Inside EPA and Mobile Source Report present...
       Improving The
       Clean Air Act:
    The Mobile Source
            Issues
           June 20-21, 1995
        Stouffer Renaissance Hotel
          Arlington, Virginia

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Conference Schedule

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Tuesday, June 20,1995
9:00 a.m. Keynote Presentation -- The Mobile Source Issues
   Morgo T. Oge. Director, Office of Mobile Sources, Office of Air & Radiation, U.S. Environmental
      Protection Agency.
9:30 a.m. Reshaping the Glean Air Act --1
   Charles L. Ingebretson. General Counsel, Committee on Commerce, U.S. House of Representatives;
   Mardi K. John. Founder and Director, Center for Alternative Energy & Propulsion Systems,
      George Mason University.
10:30 a.m. Refreshment Break
10:45 a.m. Reshaping the Clean Air Act - II
   William D. Fay. President and Chief Executive Officer, Highway Users Federation;
   Paul G. Billings. Director, State Government Relations, American Lung Association.
11:45 a.m. The New Engelhard Catalyst Technology
   William G. Rosenberg. Founder and President, E3 Ventures, and former Assistant Administrator for Air &
      Radiation, U.S. EPA.
12:15 p.m. Luncheon. States' Rights
   Hon. Becky Norton Dunlop. Secretary of Natural Resources, Commonwealth of Virginia.
1:45  p.m. Inspection/Maintenance
   DavidSosnowski. Environmental Protection Specialist, National Vehicle & Fuel Emissions
      Laboratory, Office of Mobile Sources, U.S. Environmental Protection Agency;
   MichaelJ. O'Toole. Environmental Protection Specialist, Colorado Department of Public Health
      and Environment;
   Gary A. Bishop. Research Engineer, University of Denver;
   Leo M. Carroll. Vice President, Marketing, Systems Control, Inc.
3:45 p.m. Refreshment Break
4:00 p.m. Creating Sound Emission Standards
   James Markev. Environmental Protection Specialist, National Vehicle & Fuel Emissions
      Laboratory, Office of Mobile Sources, U.S. Environmental Protection Agency;-
   Glenn F. Keller. Executive Director, Engine Manufacturers Association.
5:00 p.m. Cocktail Reception

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 Wednesday, June 21,1995
9:00 a.m. Keynote Presentation ซ Employee Commute Options
   Hon. Donald Manzullo. Republican of Illinois, U.S. House of Representatives.
9:30 a.m. Employer Trip Reduction -• Benefit or Burden?
   Constance H. Ruth. Environmental Protection Specialist, National Vehicle & Fuel Emissions
   Laboratory, Office of Mobile Sources, U.S. Environmental Protection Agency;
   C. Kenneth  Orski. Founder and President, Urban Mobility Corp.
10:30 a.m. Refreshment Break
10:45 a.m. Low-Emission Vehicles -- OTC-LEV and the 49-State Car
   Robert D. Brenner. Director, Office of Air Policy, Office of Air & Radiation, U.S. Environmental
      Protection Agency;
   Bruce S. Carhart. Executive Director, Ozone Transport Commission;
   RichardL. Klimisch, Vice President, Engineering Affairs Division, American Automobile
      Manufacturers Association;
   David W. Raney. Manager of Environmental and Safety Affairs, American Honda Motor Co., Inc.
12:45 p.m. Luncheon. Resolving the ZEV Mandate Tangle
   Hon. Trudy Coxe. Secretary of Environmental Affairs, Commonwealth of Massachusetts.
2:15 p.m. Nonroad Engines and Vehicles
   Deborah S. Dalton. Deputy Director, Consensus & Dispute Resolution Program, Office of Policy,
      Planning & Evaluation, U.S. Environmental Protection Agency;
   GaryH. Baise. Partner, Gabeler, Raise & Miller, and Washington Environmental Counsel, Equipment
      Manufacturers Institute;
   William M. Guerry. Jr.. Partner, Collier, Shannon, Rill & Scott, and Counsel to the Outdoor Power
      Equipment Institute;
   Gary E. Cross. Partner, Dunaway & Cross, and Counsel to the Portable Power Equipment
      Manufacturers Association.
4:00 p.m. Conference Adjourns

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Conference Participants

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Keynote Presentation - The Mobile Source Issues
   Margo T. Oge. Director, Office of Mobile Sources, Office of Air & Radiation, U.S. Environmental
      Protection Agency.

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MARGO T. OGE
    Margo T. Oge is Director of the Office of Mobile Sources  at U.S. EPA  and is the national manager of the
agency's programs dealing with transportation, motor vehicles and engines, and motor fuels. Prior to this
position, she was Director of the Office of Radiation & Indoor  Air from  1991  to 1994. Ms. Oge has been
with EPA since  1980, specializing in policy and regulatory development.  She was Director of the Radon
Division, Office of Radiation Programs, from 1988 to  1991. Before that,  she was Deputy Division Director of
the Economics & Technology Division under the Office of Toxic Substances.  From 1985 to 1986, Ms. Oge
was Legislative Aide to Senator John Chafee  of Rhode Island. Her first position with EPA (1980-1982) was
as a chemical engineer in the Regulatory Impacts Branch under the Office of Toxic Substances. She earned
her MSc from Lowell University.

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Reshaping the Clean Air Act --1
   Charles L Ingebretson. General Counsel, Committee on Commerce, U.S. House of Representatives;
   Mardi K. John. Founder and Director, Center for Alternative Energy & Propulsion Systems,
      George Mason University.

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CHARLES L. INGEBRETSON
    Charles L. Ingebretson currently serves as General  Counsel to the Committee on Commerce, U.S. House
of Representatives. From August 1990 to January 1995, he was Minority Counsel to the committee, advising
Republican members on environmental issues and focusing on those within the jurisdiction of the
Subcommittee on Health & The Environment.  Before joining the committee staff, he practiced environmental
law with Hunton & Williams in Richmond, VA. Prior to attending law school, Mr. Ingebretson  was
Legislative Director for former Congressman Dan Coats, a Republican from Indiana. Mr. Ingebretson received
his undergraduate degree from Duke University and his law degree from the University of Notre Dame.
MARDI K. JOHN
    Mardi K. John is Founder and Director of the Center for Alternative Energy & Propulsion Systems at
George Mason University. She is also a member of the university's physics faculty. The Center is intended to
educate students and the public and to be an impartial source of information and analysis.  Prior to founding
the Center four years ago, Ms. John worked for Bensto doing energy-conservation work for the private sector.
She earlier taught at Southeastern University, Northern Virginia Community College, and American
University - where she was awarded her PhD in physics.

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Perspective of various viewhoiders over changes and choices favoring or opposing CAAA.








Background




       The  current efforts to review and  revise various laws and mandates that  affect the




american public, and inspect their effectiveness and applicability  is indeed  a  praiseworthy




endeavor. It is indeed what  all citizens who are concerned with taxes,  health care,  crime,



education, government expenditures and so  forth want to see at this time. Citizens  of this



country like most people on earth want to live in peace, and have the opportunity  to reach their



goals and dreams.




       In response to the  demands of the public, various agencies, programs  and regulations



must be reviewed for usefulness and productivity. This is a good practice.  Like many other




regulations involving the practices of various United States government agencies that concern



themselves with food and  drug safety and quality, clean water, pollution reduction regulations




in industries and in trade, the act know as  the Clean  Air Act Amendment (CAAA) which



concerns itself with the quality of air is being revisited.



       As the director of a university center dedicated to energy and propulsion, I  am privileged



to hear and observe the reactions of various executives, administrators, directors, overseers,




activists, environmentalist  as well as ordinary citizens who have been affected by  the CAAA in



various capacities  and  settings. As an  impartial  educational  entity, the George  Mason



University's Center for Alternative Energy & Propulsion Systems (CAEPS) is an unbiased



platform for information  and opinion exchange. Given that our university  is located in the




northern Virginia suburb of Washington DC, the hesitance and resistance  of the state of Virginia



to accommodate the prescriptions of the Environmental Protection Agency (EPA)  as it has been

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trying to apply the CAAA has afforded an even greater opportunity and privilege of observing




the debate over the implications of enforcing the CAAA.




       The conclusion that has been reached is that there is a tremendous  'disconnect' between



the various perspectives and viewpoints over the act  itself,  the strengths of the act,  the




shortcomings of this act, and most importantly, the way lawmakers need to go about improving




this act. Finding a middle ground and a methodology that would suit the majority of the affected




and interested parties might prove to be quite illusive. Short of a despotic declaration by one set



of interested parties to impose their will on other sets  of interested parties, it would not be



possible to settle these very diverging viewpoints.



       From a purely academic and dispassionate point of observation, it seems clear that if the



opponents of CAAA in business and industry eliminate this act today, many main line business




and industry groups will come back tomorrow with another version of it. If one set of consumer



groups who are opposed to CAAA request its delay  or  elimination because of its effects on




increased costs to  transportation users, then other consumer groups will come forward in support



of this act based on life-cycle, externality and health-affect costs  to consumers. It will be a very



difficulty task to find consensus, unanimity, compromise and a middle ground above and beyond



what we currently have. This disconnect and discord among the various viewholders on this  law




will  make it  very  difficult to "improve" the CAAA  because  all  parties  define the term



"improvement" their own way and tilt its effects on the future according  to their own specific




interest.



       Embedded in all dialogue related to air pollution and more specifically the need for waste



reduction from mobile sources that pollute the air are the data and scientific studies that have




looked at atmospheric gaseous contents. While models for global climatic changes might be in

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dispute and subject of great contention, much of the information that has already been gathered




about the atmosphere and the effects of energy utilization modes in the past is not. It can be said



that what is in dispute is what society should do about atmospheric pollutants. The Clean  Air




Act Amendment was  congress' way of answering that. Now, the current surge of interest in




changing the Clean Air Act is this country's attempt to wrestle with this very question again.




The fascinating point  is that all the parties who have an interest in this issue, in the solutions




Congress selected, and in the methodology that was chosen to achieve changes in  waste



generation are in an adversarial and contentious modes.



       It is possible that the lawmakers who passed the bill into the law that is now referred to



as CAAA wanted exactly this sort of discourse, debate and adversarial dialogue. However, the



argumentative posturing that may characterize the debate over the  shortcomings of CAAA could




very well illuminate the point that it is just not  possible to  come up with a better or more




agreeable act of congress that would accomplish the long list of items that the society wants to




get done.



Introductory data



       The information gathered from Greenhouse Gas monitoring stations in this country, in



Antarctica, and around the globe since the 40's and 50's along with data from  ice core samples



have provided valuable, accurate,  thought provoking and intriguing profiles of the effects of



human activity on  the atmosphere.  Various representatives from the Bush Administration  and




congress in early 1990s were fond of saying that we cannot get  away from the waste that we




generate.



       Automobiles are an indispensable necessity for most american.  However, automobiles



are also the leading cause  of smog, and  an important contributors to total emissions in  this

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country.  Smog contents are typically, C02, NOx,  CO, 03, Reactive as well as Non-Reactive




organic gases, SO4 and NO3. The state of California as well as the federal government have used




the data on various pollutants and have enacted their mandates and laws on the basis of capping




these emissions.  The I & M programs (inspection & maintenance), higher standards of tailpipe



emissions and AFV (alternative fueled vehicles) use programs are three strategies to achieve the



goals of pollution reduction of 0.25 g/mi or hydrocarbons, 3.4g/mi of CO, 0.4 g/mi of NOx,




2 g/test of Volatile hydrocarbons, 0.20 g/mi of paniculate and 0.015 g/mi of formaldehyde for



all cars in the 49 states not including California, which has somewhat tougher standards that the




ones listed, by 19981 .



       The logic of the CAAA is that since these pollutant levels have exceeded every collective



amount that  the planet has seen since time  immemorial with recorded global  atmospheric




fluctuations being very small and beguiling, and given that we really do not have any sort of a



sound scientific knowledge of the behavioral model of the atmosphere with the myriad of ways




that paniculate and pollutants in the air can interact to reduce the quality of the air,  it is not



prudent to pollute the atmosphere any more than the current amount.



       CAAA is a broad  brushstroke ruling that is based on the  end results of this society's



collective activity. Its goals are to limit the  amount of atmospheric pollutants. It does not target



any specific industry, sector, technology or activity for pollution reduction. If it did, the blame



of waste  generation would unfairly affect one segment of the total  pollution picture. Therefore,




by setting pollution  caps all  segments  of the society be they public, private, commercial,



industrial, collective or individual would have to  be involved  over the course of 3 or more




decades to shift from current modalities of  energy use to whatever alternatives that will reduce




increases in air pollution levels.

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       So, even though various sectors of the society run on crossed purposes in their habits and




modes of energy use, all individuals, companies, organizations, corporations, counties, cities and




states can and do agree on the need to eliminate increases in atmospheric pollutants. This one



point of agreement is the glue that indeed held the CAAA  and allowed its ratification and




adoption.








Views and perspectives



       CAAA does not identify sources of pollution that have to be changed or eliminated. This



is good and bad. The good part is that no specific sector, industry,  activity  or technology is



made to be blamed for the problem and be eliminated. The bad part is that in the absence^of



direct specifics from the law, businesses, technologies and activities have to be identified and




then targeted for  change by combinations of public and private groups, and this identification



will require dialogue, discourse, agreement and even consensus among groups whose functions;




interests and goals intersect and collide with the mission of cleaning the air.



       Thus, CAAA has been designed to set a stage where various parties  with very diverging




perspectives must battle to continue generating revenues, funds and profits  the way it has done



in the past from a society that is trying to reduce its use of polluting fossil fuels and its related




technologies. The showdown between various interested parties is inevitable and necessary.,



       As private citizens, americans want to have clean air, clean water, clean land, plenty of




food, fuel and affordable shelter. However, the human activities of americans are not compatible




with the  aforementioned.  Thus, outside of  our roles as consumers and ordinary citizens,



american enterprises will suffer increased cost,  restrictions in commercial and industrial activities



targeting the reduction of pollutants, changes  in business practices and various other modes of

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change in meeting the goals of clean air. These changes will be resisted. The clash between the

needs of americans as individuals and  americans  as  the backbone of a system that  is very

entrenched in its fossil fuel based operational modes  is inevitable. The battle between  various

perspectives in the society is inevitable. The tug and pull of various interests in changing the

goals, the targets and the timetable of CAVA is inevitable. However, just like safe foods, safe

drugs,  elimination of (alcohol) prohibition, plentiful and cheap gasoline, TV, Vcr and even

recycling, the perceived medium of what americans want will indeed be reached.

Conclusions

       Here at CAEPS, most business, government, industry and even consumer sectors have

been observed to be resistant to the CAAA. However, none of them can agree on what needs

to be done. Most lawmakers agree with citizens that the shift from current fuels, infrastructure

and vehicles used in transportation will be a tremendous expense and burden. With this law only

the  "air"  will win and  everyone else  will have added  cost, added disruption  and added

responsibility.  However,  given that we all rely on and need clean air, the logic is that  we will

all benefit in the end from preserving this resource and setting a milestone of resistance against

other peoples  and nations  from further polluting the air. We can certainly  delay or even

eliminate this law. However, If a law is to replace CAAA, it will go through the same battles

and fights and, will produce no winners in business, industry or even with taxpayers.

                                    REFERENCES

1.     Aubrecht, G. J. Energy. 2nd ed. Englewood Cliffs, N.J. Prentice-Hall publishers, 1994.

2.     Botkin, D., and Keller, E. Environmental Science: Earth as a living Planet. New York.
       John wiley & Sons, 1994.

3.     Graedel, T.E., and Allenby, B.R. Industrial Ecology. Englewood Cliffs, N.J. Prentice
       Hall, 1995.

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Reshaping the Clean Air Act — II
   William D. Fay. President and Chief Executive Officer, Highway Users Federation;
   Paul G. Billings. Director, State Government Relations, American Lung Association.

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WILLIAM D. FAY
    William D. Fay  is President and Chief Executive Officer of the Highway Users Federation, the nation's
largest, most diverse coalition of individuals  and businesses dedicated to continued mobility and personal
freedom of choice in transportation. From 1990 to 1994, he served as Executive Director, chief lobbyist, and
spokesman of the Product Liability Coordinating Committee. Prior to this, he was Vice President for
Congressional Affairs for the National Coal Association. Between 1987 and  1990, Mr. Fay also served as
Administrator of the Clean Air Working Group. He has  16 years of experience in Washington, DC. He  is  a
graduate  of the University of Idaho, with degrees in accounting and political science.
PAUL G. BILLINGS
    Paul G. Billings is Director, State Government Relations, for the American  Lung Association  He works
with the Lung Associations in all 50 states on developing and implementing  their public-policy agendas,
primarily on the issues of air pollution and tobacco control. Before assuming his current position, he lobbied
for the Lung Association  in Maryland on the California low-emission vehicle legislation.  Mr. Billings
previously directed grassroots activities for the National Clean Air Coalition  and he was an associate with the
FMR Group in Washington, DC. A graduate of Bates College in Maine, he also attended Trinity College in
Dublin, Ireland.

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The New Engelhard Catalyst Technology
   William G. Rosenberg. Founder and President, E3 Ventures, and former Assistant Administrator for Air &
      Radiation, U.S. EPA.

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WILLIAM G. ROSENBERG
    William G. Rosenberg is Founder and President of E3 Ventures, Inc., which establishes innovative
relationships with companies to go beyond mere compliance with the Clean Air Act to take advantage of
market-based ways  to increase revenues,  fund new business opportunities, and demonstrate environmental
leadership. Appointed by President Bush  in 1989 as U.S. EPA  Assistant Administrator for Air& Radiation,
Mr. Rosenberg was the leading force in enacting and implementing the Clean Air Act Amendments  of 1990.
He pioneered a creative set of policies to develop and implement environmental strategies, emphasizing
market-based initiatives, regulatory negotiations, and reaching consensus with environmentalists, industry, and
state officials.  Initiatives included acid-rain  controls, reformulated gasoline, cleaner cars, phase-out of CFCs,
enhanced  compliance, and federal permitting. Previously, Mr. Rosenberg was Chairman of the Michigan
Public Service Commission, Assistant Administrator of the Federal Energy Administration, and Executive
Director of the Michigan State Housing Development  Authority.  He holds an MBA and JD from Columbia
University and a BA from Syracuse University.

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                                                          ENGtLHARD CORPORATION
  "JVC* JE?ฃfA4lf^P                                  101 WOOD AVENUE
                                                          ISfUN. NEW If RSf V MflM-0770
                                                          ซ8 205-5000
                         PromAIr Catalyst Systems
                                 Fact Sheet
Summary
      Engelhard Corporation has developed revolutionary clean air catalyst
systems, called PremAir, that have the potential to significantly reduce ground-level
ozone (the main constituent of smog) and carbon monoxide throughout the world.
In the United States, the new catalyst systems should help attain federal clean air
standards.
      Application development work has, so far, been focused on motor ve'hlcles.
However, PremAIr catalyst systems also could be used with stationary equipment,
such as air-conditioning units.  Initial studies of the PnmAlr catalyst systems on
motor vehicles were conducted in Los Angeles, California.  These studies indicate
that if the catalyst systems are employed on ell vehicles they can reduce more
ozone and carbon monoxide than other clean air programs  such as the electric car,
program certain California  reformulated fuels end employee commute options, The
new systems are expected to be cost-effective, require little vehicle redesign and
cause no inconvenience to drivers.
      Engelhard will work closely with the automotive industry and other
interested organizations to commercialize PremAir catalyst systems for motor
vehicles as a market-based alternative within current clean air laws.  The Company
also will pursue a range of other applications for the new technology.

Destroying pollutants already in the air
      PremAir catalyst systems destroy ozone and carbon monoxide that are'
already  in the air.  By contrast, automotive catalytic converters and stationary-
source pollution control systems destroy  pollutants before they are emitted  [mo
the atmosphere. For example, the modern three-way catalyst used on cars Jwhich
Engelhard invented) destroys over 90% of volatile organic compounds 
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radiator and condenser, the catalysts will convert ozone Into oxygen, and carbon
monoxide into carbon dioxide.
      The effectiveness of the catalysts In destroying ozone cep.be enhanced by
modifying the car's radiator fan to run even when the car is parked: Because
ozone reaches Its peek levels during the honest, sunniest part of the day,, by
running the radiator fan for some portion of this time ozone-laden air can-be drawn
over the catalysts and the ozone destroyed.
      The PremAir catalyst systems are based on proprietary Engelhard
technology. One of the main components of the system is platinum. This is\e
new application for the metal which is widely used in automotive emission-control
systems because of its superior catalytic activity. The amount of platinum used In
the systems is expected to match or exceed the amount used in automotive
catalytic converters.

Testing shows significant reductions
      Engelhard retained Sierra Research, an independent research organization
familiar with EPA testing procedures, to conduct field tests  in Los Angeles.
Systems Applications International (SAD, an independent company  specializing in
atmospheric modeling was retained to assess the potential benefits to air quality
using the  appropriate modeling procedures.
      Initial laboratory and on-road testing in Los Angeles indicates the catalyst
systems will convert up to 90 percent of the ozone and carbon monoxide they
contact. The potential volume of air that could be processed by motor vehicles is
large.  If the nine million vehicles, traveling 266 million miles per day in Los
Angeles were equipped with the PremAIr catalyst systems the air flowing through
their radiators is equivalent to all the air across the Los Angeles area up to a (height
of about 15 feet.  If the radiator fans are in operation during the period of highest
ozone concentrations the potential volume of air processed  would increase tenfold.
      According to the SAI models, the PremAIr catalyst systems,  if installed on all
vehicles and equipped with modified radiator fans, have the potential to reduc
peak levels of ozone by 4.5 parts per billion in Los Angeles.  PremAir catalyst
systems also have the potential to reduce carbon monoxide levels In ambientjair by
over 12%.

Potential reductions compare favorably with other dean air programs
      This potential total ozone reduction is  larger than that achieved with other
clean air programs, such as the electric car program, certain California reformulated
fuels and  the employee commute option.  The potential total carbon monoxide
reduction Is larger than from all of these alternatives combined.
      Engelhard also  compared the potential per vehicle reductions with the per
vehicle reductions anticipated from the other programs. The SAI analysis'showed
that if  a low emission vehicle (LEV) Is equipped with a PremAIr catalyst system and
a modified radiator fan, it would provide the same ozone reduction as an< electric
car. Three LEVs with PremAir catalyst systems could provide  the samefcarbon
monoxide reduction as one electric car.  Low emission vehicles are to be

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introduced in California next year.
      The tests also indicate that one LEV with a PremAIr catalyst system with the
same adjustment to the radiator fan would reduce ozone more than three ultra-low
emissions vehicles (ULEV), another emissions modification mandated-for
automobiles sold in the upcoming years In California. Two LEVs with PremAIr
catalysts systems could provide the same carbon monoxide benefit as one ULEV.
      SAI also determined that the PremAIr catalyst systems  could achieve more
reductions In air pollutants when compered to anticipated benefits of the employee
commute options.  The PremAIr catalyst systems would achieve those benefits
without imposing any of the driver Inconvenience anticipated  In the employee
commute options.

PremAIr catalyst systems can provide a cost-effective alternative
      Although the new systems heve not been commercialized and pricing has
not been determined,  preliminary cost estimates indicate that PremAIr catalyst
systems can be cost-effective in achieving clean air goals.
      Preliminary estimates are that PremAir catalysts systems may add $500 to
$1,000 to the price of a car. Therefore, the estimated cost per ton of emissions
reduced is $6,400 to $12,800.  This compares favorably to published cost per ton
estimates for other clean air programs. These cost per ton estimates are: $26,100
per ton for employee commute option programs; $12,700 to  $24,900 for the
Incremental  benefit of ULEVs over LEVs;  $10,700 to $166,200 for the Incremental
benefit of electric cars over ULEVs; and $13,500 for CARB-2 gasoline (a California-
mandated reformulated fuel) over federally mandated reformulated gasoline.

