
emissions, which may impact PM2.5. The scope and rigor of an 
adequate section 110(l) demonstration of noninterference depends on the 
air quality status of the area, the potential impact of the revision on 
air quality, the pollutant(s) affected, and the nature of the 
applicable CAA requirements.
    As described above, the changes to the Arizona VEI programs that 
would occur with EPA approval of the two SIP revision submittals 
evaluated herein (i.e., the new exemptions from emissions testing for 
collectible vehicles in Phoenix and collectible vehicles and 
motorcycles in Tucson) affect both the Phoenix and Tucson areas. 
Therefore, EPA needs to review the effect of the exemptions in both of 
these areas before we can determine whether we can approve the two SIP 
revisions under CAA section 110(l).
    The VEI SIP Revision submittal that seeks exemption of collectible 
vehicles from the Phoenix enhanced I/M program and collectible vehicles 
and motorcycles from the Tucson basic I/M program includes an 
evaluation of the effects of the revisions to the VEI programs on 
ozone, carbon monoxide, PM2.5, and air toxics in both 
geographic areas. The details of ADEQ's evaluation of the emissions 
effects and related ambient air quality impacts of the new exemptions 
are contained in ``Report on Potential Exemptions from Vehicle 
Emissions Testing for Motorcycles, Collectible Vehicles and Vehicles 25 
Model Years Old and Older (December 2004)'' (``2004 Report''), which 
was included as Appendix B to the VEI SIP Revision.
    The 2004 report indicates that ADEQ used the latest version of 
EPA's motor vehicle emissions model program, MOBILE6.2, to estimate the 
emissions effects of the new exemptions. The methods used to gather 
data included surveys of collectible vehicle insurers and collectible 
vehicle and motorcycle owners, in addition to acquisition of data from 
the State vehicle emissions inspections programs, other state agencies, 
air quality planning agencies and relevant air quality plans. We find 
that ADEQ used reasonable methods and appropriate models in estimating 
the emissions effects of the new exemptions. Table 3 below summarizes 
ADEQ's estimates by geographic area, vehicle category, and pollutant in 
units of metric tons per day (mtpd). Table 3 also shows the emissions 
impact as a percentage of the overall pollutant-specific inventory in 
the applicable area.

[[Page 78120]]



    Table 3.--VOC and CO Emissions Inventory Impacted by the VEI SIP
                                Revision
------------------------------------------------------------------------
                                    Area-wide   I/M benefit   Percent of
                                      total      from test     areawide
         Vehicle category           emissions    and repair     total
                                    inventory   of vehicles   emissions
                                      (mtpd)    \1\  (mtpd)   inventory
------------------------------------------------------------------------
Phoenix:
    Collectible Vehicles:
        VOC......................        328.9         0.03        0.009
        CO.......................        912.3         0.32        0.035
Tucson:
    Collectible Vehicles:
        VOC......................         84.8         0.01        0.012
        CO.......................        598.5         0.14        0.023
    Motorcycles:
        VOC......................         84.8         0.03        0.035
        CO.......................        598.5         0.09       0.015
------------------------------------------------------------------------
\1\ I/M Benefit = the reduction in emissions due to the repair of
  vehicles that exceed the prescribed emissions standards in Arizona
  Administrative Code (A.A.C.) R18-2-1031.

