Air Plan Approval; Ohio; Removal of Gasoline Volatility Requirements in the Cincinnati and Dayton Areas, 10727-10732 [2017-03082]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 82, Number 30 (Wednesday, February 15, 2017)]
[Proposed Rules]
[Pages 10727-10732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03082]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2016-0781; FRL-9959-27-Region 5]


Air Plan Approval; Ohio; Removal of Gasoline Volatility 
Requirements in the Cincinnati and Dayton Areas

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a State Implementation Plan (SIP) revision submitted by the 
Ohio Environmental Protection Agency (Ohio EPA) on December 19, 2016, 
concerning the state's gasoline volatility standards in the Cincinnati 
and Dayton areas. The revision removes the 7.8 pounds per square inch 
(psi) low Reid Vapor Pressure (RVP) fuel requirements for the two areas 
as a component of the Ohio ozone SIP. The submittal also includes a 
section 110(l) demonstration as required by the Clean Air Act (CAA) 
that addresses emission impacts associated with the removal of the 
program.

DATES: Comments must be received on or before March 17, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2016-0781 at https://www.regulations.gov, or via email to 
blakley.pamela@epa.gov. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section. For the full 
EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Mobile Source 
Program Manager, Control Strategies Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 886-6061, 
acevedo.francisco@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. Background
II. What changes have been made to ohio's gasoline volatility 
standards?
III. What is EPA's analysis of the State's submittal?
IV. What action is EPA proposing to take?
V. Impacts on the Boutique Fuels List
VI. Statutory and Executive Order Reviews

I. Background

    Under section 211(c) of the CAA, EPA promulgated regulations on 
March 22, 1989 (54 FR 11868) that set maximum limits for the RVP of 
gasoline sold during the regulatory control periods that were 
established on a state-by-state basis in the final rule. The regulatory 
control periods addressed the portion of the year when peak ozone 
concentrations were expected; which is during the summertime. These 
regulations constituted Phase I of a two phase nationwide program, 
which was designed to reduce the volatility of commercial gasoline 
during the high ozone season. Depending on the state and month, 
gasoline RVP was not to exceed 10.5 psi, 9.5 psi, or 9.0 psi. Phase I 
was applicable to calendar years 1989 through 1991. On June 11, 1990 
(55 FR 23658), EPA promulgated more stringent volatility controls as 
Phase II of the volatility control program. These requirements 
established maximum RVP standards of 9.0 psi or 7.8 psi (depending on 
the state, the month, and the area's initial ozone attainment 
designation with respect to the 1-hour ozone national ambient air 
quality standards (NAAQS)). Phase II is applicable to 1992 and 
subsequent years.
    The 1990 CAA Amendments established a new section, 211(h), to 
address fuel volatility. Section 211(h)(1) requires EPA to promulgate 
regulations making it unlawful to sell, offer for sale, dispense, 
supply, offer for supply, transport, or introduce into commerce 
gasoline with an RVP level in excess of 9.0 psi during the high ozone 
season. Section 211(h)(2) prohibits EPA from establishing a volatility 
standard more

[[Page 10728]]

