Regulation of Fuels and Fuel Additives: Extension of the Reformulated Gasoline Program to Illinois Portion of the St. Louis, Illinois-Missouri Ozone Nonattainment Area, 20237-20242 [E7-7777]
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Federal Register / Vol. 72, No. 78 / Tuesday April 24, 2007 / Rules and Regulations
20237
TABLE 1 TO SUBPART IIII OF PART 63—OPERATING LIMITS FOR CAPTURE SYSTEMS AND ADD-ON CONTROL DEVICES
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For the following device
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You must meet the following operating limit * * *
And you must demonstrate continuous compliance with
the operating limit by
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7. Emission capture system
that is not a PTE.
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a. The average gas volumetric flow rate or duct static
pressure in each duct between a capture device and
add-on control device inlet in any 3-hour period must
not fall below the average volumetric flow rate or
duct static pressure limit established for that capture
device according to § 63.3167(f). This applies only to
capture devices that are not part of a PTE that meets
the criteria of § 63.3165(a) and that are not capturing
emissions from a downdraft spray booth or from a
flashoff area or bake oven associated with a
downdraft spray booth.
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i. Collecting the gas volumetric flow rate or duct static
pressure for each capture device according to
§ 63.3168(g); ii. Reducing the data to 3-hour block
averages; and iii. Maintaining the 3-hour average gas
volumetric flow rate or duct static pressure for each
capture device at or above the gas volumetric flow
rate or duct static pressure limit.
Subpart PPPP—[Amended]
12. Section 63.4481 is amended by
revising paragraph (c) introductory text
and adding paragraph (c)(17) to read as
follows:
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§ 63.4481
Am I subject to this subpart?
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(c) This subpart does not apply to
surface coating or a coating operation
that meets any of the criteria of
paragraphs (c)(1) through (17) of this
section.
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(17) Screen printing.
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[FR Doc. E7–7760 Filed 4–23–07; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2006–0841; FRL–8304–1]
RIN 2060–A034
Regulation of Fuels and Fuel
Additives: Extension of the
Reformulated Gasoline Program to
Illinois Portion of the St. Louis, IllinoisMissouri Ozone Nonattainment Area
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
Under section 211(k)(6) of the
Clean Air Act, the Administrator of EPA
shall require the sale of reformulated
gasoline (RFG) in an ozone
nonattainment area classified as
marginal, moderate, serious or severe
upon the application of the Governor of
the state in which the nonattainment
area is located. This final action extends
the Act’s prohibition against the sale of
conventional gasoline (i.e., gasoline that
is not RFG) to the Illinois portion of the
St. Louis, Illinois-Missouri moderate
ozone nonattainment area. The Agency
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SUMMARY:
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will implement this prohibition for
refiners and all other persons in the fuel
distribution system other than retailers
and wholesale purchaser-consumers on
June 1, 2007. For retailers and wholesale
purchaser-consumers, EPA’s final action
implements the prohibition on July 1,
2007. As of the compliance date for
retailers and wholesale purchaserconsumers, this area will be treated as
a covered area for all purposes of the
Federal RFG program.
DATES: This final rule is effective April
20, 2007.
ADDRESSES: EPA has established a
docket for this action under Docket ID
No. EPA–HQ–OAR–2006–0841. All
documents in the docket are listed on
the https://www.regulations.gov Web
site. Although listed in the index, some
information is not publicly available,
e.g., CBI or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available either electronically through
https://www.regulations.gov or in hard
copy at the Air Docket, EPA/DC, EPA
West, Room 3334, 1301 Constitution
Ave., NW., Washington, DC. The Public
Reading Room is open from 8:30 a.m. to
4:30 p.m., Monday through Friday,
excluding legal holidays. The telephone
number for the Public Reading Room is
(202) 566–1744, and the telephone
number for the Air Docket is (202) 566–
1742.
FOR FURTHER INFORMATION CONTACT: Kurt
Gustafson, Transportation and Regional
Programs Division (Mail Code 6406J),
Environmental Protection Agency, 1200
Pennsylvania Ave, NW., Washington,
DC 20460; telephone number: 202–343–
9219; fax number: 202–343–2800; e-mail
address: gustafson.kurt@epa.gov.
SUPPLEMENTARY INFORMATION: Under
section 211(k)(6) of the Clean Air Act,
as amended (Act), the Administrator of
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EPA must require the sale of
reformulated gasoline in an ozone
nonattainment area classified as
Marginal, Moderate, Serious, or Severe
upon the application of the governor of
the state in which the nonattainment
area is located. This final action extends
the prohibition set forth in section
211(k)(5) against the sale of
conventional (i.e., non-reformulated)
gasoline to the Illinois portion of the St.
Louis, Illinois-Missouri moderate ozone
nonattainment area. For all persons
other than retailers and wholesale
purchaser-consumers (i.e., refiners,
importers,and distributors), this rule
establishes the implementation date of
the prohibition in Section 211(k)(5) as
June 1, 2007. For retailers and wholesale
purchaser-consumers, this rule
establishes the implementation date of
the prohibition in section 211(k)(5) on
July 1, 2007. As of the implementation
date for retailers and wholesale
purchaser-consumers, the Illinois
portion of the St. Louis, IllinoisMissouri ozone nonattainment area will
be a covered area for all purposes in the
Federal RFG program.
