HOUSE BILL REPORT

HB 1104

BYRepresentatives Valle, Van Luven, Rust, Brekke and Phillips; by request of Department of Ecology

Revising provisions for motor vehicle inspection and maintenance.

House Committe on Environmental Affairs

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (12)

Signed by Representatives Rust, Chair; Valle, Vice Chair; D. Sommers, Ranking Republican Member; Brekke, G. Fisher, Fraser, Phillips, Pruitt, Schoon, Sprenkle, Van Luven and Walker.

House Staff:Bonnie Austin (786-7107)

AS REPORTED BY COMMITTEE ON ENVIRONMENTAL AFFAIRS

FEBRUARY 23, 1989

BACKGROUND:

Under the federal Clean Air Act (CAA), states are required to meet national ambient air quality standards (NAAQS) for certain pollutants, including carbon monoxide (CO) and ozone. States with areas that do not meet these standards are required to have a State Implementation Plan (SIP) that provides for the attainment of these standards. SIP's must include motor vehicle emission inspection and maintenance (I/M) programs in all urban areas not in compliance with the NAAQS for CO and ozone. The Environmental Protection Agency (EPA) is directed to impose a Federal Implementation Plan (FIP) in any state that does not have an adequate SIP.

The CAA also requires manufacturers to warrant emission control devices in new motor vehicles for the useful life of the vehicle (five years or 50,000 miles for light duty vehicles) and to bear all costs in remedying any failure of those devices that results in any sanction under state or federal law.

In 1979, legislation was enacted that directed the Department of Ecology (Ecology) to establish I/M programs in areas of the state unable to meet the NAAQS for CO or ozone. Ecology established the I/M program in Seattle in 1982 and in Spokane in 1985.

Under the state I/M program, motor vehicles registered in "emission contributing areas" must be tested each year before vehicle licenses can be renewed. The test costs $9 and includes one free retest within 60 days for vehicles failing the initial test. If a vehicle fails a retest, a waiver may be obtained if more than $50 has been spent attempting to meet the emission standards after the initial test failure.

Certain categories of vehicles are not subject to I/M testing requirements. Federal, state, and local government motor pools are not subject to testing. Private fleets with at least 25 vehicles may be authorized to perform self-testing. Statutory exemptions from testing include: (1) Vehicles 15 years old and older; (2) electric vehicles; (3) diesel vehicles; (4) motorcycles and mopeds; (5) farm vehicles; (6) vehicles being offered for sale by Washington dealers; (7) vehicles fueled exclusively by propane or natural gas; and (8) vehicles exempted by Ecology.

Emissions testing is conducted by private firms that contract with the state. There are six testing stations in Seattle and one in Spokane. Contractors receive a portion of the fee and the remainder is transferred to the general fund. Ecology is responsible for monitoring the contractors and collecting test data. According to Ecology test data, the I/M program reduced carbon monoxide emissions from tested vehicles in 1988 by approximately 28 percent in Seattle and 24 percent in Spokane.

Despite the existence of I/M programs in Seattle and Spokane, both areas continue to violate the national carbon monoxide standard. Everett, Tacoma, Vancouver, and Yakima have also failed to meet the CO standard, although the problems in these areas are isolated in small sections of the business district and, according to Ecology, can be solved by traffic flow and distribution improvements and increased reliance on ride- sharing and public transit.

The CAA authorizes the following penalties for nonattainment of the CO standard: (1) Loss of federal highway funds; (2) loss of federal sewage treatment funds; (3) loss of federal air program grants; (4) a ban on construction of new industrial sources of air pollution in nonattainment areas; and (5) the implementation of a FIP. Ecology has estimated that $105 million could be lost over the next three years in sewage treatment construction grants and $7.2 million could be lost over the next three years in air program grants if sanctions are imposed. The Department of Transportation has estimated that up to $500 million in federal highway funds could be lost if full sanctions are imposed.

According to the EPA, Seattle and Spokane do not face any immediate prospect of federal sanctions as long as they continue to implement existing SIP programs (including the I/M program) and make progress toward meeting the CO standard. However, the statute authorizing the state I/M program expires on January 1, 1990.

SUMMARY:

SUBSTITUTE BILL: The Motor Vehicle Emission Inspection and Maintenance (I/M) Program is reauthorized until January 1, 1995.

Of those vehicles which must be tested, vehicles with a model year of 1980 or earlier must be tested annually. Vehicles with a model year of 1981 or later must be tested biennially unless they fail an initial test. If a 1981 and later model fails an initial test, it will be subject to annual testing thereafter until an initial test is passed.

