To create a shared network for inspection stations in the New York metropolitan area.
Substance of proposed rule (Full text is posted at the following State website: www.nysdmv.com):
The primary purposed of this regulation is to establish the NYTEST shared network to address the diminishing need for NYTEST equipment in the New York Metropolitan Area. The regulation establishes the criteria for sending and receiving stations that volunteer to participate in the shared network. It also insures that motorist's vehicles will be properly inspected in accordance with Part 79. The proposed rule also:
Makes technical amendments for equipment requirements for all inspection stations.
Sets forth waiver of equipment criteria in heavy vehicle fleet inspection stations.
Broadens the authority of municipalities to inspect vehicles owned by other municipalities.
Establishes the criteria for the issuance of temporary inspector certificates.
Text of proposed rule and any required statements and analyses may be obtained from:
Carrie L. Stone, Counsel's Office, Department of Motor Vehicles, 6 Empire State Plaza, Rm. 526, Albany, NY 12228, (518) 474-0871, email: carrie.stone@dmv.state.ny.us.
Data, views or arguments may be submitted to:
Ida L. Traschen, First Assistant Counsel, Department of Motor Vehicles, Empire State Plaza, Swan St. Bldg., Rm. 526, Albany, NY 12228, (518) 474-0871
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory authority: Section 301(d) of the Vehicle and Traffic Law authorizes the Commissioner, in consultation with the Commissioner of the Department of Environmental Conservation, to implement a motor vehicle emissions inspection program. Section 302(a) of such Law provides that it shall be the duty of the Commissioner to administer the provisions of Article 5. Section 302(e) of such Law empowers the Commissioner to make reasonable rules and regulations for the administration and enforcement of Article 5 and the periods during which motor vehicles are required to be inspected. Section 302(f) provides that the Commissioner may authorize municipalities to conduct the inspections required by Article 5, if such municipality has the personnel and facilities to conduct such inspections. Section 304(b) of such Law requires the Commissioner to establish procedures for reporting the results of inspections and notifying owners.
2. Legislative objectives: The Federal Clean Air Act of 1990 (42 U.S.C 7401 et. seq.) and the accompanying regulations at 40 CFR Part 51 require states to implement an inspection and maintenance program that conforms to such federal regulations. The Clean Air Act required New York State to establish a dynamometer based emissions inspection program in the New York Metropolitan Area (NYMA). Failure to do so would have cost the State millions of dollars in federal highway funding. Thus, pursuant to Article 5 of the Vehicle and Traffic Law, the Department established such a program in the NYMA in 1998, known as the NYTEST (NY Transient Emissions Short Test) program. Since 2005, with the implementation of the NY Vehicle Inspection Program using the on board-diagnostic equipment (OBDII), the NYTEST program has only applied to pre-1996 vehicles. Thus, the NYTEST equipment is used far less often but is increasingly costly to maintain. As explained below, the Shared Network proposal set forth in this rulemaking, retains the NYTEST system in accordance with the legislative objectives of the Clean Air Act, but also grants inspection stations a potentially less costly way to service customers who own pre-1996 vehicles.
3. Needs and benefits: This proposed rule is necessary to implement the Shared Network concept in order to maintain the viability of the NYTEST high enhanced emissions program, which is mandated by the Clean Air Act of 1990. In order to comply with the Act, DMV is requiring inspection stations to maintain their dynamometers, which conduct the emissions test, for another two to four years. (The timeframe will be determined by DEC in accordance with the State Implementation Plan that documents our compliance with the Act.) DMV consulted closely with DEC in developing this program. Since only pre-1996 vehicles are subject to this test, far fewer vehicles are being tested annually. For example, in 2006, inspection stations in the Bronx inspected 72,319 vehicles. Such stations expect to inspect 18,958 vehicles in 2012. In 2006, stations in Nassau County inspected 202,515 vehicles. They expect to inspect 53,088 vehicles in 2012.
Though the number of inspections continues to dramatically decrease, the cost of maintaining the aging equipment continues to increase. Many stations contract with one of three vendors for the maintenance of the NYTEST system, at a cost ranging from $2,500 to $7,000. As the equipment ages and becomes less reliable, these costs are expected to rise.