The final preamble and regulatory
language are also available
electronically from the Federal Register
Web site or via the docket at the
https://www.regulations.gov site listed
above.
General Information
Does This Action Apply to Me?
This action may affect you if you
produce, distribute, or sell gasoline for
use in the Illinois portion of the St.
Louis, Illinois-Missouri ozone
nonattainment area.
The table below gives some examples
of entities that may have to comply with
the regulations. However, since these
are only examples, you should carefully
examine these and other existing
regulations in 40 CFR part 80. If you
have any questions, please contact the
person listed in the FOR FURTHER
INFORMATION CONTACT section above.
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Regulated entities: Entities potentially
regulated by this action are those which
produce, supply or distribute motor
NAICS
Codes a
Category
Industry ............................................
Industry ............................................
b
2911
5171
5172
4212
4213
Examples of potentially regulated entities
Petroleum Refiners.
Gasoline Marketers and Distributors.
Gasoline Carriers.
North American Industry Classification System (NAICS).
Standard Industrial Classification (SIC) system code.
This table is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
regulated by this action. This table lists
the types of entities that EPA is now
aware could potentially be regulated by
this action. Other types of entities not
listed in the table could also be
regulated. To determine whether your
business is regulated by this action, you
should carefully examine the list of
areas covered by the reformulated
gasoline program in § 80.70 of title 40 of
the Code of Federal Regulations. If you
have questions regarding the
applicability of this action to a
particular entity, consult the person
listed in the preceding FOR FURTHER
INFORMATION CONTACT section.
The remainder of this final
rulemaking is organized in the following
sections:
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SIC Codes b
324110
422710
422720
484220
484230
Industry ............................................
a
gasoline. Regulated categories and
entities include:
I. Background
A. Opt-In Provision/Process
B. EPA Procedures and Illinois Opt-In
Request
II. Final Action
III. Response to Comments
IV. Environmental Impact
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review
B. Executive Order 12898: Federal Actions
to Address Environmental Justice in
Minority Populations and Low-Income
Populations
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Unfunded Mandates Reform Act
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
H. Executive Order 13045: Protection of
Children From Environmental Health &
Safety Risks
I. Executive Order 13211: Actions That
Significantly Effect Energy Supply
J. National Technology Transfer
Advancement Act
K. Statutory Authority
L. Congressional Review Act
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Governor’s application in the Federal
Register.
I. Background
A. Opt-In Provision/Process
As part of the Clean Air Act
Amendments of 1990, Congress added a
new subsection (k) to section 211 of the
Act. Subsection (k) prohibits the sale of
conventional gasoline (i.e., gasoline that
EPA has not certified as reformulated)
in certain ozone nonattainment areas
beginning January 1, 1995. Section
211(k)(10)(D) defines the areas covered
by the reformulated gasoline (RFG)
program as the nine ozone
nonattainment areas having a 1980
population in excess of 250,000 and
having the highest ozone design values
during the period 1987 through 1989.1
In addition, under section 211(k)(10)(D),
any area reclassified as a severe ozone
nonattainment area under section 181(b)
is also included in the RFG program.
EPA first published final regulations for
the RFG program on February 16, 1994.
See 59 FR 7716.
Certain other ozone nonattainment
areas may be included in the program at
the request of the Governor of the State
in which the area is located. Section
211(k)(6)(A) provides that upon the
application of a Governor, EPA shall
apply the prohibition against selling
conventional gasoline in ‘‘any area in
the State classified under subpart 2 of
Part D of Title I as a marginal, moderate,
serious or severe’’ ozone nonattainment
area. Subparagraph 211(k)(6)(A) further
provides that EPA is to apply the
prohibition as of the date the
Administrator ‘‘deems appropriate, not
later than January 1, 1995, or 1 year after
such application is received, whichever
is later.’’ In some cases the effective date
may be extended for such an area as
provided in section 211(k)(6)(B) based
on a determination by EPA that there is
‘‘insufficient domestic capacity to
produce’’ RFG. EPA is to publish a
1 Applying these criteria, EPA has determined the
nine covered areas to be the metropolitan areas
including Los Angeles, Houston, New York City,
Baltimore, Chicago, San Diego, Philadelphia,
Hartford and Milwaukee.
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B. EPA Procedures and Illinois Opt-In
Request
EPA received an application July 10,
2006 from the Honorable Rod R.
Blagojevich, Governor of the State of
Illinois, for the Illinois portion of the St.
Louis, Illinois-Missouri ozone
nonattainment area to be included in
the reformulated gasoline program. The
State indicated that the RFG program
would provide the area with needed
reductions in ozone-forming emissions
and air toxics. The Governor requested
a January 1, 2007 implementation date.
EPA published the Governor’s letter in
the Federal Register, as required by
section 211(k)(6). On December 27, 2006
(71 FR 77690) EPA proposed to extend
the RFG program to the Illinois portion
of the St. Louis, Illinois-Missouri ozone
nonattainment area by setting two
implementation dates. EPA requested
comment on start dates and proposed an
effective date of May 1, 2007 for
refiners, importers, and distributors and
June 1, 2007 for retailers and wholesale
purchaser-consumers.