stringent than 9.0 psi in an attainment area, except that the Agency 
may impose a lower (more stringent) standard in any former ozone 
nonattainment area redesignated to attainment.
    On December 12, 1991 (56 FR 64704), EPA modified the Phase II 
volatility regulations to make them consistent with section 211(h). The 
modified regulations prohibited the sale of gasoline, beginning in 
1992, with an RVP above 9.0 psi in all areas designated attainment for 
ozone. For areas designated as nonattainment, the regulations retained 
the original Phase II standards published on June 11, 1990 (55 FR 
23658), which included the 7.8 psi ozone season limitation for certain 
areas. Under such requirements, the state of Ohio was required to meet 
a 9.0 psi RVP standard during the summer control period.
    On April 15, 2004, the EPA designated 5 counties in the Cincinnati, 
Ohio area (Hamilton, Butler, Clinton, Warren and Clermont) and 4 
counties in the Dayton, Ohio area (Clark, Greene, Miami, and 
Montgomery) as nonattainment for the 8-hour ozone standard. As part of 
Ohio's efforts to bring these areas into attainment of the ozone 
standard, the state adopted and implemented a broad range of ozone 
control measures for the areas including the implementation of a 7.8 
psi RVP fuel program that was more stringent than the federal 9.0 psi 
RVP requirement. The Ohio EPA originally submitted a SIP revision to 
EPA on February 14, 2006 and October 6, 2006, for the purpose of 
establishing a gasoline RVP limit of 7.8 psi for gasoline sold in the 
Cincinnati and Dayton areas. The revision specifically applied to 
Butler, Clermont, Hamilton and Warren counties (Cincinnati area), and 
Clark, Greene, Miami and Montgomery counties (Dayton area) in Ohio. EPA 
approved Ohio's 7.8 psi RVP program on May 25, 2007 (72 FR 29269), 
including the program's legal authority and administrative requirements 
found in the Ohio Administrative Code (OAC) rules 3745-72-1 to 8.

II. What changes have been made to the Ohio's gasoline volatility 
standards?

    On December 19, 2016, the Ohio EPA submitted a SIP revision 
requesting that EPA approve the removal of the 7.8 psi RVP fuel 
requirements under OAC 3745-72-1 to 8 from the Ohio ozone SIP before 
the beginning of the 2017 ozone control period.
    To support the removal of the 7.8 psi RVP fuel program requirements 
from the SIP, the revision included amendments of OAC 3745-72-01 
(Applicability), as effective on August 1, 2016; a summary of the Ohio-
specific analyses using EPA's Motor Vehicle Emissions Simulator (MOVES) 
model to quantify the emissions impact associated with removing the 7.8 
psi RVP fuel program in Cincinnati and Dayton; and a section 110(l) 
demonstration that includes offset emissions documentation.

III. What is EPA's analysis of the State's submittal?

    EPA's primary consideration for determining the approvability of 
Ohio's request is whether this requested action complies with section 
110(l) of the CAA.\1\
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    \1\ CAA section 193 is not relevant because Ohio's Low RVP 
requirements in Cincinnati and Dayton were not included in the SIP 
before the 1990 CAA amendments.
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    Section 110(l) requires that a revision to the SIP not interfere 
with any applicable requirement concerning attainment and reasonable 
further progress (as defined in section 171), or any other applicable 
requirement of the CAA. EPA evaluates each section 110(l) 
noninterference demonstration on a case-by-case basis considering the 
circumstances of each SIP revision. EPA interprets 110(l) as applying 
to all NAAQS that are in effect, including those that have been 
promulgated but for which EPA has not yet made designations. The degree 
of the analysis focused on any particular NAAQS in a noninterference 
demonstration varies depending on the nature of the emissions 
associated with the proposed SIP revision.
    In the absence of an attainment demonstration, to demonstrate no 
interference with any applicable NAAQS or requirement of the CAA under 
section 110(l), EPA believes it is appropriate to allow states to 
substitute equivalent emissions reductions to compensate for any change 
to a SIP-approved program, as long as actual emissions in the air are 
not increased. ``Equivalent'' emission reductions mean reductions which 
are equal to or greater than those reductions achieved by the control 
measure approved in the SIP. To show that compensating emission 
reductions are equivalent, modeling or adequate justification must be 
provided. The compensating, equivalent reductions must represent 
actual, new emissions reductions achieved in a contemporaneous time 
frame to the change of the existing SIP control measure, in order to 
preserve the status quo level of emissions in the air. In addition to 
being contemporaneous, the equivalent emissions reductions must also be 
permanent, enforceable, quantifiable, and surplus to be approved into 
the SIP.
    In its December 19, 2016 SIP revision, the Ohio EPA includes a 
110(l) demonstration that uses equivalent emission reductions to 
compensate for emission reduction losses resulting from the removal of 
the SIP approved 7.8 psi RVP fuel requirements in the Cincinnati and 
Dayton areas in Ohio. More specifically, the emission benefits 
associated with the 7.8 psi RVP fuel requirements will be substituted 
with equivalent or greater emissions reductions from facilities in the 
Cincinnati and Dayton areas which have permanently shut down or which 
have or will cease coal operations or convert from coal to natural gas 
due to U.S. EPA's Boiler Maximum Achievable Control Technology (MACT) 
regulations. These substitute emissions are quantifiable, permanent, 
surplus (i.e., oxides of nitrogen (NOX) and volatile organic 
compound (VOC) emissions reductions are due to permanent shutdowns or 
are a co-benefit of the chosen compliance strategy for the Boiler MACT 
regulations), enforceable and contemporaneous (i.e., occurring within 
approximately one year before/after this demonstration and/or the 
anticipated cessation of the low RVP fuel program).
    To determine the emissions impact of removing the 7.8 psi RVP 
program requirements in both areas, Ohio EPA used the latest version of 
EPA's MOVES model to conduct a series of emissions analysis. Ohio EPA's 
analysis focused on VOC and NOX emissions because low RVP 
requirements primarily affect VOC emissions and because VOCs and 
NOX are precursors for ground-level ozone formation.
    Based on our review of the information provided, EPA finds that 
Ohio EPA used reasonable methods and the appropriate model in 
estimating the emissions effect of removing the 7.8 psi RVP fuel 
requirements. Ohio EPA determined that in 2017 the emissions increase 
resulting from removing the 7.8 psi RVP requirements would be 15.83 
tons per year (tpy) of VOC and 16.33 tpy of NOX in the 
Cincinnati area and 16.01 tpy of VOC and 13.93 tpy of NOX in 
the Dayton area.
    In the Dayton area, a portion of the emission reductions from the 
low RVP fuel requirements will be substituted with VOC emission 
reductions from two facilities which permanently shut down in 2016: 
Miami Valley Publishing Company (Facility ID 0829060354), which 
permanently shut down on March 29, 2016; and National Oilwell Varco 
(Facility ID 0812100350), which permanently shut down all sources