Next steps
      Engelhard continues to optimize the PremAIr catalyst systems, but expects
no obstacles in doing this based on .the Company's vast experience with catalytic
technology.  The Company also Is working with the automotive Industry to
conduct demonstration programs during 1995.
      Concurrently, Engelhard Is meeting with federal and state regulators to
determine how best to employ the new technology under current clean  air laws.

      The PremAIr catalyst systems build on Engelhard's leadership In three-way
catalytic converter technology for automotive emissions and the direct catalytic
conversion of stratospheric ozone Into oxygen for aircraft cabin air.  The three-way
automotive catalyst, which Engelhard Invented, reduces pollutants In automobile
emissions by more than 90 percent (CO - 96 percent; VOCs - 97 percent; NOx- 90
percent) over the approximately 100,000 mile life of a car.
      Engelhard Corporation Is a world-leading provider of specialty chemical
products, engineered materials and precious metals management services. The
Company supplies a variety of products and technologies for  air-pollution control,
Including automotive emissions control systems, systems to-cut CO, VOC and NOx
pollution from power-generating and Industrial facilities, and catalysts to.reduce
ozone In aircraft cabins.

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Luncheon. States' Rights
   Hon. Becky Norton Dunlop. Secretary of Natural Resources, Commonwealth of Virginia.

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BECKY NORTON DUNLOP
    Becky Norton Dunlop is Secretary of Natural Resources for the Commonwealth  of Virginia. She is the
principal environmental-policy official for Virginia and oversees eight state agencies, including the
Departments of Environmental Quality, Conservation & Recreation,  Game & Inland Fisheries, Historic
Resources, the Virginia Marine Resources Commission, and the Chesapeake Bay Local Assistance
Department.  Secretary Dunlop has been appointed to serve as Co-Chair on the Governor's Advisory Council
on Self-Determination & Federalism.  Prior to being named  as a member of his Cabinet by Gov. George
Allen, Mrs. Dunlop was Managing Director of the Enough is Enough! campaign, a national grassroots
movement to reduce  sexual violence and eliminate  child pornography and remove  hard-core and illegal
pornography from the marketplace.  During the  1980s, Mrs. Dunlop was a senior policy official  in the Reagan
Administration. In 1977, she founded Century Communications, Inc., a management  consultant firm. Mrs.
Dunlop  is a graduate of Miami University, Oxford,  OH.

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Inspection/Maintenance
   DavidSosnowski. Environmental Protection Specialist, National Vehicle & Fuel Emissions
      Laboratory, Office of Mobile Sources, U.S. Environmental Protection Agency;
   MichaelJ. O'Toole. Environmental Protection Specialist, Colorado Department of Public Health
      and Environment;
   Gary A. Bishop. Research Engineer, University of Denver;
   Leo M. Carroll. Vice President, Marketing, Systems Control, Inc.

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DAVID SOSNOWSKI
    David Sosnowski is an Environmental Protection Specialist at U.S. EPA's National Vehicle & Fuel
Emissions Laboratory in Ann Arbor, MI, specializing in motor-vehicle inspection and maintenance programs.
He works in the 1/M Section of the Emission Planning  & Strategies Division. He helped draft the proposed
and final version of the November 1992 I/M rule as well as the recently proposed I/M Flexibility
Amendments. He joined EPA's Office of Mobile Sources in 1988,  moving to Ann Arbor two years later. Mr.
Sosnowski taught English  composition and creative writing at the Universities  of Alaska, Michigan, Detroit,
and Wayne Stale. He is a  poet and published fiction writer. Mr. Sosnowski  graduated from the University of
Michigan with a Bachelors in English literature and from the University of Alaska with a Masters in creative
writing.
MICHAEL J. O'TOOLE
    Michael J. O'Toole is an Environmental Protection Specialist with the Colorado Department of Public
Health & Environment,  facilitating operating inspection and maintenance  programs for gasoline and diesel-
ftieled vehicles. His specific responsibilities are to implement the state's enhanced and basic I/M programs.
He is a  15-year member of the Society of Automotive Engineers and is associated with the National Center
for Vehicle Emissions Control & Safety at Colorado State University. He has a BS in industrial sciences and
transportation and has completed  graduate studies in socio-technical programs
GARY A. BISHOP
    Gary A. Bishop is a Research  Engineer at the University of Denver, with duties including the
development and refinement of hardware and software  for the University's remote-sensing equipment for
automobile exhaust emissions. He has participated in numerous  field studies  and has published extensively in
various journals, detailing studies of automobile emissions and the efficacy of programs  designed to control or
reduce them. Dr. Bishop received a BS  in chemistry from Berry College and an MS and PhD in biophysical
chemistry from the University of Colorado.
LEO M. CARROLL
    Leo M. Carroll is Vice President of Marketing for Systems Control, Inc., a leading contractor in the
design,  construction, and operation of centralized vehicle-emissions  testing programs. The company  has
inspection/maintenance contracts in Washington  state, Maine, Texas, Michigan, and Indiana. Prior to his
present  position, he was the General Manager of Vehicle Test Technology,  Inc. During the 1980s, Mr. Carroll
was the I/M Program Administrator for the Municipality of Anchorage, Alaska, where was responsible for the
startup and operation of a decentralized program. Before that, he was the automotive training coordinator for
the Colorado Department  of Health. Mr. Carroll began his career with the National Center for Vehicle
Emissions Control & Safety at Colorado State University.

-------
FLEXIBILITY TAKES MANY FORMS
 ป  New credit guidance issued February 27,1995
    I/M Flexibility Amendments proposed April 28,1995
 ป  Alternative test procedures
 ป  Re-evaluating test-and-repair discount based on local
    data

-------
    NEW I/M CREDITS
ป  Technician training and certification
ป  ASM2
ป  Age-based hybrids
ป  Repair-and-retest based hybrids
ป  ASM1 and RSD (in development)

-------
FLEX RULE: WAIVER CHANGES
 ป  Phase-in of basic and enhanced waivers until
   January 1998 allowed

 ป  Repairs done 60 days prior to test counted

 ป  Parts costs on owner-performed repairs of
   primary emission controls counted

 ป  Hardship exemptions not limited to once per
   vehicle lifetime

 ป  Comment requested on how to adjust waiver limit
   for inflation

-------
FLEX RULE: NEW, "LOW" STANDARD
    ป  OK if full credit not needed for 15%, attainment
    ป  Standard equals basic with...
        •    3 % waivers and 96 % compliance
        •   Visual checks for EGR and PCV added
        •   Light trucks to 8,500 Ibs. GVWR added
    ป  Can be met by biennial, test-and-repair program
    ป  Does not require dynamometers
    ป  Gets slightly less than one-third the reductions of
       the origmaf standard

-------
         FLEX RULE: ETC.
ป  Requests comments on whether the population
   cutoff for basic I/M should be changed from
   50,000 to 200,000

ป  Does not require I/M automatically in
   redesignated areas that experience a violation

ป  Does not change SIP or implementation deadlines

ป  Public comments are currently being summarized
   and addressed

ป  Final rule is scheduled to be published by August
   24,1995.

-------
        ALTERNATIVE TESTS
ป  California pilot study determined ASM to achieve
   reductions comparable to the IM240

ป  2-mode ASM credits included in February 27,1995
   guidance; 1-mode ASM credits being developed

ป  EPA has approved in concept the ESP-proposed
   helium tracer gas purge test and the through-the-gas-
   cap pressure test

ป  EPA is conducting a pilot study of these alternative
   evap tests in its test lanes in Illinois

ป  I/M Test Committee is in the process of developing
   test procedures and equipment specifications for
   ASM and alternative evaporative tests

-------
      DISCOUNT FLEXIBILITY
ป  EPA is working with Utah and Virginia to determine
   if existing, local data can be used to objectively
   quantify a local test-and-repair discount


ป  EPA hopes to refine and build on a method developed
   by Sherman Engineering for using before- and after-
   repair idle data as a surrogate for transient emissions
   scores
ป  Once a workable protocol has been developed and
   presented for stakeholder comment, it will be made
   available to other states

-------
                                STATE OF COLORADO
Roy Romcr, Governor
Patti Shwayder, Acting Executive Director

Dedicated to protecting and improving the health and environment of the people of Colorado

4300 Cherry Creek Dr S    Laboratory Building
Denver, Colorado 80222-1530 4210 E 11th Avenue
Phone (303) 692-2000      Denver, Colorado 80220-371 d
                (303) 691 -1700                                   Colorado Department
                                                             of Public Health
                                                             and Environment
                      COLORADO'S A.I.R.  PROGRAMS
  HISTORICAL  BACKGROUND

    •  Metropolitan area  in  nonattainment for  carbon monoxide  and
       transitional attainment for ozone.  Various  areas  throughout
       the  state  also exceed PMIO (and visibility) standard

    •  July 1981  introduced traditional decentralized  I/M program

                  - change of ownership
                  - sticker enforced
                  - light-duty passenger vehicles and most trucks
                  - low emissions tune-up
                  - E.G.S.I. M/Y 1975 and newer

    •  program covered eight-county metro area

    •  program coverage expanded to encompass additional vehicles and
       add  additional (partial) county, metro Greeley,  Weld County.
  ENHANCED AND IMPROVED BASIC I/M

      ' Authorized  (reluctantly)  by  the Colorado  General  Assembly
        (HB'93-1340) May 1993 with implementation 01  January 1995

    •  Federal Mandate  ys  high-tech  testing procedures  compatible
       with  vehicle technology

    •  Regulations,  S.I.P.'s  and   R.F.P.  developed,   submitted,
       implemented  (many  thanks  to  those  states  who  exchanged
       info./draft RFP's)

    •  RFP published Aug '93 with contractual agreement signed 22 Feb
        '94

    •  and we're off ...

-------
PROGRAM DESIGN AND STRUCTURE

  •  Both improved basic and enhanced programs implemented at the
     same time

  •  Basic  program  traditional  in  structure  and  based  upon
     "Colorado '94" TAS which  is  tied  to  program host system and
     registration data base real-time

  •  Enhanced program would be considered of hybrid design:
       (see fact sheets)

            '- program is split principally by technology in that
               newer  (1982  and  newer)  model  year vehicles  are
               tested  through  a  contractor  operated  network  of
               dedicated,  multi-lane centers

             - Pre-'82   model   year   may   be   inspected   at
               decentralized inspection-only  facilities operated
               by  independent  owner/operator   (motorists  owning
               such vehicles may  pursue  services from contractor
               or independent)

             - Inspection procedures:
                       • I/M 240 for light-duty passenger vehicles
                         and trucks of model year 1982 and newer
                       • idle short  tests  for  older  vehicles and
                         heavy-duty trucks
                       • ECSI,  all 1975 and newer
                       • smoke and CFC assessment

             - Inspection Fees:
                       • newer vehicles $24.25
                       • idle test $15.00 (max.)
                       • free retest within ten  (10)  days (min.)

             - Inspection Cycles:   (system wide)
                       • 1982 and newer = biennial
                       . pre-'82 and "fleets" = annual
                       • 4 year "new" vehicle exemption
                       • change of ownership

-------
IMPLEMENTATION EXPERIENCES    - comments

  •  You/your staff  will  become intimately involved  with County
     Commissions, Planning Commissions, municipal governments, and
     certainly neighborhood groups

  •  Consider options  for  locating  contractor operated  centers
     other than strictly demographics:
             - census / State Demographer / COG
             - growth projections
             - county vs population
             - set capacity based upon future data

  •  Would  strongly  recommend  initial  phase-in  of  2-3  months,
     voluntary participation

  •  Insist on formal,  comprehensive Acceptance Testing Procedures
     for all lanes and facilities

  •  It  is not  likely that  you  could  have  too  much  motorist
     outreach or public education activity and there could  never be
     too much training for lane inspectors

  •  Beware!

             - "fast pass",  avoid tying  to network  capacity or
               throughput calculations
             - phase-in emissions limits - no matter what, you're
               bound to be criticized
             - AWD/4WD/traction control and ABS equipped vehicles
               (see manual)
             - EPA inertia weight and H.P. tables
             - the media in general, but certainly talk-show hosts
             - V.I.N.A. program - vehicle class determination

  •  Be absolutely certain that contractor selection criteria and
     procedures are prescriptive,  understood,  and that the process
     is understood by all and well documented

  •  Do Not ...
             - implement program in an election year
             - implement with less than one year of "construction"
               time
             - implement while legislature is in session

-------
             - implement  the  program  without  the  involvement
               public/industry committee  ...  Repair Training and
               Diagnostic Advisory Committees
IN CLOSING:
     Colorado's  Enhanced  and  improved  Basic  I/M  program was
introduced  02  Jan '95  with  eight (8)  of  thirteen (13)  stations
available.   Three  additional stations  were  on-line within the
month.    More   facilities   are   in   process  for  01  July '95
implementation in Boulder County.

     While the introduction  of enhanced I/M was a bit  rocky,< the
program improves with every day of operation.   The  repair  industry
in general  is responding  well, we're seeing good repairs and the
demand for training is  strong.  We will  find ourselves  challenged
with the repair of vehicles previously unidentified (E0) such as the
Escort.  We  continue  to believe  I/M  240 technology is  strong but
recognize  the long-term  fix  for this  problem we  all  face  is
reducing VMT, reducing  society's  reliance  on the automobile.

     We look forward to  the further investigation of other  evovlving
technologies such as remote sensing with the annual  survey  targeted
for this fall and the  Greeley Pilot/Feasibility Study  due  in 1996.

     Thank you for this opportunity  ...  Good Luck!
95-119T.MJO
6/6/95

-------
               COLORADO'S ENHANCED I/M PROGRAM


 •  Inspection program begins January 2, 1995 with Boulder
    County, July 1995

 •  Program area includes Adams, Arapahoe, Boulder, Douglas,
    Jefferson and the City and County of Denver

 •  Inspection requirements  linked to vehicle registration
    and valid windshield certificate display, with motorist
    notification by County Clerk

 •  Inspection Cycles
           -  Model years  1-4 = exempt
           -  Model year 1982 and newer, but greater  than 4
              model  years = biennial
           -  Pre-1982 = annual
           -  Each change of ownership

 •  Strategically located, multi-lane, high  volume contractor
    operated inspection centers
           -  Inspection services  for all  non-diesel  vehicles
           -  Hours: 8:30 am - 7:30 pm M-F,  8:00 am - 1:00 pm
              Sat.
           -  Pre-1982 vehicles may be  inspected at
              independent    inspection-only  facilities
 •  Tests Required
           -  1982  and newer =  I/M-240  dynamometer test
           -  Pre-1982 and heavy-duty = idle short tests
           -  1975  and newer =  inspection  of emissions
              control  systems
           -  Air conditioning  leak  check  for
              chlorofluorocarbons
           -  Visible  smoke  and recall  verification

  •  Motorist Assistance
            -   Comprehensive  diagnostic  information
          . -  Repair assistance
            -  Motorist outreach and consumer hotline programs

  •   Emissions Related Repair Waiver Limits
               1968 and newer = $450
            -  Pre-1968 = $75
            -  Repairs to emissions control systems and
               correction of visible smoke do not apply

  •   Small Business/Technical Assistance Program
            -  Technical information and training
            -  Marketing and business development
            -  Train-the-trainer
94-025T.mjo                        	

-------
                                      STATE OF COLORADO
Roy Romer, Governor
Patti Shwayder, Acting Executive Director
Dedicated to protecting and improving the health and environment of the people &ฃ(>lorado
4300 Cherry Creek Dr. S.     laboratory Building
Denver, Colorado 80222-1530  4210 E. Uth Avenue
Phone (303) 692-2000       Denver, Colorado 80220-3716
                    OOJ) 691 -4700                                         Colorado Department
                                                                        of Public Health
                                                                        and Environment
                                 I/M 240 FACT SHEET

    I.     WHY COLORADO NEEDS AN EMISSIONS TESTING PROGRAM:
          Colorado, especially the Denver-metro area, has a significant air pollution problem.
          During the past fifteen years Denver has been in violation of the federal health
          standards for carbon monoxide (CO) on numerous occasions.
          Air quality will become an even greater concern with the growth expected in the
          state.
          In order to preserve the quality of life and health of Colorado residents, $n effective
          air pollution program must be in place.
          Colorado's I/M 240 test is expected to reduce CO emissions by 31%.,  Already
          preliminary data is showing this to be true.
          The previous program did an effective job of diagnosing older cars with emissions
          problems,  but the old tailpipe test does not effectively determine newer madel year
          vehicles that are gross polluters. The science proves this fact.

    II.    COLORADO'S I/M 240 PROGRAM IS BEGINNING TO WORK.
          Preliminary Data Shows:
          The average vehicle identified in  March as failing the test emitted moreXthan 81
          grams of CO per mile.
          Upon repair and retest, the average vehicle emitted less than 33 grams of CO per
          mile. This represents an average reduction of CO emissions of 59%.
          This new test is identifying gross polluters that were not identified previously.  For
          example, the new test has been able to  detect a dirtier class of cars.
          Data Available on The Old Idle Test Shows:
          50% of all excess CO emissions.
          38% of the tests were conducted incorrectly.
          Reduction in CO emissions of 13%.

     HI.   RESULTS OF I/M 240 STUDIES:
          Scientific  and real-world tests have proven the I/M 240 to be the most effective
          technology available to catch gross polluting vehicles and significantly redi^ce CO
          emissions.
          A Recent  Study by Sierra Research  on  California's I/M 240 Technology Detected:
          99.1% of all excess CO emissions.
          99.6% of all excess HC (hydrocarbon) emissions.
           100% of all excess NOx (nitrogen oxide) emissions.
           False failure rate of 4% of all vehicles in the study.

-------
I/M 240 Fact Sheet, Page two

      In the Same Study, Remote Sensing Detected:
      10.4% of all excess CO emissions.
      10.8% of all excess HC emissions.
      8.9% of all excess NOx emissions.
      False failure rate of 58%.
      Conclusion:
      I/M 240 test produced an average CO emission reduction of 32% in all Chicles
      inspected.
      I/M 240 identified 99% of vehicles' that exceeded allowable levels of CO en^ssions.

IV.   ALTERNATIVES TO THE  CURRENT PROGRAM:
      There are several options available to reduce carbon monoxide emissions. However,
      those alternatives may be more costly to implement and have far greater lifestyle
      effects  on the public. None of these alternatives are able to achieve thjl large
      reductions in  emissions that the I/M 240 can. The I/M 240 is designed t
-------
      Air Pollution Control Division Fact Sheet,  February 1994
  This is the first issue of the APCD Fact Sheet.
  It is hoped this sheet will work as a reference
tool to help you answer some of the public's
more frequently asked questions.
  Call Fred Quartarone at x3108 with any cor-
rections, updates or comments.


 GENERAL TRENDS:

 Colorado air quality trends;
 a good news, bad news story
  Colorado's .air quality has improved markedly in
the past two decades, however growth and increased
vehicle usage axe threatening those improvements.
  On the good news side — of the major pollutant
categories monitored in Colorado all but the visibility
category have improved in the last two decades.
  • The number of days on which federal CO stan-
dards were exc seeded in the Denver-metro area
dropped from 125 in 1972 to two days in 1993.
  • Ground-level ozone standards have not been
violated anywhere in Colorado since 1989.
  • Lead, nitrogen dioxide and sulfur dioxide stan-
dards have been met.
  • Over the last 20 years paniculate matter levels
have fallen off dramatically, however population and
industrial growth could threaten the improvements if
 new reduction strategies aren't utilized.
   On the bad news side - la$t year's air quality
 declined noticeably in several  categories. Coupled
 with predictions of increased growth and more traffic,
 the future of the state's air quality is uncertain.
   • The Denver area is not expected to meet carbon
 monoxide attainment standards by 1995-96.
   • The Denver Region Council of Governments
 predicts that the amount of miles driven each day  in
 the Denver area will double by the year 2015. The
 increase is sure to impact all facets of Denver's air
 quality.
   • Currently Denver-area motorists travel about 40
 million miles daily, burning approximately 2.5 million
 gallons of gasoline.
    • Denver's "Brown Cloud" is not improving, rather
 it's worsening, if anything.
VIotor vehicles and air quality
     For every 10,000 miles driven, a typical
    vehicle in Colorado emits approximately:
           586 Ibs. of Carbon Monoxide
             2 Ibs. of Benzene
            0.3 Ibs. of  1,3-Butadiene
             11b. of Formaldehyde
   • Benzene, 1,3-Butadiene and Formaldehyde
  are hazardous air pollutants that can cause
  cancer and other health problems depending on
  an individual's exposure to them.
  • Currently Denver-area motorists travelabout 40
   million miles daily, burning approximately
  2.5 million gallons of gasoline.

      There are more than 1.9 million automo-
      biles in the Denver area.
Denver-area Carbon Monoxide

               1990 Denver Area
            Carbon Monoxide Sources
    (Total Production = approximately 1700 Tons/Day)
                            Non-Road
                            Mobile Emission?
                              9*

                             Stationary Sources
                                 4*
   Vehicle Emissions
           I6X
               1995 DenverArea
            Carbon Monoxide Sources
     (Total Production = approximatery 1400 Tons/Day)

                           Non-Road
                           Mobile Emiji ionl
                              14*

                              Stationary Sourcei
                                 4*
    Vehicle F mis * ion j
          121

-------
 Fact Sheet
POLLUTANT
 SOURCES
    NON-
  ATTAIN-
    MENT
  AREAS
  EVENTS
     1992
STANDARD
                                                                                       February 1994
 HEALTH EFFECTS
 Carbon
 Monoxide
 (CO) is a
 colorless odorless
 gas. It occurs
 naturally in the air
 as the result of
 incomplete
 combustion
 processes, such as
 forest fires, the
 oxidation of
 methane and other
 natural processes.
  Urban CO is
  produced
  mainly from
  automotive
  sources.
  Urban
  atmospheres
  contain about
  100 times as
  much CO as
  any other
  pollutant.
                  'StfvyK'&szrzK'.'tKys
                  f;™i^?"'y^~;t<^.'~.A----v
                  SVS*f fS, ••<•:> **•. n.->,-',;>:.
*SKSซiaปf?r*.ซy!ซ-?'
 }rocess|3ources
          \"ฃ,*i.,A$fc.
          from
  -„„.....asasfc •"•
 x)weR
 ^b1rffiblacj(_
 3&om|autom6^S
Ozone (O3) is
a highly reactive
form of oxygen.
Ozone is not
emitted directly
from a source, but
forms when
reactive hydrocar-
bons and nitrogen
oxides chemically
react with each
other in sunlight.
 The reactive j
 hydrocarbons?or
 percursors that
 form ozone are
 emitted from
 automobile
 exhaust; gaso-
 line and oil
 storage and
 transfer facili-
 ties; industrial
 usage of paint
 solvents and
 degreasing
 agents.
• Denver metro
 area (including
 Boulder)
• Fort Collins
• Greeley
• Colorado
 Springs
• Longmont
' Denver metro
 area (includ
 ing Boulder)
• Denver metro
 area (including
 Boulder) = 1
 exceedance
 events
• All other areas
 = zero
 9ppm/8 hours
 35 ppm / 1 hour
                                                 ST-.'*,:. ;;'  '-'. ftfc*ซtฃ;;s-.
                                                 *;Denver.metrorir
                                                 -]^l|oifae^area%fe
                                                    erb
Statewide = zero
0.12ppm/l
hour
 CO affects the central nervous
 system by depriving the body
 of oxygen. Tests of automobile
 drivers show exposure to CO
 can impair a driver's judgment
 and ability to respond rapidly
 in traffic. It can especially
 affect pregnant women, fetuses,
 anemic individuals and persons
 with cardiovascular diseases.
                                                                „ '*.
                                                                Particulate;matte

                                                                ".
                                                                                 .
                                                                                 respiratoncon
                                                                                 ซv-^ป3Jซa?^
                                                                                 mayปincrease;
                                                                                  *--:*^-!'*>"**3**!Si
Snort term exposure to ozone
may impair mechanical
functions of the lungs and
may induce respiratory and
related symptoms in sensitive
individuals.

