80_FR_26337 80 FR 26249 - California State Nonroad Engine Pollution Control Standards; Mobile Cargo Handling Equipment at Ports and Intermodal Rail Yards Regulations; Notice of Decision

80 FR 26249 - California State Nonroad Engine Pollution Control Standards; Mobile Cargo Handling Equipment at Ports and Intermodal Rail Yards Regulations; Notice of Decision

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 80, Issue 88 (May 7, 2015)

Page Range26249-26254
FR Document2015-11034

The Environmental Protection Agency (``EPA'') is granting the California Air Resources Board's (``CARB'') request for authorization of amendments to its mobile cargo handling equipment at ports and intermodal rail yards regulations (``CHE amendments''). EPA is also confirming that certain CHE amendments are within the scope of prior EPA authorizations. CARB's mobile cargo handling equipment at ports and intermodal rail yard regulations apply to all newly purchased, leased or rented on- and off-road vehicles and equipment, as well as in-use on- and off-road vehicles and equipment, with compression-ignition engines that operate at ports and intermodal rail yards. This decision is issued under the authority of the Clean Air Act (``CAA'' or ``Act'').

Federal Register, Volume 80 Issue 88 (Thursday, May 7, 2015)
[Federal Register Volume 80, Number 88 (Thursday, May 7, 2015)]
[Notices]
[Pages 26249-26254]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11034]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2014-0060; FRL-9927-30-OAR]


California State Nonroad Engine Pollution Control Standards; 
Mobile Cargo Handling Equipment at Ports and Intermodal Rail Yards 
Regulations; Notice of Decision

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of decision.

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SUMMARY: The Environmental Protection Agency (``EPA'') is granting the 
California Air Resources Board's (``CARB'') request for authorization 
of amendments to its mobile cargo handling equipment at ports and 
intermodal rail yards regulations (``CHE amendments''). EPA is also 
confirming that certain CHE amendments are within the scope of prior 
EPA authorizations. CARB's mobile cargo handling equipment at ports and 
intermodal rail yard regulations apply to all newly purchased, leased 
or rented on- and off-road vehicles and equipment, as well as in-use 
on- and off-road vehicles and equipment, with compression-ignition 
engines that operate at ports and intermodal rail yards. This decision 
is issued under the authority of the Clean Air Act (``CAA'' or 
``Act'').

DATES: Petitions for review must be filed by July 6, 2015.

ADDRESSES: EPA has established a docket for this action under Docket ID 
EPA-HQ-OAR-2014-0060. All documents relied upon in making this 
decision, including those submitted to EPA by CARB, are contained in 
the public docket. Publicly available docket materials are available 
either electronically through www.regulations.gov or in hard copy at 
the Air and Radiation Docket in the EPA Headquarters Library, EPA West 
Building, Room 3334, located at 1301 Constitution Avenue NW., 
Washington, DC. The Public Reading Room is open to the public on all 
federal government working days from 8:30 a.m. to 4:30 p.m.; generally, 
it is open Monday through Friday, excluding holidays. The telephone 
number for the Reading Room is (202) 566-1744. The Air and Radiation 
Docket and Information Center's Web site is http://www.epa.gov/oar/docket.html. The electronic mail (email) address for the Air and 
Radiation Docket is: a-and-r-Docket@epa.gov, the telephone number is 
(202) 566-1742, and the fax number is (202) 566-9744. An electronic 
version of the public docket is available through the federal 
government's electronic public docket and comment system. You may 
access EPA dockets at http://www.regulations.gov. After opening the 
www.regulations.gov Web site, enter EPA-HQ-OAR-2014-0060 in the ``Enter 
Keyword or ID'' fill-in box to view documents in the record. Although a 
part of the official docket, the public docket does not include 
Confidential Business Information (``CBI'') or other information whose 
disclosure is restricted by statute.
    EPA's Office of Transportation and Air Quality (``OTAQ'') maintains 
a Web page that contains general information on its review of 
California waiver and authorization requests. Included on that page are 
links to prior waiver Federal Register notices, some of which are cited 
in today's notice; the page can be accessed at http://www.epa.gov/otaq/cafr.htm.

FOR FURTHER INFORMATION CONTACT: David Dickinson, Attorney-Advisor, 
Compliance Division, Office of Transportation and Air Quality, U.S. 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW., 
Washington, DC 20460. Telephone: (202) 343-9256. Fax: (202) 343-2804. 
Email: dickinson.david@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    CARB first adopted its CHE regulation on December 31, 2006. The 
regulation applied to newly purchased, leased, or rented on- and off-
road vehicles and equipment, as well as to in-use on- and off-road 
vehicles and equipment with compression-ignition (CI) engines that 
operate at ports and intermodal rail yards.\1\ On February 21, 2012, 
EPA granted California a full waiver for those parts of the CHE 
regulation establishing emission standards for new on-road motor 
vehicles and full authorization for standards and other requirements 
related to the control of emissions affecting new and in-use nonroad 
engines.\2\ CARB formally adopted the CHE amendments on October 14, 
2012,\3\ and they are codified at title 13, California Code of 
Regulations (CCR), section 2479. The CHE amendments modify certain 
retrofit, operational, and compliance requirements; strengthen certain 
emission standards; and address definitions and provide other 
clarifying language. By letter dated May 16, 2013, CARB submitted a 
request to EPA pursuant to section 209(e) of the Act, seeking EPA's 
confirmation that certain CHE amendments fall within the scope of EPA's 
February 2012 authorization

[[Page 26250]]

and a full authorization for other CHE amendments. Those CHE amendments 
for which CARB sought within-the-scope confirmation are related to 
compliance flexibility and reduced compliance costs and include: 
Modification to retrofit requirements and operational practices; 
demonstration of emissions equivalency for alternative technology; and 
modification of certain compliance requirements. CARB sought a full 
authorization for the CHE amendments related to new, more stringent 
requirements and include: A new opacity based monitoring program for 
in-use nonroad vehicles and equipment; and, a new retrofit requirement 
for engines meeting the Tier 4 Family Emissions Limit standards.
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    \1\ The federal term ``nonroad'' and the California term ``off-
road'' are used interchangeably.
    \2\ 77 FR 9916 (February 21, 2012).
    \3\ CARB ``Resolution 11-30,'' September 22, 2011; CARB 
``Executive Order R-12-009,'' August 2, 2012.
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A. Clean Air Act Nonroad Engine and Vehicle Authorizations

    Section 209(e)(1) of the Act permanently preempts any state, or 
political subdivision thereof, from adopting or attempting to enforce 
any standard or other requirement relating to the control of emissions 
for certain new nonroad engines or vehicles.\4\ For all other nonroad 
engines (including ``non-new'' engines), states generally are preempted 
from adopting and enforcing standards and other requirements relating 
to the control of emissions, except that section 209(e)(2)(A) of the 
Act requires EPA, after notice and opportunity for public hearing, to 
authorize California to adopt and enforce such regulations unless EPA 
makes one of three enumerated findings. Specifically, EPA must deny 
authorization if the Administrator finds that (1) California's 
protectiveness determination (i.e., that California standards will be, 
in the aggregate, as protective of public health and welfare as 
applicable federal standards) is arbitrary and capricious, (2) 
California does not need such standards to meet compelling and 
extraordinary conditions, or (3) the California standards and 
accompanying enforcement procedures are not consistent with section 209 
of the Act.
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    \4\ States are expressly preempted from adopting or attempting 
to enforce any standard or other requirement relating to the control 
of emissions from new nonroad engines which are used in construction 
equipment or vehicles or used in farm equipment or vehicles and 
which are smaller than 175 horsepower. Such express preemption under 
section 209(e)(1) of the Act also applies to new locomotives or new 
engines used in locomotives.
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    On July 20, 1994, EPA promulgated a rule interpreting the three 
criteria set forth in section 209(e)(2)(A) that EPA must consider 
before granting any California authorization request for nonroad engine 
or vehicle emission standards.\5\ EPA revised these regulations in 
1997.\6\ As stated in the preamble to the 1994 rule, EPA historically 
has interpreted the consistency inquiry under the third criterion, 
outlined above and set forth in section 209(e)(2)(A)(iii), to require, 
at minimum, that California standards and enforcement procedures be 
consistent with section 209(a), section 209(e)(1), and section 
209(b)(1)(C) of the Act.\7\
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    \5\ See ``Air Pollution Control; Preemption of State Regulation 
for Nonroad Engine and Vehicle Standards,'' 59 FR 36969 (July 20, 
1994).
    \6\ See ``Control of Air Pollution: Emission Standards for New 
Nonroad Compression-Ignition Engines at or Above 37 Kilowatts; 
Preemption of State Regulation for Nonroad Engine and Vehicle 
Standards; Amendments to Rules,'' 62 FR 67733 (December 30, 1997). 
The applicable regulations are now found in 40 CFR part 1074, 
subpart B, section 1074.105.
    \7\ See supra note 12. EPA has interpreted 209(b)(1)(C) in the 
context of section 209(b) motor vehicle waivers.
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    In order to be consistent with section 209(a), California's nonroad 
standards and enforcement procedures must not apply to new motor 
vehicles or new motor vehicle engines. To be consistent with section 
209(e)(1), California's nonroad standards and enforcement procedures 
must not attempt to regulate engine categories that are permanently 
preempted from state regulation. To determine consistency with section 
209(b)(1)(C), EPA typically reviews nonroad authorization requests 
under the same ``consistency'' criteria that are applied to motor 
vehicle waiver requests under section 209(b)(1)(C). That provision 
provides that the Administrator shall not grant California a motor 
vehicle waiver if she finds that California ``standards and 
accompanying enforcement procedures are not consistent with section 
202(a)'' of the Act. Previous decisions granting waivers and 
authorizations have noted that state standards and enforcement 
procedures will be found to be inconsistent with section 202(a) if (1) 
there is inadequate lead time to permit the development of the 
necessary technology, giving appropriate consideration to the cost of 
compliance within that time, or (2) the federal and state testing 
procedures impose inconsistent certification requirements.
    In light of the similar language of sections 209(b) and 
209(e)(2)(A), EPA has reviewed California's requests for authorization 
of nonroad vehicle or engine standards under section 209(e)(2)(A) using 
the same principles that it has historically applied in reviewing 
requests for waivers of preemption for new motor vehicle or new motor 
vehicle engine standards under section 209(b).\8\ These principles 
include, among other things, that EPA should limit its inquiry to the 
three specific authorization criteria identified in section 
209(e)(2)(A),\9\ and that EPA should give substantial deference to the 
policy judgments California has made in adopting its regulations. In 
previous waiver decisions, EPA has stated that Congress intended EPA's 
review of California's decision-making be narrow. EPA has rejected 
arguments that are not specified in the statute as grounds for denying 
a waiver:
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    \8\ See Engine Manufacturers Association v. EPA, 88 F.3d 1075, 
1087 (D.C. Cir. 1996): ``. . . EPA was within the bounds of 
permissible construction in analogizing Sec.  209(e) on nonroad 
sources to Sec.  209(a) on motor vehicles.''
    \9\ See supra note 12, at 36983.