[[Page 10729]]

except for a soil vapor recovery system on June 30, 2016. Based on 
actual conservative 2015 emissions from these facilities, Ohio EPA 
determined that 3.51 tpy of VOC from the Miami Valley Publishing 
Company facility (Facility ID 0829060354) and 4.86 tpy of VOC from the 
National Oilwell Varco facility (Facility ID 0812100350) will be 
permanently retired upon EPA's approval of this SIP revision. After 
this direct substitution of VOCs, the amount of VOCs reductions needed 
in the Dayton area is reduced from 16.01 tons to 7.64 tons of VOC. (See 
Table 1)
    For the remaining reductions needed to substitute for the low RVP 
requirements, Ohio EPA will be substituting NOX for VOC 
emissions and using all-NOX reductions to offset the 
remaining NOX and VOC emissions. EPA policy allows for 
substitution between VOC and NOX emissions in its guidance 
on reasonable further progress. This guidance recommends that states 
assume, as an approximation, that equivalent percent changes in the 
area's inventory for the respective pollutant yield an equivalent 
change in ozone levels. For example, decreasing area NOX 
emissions by 3 percent would have the same effect as decreasing area 
VOC emissions by 3 percent. Stated another way, if an area has twice as 
many tons of NOX emissions as VOC emissions, then 2 tons of 
NOX emissions would be assumed to have the same effect on 
ozone as 1 ton of VOC emissions. Following this approach, Ohio EPA used 
a 1 VOC to 1.527 NOX conversion ratio for the counties 
currently in the low RVP fuel program in the Cincinnati area and a 1 
VOC to 1.021 NOX conversion ratio for the counties in the 
Dayton area. The conversion ratios use the most recent inventories 
available for both areas.
    Applying these factors, 40.50 tpy of NOX reductions will 
need to be offset by equivalent or greater emission reductions in the 
Cincinnati area and 21.72 tpy of NOX reductions will be 
needed in the Dayton area. (See Table 1)