Today EPA is taking final action on
that NPRM and establishing effective
dates for opt in of the Illinois portion of
the St. Louis, Illinois-Missouri ozone
nonattainment area to the RFG program.
For all persons other than retailers and
wholesale purchaser-consumers (i.e.,
refiners, importers, and distributors),
this rule establishes the implementation
date of the prohibition in section
211(k)(5) as June 1, 2007. For retailers
and wholesale purchaser-consumers,
this rule establishes the implementation
date of the prohibition in Section
211(k)(5) as July 1, 2007. As of the
implementation date for retailers and
wholesale purchaser-consumers, the
Illinois portion of the St. Louis, IllinoisMissouri ozone nonattainment area will
be a covered area for all purposes in the
Federal RFG program.
After publication of the NPRM, EPA
received a request for a public hearing.
EPA published a notice in the Federal
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Register announcing that a public
hearing would be held on February 21,
2007, in Chicago, Illinois, and extending
the comment period until March 23,
2007 (30 days after the hearing). The
transcript of the public hearing has been
placed in the docket for this action.
II. Final Action
The Federal RFG program includes
seasonal requirements. Summertime
RFG must meet certain VOC control
requirements to reduce emissions of
VOCs, an ozone precursor. Under the
RFG program, there are two compliance
dates for VOC-controlled RFG. At the
refinery level, and all other points in the
distribution system other than the retail
level, compliance with RFG VOCcontrol requirements is required from
May 1 to September 15. At the retail
level (service stations and wholesale
purchaser-consumers), compliance is
required from June 1 to September 15.
See 40 CFR 80.78 (a)(1)(v). Pipeline
requirements and demands for RFG
from the supply industry drive
refineries to establish their own internal
compliance date earlier than May so
that they can then assure that terminals
are capable of meeting the RFG VOCcontrol requirements by May 1.
EPA regulations specify that the RFG
covered areas of certain states that are
in ‘‘VOC control Region 1’’, while those
of other states are in ‘‘VOC control
Region 2.’’ VOC requirements for the
RFG sold in these Regions differ
somewhat. EPA regulations also provide
that RFG in covered areas which are
partially in VOC control Region 1 and
partially in VOC control Region 2 are
included in VOC control Region 1,
except in the case of the PhiladelphiaWilmington-Trenton CMSA which shall
be included in VOC control Region 2
(see 40 CFR 80.71(c)). Since the St.
Louis, Illinois-Missouri ozone
nonattainment area is partially in VOC
control Region 2 and partially in VOC
control Region 1, the Illinois portion of
the St. Louis, Illinois-Missouri
nonattainment area opting into the
program under this action shall be
included in VOC control Region 1. This
means that RFG in the Illinois portion
of the St. Louis, Illinois-Missouri ozone
nonattainment area must comply with
the emission standards for VOC control
for Region 1 which are slightly more
stringent than those for Region 2 (see 40
CFR 80.41).
Based on our evaluation of the
appropriate lead time and start date(s)
and pursuant to the Governor’s letter
and the provisions of section 211(k)(6),
EPA is today adopting regulations that
apply the prohibitions of subsection
211(k)(5) to the Illinois portion of the St.
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Louis, Illinois-Missouri ozone
nonattainment area for all persons other
than retailers and wholesale purchaserconsumers as of June 1, 2007. This date
applies to the refinery level and all
other points in the distribution system
other than the retail level. For retailers
and wholesale purchaser-consumers,
EPA is adopting regulations that apply
the prohibitions of subsection 211(k)(5)
to the Illinois portion of the St. Louis,
Illinois-Missouri ozone nonattainment
area on July 1, 2007. As of the
implementation date for retailers and
wholesale purchaser-consumers, this
area will be treated as a covered area for
all purposes of the Federal RFG
program.
The application of the prohibition of
section 211(k)(5) to the Illinois portion
of the St. Louis, Illinois-Missouri ozone
nonattainment area could take effect no
later than July 10, 2007, under section
211(k)(6)(A), which stipulates that the
effective program date must be no ‘‘later
than January 1, 1995 or 1 year after [the
Governor’s] application is received,
whichever is later.’’ The Governor of
Illinois’s request was dated July 10,
2006.
EPA believes the implementation
dates adopted today achieve a
reasonable balance between requiring
the earliest possible start dates to
achieve air quality benefits for the
Illinois portion of the St. Louis, IllinoisMissouri ozone nonattainment area and
providing adequate lead time for
industry to prepare for program
implementation. These dates will
provide environmental benefits by
allowing the Illinois portion of the St.
Louis, Illinois-Missouri ozone
nonattainment area to achieve VOC
reduction benefits for most of the 2007
VOC control season. As in other fuel
rules, EPA believes it is appropriate to
apply new requirements to refiners and
distributors thirty days prior to the date
that they are applicable to retailers and
wholesale purchasers-consumers. This
allows the retailers and wholesale
purchasers-consumers time to empty
their tanks of the older product they
may have purchased immediately before
the implementation date for refiners and
distributors.
EPA has concluded, based on its
analysis of available information, that
the refining and distribution industry’s
capacity to supply Federal RFG to the
Illinois portion of the St. Louis, IllinoisMissouri ozone nonattainment area this
summer exceeds the estimated demand.
EPA has also concluded that the
implementation dates adopted today
provide adequate lead time to industry
to set up storage and sales agreements
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to ensure supply of RFG to the East St.