    The law makes it clear that the waiver requests cannot be denied 
unless the specific findings designated in the statute can properly 
be made. The issue of whether a proposed California requirement is 
likely to result in only marginal improvement in California air 
quality not commensurate with its costs or is otherwise an arguably 
unwise exercise of regulatory power is not legally pertinent to my 
decision under section 209, so long as the California requirement is 
consistent with section 202(a) and is more stringent than applicable 
Federal requirements in the sense that it may result in some further 
reduction in air pollution in California.\10\
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    \10\ ``Waiver of Application of Clean Air Act to California 
State Standards,'' 36 FR 17458 (Aug. 31, 1971). Note that the more 
stringent standard expressed here, in 1971, was superseded by the 
1977 amendments to section 209, which established that California 
must determine that its standards are, in the aggregate, at least as 
protective of public health and welfare as applicable Federal 
standards. In the 1990 amendments to section 209, Congress 
established section 209(e) and similar language in section 
209(e)(1)(i) pertaining to California's nonroad emission standards 
which California must determine to be, in the aggregate, at least as 
protective of public health and welfare as applicable federal 
standards.

This principle of narrow EPA review has been upheld by the U.S. Court 
of Appeals for the District of Columbia Circuit.\11\ Thus, EPA's 
consideration of all the evidence submitted concerning an authorization 
decision is circumscribed by its relevance to those questions that may 
be considered under section 209(e)(2)(A).
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    \11\ See, e.g., Motor and Equip. Mfrs Assoc. v. EPA, 627 F.2d 
1095 (D.C. Cir. 1979) (``MEMA I'').
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    If California amends regulations that were previously authorized by 
EPA, California may ask EPA to determine that the amendments are within 
the scope of the earlier authorization. A within-the-scope 
determination for such amendments is permissible without a full 
authorization review if three conditions are met. First, the amended 
regulations must not undermine California's previous determination that

[[Page 26251]]

its standards, in the aggregate, are as protective of public health and 
welfare as applicable federal standards. Second, the amended 
regulations must not affect consistency with section 209 of the Act, 
following the same criteria discussed above in the context of full 
authorizations. Third, the amended regulations must not raise any ``new 
issues'' affecting EPA's prior authorizations.\12\
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    \12\ See ``California State Motor Vehicle Pollution Control 
Standards; Amendments Within the Scope of Previous Waiver of Federal 
Preemption,'' 46 FR 36742 (July 15, 1981).
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B. Deference to California

    In previous waiver decisions, EPA has recognized that the intent of 
Congress in creating a limited review based on the section 209(b)(1) 
criteria was to ensure that the federal government did not second-guess 
state policy choices. As the agency explained in one prior waiver 
decision:

    It is worth noting * * * I would feel constrained to approve a 
California approach to the problem which I might also feel unable to 
adopt at the federal level in my own capacity as a regulator. The 
whole approach of the Clean Air Act is to force the development of 
new types of emission control technology where that is needed by 
compelling the industry to ``catch up'' to some degree with newly 
promulgated standards. Such an approach * * * may be attended with 
costs, in the shape of reduced product offering, or price or fuel 
economy penalties, and by risks that a wider number of vehicle 
classes may not be able to complete their development work in time. 
Since a balancing of these risks and costs against the potential 
benefits from reduced emissions is a central policy decision for any 
regulatory agency under the statutory scheme outlined above, I 
believe I am required to give very substantial deference to 
California's judgments on this score.\13\
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    \13\ 40 FR 23102, 23103-23104 (May 28, 1975).

    Similarly, EPA has stated that the text, structure, and history of 
the California waiver provision clearly indicate both a congressional 
intent and appropriate EPA practice of leaving the decision on 
``ambiguous and controversial matters of public policy'' to 
California's judgment.\14\ This interpretation is supported by relevant 
discussion in the House Committee Report for the 1977 amendments to the 
Clean Air Act.\15\ Congress had the opportunity through the 1977 
amendments to restrict the preexisting waiver provision, but elected 
instead to expand California's flexibility to adopt a complete program 
of motor vehicle emission controls. The report explains that the 
amendment is intended to ratify and strengthen the preexisting 
California waiver provision and to affirm the underlying intent of that 
provision, that is, to afford California the broadest possible 
discretion in selecting the best means to protect the health of its 
citizens and the public welfare.\16\
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    \14\ Id. at 23104; 58 FR 4166 (January 13, 1993).
    \15\ MEMA I, 627 F.2d at 1110 (citing H.R. Rep. No. 294, 95th 
Cong., 1st Sess. 301-302 (1977)).
    \16\ Id.
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C. Burden and Standard of Proof

    As the U.S. Court of Appeals for the D.C. Circuit has made clear in 
MEMA I, opponents of a waiver request by California bear the burden of 
showing that the statutory criteria for a denial of the request have 
been met:

    [T]he language of the statute and its legislative history 
indicate that California's regulations, and California's 
determinations that they must comply with the statute, when 
presented to the Administrator are presumed to satisfy the waiver 
requirements and that the burden of proving otherwise is on whoever 
attacks them. California must present its regulations and findings 
at the hearing and thereafter the parties opposing the waiver 
request bear the burden of persuading the Administrator that the 
waiver request should be denied.\17\

    \17\ MEMA I, supra note 19, at 1121.

The Administrator's burden, on the other hand, is to make a reasonable 
evaluation of the information in the record in coming to the waiver 
decision. As the court in MEMA I stated: ``here, too, if the 
Administrator ignores evidence demonstrating that the waiver should not 
be granted, or if he seeks to overcome that evidence with unsupported 
assumptions of his own, he runs the risk of having his waiver decision 
set aside as `arbitrary and capricious.' '' \18\ Therefore, the 
Administrator's burden is to act ``reasonably.'' \19\
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    \18\ Id. at 1126.
    \19\ Id. at 1126.
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    With regard to the standard of proof, the court in MEMA I explained 
that the Administrator's role in a section 209 proceeding is to:

    [. . .]consider all evidence that passes the threshold test of 
materiality and * * * thereafter assess such material evidence 
against a standard of proof to determine whether the parties 
favoring a denial of the waiver have shown that the factual 
circumstances exist in which Congress intended a denial of the 
waiver.\20\

    \20\ Id. at 1122.

In that decision, the court considered the standards of proof under 
section 209 for the two findings related to granting a waiver for an 
``accompanying enforcement procedure.'' Those findings involve: (1) 
Whether the enforcement procedures impact California's prior 
protectiveness determination for the associated standards, and (2) 
whether the procedures are consistent with section 202(a). The 
principles set forth by the court, however, are similarly applicable to 
an EPA review of a request for a waiver of preemption for a standard. 
The court instructed that ``the standard of proof must take account of 
the nature of the risk of error involved in any given decision, and it 
therefore varies with the finding involved. We need not decide how this 
standard operates in every waiver decision.'' \21\
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    \21\ Id.
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    With regard to the protectiveness finding, the court upheld the 
Administrator's position that, to deny a waiver, there must be ``clear 
and compelling evidence'' to show that proposed enforcement procedures 
undermine the protectiveness of California's standards.\22\ The court 
noted that this standard of proof also accords with the congressional 
intent to provide California with the broadest possible discretion in 
setting regulations it finds protective of the public health and 
welfare.\23\
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    \22\ Id.
    \23\ Id.
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    With respect to the consistency finding, the court did not 
articulate a standard of proof applicable to all proceedings, but found 
that the opponents of the waiver were unable to meet their burden of 
proof even if the standard were a mere preponderance of the evidence. 
Although MEMA I did not explicitly consider the standards of proof 
under section 209 concerning a waiver request for ``standards,'' as 
compared to a waiver request for accompanying enforcement procedures, 
there is nothing in the opinion to suggest that the court's analysis 
would not apply with equal force to such determinations. EPA's past 
waiver decisions have consistently made clear that: ``[E]ven in the two 
areas concededly reserved for Federal judgment by this legislation--the 
existence of `compelling and extraordinary' conditions and whether the 
standards are technologically feasible--Congress intended that the 
standards of EPA review of the State decision to be a narrow one.'' 
\24\
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    \24\ See, e.g., ``California State Motor Vehicle Pollution 
Control Standards; Waiver of Federal Preemption,'' 40 FR 23102 (May 
28, 1975), at 23103.
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D. EPA's Administrative Process in Consideration of California's CHE 
Amendment Request for Authorization

    On May 28, 2014, EPA published a Federal Register notice announcing 
its receipt of California's authorization

[[Page 26252]]

request. In that notice, EPA invited public comment on each of the CHE 
amendments and an opportunity to request a public hearing.\25\
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    \25\ See ``California State Nonroad Engine Pollution Control 
Standards; Mobile Cargo Handling Equipment at Ports and Intermodal 
Rail Yards Regulation; Request for Within-the-Scope and Full 
Authorization; Opportunity for Public Hearing and Comment,'' 79 FR 
30608 (May 28, 2014).
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    First, EPA requested comment on the CHE amendments, as follows: (1) 
Should California's CHE amendments be considered under the within-the-
scope analysis, or should they be considered under the full 
authorization criteria?; (2) If those amendments should be considered 
as a within-the-scope request, do they meet the criteria for EPA to 
grant a within-the-scope confirmation?; and (3) If the amendments 
should not be considered under the within-the-scope analysis, or in the 
event that EPA determines they are not within the scope of the previous 
authorization, do they meet the criteria for full authorization?
    EPA received one anonymous written comment that opposed ``any new 
Regulation or Rule promulgated by EPA on California State Non Road 
Engine Pollution Control Standards: Mobile Cargo Handling Equipment at 
Ports and Intermodal Rail Yards Regulations.'' \26\ EPA is not 
promulgating any regulations or rules regarding California's CHE 
regulations, but rather is adjudicating whether or not the amendments 
that CARB made to its own CHE regulations are within the scope of 
previous authorizations granted by EPA or fulfill the criteria for a 
full authorization under the Clean Air Act. EPA received no requests 
for a public hearing. Consequently, EPA did not hold a public hearing.
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    \26\ See EPA-HQ-OAR-2014-0060-0019.
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II. Discussion

    The CHE amendment package contains six categories of amendments. 
CARB seeks within-the-scope confirmation for the following amendments: 
(1) Modification to retrofit requirements; (2) modification of 
operation practices; (3) allowance of demonstration of emissions 
equivalency for alternative technology; and (4) modification of 
compliance requirements. CARB seeks a full authorization to enforce 
amendments that establish: (1) A new opacity based monitoring program; 
and (2) new retrofit requirements for engines meeting the Tier 4 Family 
Emission Limits standards.

