Air Quality Committee Environmental Management Commission November 13 and 14, 2013

1. Proposed Amendments to Motor Vehicle Emission Control Standard in 15A NCAC 02D .1000 RulesSteven Vozzo, Supervisor - Fayetteville RegionNorth Carolina Division of Air Quality Air Quality Committee Environmental Management Commission November 13 and 14, 2013

2. Overview • General Assembly passed Session Law 2012-199 (HB 585) • Change emissions testing program for newer vehicles • Incorporate revised exemption of 3 most recent model year vehicles with < 70,000 miles from emissions inspection • Still require safety inspection with visual inspection of vehicles emissions components • Public hearing held in Raleigh on Sept 18, 2013 • Take comments on amendments of five rules

3. DAQ Rule Changes To Align with Statute 15A NCAC 02D .1002,Applicability • Proposed amendment to extendexemption from current model year vehicles to 3 most recent model years with < 70,000 miles 15A NCAC 02D .1003, Definitions • Proposed for amendment to consolidate, add, modify definitions • New terminology reflecting advancements in new technologies 15A NCAC 02D .1005,On-Board Diagnostic Standards • Proposed for amendment to align rule with new statute • To update language for hybrid, electric, and fuel-cell vehicles

4. DAQ Rule Changes To Align with Statute – cont’d 15A NCAC 02D .1006,Sale and Service of Analyzers • Proposed to be amended to update language reflecting advancements and capabilities • Track emission inspection analyzer vendor service calls 15A NCAC 02D .1009,Model Year 2008 and Subsequent Model Year Heavy Duty Diesel Vehicle Requirements • Proposed to be repealed as duplicative of USEPA rules • No longer necessary

5. Discussion of Comments • 15 comments on proposed rules - 5 on various implementation issues - 5 on various aspects of applicability - 2 on emissions control tampering - 1 on sovereign immunity for federal facilities - 1 on agency affordability of revenue loss - 1 requesting DMV/DAQ study report

6. Mileage Provision Implementation Comments Questions on 70,000 mileage exemption - How will provision be enforced - What preparations to enforce by effective date - How inspection stations going to police themselves Responses • Use education and oversight to enforce new program   - Update material in certification courses to address changes - Oversight with audits, checks, safeguards to minimize fraud - Hold accountable for performing valid inspections - If fraud identified, DMV will prosecute  

7. Applicability Comments • Perspective that exemption favors tax breaks for more affluent • Number defining how many recent model years exempt • Claim inspections are waste of money and scam • Why inspections only in certain counties? Responses • Study revealed emissions controls on newer cars seldom fail • Study concluded exemption from emissions test in first 3 model years save consumers with negligible effects on air quality • Model showed exemption not interfere with air quality standards • G.A. identified counties based on population and air quality

8. Tampering with Emission Controls Comment: Allows owners to disconnect controls to improve performance, then re-connect later without penalty Response: On-board diagnostics (OBD II) on all gas-powered vehicles since 1996 model • OBD II monitors status of various sub-systems and diagnostic trouble codes • Enables mechanic to identify / remedy malfunctions • Certified analyzers connected to OBD II verify emissions systems functionality along with visual inspection • Penalty for violation

9. Comment on Inspecting Exempt Vehicles with Check-Engine-Light On Comment • Whether / how inspectors deal with exempt vehicles with trouble code warnings Response • Inspector not fail vehicle only because check-engine-light on • Inform customer of issues and recommend servicing vehicle

10. Financial Impact to State Agencies Comment: • How agencies afford $11+ million revenue loss in next 3 years Response: • Agencies absorb losses by planning and adjustments • Adjustments enabled by e-sticker investments in IT systems • Increase in number of future vehicles offset loss • New system reduce State’s operations by $5.7 million per year - Offset loss, pay for system within 4 years, save State thereafter

11. Applicability for Vehicles Operated on Federal Installations Comment • Object to rule language in 02D .1002(a)(3) applying to federal installations due to sovereign immunity • Request repealing applicability to federal facilities Response • NC statute and DAQ rule consistent with EPA rule • Therefore, NC cannot accommodate repeal request without further study and consultation with EPA

12. Rule Implementation Comment • Language too ambiguous without upgraded electronic system to determine whether emissions inspections required • Oppose relaxing OBD specifications in Rule 02D .1006 Response • Prompt change in 2 definitions to clarify inspection requirements • DMV develop flowchart to determine if inspection required • Qualified staff and management familiar with flowchart can implement rule • DAQ agrees existing rule language best carries out legislative intent

13. Hearing Officer’s Recommendation • Recommend proposed amendments with changes as presented in Chapter II be adopted by EMC • Also recommend DAQ study concerns on sovereign immunity - Report back to AQC of EMC no later than March 2014 - Provide concept for rule change contingent upon need