R98008A.PDF

ILLINOIS POLLUTION CONTROL BOARD

October 16, 1997

IN THE MATTER OF:

CLEAN FUEL FLEET PROGRAM:

AMENDMENTS TO 35 ILL. ADM.

CODE 241

)

R98-8

(Rulemaking - Air)

Proposed Rule. Second Notice.

OPINION AND ORDER OF THE BOARD (by J. Yi):

On July 7, 1997, the Illinois Environmental Protection Agency (Agency) filed this

proposal for rulemaking to amend 35 Ill. Adm. Code 241 (Clean Fuel Fleet Program (CFFP)).

The Board adopted the CFFP on September 7, 1995. See Clean Fuel Fleet Program:

Amendments to 35 Ill. Adm. Code 241 (September 7, 1995), R95-12. This proposal was filed

pursuant to Section 28.5 of the Environmental Protection Act (Act). 415 ILCS 5/28.5 (1996).

Sections 182(c)(4)(A) and Section 246 of the Clean Air Act (CAA) (42 U.S.C.

7511(c)(4)(A) and 7586 (1990)), require all serious, severe, and extreme ozone nonattainment

areas (NAA) to adopt a CFFP by May 15, 1994. In Illinois, the Chicago area is classified as a

severe ozone NAA and is subject to the CFFP. The attainment year for the Chicago area is

2007. Pursuant to CFFP, if certain fleet owners acquire new motor vehicles, beginning model

year 1998 and thereafter, a specified percentage of these new motor vehicles must be clean

fuel fleet vehicles (CFFVs) which meet the federal low emission standards established by the

United States Environmental Protection Agency (USEPA) for the CFFP. The proposal filed

by the Agency requests the Board to amend certain sections of the CFFP to reflect that owners

and operators will have an additional year to meet the requirements of the CFFP and to correct

certain amounts of credit given for over-compliance.

PROCEDURAL HISTORY

On July 10, 1997, the Board adopted the Agency proposal for first notice publication,

pursuant to the Illinois Administrative Procedure Act (APA) (5 ILCS 100/1-1 (1996)).

Subsequently, on July 25, 1997, the amendments to Part 241 were published in the

Illinois

Register

(21 Ill. Reg. 9639 (July 25, 1997)), and the APA 45-day comment period began.

According to the APA, the first notice comment period ended on September 8, 1997; however

under Section 28.5 of the Act (415 ILCS 5/28.5 (1996)), the record does not close until 14

days after the availability of transcripts. The transcript was available on September 2, 1997.

Consequently, the record and the public comment period, closed on September 16, 1997. No

public comments were received during the first notice period, with the exception of one minor

editorial change suggested by the Joint Committee on Administrative Rules during the first

notice comment period. Today the Board adopts amendments to Part 241 for the purpose of

second notice pursuant to the APA. The rule and amendments will be submitted to the Joint

Committee on Administrative Rules for its consideration.

SUMMARY OF TESTIMONY

The first hearing in this matter was held on August 27, 1997. The Board received one

prefiled testimony prior to hearing from Darwin J. Burkhart, Environmental Protection

Specialist in the Air Quality Planning Section of the Agency.

At hearing, Mr. Burkhart testified that the Agency proposes that the Board delay

implementation of the CFFP by one year due to the insufficient supply of vehicles certified to

comply with any one of the four federal low emission standards, which consists of the low

emission vehicle, inherently low emission vehicle, ultra low emission vehicle, and zero

emission vehicle standards. Tr. at 14. Further, Mr. Burkhart asserted that with less than six

types of certified light-duty vehicles and only a few types of certified heavy-duty engines

available for the program at the current time, the USEPA has informed the states that it will

allow for a one year delay in program implementation. Tr. at 14. Finally, Mr. Burkhart

testified that a one year delay in the CFFP will only have a minimal environmental impact.

Tr. at 15-16.

No requests were made for the second hearing within 7 days of the first hearing in

accordance with Section 28.5 of the Act (415 ILCS 5/28.5 (1996)). Consequently, the second

and third hearings, originally scheduled for September 24, 1997, and October 10, 1997,

respectively, were canceled by hearing officer order dated September 4, 1997.

CONCLUSION

Pursuant to Sections 27 and 28.5 of the Act (415 ILCS 5/27, 28.5 (1996)), the Board

finds that the proposed rules are technically feasible and economically reasonable. The Board

adopts this proposal for second notice with one minor editorial change as suggested by the

Joint Committee on Administrative Rules during the first notice period.