Recognizing the NYTEST system's negative business impact on inspection stations, while also cognizant of our Clean Air Act obligations, the Department, in response to industry representatives' requests, has proposed the Shared Network concept. This is a voluntary option open to current inspection stations, that is, stations may continue to operate the NYTEST system under the current rules.
Those stations that choose to participate in the Shared Network shall either be a sending station or receiving station. The sending and receiving stations will sign an agreement requiring the sending to refer customers to a receiving station for the inspection. The receiving station will be required to perform the inspection for the fee established in regulation. The sending station will benefit because it will no longer be required to have the NYTEST inspection equipment, thus saving all costs associated with maintenance of the equipment. The receiving station, which will perform NYTEST inspections, will benefit because it will receive more inspection business and may, as a consequence, gain more regular customers to provide other services, such as repairs. Customers' needs will be satisfied because DMV will cap the number of sending stations to insure that there are a sufficient number of NYTEST stations capable of performing the inspections.
This amendment also allows any state agency or political subdivision licensed as an official fleet inspection station to inspect any vehicle registered in the name of any other state agency or political subdivision. This would facilitate greater cooperation between state agencies and political subdivisions with the added benefit of providing cost savings to local taxpayers.
4. Costs: a. to regulated parties: The Shared Network concept imposes no mandatory costs upon stations because it is a voluntary program. Sending stations will benefit because they will no longer pay costs associated with maintaining the NYTEST system. Receiving stations will benefit because they will draw more customers for inspections. In addition, as part of the agreement between the stations, the receiving station will have the option of charging the sending station a fee for its services.
Stations that choose not to participate in the Shared Network will continue to bear the cost of maintaining the equipment.
b. cost to the State, the agency and local governments: There are no costs to the State, DMV or to local governments. DMV's existing staff will continue to monitor the Clean Air program per current guidelines and protocols.
The amendment that broadens the authority of municipalities to inspect other municipalities vehicles will help streamline the costs of inspections for certain local governments.
c. source: DMV's Office of Vehicle Safety.
d. cost to vehicle registrants. There are no costs to motor vehicle registrants. They will pay the current inspection fees set forth in regulation.
5. Local government mandates: There are no new mandates imposed upon local governments. In fact, the amendment that broadens the authority of municipalities to inspect other municipalities vehicles will help streamline the costs of inspections for certain local governments.
6. Paperwork: This proposal requires sending stations to notify DMV each time that they add or drop a NYTEST receiving station. This will be reported on the shared network application form (MV-253SN). In addition, sending and receiving stations will sign a shared network agreement setting forth the contractual terms of their relationship.
7. Duplication: This proposed regulation does not duplicate or conflict with any State or Federal rule.
8. Alternatives: In trying to address the high cost of the NYTEST system, DMV considered multiple alternatives in consultation with DEC, the vendors and the industry. Although maintaining the status quo would be the simplest solution for DMV, we sought other avenues to meet industry needs. Some of the ideas that DMV considered and rejected include:
Increase the inspection fee for the NYTEST inspection.
NYTEST stations would receive a subsidy.
Stations leaving the NYTEST program would be charged a buyout fee. Remaining stations would receive a subsidy.
Establish a vehicle buyback program of old vehicles
Establish a centralized program.
The Department concluded that in light of fiscal concerns and administrative practicalities, the Shared Network concept best met the needs of all parties. The rule maintains customer service, keeps us in compliance with the Clean Air Act and grants inspection stations the option to participate in a program relieving some of the fiscal burdens of participating in the NYTEST program in light of the declining pre-1996 vehicle population. This proposed rule was distributed to several interested parties for comment. We received responses from SPX Corporation (a vendor), ESP Corporation (a vendor) the Gasoline and Automotive Service Dealers, the Greater New York Automobile Dealers Association, the Service Station Dealers of Greater New York, Inc and the Long Island Gasoline Retailers Association. DMV carefully considered all comments when finalizing this proposed rule.
