Environment, Energy and Transportation Program

Clean Air Newsletter

A Quarterly Review of Mobile and Stationary Source Issues

November, 2001

IN THIS ISSUE

FEDERAL ACTION

EPA Developing 8-Hour Ozone Standard Strategy
EPA Releases New Report on Status of Air Quality
EPA Releases New Green Vehicle Guide
DOE: Greenhouse Gas Emissions Rising
NOAA, NASA: "Ozone Hole" Stabilizing

TRIBAL ACTION

Tribes' Standards Setting Rights Affirmed

STATE ACTIONS

Texas Emissions Reduction Plan
MTBE Waiver Considerations
Court Upholds California Fleet Rules

STATE LEGISLATION

2001 State Air Quality Legislation

FEDERAL ACTION

EPA Developing 8-Hour Ozone Standard Strategy

The U.S. Environmental Protection Agency (EPA) has begun discussions with governmental stakeholder groups on the best ways to begin transitioning from the 1-hour ozone standard to the 8-hour ozone standard. The agency's action is being taken pursuant to a February 27 U.S. Supreme Court decision upholding the agency's authority to issue the new standard, but requiring the agency to reconsider its implementation plan (see March 2001 Clean Air Newsletter for article on court decision). EPA began the discussions with a conference call on October 10 involving eight governmental stakeholder groups, including the National Conference of State Legislatures. Other groups invited to participate were the National Governors Association, the National League of Cities, the U.S. Conference of Mayors, the Environmental Council of the States, the National Association of Regional Councils, the National Association of Counties, and the State and Territorial Air Pollution Program Administrators/Association of Local Air Pollution Control Officials.

EPA is considering two different frameworks within which to make the transition from the 1-hour ozone standard to the new 8-hour standard. Under a two-standard approach, the agency could require areas to attain the 1-hour standard first and then prepare a new plan to attain compliance with the 8-hour standard. Under a one-standard approach, EPA could require areas to comply with the 8-hour standard only, revoking the one-hour standard in the short term.

EPA plans to issue a draft rule on the implementation process during the spring of 2002. The final rule would be promulgated one year later. The agency does not anticipate designating nonattainment areas under the 8-hour standard until after the new rule becomes final.

EPA Releases New Report on Status of Air Quality

The U.S. Environmental Protection Agency (EPA) released a report in September updating the status of the nation's air quality. Latest Findings on National Air Quality: 2000 Status and Trends notes that since 1970, aggregate emissions (as measured in tons) of six primary pollutants-carbon monoxide (CO), nitrogen oxides (NOx), volatile organic compounds (VOC), sulfur dioxide (SO2), particulate matter (PM) and lead (Pb)-decreased by 29 percent. Ground-level ozone, formed by VOC and NOx, provided the greatest challenge, with levels increasing in the north central and southern regions of the United States and in 29 national parks. NOx emissions contributed most heavily to the worsening ozone levels, increasing by nearly 20 percent during this period. Conversely, SO2 emissions-which are largely responsible for acid rain-declined from 16 million tons in 1990 to 11 million tons in 2000. The percentage decrease or increase in emissions from 1970 to 2000 for each of the primary pollutants appears in table 1.

The full report can be viewed on the agency's Web site at www.epa.gov/airtrends.

EPA Releases New Green Vehicle Guide

The U.S. Environmental Protection Agency (EPA) released on October 9 its Green Vehicle Guide of model year 2002 emissions data. The guide " ... rates vehicles according to their environmental performance and includes both emission and fuel economy information." It allows customers to compare vehicles be category.

Four vehicles in three categories received the highest score-10:

Two Seater-Honda Insight (hybrid electric)

Compact Car-Toyota Prius (hybrid electric) and Nissan Sentra

Midsize Car-Honda Accord

The highest ranking of any vehicle by other category of vehicle is as follows:

Subcompact Car-8
Minicompact Car-7
Large Car-7
Small Station Wagon-7
Midsize Station Wagon-7
Sport Utility Vehicle-6

The full report can be viewed on the agency's Web site at www.epa.gov/greenvehicles.