Motor vehicles with a model year of 1975 or older are exempt from the testing requirements. This replaces the "moving" exemption for motor vehicles 15 years old or older. Ecology is given authority to adopt rules implementing and enforcing exemptions.

Waivers are only available for vehicles: (1) That have been in use for more than five years or 50,000 miles; and (2) where emission reduction equipment is still installed and operative. The amount that must be expended on 1981 and later model vehicles before a waiver may be obtained is raised to $250.00. The $50.00 amount for pre-1981 vehicles is retained. Information on federal warrantees must be provided to persons failing the initial test.

Local governments and state agencies with motor vehicles garaged or regularly operated in emission contributing areas are required to: (1) Test vehicle emissions under the same schedule required for other vehicles; (2) ensure compliance with emission standards; and (3) report test results annually to Ecology.

A high rpm test is added, along with the current idle test. The $10 cap on test fees is raised to $18. Fees will be set at the minimum whole dollar amount required to run the program and cover Ecology's administrative costs.

If EPA standards are changed, Ecology is directed to reevaluate noncompliance areas. Ecology is directed to study (1) CO emission trends without the I/M program; (2) sub-populations of vehicles failing the test; and (3) the feasibility of implementing an I/M program that uses private auto repair firms as testing stations.

Persons residing in emission contributing areas must register their vehicles in that area unless business reasons require otherwise. Violations of this requirement are subject to a civil penalty of up to $100.00.

When expanding the I/M program, bids must be sought from contractors who would use existing buildings as test stations. If no suitable bids are received, bids may then be sought from bidders proposing to construct new test stations.

Ecology is authorized to make grants to local governments for planning efforts aimed at reducing motor vehicle emissions in areas where I/M programs are not required.

SUBSTITUTE BILL COMPARED TO ORIGINAL: Of those vehicles which must be tested, vehicles with a model year of 1980 or earlier must be tested annually. Vehicles with a model year of 1981 or later must be tested biennially unless they fail an initial test. If a 1981 or later model fails an initial test, it will be subject to annual testing thereafter until an initial test is passed.

The amount that must be expended on 1981 and later model vehicles before a waiver may be obtained is raised to $250.00. Information on federal warrantees must be provided to persons failing the initial test.

A high rpm test is required, along with the current idle test. The $10 cap on test fees is raised to $18. Fees will be set at the minimum whole dollar amount required to run the program and cover Ecology's administrative cost.

Fiscal Note: Available.

House Committee ‑ Testified For: Representative Georgette Valle; John K. Anderson, Puget Sound Air Pollution Control Agency; Bruce Wishart, Sierra Club; David Kircher, United States Environmental Protection Agency; Stu Clark, Department of Ecology; Todd Litman, Bicycle Federation of Washington; Bruce Olsen, Automobile Association of America; Roger von Gohren, Association of Washington Business; Michael Kent, Department of Ecology; Linda Tanz, American Lung Association of Washington; Henry Sharpe, City of Seattle; Kathleen Collins, Association of Washington Cities; Bill Fritz and Jack Grumblatt, Vehicle Testing Technology; Elizabeth Tabbutt, Washington Environmental Council; and Nancy Pearson, League of Women Voters.

House Committee - Testified Against: Representative Mike Heavey; Paul Locke; and Dr. K. Jones.

House Committee - Testimony For: Motor vehicles are the major source of air pollution. Over 90 percent of the carbon monoxide (CO) is emitted by motor vehicles. The I/M program is effective in reducing CO emissions. Sixty- four areas in 33 states have I/M programs.

I/M is an effective waste reduction program because it controls air pollution at the source. Source reduction has an impact on ambient air quality. I/M is one element of an overall air strategy.

All of the bills in Congress on the Clean Air Act either continue or strengthen I/M requirements. Federal sanctions for discontinuing I/M are extremely onerous. Sanctions have been imposed in other states.

The I/M program has reduced ozone to the point that we are now in compliance with the federal standard. However, we are close to the standard and may be found out of compliance if I/M is discontinued.

Surveys have shown that between 78 - 83 percent of the residents of testing areas believe the I/M program should be continued.

If I/M is discontinued, it would be difficult and expensive to start up again under a federal implementation plan.

House Committee - Testimony Against: There is no proof that I/M has improved the ambient air quality in Seattle and Spokane. In fact, ambient air quality has degraded in some cases since I/M was established.

Newer cars with catalytic converters do not have emission problems. The older, exempt cars are the ones causing the problems.

The solution to the air quality problem is to get people out of their cars. I/M does nothing to address this.

The federal standard is too stringent. Nine parts per million of CO in the ambient air does not present a health risk.

The state should not be intimidated by possible federal sanctions, but should make the decision to reauthorize I/M based on the effectiveness of I/M in improving air quality.