1. Ozone
    Ozone is formed by the interaction of directly-emitted precursor 
emissions, volatile organic compounds (VOC) and oxides of nitrogen 
(NOX), in the presence of sunlight under the influence of 
meteorological and topographical features of an area.
    Phoenix. By rule effective June 15, 2004, EPA designated the 
Phoenix area as a ``basic'' nonattainment area for the new 8-hour ozone 
NAAQS based on 2001-2003 air quality monitoring data. See 69 FR 23858 
(April 30, 2004). As indicated in Table 3 above, the revision to the 
VEI program in Phoenix would increase VOC emissions by 0.03 metric tons 
per day, which represents approximately 0.009% of the overall VOC 
emissions inventory in this area under existing conditions. ADEQ did 
not estimate NOX emissions, but we agree with ADEQ's 
reasoning that any change, positive or negative, in NOX 
emissions would be minimal given the small number of vehicles involved, 
the fact that repairs to vehicles to reduce VOC and CO emissions often 
result in an incremental increase in NOX emissions, and the 
small fraction of collectible vehicles (approximately 8 percent) 
currently subject to NOX testing (only those that are model 
years 1981 and newer).
    These incremental emissions impacts of the VEI SIP Revision would 
occur in an area for which overall VOC and NOX emissions are 
expected to decline. Specifically, in the Phoenix area, overall VOC 
emissions are expected to decrease by 7% between 2006 and 2015 and 
overall NOX emissions are expected to decrease by 13% over 
the same period.\4\ Moreover, data collected by the ozone monitoring 
network in the Phoenix area appears to show that the area has attained 
the 8-hour ozone NAAQS for the years 2003-2005.\5\
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    \4\ See Maricopa Association of Governments (MAG), ``One-Hour 
Ozone Redesignation Request and Maintenance Plan for the Maricopa 
County Nonattainment Area,'' March 2004, pp. 3-11 and 3-12.
    \5\ See Table 4 in the VEI SIP Revision and see the Quick Look 
Reports (dated August 14, 2006 and August 31, 2006) included in the 
docket for this proposed rule.
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    Therefore, based on the minimal likely effect of the VEI SIP 
Revision on VOC and NOX emissions, the downward trend in 
overall ozone precursor emissions, and monitoring data that appears to 
show that the area has attained the 8-hour ozone NAAQS, we find that 
exempting collectible vehicles from emissions testing under the VEI 
program would not interfere with attainment of the 8-hour ozone NAAQS 
in the Phoenix area.
    Tucson. EPA included the Tucson area in ``rest of state,'' an area 
that we designated as ``unclassifiable/attainment'' for the new 8-hour 
ozone NAAQS. See 69 FR 23858 (April 30, 2004). As indicated in Table 3 
above, the revision to the VEI program in Tucson would increase VOC 
emissions by 0.04 metric tons per day, which represents approximately 
0.047% of the overall VOC emissions inventory in this area under 
existing conditions. For the reasons given above for the Phoenix area, 
we would expect any change, positive or negative, in NOX 
emissions due to the VEI SIP Revision to be minimal.
    These incremental changes in ozone precursor emissions would occur 
in an area where the highest three-year average of the annual fourth-
highest daily maximum level (i.e., the statistical basis for the NAAQS) 
collected among the nine stations comprising the ozone monitoring 
network in the Tucson area was approximately 10% below the 8-hour ozone 
NAAQS (based on 2003-2005 data).\6\ As such, we agree with ADEQ's 
conclusion that the slight change in ozone precursor emissions from the 
exemption of collectible vehicles and motorcycles from emissions 
testing requirements of the VEI program would not interfere with 
continued attainment of the 8-hour ozone NAAQS in the Tucson area.
---------------------------------------------------------------------------

    \6\ See Table 5 of the VEI SIP Revision and the Quick Look 
Reports (dated August 14, 2006 and August 31, 2006) included in the 
docket for this proposed rule.
---------------------------------------------------------------------------

2. Carbon Monoxide
    Carbon monoxide (CO) is a product of incomplete combustion of 
fuels. In most urban areas, most of the CO comes from motor vehicle 
exhaust.
    Phoenix. In 2005, EPA redesignated the Phoenix area for CO, and 
approved a maintenance plan that provides for maintenance of the CO 
NAAQS in that area through 2015. See 70 FR 11553 (March 9, 2005) and 70 
FR 52926 (September 6, 2005).
    As indicated in Table 3 above, the revision to the VEI program in 
Phoenix would increase CO emissions by 0.32 metric tons per day, which 
represents approximately 0.035% of the overall CO emissions inventory 
in this area under existing conditions. The incremental CO emissions 
increase of the SIP revision would occur in an area where overall CO 
emissions are expected to remain relatively constant over the next 10 
years and where ambient CO levels are well below the NAAQS. 
Specifically, in the Phoenix area, overall CO emissions are expected to 
decrease by only 1% between 2006 and 2015,\7\ and the