                    Table 1--Emissions To Be Replaced
                             [Tons per year]
------------------------------------------------------------------------
                                            Cincinnati      Dayton area
                Emissions                   area  (tpy)        (tpy)
------------------------------------------------------------------------
NOX to be replaced from removal of 7.8             16.33           13.93
 low RVP program........................
VOCs to be replaced from removal of 7.8            15.83           16.01
 low RVP program........................
VOCs replaced directly with facility                0.00           *8.37
 shutdowns..............................
Remaining VOCs to be replaced...........           15.83            7.64
VOC: NOX ratio..........................         1:1.527         1:1.021
VOC converted to NOX....................           24.17            7.79
    Total NOX emissions to be replaced..           40.50           21.72
------------------------------------------------------------------------
* VOC emissions reductions from two facilities which permanently shut
  down in 2016: Miami Valley Publishing Company (Facility ID 0829060354)
  and National Oilwell Varco (Facility ID 0812100350).

    In the Cincinnati area, the 7.8 psi low RVP fuel requirements will 
be substituted with emission reductions at the MillerCoors LLC facility 
(Facility ID 1409000353) resulting from the shutdown of coal/gas fired 
boilers and installation of new natural gas fired boilers due to the 
Boiler MACT regulations. The relevant emissions units are B001, B002, 
B010 and B011. B001 and B002 coal/gas boilers were permanently shut 
down on April 1, 2016. Federally-enforceable permits prior to the 
shutdown include NOX emission limits for B001 and B002 of 
1,375.9 tpy combined, based on rolling 12-month summations. These were 
replaced with two new natural gas boilers, B010 and B011, which 
commenced operation on January 20, 2016. Federally-enforceable permits 
for the new boilers B010 and B011 include NOX emission 
limits of 1.17 tons of NOX per month over a rolling 12-month 
period for each boiler. The amount of reductions due to shutdowns/
conversion to natural gas was calculated as the difference between 
historical actual emissions and projected emissions from the new gas 
boilers. NOX emission reductions were 175.29 tpy using 5-
year historical averages (2011-2015), and 111.00 tpy using most recent 
2015 actual data.
    As indicated above, 40.50 tpy of NOX reductions will 
need to be offset by equivalent or greater emission reductions from the 
MillerCoors facility. Therefore, Ohio EPA has determined that more than 
adequate emission reductions from the shutdowns/conversions of B001, 
B002, B010 and B011 at the MillerCoors facility are available to offset 
the removal of the low RVP program in Cincinnati.
    In the Dayton area, the remaining emission reductions to be 
replaced will be substituted with emission reductions at the Wright-
Patterson Air Force Base (Facility ID 0829700441) facility resulting 
from shutdowns and conversions from coal to natural gas due to 
compliance with Boiler MACT regulations. The relevant emission units 
are B606, B607, and B608. Coal boiler B606 was permanently shut down on 
June 7, 2016. Coal boilers B607 and B608 will be converted to natural 
gas by January 31, 2017 due to Boiler MACT. No changes are anticipated 
for an existing natural gas boiler, B609, which is included in Ohio 
EPA's analysis only because it is part of the emissions unit group and 
has combined emission limitations with the converted units (B607 and 
B608). Federally-enforceable permits prior to the shutdown/conversions 
include NOX emission limits of 33.20 tpy from B609, and 
350.32 tpy NOX from each B606, B607 and B608 with total 
combined NOX emissions not to exceed 788 tons, as a rolling, 
12-month summation from the coal-fired boilers identified as emission 
units B309, B310, B311, B606, B607, and B608 combined (Note: B309, B310 
and B311 underwent similar shutdown/conversions in 2015 with B311 
shutdown and B309 and B310 converted to natural gas). Federally-
enforceable permits following the shutdown/conversions include 
NOX emission limits of 120 tpy combined for B607, B608 and 
B609.
    The amount of reductions due to shutdown/conversion to natural gas 
was calculated as the difference between historical actual emissions 
and projected emissions from the converted coal boilers. NOX 
emission reductions were 64.97 tpy using 5-year historical averages 
(2011-2015), and 46.27 tpy using most recent 2015 actual data.
    As indicated above, 21.72 tpy of NOX reductions remain 
to be offset by equivalent or greater emissions reductions from the 
Wright-Patterson Air Force Base facility. Therefore, Ohio EPA has 
determined that more than adequate emission reductions from the