Louis ozone nonattainment area.
III. Response to Comments
Several parties including the State of
Illinois, the State of Missouri, BP, and
the Illinois Petroleum Council
submitted comments supporting the
proposed effective dates. Four parties,
an association representing the interests
of Independent gasoline marketers, and
three retail marketing companies,
submitted adverse comments on the
proposed rulemaking. The adverse
comments also addressed issues that
were outside the scope of the proposal
(e.g., whether or not RFG should even
be implemented). EPA is responding to
relevant portions of the adverse
comments in this section.
First, the commenters expressed
concern that gasoline shortages in the
St. Louis area could result from EPA’s
granting of the opt-in request, due to the
need to supply additional reformulated
gasoline to the Illinois portion of the St.
Louis, Illinois-Missouri nonattainment
area (the Missouri portion already uses
RFG). The commenters indicated that
difficulties already exist in obtaining
RFG for the Missouri portion of the St.
Louis ozone nonattainment area, and
that these difficulties would get worse
with additional demand for RFG if EPA
finalized its proposed opt-in for the
Illinois portion of the St. Louis
nonattainment area. Some of the
commenters surmised that supply in the
area benefits from two supply options:
supplies of RFG being available on the
Missouri side and low RVP fuel being
available on the Illinois side, both of
which can be supplied to East St. Louis.
Section 211(k)(6)(A) provides the
Administrator broad discretion to
establish an appropriate effective date
for opt-in areas. The effective date shall
be no later than one year after the
governor’s request to opt in is received,
which in this case would be July 10,
2007, unless EPA determines that there
is insufficient domestic capacity.
Factors EPA generally considers in
setting effective dates include, but are
not limited to, supply logistics, the
number of current and potential
suppliers for that market, whether such
suppliers have experience producing
RFG or the capability to produce RFG,
intent of suppliers to withdraw from the
market, availability of adequate gasoline
volumes, and the amount of lead time
needed by suppliers and the
distribution industry to set up storage
and sales agreements to ensure supply.
By evaluating these factors, EPA can
make a determination as to whether
industry’s capacity to supply RFG for an
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opt-in area meets or exceeds the
demand.
Under section 211(k)(6)(B) the
Administrator may determine, after
consultation with the Secretary of
Energy, that there is ‘‘insufficient
domestic capacity’’ to produce RFG.
Despite the comments received by
marketers and retailers, described
above, EPA is not making such a
determination in this case. EPA has
consulted with the Department of
Energy (DOE) and with refiners
supplying gasoline to the area of
concern, and has concluded that there is
adequate domestic capability to produce
RFG to meet the current demand
nationwide as well as the addition of
the Illinois portion of the St. Louis,
Illinois-Missouri nonattainment area in
the summer of 2007.
EPA notes that no comments were
received from refiners or bulk terminal
operators concerned about storage
capacity or supply. We note in the
docket that EPA has spoken with the
major suppliers to the area and none
have expressed supply concerns. To the
contrary, the Illinois Petroleum Council
submitted written comment in support
of the proposal. The elimination of the
need to supply an additional grade of
fuel (i.e. 7.2 RVP fuel now required in
East St. Louis) will not adversely impact
supply as it is our understanding from
consultation with these refiners that the
capacity which is currently used to
produce the 7.2 psi blend will be
converted to produce additional RFG
supplies for the Region.
The commenters also expressed
concern that the price differential
between reformulated gasoline sold in
the Illinois side of the St. Louis covered
area and that sold on the Missouri side
would impact marketers. They also
point to a vehicle owner’s ability to
refuel in either conventional gas areas or
the Missouri RFG area where they may
expect a lower price. EPA notes that, in
this action, it is simply setting an
effective date for the Illinois portion of
the St. Louis, Illinois-Missouri ozone
nonattainment area, and does not have
the discretion under Section 211(k)(6) to
deny the governor’s request to opt in.
Therefore, even if a price differential
would result in some drivers choosing
to refuel in the Missouri portion of the
nonattainment area, or a non-covered
area, versus the Illinois side, that result
would not provide a basis for EPA’s
denial of the governor’s request.
Moreover, EPA is setting the effective
date for the opt in close to one year from
receipt of the governor’s request.
Additional significant delay is not
permitted under the Clean Air Act
absent a finding of inadequate supply.
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As discussed above, EPA has
determined that there will not be any
RFG supply issues for the opt in area
covered by today’s rule. In addition,
postponing the effective date would
likely not affect, in the long-term, any
price differential that may exist, and
would result in the loss of important
and needed emissions reductions for the
summer of 2007.
IV. Environmental Impact
The Federal RFG program typically
results in reductions in ozone-forming
emissions and air toxics. Reductions in
ozone precursors are environmentally
significant because they lead to
reductions in ozone formation, with the
associated improvements in human
health and welfare. Exposure to groundlevel ozone (or smog) can cause
respiratory problems, chest pain, and
coughing and may worsen bronchitis,
emphysema, and asthma. Animal
studies suggest that long-term exposure
(months to years) to ozone can damage
lung tissue and may lead to chronic
respiratory illness. Reductions in
emissions of toxic air pollutants are
environmentally important because they
carry significant benefits for human
health and welfare primarily by
reducing the number of cancer cases
each year.