[[Page 78121]]

highest second-highest value (i.e., the basis for the NAAQS) collected 
among the 15 stations comprising the CO monitoring network in the 
Phoenix area is 5.1 parts per million (ppm), eight-hour average, or 
less than 60% of the 8-hour CO NAAQS (based on 2004-2005 data).\8\
---------------------------------------------------------------------------

    \7\ See Maricopa Association of Governments, ``Carbon Monoxide 
Redesignation Request and Maintenance Plan for the Maricopa County 
Nonattainment Area,'' May 2003, pp. 3-10.
    \8\ See Table 14 of the VEI SIP Revision and the Quick Look 
Reports (dated August 14, 2006 and August 31, 2006) included in the 
docket for this proposed rule.
---------------------------------------------------------------------------

    Therefore, based on the minimal estimated increase in CO emissions 
due to the VEI SIP Revision, the relatively constant level of overall 
CO emissions, and monitoring data that shows that ambient CO levels 
remain well below the CO NAAQS, we find that exempting collectible 
vehicles from emissions testing under the VEI program would not 
interfere with continued attainment of the CO NAAQS in the Phoenix 
area.
    Tucson. Tucson was designated as a ``not classified'' CO 
nonattainment area following the CAA Amendments of 1990. See 56 FR 
56694 (November 6, 1991). Arizona implemented its VEI program in the 
Tucson area as part of the control strategy to attain and maintain the 
CO NAAQS in the area. In 2000, EPA redesignated the Tucson area to 
attainment for CO and approved the area's maintenance plan, which 
provides for maintenance of the CO NAAQS through 2008. See 65 FR 36353 
(June 8, 2000), 65 FR 50651 (August 21, 2000), and 69 FR 12802 (March 
18, 2004).
    As indicated in Table 3 above, the revision to the VEI program in 
Tucson would increase CO emissions by 0.23 metric tons per day, which 
represents approximately 0.038% of the overall CO emissions inventory 
in this area under existing conditions. The incremental CO emissions 
increase of the SIP revision would occur in an area where ambient CO 
levels are well below the NAAQS. Specifically, in the Tucson area the 
highest second-highest value (i.e., the basis for the NAAQS) collected 
among the six stations comprising the CO monitoring network in the 
Tucson area is 2.5 ppm, eight-hour average, or less than 30% of the 8-
hour CO NAAQS (based on 2004-2005 data).\9\
---------------------------------------------------------------------------

    \9\ See Table 15 of the VEI SIP Revision and the Quick Look 
Reports (dated August 14, 2006 and August 31, 2006) included in the 
docket for this proposed rule.
---------------------------------------------------------------------------

    Therefore, based on the minimal estimated increase in CO emissions 
due to the VEI SIP Revision and monitoring data that shows that ambient 
CO levels remain well below the CO NAAQS, we find that exempting 
collectible vehicles and motorcycles from emissions testing under the 
VEI program would not interfere with continued attainment of the CO 
NAAQS in the Tucson area.
3. Particulate Matter
    EPA has promulgated different NAAQS for particles with a nominal 
aerodynamic diameter of 10 microns or less (PM10) and for 
particles with a nominal aerodynamic diameter of 2.5 micrometers 
(microns) or less (PM2.5). Ambient PM10 and 
PM2.5 levels consist of directly-emitted particles as well 
as secondary particles formed through atmospheric reactions involving 
such precursors as NOX and SOX.
    Phoenix. In 1990, the Phoenix area was designated as a ``moderate'' 
nonattainment for the PM10 NAAQS by operation of law under 
the CAA Amendments of 1990. EPA reclassified the area as ``serious'' in 
1996. See 61 FR 21372 (May 10, 1996). In 2002, EPA approved the 
``serious area'' PM10 plan, which was intended to provide 
for attainment of the PM10 NAAQS in the Phoenix area by 
2006. See 67 FR 48718 (July 25, 2002); certain plan elements re-
approved at 71 FR 43979 (August 3, 2006).
    The Phoenix area PM10 attainment plan relies largely on 
control of fugitive dust sources such as paved and unpaved roads, 
vacant disturbed lots, and unpaved parking lots. On-road vehicle 
exhaust accounts for approximately 2.1% of the annual average area-wide 
(directly-emitted) PM10 inventory.\10\ The area continues to 
violate both the annual and 24-hour PM10 NAAQS and thus 
appears to have failed to meet the PM10 NAAQS by the 2006 
attainment date.\11\
---------------------------------------------------------------------------