ORDER

The Board hereby proposes the following amendments at 35 Ill. Adm. Code 241 to be

submitted to the Joint Committee on Administrative Rules.

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE B: AIR POLLUTION

CHAPTER II: POLLUTION CONTROL BOARD

PART 241

CLEAN FUEL FLEET PROGRAM

SUBPART A: GENERAL PROVISIONS

Section

241.101

Other Definitions

241.102

Definitions

241.103

Abbreviations

241.104

Incorporations by Reference

SUBPART B: GENERAL REQUIREMENTS

Section

241.110

Applicability

241.111

Exemptions

241.112

Registration of Fleet Owners or Operators

241.113

Control Requirements

241.114

Conversions

241.115

Operating Requirements

SUBPART C: CREDITS

Section

241.130

Clean Fuel Fleet Credit Program

241.131

Credit Provisions

SUBPART D: RECORDKEEPING AND REPORTING

Section

241.140

Reporting Requirements

241.141

Recordkeeping Requirements

241.142

Report of Credit Activities

APPENDIX A

Emission Standards for Clean Fuel Vehicles

TABLE A

Low Emission Vehicle (LEV) Standards for Light-Duty Clean Fuel Vehicles

(g/mi)

TABLE B

Ultra-Low Emission Vehicle (ULEV) Standards for Light-Duty Clean Fuel

Vehicles (g/mi)

TABLE C

NMOG Standards for Flexible-Fueled and Dual-Fueled Vehicles

TABLE D

Emission Standards for Model Year 1998 and Later Heavy-Duty Vehicles

(g/bhp-hr)

APPENDIX B

Credit Values

TABLE A

Credit Generation: Acquiring a Light-Duty Clean Fuel Vehicle before MY

19981999 or Acquiring More Light-Duty Clean Fuel Vehicles than Required

TABLE B

Credit Generation: Acquiring Light-Duty ULEV or ZEV Clean Fuel Vehicles

TABLE C

Credits Needed in Lieu of Acquiring a Light-Duty LEV

TABLE D

Credit Generation: Acquiring a Heavy-Duty Clean Fuel Vehicle before MY

19981999 or Acquiring More Heavy-Duty Clean Fuel Vehicles than Required

TABLE E:

Credit Generation: Acquiring Heavy-Duty ULEV or ZEV Clean Fuel Vehicles

TABLE F:

Credits Needed in Lieu of Acquiring a Heavy-Duty LEV

AUTHORITY: Implementing Sections 9, 9.1, and 10 and authorized by Sections 27 and 28.5

of the Environmental Protection Act (415 ILCS 5/9, 9.1, 10, 27, and 28.5).

SOURCE: Adopted at R95-12 at 19 Ill. Reg. 13265, effective September 11, 1995; amended

in R978-8, at 21 Ill. Reg. , effective

SUBPART B: GENERAL REQUIREMENTS

Section 241.113

Control Requirements

Any covered fleet owner or operator who acquires one or more new covered

fleet vehicles in a model year must meet the emission standards in subsection (e)

of this Section for the following percentages of new covered fleet vehicle

acquisitions:

The portion of the acquisition of light-duty new covered fleet vehicles

that must be light-duty clean fuel vehicles in any model year (MY) are as

follows:

In MY 19981999, at least 30 percent;

In MY 19992000, at least 50 percent; and

In MY 20002001 and every MY thereafter, at least 70 percent.

The portion of the acquisition of heavy-duty new covered fleet vehicles

that must be heavy-duty clean fuel vehicles shall be 50 percent of the

total number of heavy-duty new covered fleet vehicles acquired in each

model year, commencing in MY 19981999 and thereafter.

Any fraction of a new clean fuel vehicle acquisition requirement resulting from

the percentage calculation in subsection (a)(1) or (a)(2) of this Section may be

carried over and added to the new clean fuel vehicle acquisition requirement in

the next model year for that type of clean fuel vehicle (i.e. LDV and LDT, or

HDV) in which an acquisition of such a clean fuel vehicle is required pursuant

to subsection (a) of this Section.

An owner's or operator's light-duty and heavy-duty clean fuel vehicle

acquisition requirements in a given model year shall be the number of clean fuel

vehicles calculated in subsections (a)(1) and (a)(2) of this Section plus any

fraction of the same category and weight class (i.e., LDV/LDT or HDV) of

motor vehicle acquisition requirements carried over from a preceding year.