DOE: Greenhouse Gas Emissions Rising

The U.S. Department of Energy's (DOE) Energy Information Administration (EIA) released a report in November that found a 2.5 percent increase in greenhouse gas emissions in the United States from 1999 to 2000. Emission of Greenhouse Gases in the United States 2000 determined that emissions totaled 1,906 million metric tons of carbon equivalent in 2000, compared to 1,860 million metric tons in 1999. This figure was nearly double the average annual growth rate for the decade. EIA concluded that the rise in emissions was due to colder winter temperatures, a decrease in hydroelectric power generation due to the drought (which was replaced by fossil fuels that emit more carbon dioxide), and strong economic growth (a 4.1 percent increase in the gross domestic product).

Emissions of carbon dioxide (CO2) from fossil fuel combustion-coal, petroleum and natural gas-accounted for 81.2 percent of the greenhouse total. CO2 emissions were 3.1 percent higher in 2000 than in 1999. The residential/commercial sector accounted for the largest percentage increase at 5.3 percent over the previous year. Emissions from electric power generation rose 4.7 percent, and transportation sector CO2 emissions grew by 3.1 percent. Industrial emissions remained flat. In addition to carbon dioxide, methane accounted for the second largest total of greenhouse gas emissions-9.3 percent-and nitrous oxide emissions weighed in at 5.3 percent.

The full report can be viewed at www.eia.doe.gov/index/html.

NOAA, NASA: "Ozone Hole" Stabilizing

In a study released October 16, the National Oceanic and Atmospheric Administration (NOAA) and NASA, the nation's space agency, reported that the ozone hole over the Antarctic had peaked at about 10 million square miles. This level is similar in size to the depletion in the earth's atmosphere over the Arctic and roughly the same as documented during the past three years. The report noted that, "This is consistent with human-produced chlorine compounds that destroy [high-level, as opposed to ground-level] ozone reaching their peak concentrations in the atmosphere, leveling off, and now beginning a very slow decline." Scientists with both federal agencies anticipate that during the next 30 to 50 years the severity of the ozone hole over Antarctica should diminish as chlorine levels show a comparable decline.

The full report can be viewed on NOAA's Web site at www.noaanews.noaa.gov/stories/s792.htm.

TRIBAL ACTION

Tribes' Standards Setting Rights Affirmed

In April 2001, the U.S. Supreme Court let stand a U.S. District of Columbia Circuit Court of Appeals ruling that upheld the right of Indian tribes to regulate air quality on all land within reservations, including fee land held by non-tribal owners. That court had also upheld the U.S. Environmental Protection Agency's interpretation of reservation to include trust land and pueblos. Based on an interpretation of the statutory language and history, the court of appeals disagreed with industry groups and the state of Michigan that Congress did not expressly delegate authority to tribes to regulate air quality on all reservation land including fee land owned by non-Indians, trust land and pueblos.

Tribal authority to regulate air quality is not a recent phenomenon. The 1977 amendments to the Clean Air Act gave tribes authority to redesignate land as class I, II or III for purposes of setting air quality standards (42 U.S.C. §7474(c)). Under the 1990 Clean Air Act Amendments, tribes were given authority by Congress to submit tribal implementation plans for areas within the exterior boundaries of the reservation (42 U.S.C. §7410(o)). Furthermore, the Clean Air Act Amendments state that tribes will be treated as states for purposes of delegating authority to regulate air quality for " ... air resources within the exterior boundaries of the reservation or other areas within the tribe's jurisdiction (42 U.S.C. §7601(d)(2)(B))." To implement that provision, the Tribal Authority Rule passed in 1998 allows tribes to be treated as states for virtually all Clean Air Act programs, including the operating permit program.

STATE ACTIONS

Texas Emissions Reduction Plan

Texas currently has 16 counties that are classified as nonattainment areas for one or more "criteria pollutants," and many more that are approaching that classification. In response, the Texas Legislature created the Texas Emissions Reduction Plan, effective Sept. 1, 2001, to provide incentives to lower emissions that impede the state from attaining federal air quality standards (see State Legislation section of this newsletter). Sponsored by Senator J.E. "Buster" Brown, the chairman of the Senate Natural Resources Committee, the seven-year program will use increased consumer and business fees to provide incentives to consumers and businesses to purchase cleaner-burning and more energy-efficient products.