    \10\ See Maricopa Association of Governments, ``Revised MAG 1999 
Serious Area Particulate Plan for PM-10 for the Maricopa County 
Nonattainment Area,'' February 2000, pp. 8-15.
    \11\ We will make this determination when quality-assured data 
for 2006 are available.
---------------------------------------------------------------------------

    PM10 emissions are emitted as a product of incomplete 
combustion along with such other pollutants as CO and VOC, and because 
the exemption of collectible vehicles from emissions testing 
requirements of the VEI program in the Phoenix area would incrementally 
increase emissions of the latter pollutants, it would also likely 
result in the incremental increase of the former as well. ADEQ did not 
quantify the PM10 emissions impact of this new exemption. 
However, we can safely conclude that any such impact would be 
negligible, even though the area will likely miss its attainment 
deadline, given the small number of vehicles involved (see Table 1 
herein), the magnitude of the emission impact of other products of 
incomplete combustion (see Table 3 herein and related discussion of 
ozone and CO above), and the small contribution of the applicable 
source category (on-road motor vehicle exhaust) to overall 
PM10 emissions in the Phoenix area. Thus, the VEI SIP 
Revision would not interfere with attainment of the PM10 
NAAQS in the Phoenix area.
    Based on the same rationale, we can also conclude that the 
exemption of collectible vehicles from the emissions testing 
requirements of the VEI program in the Phoenix area would not interfere 
with attainment of the NAAQS for PM2.5, a pollutant for 
which the Phoenix area is designated as ``unclassifiable/attainment.'' 
See 70 FR 944 (January 5, 2005). Ambient PM2.5 
concentrations in the Phoenix area are well below the applicable NAAQS.
    Tucson. EPA has included the Tucson area in the ``unclassifiable'' 
area designation for the PM10 NAAQS and in the county-
specific ``unclassifiable/attainment'' designation (i.e., Pima County) 
for the PM2.5 NAAQS. See 57 FR 56762 (November 30, 1992), 70 
FR 944 (January 5, 2005), and 40 CFR 81.303. Ambient PM10 
and PM2.5 concentrations in the Tucson area are well below 
the applicable NAAQS. For the reasons given above for Phoenix, the 
PM10 and PM2.5 emissions impact of exemption of 
collectible vehicles and motorcycles from emissions testing 
requirements would be negligible and would not interfere with continued 
attainment of the PM10 and PM2.5 NAAQS in the 
Tucson area.
4. Air Toxics
    Phoenix and Tucson. Since the CAA does not have ambient air quality 
standards for air toxics, the EPA's interpretation of section 110(l) is 
that an area's compliance with any applicable MACT standards, as well 
as any Federal Motor Vehicle Control Programs (FMVCP) under sections 
112 or 202(l) of the CAA constitutes an acceptable demonstration of 
noninterference for air toxics. Motor vehicles are not subject to MACT 
standards, and the VEI SIP Revision will not interfere with any Federal 
Motor Vehicle Control Programs that apply in the area. For these 
reasons, the State thus concludes, and EPA concurs, that the VEI SIP 
Revision would not interfere with any applicable CAA requirements 
relative to air toxics.
5. Conclusion
    Based on the above discussion, EPA concludes that the changes to 
the Arizona VEI programs that would occur with EPA approval of the VEI 
SIP Revision and VEI SIP Supplement (i.e., the exemptions from 
emissions testing for collectible vehicles in the Phoenix