-------
  Fact Sheet
                                                                       February 1994
POLLUTANT


Sulfur Diox-
ide (SO2) is a
colorless gas with
a pungent odor. It
is highly soluble in
water, resulting in
the formation of
sulfurous acid,
which can easily
be converted to
sulfuric acid which
is the major acidic
component of
"acid rain."
SOURCES
 ulfur dioxide
 s emitted
mainly from
 ources that
bum fossil fuels
 coal, oil) such
as power plants
and refineries,
and from the
 iroduction of
materials from
 ulfur-bearing
 jres, such as
copper smelt-
 ng.
                 ,iJS^#iฃwSS',s';ฃ*><ซ f,
                  le^reaonu^??;
                  Vfeซ^^ฅ?8w3fer!
                  lantesoiumpfcSEgi
Nitrogen
Dioxide
(N02) is a
reddish-orange-
brown gas with a
characteristic
pungent odor that
forms during high-
temperature com-
bustion to form
oxides of nitrogen
(NOx), which then
can combine with
 oxygen and form
 nitric dioxide, the
 oxide of nitrogen
 with the biggest
 health hazard.
                        ienci
                        tซt*'i'ซ3ฃ!ig
                        ivetucless
                  ^5ปK-S^ปS^tJ1Mgซft~ '
                  tiat^unjaeMei
                  iasbliheflcis^J;
About 44 percent
of the nitrogen
dioxide emis-
sions in the
 Denver area
come from large
combustion
sources such as
power plants, 33
percent from
motor vehicles,
 15 percent from
 space heating, 3
 percent from
 aircraft and 5
 percent from
 miscellaneous
 off-road vehicle:
  NON-
ATTAIN-
  MENT
AREAS

 None
  None
EVENTS
  1992

  None
STANDARD
 i.03 ppm / yearly
 Ll4ppm/24 hours
 L5 ppm / 3 hours
                                                     None
                0.053 ppm /
                yearly
HEALTH EFFECTS
Sulfur dioxide can aggravate an
ndividual's respiratory tract,
impair pulmonary functions
and increase the risk of asthma
attacks.
                 Nitrogen dioxide can increase
                 respiratory problems, cause
                 mild symptomatic effects in
                 asthmatic individuals and
                 increase susceptibility to
                 respiratory infections.

-------
,-Fact Sheet
 PM10 Sources
   Average Annual PM10 Source Apportionments
                Denver-Metro Area
       MoljieEncsiom  10.0%
    Streets and  45.0X
                            Stationary Sources  15.0%
                                 Wfaodburning 10.0%
                                Otter  20.0%
Acid rain
     Acid rain is the general term to describe the
rainfall removal of acidic pollutants from the atmo-
sphere. However, acids can be contained in other
forms of precipitation such as snow or fog. The term
acid deposition is used to include all the possible
forms of acid pollutant removal from the atmosphere,
but acid rain remains the popular term.
     The majority of the deposited acids are nitnc acid
(HNO3) and sulfuric acid (H2SO4). These are formed
when nitrates and sulfates in the air mix with water
vapor. Coal-fired power plants and motor vehicles
are the major sources  of acid  pollutants in Colo-
 rado.
      The effects of acid deposition are the subject of
 continuing controversy. The northeast section of the
 United States has experienced the worst reportable
 impacts in this country. Lossesjaf and changes to
 aquatic life, such as fish populations, have been
 attributed to acid deposition. Crop and forest growth
 may be reduced by acid deposition or a combination
 of acid deposition and other environmental factors.
      The most sensitive systems to acid deposition are
 poorly buffered lakes and streams. Buffering capacity
 refers to the availability of alkaline minerals from soil
 or rock to neutralize  the acids.
      To date, there is no firm evidence of ecological
 changes caused by acid deposition in Colorado. A
 survey of Colorado lakes found no lakes that have
 been acidified by acid  deposition. However, short
  lived "acid pulses" from melting snow may be ad-
  versely affecting the aquatic life of alpine lakes,
                                 February 1994
although the water's pH is not permanently lowered.
Many areas in Colorado's Rocky Mountains are
highly sensitive, with little buffering capacity, and are
at risk of being harmed by acid deposition.

Visibility
    The cause of visibility impairment is most often
fine particles in the 0.1 to 2.5 micrometer size range
(1 micrometer is a millionth of a meter). Light passing
from a vista to an observer is either scattered away
from the sight path or absorbed by the atmospheric
fine particulates. Sulfate, nitrate, elemental carbon and
organic  carbon are the most effective particulates at
scattering and/or absorbing light. The man/woman-
made sources of these particulates include wood
burning, electric power generation, industrial combus-
tion of coal or oil and emissions from cars, trucks and
buses.
     A visibility standard exists for the Denver area.
The standard is 0.76 per kilometer of atmospheric
extinction, which means that 7.6 percent of the light in
a kilometer of air is blocked. The level must be ex-
ceeded, averaged over four hours, for a violation to
occur. It applies during the core daylight hours from 8
a.m. to  4 p.m.

 Denver's "Brown Cloud"
      Visibility factors combined with meteorology are
 responsible for the creation of the Brown Cloud.
 When pollutants emitted from the urban environment
  are trapped by a temperature Aversion, a Brown
  Cloud  is often created. Below is a pie chart showing
  the type and amounts of pollutants found in a typical
  "Brown Cloud:"

       Average Visibility Apportionment
                For Brown Cloud Episodes'
            Nitrogen Dioiide**
            Background
MobDc S ourcc*
   It*
                                Sourc* = 1987-88 Do/iver Brown
                                Cloud Study

-------
Dr. Gary A. Bishop
Department of Chemistry
University of Denver
Denver, CO.  80208
voice: (303) 871-2584
fax: (303) 871-2587
email: gbishop@du.edu

Presented at "Improving The Clean Air Act: The Mobile Source Issues"
June 20-21,  1995
Stouffer Renaissance Hotel
Arlington, Virginia

-------
INTRODUCTION

Urban air quality does not meet the federal standards in many cities. Violations of the ozone
standard arise from photochemical transformation of oxides of nitrogen (NO,) and
hydrocarbons (HC). Carbon monoxide (CO) standards are primarily violated as a result of
direct emission of the gas.  Mobile sources are a major factor in all urban emissions
inventories for carbon monoxide, hydrocarbons, and oxides of nitrogen.

Air pollution control measures to mitigate mobile source emissions in non-attainment areas
include inspection  and maintenance (I/M) programs, oxygenated fuel mandates, and
transportation control measures. Nonetheless, many areas remained in non-attainment past the
1987 deadline for compliance with federal standards, and some are projected to remain in
non-attainment for many more years despite the measures currently undertaken.

In 1987, with support from the Colorado Office of Energy Conservation, the University of
Denver developed  an infra-red (IR) remote monitoring system for automobile carbon
monoxide (CO) exhaust emissions. Significant fuel economy improvements result if rich-
burning (high CO and HC emissions) or misfiring (high HC emissions) vehicles are tuned to
a more stoichiometric and efficient air/fuel (A/F) ratio.  Therefore, the University of Denver
CO/HC remote sensor is named Fuel Efficiency Automobile Test (FEAT).  The initial
instrument  was successfully demonstrated in the summer of 1987.  Revised instrumentation
capable of  video capture of vehicle license plates and the capability to measure exhaust
hydrocarbon emissions  was demonstrated in the summer of 1990.  Additional enhancements
have been added and demonstrated since then which  enable the measurement of exhaust, NO
emissions, exhaust opacity, speed and acceleration, dual lane vehicle measurements  and(the
capability for determining the operating temperature of a passing vehicles catalysts.

Theory of Operation

The FEAT instrument was designed to emulate the results one would obtain using a
conventional non-dispersive infra-red (NDIR) exhaust gas analyzer.  Thus, FEAT is also)
based on NDIR and non-dispersive ultraviolet (UV) absorption principles. An IR and UV
source sends a horizontal beam of radiation across a  single traffic lane, approximately 10
inches above the road surface. This beam is directed into the detectors on the opposite side
and divided between four individual IR detectors; CO, CO2, HC, and reference and one UV
detector; NO and reference. An optical filter that transmits IR or UV light of a wavelength
known to be uniquely absorbed by the molecule of interest is placed in front of each detector,
determining its specificity.  Reduction in the signal caused by absorption of light by the
molecules of interest reduces the voltage'output. One way of conceptualizing the instrument
is to imagine a typical  garage-type NDIR instrument in which the separation of the  IR source
and detector is increased  from 10 cm, as found in the sample cell, to 20-40 feet. Instead of
pumping exhaust gas through a flow cell, a car now  drives between the source and the
detector. Because the effective plume path length  and amount of plume seen depends on
turbulence and wind, the  FEAT can only directly measure ratios of CO, HC or NO  to CO2.
These ratios are constant for a given exhaust plume.  With a fundamental knowledge^ of
combustion chemistry,  we can determine many parameters of the yem'cleXpperating

-------
characteristics, including the instantaneous air/fuel ratio, grams of CO, HC or NO emitted per
gallon of gasoline burned, and the %CO, %HC or %NO in the exhaust gas.

Field Experience

The FEAT is effective across traffic lanes of up to 50 feet in width.  It can be operated across
double lanes of traffic with additional video hardware; however, the normal operating mode is
on single lane traffic.  The FEAT operates most effectively on dry pavement, as rain, snow, ,
and very wet pavement scatter the beams. These interferences cause the frequency of invalid
readings to increase, ultimately to the point that all data are rejected as being contaminated by
too much "noise".  At suitable locations we have monitored exhaust from over two thousand
vehicles per hour.

The FEAT has been used to measure the emissions of more than 2,000,000 vehicles in 20
different countries and most metropolitan areas in the United States.  The FEAT has been
shown to give accurate readings for CO, HC and NO in double-blind and open studies of
vehicles both on the road and on dynamometers. Reported accuracies for CO are better than
ฑ 5%, ฑ 15% for HC and ฑ 30% for NO.

Not all cars have equal emissions. Data from  our measurements show that, a small fraction
of the passing vehicles are responsible for half or more of the emissions in any given area.
In Denver half the emissions come from only seven  percent of the vehicles. In Kathmandu
half the emissions come from 25% of the vehicles.  The few  vehicles emitting half of the CO
and HC are referred to as "gross polluters".  For automobile emissions the old adage that the
"tail wags the dog" holds true.

The overall characteristics of these fleets are very similar  regardless of age, location, or the
presence or absence of I/M programs and can be mathematically described by a gamma
distribution. Most U.S. vehicles show mean emissions of 1% CO and 0.1% HC (as propane)
or less in the exhaust. The newer the fleet the more skewed  the emissions. This is because
more  of the vehicles have  near zero emissions and thus, a smaller number of  gross polluters
dominates the total emissions.

The good news is that for  the U.S. fleet the lowest emitting 50% of the vehicles produce only
-4% of the CO emissions  and -16% of HC using current gasoline formulas as fuel.  Not all
gross polluters are old vehicles (only about 25% of pre 1975  vehicles in the U.S.).  In fact,
the majority of even precatalyst vehicles are relatively low emitting.  There is a strong
correlation  between fleet age and fleet emissions, however, this correlation has less to do with
emissions control technology than it does with vehicle maintenance.  Any  well maintained
vehicle regardless of age can be relatively low emitting. All  of our studies point to the fact
that new vehicles have negligible emissions when first purchased, thus emphasizing the need
for proper maintenance.

INSPECTION AND MAINTENANCE PROGRAMS AND REMOTE SENSING

Recent attempts to  "enhance" current I/M programs  in the United States~have-kindled a debate

-------
as to why the programs have been ineffective at reducing measurable on-road vehicle
emissions and what can be done to improve them.  Current programs in the United States
have a number of notable weaknesses which likely contribute to their overall ineffectiveness.

1)  Emphasize vehicle testing over vehicle maintenance.
       A)  Compare programs contract costs for testing versus the amount spent on mechanic
       training.
       B)  Only emission repairs and not emission testing directly impacts air quality.

2) Assume all failed vehicles get repaired.
       A)  Current and enhanced program protocols and repair cost waivers encourage
       owners to have vehicles tested multiple times before initiating repairs.

3)  Assume vehicle emissions invariant.
       A)  Vehicles are tested infrequently.
       B)  All programs  use a single pass/fail cutpoints

4)  Provide no year round deterrence against emissions component tampering.
       A)  Tests are scheduled  and at the owners consent.

5)  Fairness issues limit effectiveness.
       A)  Often fleets are allowed to be self inspected
       B)  Some model years exempted from testing
       C)  Vehicles driven 100,000 miles/yr tested at same rate as vehicles driven 10,000
       miles/yr.

The capability to now monitor vehicle emissions unobtrusively from the roadside enables
these issues to be directly dealt with from a fresh perspective.  Vehicle emissions should be
monitored on a continual basis with more emphasis placed on educating the public about the
need for regular vehicle maintenance, not just when their vehicle fails an I/M test. A
continual monitoring presence can be used to deter emissions systems tampering, much in the
same way that the IRS audit's a small fraction of tax returns to encourage compliance, as
well as providing a means for evaluating the effectiveness of the I/M program. We must
remember that I/M programs are meant to reduce on-road vehicle emissions, not just
demonstrate our ability to successfully implement complicated and expensive programs. As
popular as command and control programs from government entities have been in the past all
of these programs will stand or fall on the basis of the public cooperation and acceptance.  A
key underpinning of this  support is whether or not  the programs accomplish their goals,
namely for I/M programs cleaner air.

-------
Suggested reading:

"On-Road Vehicle Emissions: Regulations, Costs, and Benefits", Stuart P. Beaton, Gary A.
Bishop, Yi Zhang, Lowell L. Ashbaugh, Douglas R. Lawson and Donald H. Stedman, Science
268: 991-993, 1995.

"A Cost-Effectiveness Study of Carbon Monoxide Emissions Reduction Utilizing Remote
Sensing", Gary A. Bishop, Donald H. Stedman, James E. Peterson, Theresa J. Hosick and
Paul L. Guenther, J. Air Waste Manage. Assoc. 43:978-988. 1993.

"IR Long-Path Photometry, A Remote Sensing Tool For Automobile Emissions", Gary  A.
Bishop, John R. Starkey, Anne Ihlenfeldt, Walter J. Williams, and Donald H. Stedman, Anal.
Chem. 61: 671A-677A, 1989.

D.R. Lawson, "'Passing the Test'  - Human Behavior and California's Smog Check Program,",
J. Air Waste Manage. Assoc.. 43:1567, 1993.

D.R. Lawson, P.J. Groblicki, D.H. Stedman, G.A. Bishop and P.L. Guenther, "Emissions from
In-use Motor Vehicles in Los Angeles: A Pilot Study of Remote Sensing and the Inspection
and Maintenance Program", J. Air Waste Manage. Assoc.. 40(8): 1096, 1990.

J.G. Calvert, J.B. Heywood, R.F. Sawyer, J.H. Seinfeld, "Achieving Acceptable Air Quality:
Some Reflections on Controlling Vehicle Emissions," Science. 261, 37, 1993.

-------
View Graphs

-------
               CO and HC Remote Sensing
          Computer.
Calibration
IR Source
                                      ERSITY of DENVER
  A schematic diagram of the University of Denver on-road emissions monitor. It is
  capable of monitoring emissions at vehicle speeds between 2.5 and 150 mph in under one
  second per vehicle.

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Remote Sensing Accuracy
      CO better than ฑ 5%
     HC better than ฑ15%
      Both measured blind

       NO about ฑ 30%
      Opacity about ฑ 30%
         Neither blind

     Speed and acceleration
      0.1  mph; 0.1 mph/s

      Hot/Cold car detector

-------
          Denver,  CO. 1992
  100
   90
   80
   70
"3  60
8  50
(D
PU  40
   30
   20
   10
    0
                          Vehicle Fleet
                          Total CO Emissions
L I, I. I. I
                1  .
1   2  3  4  5  6  7  8  9 10 11  12  13 14 15
         Percent CO Category

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               Katmandu, Nepal 1993
  100



   90



   80



   70




fi  6ฐ
0)
O  50
IH
0
PU  40



   30



   20



   10



    0
                          Vehicle Fleet

                          Total CO Emissions
.1 il II ll ll h 1.1....
      ^i^^       ^i^^^T"^i^^"T"^il^^*""^i^^""r^i^^""ir"^nf
        1  2  3  4  5  6  7  8  9 10 Ll 12 13 14 15


                  Percent CO Category

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California 1991 / Goteborg, Sweden 1990
c.o

2.0
O
0 1.5
a
cd
,2 i.o
^25
0.5
n n




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f-







































• Goteborg, Sweden
• California




























~





•


II
lilinl
II I il il II ll
   76   78   80
82   84   86   88  90  92
Model Year

-------
Inspection and Maintenance Program
              Weaknesses
  Emphasizes testing over maintenance
  Assume all failed vehicles get repaired
  Assume vehicle emissions are invariant
  Provide no year-round deterrence against emissions
  component tampering
  Fairness

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          12
          10
           8
           6
           0
             0
                       1988 Mercedes  -  2.6L PFI
100     200     300     400    500
            Time in Seconds
600
700
%CO data collected with a 4 gas analyzer from a 1988 Mercedes Benz 190E over a road course of stop-and-go/freeway driving. Low
emissions are observed when presumably the oxygen sensor was functioning properly.

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3UU

1, 250
^M
^j
^^^
Xj
^^^
^T 200
-H
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oT 15ฐ
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                                           345
                                               Vehicle
6
FTP data for CO and HC emissions from seven 1986 and newer model year high emitters. Four (or 5) separate tests on the same fuel
are plotted for each vehicle for CO (x) and HC (o).

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Creating Sound Emission Standards
   James Markey. Environmental Protection Specialist, National Vehicle & Fuel Emissions
      Laboratory, Office of Mobile Sources, U.S. Environmental Protection Agency;
   Glenn F. Keller, Executive Director, Engine Manufacturers Association.

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JAMES MARKEY
    James Markey is an Environmental  Protection Specialist in the Certification  Division of U.S. EPA's
Office of Mobile Sources. He has been with EPA since 1990 and his work has been focused on  a review of
and revisions to the Federal  Test Procedure, which serves as the regulatory cornerstone of exhaust-emissions
control. Prior to joining EPA, Jim was an economist with the Bureau of Labor Statistics, U.S.  Department of
Labor.
GLENN  F. KELLER
    Glenn F. Keller is Executive Director of the Engine Manufacturers Association, a not-for-profit group
consisting of worldwide manufacturers of internal-combustion  engines used in all applications except
passenger cars and  aircraft. He frequently acts as the main spokesman for the industry and is responsible for
ensuring  that the  interests of the engine manufacturers  are appropriately represented in proposed legislation
and emissions regulations around the world. He joined EMA in 1987. Mr. Keller began  his career with the
Ford Motor Co., spending 10 years on various projects of engine design, emissions-control development, and
car product planning.  He was also a product-development consultant with L.B. Knight & Associates, where  he
developed applications and processes  for advanced materials.  He received his BS in mechanical engineering
from the Illinois Institute of Technology  and an  MBA  in marketing and finance from the University of
Michigan.

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                    WILLIAM M. GUERRY, JR.
                   Outline of Speech on Utility Engines
                              June 21,1995
I.     CALIFORNIA REGULATIONS

n.    TEXAS OPT-IN

III.   FEDERAL PHASE I REGULATION

      A.    Effective Date

      B.    Stockpiling Restriction on Equipment Manufacturers,  But No Separate
           Effective Date

      C.    Elevated CO Standard

      D.    Two-Stroke Lawnmower Exemption

      ฃ.    Two-Stroke Snowthrower Exemption

      F.    No Mandatory In-Use Testing Program

      G.    Equipment Manufacturers' Responsibilities

      H.    No Cap on Noise


IV.   REGULATORY-NEGOTIATION

      A.    Technology/Standards

            1.    Technology
           2.    New Engine Standards
           3.    In-Use Standards
           4.    In-Use Testing

      B.     Enforcement Remedies

      C.    Evaporative Controls

      D.    Voluntary Programs

            1.    Spillage
            2.    Noise Labeling

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 FnnDuNlclIc
 Depart Uenstgutif Quieter

  
-------
ABACUS TECHNOLOGY  CORP.
Kathryn E. Derr, Seriior Associate

AMERICAN AUTOMOBILE^A'SSOCIATION
Bill Berman, Director^

AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION  (AAMA)
Gerald A. Esper, Director, VED

AP PARTS INTERNATIONAL
David A. Miller, Product "Manager

AUTOMOTIVE DIAGNOSTICS
Cliff Grove, Product Manager

BP OIL COMPANY
Ken Alfred, Coordinator, Cleari^Fuels

BROOKHAVEN NATIONAL LABORATORY
Jeffrey Williams,  Project Engineer

COALITION FOR SAFER, CLEANER VEHICLES
Russell A. Hinz, President

COMSIS CORP.
Lori Diggins, Director

CROWN CENTRAL PETROLEUM CORPORATION
Jeff Folks, Manager of Government Affairs

DELAWARE DIV. OF MOTOR VEHICLES
Ronald T. Guliana, Clean Air Administrator

DELAWARE DOT OFFICE OF REGULATORY AFFAIRS
Elizabeth Sproul

ENVIRONMENTAL FUELS TECH T/.LC
Charles Wickstrom, President

ENVIRONMENTAL SYSTEMS PRODUCTS
Bill Watson, Consultant

ENVIRO-TEST SYSTEMS CORP.
Lawrence H. Taylor, Vice President

ENVIROTEST TECHNOLOGIES
Jeff Earth, Program Manager

EXECUTIVE OFFICE OF TRANSPORTATION & CONSTRUCTION  (MASS)
Robert M. Ruzzo, Deputy Secretary

FEDERAL HIGHWAY WORKS ADMINISTRATION
Michael Koontz, Planner

FORD MOTOR COMPANY
Thomas Falahee, Staff Attorney

GAS RESEARCH INSTITUTE
Louis A. Lautman,  Senior Product Manager, NGV Products

-------
GEORGIA DEPT. OF TRANSPORTATION
William L. Johnson, Transportation Planner

GREATER ST. LOUIS AUTOMOTIVE ASSOCIATION
David Crafton, Executive Assistant

GREENGAS OF AMERICA
Gilbert E. Martin, Senior Consultant

HOUSTON-GALVESTON AREA COUNCIL
Mark Matteson, Transportation Planner

LIQUID CARBONIC
George Rhoades, Senior Principal Engineer

MARTA TECHNOLOGIES
Jon Wright, I/M Program Development

MARYLAND DEPT. OF TRANSPORTATION
David Moss, Planning Manager

MARYLAND DEPT. OF TRANSPORTATION
Howard Simons

MASSACHUSETTS DEPT. OF ENVIRONMENTAL PROTECTION
Hank Southworth, Director, Division of Enhanced I/M

MASSACHUSETTS DEPT. OF ENVIRONMENTAL PROTECTION
John Walser, Environmental Analyst

MASSACHUSETTS REGISTRY OF MOTOR VEHICLES
John E. Houghton, Deputy Registrar

MITSUBISHI MOTORS AMERICA
Steve Sinkez, Assistant Vice President

MOBIL OIL CORP.
Sandra A. Uphill, Counsel

MOTORVAC TECHNOLOGIES, INC.
Neil Davis, National Accounts Manager

NATIONAL PRIVATE TRUCK COUNCIL
Earl Eisenhart, Vice President, Policy & Government Affairs

NATURAL RESOURCES DEFENSE COUNCIL
Raid Benfield

NEBRASKA ETHANOL BOARD
Gary Goldberg, Board Member

NEVADA DEPT. OF MOTOR VEHICLES
Pete Bellis, Emission Control Engineer

NEW JERSEY DEPT. OF MOTOR VEHICLES
Steve Robbins

NEW YORK CITY DEPT. OF TRANSPORTATION
David J. Ellis, Chief, ECO Program

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NEW YORK  STATE  DEPTV  OF MOTOR VEHICLES
Michael P. Maher,  Director,  Technical Services Bureau

NEW YORK  STATE  DEPT. "OF MOTOR VEHICLES
J. Richard Cahill, MV Program Manager

NISSAN NORTH AMERICA,  ]^NC.
Eiji Makino, Manager,  Technical Affairs  .