To pay for the new programs, the Texas Emissions Reduction Plan Fund has been established. The fund will consist of money collected from increased registration fees for commercial vehicles, fees for the sale or lease of construction equipment and large on-road diesel vehicles, fees for all vehicles registering for the first time in Texas, and fees for commercial vehicle inspections. It is estimated that more than $150 million will be collected during the next five years.

The majority of the funds will go to the diesel reduction incentive plan, which includes grants for several eligible actions, including:

• Purchasing or leasing non-road diesel vehicles such as construction equipment;

• Retrofitting and replacement of diesel engines to reduce emissions;

• Developing and demonstrating technologies for lowering diesel engine emissions;

• Using alternative fuels; and

• Infrastructure projects.

Other components of the plan include an on-road diesel vehicle purchase incentive program that would apply to vehicles such as delivery trucks, school buses and garbage trucks, as well as incentives for certain automobile purchases. Tax exemptions are provided for certain low-emission diesel fuel, and an energy efficiency grant program would target projects that replace building materials and appliances that "contribute to peak energy demand."

The new law also creates the Texas Council on Environmental Technology to administer grants to promote emissions-reducing technologies. Research projects that deal with reduction of state vehicle emissions, low-emission vehicles, air quality modeling, and building and appliance energy efficiency are eligible for these grants. Finally, the law adopts the energy efficiency chapter of the International Residential Code as the energy code for single-family homes.

MTBE Waiver Considerations

Since the U.S. Environmental Protection Agency (EPA) denied California's request on June 12 to waive the federal Clean Air Act's (CAA) requirement that reformulated gasoline (RFG) continue to utilize oxygen additives (see July 2001 Clean Air Newsletter article on waiver denial), New York, New Hampshire and other northeastern states have begun to consider requesting waivers. Of primary concern to the states is methyl tertiary butyl ether (MTBE), which is used to oxygenate gasoline. This ether oxygenate delivers high octane levels at a relatively low cost and meets the CAA's 2-percent oxygen requirement. MTBE provides for more efficient and complete burning of fuel, which reduces carbon monoxide (CO) emissions.

Many states have passed legislation to ban or phase out the use of MTBE as a fuel additive because of possible health risks (see State Legislation section of this newsletter). Due to leaks from underground gasoline storage tanks and pipelines, MTBE is seeping out and contaminating ground and drinking water supplies. MTBE readily dissolves in water, moves rapidly through aquifers and soil, is resistant to microbial breakdown and decay, and is difficult to remove through water purification processes. EPA has classified MTBE as a potential human carcinogen, but has not established a drinking water standard. The California Department of Health Services, however, has set a standard.

Despite the ruling against California, New York's Department of Environmental Conservation (DEC) believes that oxygenates no longer are necessary in gasoline because engine technology has advanced and engines are being manufactured to burn cleaner and produce fewer emissions. New York's potential application for a waiver would focus on the EPA's approval of computer modeling of vehicle engines that produce fewer emissions. DEC has not decided, however, when or if it will file a request. The state currently is working in Congress to support legislation to repeal the oxygenate requirement. If these efforts fail, New York will consider how to progress with the petition waiver.

Other northeastern states also are considering requests to waive the oxygenated fuel requirement and support elimination of the oxygen mandate. Justifications that officials may use in their waiver petitions include a recent report (see below) recommending a thorough study of the use of ethanol instead of MTBE and an analysis of its effect on the environment; additional testing to measure potential increases in emissions from the use of ethanol in non-road vehicles, such as lawn and garden equipment; data on evaporative emissions that auto makers recently have developed and that was not previously available for California to use in its petition; and further analysis of the effects of mixing ethanol and non-ethanol fuels if MTBE is phased out in the region.