[[Page 10730]]

shutdown/conversions of B606, B607 and B608 at Wright-Patterson Air 
Force Base are available to offset the removal of the low RVP program 
in Dayton.
    These substitute emissions from both MillerCoors and Wright-
Patterson Air Force Base facilities are from permanent and enforceable 
shutdowns and conversions to natural gas. It should be noted that a 
facility which has notified Ohio EPA of a permanent shut down cannot 
resume operations without being considered a new facility and being 
subject to the new source review (NSR) requirements. Further, these 
conversions to natural gas were undertaken as the facility's chosen 
option to comply with Boiler MACT regulations. Conversion back to coal 
would be impractical, if not impossible, as the facility would still be 
required to comply with Boiler MACT regulations. In addition, the units 
are no longer permitted to burn coal and should the facility desire to 
burn coal again, the units would have to undergo NSR and these retired 
credits would not be available to the facility (or any other facility) 
for netting or offset purposes in the future.
    The Boiler MACT regulations established emission standards for 
control of mercury, hydrogen chloride, particulate matter (as a 
surrogate for non-mercury metals), and carbon monoxide (as a surrogate 
for organic hazardous emissions) from coal-fired, biomass-fired, and 
liquid-fired major source boilers based on the maximum achievable 
control technology. The boiler MACT standards will also result in 
NOX reductions as a co-benefit of the controls installed to 
meet the standards. These facilities' operating permits include 
NOX limits which reflect those co-benefits, and as such the 
NOX reductions are surplus to what would otherwise be 
required.
    These reductions are also surplus in that they were not previously 
relied on for credit toward attainment or maintenance purposes. Ohio 
EPA will ensure these reductions are permanently retired and cannot be 
relied on for future CAA requirements. Ohio EPA maintains a database of 
all reductions used for the purpose of CAA 110(l) demonstrations to 
ensure they cannot be used again. These reductions will be entered into 
and tracked within this database.
    As demonstrated above, Ohio EPA has calculated that more than 
adequate surplus emission reductions are available to offset the 
cessation of the low RVP fuel requirements in the Cincinnati and Dayton 
areas. Based on Ohio EPA's calculations, the emissions increase in the 
Cincinnati area due to cessation of the low RVP program is 16.33 tpy 
NOX and 15.83 tpy VOC (equivalent to 40.50 tpy 
NOX after VOC to NOX substitution). This amount 
is more than offset by the 111.0 tpy NOX potentially 
available from the MillerCoors facility. Likewise, the emissions 
increase in the Dayton area due to cessation of the low RVP program is 
13.93 tpy NOX and 16.01 tpy VOC. This amount is more than 
offset by the 3.51 tpy of VOC from the Miami Valley Publishing Company 
facility, 4.86 tpy of VOC from the National Oilwell Varco facility, and 
46.27 tpy NOX (depending on the calculation method) 
potentially available from the Wright-Patterson Air Force Base 
facility. (See Table 2)
    Ohio EPA is not permanently retiring all of the available emission 
reductions but only those to offset removal of the 7.8 psi RVP fuel 
requirements as outlined in this action. Upon approval of this SIP 
revision, 3.51 tpy of VOC from the Miami Valley Publishing Company 
facility, 4.86 tpy of VOC from the National Oilwell Varco facility, 
40.50 tpy of NOX from the MillerCoors LLC facility and 21.72 
tpy of NOX from the Wright-Patterson Air Force Base facility 
will be permanently retired. Any use of additional reductions in excess 
of those being retired under this action that may be used in the future 
will be evaluated for the surplus criteria at the time of use, which 
will include discounting what is retired under this action.