A. Within-the-Scope Discussion

    California maintains that many of the CHE amendments were enacted 
to address a variety of implementation issues associated with the 
initial CHE regulations. CARB asserts that the amendments provide 
additional compliance flexibilities without sacrificing significant 
emission reductions.
    CARB's amendments to the retrofit requirements allow additional 
time for fleet owners/operators (fleets) to retrofit equipment for 
which no verified diesel emission control strategies (VDECS) are 
available. The retrofit amendments also add safety as a criterion for 
assessing VDECS availability, allow additional time to request a 
compliance date extension, and allow an extension of the time for the 
use of experimental diesel particulate matter emissions control 
strategies for the purpose of gathering verification data on such 
strategies.
    According to CARB, the amendments that modify the operational 
practice requirements involve four minor adjustments to the CHE 
regulations. These include a low-use compliance extension (a two-year 
extension for equipment that operates less than 200 hours per year), an 
allowance for cargo handling equipment other than yard trucks (``non-
truck CHE''), owned or leased by one party to be transferred to another 
location under certain limitations, an allowance for fleets to replace 
engines still under the original equipment manufacturer's warranty with 
replacement engines that meet the emission standards of the original 
engine, even when newer engine emission standards are in place for 
newly produced engines, and a new provision allowing fleets to rent 
non-compliant equipment in the event that compliant equipment is 
unavailable due to manufacturer delivery delays.
    The third set of amendments that CARB maintains are within the 
scope of the prior authorization establishes a compliance option that 
allows fleets to demonstrate emissions equivalency for alternative 
technology. CARB states that these amendments are designed to encourage 
introduction of new technologies such as hybrid and electric equipment.
    Finally, the fourth set of amendments modifies compliance 
requirements by establishing a compliance schedule that allows fleets 
to bring older engines into compliance first if owners and operators 
choose to do so, and by exempting equipment at rural low-throughput 
ports.\27\
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    \27\ The exemption applies if the average annual throughput of 
goods through a port is less than one million tons and the port is 
located more than 75 miles from an urban area.
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    CARB maintains that the amendments noted above meet all three 
within-the-scope criteria, i.e. that the amendments: (1) Do not 
undermine the original protectiveness determination underlying 
California's CHE regulations; (2) do not affect the consistency of the 
CHE regulations with section 209, and (3) do not raise any new issues 
affecting the prior authorizations.\28\ We received no adverse comments 
or evidence suggesting a within-the-scope analysis is inappropriate, or 
that these CHE amendments fail to meet any of the three criteria for 
within-the-scope confirmation.
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    \28\ Id. at 16.
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    With regard to the first within-the-scope prong, CARB maintains 
that the stringency of its emission standards is, in the aggregate, at 
least as protective of public health and welfare as applicable federal 
standards.\29\ CARB also notes that its amendments will not create any 
expected adverse environmental impacts.\30\ Finally, CARB notes that 
there can be no question that the CHE regulations are at least as 
protective of public health and welfare as applicable federal standards 
given that EPA is unable to regulate emissions from in-use nonroad 
engines and equipment and that no federally applicable regulations 
exist. EPA agrees that there are no federally applicable standards for 
in-use nonroad engines and that no evidence exists in the record to 
demonstrate that CARB's CHE regulations, in the aggregate, are less 
protective than applicable federal standards. Therefore, we cannot find 
that the CHE amendments, as noted, undermine the protectiveness 
determination made with regard to the original CHE authorization.
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    \29\ See CARB Board Resolution 11-30 (enclosure 4 of CARB's 
authorization request).
    \30\ See CARB Staff Report (enclosure 2 of CARB's authorization 
request).
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    With regard to the second within-the-scope prong (consistency with 
section 209), CARB maintains that the CHE amendments do not regulate 
new motor vehicles or motor vehicles engines and so are consistent with 
section 209(a). Likewise the CHE amendments do not regulate any of the 
permanently preempted categories of engines or vehicles, and so are 
consistent with section 209(e)(1). Finally, CARB maintains that the CHE 
amendments do not cause any technological feasibility issues or cause 
inconsistency between state and federal test procedures, per section 
209(b)(1)(C). CARB maintains that the CHE amendments, as noted, provide 
additional compliance flexibilities beyond the CHE regulations

[[Page 26253]]

already found to be technologically feasible. Because there is no 
evidence in the record to indicate that CARB's CHE amendments are 
inconsistent with section 209 we cannot find that the CHE amendments, 
as noted, are inconsistent with section 209.
    Third, California states that no new issues exist, and EPA has 
received no evidence to the contrary.\31\ We therefore do not find any 
new issues raised by the CHE amendments as noted.
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    \31\ CARB authorization support document at 14, docket entry 
EPA-HQ-OAR-2014-0060-0003.
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    Having received no contrary evidence regarding these amendments, we 
find that California has met the three criteria for a within-the-scope 
authorization approval, and these amendments are thus confirmed as 
within the scope of previous EPA authorizations of California's CHE 
regulations.

B. Full Authorization Discussion

    As noted above, CARB seeks a full authorization to enforce 
amendments that establish a new opacity based monitoring program and 
new retrofit requirements for engines meeting the Tier 4 Family 
Emission Limits standards.
    CARB's CHE amendments establish new in-use opacity standards and 
require owners/operators to conduct annual opacity monitoring of all 
CHE more than four years old from the date of its original manufacture 
to ensure proper operation and maintenance so that engines continue to 
perform as designed and certified. Retrofitted engines are similarly 
monitored to ensure that the engines continue to be in compliance with 
the VDECS executive order issued by CARB. Equipment found to be in 
excess of opacity standards would be required to receive maintenance 
and repair before being returned to service.
    Under the CHE regulation that EPA previously authorized, engine 
manufacturers are allowed some flexibility during periods in which 
emission standards are transitioning from one emission level (tier) to 
another emission level (tier). This flexibility allows engine 
manufacturers to certify a certain percentage of engines manufactured, 
and identified as being part of the more stringent tier, to emission 
levels that do not meet that more stringent tier. CARB established a 
family emission limit (FEL) alternate particulate matter (PM) emission 
standard (Tier 4 Alternate PM standard) that is essentially equivalent 
to the less stringent Tier 3 PM emission standard. The Tier 4 Alternate 
PM standard is about ten times higher than the otherwise applicable 
Tier 4 PM standard. Through inadvertent error by CARB, the CHE 
regulations allowed for in-use nonroad non-truck CHE to meet the 
applicable upgrade requirements by meeting the Tier 4 Alternate PM 
standard rather than the Tier 4 PM standard. CARB's CHE amendments 
correct this error by requiring fleets that used the FEL-certified 
engines to retrofit these engines with the highest available (best--
Tier 4) VDECS within one year.
    With regard to the first full authorization prong at section 
209(e)(2)(i) of the Act, CARB maintains that the stringency of its 
emission standards is, in the aggregate, at least as protective of 
public health and welfare as applicable federal standards.\32\ CARB 
also notes that its amendments will not create any expected adverse 
environmental impacts.\33\ Finally, CARB notes that there can be no 
question that its CHE regulation is at least as protective of public 
health and welfare as applicable federal standards given that EPA is 
unable to regulate emissions from in-use nonroad engines and equipment 
and that no federally applicable regulations exist. EPA agrees that 
there are no federally applicable standards for in-use nonroad engines 
and that no evidence exists in the record to demonstrate that CARB's 
CHE regulation is less protective, in the aggregate, than applicable 
federal standards. Accordingly, we cannot find that CARB's 
protectiveness finding is arbitrary and capricious.
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    \32\ See CARB Board Resolution 11-30 (enclosure 4 of CARB's 
authorization request).
    \33\ See CARB Staff Report (enclosure 2 of CARB's authorization 
request).
---------------------------------------------------------------------------

    With regard to the second authorization criterion, section 
209(e)(2)(A)(ii) instructs that EPA cannot grant an authorization if 
the Agency finds that California ``does not need such California 
standards to meet compelling and extraordinary conditions.'' EPA's 
inquiry under this second criterion (found both in paragraphs 
209(b)(1)(B) and 209(e)(2)(A)(ii)) has been to determine whether 
California needs its own mobile source pollution program (i.e. set of 
standards) for the relevant class or category of vehicles or engines to 
meet compelling and extraordinary conditions, and not whether the 
specific standards that are the subject of the authorization or waiver 
request are necessary to meet such conditions.\34\ CARB notes that in 
adopting its CHE amendments the CARB Board confirmed its longstanding 
position that California continues to need its own nonroad engine 
emission program to meet serious air pollution problems.\35\ Based on 
the lack of evidence in the record or any suggestion that CARB no 
longer has a need for its standards to meet compelling and 
extraordinary conditions, we have no reason to deny CARB's 
authorization request based on this second authorization criterion.
---------------------------------------------------------------------------

    \34\ See 74 FR 32744, 32761 (July 8, 2009); 49 FR 18887, 18889-
18890 (May 3, 1984).
    \35\ See CARB's Authorization Support document at 15, citing 
CARB Board Resolution 11-30.
---------------------------------------------------------------------------

    Section 209(e)(2)(A)(iii) of the Act instructs that EPA cannot 
grant an authorization if California's standards and enforcement 
procedures are not consistent with ``this section.'' As described 
above, EPA's section 209(e) rule states that the Administrator shall 
not grant authorization to California if she finds (among other tests) 
that the ``California standards and accompanying enforcement procedures 
are not consistent with section 209.'' EPA has interpreted the 
requirement to mean that California standards and accompanying 
enforcement procedures must be consistent with at least section 209(a), 
section 209(e)(1), and section 209(b)(1)(C), as EPA has interpreted 
this last subsection in the context of motor vehicle waivers.\36\ Thus, 
this can be viewed as a three-pronged test.
---------------------------------------------------------------------------

    \36\ See 59 FR 36969 (July 20, 1994).
---------------------------------------------------------------------------