[[Page 78122]]

area and collectible vehicles and motorcycles in the Tucson area) would 
not interfere with attainment or maintenance of any of the NAAQS in the 
Phoenix or Tucson areas and would not interfere with any other 
applicable requirement of the Act, and thus, are approvable under CAA 
section 110(l). Therefore, we propose to approve statutory exemptions 
from emissions testing for collectible vehicles in Phoenix and 
collectible vehicles and motorcycles in Tucson, as submitted on 
December 23, 2005 in the VEI SIP Revision, as a revision to the Phoenix 
and Tucson portions of the Arizona CO and Ozone SIPs.

D. Contingency Provisions of CAA Section 175A(d)

    In 2000, EPA redesignated the Tucson area from nonattainment to 
attainment for the CO NAAQS and approved a maintenance plan. See 65 FR 
36353 (June 8, 2000), 65 FR 50651 (August 21, 2000), and 69 FR 12802 
(March 18, 2004). In 2005, EPA did the same for the Phoenix area. See 
70 FR 11553 (March 9, 2005) and 70 FR 52926 (September 6, 2005). The CO 
maintenance plans for the two areas include contingency elements or 
plans that we approved as meeting the requirements of CAA section 
175A(d).
    For the Phoenix area, the contingency plan establishes an action 
(or trigger) level protective of the NAAQS and identifies several 
measures, including expansion of ``Area A'' (the area in which certain 
control measures apply), for early implementation as well as 
consideration of additional measures on a set schedule following the 
triggering event. For the Tucson area, the contingency plan establishes 
trigger or action levels as well as schedules for review and collection 
of data and consideration of adoption of control measures from a 
preselected list of such measures. At the time of redesignation of the 
Phoenix and Tucson areas to attainment for the CO NAAQS, the VEI 
programs were adopted and approved into the Arizona SIP and were 
assumed to continue in effect throughout the maintenance periods. 
Moreover, the VEI programs at the time of redesignation of these areas 
did not exempt collectible vehicles or motorcycles in either area from 
the emissions testing requirements.
    Generally, contingency plans should clearly identify the measures 
to be adopted, a schedule and procedure for adoption and 
implementation, and a specific time limit for action by the State and 
should also identify specific indicators, or triggers, which will be 
used to determine when the contingency measures need to be implemented. 
See EPA Memorandum from John Calcagni, Office of Air Quality Planning 
and Standards, entitled ``Procedures for Processing Requests to 
Redesignate Areas to Attainment,'' dated September 4, 1992. At a 
minimum, CAA section 175A(d) requires that the State adopt as 
contingency measures all control measures that had been approved in the 
SIP for the area prior to redesignation but that the State subsequently 
repeals or relaxes. In this instance, because the EPA-approved VEI 
emissions testing requirements applied to collectible vehicles and 
motorcycles at the time of redesignation for the Phoenix and Tucson 
areas, reinstatement of emissions testing for these newly-exempt 
vehicle categories must be adopted as contingency measures for the 
Phoenix and Tucson CO maintenance areas to comply with CAA section 
175A(d).
    ADEQ's VEI SIP Supplement includes two new contingency measures 
that establish a binding commitment on ADEQ to request Legislative 
action to reinstate emissions testing for collectible vehicles in the 
Phoenix area or collectible vehicles and motorcycles in the Tucson area 
should the applicable area experience a violation of the CO NAAQS. See 
pages 1 and 2 of the VEI SIP Supplement. Specifically, ADEQ's 
contingency measures involve notification to the Legislature by the 
October following a violation of the CO NAAQS in the Phoenix or Tucson 
areas. After notifying the Legislature, ADEQ will request that the 
Arizona Legislature enact new legislation to reinstate the categories 
of vehicles exempted through EPA approval of the VEI SIP Revision and 
VEI SIP Supplement (i.e., collectible vehicles in Phoenix or 
collectible vehicles and motorcycles in Tucson) during the General 
Legislative Session that begins in January. ADEQ's request to the 
Legislature will call for testing to be renewed for the newly exempt 
vehicle categories in the applicable area beginning the January 
following the General Legislative Session.
    We view ADEQ's contingency measures in the context of the existing 
EPA-approved CO contingency plans for the Phoenix and Tucson areas, and 
as such, we find that the plans, as amended to include these new 
contingency measures, continue to meet the requirements of CAA section 
175A(d), and that the new measures themselves are consistent with 
relevant EPA guidance. Therefore, we propose to approve the contingency 
measures, as adopted and submitted by ADEQ on October 3, 2006 in the 
VEI SIP Supplement, as a revision to the Phoenix and Tucson area 
portions of the Arizona CO SIP.