Illinois EPA analyzed the emissions
benefits which could be achieved by
switching from 7.2 RVP fuel to RFG.
Using the U.S. EPA’s MOBILE6a model,
Illinois projected that year 2010 motor
vehicle VOC emissions could be
reduced by 5.4 percent and carbon
monoxide by 2.2 percent. The use of
RFG in the Illinois portion of the St.
Louis, Illinois-Missouri nonattainment
area would also decrease benzene
emissions by 75 tons per year, which
equates to a 44 percent reduction from
motor vehicles. On a total toxic
emissions basis, the use of RFG would
reduce emissions of the five primary
motor vehicle related air toxics by 63
tons per year in 2010, a total percentage
reduction of 23.5 percent.
V. Statutory and Executive Order
Reviews
A. Executive Order 12866: Regulatory
Planning and Review
This action is not a ‘‘significant
regulatory action’’ under the terms of
Executive Order (EO)12866 (58 FR
51735, October 4, 1993) and is therefore
not subject to review under the EO. EPA
notes that the economic impacts of the
RFG program were assessed in EPA’s
Regulatory Impact Analysis for the 1994
RFG rules. See 59 FR 7810–7811
(February 16, 1994). In that analysis the
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production cost of RFG was estimated to
be 4 to 8 cents more per gallon than
conventional gasoline. Since
conventional gas regulations have
evolved since that time to be more like
RFG and since the State has a low RVP
requirement that also more closely
resembles RFG, EPA expects the costs of
RFG in the Illinois portion of the St.
Louis, Illinois-Missouri ozone
nonattainment area to be at the low end
or lower than this range. Nonetheless,
using the 4 to 8 cent per gallon estimate,
the cost of the program to the area
would be significantly lower than the
trigger for a significant regulatory
action.
B. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
Executive Order (EO) 12898 (59 FR
7629 (Feb. 16, 1994)) establishes Federal
executive policy on environmental
justice. Its main provision directs
Federal agencies, to the greatest extent
practicable and permitted by law, to
make environmental justice part of their
mission by identifying and addressing,
as appropriate, disproportionately high
and adverse human health or
environmental effects of their programs,
policies, and activities on minority
populations and low-income
populations in the United States.
EPA has determined that this final
rule will not have disproportionately
high and adverse human health or
environmental effects on minority or
low-income populations because it
increases the level of environmental
protection for all affected populations
without having any disproportionately
high and adverse human health or
environmental effects on any
population, including any minority or
low-income population.
C. Paperwork Reduction Act
This action does not impose any new
information collection burden. Refiners
are currently subject to the information
collection requirements for Federal
reformulated gasoline and conventional
gasoline. Today’s rule adds an
additional ozone nonattainment area as
a Federal RFG covered area; the rule
does not change the information
collection requirements already
associated with Federal RFG. However,
the Office of Management and Budget
(OMB) has previously approved the
information collection requirements
contained in the existing regulations
(see 59 FR 7716, February 16, 1994),
under the provisions of the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq.
and has assigned OMB control number
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number 2060–0277 (EPA ICR No.
1951.21). A copy of the OMB approved
Information Collection Request (ICR)
may be obtained from Susan Auby,
Collection Strategies Division; U.S.
Environmental Protection Agency
(2822T); 1200 Pennsylvania Ave., NW.,
Washington, DC 20460 or by calling
(202) 566–1672.
Burden means the total time, effort, or
financial resources expended by persons
to generate, maintain, retain, or disclose
or provide information to or for a
Federal agency. This includes the time
needed to review instructions; develop,
acquire, install, and utilize technology
and systems for the purposes of
collecting, validating, and verifying
information, processing and
maintaining information, and disclosing
and providing information; adjust the
existing ways to comply with any
previously applicable instructions and
requirements; train personnel to be able
to respond to a collection of
information; search data sources;
complete and review the collection of
information; and transmit or otherwise
disclose the information.
An agency may not conduct or
sponsor, and a person is not required to
respond to a collection of information
unless it displays a currently valid OMB
control number. The OMB control
numbers for EPA’s regulations in 40
CFR are listed in 40 CFR part 9.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
generally requires an agency to prepare
a regulatory flexibility analysis of any
rule subject to notice and comment
rulemaking requirements under the
Administrative Procedure Act or any
other statute unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Small entities
include small businesses, small
organizations, and small governmental
jurisdictions.
For purposes of assessing the impacts
of today’s rule on small entities, small
entity is defined as: (1) A small business
that has not more than 1,500 employees
(as defined by the Small Business
Administration’s (SBA) regulations at 13
CFR 121.201); (2) a small governmental
jurisdiction that is a government of a
city, county, town, school district or
special district with a population of less
than 50,000; and (3) a small
organization that is any not-for-profit
enterprise which is independently
owned and operated and is not
dominant in its field.