1. Consistency With Section 209(a)
    Section 209(a) of the Clean Air Act prohibits states or any 
political subdivisions of states from setting emission standards for 
new motor vehicles or new motor vehicle engines. Section 209(a) is 
modified in turn by section 209(b) which allows California to set such 
standards if other statutory requirements are met. To find a standard 
to be inconsistent with section 209(a) for purposes of section 
209(e)(2)(A)(iii), EPA must find that the standard in question actually 
regulates new motor vehicles or new motor vehicle engines. In its 
authorization request, CARB stated that by definition, the CHE 
amendments do not regulate new motor vehicles or new motor vehicle 
engines. EPA received no comments to suggest the contrary. Therefore, 
EPA cannot deny California's request based on the CHE amendments being 
inconsistent with section 209(a) of the Act.
2. Consistency With Section 209(e)(1)
    To be consistent with section 209(e)(1), California's standards or 
other requirements relating to the control of emissions must not relate 
to new engines which are used in farm or construction equipment or 
vehicles and which are smaller than 175 horsepower

[[Page 26254]]

(hp), and new locomotives or new engines used in locomotives.
    CARB maintains that its CHE amendments do not regulate new engines 
which are used in construction or farm equipment or vehicles below 175 
hp, nor do the CHE amendments regulate new locomotives or new engines 
used in locomotives.
    In light of the lack of contrary information in the record, EPA 
cannot make a finding that CARB's CHE amendments are inconsistent with 
section 209(e)(1). Therefore, EPA cannot deny CARB's authorization 
request on this basis.
3. Consistency With Section 209(b)(1)(C)
    The requirement that California's standards be consistent with 
section 209(b)(1)(C) of the Clean Air Act effectively requires 
consistency with section 202(a) of the Act. To determine this 
consistency, EPA has applied to California nonroad standards the same 
test it has used previously for California motor vehicle standards; 
namely, state standards are inconsistent with section 202(a) of the Act 
if there is inadequate lead-time to permit the development of 
technology necessary to meet those requirements, giving appropriate 
consideration to the cost of compliance within that timeframe. 
California's accompanying enforcement procedures would also be 
inconsistent with section 202(a) if federal and California test 
procedures conflicted. The scope of EPA's review of whether 
California's action is consistent with section 202(a) is narrow. The 
determination is limited to whether those opposed to the authorization 
or waiver have met their burden of establishing that California's 
standards are technologically infeasible, or that California's test 
procedures impose requirements inconsistent with the federal test 
procedures.\37\
---------------------------------------------------------------------------

    \37\ See, e.g., Motor and Equip. Mfrs Assoc. v. EPA, 627 F.2d 
1095 (D.C. Cir. 1979) (``MEMA I'').
---------------------------------------------------------------------------

    CARB states that the smoke opacity test is a quick and inexpensive 
way to detect if an engine is emitting excessive emissions. CARB 
maintains that the smoke opacity test is technologically feasible and 
that compliance with the standards does not require the incorporation 
of any new technology not already required by existing regulations that 
have previously received an EPA authorization. CARB also states that 
the clarification of the Tier 4 FEL emission standards provisions are 
technologically feasible and were designed to correct an unintentional 
error and to clarify the original intent of the previously authorized 
CHE regulations. The CHE amendments only require retrofit to the Tier 4 
emission level if appropriate technology is available and require the 
retrofit be performed within one year. EPA did not receive any comment 
or evidence to suggest that either of the two amendments for which CARB 
requested authorization is technologically infeasible.
    Consequently, based on the record, EPA is unable to make the 
finding that the CHE amendments are not technologically feasible with 
the available lead time giving consideration to the cost of compliance.
    EPA received no comments suggesting that CARB's CHE amendments pose 
any test procedure consistency problem. Therefore, based on the record, 
EPA cannot find that CARB's testing procedures are inconsistent with 
section 202(a) and cannot deny CARB's request based on this criterion.

III. Decision

    The Administrator has delegated the authority to grant California 
section 209(e) authorizations to the Assistant Administrator for Air 
and Radiation. After evaluating CARB's amendments to its CHE 
regulations described above and CARB's submissions for EPA review, EPA 
is taking the following actions.
    First, EPA is granting a within-the-scope authorization for the CHE 
amendments that modify the retrofit requirements, modify operational 
practices, allow demonstration of emissions equivalency for alternative 
technology, and modify compliance requirements.
    Second, EPA is granting a full authorization for the CHE amendments 
that establish a new opacity based monitoring program and new retrofit 
requirements for engines meeting the Tier 4 FEL standards.
    This decision will affect persons in California and those 
manufacturers and/or owners/operators nationwide who must comply with 
California's requirements. In addition, because other states may adopt 
California's standards for which a section 209(e)(2)(A) authorization 
has been granted if certain criteria are met, this decision would also 
affect those states and those persons in such states. See CAA section 
209(e)(2)(B). For these reasons, EPA determines and finds that this is 
a final action of national applicability, and also a final action of 
nationwide scope or effect for purposes of section 307(b)(1) of the 
Act. Pursuant to section 307(b)(1) of the Act, judicial review of this 
final action may be sought only in the United States Court of Appeals 
for the District of Columbia Circuit. Petitions for review must be 
filed by July 6, 2015. Judicial review of this final action may not be 
obtained in subsequent enforcement proceedings, pursuant to section 
307(b)(2) of the Act.

IV. Statutory and Executive Order Reviews

    As with past authorization and waiver decisions, this action is not 
a rule as defined by Executive Order 12866. Therefore, it is exempt 
from review by the Office of Management and Budget as required for 
rules and regulations by Executive Order 12866.
    In addition, this action is not a rule as defined in the Regulatory 
Flexibility Act, 5 U.S.C. 601(2). Therefore, EPA has not prepared a 
supporting regulatory flexibility analysis addressing the impact of 
this action on small business entities.
    Further, the Congressional Review Act, 5 U.S.C. 801, et seq., as 
added by the Small Business Regulatory Enforcement Fairness Act of 
1996, does not apply because this action is not a rule for purposes of 
5 U.S.C. 804(3).

    Dated: April 29, 2015.
Janet G. McCabe,
Acting Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2015-11034 Filed 5-6-15; 8:45 am]
 BILLING CODE 6560-50-P



                                                                                        Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices                                                                      26249

                                                  the Commission’s Web site at http://                             (202) 502–8659 (TTY). A copy is also                             related to this or other pending projects.
                                                  www.ferc.gov using the ‘‘eLibrary’’ link.                        available for inspection and                                     For assistance, contact FERC Online
                                                  Enter the docket number excluding the                            reproduction at the address in item (h)                          Support.
                                                  last three digits in the docket number                           above.                                                             n. Procedural Schedule: The
                                                  field to access the document. For                                  m. You may also register online at                             application will be processed according
                                                  assistance, please contact FERC Online                           http://www.ferc.gov/docs-filing/                                 to the following preliminary Hydro
                                                  Support at FERCOnlineSupport@                                    esubscription.asp to be notified via                             Licensing Schedule. Revisions to the
                                                  ferc.gov, (866) 208–3676 (toll free), or                         email of new filings and issuances                               schedule may be made as appropriate.

                                                                                                                            Milestone                                                                                      Target date

                                                  Notice of Acceptance/Notice of Ready for Environmental Analysis ..........................................................................................           July 2015
                                                  Filing of recommendations, preliminary terms and conditions, and fishway prescriptions .......................................................                       September 2015
                                                  Commission issues Environmental Assessment (EA) ...............................................................................................................      December 2015
                                                  Comments on EA, modified terms and conditions ....................................................................................................................   January 2016



                                                    o. Final amendments to the                                     ADDRESSES:   EPA has established a                               accessed at http://www.epa.gov/otaq/
                                                  application must be filed with the                               docket for this action under Docket ID                           cafr.htm.
                                                  Commission no later than 30 days from                            EPA–HQ–OAR–2014–0060. All                                        FOR FURTHER INFORMATION CONTACT:
                                                  the issuance date of the notice of ready                         documents relied upon in making this                             David Dickinson, Attorney-Advisor,
                                                  for environmental analysis.                                      decision, including those submitted to                           Compliance Division, Office of
                                                    Dated: May 1, 2015.                                            EPA by CARB, are contained in the                                Transportation and Air Quality, U.S.
                                                  Kimberly D. Bose,                                                public docket. Publicly available docket                         Environmental Protection Agency, 1200
                                                  Secretary.
                                                                                                                   materials are available either                                   Pennsylvania Ave. NW., Washington,
                                                                                                                   electronically through                                           DC 20460. Telephone: (202) 343–9256.
                                                  [FR Doc. 2015–10975 Filed 5–6–15; 8:45 am]
                                                                                                                   www.regulations.gov or in hard copy at                           Fax: (202) 343–2804. Email:
                                                  BILLING CODE 6717–01–P
                                                                                                                   the Air and Radiation Docket in the EPA                          dickinson.david@epa.gov.
                                                                                                                   Headquarters Library, EPA West                                   SUPPLEMENTARY INFORMATION:
                                                                                                                   Building, Room 3334, located at 1301
                                                  ENVIRONMENTAL PROTECTION                                         Constitution Avenue NW., Washington,                             I. Background
                                                  AGENCY                                                           DC. The Public Reading Room is open                                 CARB first adopted its CHE regulation
                                                  [EPA–HQ–OAR–2014–0060; FRL–9927–30–                              to the public on all federal government                          on December 31, 2006. The regulation
                                                  OAR]                                                             working days from 8:30 a.m. to 4:30                              applied to newly purchased, leased, or
                                                                                                                   p.m.; generally, it is open Monday                               rented on- and off-road vehicles and
                                                  California State Nonroad Engine                                  through Friday, excluding holidays. The                          equipment, as well as to in-use on- and
                                                  Pollution Control Standards; Mobile                              telephone number for the Reading Room                            off-road vehicles and equipment with
                                                  Cargo Handling Equipment at Ports                                is (202) 566–1744. The Air and                                   compression-ignition (CI) engines that
                                                  and Intermodal Rail Yards Regulations;                           Radiation Docket and Information                                 operate at ports and intermodal rail
                                                  Notice of Decision                                               Center’s Web site is http://www.epa.gov/                         yards.1 On February 21, 2012, EPA
                                                  AGENCY: Environmental Protection                                 oar/docket.html. The electronic mail                             granted California a full waiver for those
                                                  Agency (EPA).                                                    (email) address for the Air and                                  parts of the CHE regulation establishing
                                                  ACTION: Notice of decision.
                                                                                                                   Radiation Docket is: a-and-r-Docket@                             emission standards for new on-road
                                                                                                                   epa.gov, the telephone number is (202)                           motor vehicles and full authorization for
                                                  SUMMARY:     The Environmental Protection                        566–1742, and the fax number is (202)                            standards and other requirements
                                                  Agency (‘‘EPA’’) is granting the                                 566–9744. An electronic version of the                           related to the control of emissions
                                                  California Air Resources Board’s                                 public docket is available through the                           affecting new and in-use nonroad
                                                  (‘‘CARB’’) request for authorization of                          federal government’s electronic public                           engines.2 CARB formally adopted the
                                                  amendments to its mobile cargo                                   docket and comment system. You may                               CHE amendments on October 14, 2012,3
                                                  handling equipment at ports and                                  access EPA dockets at http://                                    and they are codified at title 13,
                                                  intermodal rail yards regulations (‘‘CHE                         www.regulations.gov. After opening the                           California Code of Regulations (CCR),
                                                  amendments’’). EPA is also confirming                            www.regulations.gov Web site, enter                              section 2479. The CHE amendments
                                                  that certain CHE amendments are                                  EPA–HQ–OAR–2014–0060 in the ‘‘Enter                              modify certain retrofit, operational, and
                                                  within the scope of prior EPA                                    Keyword or ID’’ fill-in box to view                              compliance requirements; strengthen
                                                  authorizations. CARB’s mobile cargo                              documents in the record. Although a                              certain emission standards; and address
                                                  handling equipment at ports and                                  part of the official docket, the public                          definitions and provide other clarifying
                                                  intermodal rail yard regulations apply to                        docket does not include Confidential                             language. By letter dated May 16, 2013,
                                                  all newly purchased, leased or rented                            Business Information (‘‘CBI’’) or other                          CARB submitted a request to EPA
                                                  on- and off-road vehicles and                                    information whose disclosure is                                  pursuant to section 209(e) of the Act,
                                                  equipment, as well as in-use on- and off-                        restricted by statute.                                           seeking EPA’s confirmation that certain
                                                  road vehicles and equipment, with                                                                                                 CHE amendments fall within the scope
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                                                                                                                      EPA’s Office of Transportation and
                                                  compression-ignition engines that                                Air Quality (‘‘OTAQ’’) maintains a Web                           of EPA’s February 2012 authorization
                                                  operate at ports and intermodal rail                             page that contains general information
                                                  yards. This decision is issued under the                         on its review of California waiver and                             1 The federal term ‘‘nonroad’’ and the California