Notwithstanding subsections (b) and (c) of this Section, in any model year no

owner or operator shall:

Fall short of the acquisition requirements for new LDV/LDT or HDV

clean fuel vehicles by an amount equal to or greater than one motor

vehicle unit;

Meet the acquisition requirements for clean fuel LDVs or LDTs through

acquisition of clean fuel HDVs; or

Meet the acquisition requirements for clean fuel HDVs through the

acquisition of clean fuel LDVs or LDTs.

Motor vehicles acquired to meet the requirements of subsection (a) of this

Section or Subpart C of this Part must be certified by USEPA to meet the

federal emission certification standards of either LEV, ULEV, ZEV, or ILEV

for a clean alternative fuel(s), as set forth in Appendix A of this Part and in 40

CFR Part 88, incorporated by reference in Section 241.104 of this Part.

The owner or operator must meet the acquisition requirements of subsection (a)

of this Section by acquiring clean fuel vehicles or redeeming credits equal to or

greater than the number of vehicle units calculated in accordance with

subsection (a) of this Section through one or more of the following:

Purchase or lease clean fuel vehicles certified by USEPA to meet any of

the LEV, ULEV, ZEV, or ILEV standards referenced in subsection (e)

of this Section;

Conversion of existing or new motor vehicles to meet a LEV, ULEV,

ZEV or ILEV standard specified in subsection (e) of this Section,

consistent with the requirements of Section 241.114 of this Subpart; or

Redeem credits generated or acquired consistent with the requirements of

Subpart C of this Part.

(Source: Amended at Ill. Reg. , effective )

SUBPART C: CREDITS

Section 241.130

Clean Fuel Fleet Credit Program

Any owner or operator of ten or more fleet vehicles located or primarily

operated in the covered area may participate in the clean fuel fleet credit

program, provided that the owner or operator requests that the Agency establish

a clean fuel fleet credit account and complies with the registration, operating,

emission standards, and recordkeeping and reporting requirements of Sections

241.112, 241.113(e), 241.115, and 241.142 of this Part, respectively, and the

requirements of this Subpart and, if the vehicle for which credit is being

claimed is converted, complies with the requirements of Section 241.114 of this

Part.

Any owner or operator of a fleet may earn credits by:

Acquiring more clean fuel vehicles or fractions of clean fuel vehicles

than required in any MY pursuant to Section 241.113 of this Part;

Acquiring clean fuel vehicles that meet the ULEV or ZEV standard;

Acquiring clean fuel vehicles which belong to a category of motor

vehicles that are otherwise exempt under Section 241.111 of this Part;

and

Acquiring clean fuel vehicles before September 1, 19971998, if the

requirements of Section 241.112 of this Part have been met.

Credits will be generated, redeemed, or traded after the owner or operator

submits the information listed in Sections 241.140(a) and (b) of this Part to the

Agency for each clean fuel vehicle involved in the credit transaction, requests

that a credit transaction be posted and states the number of credits added to and

subtracted from the credit accounts, and the Agency has received and reviewed

the submittal. Credit transactions must be authorized by the owner or operator

whose account is being reduced. The Agency will review, and add to and

subtract from credit accounts, according to the criteria of this Subpart and

Appendix B of this Part.

Credits shall be designated by the Agency at the time of issuance as either

LDV/LDT credits or HDV credits. LDV/LDT credits may not be exchanged

for HDV credits and HDV credits may not be exchanged for LDV/LDT credits.

Notwithstanding subsection (b) of this Section, if a clean fuel vehicle has

ever been used to demonstrate compliance under Subpart B of this Part, or

used to generate credits under this Subpart, such clean fuel vehicle may

never be used by any other person for the purpose of generating credits

under this Subpart.

(Source: Amended at Ill. Reg. , effective )

SUBPART D: RECORDKEEPING AND REPORTING

Section 241.140

Reporting Requirements

By November 1, 19981999, and by November 1 every year thereafter, the owner or operator

of a covered fleet must submit the following information about its activities during the prior

model year to the Agency:

For each motor vehicle newly acquired or being used to earn credits, which also

includes motor vehicles converted to clean fuel vehicles:

The make, model, and year of manufacture;

The date of vehicle acquisition;

The vehicle identification number (VIN);

The GVWR, as specified by the manufacturer;

If the motor vehicle is being used to earn credits, the LVW for LDTs

whose GVWR is less than or equal to 6,000 lbs and the ALVW for

LDTs whose GVWR is greater than 6,000 lbs;

The license plate number and state registered in; and

A statement of whether the motor vehicle is exempt pursuant to Section

241.111 of this Part and which exemption applies.