In promulgating the RFG and the
related anti-dumping regulations for
conventional gasoline, the Agency
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analyzed the impact of the regulations
on small businesses. The Agency
concluded that the regulations may
possibly have some economic effect on
a substantial number of small refiners,
but that the regulations may not
significantly affect other small entities,
such as gasoline blenders, terminal
operators, service stations and ethanol
blenders. See 59 FR 7810–7811
(February 16, 1994). As stated in the
preamble to the final RFG/anti-dumping
rule, exempting small refiners from the
RFG regulations would result in the
failure of meeting CAA standards. 59 FR
7810. However, since most small
refiners are located in the mountain
states or in California, which has its
own RFG program, the vast majority of
small refiners are unaffected by the
Federal RFG requirements (although all
refiners of conventional gasoline are
subject to the anti-dumping
requirements). Moreover, all businesses,
large and small, maintain the option to
produce conventional gasoline to be
sold in areas not obligated by the Act to
receive RFG or those areas which have
not chosen to opt into the RFG program.
A complete analysis of the effect of the
RFG/anti-dumping regulations on small
businesses is contained in the
Regulatory Flexibility Analysis which
was prepared for the RFG and antidumping rulemaking, and can be found
in the docket for that rulemaking. The
docket number is: EPA Air Docket A–
92–12.
Today’s action will affect only those
refiners, importers or blenders of
gasoline that choose to produce or
import RFG for sale in the Illinois
portion of the St. Louis, IllinoisMissouri ozone nonattainment area, and
gasoline distributors and retail stations
in those areas. As discussed above, EPA
determined that, because of their
location, the vast majority of small
refiners would be unaffected by the RFG
requirements. For the same reason, most
small refiners will be unaffected by
today’s action. Other small entities,
such as gasoline distributors and retail
stations located in the area that will
become a covered area as a result of
today’s action, will be subject to the
same requirements as those small
entities which are located in current
RFG covered areas. The Agency did not
find the RFG regulations to significantly
affect these entities. Based on this, EPA
certifies that this final rule will not have
a significant adverse impact on a
substantial number of small entities.
E. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA), Public
Law 104–4, establishes requirements for
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20241
Federal agencies to assess the effects of
their regulatory actions on State, local,
and tribal governments and the private
sector. Under section 202 of the UMRA,
EPA generally must prepare a written
statement, including a cost-benefit
analysis, for proposed and final rules
with ‘‘Federal mandates’’ that may
result in expenditures to State, local,
and tribal governments, in the aggregate,
or to the private sector, of $100 million
or more in any one year. Before
promulgating an EPA rule for which a
written statement is needed, section 205
of the UMRA generally requires EPA to
identify and consider a reasonable
number of regulatory alternatives and
adopt the least costly, most costeffective or least burdensome alternative
that achieves the objectives of the rule.
The provisions of section 205 do not
apply when they are inconsistent with
applicable law. Moreover, section 205
allows EPA to adopt an alternative other
than the least costly, most cost-effective
or least burdensome alternative if the
Administrator publishes with the final
rule an explanation why that alternative
was not adopted. Before EPA establishes
any regulatory requirements that may
significantly or uniquely affect small
governments, including tribal
governments, it must have developed
under section 203 of the UMRA a small
government agency plan. The plan must
provide for notifying potentially
affected small governments, enabling
officials of affected small governments
to have meaningful and timely input in
the development of EPA regulatory
proposals with significant Federal
intergovernmental mandates, and
informing, educating, and advising
small governments on compliance with
the regulatory requirements.
EPA has determined that this rule
does not contain a Federal mandate that
may result in expenditures of $100
million or more for State, local, and
tribal governments, in the aggregate, or
the private sector in any one year. Thus,
today’s rule is not subject to the
requirements of sections 202 and 205 of
the UMRA. Although EPA does not
believe that UMRA imposes
requirements for this rulemaking, EPA
notes that the environmental and
economic impacts of the RFG program
were assessed in EPA’s Regulatory
Impact Analysis for the 1994 RFG rules.
EPA has also determined that this rule
contains no regulatory requirements that
might significantly or uniquely affect
small governments. The rule would only
impose requirements on certain refiners
and other entities in the gasoline
distribution system, and not small
governments. The requirements of the
rule will be enforced by the Federal
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Federal Register / Vol. 72, No. 78 / Tuesday April 24, 2007 / Rules and Regulations
government at the national level. Thus,
a small government agency plan did not
need to be developed under section 203
of the Unfunded Mandates Reform Act.
F. Executive Order 13132: Federalism
Executive Order 13132, entitled
‘‘Federalism’’ (64 FR 43255, August 10,
1999), requires EPA to develop an
accountable process to ensure
‘‘meaningful and timely input by State
and local officials in the development of
regulatory policies that have federalism
implications.’’ ‘‘Policies that have
federalism implications’’ is defined in
the Executive Order to include
regulations that have ‘‘substantial direct
effects on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.’’
This rule does not have federalism
implications. It will not have substantial
direct effects on the States, on the
relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government, as specified in
Executive Order 13132. The rule would
only impose requirements on certain
refiners and other entities in the
gasoline distribution system, and not on
States. The requirements of the rule will
be enforced by the Federal government
at the national level. Thus, Executive
Order 13132 does not apply to this rule.
ycherry on PROD1PC64 with RULES
G. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
Executive Order 13175, entitled
‘‘Consultation and Coordination with
Indian Tribal Governments’’ (65 FR
67249, November 9, 2000), requires EPA
to develop an accountable process to
ensure ‘‘meaningful and timely input by
tribal officials in the development of
regulatory policies that have tribal
implications.’’ This direct final rule
does not have tribal implications, as
specified in Executive Order 13175.