                                                  authority of the Clean Air Act (‘‘CAA’’                                                                                           term ‘‘off-road’’ are used interchangeably.
                                                                                                                   authorization requests. Included on that                           2 77 FR 9916 (February 21, 2012).
                                                  or ‘‘Act’’).                                                     page are links to prior waiver Federal                             3 CARB ‘‘Resolution 11–30,’’ September 22, 2011;
                                                  DATES: Petitions for review must be filed                        Register notices, some of which are                              CARB ‘‘Executive Order R–12–009,’’ August 2,
                                                  by July 6, 2015.                                                 cited in today’s notice; the page can be                         2012.



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                                                  26250                           Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices

                                                  and a full authorization for other CHE                  nonroad engine or vehicle emission                     under section 209(b).8 These principles
                                                  amendments. Those CHE amendments                        standards.5 EPA revised these                          include, among other things, that EPA
                                                  for which CARB sought within-the-                       regulations in 1997.6 As stated in the                 should limit its inquiry to the three
                                                  scope confirmation are related to                       preamble to the 1994 rule, EPA                         specific authorization criteria identified
                                                  compliance flexibility and reduced                      historically has interpreted the                       in section 209(e)(2)(A),9 and that EPA
                                                  compliance costs and include:                           consistency inquiry under the third                    should give substantial deference to the
                                                  Modification to retrofit requirements                   criterion, outlined above and set forth in             policy judgments California has made in
                                                  and operational practices;                              section 209(e)(2)(A)(iii), to require, at              adopting its regulations. In previous
                                                  demonstration of emissions equivalency                  minimum, that California standards and                 waiver decisions, EPA has stated that
                                                  for alternative technology; and                         enforcement procedures be consistent                   Congress intended EPA’s review of
                                                  modification of certain compliance                      with section 209(a), section 209(e)(1),                California’s decision-making be narrow.
                                                  requirements. CARB sought a full                        and section 209(b)(1)(C) of the Act.7                  EPA has rejected arguments that are not
                                                  authorization for the CHE amendments                      In order to be consistent with section               specified in the statute as grounds for
                                                  related to new, more stringent                          209(a), California’s nonroad standards                 denying a waiver:
                                                  requirements and include: A new                         and enforcement procedures must not                       The law makes it clear that the waiver
                                                  opacity based monitoring program for                    apply to new motor vehicles or new                     requests cannot be denied unless the specific
                                                  in-use nonroad vehicles and equipment;                  motor vehicle engines. To be consistent                findings designated in the statute can
                                                  and, a new retrofit requirement for                     with section 209(e)(1), California’s                   properly be made. The issue of whether a
                                                  engines meeting the Tier 4 Family                       nonroad standards and enforcement                      proposed California requirement is likely to
                                                                                                          procedures must not attempt to regulate                result in only marginal improvement in
                                                  Emissions Limit standards.                                                                                     California air quality not commensurate with
                                                                                                          engine categories that are permanently
                                                  A. Clean Air Act Nonroad Engine and                                                                            its costs or is otherwise an arguably unwise
                                                                                                          preempted from state regulation. To
                                                  Vehicle Authorizations                                                                                         exercise of regulatory power is not legally
                                                                                                          determine consistency with section                     pertinent to my decision under section 209,
                                                     Section 209(e)(1) of the Act                         209(b)(1)(C), EPA typically reviews                    so long as the California requirement is
                                                  permanently preempts any state, or                      nonroad authorization requests under                   consistent with section 202(a) and is more
                                                  political subdivision thereof, from                     the same ‘‘consistency’’ criteria that are             stringent than applicable Federal
                                                  adopting or attempting to enforce any                   applied to motor vehicle waiver                        requirements in the sense that it may result
                                                                                                          requests under section 209(b)(1)(C).                   in some further reduction in air pollution in
                                                  standard or other requirement relating
                                                                                                          That provision provides that the                       California.10
                                                  to the control of emissions for certain
                                                  new nonroad engines or vehicles.4 For                   Administrator shall not grant California               This principle of narrow EPA review
                                                  all other nonroad engines (including                    a motor vehicle waiver if she finds that               has been upheld by the U.S. Court of
                                                  ‘‘non-new’’ engines), states generally are              California ‘‘standards and                             Appeals for the District of Columbia
                                                  preempted from adopting and enforcing                   accompanying enforcement procedures                    Circuit.11 Thus, EPA’s consideration of
                                                  standards and other requirements                        are not consistent with section 202(a)’’               all the evidence submitted concerning
                                                  relating to the control of emissions,                   of the Act. Previous decisions granting                an authorization decision is
                                                  except that section 209(e)(2)(A) of the                 waivers and authorizations have noted                  circumscribed by its relevance to those
                                                  Act requires EPA, after notice and                      that state standards and enforcement                   questions that may be considered under
                                                  opportunity for public hearing, to                      procedures will be found to be                         section 209(e)(2)(A).
                                                  authorize California to adopt and                       inconsistent with section 202(a) if (1)                   If California amends regulations that
                                                  enforce such regulations unless EPA                     there is inadequate lead time to permit                were previously authorized by EPA,
                                                  makes one of three enumerated findings.                 the development of the necessary                       California may ask EPA to determine
                                                  Specifically, EPA must deny                             technology, giving appropriate                         that the amendments are within the
                                                  authorization if the Administrator finds                consideration to the cost of compliance                scope of the earlier authorization. A
                                                  that (1) California’s protectiveness                    within that time, or (2) the federal and               within-the-scope determination for such
                                                  determination (i.e., that California                    state testing procedures impose                        amendments is permissible without a
                                                                                                          inconsistent certification requirements.               full authorization review if three
                                                  standards will be, in the aggregate, as
                                                                                                            In light of the similar language of                  conditions are met. First, the amended
                                                  protective of public health and welfare
                                                                                                          sections 209(b) and 209(e)(2)(A), EPA                  regulations must not undermine
                                                  as applicable federal standards) is
                                                                                                          has reviewed California’s requests for                 California’s previous determination that
                                                  arbitrary and capricious, (2) California
                                                  does not need such standards to meet                    authorization of nonroad vehicle or
                                                                                                                                                                   8 See Engine Manufacturers Association v. EPA,
                                                  compelling and extraordinary                            engine standards under section
                                                                                                                                                                 88 F.3d 1075, 1087 (D.C. Cir. 1996): ‘‘. . . EPA was
                                                  conditions, or (3) the California                       209(e)(2)(A) using the same principles                 within the bounds of permissible construction in
                                                  standards and accompanying                              that it has historically applied in                    analogizing § 209(e) on nonroad sources to § 209(a)
                                                  enforcement procedures are not                          reviewing requests for waivers of                      on motor vehicles.’’
                                                                                                                                                                   9 See supra note 12, at 36983.
                                                  consistent with section 209 of the Act.                 preemption for new motor vehicle or
                                                                                                                                                                   10 ‘‘Waiver of Application of Clean Air Act to
                                                     On July 20, 1994, EPA promulgated a                  new motor vehicle engine standards                     California State Standards,’’ 36 FR 17458 (Aug. 31,
                                                  rule interpreting the three criteria set                                                                       1971). Note that the more stringent standard
                                                                                                            5 See ‘‘Air Pollution Control; Preemption of State
                                                  forth in section 209(e)(2)(A) that EPA                                                                         expressed here, in 1971, was superseded by the
                                                                                                          Regulation for Nonroad Engine and Vehicle              1977 amendments to section 209, which established
                                                  must consider before granting any                       Standards,’’ 59 FR 36969 (July 20, 1994).              that California must determine that its standards
                                                  California authorization request for                      6 See ‘‘Control of Air Pollution: Emission           are, in the aggregate, at least as protective of public
                                                                                                          Standards for New Nonroad Compression-Ignition         health and welfare as applicable Federal standards.
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                                                     4 States are expressly preempted from adopting or    Engines at or Above 37 Kilowatts; Preemption of        In the 1990 amendments to section 209, Congress
                                                  attempting to enforce any standard or other             State Regulation for Nonroad Engine and Vehicle        established section 209(e) and similar language in
                                                  requirement relating to the control of emissions        Standards; Amendments to Rules,’’ 62 FR 67733          section 209(e)(1)(i) pertaining to California’s
                                                  from new nonroad engines which are used in              (December 30, 1997). The applicable regulations are    nonroad emission standards which California must
                                                  construction equipment or vehicles or used in farm      now found in 40 CFR part 1074, subpart B, section      determine to be, in the aggregate, at least as
                                                  equipment or vehicles and which are smaller than        1074.105.                                              protective of public health and welfare as
                                                  175 horsepower. Such express preemption under             7 See supra note 12. EPA has interpreted             applicable federal standards.
                                                  section 209(e)(1) of the Act also applies to new        209(b)(1)(C) in the context of section 209(b) motor      11 See, e.g., Motor and Equip. Mfrs Assoc. v. EPA,

                                                  locomotives or new engines used in locomotives.         vehicle waivers.                                       627 F.2d 1095 (D.C. Cir. 1979) (‘‘MEMA I’’).