IV. EPA's Proposed Action and Request for Public Comment

    Under section 110(k) of the CAA, EPA is proposing to approve the 
revisions to the Arizona SIP submitted by the State of Arizona on 
December 23, 2005 and October 3, 2006 concerning the Arizona VEI 
programs implemented in the Phoenix and Tucson areas because we find 
that the revisions are consistent with the requirements of the CAA and 
EPA's regulations.
    Specifically, we are proposing to approve exemptions from emissions 
testing requirements for collectible vehicles in the Phoenix area and 
collectible vehicles and motorcycles in the Tucson area as set forth in 
the ``Arizona State Implementation Plan Revision, Basic and Enhanced 
Vehicle Emissions Inspection/Maintenance Programs'' (December 2005) and 
ARS Section 49-542 as amended in section 1 of Arizona House Bill 2357, 
47th Legislature, 1st Regular Session (2005) and approved by the 
Governor on April 13, 2005; and the updated performance standard 
evaluation for the Phoenix area and new contingency measures as set 
forth in the ``Supplement to Final Arizona State Implementation Plan 
Revision, Basic and Enhanced Vehicle Emissions Inspection/Maintenance 
Programs, December 2005'' (September 2006).
    We will accept comments from the public on this proposal for the 
next 30 days.

V. Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. For this reason, this action is also not subject to Executive 
Order 13211, ``Actions Concerning Regulations That Significantly Affect 
Energy Supply, Distribution, or Use'' (66 FR 28355 (May 22, 2001)). 
This action merely proposes to approve changes to state law as meeting 
Federal requirements and imposes no additional requirements beyond 
those imposed by state law. Accordingly, the Administrator certifies 
that this proposed rule will not have a significant economic impact on 
a substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). Because this rule proposes to approve 
changes to state law and does not impose any additional enforceable 
duty beyond that required

[[Page 78123]]

by state law, it does not contain any unfunded mandate or significantly 
or uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4).
    This proposed rule also does not have a substantial direct effect 
on one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes, as 
specified by Executive Order 13175 (59 FR 22951, November 9, 2000), nor 
will it have substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, as specified in Executive Order 13132 (64 FR 43255, August 
10, 1999), because it merely proposes to approve changes to state law 
implementing a Federal requirement, and does not alter the relationship 
or the distribution of power and responsibilities established in the 
Clean Air Act. This proposed rule also is not subject to Executive 
Order 13045 (62 FR 19885, April 23, 1997), because it is not 
economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3 
of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing 
this proposed rule, EPA has taken the necessary steps to eliminate 
drafting errors and ambiguity, minimize potential litigation, and 
provide a clear legal standard for affected conduct. EPA has complied 
with Executive Order 12630 (53 FR 8859, March 15, 1988) by examining 
the takings implications of the rule in accordance with the ``Attorney 
General's Supplemental Guidelines for the Evaluation of Risk and 
Avoidance of Unanticipated Takings'' issued under the executive order. 
This proposed rule does not impose an information collection burden 
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Intergovernmental relations, Nitrogen oxides, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: December 12, 2006.
Jane Diamond,
Acting Regional Administrator, Region 9.
 [FR Doc. E6-22305 Filed 12-27-06; 8:45 am]

BILLING CODE 6560-50-P