New Hampshire had voluntarily entered into the RFG program but now is trying to leave the program (see State Legislation section in this newsletter). EPA will not allow the state to leave the program unless it has its own gasoline rule in place. The Department of Environmental Services (DES) has adopted a rule, conditionally approved by the Joint Legislative Committee on Administrative Rules on October 19, that would create a new fuel-oxyfree reformulated gasoline (OFRFG)-that would meet federal standards but would not contain oxygenates. The state wants to end the use of MTBE and does not want to replace it with ethanol-an alcohol oxygenate derived from corn-because it would have to be imported and raises other air quality concerns. New Hampshire has endorsed the findings of a report written by the Northeast States for Coordinated Air Use Management and the New England Interstate Water Pollution Control Commission-Health, Environmental and Economic Impacts of Adding Ethanol to Gasoline in the Northeast States-that calls for further studies of ethanol to determine its effects on human health.

Court Upholds California Fleet Rules

A federal court has upheld fleet rules proposed by the South Coast Air Quality Management District (SCAQMD), the air pollution control agency for Orange County, California. In 1987, the California Legislature adopted a Health and Safety Code that authorized SCAQMD to adopt fleet rules in an effort to reduce public exposure to motor vehicle pollution. The rules require city, state and other public agencies in the greater Los Angeles area to make a gradual transition and begin purchasing or leasing low-emission or alternative-fuel vehicles for their fleets. When a fleet is replacing or adding vehicles, it is required to purchase an alternative-fuel vehicle in order to phase out the older, higher polluting models. These vehicles include public transit and school buses, garbage trucks, public works vehicles, airport shuttles and street sweepers. The rules most recently took effect on July 1, 2001; additional rules are scheduled for July 1, 2002.

The Engine Manufacturers Association challenged the rules. This trade association represents the leading manufacturers of internal combustion engines used in most heavy- and medium-duty vehicles, not including passenger cars. It claimed that the Clean Air Act (CAA) preempts SCAQMD from imposing the requirements, and that they constitute local vehicle emissions standards prohibited under the CAA.

U.S. District Judge Florence-Marie Cooper disagreed and wrote that the fleet rules " ... regulate the purchasing and leasing of vehicles by fleet operators ... The rules impose no new emissions requirements on manufacturers whatsoever, and therefore do not run afoul of Congress' purpose behind motor vehicle preemption: namely the protection of manufacturers against having to build engines in compliance with a multiplicity of standards." The court concluded that " ... the fleet rules were not preempted by ... the Clean Air Act and are a valid exercise of SCAQMD's authority."

Technical Assistance

NCSL's Clean Air Project offers technical assistance that may include testimony at legislative committee meetings by NCSL staff or non-NCSL resource persons, state-specific research and policy analysis, or bill review and drafting assistance. Contact any of the NCSL staff listed below at (303) 364-7700 for details on how to request technical assistance or help with other clean air questions.

Staff Contacts: Susan Johnson and Larry Morandi

STATE LEGISLATION

As initially reported in the July 2001 Clean Air Newsletter, the 2001 state legislative sessions have seen significant activity in air quality legislation. Much of it has been related to the concerns over energy supply and the air quality effects of accelerated electricity generation. The California Legislature, for example, passed legislation requiring the State Air Resources Board to establish a schedule for retrofitting electric generating facilities and implementing an emissions trading program for power plants (SBX1 28). Illinois enacted legislation that requires the Illinois Environmental Protection Agency to report findings to the legislature and authorizes it to propose rules to reduce nitrogen oxide, sulfur dioxide and mercury emissions, and provide voluntary incentives to reduce greenhouse gas emissions from fossil fuel-fired electric generating plants (SB 372). Montana passed legislation that would enable small, temporary power plants to operate without an air quality permit provided they do not violate ambient air quality standards (SB 398). Oklahoma enacted a law that provides tax credits for the generation of electricity from zero-emission facilities (SB 440). Although the legislation was vetoed by the governor, the Connecticut General Assembly passed legislation that would have placed a sulfur dioxide emissions cap on older, high-polluting facilities and authorized the cap to be suspended during electricity shortages (SHB 6365).

Incentives for alternative fuel vehicles also captured significant legislative attention. Georgia expanded its tax credit program for the purchase of low-emission vehicles to include a higher credit for the purchase of a zero-emission vehicle (HB 261). Hawaii adjusted its fuel tax by reducing the rate assessed on alternative fuels (HB 1345). Oklahoma extended its income tax credit for investment in clean burning fuel property (HB 1219). The Illinois General Assembly is close to passing a measure that would extend the conversion cost rebate program for vehicles that run on alternative fuels and would create an Alternative Fuel Infrastructure Program to award grants to construct alternative fueling facilities (HB 2).