  Table 2--Summary of Available Offsets and NOX Emissions To Be Retired
------------------------------------------------------------------------
                                            Cincinnati      Dayton area
                Emissions                   area (tpy)         (tpy)
------------------------------------------------------------------------
NOX to be replaced from removal of 7.8             16.33           13.93
 low RVP program........................
VOCs to be replaced from removal of 7.8            15.83           16.01
 low RVP program........................
VOCs replaced directly with facility                0.00            8.37
 shutdowns..............................
Total NOX emissions to be replaced                 40.50           21.72
 (after conversion of remaining VOC to
 NOX)...................................
NOX offsets available from shutdowns/             111.00           46.27
 conversion to natural gas..............
Excess NOX credits (available offsets              70.50           24.55
 minus emissions to be replaced)........
VOC emissions to be retired.............            0.00            8.37
NOX emissions to be retired.............           40.50           21.72
------------------------------------------------------------------------

    Based on an evaluation of Ohio EPA's 110(l) demonstration, EPA 
believes that the removal of the 7.8 psi low RVP fuel program 
requirements in the Cincinnati and Dayton areas do not interfere with 
Ohio's ability to demonstrate compliance with the 8-hour ozone NAAQS in 
both areas. This is based on the use of permanent, enforceable, 
contemporaneous, surplus emissions reductions achieved from facilities 
in the Cincinnati and Dayton areas that have permanently shut down or 
which have or will convert from coal to natural gas as previously 
discussed.
    EPA also examined whether the removal of 7.8 psi low RVP fuel 
program requirements in both areas will interfere with attainment of 
other air quality standards. All the counties in the Dayton area are 
designated attainment for all standards, including sulfur dioxide and 
nitrogen dioxide. Cincinnati is designated attainment for all standards 
other than ozone, sulfur dioxide and fine particulate matter 
(PM2.5). Although NOX and VOCs also contribute to 
the formation of particulate matter, the extent of the contribution 
varies significantly by location or region within the U.S.\2\

[[Page 10731]]

However, as with ozone, any NOX and VOC emission increases 
resulting from the removal of the low RVP fuel requirements are being 
offset through the use of equivalent emission reductions as discussed 
above. Based on Ohio EPA's 110(l) analysis, EPA has no reason to 
believe that the removal of the low RVP fuel requirements in Cincinnati 
and Dayton will cause the areas to become nonattainment for any of 
these pollutants. In addition, EPA believes that removing the 7.8 psi 
low RVP program requirements in Ohio will not interfere with the areas' 
ability to meet any other CAA requirement.
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    \2\ While VOC is one of the precursors for PM2.5 
formation, a study (Journal of Environmental Engineering--Qualifying 
the sources of ozone, fine particulate matter, and regional haze in 
the Southeastern United States, June 24, 2009, available at: https://www.journals.elsevier.com/journal-ofenvironmental-management) 
indicates that in portions of the Midwest (including portions of 
Ohio where low RVP fuel requirements have been implemented), 
emissions of direct PM2.5 and the precursor sulfur 
dioxide (S02) are more significant to ambient 
PM2.5 concentrations than NOX and VOC. 
Specifically, PM2.5 sensitivities to anthropogenic VOC 
emissions are near zero for the entire region, including the 
Cincinnati region. This study also indicated that the impact of 
SO2 emissions, especially from electric generating units, 
was most significant in the Cincinnati area due to SO2 
emissions in the entire mid-west region (Wisconsin, Illinois, 
Indiana, Michigan and Ohio). In fact, emissions from the mid-west 
had the largest effect on PM2.5 sensitivities in the 
Cincinnati region. For this reason, a similar impact is expected in 
the Dayton area. The technical analysis provided by Ohio EPA has met 
EPA's guidance and demonstrates anthropogenic VOCs are insignificant 
to the formation of PM2.5 in these areas.
---------------------------------------------------------------------------

    Based on the above discussion and the state's section 110(l) 
demonstration, EPA believes that removal of the 7.8 psi low RVP fuel 
requirements would not interfere with attainment or maintenance of any 
of the NAAQS in the Cincinnati and Dayton areas and would not interfere 
with any other applicable requirement of the CAA, and thus, are 
approvable under CAA section 110(l).