The Department will publish a Small Business Guide explaining this rule.
9. Federal standards: The rule does not exceed the Federal emission standards set forth in the Clean Air Act of 1990 or its accompanying regulations at 40 CFR Part 51.
10. Compliance schedule: Upon adoption of the regulation.
Regulatory Flexibility Analysis
1. Effect of rule: The Department estimates that there are approximately 3,300 public inspection stations in the New York Metropolitan Area (NYMA). These are small businesses. This amendment would allow any state agency or political subdivision licensed as an official fleet inspection station to inspect any vehicle registered in the name of any other state agency or political subdivision. This would facilitate greater cooperation between state agencies and political subdivisions with the added benefit of providing cost savings to local taxpayers.
2. Compliance requirements: Those stations that choose to participate in the Shared Network program will notify DMV each time that they add or drop a NYTEST receiving station. This will be reported on the shared network application form (MV-253SN). In addition, sending and receiving stations will sign a shared network agreement setting forth the contractual terms of their relationship.
3. Professional services: This regulation would not require inspection stations to obtain new professional services beyond any that they may already use.
4. Compliance costs: The Shared Network concept is a voluntary program and imposes no mandatory costs upon stations. Sending stations will benefit because they will no longer pay costs associated with maintaining the NYTEST system. Receiving stations will benefit because they will draw more customers for inspections. In addition, as part of the agreement between the stations, the receiving station will have the option of charging the sending station a fee for its services.
Stations that choose not to participate in the Shared Network will continue to bear the cost of maintaining the equipment.
5. Economic and technological feasibility: This proposal will not impose any new technological requirements for inspection stations. The receiving stations will already have the NYTEST equipment. The sending stations will be relieved of the cost of maintaining the equipment but, most likely, will pay a contractual fee to the receiving stations.
6. Minimizing adverse impact: As explained in the Regulatory Impact Statement's “Alternatives” section, DMV considered many alternatives to the current NYTEST program and consulted widely with DEC, the vendors and the industry. The current program, with the declining pre-1996 vehicle population is producing an economic hardship for many inspection stations due to the high cost of maintaining the aging NYTEST equipment. The Shared Network proposal offers an option to relieve some of these stations of the burden of maintaining the equipment. At the same time, DMV will insure that there will be sufficient operational NYTEST stations to satisfy customer.
The Department will publish a Small Business Guide regarding this rule, which shall assist small businesses in meeting its requirements.
7. Small business and local government participation: This proposed rule was distributed to several interested parties for comment. We received responses from SPX Corporation (a vendor), the Gasoline and Automotive Service Dealers, the Greater New York Automobile Dealers Association, the Service Station Dealers of Greater New York, Inc and the Long Island Gasoline Retailers Association. DMV carefully considered all comments when finalizing this proposed rule.
Since May 2006, DMV has consulted extensively with the vendors and the associations that represent the inspection stations. We have held eight meetings with the industry throughout the State about the Shared Network proposal. We consulted with, among others, SPX Corporation (a vendor), ESP Corporation (a vendor) the Gasoline and Automotive Service Dealers, the Greater New York Automobile Dealers Association, the Service Station Dealers of Greater New York, Inc, the Long Island Gasoline Retailers Association, AAA of New York State, Keyspan, the New York State Automobile Dealers Association and the New York Association of Service Stations and Repair Shops. As the result of these meetings, DMV believes that the Shared Network proposal most fairly addresses the economic problems posed by the current NYTEST programs.
This amendment would allow any state agency or political subdivision licensed as an official fleet inspection station to inspect any vehicle registered in the name of any other state agency or political subdivision. This would facilitate greater cooperation between state agencies and political subdivisions with the added benefit of providing cost savings to local taxpayers. This language was added in response to concerns raised by local governments about streamlining their inspection programs.
Rural Area Flexibility Analysis
A RAFA is not attached because this rule will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas. In fact, this proposal only affects inspection stations in the New York Metroplitan Area.
Job Impact Statement
A Job Impact Statement is not submitted with this proposal because there is no adverse on impact on job creation or development in New York State.