The single issue garnering the most legislative interest has been methyl tertiary butyl ether (MTBE). Five states-Illinois, Kansas, New Hampshire, South Dakota and Washington-have enacted legislation to phase out the use of MTBE as a gasoline additive in reformulated gasoline (see related story on EPA's denial of California's request for a waiver of the oxygenate requirement and actions being considered by northeastern states in this newsletter).

The details are contained in the following tables, which summarize bills either enacted or being close to passage during the 2001 sessions. To download copies of the legislation cited, log on to NCSL's Web site at www.ncsl.org, and go to Internet Sites of State Legislatures.

Summaries of Selected 2001 Bills

Category	State	Bill Number	Status	Description
Alt Fuel	Arizona	HB 2123	Enacted	Allows public sector fleets to meet 100 percent of their alternative fuel/clean burning fuel mandates requirements with biodiesel, up from the previous 50 percent. The bill defines Biodiesel as a mono-alkyl ester-based oxygenated fuel that meets the standards for California diesel fuel as adopted by the California Air Resources Board.
Alt Fuel	Arizona	SB 1371	Enacted	Places a permanent moratorium on the grant program for the purchase, conversion or retrofitting of an alternative fuel vehicle.
Alt Fuel	California	AB 1390	Enacted	Requires any air quality management district or air pollution control district with a population greater than 1million to expend at least 50 percent of revenue in the Carl Moyer program, programs to fund the purchase of reduced emissions school buses, and diesel mitigation programs in a way that directly reduces air pollution in communities with the most exposure to air contaminants, including communities with high minority and low-income populations. The bill also expands an existing grant program that provides funds to purchase or lease zero-emission vehicles to include public agencies.
Alt Fuel	Georgia	HB 261	Enacted	Expands Georgia's $2,500 tax credit program for the purchase or lease of a low-emission vehicle to include a $5,000 tax credit for the purchase or lease of a zero emission vehicle that is registered in the State of Georgia.
Alt Fuel	Hawaii	HB 1345	Enacted	Encourages the use of alternative fuels by adjusting the fuel tax to reflect the energy content of alternative fuels (for example, assessing alternative fuels at rates from 22 percent to 50 percent of the rate for diesel fuel), and reducing the fuel tax rate of alternative fuels.
Alt Fuel	Illinois	HB 2	Passed both Houses; in Conference Committee	Creates an Alternate Fuel Infrastructure Program and an Alternate Fuel Infrastructure Advisory Board to develop procedures for the awarding of grants by the Illinois Environmental Protection Agency for the building of E85 blend, propane and compressed natural gas (CNG) fueling facilities. Grants may cover up to 80 percent of the costs of building alternate fuel facilities. Extends the conversion cost rebate program for the conversion of vehicles to run on alternate fuels through 2004 and later, provided funds continue to be available.
Alt Fuel	Nevada	SB 478	Enacted	Authorizes the Department of Conservation and Natural Resources to develop a program to provide incentives for the use of clean burning fuel in motor vehicles.
Alt Fuel	Oklahoma	HB 1219	Enacted	Provides a fuel tax exemption for special fuels purchased by school districts and the Oklahoma Department of Transportation for use in motor vehicles for business purposes. Extends the state income tax credit for investment in clean burning motor fuel property from 2002 to 2009.
Electric Generation	California	SBX1 28	Enacted	Among other provisions related to electric generation, the bill requires the California Air Resources Board (CARB) to establish a schedule for the retrofitting of electric generating facilities for completion by December 31, 2004. CARB is further required to implement an emissions banking, trading and purchasing program for electric generating facilities. To assist new power plants in complying with emissions offset requirements as a condition for permit approval, the bill authorizes a permit applicant to pay an emissions offset fee to the appropriate air pollution control district for the district to purchase the necessary offset credits for the facility.