IV. What action is EPA proposing to take?

    EPA is proposing to approve the revision to the Ohio ozone SIP 
submitted by the Ohio EPA on December 19, 2016, removing the 7.8 psi 
RVP fuel requirements for gasoline distributed in the Cincinnati and 
Dayton areas which include Montgomery, Miami, Greene, Clark, Hamilton, 
Butler, Warren, and Clermont counties. We find that the revision meets 
all applicable requirements and it would not interfere with reasonable 
further progress or attainment of any of the NAAQS.

V. Impacts on the Boutique Fuels List

    Section 1541(b) of the Energy Policy Act of 2005 required EPA in 
consultation with the U.S. Department of Energy to determine the number 
of fuels programs approved into all SIPs as of September 1, 2004 and to 
publish a list of such fuels. On December 28, 2008 EPA published the 
list of boutique fuels. (See 71 FR 78192.) EPA maintains the current 
list of boutique fuels on its Web site at: https://www.epa.gov/gasoline-standards/state-fuels. The final list of boutique fuels was 
based on a fuel type approach. CAA section 211(c)(4)(C)(v)(III) 
requires that EPA remove a fuel from the published list if it is either 
identical to a federal fuel or is removed from the SIP in which it is 
approved. Under the adopted fuel type approach, EPA interpreted this 
requirement to mean that a fuel would have to be removed from all SIPs 
in which it was approved in order for it to be removed from the list. 
(See 71 FR 78195.)

A. Removal of Gasoline Volatility Requirements in Cincinnati and Dayton

    The 7.8 psi RVP fuel program, which is approved into Ohio's SIP, is 
a fuel type that is included in EPA's boutique fuel list, 71 FR 78198-
99; (https://www.epa.gov/gasoline-standards/state-fuels) and the 
specific counties in the Cincinnati and Dayton areas where the low RVP 
gasoline is required are identified on EPA's Gasoline Reid Vapor 
Pressure Web page (https://www.epa.gov/gasoline-standards/gasoline-reid-vapor-pressure). If the proposed removal of Ohio's gasoline 
volatility requirements from the state's SIP is approved, EPA will 
update the State Fuels and Gasoline Reid Vapor Pressure Web pages on 
the effective date of the removal. While the entry for Ohio will be 
deleted from the list of boutique fuels, this deletion will not result 
in an opening on the boutique fuels list because the 7.8 psi RVP fuel 
type remains in other state SIPs.

B. Removal of Gasoline Volatility Standards Applicable in the Illinois 
Portion the St. Louis, MO-IL Ozone Area

    On October 6, 2014 EPA published a direct final rule to remove 
Illinois' 7.2 psi low RVP regulation from the state's SIP for its 
portion of the St. Louis, MO-IL ozone area. (See 79 FR 60065.) The 
removal became effective on December 5, 2014.
    The 7.2 psi RVP fuel type was included in the published list of 
fuels. (See 71 FR 78199). Illinois was the only state with such a fuel 
type in its approved SIP. When EPA removed the approved 7.2 psi RVP 
fuel regulation from the Illinois SIP EPA was also obligated to remove 
this fuel type from the list of boutique fuels because this fuel type 
is no longer in any approved SIP.\3\ Removal of this fuel type from the 
boutique fuels list has created room on the boutique fuels list. This 
may allow for approval of a new fuel type into a SIP and for it to be 
added to the list. However, the approval of a new fuel type into a SIP 
would be subject to certain restrictions as described in the December 
28, 2006 Federal Register notice that established the list of boutique 
fuels. (See 71 FR 78193)
---------------------------------------------------------------------------

    \3\ EPA has previously updated its State Fuels and Gasoline Reid 
Vapor Pressure Web pages to reflect the removal of the 7.2 psi RVP 
requirement from the Illinois SIP.
---------------------------------------------------------------------------

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal

[[Page 10732]]

governments or preempt tribal law as specified by Executive Order 13175 
(65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen oxides, Ozone, 
Volatile organic compounds.

    Dated: January 31, 2017.
Robert Kaplan,
Acting Regional Administrator, Region 5.
[FR Doc. 2017-03082 Filed 2-14-17; 8:45 am]
 BILLING CODE 6560-50-P