ORANGE COUNTY BUSINESS COUNCIL
Julie Froeberg  Puentes,  Public Affairs Director

OWATONNA  TOOL COMPANY
James Wanberg,  Product Manager

OWATONNA  TOOL COMPANY
John Nordman, Senior  Product Development Specialist

PENNSYLVANIA DEPT. OF ENVIRONMENTAL RESOURCES
Arleen Shulman, Section Chief

PIKES PEAK AREA COUNCIL OF GOVERNMENTS
Maurice H. Rahimi, Executive Director

PILLSBURY MADISON  & SUTRO
Ted Stevens,, Jr.,  Esquire

PROTECTAIR
Ross Jenkins, I/M  Manager

RADIAN CORPORATION
John Williams,  Client  Sectjor Manager, EPA Programs

RAILROAD  COMMISSION OF TEX&S
Maria Louisa Flores,  Intergovernmental Relations Director

SENSORS,  INC.
Rob Wilson, Vice President, Marketing and Sales

SHELL OIL COMPANY
Robert Slott

SIERR2 CLUB
Marian Rose, Energy Chair

TARRANT COUNTY
Marti VanRavenswaay,  Commissioner

TARRANT COUNTY
Jon Weist, Precinct 2 Administrator

TEXAS NATURAL RESOURCE CONSERVATION COMMISSION
John Steib,  Division  Director

TEXAS NATURAL RESOURCE CONSERVATION COMMISSION
Catherine Collins, Program Administrator

TOYOTA  MOTOR CORPORATE SERVICES
Gus Tirado,  Government Affairs

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TOYOTA TECHNICAL CENTER
Ed Brune, General Manager

TOYOTA TECHNICAL CENTER
Matt Kevnick, Manager

U.S. ENVIRONMENTAL PROTECTION AGENCY
Paul Wentworth, Environmental Protection Specialist

U.S. ENVIRONMENTAL PROTECTION AGENCY
Roxanne Johnson, EPA Specialist

U.S. GENERAL ACCOUNTING OFFICE
DeAndrea Michelle Leach

U.S. GENERAL ACCOUNTING OFFICE
James R. Beusse, Senior Evaluatpr

UNITED PARCEL SERVICE
Jim Bloom, Engineer

UNITED PARCEL SERVICE
Matt Branam, Manager of Corporate Public Affairs

UNITED STATES POSTAL SERVICE
William T. Johnstone, Chief Counsel, State and Local Policies

VERMONT AGENCY OF NATURAL RESOURCES
Elizabeth McLain, Deputy Secretary

WASHINGTON GAS
Patricia Coe, Consultant

WESTCHESTER COUNTY DEPT. OF TRANSPORTATION
Virginia Johnson, Principal Planner

WISCONSIN DOT DIVISION OF PLANNING
Lynne B. Judd, Chief, Environmental Strategies

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    Creating Sound
    Emission Standards
I'{'
        James P. Markey
     National Vehicle and Fuel
       Emissions Laboratory
 Office of Mobile Sources, U.S. EPA
The Mobile Source Issues Conference
         June 20, 1995

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The FTP Review Project:
A Case Study
 I.   Steps to a sound regulation
 II.   Cooperative research: lessons learned
III.   Inventory-regulatory feedback

-------
I. Steps to a Sound  Regulation



• Identifying the problem
 Understanding the problem
 Solving the problem

-------
Identifying Problems with the
Federal Test Procedure
 CAAA required EPA to:
 "review and revise as necessary...to insure that
 vehicles are tested under circumstances which reflect
 actual current driving conditions..."

 Complete work in 18 months

-------
Identifying the Problem...
What We Thought was Wrong
 Potential concerns
 - Speeds and accels

 — Road grade (none)

 — Air conditioning

 - Vehicle loading
 — Start/soak

-------
•is!
Ill
Illil;
           Pitfalls of Making the Quick Call
               Off-cycle Enrichment
            250
         ^
                                   Dooley's Aphorism:
                                   "It wasn't what we didn't
                                   know that hurt us, it's
                                   what we knew for sure
                                   that turned out to be
                                   wrong."

                                   Acceleration test
                                   considered as a quick fix
                 iHC^COHNOx
            Time is a key ingredient of sound science

-------
Understanding the Problem...
                O
Non-FTP Operation and Emissions
In-use Driving Surveys
- Four U.S. cities employing two survey techniques
- Air-conditioning usage study

Emission Test Programs
- EPA and ARB testing
- AAMA/AIAM sponsored multiple test programs by in
 cooperation with EPA and ARB

-------
* C i 1
'! ป**+-,
Solving the Problem...
Considerations in Revising the FTP
 Test Procedures
 - Representing the real world in a test cell
 - External constraints (CAFE)

 Standard setting
 - Evaluating benefits and costs

 Implementation
 - Lead time considerations

-------
% V ' -. 's
Solving the Problem...
        o
Proposed Revisions to the FTP

• Aggressive Driving

 - Taking into account differences in vehicles and drivers
 Air Conditioning

 - What is a "good" simulation?

 - Creating incentives for in-use control


 Intermediate Soaks

 - Balancing getting control today against expected control
   (Tier II) in the future

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II.   Cooperative Research
        PRO:

  Leverage human and
  financial resources

  Coordinate agencies1
  regulatory actions

  Minimize conflicts by
  working with common
  database
     CON:
Differing agendas and
priorities
Limiting the scope of
research

-------
III. The Importance of the
   Feedback System
        INVENTORY
         ACTION
      (REGULATION)

-------
The Mobile Source
Emission Inventory...
• Purpose:
  - Tells us what we have
  - Where it comes from
  - Starting point for modeling future inventories

• Uses:
  - Identifies areas of concerns
  - Tool for evaluating regulatory impact
  - Critical input to SIP/FIP

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*. f \
        Inventory Improvement Efforts
         Ongoing revisions to MOBILE model
         - MOBILESb to be released this summer
           * Incorporates effects of recent rules
         — Major review/revision due in early FY97

         Emission Inventory Improvement Program
         - Partnership with STAPPA/ALAPCO
         — Improve inventory guidance

         NARSTO
         T^EnJiance^anderstanding of ozone formation
         - Develop tools for future inventory models

-------
In Summary...
 Sound regulations demand sound science

 Resources for sound science through
 partnering research with stakeholders

 Ongoing need to enhance inventory feedback system

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Conference on Improving the Clean Air
   Act: The Mobile Source Issues
  Arlington, VA  June 20-21, 1995

Creating High Performance
       Regulations
                 GLENN F. KELLER
 6 DTI 3,       Engine Manufacturers Association

-------
    Regulatory Environment
Regulation Pervasive Throughout
Industry
Integral Facet of Product Design
Clean-Sheet Approaches

-------
Scope of Regulation
  Emission Standards
  Certification Procedures
  Production Audit Testing




  In-Use Compliance

-------
  Re-Invention of Regulation
Clean-Sheet Approaches

Foster A Partnership Relationship With
Industry

-------
Attributes of a Partnership
     Mutual Objectives



     Mutual Cooperation
     Mutual Trust

-------
Partnership: OBJECTIVES
 Cost-Effective Control Measures
 Incentivize Advanced Technology

-------
Partnership:  COOPERATION
 Feasibility > Leadtime > Stability



 Uniformity of Regulation

-------
 Uniformity of Regulation
Same Requirements in Every State



Broad Interpretation of Preemption
Worldwide Harmonization

-------
    Partnership:  TRUST
Reduce Overkill Approaches



Mutual Responsibility for Enforcement

-------
   Mutual Responsibility for
         Enforcement
Manufacturer Self-Certification
Quality of Production Audit


Cooperatively Monitor In-Use Compliance

-------
    Closing Points
Reasonableness
Foster Mutual Trust
Eliminate "What If" Safeguards

-------
Keynote Presentation •- Employee Commute Options
  Hon. Donald Manzullo, Republican of Illinois, U.S. House of Representatives.

-------
HON. DONALD MANZULLO
    Hon. Donald Manzullo is the Republican Representative of the 16th Congressional District of Illinois. He
was first elected to the 103rd Congress and was re-elected in November 1994 with 71% of the vote. As a
ranking  member of the House Small Business Committee, Congressman Manzullo is Chairman of the
Subcommittee on Procurement, Exports & Business Opportunities. He is Vice Chairman of the Subcommittee
on International  Economic Policy,  Trade & The Environment of the International Relations Committee.  He
also leads the Subcommittee on Asia Narcotics Working Group and serves on the Joint Economic Committee.
He received a BA from American  University and a JD from Marquette University.

-------
                     "Pursuing Reasonable Alternatives to Car Pool Mandates"
                                          by
                           U.S. Representative Don Manzullo
                                 Illinois - 16th District
       The U.S. House of Representatives is moving closer to resolving a problem facing
the people of Chicago and  its rural collar counties.  The Employer Trip Reduction
requirements of the 1990 Clean Air Act, also known as the Employee Commute Option, has
been under fire from businesses, state and local governments for some time.  The law would
require any employer, including municipal and state governments, school districts, retailers,
health  care facilities, and manufacturers with 100 or more people working in severe or
extreme nonattainment areas to file plans with the states demonstrating a twenty-five percent
decrease in the number of people driving to  work.  This mandate currently affects eleven
states and fourteen metropolitan areas.  For  the past year and a half,  my office has been
working with the EPA on this issue.  However, we have  gone as far  as we  can in pursuit of
an administrative rule change. Now we must pursue a legislative alternative.

       We all want clean air.  There is absolutely no disagreement on that issue.   As part of
the goal to guarantee clean, healthy air for ourselves  and  our children,  we must also keep in
mind that the federal government has a responsibility to apply solutions that work and
eliminate those programs that are ineffective and/or stand to cripple local economic
development.  The Employee Commute Option (ECO) will cost Chicago area  employers
$200 million annually. Unfortunately,  even  if the mandate is  fulfilled to the letter of the
law, air quality improvement would be less than one percent - an improvement Assistant
EPA Administrator for Air and Radiation Mary Nichols has called "minuscule."

       We must realize that ECO mandates have never worked.  In California, where car
pooling mandates have been in place for some time, the South Coast Air Quality

-------
Management District is currently trying to find a way to eliminate their ECO requirements
because they haven't worked.

       There are also many systematic problems with^oar pooling laws.  For example, under
the ECO, a high school student will be able to drive to school wMle perhaps his mother or
father can't drive to work.  A student will be able to drive while his teachers can't.
Nothing about the ECO makes  sense; nor has it been effective.

       So what this leaves us with is a costly, paper-pushing exercise for area employers
who are already meeting trip reduction goals and  an impossible mandate for rural employers
to meet.  In this country, government has a history of passing regulations, albeit with the
best of intentions, and then doing nothing to change them when they are proven to be
ineffectual.

       At the moment, the U.S. House of Representatives is considering legislation that I
have introduced  to truly make employee commuting an option.  My legislation will allow
states to decide if they want car pooling to be part of their  clean air plan. This does not
change the goals or standards of the Clean Air Act, but  would allow states to develop
clean air controls that are bust suited to their circumstances.

       In February,  1994, the results of an ECO  demonstration project was  released by
Chicago Area Transportation Survey (CATS) that showed where good  alternatives to driving
were already in place, like Chicago's extensive public transportation  system, tremendous trip
reduction has already been established.  Out in McHenry County, however,  participants
failed to meet the ECO standards even though they aggressively  pursued van pooling and car
pooling programs.

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       In April, 1995, the EPA held ECO forking group meetings in Washington and
 Chicago.  At these meetings, panelist heard fro'nv/many employers including the Sears and
 the City of Chicago who exemplify the proper way~fcu>ursue trip reductions on a voluntary
 basis.  For employers who have the resources to provide trip reaijclng>ซalternatives and can
 educate their employees as to the benefits of trip reduction, ECO has a practical and positive
 application.  Recently, the State of Illinois introduced a proactive, voluntary program
 (Partners  For Clean Air) designed to educate and assist businesses in finding ways to reduce
 the number of single passenger trips.  This is exactly the type of approach that we should be
 pursuing.

       The Clean Air Act was passed to monitor trends in air quality, primarily around
 large U.S. metropolitan areas. The Employee Commute Option should be a tool used to
 facilitate reaching national air quality goals.  It should not be a club that unfairly mandates
 costly paperwork and places unnecessary hardships on rural employers.  Remember, the
 most successful environmental program in the United States - recycling - has no federal
 mandate.
                                       - END -
       U.S.  Representative Don Manzullo (R-Egan) represents the 16th District of Illinois.
 Congressman Manzullo serves as Chairman of the House Small Business Subcommittee on
Procurement, Exports, and Business Opportunities.  He also serves as Vice Chairman^ of
the House International Relations Subcommittee on International Economic Policy and
 Trade and the Subcommittee on Asia.  Rep.  Manzullo is a member of the Joint Economic
 Committee.

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104TH CONGRESS
   IST SESSION
H. R. 325
To amend the Clean Air Act to provide for an optional provision for the
    reduction of work-related vehicle trips and miles travelled uv ozone non-
    attainment areas designated as severe, and for other purposes.
       IN THE HOUSE OF REPRESENTATIVES^

                      JANUARY 4,1995
Mr. MANZULLO (for himself, Mr. ARCHER, Mr. BARTLETT of Maryland, Mr.
    CRANE, Mr. CUNNINGHAM, Mr. FAWELL, Mr. HASTERT, Mr. HOERSTRA,
    Mr. HUNTER, Mr. HYDE, Mr. KLINK, Mr. KNOLLENBERG, Mr. SAXTON,
    Mr. SMITH of New Jersey, Mr. SMITH of Texas, Mr. WALKER, Mr.
    WELDON of Pennsylvania, Mr. WILSON, and Mr. ROHRABACHER) intro-
    duced the following bill; which was referred to the Committee on  Com-
    merce
                     A  BILL

 To  amend the Clean  Air Act to provide for an optional
     provision for  the reduction of work-related •vehicleltrips
     and miles travelled in ozone nonattainment  areas; des-
     ignated as severe, and for other purposes.

  1      Be it enacted by the Senate and House of Representa-

  2  tives of the United States of America in Congress assembled,

  3  SECTION 1. OPTIONAL EMPLOYER MANDATED TRIP RE-

  4              DUCTION.

  5      Section 182(d)(l)(b) of the Clean Air Act is amended

  6  by to  read as follows:

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                            2
  1           "(B) The State may also, in its discretion, sub-
  2       mit a revision at any time requiring employers in
  3       such area to implement programs to reduce work-re-
  4       lated vehicle trips and miles traveled by employees.
  5       Such revision shall be developed in accordance with
  6       guidance issued by the  Administrator  pursuant to
  7       section  108(f) and may require  that employers in
  8       such area increase average passenger occupancy per
  9      vehicle in commuting trips between  home and the
10      workplace during peak travel periods. The guidance
11       of the Administrator may specify average vehicle oc-
12       cupancy rates which vary for locations within a non-
13       attainment area  (suburban, center city, business dis-
14      trict) or among nonattamment areas reflecting exist-
15      ing occupancy rates and  the availability of high oc-
16      cupancy modes.  The revision may require  employers
17      subject to a vehicle occupancy requirement to submit
18      a compliance plan to demonstrate  compliance  with
19      the requirements of this paragraph.".
                           O
     •HR S2S IH

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Employer Trip Reduction -- Benefit or Burden?
   Constance H. Ruth. Environmental Protection Specialist, National Vehicle & Fuel Emissions
   Laboratory, Office of Mobile Sources, U.S. Environmental Protection Agency;
   C. Kenneth Orski, Founder and President, Urban Mobility Corp.

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CONSTANCE H. RUTH
    Constance H. Ruth is an Environmental Protection Specialist with U.S. EPA's National Vehicle & Fuel
Emissions Laboratory in Ann Arbor, MI. She has been working with EPA since 1990, focusing on the
employee commute  options (ECO) program since its inception. Before joining EPA, she worked at the
University of Michigan. Ms. Ruth has  a BS and MS in natural resources from the School of Natural
Resources & Environment at the University of Michigan.
C. KENNETH ORSKI
    C. Kenneth Orski is Founder and President of the Urban Mobility Corporation,  a Washington, DC-based
consulting firm specializing in transportation management. He heads the Mobility Coalition for Clean Air, an
alliance of employers, business organizations, and transportation-management associations coordinating a
nationwide campaign to seek repeal of the mandatory employee commute  option (ECO) requirement of the
Clean Air Act. In 1993, he was appointed to the South Coast Air Quality  Management  District's Rule ISO I
Task Force that overhauled southern California's ECO regulation. Mr. Orski served  as Associate
Administrator of the Urban Mass Transportation Administration in the Nixon and Ford  Administrations and,
prior to that, as Director of Urban Affairs & Transportation at the Paris-based OECD. He currently serves as a
member of the Maryland DOT Transportation Advisory Committee,  Vice  Chairman  of the Institute of
Transportation Engineers' Travel  Demand Management Council, and a member of the Technical  Council of
the Intelligent Transportation Society  of America. He is a graduate of Harvard College  and Harvard  Law
School.

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               The Employee Commute Options (ECO) Program

What is the Employee Commute Options  (ECO) Program?
       The ECO program is an innovative effort to get large employers (of 100 or more
employees at a single work site) in the areas around the U.S. with the worst air pollution to
find ways to reduce the number of their employees who drive to work alone.

What is the Object of ECO?
       The program's purpose is to reduce solo-driving and promote alternative transportation
modes in order to reduce air pollution. Congress included the program in the Clean Air Act
Amendments of 1990 as a way to improve air quality, mitigate the buildup  of greenhouse
gases, and respond to increasing congestion. The ECO program represents  an important first
step in the long-term role trip reduction can play in addressing these problems.

Why Does  this  Program Focus on Reducing Trips?
       Cars and light trucks are a major source of the pollutants that form ozone, the major
component  of smog.  Smog has proven to be the most intractable urban area air pollution
problem.  In addition, cars emit greenhouse gases and pollutants that are directly hazardous to
human health. Most reductions in vehicle emissions since 1970 have come  from tailpipe
standards that have required auto-makers to produce cleaner vehicles. As new  cars have
replaced older, dirtier models, the average vehicle's tailpipe emissions per mile  have
decreased.  However, growth in the total  number of miles driven is now outpacing these
improvements in emission control technology. The ECO program addresses this trend of ever
increasing vehicles miles travelled.

How Does the Program Work?
       The Clean Air Act requires that States (and Air Districts in California) develop and
implement ECO programs.  These programs must require large employers to develop and
implement a plan that encourages employees to commute to work without driving alone.
Employers can select the appropriate strategies for each worksite to reduce commuting trips
and increase vehicle occupancy.
       Some of the incentives an employer may consider as a means of increasing vehicle
occupancy include: promoting and subsidizing carpooling, vanpooling, transit, walking and
bicycling to work; permitting telecommuting from home and compressed work  weeks;
providing preferential parking for carpools and vanpools; and offering the cash  equivalent of
employer paid parking.

Where is ECO  Required?
       ECO is required in severe and extreme ozone nonattainment areas and serious carbon
monoxide nonattainment areas. Currently, ECO is required in the following areas:
       - Baltimore                             - Chicago
       - Houston/Galveston/Brazoria             - Los Angeles
       - Milwaukee                            - NY/NJ/CT metro area
       - Philadelphia/WilmingtonyTrenton        - Mohave Desert, CA
       - Ventura County, CA
    to. ปป ci \w\Mcm\icwoM.m

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UNITED STATES CODE

             1988 EDITION

            SUPPLEMENT IV

 CONTAINING THE GENERAL AND PERMANENT LAWS OF
    THE UNITED STATES, ENACTED DURING THE
           CONGRESS AND 102ป CONGRESS
      Pnpvtd ud published under authority of Title 2. U.S. Coda. Section 285b,
      by the Office of the Law Berinon Counsel of the Houte of Bapraemuivei
      JANUARY 3, 1989, TO JANUARY 4, 1993


               VOLUME SIX

   TITLE 42—THE PUBLIC HEALTH AND WELFARE

                 ง5 1-9800
               UNITED STATES

           GOVERNMENT FEINTING OFFICE

              WASHINGTON . 1993

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                        TITLE 42-THE PUBLIC HEALTH AND WELFARE
                                                                                         STSlla
      State should ensure adequate access to down-
      town, other commercial, and residential areas
      and should avoid measures  that increase or
      relocate emissions and congestion rattier than
      reduce them.
   r—.BMVithm 2 years after November 15. 1990.
   I   ine  State  shall submit  a  revision requiring
   I   employers  in  such area to  implement  pro-
   I   grams  co  reduce  work-related vehicle trips
   I   and  miles  traveled by employees.  Such revi-
  I   sion shall  be  developed in accordance with
  /   guidance issued by the Administrator  pursu-
  I    ant to section 7408(1) of this title and shall, at
  (    a minimum, require that each employer of
  I    100 or more persons in such area increase  av-
  I   erage passenger  occupancy  per vehicle  in
     commuting trips between home and the work-
     place during peak travel penods by not less
 I   than 25 percent above the average vehicle oc-
 I   cupancy for all such tnps in  the area at  the
 I   tune  the revision  is submitted. The guidance
 I   of the Administrator may specify average ve-
 I   hide occupancy rates  which vary  for loca-
 |   tions within a nonattainment area (suburban.
     renter city,  business district) or among nonat-
     tainment areas reflecting existing occupancy
 I    rates  and the availability of high occupancy
 I    modes. The revision shall provide that each
 I    employer subject to a vehicle occupancy  re-
 I    quirement  shall submit a-  compliance  plan
I    within 2  years  after the date the revision is
|  .submitted which shall convincingly  demon-
    strate compliance  with the  requirements of
    this paragraph not later  than 4  years  after
    such date.

  1  
  of this sectiop (relating to de minimus rule and
  modification 61 sources;,  and the provisions of
  clause (11) of subsection (bXIKA) of this section
  'relating to reductions of less than 15 percent)
  shall not apply in  trie case of an Extreme Area.
  For  any  Extreme  Aป*. the  terms  'major
 source' and "major stationary source" includes
 'in addition to the sources described in section
 7502 of this  title)  any stationan^source  or
 group of sources  located within a contiguous
 area and under common control that emitsXor
 has the potential to emit, at least 10 tons ftr
 year of volatile organic compounds.
  11 >  OfTMl requirement
    For  purposes  of satisfying  the  offset re-
  quirements pursuant to this part, the ratio of
  total emission reductions of VOCs to total in-
  creased emissions of such air  pollutant shall
  be at least 1.5 to 1. except that if the State
  plan requires all existing major sources in the
  nonattauunent area to use best available con-
  trol technology (as  defined in  section 7479(3)
  of this title) for the control of volatile organic
  compounds, the ratio shall be at least 1.2 to 1.
  12) Modification*
   Any  change   of this title, except that for
  purposes  of complying with  the  offset re-
  quirement pursuant to section 7503(a)U) of
  this title, any such increase shall not be con-
  sidered a modification if the owner or opera-
  tor of the source elects to offset the increase
  by a greater reduction in emissions of the air
  pollutant concerned  from other discrete oper-
 ations, units, or activities within the source at
 an internal offset ratio  of at least  1.3 to l.
 The offset requirements of this part shall not
 be applicable in Extreme Areas to a modifica-
 tion  of an existing  source if such modification
 consists of installation of equipment required
 to comply with the applicable implementa-
 tion plan, permit, or this chapter.
 (3) Use of eleu fiichi or advanced control tech-
    nology
  For Extreme Areas, a plan revision shall be
 submitted within 3 yean after  November 15.
 I960, to require, effective 8 yean after No-
 vember IS. 1990. that each new. modified, and
 existing electric utility  and industrial and
 commercial boiler  which emits more than 25
 tons per year of oxides of nitrogen—
    (A) bum as its primary fuel natural gas.
  methanol. or ethanol (or a comparably low
  polluting fuel), or
    (B)  use  advanced  control  technology
  (such  as catalytic control technology  or
  other  comparably  effective control  meth-
  ods) for reduction of  emissions of oxides of
  nitrogen.
• So In omiiui. Fraottty tnwgrGe -pmwnwnf".

