EPA's Proposal to Grant New Hampshire's OTR Withdrawal

The U.S. Environmental Protection Agency announced two proposed actions that would grant New Hampshire's petition to withdraw from the Ozone Transport Region (OTR) and conditionally approve the removal of the state's Vehicle Inspection and Maintenance (I/M) program from its State Implementation Plan. The moves come after Governor Kelly Ayotte signed a law in June 2025 repealing the emissions testing program, and the state formally requested EPA's approval for the SIP change in December 2025.

Currently, New Hampshire is part of the OTR, a coalition of northeastern states required to include ozone-reduction measures in their clean-air plans even if they already meet federal standards. Because of that membership, the state's SIP mandates the I/M program. Under the Clean Air Act, New Hampshire must secure EPA approval to end the program by demonstrating that doing so won't interfere with national air quality standards—and it must first be removed from the OTR.

EPA Administrator Lee Zeldin framed the proposals as an exercise in cooperative federalism, saying the agency is committed to reducing unnecessary regulatory burdens while following statutory obligations. The EPA said it is expediting the review, aiming for a final decision before the end of 2026 rather than the typical 18-month timeline. Separate 45-day public comment periods and a public hearing on the OTR withdrawal will follow.

What the Shift Means for New Hampshire and Federal-State Relations

Auto Repair Shops Lose a Mandated Revenue Stream

For the roughly 1,200 inspection stations statewide, the proposal signals a meaningful loss of business. Annual emissions tests—required for most gasoline-powered vehicles—currently generate a steady flow of inspection fees. If finalized, the change would eliminate that mandated customer touchpoint, potentially reducing foot traffic and ancillary repair work that often results from tests that identify needed fixes.

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Air Quality Concerns vs. Existing Attainment

Environmental advocates are likely to argue that withdrawing from the OTR removes a structural backstop for air quality, especially as ozone transport from upwind states remains a regional challenge. However, New Hampshire already meets current federal ozone standards, and the state’s petition must demonstrate that ending the I/M program will not cause or contribute to any violation. The EPA's conditional approval suggests the agency has accepted that showing, though public comment and judicial challenges could still delay or block the change.

The Broader Federalism Play

Beyond one state's regulatory shift, the actions fit a pattern of Trump-era EPA decisions that prioritize state autonomy and expedited rulemaking. By shortening the decision timeline and explicitly linking the move to reducing regulatory burden, the EPA is signaling to other OTR states that similar petitions might receive a friendly reception. This could reshape the decades-old regional ozone framework if other states follow suit.

Practical Implications for Drivers, Repair Shops, and Air Quality

  • New Hampshire drivers: If the proposals are finalized, annual emissions testing for passenger vehicles would likely end, eliminating inspection fees and the need for pre-test repairs on older cars.
  • Inspection stations and repair shops: Businesses that rely heavily on emissions testing income should plan for revenue diversification, as mandatory test visits will disappear once the program is removed from the SIP.
  • Environmental and public health groups: The 45-day comment period is the immediate window to raise concerns about ozone impacts or challenge the EPA's finding that the change won't interfere with air quality standards.