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                                                                                  Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices                                                      26251

                                                  its standards, in the aggregate, are as                 that the amendment is intended to ratify                 procedures impact California’s prior
                                                  protective of public health and welfare                 and strengthen the preexisting                           protectiveness determination for the
                                                  as applicable federal standards. Second,                California waiver provision and to                       associated standards, and (2) whether
                                                  the amended regulations must not affect                 affirm the underlying intent of that                     the procedures are consistent with
                                                  consistency with section 209 of the Act,                provision, that is, to afford California                 section 202(a). The principles set forth
                                                  following the same criteria discussed                   the broadest possible discretion in                      by the court, however, are similarly
                                                  above in the context of full                            selecting the best means to protect the                  applicable to an EPA review of a request
                                                  authorizations. Third, the amended                      health of its citizens and the public                    for a waiver of preemption for a
                                                  regulations must not raise any ‘‘new                    welfare.16                                               standard. The court instructed that ‘‘the
                                                  issues’’ affecting EPA’s prior                                                                                   standard of proof must take account of
                                                                                                          C. Burden and Standard of Proof                          the nature of the risk of error involved
                                                  authorizations.12
                                                                                                            As the U.S. Court of Appeals for the                   in any given decision, and it therefore
                                                  B. Deference to California                              D.C. Circuit has made clear in MEMA I,                   varies with the finding involved. We
                                                    In previous waiver decisions, EPA has                 opponents of a waiver request by                         need not decide how this standard
                                                  recognized that the intent of Congress in               California bear the burden of showing                    operates in every waiver decision.’’ 21
                                                  creating a limited review based on the                  that the statutory criteria for a denial of                 With regard to the protectiveness
                                                  section 209(b)(1) criteria was to ensure                the request have been met:                               finding, the court upheld the
                                                  that the federal government did not                       [T]he language of the statute and its
                                                                                                                                                                   Administrator’s position that, to deny a
                                                  second-guess state policy choices. As                   legislative history indicate that California’s           waiver, there must be ‘‘clear and
                                                  the agency explained in one prior                       regulations, and California’s determinations             compelling evidence’’ to show that
                                                  waiver decision:                                        that they must comply with the statute, when             proposed enforcement procedures
                                                                                                          presented to the Administrator are presumed              undermine the protectiveness of
                                                     It is worth noting * * * I would feel
                                                  constrained to approve a California approach
                                                                                                          to satisfy the waiver requirements and that              California’s standards.22 The court
                                                                                                          the burden of proving otherwise is on                    noted that this standard of proof also
                                                  to the problem which I might also feel unable
                                                                                                          whoever attacks them. California must                    accords with the congressional intent to
                                                  to adopt at the federal level in my own
                                                                                                          present its regulations and findings at the              provide California with the broadest
                                                  capacity as a regulator. The whole approach
                                                                                                          hearing and thereafter the parties opposing
                                                  of the Clean Air Act is to force the                                                                             possible discretion in setting regulations
                                                                                                          the waiver request bear the burden of
                                                  development of new types of emission
                                                                                                          persuading the Administrator that the waiver             it finds protective of the public health
                                                  control technology where that is needed by                                                                       and welfare.23
                                                                                                          request should be denied.17
                                                  compelling the industry to ‘‘catch up’’ to                                                                          With respect to the consistency
                                                  some degree with newly promulgated                      The Administrator’s burden, on the                       finding, the court did not articulate a
                                                  standards. Such an approach * * * may be                other hand, is to make a reasonable                      standard of proof applicable to all
                                                  attended with costs, in the shape of reduced            evaluation of the information in the                     proceedings, but found that the
                                                  product offering, or price or fuel economy              record in coming to the waiver decision.
                                                  penalties, and by risks that a wider number                                                                      opponents of the waiver were unable to
                                                                                                          As the court in MEMA I stated: ‘‘here,                   meet their burden of proof even if the
                                                  of vehicle classes may not be able to
                                                  complete their development work in time.                too, if the Administrator ignores                        standard were a mere preponderance of
                                                  Since a balancing of these risks and costs              evidence demonstrating that the waiver                   the evidence. Although MEMA I did not
                                                  against the potential benefits from reduced             should not be granted, or if he seeks to                 explicitly consider the standards of
                                                  emissions is a central policy decision for any          overcome that evidence with                              proof under section 209 concerning a
                                                  regulatory agency under the statutory scheme            unsupported assumptions of his own,                      waiver request for ‘‘standards,’’ as
                                                  outlined above, I believe I am required to              he runs the risk of having his waiver                    compared to a waiver request for
                                                  give very substantial deference to California’s         decision set aside as ‘arbitrary and                     accompanying enforcement procedures,
                                                  judgments on this score.13                              capricious.’ ’’ 18 Therefore, the                        there is nothing in the opinion to
                                                    Similarly, EPA has stated that the                    Administrator’s burden is to act                         suggest that the court’s analysis would
                                                  text, structure, and history of the                     ‘‘reasonably.’’ 19                                       not apply with equal force to such
                                                  California waiver provision clearly                        With regard to the standard of proof,                 determinations. EPA’s past waiver
                                                  indicate both a congressional intent and                the court in MEMA I explained that the                   decisions have consistently made clear
                                                  appropriate EPA practice of leaving the                 Administrator’s role in a section 209                    that: ‘‘[E]ven in the two areas
                                                  decision on ‘‘ambiguous and                             proceeding is to:                                        concededly reserved for Federal
                                                  controversial matters of public policy’’                  [. . .]consider all evidence that passes the           judgment by this legislation—the
                                                  to California’s judgment.14 This                        threshold test of materiality and * * *                  existence of ‘compelling and
                                                  interpretation is supported by relevant                 thereafter assess such material evidence                 extraordinary’ conditions and whether
                                                  discussion in the House Committee                       against a standard of proof to determine                 the standards are technologically
                                                  Report for the 1977 amendments to the                   whether the parties favoring a denial of the             feasible—Congress intended that the
                                                  Clean Air Act.15 Congress had the                       waiver have shown that the factual                       standards of EPA review of the State
                                                                                                          circumstances exist in which Congress                    decision to be a narrow one.’’ 24
                                                  opportunity through the 1977
                                                                                                          intended a denial of the waiver.20
                                                  amendments to restrict the preexisting                                                                           D. EPA’s Administrative Process in
                                                  waiver provision, but elected instead to                In that decision, the court considered
                                                                                                                                                                   Consideration of California’s CHE
                                                  expand California’s flexibility to adopt a              the standards of proof under section 209
                                                                                                                                                                   Amendment Request for Authorization
                                                  complete program of motor vehicle                       for the two findings related to granting
                                                  emission controls. The report explains                  a waiver for an ‘‘accompanying                             On May 28, 2014, EPA published a
                                                                                                                                                                   Federal Register notice announcing its
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                                                                                                          enforcement procedure.’’ Those findings
                                                    12 See ‘‘California State Motor Vehicle Pollution     involve: (1) Whether the enforcement                     receipt of California’s authorization
                                                  Control Standards; Amendments Within the Scope
                                                  of Previous Waiver of Federal Preemption,’’ 46 FR        16 Id.                                                    21 Id.
                                                  36742 (July 15, 1981).                                                                                             22 Id.
                                                                                                           17 MEMA    I, supra note 19, at 1121.
                                                    13 40 FR 23102, 23103–23104 (May 28, 1975).                                                                      23 Id.
                                                                                                           18 Id. at 1126.
                                                    14 Id. at 23104; 58 FR 4166 (January 13, 1993).                                                                  24 See, e.g., ‘‘California State Motor Vehicle
                                                                                                           19 Id. at 1126.
                                                    15 MEMA I, 627 F.2d at 1110 (citing H.R. Rep. No.                                                              Pollution Control Standards; Waiver of Federal
                                                  294, 95th Cong., 1st Sess. 301–302 (1977)).              20 Id.   at 1122.                                       Preemption,’’ 40 FR 23102 (May 28, 1975), at 23103.



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                                                  26252                           Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices

                                                  request. In that notice, EPA invited                    A. Within-the-Scope Discussion                           CARB maintains that the amendments
                                                  public comment on each of the CHE                          California maintains that many of the              noted above meet all three within-the-
                                                  amendments and an opportunity to                        CHE amendments were enacted to                        scope criteria, i.e. that the amendments:
                                                  request a public hearing.25                             address a variety of implementation                   (1) Do not undermine the original
                                                                                                          issues associated with the initial CHE                protectiveness determination
                                                    First, EPA requested comment on the
                                                                                                          regulations. CARB asserts that the                    underlying California’s CHE regulations;
                                                  CHE amendments, as follows: (1)
                                                                                                          amendments provide additional                         (2) do not affect the consistency of the
                                                  Should California’s CHE amendments
                                                                                                          compliance flexibilities without                      CHE regulations with section 209, and
                                                  be considered under the within-the-                                                                           (3) do not raise any new issues affecting
                                                  scope analysis, or should they be                       sacrificing significant emission
                                                                                                          reductions.                                           the prior authorizations.28 We received
                                                  considered under the full authorization                                                                       no adverse comments or evidence
                                                  criteria?; (2) If those amendments                         CARB’s amendments to the retrofit
                                                                                                          requirements allow additional time for                suggesting a within-the-scope analysis is
                                                  should be considered as a within-the-                                                                         inappropriate, or that these CHE
                                                                                                          fleet owners/operators (fleets) to retrofit
                                                  scope request, do they meet the criteria                                                                      amendments fail to meet any of the
                                                                                                          equipment for which no verified diesel
                                                  for EPA to grant a within-the-scope                     emission control strategies (VDECS) are               three criteria for within-the-scope
                                                  confirmation?; and (3) If the                           available. The retrofit amendments also               confirmation.
                                                  amendments should not be considered                     add safety as a criterion for assessing                  With regard to the first within-the-
                                                  under the within-the-scope analysis, or                 VDECS availability, allow additional                  scope prong, CARB maintains that the
                                                  in the event that EPA determines they                   time to request a compliance date                     stringency of its emission standards is,
                                                  are not within the scope of the previous                extension, and allow an extension of the              in the aggregate, at least as protective of
                                                  authorization, do they meet the criteria                time for the use of experimental diesel               public health and welfare as applicable
                                                  for full authorization?                                 particulate matter emissions control                  federal standards.29 CARB also notes
                                                                                                          strategies for the purpose of gathering               that its amendments will not create any
                                                    EPA received one anonymous written
                                                                                                          verification data on such strategies.                 expected adverse environmental
                                                  comment that opposed ‘‘any new
                                                                                                             According to CARB, the amendments                  impacts.30 Finally, CARB notes that
                                                  Regulation or Rule promulgated by EPA                                                                         there can be no question that the CHE
                                                  on California State Non Road Engine                     that modify the operational practice
                                                                                                          requirements involve four minor                       regulations are at least as protective of
                                                  Pollution Control Standards: Mobile                                                                           public health and welfare as applicable
                                                  Cargo Handling Equipment at Ports and                   adjustments to the CHE regulations.
                                                                                                          These include a low-use compliance                    federal standards given that EPA is
                                                  Intermodal Rail Yards Regulations.’’ 26                                                                       unable to regulate emissions from in-use
                                                                                                          extension (a two-year extension for
                                                  EPA is not promulgating any regulations                                                                       nonroad engines and equipment and
                                                                                                          equipment that operates less than 200
                                                  or rules regarding California’s CHE                                                                           that no federally applicable regulations
                                                                                                          hours per year), an allowance for cargo
                                                  regulations, but rather is adjudicating                                                                       exist. EPA agrees that there are no
                                                                                                          handling equipment other than yard
                                                  whether or not the amendments that                      trucks (‘‘non-truck CHE’’), owned or                  federally applicable standards for in-use
                                                  CARB made to its own CHE regulations                    leased by one party to be transferred to              nonroad engines and that no evidence
                                                  are within the scope of previous                        another location under certain                        exists in the record to demonstrate that
                                                  authorizations granted by EPA or fulfill                limitations, an allowance for fleets to               CARB’s CHE regulations, in the
                                                  the criteria for a full authorization under             replace engines still under the original              aggregate, are less protective than
                                                  the Clean Air Act. EPA received no                      equipment manufacturer’s warranty                     applicable federal standards. Therefore,
                                                  requests for a public hearing.                          with replacement engines that meet the                we cannot find that the CHE
                                                  Consequently, EPA did not hold a                        emission standards of the original                    amendments, as noted, undermine the
                                                  public hearing.                                         engine, even when newer engine                        protectiveness determination made with
                                                                                                          emission standards are in place for                   regard to the original CHE authorization.
                                                  II. Discussion                                                                                                   With regard to the second within-the-
                                                                                                          newly produced engines, and a new
                                                                                                          provision allowing fleets to rent non-                scope prong (consistency with section
                                                    The CHE amendment package
                                                                                                          compliant equipment in the event that                 209), CARB maintains that the CHE
                                                  contains six categories of amendments.
                                                                                                          compliant equipment is unavailable due                amendments do not regulate new motor
                                                  CARB seeks within-the-scope
                                                                                                          to manufacturer delivery delays.                      vehicles or motor vehicles engines and
                                                  confirmation for the following                                                                                so are consistent with section 209(a).
                                                  amendments: (1) Modification to retrofit                   The third set of amendments that
                                                                                                          CARB maintains are within the scope of                Likewise the CHE amendments do not
                                                  requirements; (2) modification of                                                                             regulate any of the permanently
                                                  operation practices; (3) allowance of                   the prior authorization establishes a
                                                                                                          compliance option that allows fleets to               preempted categories of engines or
                                                  demonstration of emissions equivalency                                                                        vehicles, and so are consistent with
                                                  for alternative technology; and (4)                     demonstrate emissions equivalency for
                                                                                                          alternative technology. CARB states that              section 209(e)(1). Finally, CARB
                                                  modification of compliance                                                                                    maintains that the CHE amendments do
                                                                                                          these amendments are designed to
                                                  requirements. CARB seeks a full                                                                               not cause any technological feasibility
                                                                                                          encourage introduction of new
                                                  authorization to enforce amendments                                                                           issues or cause inconsistency between
                                                                                                          technologies such as hybrid and electric
                                                  that establish: (1) A new opacity based                                                                       state and federal test procedures, per
                                                                                                          equipment.
                                                  monitoring program; and (2) new retrofit                   Finally, the fourth set of amendments              section 209(b)(1)(C). CARB maintains
                                                  requirements for engines meeting the                    modifies compliance requirements by                   that the CHE amendments, as noted,
                                                  Tier 4 Family Emission Limits                           establishing a compliance schedule that               provide additional compliance
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                                                  standards.                                              allows fleets to bring older engines into             flexibilities beyond the CHE regulations
                                                                                                          compliance first if owners and operators
                                                    25 See ‘‘California State Nonroad Engine Pollution
                                                                                                          choose to do so, and by exempting                     million tons and the port is located more than 75
                                                  Control Standards; Mobile Cargo Handling                                                                      miles from an urban area.
                                                  Equipment at Ports and Intermodal Rail Yards
                                                                                                          equipment at rural low-throughput                       28 Id. at 16.

                                                  Regulation; Request for Within-the-Scope and Full       ports.27                                                29 See CARB Board Resolution 11–30 (enclosure

                                                  Authorization; Opportunity for Public Hearing and                                                             4 of CARB’s authorization request).
                                                  Comment,’’ 79 FR 30608 (May 28, 2014).                    27 The exemption applies if the average annual        30 See CARB Staff Report (enclosure 2 of CARB’s
                                                    26 See EPA–HQ–OAR–2014–0060–0019.                     throughput of goods through a port is less than one   authorization request).



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                                                                                  Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices                                                  26253

                                                  already found to be technologically                     otherwise applicable Tier 4 PM                        engine emission program to meet
                                                  feasible. Because there is no evidence in               standard. Through inadvertent error by                serious air pollution problems.35 Based
                                                  the record to indicate that CARB’s CHE                  CARB, the CHE regulations allowed for                 on the lack of evidence in the record or
                                                  amendments are inconsistent with                        in-use nonroad non-truck CHE to meet                  any suggestion that CARB no longer has
                                                  section 209 we cannot find that the CHE                 the applicable upgrade requirements by                a need for its standards to meet
                                                  amendments, as noted, are inconsistent                  meeting the Tier 4 Alternate PM                       compelling and extraordinary
                                                  with section 209.                                       standard rather than the Tier 4 PM                    conditions, we have no reason to deny
                                                     Third, California states that no new                 standard. CARB’s CHE amendments                       CARB’s authorization request based on
                                                  issues exist, and EPA has received no                   correct this error by requiring fleets that           this second authorization criterion.
                                                  evidence to the contrary.31 We therefore                used the FEL-certified engines to retrofit               Section 209(e)(2)(A)(iii) of the Act
                                                  do not find any new issues raised by the                these engines with the highest available              instructs that EPA cannot grant an
                                                  CHE amendments as noted.                                (best—Tier 4) VDECS within one year.                  authorization if California’s standards
                                                     Having received no contrary evidence                    With regard to the first full                      and enforcement procedures are not
                                                  regarding these amendments, we find                     authorization prong at section                        consistent with ‘‘this section.’’ As
                                                  that California has met the three criteria              209(e)(2)(i) of the Act, CARB maintains               described above, EPA’s section 209(e)
                                                  for a within-the-scope authorization                    that the stringency of its emission                   rule states that the Administrator shall
                                                  approval, and these amendments are                      standards is, in the aggregate, at least as           not grant authorization to California if
                                                  thus confirmed as within the scope of                   protective of public health and welfare               she finds (among other tests) that the
                                                  previous EPA authorizations of                          as applicable federal standards.32 CARB               ‘‘California standards and
                                                  California’s CHE regulations.                           also notes that its amendments will not               accompanying enforcement procedures
                                                                                                          create any expected adverse                           are not consistent with section 209.’’
                                                  B. Full Authorization Discussion                        environmental impacts.33 Finally, CARB                EPA has interpreted the requirement to
                                                     As noted above, CARB seeks a full                    notes that there can be no question that              mean that California standards and
                                                  authorization to enforce amendments                     its CHE regulation is at least as                     accompanying enforcement procedures
                                                  that establish a new opacity based                      protective of public health and welfare               must be consistent with at least section
                                                  monitoring program and new retrofit                     as applicable federal standards given                 209(a), section 209(e)(1), and section
                                                  requirements for engines meeting the                    that EPA is unable to regulate emissions              209(b)(1)(C), as EPA has interpreted this
                                                  Tier 4 Family Emission Limits                           from in-use nonroad engines and                       last subsection in the context of motor
                                                  standards.                                              equipment and that no federally                       vehicle waivers.36 Thus, this can be
                                                     CARB’s CHE amendments establish                      applicable regulations exist. EPA agrees              viewed as a three-pronged test.
                                                  new in-use opacity standards and                        that there are no federally applicable
                                                  require owners/operators to conduct                     standards for in-use nonroad engines                  1. Consistency With Section 209(a)
                                                  annual opacity monitoring of all CHE                    and that no evidence exists in the record                Section 209(a) of the Clean Air Act
                                                  more than four years old from the date                  to demonstrate that CARB’s CHE                        prohibits states or any political
                                                  of its original manufacture to ensure                   regulation is less protective, in the                 subdivisions of states from setting
                                                  proper operation and maintenance so                     aggregate, than applicable federal                    emission standards for new motor
                                                  that engines continue to perform as                     standards. Accordingly, we cannot find                vehicles or new motor vehicle engines.
                                                  designed and certified. Retrofitted                     that CARB’s protectiveness finding is                 Section 209(a) is modified in turn by
                                                  engines are similarly monitored to                      arbitrary and capricious.                             section 209(b) which allows California
                                                  ensure that the engines continue to be                     With regard to the second                          to set such standards if other statutory
                                                  in compliance with the VDECS                            authorization criterion, section                      requirements are met. To find a
                                                  executive order issued by CARB.                         209(e)(2)(A)(ii) instructs that EPA                   standard to be inconsistent with section
                                                  Equipment found to be in excess of                      cannot grant an authorization if the                  209(a) for purposes of section
                                                  opacity standards would be required to                  Agency finds that California ‘‘does not               209(e)(2)(A)(iii), EPA must find that the
                                                  receive maintenance and repair before                   need such California standards to meet                standard in question actually regulates
                                                  being returned to service.                              compelling and extraordinary                          new motor vehicles or new motor
                                                     Under the CHE regulation that EPA                    conditions.’’ EPA’s inquiry under this                vehicle engines. In its authorization
                                                  previously authorized, engine                           second criterion (found both in                       request, CARB stated that by definition,
                                                  manufacturers are allowed some                          paragraphs 209(b)(1)(B) and                           the CHE amendments do not regulate
                                                  flexibility during periods in which                     209(e)(2)(A)(ii)) has been to determine               new motor vehicles or new motor
                                                  emission standards are transitioning                    whether California needs its own mobile               vehicle engines. EPA received no
                                                  from one emission level (tier) to another               source pollution program (i.e. set of                 comments to suggest the contrary.
                                                  emission level (tier). This flexibility                 standards) for the relevant class or                  Therefore, EPA cannot deny California’s
                                                  allows engine manufacturers to certify a                category of vehicles or engines to meet               request based on the CHE amendments
                                                  certain percentage of engines                           compelling and extraordinary                          being inconsistent with section 209(a) of
                                                  manufactured, and identified as being                   conditions, and not whether the specific              the Act.
                                                  part of the more stringent tier, to                     standards that are the subject of the
                                                  emission levels that do not meet that                   authorization or waiver request are                   2. Consistency With Section 209(e)(1)
                                                  more stringent tier. CARB established a                 necessary to meet such conditions.34                     To be consistent with section
                                                  family emission limit (FEL) alternate                   CARB notes that in adopting its CHE                   209(e)(1), California’s standards or other
                                                  particulate matter (PM) emission                        amendments the CARB Board confirmed                   requirements relating to the control of
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                                                  standard (Tier 4 Alternate PM standard)                 its longstanding position that California             emissions must not relate to new
                                                  that is essentially equivalent to the less              continues to need its own nonroad                     engines which are used in farm or
                                                  stringent Tier 3 PM emission standard.                                                                        construction equipment or vehicles and
                                                                                                            32 See CARB Board Resolution 11–30 (enclosure
                                                  The Tier 4 Alternate PM standard is                     4 of CARB’s authorization request).                   which are smaller than 175 horsepower
                                                  about ten times higher than the                           33 See CARB Staff Report (enclosure 2 of CARB’s