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               ECO Status Sheet
    (For the latest status, contact each state or air  district  directly)
                            AREA/
                           DISTRICT
HON&TTAIHKKHT  PROPOSED
                           SIP
                                     LXAD
                                                  PROGRAM
CA
CA
CA
CT
DE
IN
IL
MO
NJ
NY
PA
TX
Wl
Los Angelas
Ventura Co.
S. East Desert
NY/NJ
Philadelphia
Chicago
Chicago
Bait/Phil.
NY/Phil.
NY/NJ
Philadelphia
Houston
Milwaukee
Extreme for Ozone
Serious for CO
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe for Ozone
Severe tor Ozone



Y


Y

Y




Y
•



Y





Y
Y
SCAQMD
VCAPCD
MDAQMD
Conn DOT
Del DOT
IDEM
(DOT
MDE
NJDOT
NY DOT
PADER
TNRCC
WIS DNR
Plan review
1) Plan review or 2)
Performance standard
Plan review
Plan review
Plan review with
performance standard
Plan review
Intended to have seasonal
program with 4/1/95
notification
Plan review with
performance standard
Plan review with
performance standard.
Plan review
Performance standard
Performance standard
Plan review
HOUSESTA.EXL 5/9/95

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                       Employee Commute Options (ECO)
                             Questions and Answers
 What is the Employee Commute Options (ECO) Program?
       - The Clean Air Act requires employers with 100+ employees at a worksite in 9 regions
       of the country to implement programs to reduce solo driving among their employees'.
       The program is sometimes referred to as the Employer Trip Reduction (ETR) Program.
 What is the object of this program?
       - The intent of the provision is to reduce solo driving and promote alternative modes of
       transportation in order to reduce pollutants in the air that affect people's health. The
       provision will help reduce traffic congestion as well.
Why was this provision included in the Clean Air Act?
       - Congress included the ECO provision in the Clean Air Act because even as cars are
       getting cleaner, people are driving more.  As a result, the benefits achieved through
       technological improvements are being undermined by growth in total vehicle miles
       travelled.  Congress felt that there was a need to address how people travel as part of the
       solution to cleaning the air and reducing traffic congestion.
Where is ECO required?
      - ECO is required in severe and extreme ozone nonattainment areas and serious CO
      nonattainment areas.
      • Baltimore                                  • Los Angeles
      • Houston/Galveston/Brazoria                  • Milwaukee
      • NY/NJ/CT metro area                        • Chicago
      • Phila./Wilmington/Trenton                   . Ventura County
      • S.E. Desert Modified AQMA (Mohave)

      11 States are affected:
      • California                • Indiana           • Pennsylvania
      • Connecticut     .         • Maryland         • Texas
      • Delaware                • New Jersey       • Wisconsin
      • Illinois                  • New York
      i42USC7Slla(d)(l)(B)


C:\WP\DATA\QAMARYS.WPDprint: June IS, 1995

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 How many employers and employees are affected by the ECO program?
       - Approximately 25,000 employers

       - Roughly 9 million employees
 What is required of employers?
       - Employers subject to the provision will need to determine their Average Passenger
       Occupancy (APO) by surveying their employees over a week-long period to determine
       how they report to work between 6am and 10am2.

       - In most areas, employers will submit detailed compliance plans for review by the State
       that are designed to meet the target Average Passenger Occupancy (APO) determined by
       the State (or Air District in California). Potential strategies include: promoting and
       subsidizing carpooling, vanpooling, transit, walking and bicycle riding to work; allowing
       for telecommuting from home and compressed work weeks; providing preferential
       parking for carpools & vanpools; guaranteed ride home programs; and parking cash out3.

       - A state may choose to increase the flexibility of its program by adopting a regional
       approach that would allow the state to submit one compliance plan on behalf of all
       employers. In this situation individual employers would not necessarily have to survey
       their employees. It is state regulation that will determine what is required of employers
       in each state. The employer obligation will depend on what the state regulation requires.
       EPA has given States tremendous flexibility and latitude to implement the ECO program
       in a flexible and common sense manner.

What is the target APO?
       - The target Average  Passenger Occupancy (APO) is 25% above the Average Vehicle
       Occupancy (AVO) for the nonattainment area.4 If a nonattainment area is divided into
       zones, then the target is a 25% increase above the AVO for each zone.
       2The APO is determined by dividing the number of employees reporting to the worksite during the
morning commute by the number of vehicles in which they arrive. A carpooler's vehicle count is proportional to the
number of riders in the carpool (1/2,1/3,1/4 etc.) Employees who walk, bicycle, ride transit or telecommute from
home count as arriving in zero vehicles.

       sAn employer offers to provide a cash allowance to an employee equivalent to the parking subsidy that the
employer would otherwise pay to provide the employee with a parking space.

       ซThe baseline AVO is calculated by dividing all commuters in the nonattainment area during the 6-10 am
peak period by the number vehicles in which they commute.
C:\WP\DATA\QAMARYS.WPD print: June IS, 1995

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       - A few States have a larger than 25% increase required of some employers and a less
       than 25% increase required of others such that the overall 25% increase for the
       nonattainment area is met.

       - Most areas have a program that requires employers to submit compliance plans for
       approval that are designed to meet the target APO. An employer that fails to meet the
       target APO should not receive a penalty if the compliance plan was submitted, approved,
       and implemented on schedule.

       - Some areas have adopted a performance standard approach requiring employers to meet
       the target APO.  Areas that have this approach have a good faith effort policy such that
       employers who do not meet the target may demonstrate a good faith effort to reach the
       target and thereby not be penalized for failing to meet the target.
Will an employer already at or above the target APO need to increase any further?
       No, except in Maryland where an upper level cap protects employers with high APOs.
What approaches are States using in their ECO programs?
       EPA Guidance outlined four options that States could use for their ECO programs.  Areas
       adopting the approach are indicated.5

       - The "intensive plan review" approach is based on a plan-by-plan review that ensures
       each plan will "convincingly demonstrate" that the target will be met. (Ventura County,
       L.A., WI, IL, IN, NY, CT, DE, MD)

       - The "set of minimum measures" approach lays out a set of strategies required for
       employers. (No states opted for this approach.)

       - The contingency plan approach requires each employer that fails to meet the target to
       implement a stringent set of strategies. (No states opted for this approach.)

       - The performance standard approach requires employers to meet the target APO or be
       subject to penalties. The areas adopting this approach have a good faith effort policy.
       (TX, NJ, PA, DE, MD, & Ventura County)
       sin some areas employers may choose between two approaches.


C:\WP\DATA\QAMARYS.WPD print: June 1S, 1995          3

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 When will employers begin the program?
       - Many of the states have already received or will begin to receive compliance plans from
       employers during 1995. Some will begin implementation later. Contact each state
       directly for its implementation schedule.
 What is the status of the ECO program?
       - Over 16,000 employer plans have been submitted.

       - All 13 ECO State Implementation Plans (SIPS) due to EPA have been submitted and
       found complete by EPA.

       - EPA has approved 4 SIPs. (IN, TX, WI, and the Greater Los Angeles area) Three
       proposals to approve SIPs have been made by EPA. (CT, IL, & NJ) .

       - Some states have suspended their programs for a time. These include IL, PA, MD and
       TX.) By working together with states in a problem-solving mode, EPA is optimistic that
       the issues that have led to controversy in some areas can be resolved through a
       constructive dialogue.
What agencies are implementing this program?
       - 9 State Air agencies (or Air Districts in California) (Ventura, L.A., Southeast Desert,
       TX,WI,IN,MD&PA)

       - 5 State DOTs (IL, NJ, CT, NY & DE)
What will be the impact of the ECO program on employees?
       - Employees will be provided options by employers such as subsidies for transit (where it
       is available); ride-matching services for carpooling; opportunities to telecommute or to
       work a compressed work week; guaranteed rides home in the case of emergency,
       preferential parking for carpools and vanpools and cash as an option in the place of
       parking provided by the employer as a benefit.  Employees may elect to participate or not
       participate in any program offered by employers.
What is the best way to know what is happening in each State or area regarding ECO?
       - Officials in each State or Air District should be contacted directly to obtain the latest
       information regarding the ECO program.
C:\WP\DATA\QAMMIYS.NPD print- June IS, 1995

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               The Employee Commute Options (ECO) Program in Practice

 ECO - Part of a national effort to clean the air

       The Clean Air Act calls on many industries and sectors of society to contribute to cleaning
 the air across America. As a result of these contributions, the United States is making progress
 toward the fundamental goal of the Act - clean and healthy air for all Americans.

       One of the main reasons for continuing urban air pollution problems is a rapid increase in
 the number of miles being traveled by cars and light trucks. These increases threaten to overwhelm
 progress toward clean air that is occurring as older, dirtier vehicles are replaced by newer, cleaner
 ones.

       As an important first step toward slowing the increase in miles driven, Congress created the
 Employee Commute Options (ECO) program in the Clean Air Act Amendments of 1990. In the
 metropolitan areas with the worst ozone or carbon monoxide pollution, large employers are required
 to implement programs that encourage their employees to commute by methods other than driving
 alone. Requirements apply only to employers that have 100 or more employees at a work site.

       Currently, nine metropolitan areas are affected:

       Baltimore   "                                    •     Los Angeles
       Houston/Galveston/Brazoria                       •     NY/NJ/CT metro area
       Milwaukee                                      •     Ventura County, CA
       Philadelphia/Wilmington/Trenton                  •     Chicago
       Mohave Desert, CA

       Employer programs must be designed to achieve a target ridership level.  Generally, plans
 must be designed to increase the average number of riders in vehicles driven to work by 25% over
 the average for their area prior to ECO.  Employers are free to use any trip reduction incentives they
 choose, and to tailor those incentives to their particular work site. Examples of incentives include
 compressed work schedules, the option of cash rather than a free parking space, transit pass
 subsidies, ride-matching services for carpooling, and guaranteed rides home for carpoolers in case
 of emergency.

       As part of its Climate Change Action Plan, the Clinton Administration is promoting
 "parking cash-out" legislation that would eliminate the need for employers to pay taxes on cash
provided to employees in place of employer-paid parking. Some employers may find that this
 strategy - offering employees the option of cash rather than a free parking space ~ would allow
 them to meet their ECO requirements with little if any additional expense.

 ECO - Reducing air pollution and traffic congestion

       The ECO program will:

 •     Reduce traffic congestion.  Traffic congestion wastes time that commuters could spend on
       the job or with their families, and decreases worker productivity by  increasing their levels of

 C \WFVPACKEI\EOOJFG WFD Miy 9.1999

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       stress and fatigue.

•     Cut motor vehicle emissions, reducing health threats from smog and carbon monoxide.
       Ozone can cause reduced lung function and other respiratory problems and may lead to
       chronic lung diseases. Low levels of carbon monoxide can aggravate angina pectoris, a
       cardiovascular disease, and may hinder prenatal mental and physical development.

•     Cut emissions of greenhouse gases that contribute to global warming.

•     Promote use of public transit and provide incentives for employers and transportation
       agencies to work together on regional solutions to transportation problems.
ECO is being implemented

       The states are actively implementing the program.  All thirteen of the required ECO
regulations are in place. (Some of the nine metropolitan areas subject to ECO are in more than one
political jurisdiction.) In most areas, employers either submitted plans in 1994 or will submit them
in 1995. Many employers already are implementing their ECO plans.

ECO is flexible

       EPA is committed to flexible implementation of the ECO program. The Agency has worked
closely with state and local air and transportation officials to fashion the program with mat principle
in mind. As a result, state and local agencies have substantial discretion to design and implement
their ECO programs, and employers have many options for achieving ECO's goals. For example:

•      States can set differing ridership targets for employers in different parts of a nonattainment
       area - for example, downtown and suburban areas. New York, Pennsylvania, and Texas
       have taken advantage of this flexibility.

•      States can allow employers to reach ECO ridership targets by averaging among different
       work sites, or by obtaining credits from other employers who achieve greater-than-required
       trip reductions.

•      State ECO programs can protect employers from receiving penalties if they fail to meet trip
       reduction goals when a good-faith effort has been demonstrated.  Employers who fail to
       meet the ridership goal may be required to  take additional steps to encourage alternatives to
       solo driving.

•      States may allow credit for employees arriving in clean-fuel vehicles.

Recently, EPA has adopted other policies that add  to the program's flexibility. For example:

•      A state may establish a regional trip-reduction program as a means of meeting the ECO
       requirement. A state may demonstrate that the regional program would produce trip
       reductions equivalent to those from a successful ECO program, and employers would not be

C \WP\PAdOBneCOSPO WTO M^9,1995                      *

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       required to submit individual plans.  An example of such a program would be parking cash-
       out on a regional level. At little or no additional cost to employers, employees would be
       offered the option of cash rather than employer-paid parking.

•     States may approve employer plans that include subsidies to employees ป for example,
       subsidies for transit or ridesharing - that are applied"only during the season of high
       pollution levels. As a result, employers may focus a significant portion of their ECO
       resources on the time of year when air pollution levels most warrant trip reduction efforts.

•     States may allow employers credit for reducing delivery and other work-related trips during
       the peak commuting period.

•     States may allow credit for employees who travel to a satellite work center rather than a
       main worksite located farther from home.

•     States may accept credit for children dropped off at daycare. For example, an employee
       who drops two children off at daycare en route to a worksite will be counted as arriving in
       1/3 of a vehicle.

Commute option incentives - Working for employers

       Some employers are implementing trip reduction strategies solely because it makes good
business sense. For example:

•     A large oil company in Houston for a decade has used commute options incentives as a way
       to recruit and retain employees. The company has succeeded in getting 87 percent of its
       1,500 employees to find alternatives to solo driving. The company provides transportation
       subsidies and parking-cost reductions for carpoolers.

•     In Atlantic County, NJ, one employer investigated telecommuting as a means of meeting
       ECO requirements. The company subsequently found it was not subject to ECO
       requirements, but decided to implement telecommuting anyway for business reasons.

       Commute options incentives sometimes offer the opportunity for firms to save money. For
example, a California employer was able to avoid building a $1 million parking garage by
implementing trip reduction measures instead.

Commute option incentives - Working for employees

       ECO can benefit employees by providing them with new commute options and incentives.
Many of these incentives — such as compressed work weeks, transit pass subsidies, or parking cost
reductions for carpoolers — constitute benefits to employees. ECO will encourage some employers
to offer employees greater flexibility in their work schedules.

       Employees remain free to accept or reject these incentives. There is nothing in the Clean
Air Act that would force an employee to change commuting habits.
C\WPVACXET\ECOiK}.Wn> MiyJ.1995

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       ECO commuting options will give some workers - especially-those in multi-car families -
the choice of selling a car used primarily for commuting.  The result could be a savings of up to
$6,000 a year in auto ownership and operating costs.

       Commuting options also can help workers reconcile the demands of work and family.
Connecticut officials report that many employers are exploring telecommuting and compressed
work-week programs to solve work/family challenges and commuting problems.

Employer-based programs - ECO works for employers

       The following examples of employer trip reduction programs are cited by a contractor study
for the Federal Highway Administration1:

•     At GEICO headquarters in Friendship Heights, Md., 20 percent of employees rideshgre, 31
       percent use transit, and only 40 percent drive alone.  The site is a few blocks from a regional
       subway station.  GEICO's travel demand management plan included restricted on-sitf
       parking (1,020 spaces for 2,500 employees) and parking fees ($10 or $60) for off-site;
       parking. The plan also included free parking and reserved spaces for carpools and vanpools,
       a subsidized vanpool program, and transit subsidies.

•     The Ventura County Government Center in California, which has 2,700 employees at its
       suburban headquarters site, achieved a 13 percent decrease in vehicle trips in a five-month
       period. The site is not well served by public transit and abundant free parking is available.
       In response to a local air quality regulation, the county offered a cash incentive to employees
       based on the number of days they do not drive alone to work annually.  Employees receive
       $300 annually if they use alternatives to solo driving an average of three days per week,
       $200 if they average two days per week. To support the program,  the county offers a
       guaranteed ride home program, preferential parking, and bike-walk facilities.

•     At Bellevue City Hall in Bellevue, Wash., transit service at the site is limited, making access
       dependent upon private vehicles. Yet nearly 50 percent of the employees use carpools,
       vanpools, transit, or other alternatives to solo driving. This represents 25 percent fewer
       vehicle trips than other sites in the region.  The city's plan includes a $30-per-month parking
       charge. Free, priority parking is available to employees who carpool or vanpool at least 60
       percent of the time.  Employees who use commute alternatives at least 80 percent of the v
       time receive a subsidy of $15 to $25 per month. Because parking fees are used to subsidize
       alternative modes, the net cost of the program to the city is zero.

ECO - Promoting public-private solutions to transportation problems

       In die Chicago suburbs, a transportation management association, made up of local
employers, has worked jointly with local government to promote ridesharing for employees and the
public at large. Computer kiosks for ride-matching were installed at little cost to participating
        "A Gukfance Manual for In^feniai^ Effects Eo^^        Demand Management Programs.", NwemBBrJ993, Federal Highway
Administration number DOT-T-94-05.


CWWACKEnECOJKXWrD Mqrป. 199J                       4

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employers using federal highway funds allocated to^congestion mitigation and air quality
improvement projects. Within a few months, seven vanpools and 28 carpools have been
established, enabling participating employees to save thousands of dollars. The ECO program was a
significant impetus for this effort.
c\wp\pA(XEneoasro wn> M* 9, IMS

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                                    Update on the
                      Employee Commute Options (ECO) Program

       On March 15,1995, Assistant Administrator Mary Nichols asked the Clean Air Act
Advisory Committee (CAAAC) to form a working group to explore ways that EPA could
provide additional flexibility to states implementing Employee Commute Options (ECO)
programs and to recommend a range of model ECO programs that could be adapted to local
areas. The CAAAC was established in accordance with the Federal Advisory Committee Act
(FACA) in 1990 to advise EPA on implementation of the Clean Air Act.

       The ECO Flexibilities Work Group met in person on two occasions, once in Washington,
DC, and once in Chicago, and once via a conference call. One-half of the Chicago meeting was
dedicated to hearing from major employers and from states or regions subject to the program.
Based on these discussions, the Work Group released a draft report of its recommendations for
flexibility, along with several concept papers describing alternative ECO program options, on
April 26,1995.

       After discussing the Work Group's draft report at its meeting on June 1, the CAAAG's
Subcommittee on Linking Energy, Transportation and Air Quality passed on to the full
Committee a resolution containing its recommendations from the report. The full Committee
adopted that resolution on June 2 and submitted it to EPA. The CAAAC's five recommendations
are attached.

       EPA is evaluating the CAAAC's recommendations, and is preparing a response thatHve
hope to release soon.  We expect to be able to offer states and employers additional flexibilities
as a result of the Committee's work.

       We believe that these new flexibilities, combined with those we have already identified,
will provide a wide range of options that will address the concerns raised about ECO and ease its
implementation.  Regional programs, for example, allow states to replace individual employer
requirements with regional approaches, such that employers are relieved of any potential
liability. We believe that this option and the other flexibilities that are available will enable
states to implement their ECO programs smoothly within the requirements of the Act.

       As the only specifically required measure to address the growth in  automobile travel,
which threatens to overwhelm the emission reductions this country is achieving through cleaner
vehicles and fuels, the ECO program is an important first step in bringing attention to this
growing source of emissions and in building an infrastructure for efforts that will be useful for
achieving and maintaining air quality over the long-term.

       EPA continues to be committed to seeking flexibilities in the ECO program in
cooperation with states. As a result of the Clean Air Act Advisory Committee's work, we believe
that we will be even better able to identify ways that we can more effectively assist states in •
crafting ECO programs that respond to their local situations, minimize the burdens, on both states
and employers, and set the foundation for trip reduction efforts that will continue to provide
benefits for air quality into the future.
C:\WP\DATA\MBLESRCE.WPD June 14,  1995

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08/05/85  MON 14:31 FAI 20228090S5         >AR I 0
                Adopted  by the full Clean  Air  Act Advisory Committee
                       on June 2, 1995 and  Submitted to EPA

                     RESOLUTION  OF  THE SUBCOMMITTEE
              r.TNKINO EHEROY. TRANSPORTATION AKD AIR QUALITY


         This Subcommittee  recommends  adoption of the  following  five
    recommendations  from the  Report of  the ECO  Flexibilities  Work
    Group, dated April 26,  1995.

         1.   State  or Regional Plans.   Allow states  or regions  to
              assume some or all  of an employer's responsibility under
              the ECO program by implementing a state or regional  trip
              reduction  program.

         2.   Emissions  gauivalance.  Allow  employers  to substitute
              equivalent emissions  reductions in lieu of submitting a
              plan to  increase vehicle ridership.

         3.   Good Faith Efforts.    Retain  the  ability  of individual
              states to  define  and recognize good faith efforts  as, a
              measure  of compliance with  the program,

         4.   cr^it for AH  Trip  Reductions.   Allow full credit for
              the reduction of any  trips,  whether work-related or not,
              and for the parti nipatio* nf any group including driving-
              age students.

         5.   Seasonal Plans.  Allow states, regions,  or employers to
              implement  seasonal plans.

         Further,  we  state that   EPA  has  the authority  under  thซ
    existing Clean Air Act  to implement these  recommendations.
                                         2022609055         06-05-95 02:29PM  P002 ป13
R-96X

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        Bulletin Board Access to the ECO Flexibilities Work Group Draft Report

       The draft report of the ECO Flexibilities Working Group is available through the USEPA
Office of Air Quality Standards and Technology Transfer Network (TTN) in North Carolina.
First time users need to follow an initial registration process. If you need help with using the
TTN you can have voice contact with the TTN at (919) 541-5384.  The modem access number
is: (919) 541-5742.  The six steps in the access path are:

1) Gateway to TTN Technical Areas   4)<8> Transportation Rulemaking Areas
2) OMS - Mobile Source information  5)File area #3... Employee Commute Options
3) Rulemaking & Reporting         6)FLEXREPT.ZIP
       On March 15,1995, EPA Assistant Administrator Mary Nichols asked a work group of
the Clean Air Act Advisory Committee (CAAAC) to examine program design options available
to states under current law for the Employee Commute Options (ECO) program as indicated by
the Clean Air Act. The CAAAC was established hi accordance with the Federal Advisory
Committee Act (FACA) in 1990 to advise EPA on implementation of the Clean Air Act.
Specifically, Assistant Administrator Nichols asked that the ECO Flexibilities Work Group
review the flexibility EPA has currently provided to states and employers implementing ECO
and to recommend any additional flexibility that can be granted under existing law.  The Work
Group's draft report addresses the concerns of employers and the states regarding the program,
what EPA policy currently provides and a discussion of recommendations.