Electric Generation	Connecticut	SHB 6365	Passed both Houses; Vetoed by Governor	Places a sulfur dioxide emissions cap on Title IV electric generating facilities. Authorizes the emissions cap to be suspended on an emergency basis during electricity shortages. Establishes a loan program to assist Title IV facilities in installing pollution control equipment. Exempts from the tax assessed on petroleum product refiners and distributors the sale of liquid fuel to Title IV facilities containing a sulfur content of less than 0.3 percent.
Electric Generation	Illinois	SB 372	Enacted	Requires the Illinois Environmental Protection Agency to report findings to the legislature by September 30, 2004, on the potential need to reduce emissions from fossil fuel-fired power plants of nitrogen oxides, sulfur dioxide and mercury through regulations or emissions trading; to provide incentives for renewable energy; and to establish a banking program for certifying credits for voluntary offsets of greenhouse gas emissions. The agency may propose rules to implement its findings 90 days after submission of its report to the legislature.
Electric Generation	Montana	SB 398	Enacted	Authorizes small, temporary power plants to be constructed and operate without an air quality permit provided the power plant does not violate ambient air quality standards.
Electric Generation	Oklahoma	SB 440	Enacted	Among other provisions, the bill provides an income tax credit for the production and sale of electricity generated by a zero-emission facility, such as wind, solar, hydroelectric or geothermal. The tax credit initially is set at $.0075 per kilowatt hour of electricity.
Electric Generation	Virginia	SB 1386	Enacted	Requires that the Air Pollution Control Board's emissions banking and trading regulations applicable to the electric power industry promote competition in the industry; encourage construction of clean, new generating facilities; provide set-asides for new sources of emissions of 5 percent for the first five years and 2 percent annually thereafter; and provide an initial allocation period of five years.
Emission Fees	Colorado	HB 1326	Enacted	Increases the fees on stationary sources for air pollutant emission notice, per ton of regulated pollutant, hazardous air pollutant, and hourly rate for evaluation. The per ton of regulated pollutant fee increases 20 percent from $14.98/ton to $17.97/ton.
Emission Fees	Michigan	HB 4792	Enacted	Increases the facility charge on Category I, Category II and Category III facilities. Increases the emissions charge on Category I and Category II facilities from $34.00/ton of pollutant to $45.25/ton. Increases the emissions charge on municipal electric generating facilities that emit between 450-18,000 tons of pollutant from $18,675 to a range of $24,816 to $159,459, based on the number of tons emitted.
Emission Fees	North Carolina	HB 969	Passed both Houses; in Conference Committee	Increases the emissions and inspection fee for motor vehicles in the nine counties that are currently required to undergo both tests from $19.40 to $34.00 by January 1, 2003.
Emission Fees	Texas	SB 5	Enacted	Creates the Texas Emissions Reduction Plan to be administered by the Texas Natural Resource Conservation Commission, the Comptroller, and the newly created Council on Environmental Technology. Creates the Texas Emissions Reduction Plan Fund comprised of new surcharges and fees. Allocates 72 percent of the revenue in the fund for the diesel reduction incentive plan, and 10 percent to the motor vehicle purchase or lease incentive program.
Emissions Trading	Missouri	SB 374	Enacted	Establishes the Missouri Air Emissions Banking and Trading Program. To be credited for deposit in the bank, any reduction in air emissions must be permanent, quantifiable and federally approved. In nonattainment areas, the bank of pollutants must be reduced by 3 percent annually until the area reaches attainment status.
Emissions Trading	Nevada	SB 535	Enacted	Authorizes a local air pollution control program in counties with a population of 400,000 or greater to include an emissions credit banking and trading program. The program may require applicants for new facilities or modification of existing facilities that will result in an increased level of emissions in the area to offset the emissions increase through the purchase of credits.
Emissions Trading	Texas	SB 1561	Enacted	Authorizes the Texas Natural Resource Conservation Commission, to the extent allowed by federal law, to count emissions reductions achieved outside the United States toward satisfying applicable emissions reduction requirements in Texas, provided the commissioner determines that the emissions reductions are in excess of those required by applicable law and are quantifiable and enforceable.