Today’s direct final rule will affect only
those refiners, importers or blenders of
gasoline that choose to produce or
import RFG for sale in the East St. Louis
ozone nonattainment area, and gasoline
distributors and retail stations in those
areas. Thus, Executive Order 13175 does
not apply to this rule.
H. Executive Order 13045: Protection of
Children From Environmental Health &
Safety Risks
Executive Order 13045 ‘‘Protection of
Children from Environmental Health
Risks and Safety Risks’’ (62 FR 19885,
April 23, 1997) applies to any rule that:
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17:55 Apr 23, 2007
Jkt 211001
(1) Is determined to be ‘‘economically
significant’’ as defined under EO 12866,
and (2) concerns an environmental
health or safety risk that EPA has reason
to believe may have a disproportionate
effect on children. If the regulatory
action meets both criteria, the Agency
must evaluate the environmental health
or safety effects of the planned rule on
children, and explain why the planned
regulation is preferable to other
potentially effective and reasonably
feasible alternatives considered by the
Agency.
This final rule is not subject to the EO
because it is not economically
significant as defined in EO 12866, and
because the Agency does not have
reason to believe the environmental
health or safety risks addressed by this
action present a disproportionate risk to
children.
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. EPA will submit a
report containing this rule and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a ‘‘major rule’’ as
defined by 5 U.S.C. 804(2). This rule
will be effective April 20, 2007.
I. Executive Order 13211: Actions That
Significantly Effect Energy Supply
This rule is not subject to Executive
Order 13211, ‘‘Actions Concerning
Regulations That Significantly Affect
Energy Supply, Distribution, or Use’’ (66
FR 28355 (May 22, 2001)) because it is
not a significant regulatory action under
Executive Order 12866.
Environmental protection, Air
pollution control, Fuel additives,
Gasoline, Motor vehicle pollution.
J. National Technology Transfer
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (‘‘NTAA’’), Public Law 104–
113, 12(d) (15 U.S.C. 272 note), directs
EPA to use voluntary consensus
standards in our regulatory activities
unless it would be inconsistent with
applicable law or otherwise impractical.
Voluntary consensus standards are
technical standards (e.g., materials
specifications, test methods, sampling
procedures, and business practices)
developed or adopted by voluntary
consensus standards bodies. The
NTTAA directs EPA to provide
Congress, through OMB, explanations
when the Agency decides not to use
available and applicable voluntary
consensus standards. This final
rulemaking does not involve technical
standards. Therefore, EPA is not
considering the use of any voluntary
consensus standards.
K. Statutory Authority
The Statutory authority for the action
finalized today is granted to EPA by
sections 211(c) and (k) and 301 of the
Clean Air Act, as amended; 42 U.S.C.
7545(c) and (k) and 7601.
L. Congressional Review Act
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
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List of Subjects in 40 CFR Part 80
Dated: April 18, 2007.
Stephen L. Johnson,
Administrator.
I
40 CFR part 80 is amended as follows:
PART 80—[AMENDED]
1. The authority citation for part 80
continues to read as follows:
I
Authority: 42 U.S.C. 7414, 7545, 7542, and
7601(a).
2. Section 80.70 is amended by adding
paragraph (k)(2) to read as follows:
I
§ 80.70
Covered areas.
*
*
*
*
*
(k) * * *
(2) The Illinois portion of the St.
Louis, Illinois-Missouri ozone
nonattainment area is a covered area
beginning on July 1, 2007. The
prohibitions of section 211(k)(5) of the
Clean Air Act apply to all persons other
than retailers and wholesale purchaserconsumers in the Illinois portion of the
St. Louis, Illinois-Missouri ozone
nonattainment area beginning on June 1,
2007. The prohibitions of section
211(k)(5) of the Clean Air Act apply to
retailers and wholesale purchaserconsumers in the Illinois portion of the
St. Louis, Illinois-Missouri ozone
nonattainment area beginning July 1,
2007.
*
*
*
*
*
[FR Doc. E7–7777 Filed 4–23–07; 8:45 am]
BILLING CODE 6560–50–P
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]]>Agencies
[Federal Register Volume 72, Number 78 (Tuesday, April 24, 2007)]
[Rules and Regulations]
[Pages 20237-20242]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7777]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2006-0841; FRL-8304-1]
RIN 2060-A034
Regulation of Fuels and Fuel Additives: Extension of the
Reformulated Gasoline Program to Illinois Portion of the St. Louis,
Illinois-Missouri Ozone Nonattainment Area
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: Under section 211(k)(6) of the Clean Air Act, the
Administrator of EPA shall require the sale of reformulated gasoline
(RFG) in an ozone nonattainment area classified as marginal, moderate,
serious or severe upon the application of the Governor of the state in
which the nonattainment area is located. This final action extends the
Act's prohibition against the sale of conventional gasoline (i.e.,
gasoline that is not RFG) to the Illinois portion of the St. Louis,
Illinois-Missouri moderate ozone nonattainment area. The Agency will
implement this prohibition for refiners and all other persons in the
fuel distribution system other than retailers and wholesale purchaser-
consumers on June 1, 2007. For retailers and wholesale purchaser-
consumers, EPA's final action implements the prohibition on July 1,
2007. As of the compliance date for retailers and wholesale purchaser-
consumers, this area will be treated as a covered area for all purposes
of the Federal RFG program.