       The Work Group draft report does not represent a final recommendation of the Clean Air
Act Advisory Committee or its Subcommittee on Linking Transportation, Energy and Air
Quality (the "Subcommittee"). In accordance with FACA requirements, the Work Group report
will be forwarded to the Subcommittee at its next publicly noticed meeting on June 1,1995. If
the Subcommittee approves the report, it will forward it to the full Clean Air Act Advisory
Committee for consideration at its next publicly noticed meeting on June 2,1995. At that time
the Committee will decide whether to endorse the report and submit it to EPA for formal
consideration. The draft report does not constitute EPA policy.

       The Work Group members were drawn from the CAAAC Subcommittee Linking
Transportation, Energy  and Air Quality and others who represent a broad range of interests
including employers, state and local government, transportation planners and environmental
interest groups. The Work Group met in person on two occasions, once in Washington, DC, and
once in Chicago and held one conference call.  One-half of the Chicago meeting was dedicated to
hearing informal testimony from major employers and from states or regions subject to ECO.
June 15. 199SC.\HP\DATA\BBSBLORB.3origin4/21/>5

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                                    State and EPA Contacts for ECO Programs
| Agency/Contact
Phone Fax
U.S. EPA Office of Mobile Sources
Natalie Dobie

California
U.S. EPA Region IX
Debbie Schecter
313/741-7812 668-4531



415/744-1227 744-1076
CA Air Resources Board
Elizabeth Miller

Los Angeles - South
SCAQMD
Laki Tisopulos

Southeast Desert
MDAQMD
Cynthia Specht

Ventura County
VCAPCD
Pam Couch

Connecticut
U.S. EPA Region 1
Damien Houlihan
CTDOT
Dennis Jolly
Michael Sanders



916/445-6243 322-3646

Coast Air Basin

909/396-3123 396-3306



619/245-1661 245-2022



805/645-1423 645-1444



617/565-3266 565-4939

203/594-2844 594-3445
203/594-2830 594-3445



Agency /Contact
Delaware
U.S. EPA Region III
Larry Budney
DelDOT
Elizabeth Sprout

Illinois
U.S. EPA Region V
Jessica Radolf
IDOT
Susan Stitt

Indiana
U.S. EPA Region V
Jessica Radolf
IDEM
Michael Worrell

Maryland
U.S. EPA Region III
Paul Wentworth
MDE
Mary Jane Rutowski

New Jersey
U.S. EPA Region II
Jeff Butensky
NJDOT
Moreen Cardinal!
Judith Parrish
Phone


215/597-7661

302/577-6620



312/886-3198

217/782-2863



312/886-3198

317/232-8218



215/597-7661

410/631-3270



212/637-4227

609/292-9780
609/292-9750
Fax


580-201 1

577-6624



886-5824

785-0468



886-5824

233-5967



580-201 1

631-3202



637-3958

292-4599
292-4599
Agency/Contact
New York
U.S. EPA Region II
Linda Kareff
NY DOT
Robert Ancar

Pennsylvania
U.S. EPA Region III
Larry Budney
PADER
J. Wick Havens, Jr.

Texas
U.S. EPA Region VI
Hal Brown
TNRCC
Hazel Barbour
John Gillen

Wisconsin
U.S. EPA Region V
John Mooney
W/S DNR
John Duffe
Dale Darrow





Phone


212/637-3352

518/457-2064



215/597-7661

717/787-4310



214/655-7248

512/239-1440
713/666-4964



312/886-6043

608/267-0806
414/263-8659





Fax


637-4249

457-7960



580-2011

772-2303



665-7263

239-2050
666-4978



886-0617

267-0560
263-8716





CONTACT XLS 5/11/95

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   Mobility Coalition  for  Clean  Air
 FOR IMMEDIATE RELEASE                                             APRIL 21, 1995
 CONTACT: KENNETH ORSKI, 202/775-0311
                      Coalition Hails Recommendations
                           of an EPA Working Group
           To Allow Further Flexibilities in  ECO Implementation

      WASHINGTON, DC -- The Mobility Coalition for Clean Air today hailed the recommendations
 of a working group of EPA's Clean Air Act Advisory Committee to allow further flexibilities in the
 implementation of the employee trip reduction (also known as Employee Commute Options or ECO)
 provision of the Clean Air Act. The group, known as the "ECO Flexibilities Working Group," was
 convened at the request of EPA Assistant Administrator Mary Nichols to evaluate the current
 operation of the  ECO program, to identify any additional flexibilities that can be granted under
 existing law, and to recommend whether and how the statute should be amended.

      "We commend the Working Group and its co-chairs, Bob Wyman and Cecilia Estolano,  for
 reaching a consensus on a set of significant conclusions," said the Coalition's spokesman,
 C. Kenneth Orski. "The Group's  recommendations respond to many of the Coalition's earlier
 demands, and go a long way toward relieving the concerns of our members. We hope that the full
 Advisory Comittee will endorse the Group's report and that the EPA will proceed to implement
 them promptly. However, we still believe that a legislative change making ECO voluntary is needed
 to remove any potential threats of court challenges and employer liability, and we shall continue to
 press for Congressional action."

     The ECO Working Group has recommended that EPA should revise its policy and expressly
 allow states to demonstrate "equivalent efforts of performance" measured by vehicle emissions.
 This approach, long advocated by the Coalition and recently adopted by Southern California's
 South Coast Air Quality Management District in its overhaul of Rule 1501 (Regulation XV), would
 allow employers to substitute alternative emissions reductions measures for the currently required
 trip reduction programs. Among such measures -  all of which are thought to be more cost-
 effective and less burdensome than ECO programs - are fleet conversion to clean fuels, use  of
 remote sensing to identify and repair gross polluting vehicles, and scrappage of older, high-polluting
 cars. In a significant departure from EPA's charge to the Group not to consider legislative changes,
the report recommends that "an amendment that clarified EPA's authority to approve equivalent
state programs, based either on trip or emissions equivalency, would be desirable." The report
notes that, while an amendment  is probably not absolutely necessary, "it is always preferable for
Congress to articulate its intention when EPA is faced with a circumstance demanding such an
                 1133 15th Street • Suite 1200 • Washington DC 20005
                         202/775-0311 • Fax: 202/775-4867

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 expansive reading of a statutory provision." Earlier EP& directives warned California and Texas
 officials that any proposals involving equivalent emissions reductions measures, such as vehicle
 scrappage programs, would be unacceptable under current la"wr

      The Working Group also has recommended that states be allowed to take over employers'
 responsibilities under ECO by implementing regional trip reduction programs. While states would
 still have to "convincingly demonstrate" the required trip or equivalent emissions reductions, they
 could receive credit for the reduction of any trips, whether work-related or not. and arising from
 continuous as well as seasonal and episodic programs. Regionwide trip reduction programs in lieu
 of worksite-based programs are already being contemplated by Texas and Maryland.

      The report states that the Group was divided on the question of whether it should recom-
 mend a statutory change to make ECO  programs voluntary.  In support of a voluntary program,  the
 report notes, some members cited long standing efforts by the business community to promote
 commute options and reduce traffic congestion on a voluntary basis.
     The Mobility Coalition for Clean Air, an alliance of employers, business organizations and
transportation management associations in non-attainment areas, is coordinating a nationwide
campaign to make the employee trip reduction programs voluntary. The Coalition is working closely
with the  National Association of Manufacturers, the Highway Users Federation and other groups
dedicated to regulatory reform, continued mobility and freedom of choice in transportation.

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                    Employee Commute Options (ECO) Requirement
 1.    Even if fully implemented, the ECO requirement will only yield insignificant emission reduction
      benefits. According to an independent study by the Institute of Transportation Engineers,
      ECO programs will result at most in a one to two percent reduction in mobile source
      emissions. This conclusion has been confirmed by a Joint DOT/EPA Report to Congress,
      Clean Air Through  Transportation (August 1993). EPA Assistant Administrator Mary Nichols,
      herself has admitted that emissions reductions from ECO programs would be "miniscule."

 2.    The cost of achieving these modest reductions promises to be extremely high. The U.S.
      Environmental Protection Agency has estimated the cost of implementing the ECO program at
      $1.2 to $1.4  billion annually. Data from Southern California, where a similar requirement has
      been in effect since 1988, indicates annual implementation costs of over $ 100 per employee
      and $3,000 per each vehicle taken off the road. (Ernst & Young, Regulation  XV Cost Survey.
      November 1992). This does not include the unfunded costs incurred by states in adminis-
      tering and enforcing the  regulation.

 3.    Southern California's experience with employee trip reduction regulations has been widely
      acknowledged to be a failure. Despite an agressively promoted employee trip reduction
      program promulgated by Regulation XV, now in its seventh year of operation, the vehicle
      occupancy ratio has increased only marginally — from 1.13 to 1.31 persons per car — and
      there are more Angelenos driving to work alone now than there were two years ago: the
      drive-alone  rate has increased from 77.2% in 1992 to 80.6%  in 1994.

 4.    The goal of a  uniform 25 percent increase in average vehicle occupancy bears no relation to
      the air quality attainment objectives of the Clean Air Act. A single national target requires
      every affected non-attainment area to make the same effort regardless of actual air quality
      conditions and regardless of past efforts to promote transit usage and ridesharing. What is
      more, only 10-15 percent of cars on the road are serious polluters. To penalize all commuters
      for pollution caused only by a small fraction of  vehicles is to practice a one-size-fits-all
      approach to regulation that even the  EPA has condemned as inappropriate.

 5.    Driving restrictions are only one of many potential approaches  to reducing mobile source
      emissions. Other methods include conversion of company fleets to clean fuel, detecting and
      repairing high emitters, and the so-called  "cash-for-clunkers" programs that offer incentives
      to scrap older, highly polluting cars. The choice of control strategies should be influenced by
      criteria of cost and effectiveness — not by a misguided desire  to reduce automobile depen-
      dency or modify commuters'  driving behavior.

6.    At the very least, states should have the option to enforce trip reduction requirements  on an
      episodic basis. Continuous driving restrictions are a regulatory  overkill  — they are not needed
      to meet the attainment goals of the Clean Air Act. Even during the summer months, most
      non-attainment areas register only a few isolated episodes of pollution exceedances, which
      could be prevented through emergency driving restrictions during "ozone alerts." Occasional
      restrictions  would not require fundamental changes in commuting habits and  thus would be
      more likely to elicit public cooperation.

7.    Opposition to  the ECO requirement is widespread. Seven of the ten states with affected  non-
      attainment jurisdictions have  suspended their ECO programs, calling them "a  costly federal
      mandate that, by the federal government's own admission, produces little environmental
      benefit."  The business community in the affected jurisdictions is unanimous  in its opposition.
      Both houses of Congress have approved a rider to the FY 1995 rescissions bill that denies
      funds to the EPA to "impose or enforce" the ECO requirements.

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                       INNOVATION   BRIEFS
                  Urban    Mobility    Corporation
 Volume 6, Number 3
Clean Air Act Implementation
June 1995
               Transportation and the Changing Political Landscape III

The aftershocks of the political realignment in Congress and state capitals continue to reverberate
across the transportation sector.  INNOVATION BRIEFS continues  its coverage  of the  changing
transportation/clean air scene with a report covering events since March 1995. This Brief draws
in part on interviews with  Congressional staff, senior federal and state agency officials and
executives of trade associations and interest groups.
                                DOT Reorganization Proposal
                         States Proclaim ECO Program "Inoperative"
                         EPA Shows Further Signs of Accommodation
                            Plans for "Corrections Days" Advance
                      "New Partners" Initiative Suffers a Further Setback
                   Three States Seek Alternatives to Current ETR Programs
                           In Other Congressional Developments...
                    DOT's Reorganization Proposal Submitted to Congress
On April 6, Transportation Secretary Frederico Pena un-
veiled a legislative proposal to restructure US DOT's
organization and programs. As previously reported (see,
"Transportation and the Changing  Political Landscape
II," Innovation Briefs, April 1995) the proposal would
consolidate eight operating modal administrations into a
single Intermodal Transportation  Administration. The
Federal Aviation Administration and  the Coast Guard
would retain their current autonomy. The reorganization
proposal confirms the Administration's previously an-
nounced intention to merge 30 existing grant programs
into three, and to finance all surface transportation and
maritime programs out of a Surface Transportation Ac-
count funded with Highway Trust Fund revenues. Many
issues, notably distribution formulas for funding, are yet
to be decided.

Consolidation proposals eliminating modal baronies
have been made as far back as the early 1970s when
               William T. Coleman, President Ford's Transportation
               Secretary first proposed merging DOT's modal adminis-
               trations and creating a single Surface Transportation
               Administration. These proposals inevitably have met
               with polite indifference from Congressional committees
               and interest groups, bent on preserving their respective
               spheres of influence. This time around, the outcome is
               even more uncertain because of the Administration's
               related proposal to finance all surface transportation
               programs — including some not currently eligible to
               receive highway funds—out of the Highway Trust Fund.
               That is something that Rep. BudShuster, chairman of the
               House Transportation and Infrastructure Committee, has
               already vowed he will not allow, "over his dead body."
               Establishing a  single surface transportation admin-
               istration while maintaining separately funded modal pro-
               grams, each subject to different rules and eligibility crite-
               ria, would go only part way toward the goal espoused by the
               Administration — that of creating  a truly "seamless"
               multi-modal surface transportation system.
                                Innovation Briefs are published by
                               URBAN MOBILITY CORPORATION
                                    C Kenneth Orski, Editor
                   1133 Fifteenth Street, NW • Suite 1200 • Washington, DC  20005
                      Tel. 202/775-0311 • Fax: 202/775-4867 • ISSN 1071-393X

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                            States Proclaim ECO Program "Inoperative"
Responding to growing pressures  from  the public and
facing mounting signs of Congressional restiveness (see
below), seven of the ten states with affected non-attain-
ment jurisdictions have suspended  their employee trip
reduction (also known as employee commute options, or
ECO) programs. The seven jurisdictions are:

•   Illinois, where Governor Jim Edgar has announced
that he was suspending implementation of the  ECO pro-
gram, calling it "a costly federal mandate that, by the
federal government's own admission,  produces  little
environmental  benefit." In a related  development, the
Illinois EPA has just launched a voluntary program to
reduce polluting activities  on summer days when  high
ozone levels are forecast (see below).

•   Pennsylvania, where  Governor Tom Ridge, acting
pursuant to a mandate of the state legislature, has likewise
suspended the implementation  and enforcement of the
ECO program "until further notice."

•   New Jersey, whose Department of Transportation has
announced that it  was disbanding the Enforcement and
Compliance Unit of its Employer Trip Reduction Program
and shifting  its emphasis  to  cooperation and  voluntary
compliance.

•   Texas, whose legislature has voted to suspend imple-
mentation of the ETR program for 180 days in order to
give the  Natural  Resources  Conservation Commission
(TNRCC) a chance to revise the current program into one
that encourages voluntary employer  participation (see
below).

•   California, where the Board of the South Coast Air
Quality Management District approved sweeping changes
in its Rule 1501 (Regulation  XV) to allow employers to
substitute emission reduction  measures for the  traditional
trip reduction programs. The Board's 9-1 vote culminated
a 15-month process that began when the Board created a
task force of business and community leaders to find ways
to revamp the widely unpopular requirement.

•   Maryland, where a proposal to suspend the ECO
program and substitute a voluntary  regional commute
assistance program  is under active  consideration (see
below).

•   Delaware, whose Department of Transportation has
convened a working group of state and county officials,
transportation  management  association representatives
and chambers of commerce  to  identify areas  where
"flexibility should be exercised."

    This does not mean that states are openly defying the
law. Rather, they are putting SCO's implementation on
hold, hoping that the cumulative effect of a public outcry,
Congressional pressure, lack of support from  main'
stream environmental organizations, and EPA's own
growing self-doubts about the policy and its political fall-
out, will lead to ECO's modification — either through
administrative or Congresional action. In the meantime,
states are shifting emphasis to voluntary compliance. As
one senior state environmental agency official put it to
us, "let's face it, mandating behavior when it comes to
personal auto use isn 't good politics... I know ofnoone in
my agency who still believes it is worth fighting for."

... as Congress Strips EPA Budget of Funds to Imple-
ment ECO

In the meantime, both the House and Senate versions of the
Fiscal Year 1995 rescissions bill include a rider denying
funds to the EPA to "impose or enforce" employee trip
reduction  requirements.

The Congressional prohibition applies only to the cur-
rent fiscal year, ending September 30,1995, and hence
its practical effect is negligible. However, the action,
even though largely symbolic, sends a clear message that
Congress has the votes to overturn the ECO mandate.
                            EPA Shows Further Signs of Accommodation
Faced with  mounting Congressional pressure and with
evidence of a massive disaffection — and defection —
among  state officials, the Environmental Protection
Agency is showing further signs of accommodation.  A
special working group of EPA's Clean Air Act Advisory
Committee,  convened at the request of Assistant Admin-
istrator Mary Nichols, has concluded that there is, indeed,
a need for further flexibilities in the implementation of the
ECO requirement. On April 21, the Group has submitted
a set of recommendations to EPA, following a day-long
meeting in  Chicago  on April 11.  The working  group
reached a consensus on two major recommendations:

 1.   "Equivalent Emissions Reductions"  Programs.
EPA should revise its policy and expressly allow states to
demonstrate "equivalent efforts of performance"  mea-
sured by reductions in vehicle emissions. This approach,
recently adopted by Southern California's South Coast Air
Quality Management District in its overhaul of Rule 1501
(Regulation XV), would allow employers to substitute
emissions reductions measures for the currently required
trip reduction programs. The most widely mentioned such
measures — considered to be less costly and  more effec-
tive than ECO programs — are fleet conversion to clean
fuels, use of remote sensing to identify and  repair gross
emitters, and  scrappage of older,  high-polluting cars.
"These efforts will advance air  quality  objectives  and
deserve active EPA encouragement and approval," says
the Working Group's report.

2.  State-Administered Regionwide Programs.  States
should be allowed to take over employers' responsibilities
under ECO by implementing regional trip reduction pro-
grams. While states would still  have to  "convincingly

-------
demonstrate" the required  trip or equivalent emissions
reductions, they could receive credit for the reduction of
any trips, whether work-related or not, and arising from
continuous as well as seasonal and episodic programs (the
latter as a supplement to a basic  program). Regionwide
trip reduction programs that will rely on voluntary rather
than mandatory employer participation are actively being
considered by Texas and Maryland (see below).

In a  significant departure from  EPA's  charge not  to
consider legislative changes, the Working Group's report
recommends that "an amendment that clarified EPA's
authority to approve equivalent stale programs... would be
desirable." The report notes that, while an amendment is
probably not absolutely necessary, "it is always preferable
for Congress to articulate its intention when EPA is faced
with a circumstance demanding such an expansive reading
of a statutory provision." Earlier EPA directives warned
California and Texas officials that any proposals involv-
ing equivalent  emissions reductions measures, such  as
 vehicle scrappage programs, do not meet the stated objec-
 tives of the ECO program of reducing vehicle trips and
 thus are unacceptable under current law. It remains to be
 seen whether EPA will accept the Group's recommenda-
 tion and seek a clarifying amendment to the Clean Air Act,
 or decide to re-interpret the current law as permitting such
 programs.

 And what about making ECO programs voluntary, as
 proposed in bills now pending in Congress? Members of
 the Working  Group were divided on  the question of
 whether they should recommend a statutory change to
 that effect. However, that option is still open to EPA
 leadership, which may well conclude, along with state
 officials, that ECO is no longer "worth fighting for."
 That would eliminate once and for all an issue that, some
 White House officials privately acknowledge, may be-
 come a political liability to the Democrats in the presi-
 dential election year.
                                 Plans for "Corrections Days" Advance
A Congressional plan to hold "Corrections Days" to repeal
or modify existing rules and statutes deemed especially
burdensome and unpopular is moving forward. Under the
Correction  Days concept, "corrections" bills would  be
dealt with under a procedure patterned after the existing
suspension calendar. Items could be brought up for floor
consideration bypassing the normal committee approval
process. The Speaker and committee chairmen would be
allowed to  place items on the corrections calendar, with
the Speaker making  the final decision on when a measure
goes to the floor. House backers of the proposal  plan to
urge the Senate to adopt a similar procedure.

Aside from the Clean Air Act-related inspection/mainte-
nance and ECO requirements it is not clear whether any

               Washington State's "New Partners"
The  Washington state legislature  approved a bill that
would  kill  a proposed privately-financed widening of
State Route 522, one of the five "New Partners" initiative
projects. This action follows in the wake of a January 1995
cancellation of another private toll road project, the exten-
sion and widening of State Route 18 (see, "Opposition to
Tolls Threatens Private Road Projects, Innovation Briefs,
April 1995).

The state legislation would subject the four remaining
projects to corridor-specific public referenda. Whether
these projects will garner sufficient local support to sur-
vive the political process remains an open question. While
the initiative clearly responds to the public's desire for
congestion  relief, it  also introduces the notion of paying
for road use in a region that has never known toll roads
before. The issue is complicated by Seatle's  geography
that often precludes  offering residents the alternative of a
 other transportation-related rules are  on the House
 leadership's "hit list." One possible candidate, pushed by
 some interest groups, is the so-called "Section 13(c)"
 labor protection provision of the Federal Transit Act.
 That provision gives transit unions an effective veto
 power over any labor-saving arrangements (such as
 contracting for service with private operators) in feder-
 ally-funded transit programs.  While the Section  I3(c)
 provision has long been opposed by the transit industry
 and its repeal has the active support of Rep. Frank Wolf,
 the influential chairman of the Transportation Subcom-
 mittee of the House Committee on Appropriations, any
 move to get rid of the  provision may be expected to
 provoke vehement opposition from organized labor.
Initiative Suffers a Further Setback
 parallel "free" road, and thus raises a potentially conten-
 tious question of equity: is it fair to charge residents for the
 use of roads  that  may  provide the only access to their
 homes?

     The defeat of the private toll road proposals in  the
 State of Washington coincides with a significant shift to
 the right in the political balance of power in the State
 legislature. How does one reconcile the negative votes
 with the conservatives' avowed predilection for "privat-
 ization " and public-private infrastructure partnerships ?
 In all probability, the legislature's action had more to do
 with the strong anti-highway sentiments of their con-
 stituents than with any bias against privately financed toll
 roads. Also contributing to the defeat was a rising mood of
 fiscal conservatism, as evidenced by the  defeat (by a vote
 of S3 to 47 percent) of another Puget Sound infrastructure
 project — a $6.7 billion regional light rail system.

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             Texas, Maryland and Illinois Seek Alternatives to Current ETR Programs
Three states  — Texas, Maryland and Illinois — are
actively pursuing alternatives to the mandatory trip reduc-
tion programs that would relieve employers of many of the
burdens imposed under the current ECO mandate.

Under an approach considered by Texas and Maryland,
the burden of program implementation will  be shifted
from individual employers  to public agencies and the
program will be implemented on a regionwide rather than
individual worksite  basis. Emphasis will  be placed on
public education, targeted at employers, commuters and
the general public. The program will offer facilitation of
ridesharing through regionwide ridematching services,
and through commuter support services such as vanpool
programs, shuttle services and  guaranteed ride home pro-
grams. Support services will be offered to employers and
Transportation Management Associations in the form of
worksite surveys, trip reduction plan development  and
program monitoring.