                                                                                                          authorization request).                                  35 See CARB’s Authorization Support document
                                                    31 CARB  authorization support document at 14,          34 See 74 FR 32744, 32761 (July 8, 2009); 49 FR     at 15, citing CARB Board Resolution 11–30.
                                                  docket entry EPA–HQ–OAR–2014–0060–0003.                 18887, 18889–18890 (May 3, 1984).                        36 See 59 FR 36969 (July 20, 1994).




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                                                  26254                           Federal Register / Vol. 80, No. 88 / Thursday, May 7, 2015 / Notices

                                                  (hp), and new locomotives or new                        amendments only require retrofit to the               review of this final action may not be
                                                  engines used in locomotives.                            Tier 4 emission level if appropriate                  obtained in subsequent enforcement
                                                    CARB maintains that its CHE                           technology is available and require the               proceedings, pursuant to section
                                                  amendments do not regulate new                          retrofit be performed within one year.                307(b)(2) of the Act.
                                                  engines which are used in construction                  EPA did not receive any comment or
                                                  or farm equipment or vehicles below                                                                           IV. Statutory and Executive Order
                                                                                                          evidence to suggest that either of the
                                                  175 hp, nor do the CHE amendments                       two amendments for which CARB                         Reviews
                                                  regulate new locomotives or new                         requested authorization is                               As with past authorization and waiver
                                                  engines used in locomotives.                            technologically infeasible.                           decisions, this action is not a rule as
                                                    In light of the lack of contrary                        Consequently, based on the record,                  defined by Executive Order 12866.
                                                  information in the record, EPA cannot                   EPA is unable to make the finding that                Therefore, it is exempt from review by
                                                  make a finding that CARB’s CHE                          the CHE amendments are not                            the Office of Management and Budget as
                                                  amendments are inconsistent with                        technologically feasible with the                     required for rules and regulations by
                                                  section 209(e)(1). Therefore, EPA cannot                available lead time giving consideration              Executive Order 12866.
                                                  deny CARB’s authorization request on                    to the cost of compliance.                               In addition, this action is not a rule
                                                  this basis.                                               EPA received no comments suggesting                 as defined in the Regulatory Flexibility
                                                                                                          that CARB’s CHE amendments pose any                   Act, 5 U.S.C. 601(2). Therefore, EPA has
                                                  3. Consistency With Section 209(b)(1)(C)
                                                                                                          test procedure consistency problem.                   not prepared a supporting regulatory
                                                     The requirement that California’s                    Therefore, based on the record, EPA                   flexibility analysis addressing the
                                                  standards be consistent with section                    cannot find that CARB’s testing                       impact of this action on small business
                                                  209(b)(1)(C) of the Clean Air Act                       procedures are inconsistent with section              entities.
                                                  effectively requires consistency with                   202(a) and cannot deny CARB’s request                    Further, the Congressional Review
                                                  section 202(a) of the Act. To determine                 based on this criterion.                              Act, 5 U.S.C. 801, et seq., as added by
                                                  this consistency, EPA has applied to                                                                          the Small Business Regulatory
                                                  California nonroad standards the same                   III. Decision
                                                                                                                                                                Enforcement Fairness Act of 1996, does
                                                  test it has used previously for California                 The Administrator has delegated the                not apply because this action is not a
                                                  motor vehicle standards; namely, state                  authority to grant California section                 rule for purposes of 5 U.S.C. 804(3).
                                                  standards are inconsistent with section                 209(e) authorizations to the Assistant
                                                                                                                                                                  Dated: April 29, 2015.
                                                  202(a) of the Act if there is inadequate                Administrator for Air and Radiation.
                                                                                                          After evaluating CARB’s amendments to                 Janet G. McCabe,
                                                  lead-time to permit the development of
                                                  technology necessary to meet those                      its CHE regulations described above and               Acting Assistant Administrator, Office of Air
                                                                                                          CARB’s submissions for EPA review,                    and Radiation.
                                                  requirements, giving appropriate
                                                  consideration to the cost of compliance                 EPA is taking the following actions.                  [FR Doc. 2015–11034 Filed 5–6–15; 8:45 am]
                                                  within that timeframe. California’s                        First, EPA is granting a within-the-               BILLING CODE 6560–50–P

                                                  accompanying enforcement procedures                     scope authorization for the CHE
                                                  would also be inconsistent with section                 amendments that modify the retrofit
                                                  202(a) if federal and California test                   requirements, modify operational                      ENVIRONMENTAL PROTECTION
                                                  procedures conflicted. The scope of                     practices, allow demonstration of                     AGENCY
                                                  EPA’s review of whether California’s                    emissions equivalency for alternative                 [FRL_XXXX–X]
                                                  action is consistent with section 202(a)                technology, and modify compliance
                                                  is narrow. The determination is limited                 requirements.                                         Cross-Media Electronic Reporting:
                                                  to whether those opposed to the                            Second, EPA is granting a full                     Authorized Program Revision
                                                  authorization or waiver have met their                  authorization for the CHE amendments                  Approval, State of Florida
                                                  burden of establishing that California’s                that establish a new opacity based
                                                                                                          monitoring program and new retrofit                   AGENCY: Environmental Protection
                                                  standards are technologically infeasible,                                                                     Agency (EPA).
                                                  or that California’s test procedures                    requirements for engines meeting the
                                                                                                          Tier 4 FEL standards.                                 ACTION: Notice.
                                                  impose requirements inconsistent with
                                                  the federal test procedures.37                             This decision will affect persons in
                                                                                                          California and those manufacturers and/               SUMMARY:    This notice announces EPA’s
                                                     CARB states that the smoke opacity                                                                         approval of the State of Florida’s request
                                                  test is a quick and inexpensive way to                  or owners/operators nationwide who
                                                                                                          must comply with California’s                         to revise/modify certain of its EPA-
                                                  detect if an engine is emitting excessive                                                                     authorized programs to allow electronic
                                                  emissions. CARB maintains that the                      requirements. In addition, because other
                                                                                                          states may adopt California’s standards               reporting.
                                                  smoke opacity test is technologically
                                                                                                          for which a section 209(e)(2)(A)                      DATES: EPA’s approval is effective May
                                                  feasible and that compliance with the
                                                                                                          authorization has been granted if certain             7, 2015.
                                                  standards does not require the
                                                                                                          criteria are met, this decision would                 FOR FURTHER INFORMATION CONTACT:
                                                  incorporation of any new technology
                                                  not already required by existing                        also affect those states and those                    Karen Seeh, U.S. Environmental
                                                  regulations that have previously                        persons in such states. See CAA section               Protection Agency, Office of
                                                  received an EPA authorization. CARB                     209(e)(2)(B). For these reasons, EPA                  Environmental Information, Mail Stop
                                                  also states that the clarification of the               determines and finds that this is a final             2823T, 1200 Pennsylvania Avenue NW.,
                                                  Tier 4 FEL emission standards                           action of national applicability, and also            Washington, DC 20460, (202) 566–1175,
                                                                                                                                                                seeh.karen@epa.gov.
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                                                  provisions are technologically feasible                 a final action of nationwide scope or
                                                  and were designed to correct an                         effect for purposes of section 307(b)(1)              SUPPLEMENTARY INFORMATION: On
                                                  unintentional error and to clarify the                  of the Act. Pursuant to section 307(b)(1)             October 13, 2005, the final Cross-Media
                                                  original intent of the previously                       of the Act, judicial review of this final             Electronic Reporting Rule (CROMERR)
                                                  authorized CHE regulations. The CHE                     action may be sought only in the United               was published in the Federal Register
                                                                                                          States Court of Appeals for the District              (70 FR 59848) and codified as part 3 of
                                                    37 See, e.g., Motor and Equip. Mfrs Assoc. v. EPA,    of Columbia Circuit. Petitions for review             title 40 of the CFR. CROMERR
                                                  627 F.2d 1095 (D.C. Cir. 1979) (‘‘MEMA I’’).            must be filed by July 6, 2015. Judicial               establishes electronic reporting as an


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Document Created: 2015-12-16 07:50:05
Document Modified: 2015-12-16 07:50:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of decision.
DatesPetitions for review must be filed by July 6, 2015.
ContactDavid Dickinson, Attorney-Advisor, Compliance Division, Office of Transportation and Air Quality, U.S. Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460. Telephone: (202) 343-9256. Fax: (202) 343-2804. Email: [email protected]
FR Citation80 FR 26249 

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