MTBE	Illinois	HB 171	Enacted	Prohibits the use, sale, distribution, blending or manufacturing of methyl tertiary butyl ether (MTBE) as a fuel additive in the state beginning three years after the effective date of the legislation.
MTBE	Kansas	SB 37	Enacted	Prohibits the sale of gasoline containing methyl tertiary butyl ether (MTBE) in quantities greater than 0.5 percent by volume after July 1, 2004, provided the U.S. Environmental Protection Agency has granted the state a waiver allowing the state to ban or control MTBE.
MTBE	New Hampshire	HB 758	Enacted	Authorizes the state to opt out of the federal reformulated gasoline program no later than January 1, 2004, and empowers the Department of Environmental Services (DES) commissioner to work with the U.S. Environmental Protection Agency to achieve that objective. Authorizes the DES commissioner to establish limits on the manufacture, use or sale of methyl tertiary butyl ether (MTBE). Authorizes the DES commissioner to implement an alternative or regional gasoline approach. Establishes a gasoline remediation and elimination of ethers fund, and a fee to capitalize the fund. The fund is to be used to mitigate the presence of MTBE in groundwater.
MTBE	New Jersey	SB 2137	Passed Senate; Reported out of Assembly Committee	Prohibits the sale of gasoline containing methyl tertiary butyl ether (MTBE) on January 1, 2004. Directs the Department of Environmental Protection to seek from the U.S. Environmental Protection Agency a waiver from the federal oxygenate in gasoline requirement.
MTBE	South Dakota	SB 161	Enacted	Prohibits the sale, offering for sale, or storing of petroleum products containing or treated with methyl tertiary butyl ether (MTBE).
MTBE	Washington	HB 1015	Enacted	Prohibits methyl tertiary butyl ether (MTBE) as a gasoline additive after December 31, 2003.
Motor Vehicle Emissions Testing	Arizona	HB 2449	Enacted	Requires diesel powered motor vehicles with a gross weight of 8,500 pounds or greater to pay a diesel air quality fee of $10 at the time of registration. Revenue raised from the fee is deposited in the newly created Voluntary Vehicle Repair and Retrofit Program that counties with a population of 400,000 or greater must operate. Diesel vehicles that fail an air emissions test are eligible for up to $1,000 from the program in repair costs, subject to a match requirement.
Motor Vehicle Emissions Testing	Arizona	HB 2538	Enacted	Implements recommendations of the Governor's Brown Cloud Summit. Expands the geographic boundary for Area A in which new measures apply. Establishes engine idling restrictions for heavy duty diesel vehicles in Area A no later than July 1, 2002. Requires the Department of Environmental Quality (DEQ) to administer a roadside diesel emissions testing pilot program. Requires DEQ to establish a visibility index in Area A no later than December 31, 2003. Pushes back the start date for Arizona's emissions bank program from January 1, 2001 to January 1, 2002. Repeals the Clean Air Fund on June 30, 2003. Retains and modifies the diesel conversion grant program and the statewide refueling systems grant program.
Motor Vehicle Emissions Testing	Colorado	HB 1402	Enacted	Extends the Clean Screen emissions testing program, which uses remote sensing instead of a centralized testing station, from Larimer and Weld counties to the enhanced emissions inspection area no later than January 1, 2002. Authorizes the contract for the centralized emissions testing program in the enhanced emissions testing area to be renewed for two years, with an option for one additional four-year period.
Motor Vehicle Emissions Testing	Texas	HB 2134	Enacted	Creates a Low-Income Vehicle Repair Assistance, Retrofit and Accelerated Vehicle Retirement Program in the Texas Natural Resource Conservation Commission motor vehicle inspection/maintenance program. The new program is a voluntary program operated by counties funded through fees collected from motor vehicle inspections.
Motor Vehicle Replacement	Maine	SB 629	Enacted	Allows revenue in the Clean Fuel Fund to be used to pay automobile scrappers a maximum of $350 to scrap high-pollution motor vehicles.
No More Stringent Than	Montana	HB 605	Enacted	Authorizes the state to adopt air pollution control regulations that are more stringent than comparable federal regulations only if specific criteria are met. Increases the stringency of findings that a local government must demonstrate as a condition for adopting local air pollution control regulations that are more stringent than comparable state or federal regulations.

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