The Illinois EPA is following another approach. It has just
launched an "Ozone Action Days" program — a voluntary
effort by Chicago businesses, governmental agencies and
the media to  reduce  polluting activities —  including
driving to work — on summer days when high ozone
levels are forecast. The Illinois authorities expect 10 to IS
Ozone Action  Days each summer, when people will be
asked to. carpool, take transit, bike or work from home.
Chicago is the latest jurisdiction to have embraced  this
approach to maintaining federal ozone standards. At least
eight  other non-attainment  areas have episodic  control
programs currently in operation (Baltimore, Denver,  De-
troit, Dallas/Fort Worth, Richmond, San Francisco, Tulsa
and the State of Maine — see, "Episodic Emission Control
Programs During High Ozone Days," Innovation Briefs,
October 1994)

The Texas, Maryland and Illinois initiatives serve as pos-
sible prototypes for future vehicle emission reduction pro-
grams, and are being watched with interest by other affected
non-attainment jurisdictions. All three initiatives are still in
early  stages of development. They will be described in
greater detail in a future issue of Innovation Briefs.
                               In Other Congressional Developments...
The National Highway System (NHS) legislation, once a  gress. The former do not want to see a reduction in the size
top Administration and Congressional priority, continues  of the budget pool from which future budget cuts must be
to languish, caught up  in  complicated Congressional  made, while the appropriators do not want to lose jurisdic-
maneuvering.                                         tion over transportation spending.
Passage of the NHS bill is of crucial importance to the
states, for without an official Congressional NHS designa-
tion  in place by October 1,  there can be no FY  1996
apportionment of the $6.5 billion in federal aid highway
funds.  A bill (S. 440) has been introduced by Senator
Warner (R-VA) in the Senate, but on the House side  there
is no discernible movement. Some observers believe that
Rep. Bud Shuster (R-PA), chairman of the House Trans-
portation & Infrastructure Committee, intends to hold the
NHS bill hostage until some action is taken on his proposal
to take the highway trust fund "off budget." That initiative
(HR 842)  has garnered 190 co-sponsors and, reportedly,
has the tacit approval of Speaker Newt Gingrich, but is
being opposed by the powerful  chairmen  of the Budget
and Appropriation committees in both houses of  Con-
The outcome of these maneuvers is uncertain. While
highway supporters would like to see the highway trust
fund revenue protected and have mounted an aggressive
campaign to promote their cause, any movement to
shelter the highway trust fund could snowball into an
avalanche  of requests for similar treatment  of other
federal trust funds. This could result in excluding about
one-third of all federal spending from the budget, ac-
cording to OMB director, Alice Rivlin. Removing trust
funds from the general budget also has an impact on the
budget deficit, which must be offset by other revenue or
program savings. Most observers believe that the efforts
to take transportation spending off budget will fail—as
they have in the past. As for the NHS bill, the consensus
is that it will pass — before  the October 1 deadline.

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Low-Emission Vehicles - OTC-LEV and the 49-State Gar
   Robert D. Brenner. Director, Office of Air Policy, Office of Air & Radiation, U.S. Environmental
       Protection Agency;
   Bruce S. Carhari. Executive Director, Ozone Transport Commission;
   RichardL. Klimisch, Vice President, Engineering Affairs Division, American Automobile
       Manufacturers Association;
   David W. Raney. Manager of Environmental and Safety Affairs, American Honda Motor Co., Inc.

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 ROBERT D. BRENNER
    Robert D. Brenner is Director of U.S. EPA's Air Policy Office, playing a key role in the development
 and review of air regulations and policies - especially relating to the Clean Air Act. In addition, he serves on
 the agency's  Steering Committee, which manages the development of all EPA regulations. Rob's previous
 positions at EPA  include staff director of the agency's effort to "reauthorize the Clean Air Act, and senior
 policy analyst on electric-utility issues. Before joining EPA in 1979, he worked at Princeton University's
 Center for International  Studies.  At Princeton, he worked for the Department of Energy, the university's
 Fusion Energy Laboratory,  and the National Academy of Public Administration.  Rob holds Bachelor's and
 Master's degrees  in economics and public policy from Princeton's  Woodrow Wilson School of Public &
 International  Affairs.
BRUCE S. CARHART
    Bruce S. Carhart is the Executive Director of the Ozone Transport Commission,  the organization of 12
states and the District of Columbia created by Congress in 1990 to assess and coordinate the control of
regional ground-level ozone in the Northeast and Mid-Atlantic states.  He has been responsible  for managing
and implementing OTC policy initiatives in motor-vehicle pollution control (including the OTC Low-
Emission Vehicle program), the development of interstate market-based  air-pollution  control programs, and
the control of nitrogen oxides from both stationary and mobile sources.  In addition, Mr. Carhart has chaired
the ROMNET Management Review Committee, coordinating regional ozone modeling. Prior to joining OTC,
Mr. Carhart had over 20 years of experience in state, federal, and international air-quality planning, as well as
air-quality impact studies for both government and industry. He received an MSc in environmental  systems
engineering from Cornell University and a BSc in Engineering in chemical  engineering from Princeton
University.
RICHARD L. KLIMISCH
    Richard L. Klimisch is Vice President of the Engineering Affairs Division, American Automobile
Manufacturers Association, which represents Chrysler, Ford, and General Motors. He oversees joint research
and policy development on pollution, safety, noise, intelligent vehicle highway systems, OSHA, fuels, and
lubricants. He also represents the industry in a variety of media and government  forums. From 1983 to 1993,
Dr. Klimisch was Executive Director of the General Motors Environmental Activities Staff and was the GM
spokesman  on recycling, fuel economy, and alternative fuels. He was one of the  founders of the Vehicle
Recycling Partnership.  From 197S to 1983, he was head of the Environmental Science Department  of GM
Research Laboratories,  which he joined in 1967 as the company's first resident expert on catalysis. After
receiving his PhD in chemistry under Nobel laureate H.C. Brown at Purdue University, Dr. Klimisch was
employed as a Research Chemist for the DuPont Co. He received his BS in chemistry from Loras College,
Dubuque, IA.
DAVID W. RANEY
    David  W. Raney is Manager of Environmental  and Safety Affairs at American Honda Motor Co., Inc.,
responsible for regulatory  development and engineering liaison on emissions and regulatory matters with the
company's overseas factory and R&D staff as well as the U.S. Honda R&D facility. He has been with Honda
for almost  two years and prior to this spent 10 years working  with Saab in the same capacity  as at Honda.
Mr. Raney received a BSME from the University of Oklahoma.

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                             OTC/LEV Process Summary
                                    June 15, 1995

       The Ozone Transport Commission and its petition process were authorized by the  1990
Amendments.  The OTC provisions originated from a bi-partisan group of Northeastern
Governors and air quality administrators and were supported by members of Congress
representing the region.

       The OTC Low Emission Vehicle Program (OTC/LEV), which would impose the
California Low Emission Vehicle standards in the northeast was initiated by the OTC member
states as a means  of controlling air pollution in the region.  A majority of the OTC member
states supported sending the OTC/LEV petition to EPA (9 to 4 vote). On December 19,
1994, EPA approved the OTC/LEV petition but the Agency suggested a more cost-effective
alternative.  EPA  has encouraged the states and the auto makers to voluntarily agree to a  49-
state low emission vehicle  alternative.

       The 49-state alternative could result in equivalent emission reductions and would have
significant advantages compared to OTC/LEV. The 49-state program would provide for
earlier introduction of TLEVs in the NE than would be required under the OTC program. In
addition, 2001 and later model year vehicles that are  originally purchased outside the OTR
and then move into the region will be cleaner than current new cars.  By requiring vehicles to
meet the same standard in  the rest of the country manufacturing costs will be reduced and
other efficiencies  will result. The program will provide both air quality attainment and health
benefits for the rest of the  country. There are more than 50 nonattainment areas besides the
Northeast and California —50 million people breathing dirty air that will benefit from the
program.

       Discussions between the  states and auto makers  on a voluntary 49-state program
continue and are progressing. The parties are drafting a comprehensive Memorandum of
Understanding (MOU) and EPA intends to publish a NPRM detailing the 49-state program  by
mid-summer. The litigation by the auto makers against the states of Mass, and NY
concerning the ZEV sales mandates is still pending and is subject to the discussion between
the states and auto* companies.  The Advanced Technology Vehicle (ATV) Component of the
agreement would  not be subject to EPA rule making.

       A voluntary 49-state program would be unprecedented and will result in needed
reductions of automobile emissions.  Support from Governors outside the region for the 49-
state alternative is significant and wide spread.  In an era when there is a desire for more
flexibility in the regulatory process, the 49-state Low Emission Vehicle Program could be a
harbinger of the inclusive and cooperative process which states, the regulated community and
the public all desire.

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                    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                  WASHINGTON, D.C.  20460
                                       MAY  221995
                                                                         OFFICE OF
                                                                      AIR AND RADIATION
MEMORANDUM

TO:          Members of the Subcommittee on Mobile Source Emissions and Air  Quality in
             the Northeastern States, Clean Air Act Advisory Committee

             Members of the Clean Air /\ct Advisory Committee

FROM:      Mary Nichols  /^/
             Assistant Adminisfrafor~fbr Air and Reflation"

RE:          Voluntary National Low Emission Vehicle Program

             EPA is considering proposing regulations that would establish the National
Low Emission Vehicle Program (National LEV) anu is seeking the advice of the Clean Air
Act Advisory Committee on the elements :hat should be included in such a  program.

             Attached is a description of possible elements to be included  in such  a
program.  They were developed to aid in focussing discussion at the May 25th meeting of the
Subcommittee on Mobile Source Emission and Air Quality in the Northeastern States and the
June 2nd meeting of the Clean Air Act Advisory Committee.

             Any Subcommittee members that wish to present comments in writing for the
Committee's consideration should ensure that EPA receives those comments no later than
May 31.  (Comments should be sent to Mike Shields, Office of Mobile Sources, US EPA,
Mail Code 6401, 401 M Street, S.W., Washington,.D.C., 20460 (fax:  202-260-6011).)
EPA will thenj>rovide these comments to the Com v iicie members when thc.y arrive for the
June 2nd meeting. EPA requests that any Written comments from"Committee members be
received by June 9, 1995.

             EPA will not decide what  to include in the proposal  on the National  LEV
program until after it has met with the Subcommittee and Committee and has reviewed any
comments received from the Committee  members. The Agency intends then to propose  a
National LEV rule and follow normal notice-and-comment rulemaking proceedings.

             In addition to seeking advice on the National LEV proposal,  the May 25th
meeting will also include updates on issues that had  been discussed by  Subcommittee working
groups. At the May 25th meeting, there will be available a brief update on the primary
topics addressed by the Subcommittee working groups last fall and a description of the
advanced technology program being discussed  by the auto manufacturers and the OTC States.
                                                                           Prmtad en Recycled Paper

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        VOLUNTARY .NATIONAL LOW -EMISSIONS -VEHICLE-PROGRAM

EPA seeks the advice of the Clean'Air Act Advisory Committee and its Subcommittee on
Mobile Source Emissions and Air Quality in the Northeastern States on possible elements to
be included in proposed regulations establishing a voluntary national low emissions vehicle
program (National LEV).  This program could only be implemented after normal notice-and-
comment procedures.

                                    CONTEXT

•  National LEV is intended to provide an acceptable alternative to OTC LEV.

       4  In December 1994, EPA approved the Northeast Ozone Transport Commission
      (OTC) petition and issued a  SIP call,  requiring the OTC States to adopt OTC LEV
      (the OTC's California  car program) by February 15,  1996. Under EPA's decision,
      the OTC States were allowed, but not required,  to adopt zero emission vehicle (ZEV)
      mandates.

       •  EPA's decision was based on the  determination that new motor vehicle emissions
      reductions are necessary in OTC States to mitigate air pollution  transport and to
      demonstrate attainment (including maintenance) of ozone NAAQS by  the applicable
      deadline.

       *  EPA stated that, in lieu of adopting OTC LEV, the SIP inadequacy could be
      cured by establishment of an acceptable alternative new motor vehicle program.

•  The OTC States and auto manufacturers have been negotiating an agreement on a
voluntary motor vehicle emissions control program for light-duty vehicles and light-duty
trucks that is intended to establish an acceptable alternative to OTC LEV. The
negotiations contemplate a 49-state car program that would include the  following elements:

       •  A Memorandum of Understanding (MOU) signed by the OTC States, the auto
      manufacturers and EPA setting forth the agreement and the proposed  elements of a
      new nationwide motor vehicle program.

       •  An EPA regulation establishing the National LEV program, under which the auto
      manufacturers would make binding commitments to meet tighter emission standards
      nationwide.  The regulation  would be promulgated pursuant to normal notice-and-
      comment rulemaking procedures.

       •  An agreement between auto manufacturers and the OTC States to establish a
      program  to introduce advanced technology vehicles in the  OTC States. (A description
      of this agreement will  be provided by the ai-to manufacturers and the  OTC States at
      the Subcommittee and  Committee meetings on May 25 and June 2,  respectively.)

       •  Other legal documents as necessary to implement the agreements  made by the
      parties.

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                   OVERVIEW.OF NATIONAL LEV PROGRAM^A

Following is a description of possible elements to be included in an EPA regulation that
would establish the National LEV program.

Emission Standards

•  National LEV program vehicles would be required to meet California exhaust
emissions standards for NMOG, CO, NOx, PM, and formaldehyde (for TLEVs, LEVs,
ULEVs, and ZEVs).

•  Manufacturers would meet a fleet average NMOG standard that would become
increasingly stringent ovei* vime.

       •  In the OTR, the standard would achieve NMOG emissions reductions equivalent
      to:

             40% TLEVs for model years 1997-2000
             30%  LEVs for model year  1999
             60%  LEVs, for model year 2000
             100%  LEVs for model year  2001 :md later

       •  In the rest of the United States, except California, the standard would achieve
      NMOG emissions reductions equivalent to:

             100%  LEVs for model years 2001 and later

       •  To meet the fleet  average NMOG standard, manufacturers could use an
      averaging,  banking and trading program comparable to that allowed under the
      California LEV program.

             ป•  Two regions would be established for purposes of meeting the fleet average
             ~ the Ozone Transport Region and 'he remainder of the country (except
             California).

       •  To protect NOx reductions in the OTR, an industry-wide cap of 5% would be set
      on the total annual sales of Tier 1 and TLEV vehicles in the OTR after model year
      2000.

             ป•  If the industry-wide cap was exceeded, each individual manufacturer would
             be responsible for its TLEV and LEV sales over 5%, taking into account any
             credits the'manufacturer had obtained.

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       •  Certain purchases of .advanced ^technology veWcles in the OTR (such as
       government purchases under^the-advanceditechnology vehicle program under
       discussion by the OTC States and the-auto manufacturers) are intended to supplement
       emissions reductions from the National LEV program.  Therefore, such  purchases
       would not generate credits to meet the fleet average standard, provided appropriate
       tracking mechanisms are available.

•  Low volume manufacturers would not need to meet tbVNMOG average until MY
2001.

       *  Low volume manufacturers would be defined the same as in California --
       manufacturers with sales of 3000 vehicles in California.  In addition, a nationwide cap
       of 25,000 to 40,000 vehicle sales annually is  being considered.
Harmonization of Other Standards

•  National LEVs would also be required to comply with other federal motor vehicle
requirements, but EPA would work with the California Air Resources Board to
harmonize comparable federal and California standards where practicable.

       •  This would reduce regulatory burdens by allowing manufacturers to consolidate
       testing for California and federal motor vehicle programs without compromising
       emissions control.

       •  Following is a list of the standards and harmonization status:

             >  Federal Test Procedure: EPA and CARS are working together to revise
             the conventional FTP and anticipate that both agencies will adopt identical
             changes.  Both agencies are working together  to adopt new "off-cycle"
             standards; neither CARB nor EPA anticipate adopting these standards prior to
             fmalization of a National LEV regulation.  The auto manufacturers have
             agreed to meet the  federal Tier 1 standards, and have agreed that, if CARB
             adopts- more stringent standards for LEVs and ULEVs, EPA could change the
             National  LEV regulations to require that the CARB "off-cycle"  standards be
             met instead.'  California Phase II reformulated gasoline (RFC) would be  used
             as the certification  test  fuel.

             >  On-Board Diagnostics:  National LEVs would use systems complying with
             California requirements.

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            , >  Evaporative Emissions: • EPA is currently working with-GARB and the •
             auto manufacturers to harmonize these standards andjest procedures. -The
             auto manufacturers would like California Phase n RFC to be used as the test
             fuel and recognize that this might require changes to the test procedure to
             ensure the same level of control. EPA is reviewing this issue.

             *  On-Board Refueling Vapor Recovery:  CARS is expected to adopt the
             federal standards and test procedures. The auto manufacturers  would like
             California Phase II RFC to be used as the test fuel and recognize that this
             might require changes to the test procedure to ensure the same  level of
             control.  EPA is reviewing this issue.

             >  Cold Temperature CO:  These standards and test procedures are
             harmonized. Federal certification  fuel would be used.'

             >  Certification Short  Test:  Federal standards, test procedures and test fuel
             would be required.  (California's test does not meet the minimum Clean Air
             Act requirements  for national certification.)

             >  High  Altitude Testing:  EPA is reviewing California's high altitude
             requirements to determine whether California or federal requirements should
             be used.

       •  The following federal requirements would apply:  certification  requirements,
       Selective Enforcement  Audits,  recall, warranty, and other federal enforcement
       provisions.  Some changes in these programs may be required to account for the need
       to conduct certain  emission tests using California  Phase 2 RFC.
Structural Provisions

•  Manufacturers would have the opportunity to voluntarily opt into the National LEV
program.

•  Once a manufacturer opted in, the emission standards would be enforced in the same
manner as mandatory federal motor vehicle standards.

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•  Once a manufacturer opted in, it would be able to opt out only in certain limited
circumstances. The offramps under discussion are:

       * failure of an OTC State to make an agreed-upon commitment regarding adoption
       of the CAL LEV program under ง 177 of the Clean Air Act. • The form of state
       commitment is still under discussion, but might include:

              ป  state implementation plan revision,

              ป  letter from state attorney general,

              *  executive  order,

              >  legislative action, and

              ป  consent decree.

       * failure of an OTC State to meet any commitment it might make (as part of the 49-
       state  car agreement)  regarding adoption of the CAL LEV program under ง 177 of the
       Clean Air Act.  These commitments are still under discussion, but might include:

              ป  agreeing to allow National LEV as a compliance alternative to the NMOG
              fleet average  portion of an existing or future LEV program, and

              ป  agreeing to a linkage between National LEV  and the ZEV mandate portion
              of an existing or future LEV program.

       • EPA modification of specified standards over manufacturer objection.

              ป•   Minor, technical  changes or changes that harmonize federal standards with
              California's standards would not give -nanufacturers the right to opt out of the
              program.

              >   It has been suggested that other changes to some or all of the following
              standards or  requirements,  which are still under discussion, would give auto
              manufacturers the ability to opt out:

                    -ป  the tighter tailpipe emission standards required  under National LEV;

                    -*  fleet average NMOG standard;

                    -ป  California on-board diagnostic II requirements;

                    -ป  California RFG  Phase II for certification test fuel for tailpipe
                    standards and possibly  others;
                                           5

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                    -*  averaging, banking and trading provisions;

                    -*  revised conventional federal test procedure as adopted by EPA in its
                    current rulemaking;

                    -ป  revised "off-cycle" federal test procedures and standards;

                    -*  evaporative emissions standards and test procedures;

                    -ป  on-board refueling vapor recovery standards and test procedures;
                    and

                    -ป  cold CO standards and test procedures.
•  If a manufacturer opts out, its vehicles will be subject to the emissions standards that
would otherwise apply.

       4  In states that have adopted California emissions standards  pursuant to ง 177
      programs, those state standards would apply.

       *  In all other states, federal standaros would apply.

•  The duration of the program is still under discussion.  Following are two options
being considered:

       *  Option 1:

              >•  If there are not Tier II standards at least as stringent as the National LEV
              program,  then  the program would terminate effective with the start of MY
              2004.

              >  If there are Tier II standards at least as stringent as National LEV, adopted
              pri.u to January 1, 200i, and c:r.,mencing  in MY 2004, 2005 or 2006, the
              National LEV program  will terminate as of the effective date of such Tier II
              standards. OTC States' commitments with  respect to adoption of the CAL
              LEV program  would extend until MY 2006.

       f  Option 2:

              ป•  The National LEV program would remain in effect until the first applicable
              model year for new, mandatory federal  standards that are at least as stringent
              as the National LEV standards.  OTC States' commitments with respeci to
              adoption of the CAL LEV program would extend'until MY"200X (as agreed
              upon by OTC  States and auto manufacturers).

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                    ACCEPTABLE ALTERNATIVE PROGRAM

Based on the following criteria, EPA would find that the National "LEV program is an
acceptable alternative to OTC LEV, which would relieve the OTC States of their obligation
to adopt OTC LEV:

•  Emissions reductions in the OTR must be equivalent.

       4  Cleaner vehicles will be introduced into OTR earlier under National LE\T
      program (MY 1997) than under OTC LEV program (MY 1999).

       •  Because cleaner vehicles will be introduced nationwide beginning in MY 200^,
      .he OTR will realize emissions benefits due to the reduced migration of dirtier Tier l
      cars  into the OTR from 2001 on.

       •  According to EPA's preliminary analyst National LEV would produce
      equivalent or better emissions reductions in the OTR as would OTC LEV (with or
      without state ZEV mandates).  This analysis was discussed by the Subcommittee ati
      length last fall and appears  in the Federal Register at 59 F.R. 53401 (Oct. 24,  199&).

•  The program must be enforceable.

       •  EPA has authority to establish the National LEV standards under section 202,
      which gives EPA broad authority to set motor vehicle emission standards.

             >  The prohibition on modifying Tier 1 standards precludes EPA from
             establishing mandatory standards prior to model year 2004, but does not
             preclude establishment of voluntary standards.

       4 EPA could enforce National LEV standards in the same manner as the Agency
      enforces mandatory federal standards.

       • EPA would need to find that the program is stable (i.e., that opportunities for
   •   manufacturers to opt out are limited and unlikely).

•  EPA must determine that the program is in effect.

       • If all manufacturers opt in within 60 days of the Final Rule, EPA will find
      National LEV is "in effect," satisfying the OTC LEV SIP call.

•  The OTC States and auto manufacturers would also agree to a program for the
introduction of advanced technology vehicles into the OTR. This would meet an
important policy concern of the  OTC States and EPA, but is1 h6%lef9Dy*e'omgeIled   A
description of this program will  be distributed at the./May 25th and June 2nd
Subcommittee and Committee meetings.