For each clean fuel vehicle newly acquired or being used to earn credits, which

also includes motor vehicles converted to clean fuel vehicles:

The low emission standard(s) to which the motor vehicle is certified by

USEPA, consistent with Section 241.113(e) of this Part;

The clean alternative fuel(s) to which the motor vehicle is certified to

operate by the manufacturer in order to meet the federal low emission

standard(s) in Section 241.113(e) of this Part;

The 8-character alpha numeric bar-coded vehicle emission configuration

number; and

For motor vehicles converted to clean fuel vehicles pursuant to Section

241.114 of this Part:

The date the motor vehicle was converted;

The name and address of the person(s) or firm performing the

conversion; and

A statement that, to the best of the owner's or operator's

knowledge, the motor vehicle was converted in accordance with

the applicable requirements of 40 CFR Part 88, incorporated by

reference in Section 241.104 of this Part.

In addition to the information required in subsections (a) and (b) of this Section,

the owner or operator must state:

The number, to the nearest tenth, of clean fuel vehicles the owner or

operator was required to acquire pursuant to Section 241.113 of this

Part;

How that obligation was met;

If any of the clean fuel vehicles in the fleet used for compliance or

credits in the last two model years are no longer part of the fleet, the

VIN and the date the clean fuel vehicle was transferred or taken out of

service; and

If the fleet vehicles are centrally fueled at a location that is owned,

operated or controlled by the covered fleet owner or operator, the

amount of bulk fuel purchased by type of fuel.

All reports to the Agency must include the owner's or operator's fleet

registration number, the name of the operation, and the signature of the owner

or operator.

(Source: Amended at Ill. Reg. , effective )

Section 241.APPENDIX B

Credit Values

Table A Credit Generation: Acquiring a Light-Duty Clean Fuel Vehicle before MY 19981999

or Acquiring More Light-Duty Clean Fuel Vehicles than Required

TYPE

LDV, LDT

#6000 GVWR

#3750 LVW

LDT # 6000

GVWR

> 3750 LVW

# 5750 LVW

LDT >6000

GVWR

#3750 ALVW

LDT >6000

GVWR

>3750

ALVW #5750

ALVW

LDT >6000

GVWR

>5750

ALVW

LEV

1.00

1.26

0.71

0.91

1.11

ULE

1.20

1.54

1.00

1.291.26

1.471.56

ZEV

1.43

1.83

1.43

1.83

2.23

TABLE B Credit Generation: Acquiring Light-Duty ULEV or ZEV Clean Fuel Vehicles

TYPE

LDV, LDT

#6000 GVWR

#3750 LVW

LDT # 6000

GVWR

> 3750 LVW

# 5750 LVW

LDT >6000

GVWR

#3750 ALVW

LDT >6000

GVWR

>3750

ALVW #5750

ALVW

LDT >6000

GVWR

>5750

ALVW

ULE

0.20

0.29

0.34

0.45

ZEV

0.43

0.57

0.71

0.91

1.11

TABLE C Credits Needed in Lieu of Acquiring a Light-Duty LEV

TYPE

LDV, LDT

#6000 GVWR

#3750 LVW

LDT # 6000

GVWR

> 3750 LVW

# 5750 LVW

LDT >6000

GVWR

#3750 ALVW

LDT >6000

GVWR

>3750

ALVW #5750

ALVW

LDT >6000

GVWR

>5750

ALVW

LEV

1.00

1.26

0.71

0.91

1.11

TABLE D Credit Generation: Acquiring a Heavy-Duty Clean Fuel Vehicle before MY

19981999 or Acquiring More Heavy-Duty Clean Fuel Vehicles than Required

VEHICLE TYPE

HDV

LEV

1.00

ULEV

1.87

ZEV

3.53

TABLE E Credit Generation: Acquiring Heavy-Duty ULEV or ZEV Clean Fuel Vehicles

VEHICLE TYPE

HDV

ULEV

0.87

ZEV

2.53

TABLE F Credits Needed in Lieu of Acquiring a Heavy-Duty LEV

VEHICLE TYPE

HDV

LEV

1.00

(Source: Amended at Ill. Reg. , effective )

IT IS SO ORDERED.

I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, hereby certify that

the above opinion and order was adopted on the 16th day of October 1997, by a vote of 7-0.

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board