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MEMORANDUM OF UNDERSTANDING
  CONCERNING MOTOR VEHICLE EMISSIONS
    REDUCTION PROGRAM FOR THE OTC

             PRESENTED TO:

SUBCOMMITTEE ON MOBILE SOURCE EMISSIONS
 AND AIR QUALITY IN TTE NORTHEAST STATES

             MAY 25, 1995

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      MEMORANDUM OF UNDERSTANDING
	STRUCTURE AND CONTENT	
        _                  .
 CHARACTER OF DISCUSSIONS BETWEEN OTC AND MOTOR
             VEHICLE MANUFACTURERS
       TRUST REACHED ENABLED IN-DEPTH DISCUSSION OF ALL ISSUES
       ASSOCIATED WITH CONSTRUCTION OF A MEMORANDUM OF
       UNDERSTANDING (MOU)
      UNDERSTANDING OF OPPOSING VIEWS NOTED ON TOPICS WHERE
      AGREEMENT HAS NOT BEEN REACHED

      RESOLUTION OF UNRESOLVED ISSUES AND OTHER OPEN ITEMS  '
      .COULD BE ATTEMPTED BY CONTINUATION OF THE RELATIONSHIP

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MEMORANDUM OF UNDERSTANDING
     STRUCTURE AND CONTENT
          PURPOSE OF THE MOU
 TO TARGET EMISSIONS REDUCTIONS FROM NEW MOTOR VEHICLES
 IN THE OTR EQUIVALENT TO, OR GREATER THAN, AVAILABLE
 FROM THE OTC LEV PROGRAM
 TO PROVIDE CLEANER AIR NATIONWIDE BY REDUCING NEW
 MOTOR VEHICLE EMISSIONS

 TO INTRODUCE ADVANCED TECHNOLOGY VEHICLES (ATVs) IN THE
 OTR IN A COST EFFECTIVE MANNER

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MEMORANDUM OF UNDERSTANDING
     STRUCTURE AND CONTENT

         STRUCTURE OF THE MOU
 ESTABLISHES PURPOSE

 IDENTIFIES PARTIES

 INDICATES COMMITMENT FOR A 49 STATE LOW EMISSIONS
 VEHICLE (49 SLEV) REGULATION TO BE DRAFFED BY EPA

 INDICATES COMMITMENT TO SUPPORT INTRODUCTION OF ATVS
 VIA A UNIQUE AGREEMENT BETWEEN OTC STATES AND MOTOR
 VEHICLE MANUFACTURERS

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         MEMORANDUM OF UNDERSTANDING
               STRUCTURE AND CONTENT


                      PARTIES TO THE MOU
OTC STATES -    CONNECTICUT, DELAWARE, MAINE, MARYLAND, MASSACHUSETTS, NEW
               HAMPSHIRE, NEW JERSEY, NEW YORK, PENNSYLVANIA, RHODE ISLAND,
               VERMONT, VIRGINIA, AND THE DISTRICT OP COLUMBIA
MANUFACTURERS -    AMERICAN HONDA MOTOR CO., INC.; AMERICAN SUZUKI
                    MOTOR CORP.; BMW OF NORTH AMERICA, INC ; CHRYSLER
                    CORPORATION; FIAT AUTO USA, INC.; FORD MOTOR COMPANY;
                    GENERAL MOTORS CORPORATION; HYUNDIA MOTOR AMERICA;
                    Isuzu MOTORS AMERICA INC.; KLA MOTORS AMERICA, INC.;
                    LAND ROVER NORTH AMERICA, INC.; MAZDA MOTOR OF
                    AMERICA, INC.; MERCEDES BENZ; MITSUBISHI MOTOR SALES OF
                    AMERICA, INC.; NISSAN NORTH AMERICA, INC.; PORSCHE CARS
                    NORTH AMERICA, INC.; ROLLS-ROYCE MOTOR CARS INC.;
                    SAAB CARS USA, INC.; SUBARU OF AMERICA, INC.; TOYOTA
                    MOTOR SALES USA, INC.; VOLKSWAGON OF AMERICA, INC.;
                    AND VOLVO NORTH AMERICA CORPORATION

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY (EPA)

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        MEMORANDUM OF UNDERSTANDING
             STRUCTURE AND CONTENT
          49 STATE LEV PROGRAM REQUIREMENTS
        THE 49 SLEV REGULATION SHOULD BE DESIGNED TO PROVIDE A
        SOLID BASE FOR OTC STATES TO REACH EMISSIONS REDUCTION
        GOALS AND TO PROVIDE REDUCED EMISSIONS FOR THE COUNTRY

        THE MOU IDENTIFIES PARAMETERS FOR A 49 SLEV REGULATION

        EPA WILL WRITE THE REGULATION

        MANUFACTURERS WILL ELECT TO COMPLY WITH THE
        REGULATION

THE INTENT OF THE PARTIES IS FOR EMISSIONS PERFORMANCE AND SIP CREDIT
TO BE EQUIVALENT TO THE OTC LEV PROGRAM

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         MEMORANDUM OF UNDERSTANDING
               STRUCTURE AND CONTENT



                     UNRESOLVED ISSUES

MANDATES -     ELECTRIC VEHICLE MANDATES IN MASSACHUSETTS AND
               NEW YORK AND POTENTIAL FOR ADOPTION BY OTHER
               STATES IN THE OTR

          OTC STATES HAVE DECLARED THAT SOVEREIGN RIGHTS TO ADOPT PROGRAMS
          IN THEIR INTEREST CANNOT BY LIMITED BY THIS AGREEMENT.

          MANUFACTURERS HAVE DECLARED THAT THE MOU WILL NOT BE SIGNED
          UNLESS THfc MANDATE ISSUES ARt ADEQUATELY ADDRESSED
COMMITMENT -  COMMITMENT BY ALL PARTIES MUST BE MEASURABLE AND
               ASSURE STABILITY FOR THE TERM OF THE AGREEMENT

          OTC STATES HAVE c; ?ERED COMMITMENT VTA SIP PROVISIONS AND
          ENFORCEMENT BY THE EPA.

          MANUFACTURERS FEEL THAT SIP PROVISIONS CANNOT BK COMPARED TO THK
          RIGIDITY OF EPA ENFORCEMENT OF MOTOR VEHICLE EMISSION REGULATIONS.

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   MEMORANDUM OF UNDERSTANDING
        STRUCTURE AND CONTENT
         ADDRESSING FUEL (GASOLINE)
THE 49 SLEV PROGRAM DOES NOT CALL ON STATES TO USE ANY
PARTICULAR GASOLINE
GASOLINE THAT MAY BE USED IN THE OTR IS THE SAME AS WOULD BE
EXPECTED FOR THE OTC LEV PROGRAM

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  MEMORANDUM OF UNDERSTANDING
       STRUCTURE AND CONTENT


ADVANCED TECHNOLOGY VEHICLE COMPONENT
  THE ADVANCED TECHNOLOGY VEHICLE (ATV) COMPONENT*
  IDENTIFIES A PARTNERSHIP BETWEEN GOVERNMENT, MOT($R
  VEHICLE MANUFACTURERS AND OTHER INTERESTED PARTIES TO
  INTRODUCE ATVs

  ATV COMPONENT IS AN AGREEMENT BETWEEN THE OTC STATUES
  AND THE MANUFACTURERS FOR INTRODUCTION OF ATVs INTฎ
  THEOTR

  OTC STATES AND MANUFACTURERS ARE EACH ACCOUNTABLE
  FOR MEETING COMMITMENTS AND WILL JOINTLY ANNOUNCE
  SALES ESTIMATES AND ACCOMPLISHMENTS

  AGREEMENT WILL NOT BE ENFORCEABLE AGAINST ANY OF THE1
  PARTIES

  MANUFACTURERS ARE NOT OBLIGATED TO SALE OF SPECIFIC
  NUMBERS OR MARKET PERCENTAGES OF ANY SPECIFIC
  TECHNOLOGY

  THE ATV COMPONENT WILL NOT BE A PART OF THE EPA 49 S\EV
  REGULATION

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       MEMORANDUM OF UNDERSTANDING

                  ATV COMPONENT


      ADVANCED TECHNOLOGY VEHICLE - DEFINITION



VEHICLES CERTIFIED FOR SALE IN CALIFORNIA THAT ARE:



         ULEV OF ILEV CERTIFIED USING ANY FUEL

                           OR

         ELECTRIC VEHICLES, EITHER DEDICATED OF HYBRID

                           OR

         OTHER ALTERNATIVE FUEL VEHICLES AND DEFINED BY EPACI
         (CERTIFICATION LEVEL AND TIMING NOT RESOLVED)

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       MEMORANDUM OR UNDENTANDING
                   ATV COMPONENT


          COOPERATIVE WORKING RELATIONSHIP
SHARED RESPONSIBILITY BETWEEN ALL PARTIES INTERESTED IN
INTRODUCTION OF ATVs
         OTC STATES AND MAJOR MOTOR VEHICLE MANUFACTURERS

         OTHER STATES OUTSIDE OF THE OTR

         EPA AND DOE

         FUEL PROVIDERS

         CONVERTERS, FLEET OPERATORS

         OTHER MANUFACTURERS OF SPECIALTY MOTOR VEHICLES

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        MEMORANDUM OF UNDERSTANDING
                  ATV COMPONENT
          PROCESS CREATED TO INTRODUCE ATVs
MOU ATTACHMENT OUTLINES A PROCESS TO ORCHESTRATE INTRODUCTION
OF ATVs
        JOINT IDENTIFICATION OF VEHICLE SALES ESTIMATES

        INTEGRATE DEVELOPMENT AND EXECUTION OF     NECESSARY
        TASKS

        MEASURE AND REPORT PERFORMANCE

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        MEMORANDUM OF UNDERSTANDING
                   ATV COMPONENT
                   SUGGESTED TIMELINE



1996 - 1998  INVOLVE FEDERAL, STATE AND FUEL PROVIDER FLEETS

                  MARKET ATVs TO FLEETS

                  BEGLNN DEVELOPMENT OF REFUELING
                  INFRASTRUCTURE

                  SURVEY POTENTIAL DEMAND FOR 1999 - 2001

1999 - 2001  ADD MUNICIPAL AND PRIVATE FLEETS

                  EXPAND PRODUCT OFFERINGS AND INFRASTRUCTURE

                  EXPAND INCENTIVE PROGRAMS

                  SURVEY POTENTIAL DEMAND FOR 2002 - 2004

                  IDENTIFY CRITERIA NEEDED TO SUSTAIN RETAIL
                  SALES

2002 - 2004  ADD RETAIL COSTUMER OFFERINGS

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        MEMORANDUM OF UNDERSTANDING
                   ATV COMPONENT


           ATV MONITORING GROUP STRUCTURE



OTC STATES AND MOTOR VEHICLE MANUFACTURERS PRINCIPALS

         ANNUAL MEETING TO ASSESS PROGRESS AND AGREE TO
         OBJECTIVES

         PUBLIC PORTION OF ANNUAL MEETING TO SEEK ADVICE OF
         INTERESTED PARTIES

         EXECUTIVE SESSION AVAILABLE

STANDING WORKING GROUP

         COMPILE INFORMATION FOR ANNUAL MEETING OF PRINCIPALS

         DESIGN ANNUAL MEETING STRUCTURE

         MEET AS NEEDED TO EVALUATE PROGRESS, OUTLINE ISSUES AND
         SUGGEST SOLUTIONS

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Luncheon. Resolving the ZEV Mandate Tangle
   Hon. Truejv Coxe. Secretary of Environmental Affairs, Commonwealth of Massachusetts.

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TRUDY COXE
    Trudy Coxe is Environmental Affairs Secretary for the Commonwealth of Massachusetts and one of
America's foremost environmental  advocates.  She combines the experience of more than  17 years of
leadership as an environmental activist in the nonprofit sector with state and federal environmental-
management posts. She served 11 years as Executive Director of Rhode Island's  Save The Bay, turning it into
one of New  England's citizen-action organizations. Before being appointed to her present position in 1993,
Ms. Coxe served in the Bush Administration as Director of Ocean & Coastal Resource Management at
NOAA. She currently leads five key Massachusetts agencies -  the Departments of Environmental  Protection;
Environmental Management; Fisheries, Wildlife & Environmental  Law Enforcement;  Food & Agriculture; and
the Metropolitan District Commission. She also chairs the board of the Massachusetts  Water Resources
Authority, the agency charged with cleaning up Boston Harbor.

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Nonroad Engines and Vehicles
   Deborah S. Daltonr Deputy Director, Consensus & Dispute Resolution Program, Office of Policy,
       Planning & Evaluation, U.S. Environmental Protection Agency;
   GaryH, ffais?, Partner, Gabeler, Baise & Miller, and Washington Environmental Counsel, Equipment
      Manufacturers Institute;
   William M. Guerry. Jr.. Partner, Collier, Shannon, Rill & Scott, and Counsel to the Outdoor Power
      Equipment Institute;
   Gary E. Cross. Partner, Dunaway & Cross, and Counsel to the Portable Power Equipment
      Manufacturers Association.

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 DEBORAH  S. DALTON
     Deborah S. Dalton is Deputy Director of the Consensus & Dispute Resolution Program (formerly the
 Regulatory Negotiation Project) in the Office of Policy, Planning & Evaluation, at U.S. EPA. She advises
 EPA program office and regional office management on the selection  and implementation  of various
 consultation, consensus-building,  and dispute-resolution procedures for use in developing  rules, implementing
 policy, and prosecuting enforcement actions. She is co-author/co-editor of the primary reference book on
 regulatory negotiation, Sourcebook  on Negotiated Rulemakmg, published  by the Administrative Conference of
 the United States in 1990. Ms. Dalton has been with EPA since  1976, first in pesticides and toxic-substances
 enforcement  and then in Superfund enforcement. She holds a BS in psychology/biology from the College of
 William & Mary, an MS in biology from  the University of Virginia, and  has done advanced  graduate work in
 environmental toxicology at the University of Maryland.
GARY H. BAISE
    Gary H. Baise is a Partner with Gabeler, Baise & Miller. Between  1992 and 1994, he was a Partner with
Jenner & Block, responsible for developing the law firm's regulatory and litigation environmental  practice.
Representative clients included the pulp and paper industry,  industrial trade associations, pesticide
manufacturers, and pollution-control companies. Prior to this, he was a corporate officer and Vice President,
External Affairs, with Browning-Ferris Industries, responsible for addressing the corporation's potential
criminal liabilities. Previous positions  include Founder and Partner, Beveridge & Diamond;  Acting Deputy
Attorney General, U.S. Department of Justice; and Executive Assistant  to the Acting Director of the FBI. Mr.
Baise is admitted to the Indiana State  and District of Columbia Bars, the U.S. Supreme  Court, and various
U.S. District and Circuit  Courts.  He received a BS from Western Illinois University and  a JD from Indiana
University.
WILLIAM M. GUERRY, JR.
    William M.  Guerry, Jr. is a Partner with Collier, Shannon, Rill & Scott in its Washington, DC office. He
counsels and represents trade associations and corporate clients on all aspects of environmental  law,  including
the Clean Air Act, RCRA, the Clean Water Act, CERCLA, and the Emergency Planning & Community
Right-to-Know Act. He is an industry spokesman at the U.S. EPA Regulatory Negotiation charged with
developing mobile-source emission standards for outdoor power equipment. He prepares comments and
provides counsel on strategies to mitigate the impact of the Clean Air Act Amendments of 1990.  Mr. Guerry
is admitted to the Virginia and District of Columbia Bars.  He received a BA, magna cum  laude, and a JD
from the University of Virginia and attended Wolfson College of Cambridge University, England.
GARY E. CROSS
    Gary E. Cross is a founding Partner of the law firm Dunaway & Cross and practices principally in the
areas of administrative law, civil litigation, appellate advocacy, and trade association counseling. He has
represented corporations and associations in numerous federal rulemaking matters, including judicial review of
agency regulations, throughout his legal career. Mr. Cross received a BA in government from the College of
William and Mary and a law degree from  Georgetown University  Law Center.

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f^  U.S. Environmental Protection Agency ^9
     Improving the Clean Air Act
      The Mobile Source Issues
            June 21,1995
Office of Mobile Sources

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      Mission Statement
   Ucฃhe Office of Mobile Sources
    seef(s to protect pu6Cic health
    and the environment 6y
    minimizing the harmful effects
    of pollution from mobile
    sources.
           n
Office of Mobile Sources

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     Ozone and Health
caused by HC and NOx combining in
sunlight
summer problem
reduced lung function
impaired respiratory immune response
and increased infection
accelerated lung aging
stunted lung growth in children
57 million live in unhealthy areas

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           CO and  Health
• colorless, odorless, poisonous gas
• winter problem
• impairs exercise ability, visual perception,
  manual dexterity
• impairs learning ability
• affects infants, elderly, those with respiratory
  problems
• 22 million live in unhealthy areas
Office of Mobile Sources

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ฃ. One State's HC Problems ฃ.
                Area
                           Onroad
                               Nonroad
                    Industrial
Office of Mobile Sources

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            State Options
    rely on federal emission standards
    opt-in to California emission standards
    encourage alternative technologies
    institute no-mow days
    ban products
    encourage alternative landscaping
Office of Mobile Sources

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             Clean Air Act
   set technology-based standards
    - first consider on-highway stringency
    - then consider cost, leadtime, noise, energy and
     safety

   utilize useful life standards

   require earliest possible effective date

   apply current on-highway enforcement
   requirements
    - allows administrative discretion in modifying
     regulations
Office of Mobile Sources

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SL  So Much To Do, So Little Time
                EPA Staff
Office of Mobile Sources

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           Sierra Club Suit
 Large Compression-Ignition Engines
 Small Gasoline Engines -- Phase I
 Marine Engines
 Small Gasoline Engines -- Phase II
 Large Gas/Small Cl Schedule
May, 1994
May, 1995
No v, 1995
May, 1997
Nov, 1996
Office of Mobile Sources

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             Nonroad Rules
         Complete or Underway
    Small Spark-Ignition Engines (2 phases)
    Large Compression-Ignition Engines
    Marine Engines
    Locomotive Engines
Office of Mobile Sources

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             Potential Future
              Nonroad Rules
     Recreational Vehicles
     Large Spark-Ignition Engines
     Small Compression-Ignition Engines
Office of Mobile Sources

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     Nonroad Program Principles  S
        • Educate
        • Listen
        • Focus on Interests
        • Be Flexible
        • Keep It Simple
Office of Mobile Sources

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           EPA's Interests
    protect public health
    achieve greatest reduction at lowest
    cost to society
    promote clean, durable engine
    technology
    promote market-based incentives
    encourage competition and
    technological innovation
    construct legally defensible program
Office of Mobile Sources

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           Large Diesels
  • rule finalized June 17,1994
  • new nonroad compression-ignition
    engines
  • 37 kilowatts (50 horsepower) and
    above
  • HC, CO, NOx, PM, smoke
  • certification, production line audit,
    recall
  • effective date depends on engine size
  • standards depend on engine size

Office of Mobile Sources

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&  Small  Gasoline Engines  ^
  • rule finalized May 30,1995
  • new nonroad spark-ignition engines
  • 19 kilowatts (25 horsepower) and
    below
  • HC, CO, NOx
  • certification, production line audit; no
    recall
  • model year 1997 effective date
  • standards depend on engine size and
    equipment type

Office of Mobile Sources

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ฃL    Small Engine HC Sources
            Spillage
             15%
          Evap
          26%
Exhaust
 59%
Office of Mobile Sources

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         What Phase 1  Does
  gets early benefits for public and states
  looks like California, except for
   - CO levels
   -two-stroke walk-behind lawnmowers
   - snowthrowers
   - effective date
   -engine classification
   -production line auditing
   -streamlined certification
	   ' ^^^^^^^^^^^^^^^^^^^^^•^^^^^^•IH^H^
Office of Mobile Sources

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       Benefits and Costs
    big diesel
     - 37% NOx decrease
     -$188 per ton
    small gas phase 1
     - 32% HC decrease
     - $280 per ton
Office of Mobile Sources

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r\     Only These Sources Exceed      *\
**"        Nonroad Contribution        "***
    VOC
     -light-duty highway vehicles
     - solvent evaporation
    CO
     -light-duty highway vehicles
     - residential fuel use
    NOx
     - electric power generation
Office of Mobile Sources

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       Phase 2: Reg Neg
Office of Mobile Sources

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            EPA's Role
                         balance
                         CBI conduit
                         catalyst for
                         consensus
                         translation
                         analysis
Office of Mobile Sources

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          Consensus
Office of Mobile Sources

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         Common Ground
     no recall
     in-use noncompliance remedies
     test procedure
     manufacturer-based production line
     testing
     fleet and/or bench-aged in-use testing
     gas can spillage control
     evaporative emission control
Office of Mobile Sources

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                                                Law Offices
                                  GABBLER, BAISE & MILLER, P.C.
Lane R Gabeler*                          1320 Old Chain Bridge Road, Suite 200                      Washington, D C Office
Gary H. Baise"                                  McLean, Virginia 22101                        Washington Square, Suite 1200
Marshall Lee Miller41                                  (703) 790-3456                            1050 Connecticut Avenue, N W
Raymond D. Battocchi*                              Fax (703) 790-5862                              Washington. D.C 20036
Norman Earl Gnggs                                                                                 (202) 861-1650
Charles Davenport*                                                                              Fax (202) 861-1645
Don G Scroggin0                                                                                     	
Steven F Huschฐ
Robm L Robb+                     Clean Air Act: The Mobile Source Issues                        or counsel
John R Powell                    Regulation of Nonroad Vehicles and Engines                  Guy Vander Jagt
Lance W. High                       6                                     6
+Admitted also mthtDiitnci of Columbu                          Gary H. BfliSC
•Admitted only in die District of Columbia

       Statutory Provisions

       States and localities are prohibited from adopting or  enforcing any standard or other
       requirement relating to the control of emissions from new nonroad engines, smaller than 175
       horsepower, used in farm or construction equipment.  CAA ง 209(e)(l).

       EPA may authorize California to adopt emission standards  for nonroad engines and vehicles
       other than those covered by the Section 209(e)(l) prohibition.  CAA ง 209(e)(2).

       Other States may then adopt the California  standards. CAA ง 209(e)(2)(B).

       EPA must study emissions from nonroad engines and vehicles to determine if such emissions
       cause, or significantly contribute to, air pollution that may reasonably be anticipated to
       endanger public health or welfare.  EPA then determines, based on this study, whether
       emissions of CO, NOx, and VOCs from new and existing nonroad engines and vehicles are
       "significant contributors" to ozone or CO concentrations in more than one nonattainment area.
       If EPA makes a determination that nonroad engines and vehicles are such "significant
       contributors," then  it must regulate emissions from those classes or categories of new nonroad
       engines and vehicles that cause, or contribute to, this air pollution.  These emissions standards
       must achieve the greatest degree of emission reduction achievable, based on technology that
       will be available, giving appropriate consideration to the cost, noise, energy, and safety factors
       associated with that technology. CAA ง 213(a).
        EPA Rulemaking

        In its recent rulemakings on nonroad engines and vehicles, EPA dramatically limited the
        statutory provisions.  See 59 Fed. Reg. 36,969 (July 20, 1994) (Section 209) and 59 Fed. Reg.
        31,306 (June 17, 1994) (Section 213).

        EPA drastically narrowed the definition of "new."  Under the EPA regulations, "new" means
        only until title  passes to the ultimate purchaser or until the engine, vehicle, or equipment is
        placed into service, whichever occurs first.

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EPA's regulations would narrow the scope of the preemption intended by Section 209(e)(2) to
cover only "new" nonroad engines or vehicles not covered by Section 209(e)(l). This limits
the preemption of regulation by States other than California to only "new" engines or
vehicles.  As a practical matter, EPA's regulations allow States to impose a patchwork of
different in-use standards on nonroad sources.

EPA determined that federal preemption does not apply to engines manufactured prior to the
effective date of the nonroad engine definition, July 18, 1994.
EPA described broadly the scope of permissible State "in-use" regulation of nonroad sources.

EPA developed a "primary use test" to determine whether equipment qualifies as farm or
construction equipment.  EPA's regulations define farm and construction equipment to include
only equipment used 51 percent or more for construction or the commercial production,
harvesting, or processing of food.

EPA determined that nonroad  sources are significant contributors to total NOx emissions
nationwide.
Petitioners' View

The Clean Air Act prohibits States and localities from adopting emission standards for farm
and construction engines or equipment built after November 15, 1990. CAA ง 209(e). The
statutory preemption for "new" nonroad sources must be distinguished from then-existing
sources.  The scope of preemption must be read broadly, including "other requirements", not
only numerical emissions standards, that relate to the control of emissions. The effective date
of this preemption is the date of enactment of the Clean Air Act Amendments of 1990,
November 15, 1990, not the effective date of the nonroad engine definition, July  18, 1994.

The Clean Air Act prohibits the  imposition by States of emission regulations  on new nonroad
sources, except to the extent specific "in-use" regulations do not constitute attempts to adopt
State emission standards.  CAA ง 209(e)(l).   The Clean Air Act prohibits the imposition by
States of any regulation of nonroad sources identified in Section 209(e)(2), without federal
authorization.  CAA ง 209(e)(2).

The Equipment Manufacturers Institute has suggested using the purpose for which equipment
was designed as a test of whether it is farm and construction equipment or not. The "primary
use test" impermissibly narrows the preemption provided by the Clean Air Act, and may
subject many classes of equipment to State and local regulation, rather than only to federal
control.

The Clean Air Act requires a determination that nonroad sources are a significant contributor
to ozone noncompliance.  CAA ง 213(a).  EPA used the wrong basis for this determination.
NOx emissions do not; necessarily translate into ozone noncompliance in the area  of
emissions.
                                          -2-

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