DATES: This final rule is effective April 20, 2007.
ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-HQ-OAR-2006-0841. All documents in the docket are listed on the
https://www.regulations.gov Web site. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically through https://
www.regulations.gov or in hard copy at the Air Docket, EPA/DC, EPA
West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Public
Reading Room is (202) 566-1744, and the telephone number for the Air
Docket is (202) 566-1742.
FOR FURTHER INFORMATION CONTACT: Kurt Gustafson, Transportation and
Regional Programs Division (Mail Code 6406J), Environmental Protection
Agency, 1200 Pennsylvania Ave, NW., Washington, DC 20460; telephone
number: 202-343-9219; fax number: 202-343-2800; e-mail address:
gustafson.kurt@epa.gov.
SUPPLEMENTARY INFORMATION: Under section 211(k)(6) of the Clean Air
Act, as amended (Act), the Administrator of EPA must require the sale
of reformulated gasoline in an ozone nonattainment area classified as
Marginal, Moderate, Serious, or Severe upon the application of the
governor of the state in which the nonattainment area is located. This
final action extends the prohibition set forth in section 211(k)(5)
against the sale of conventional (i.e., non-reformulated) gasoline to
the Illinois portion of the St. Louis, Illinois-Missouri moderate ozone
nonattainment area. For all persons other than retailers and wholesale
purchaser-consumers (i.e., refiners, importers,and distributors), this
rule establishes the implementation date of the prohibition in Section
211(k)(5) as June 1, 2007. For retailers and wholesale purchaser-
consumers, this rule establishes the implementation date of the
prohibition in section 211(k)(5) on July 1, 2007. As of the
implementation date for retailers and wholesale purchaser-consumers,
the Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area will be a covered area for all purposes in the
Federal RFG program.
The final preamble and regulatory language are also available
electronically from the Federal Register Web site or via the docket at
the https://www.regulations.gov site listed above.
General Information
Does This Action Apply to Me?
This action may affect you if you produce, distribute, or sell
gasoline for use in the Illinois portion of the St. Louis, Illinois-
Missouri ozone nonattainment area.
The table below gives some examples of entities that may have to
comply with the regulations. However, since these are only examples,
you should carefully examine these and other existing regulations in 40
CFR part 80. If you have any questions, please contact the person
listed in the FOR FURTHER INFORMATION CONTACT section above.
[[Page 20238]]
Regulated entities: Entities potentially regulated by this action
are those which produce, supply or distribute motor gasoline. Regulated
categories and entities include:
----------------------------------------------------------------------------------------------------------------
NAICS Codes Examples of potentially regulated
Category \a\ SIC Codes \b\ entities
----------------------------------------------------------------------------------------------------------------
Industry................................... 324110 2911 Petroleum Refiners.
Industry................................... 422710 5171 Gasoline Marketers and
Distributors.
422720 5172 ...................................
Industry................................... 484220 4212 Gasoline Carriers.
484230 4213 ...................................
----------------------------------------------------------------------------------------------------------------
\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) system code.
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that EPA is now aware
could potentially be regulated by this action. Other types of entities
not listed in the table could also be regulated. To determine whether
your business is regulated by this action, you should carefully examine
the list of areas covered by the reformulated gasoline program in Sec.
80.70 of title 40 of the Code of Federal Regulations. If you have
questions regarding the applicability of this action to a particular
entity, consult the person listed in the preceding FOR FURTHER
INFORMATION CONTACT section.
The remainder of this final rulemaking is organized in the
following sections:
I. Background
A. Opt-In Provision/Process
B. EPA Procedures and Illinois Opt-In Request
II. Final Action
III. Response to Comments
IV. Environmental Impact
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Executive Order 12898: Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Unfunded Mandates Reform Act
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
H. Executive Order 13045: Protection of Children From
Environmental Health & Safety Risks
I. Executive Order 13211: Actions That Significantly Effect
Energy Supply
J. National Technology Transfer Advancement Act
K. Statutory Authority
L. Congressional Review Act
I. Background
A. Opt-In Provision/Process
As part of the Clean Air Act Amendments of 1990, Congress added a
new subsection (k) to section 211 of the Act. Subsection (k) prohibits
the sale of conventional gasoline (i.e., gasoline that EPA has not
certified as reformulated) in certain ozone nonattainment areas
beginning January 1, 1995. Section 211(k)(10)(D) defines the areas
covered by the reformulated gasoline (RFG) program as the nine ozone
nonattainment areas having a 1980 population in excess of 250,000 and
having the highest ozone design values during the period 1987 through
1989.\1\ In addition, under section 211(k)(10)(D), any area
reclassified as a severe ozone nonattainment area under section 181(b)
is also included in the RFG program. EPA first published final
regulations for the RFG program on February 16, 1994. See 59 FR 7716.
---------------------------------------------------------------------------
\1\ Applying these criteria, EPA has determined the nine covered
areas to be the metropolitan areas including Los Angeles, Houston,
New York City, Baltimore, Chicago, San Diego, Philadelphia, Hartford
and Milwaukee.
---------------------------------------------------------------------------
Certain other ozone nonattainment areas may be included in the
program at the request of the Governor of the State in which the area
is located. Section 211(k)(6)(A) provides that upon the application of
a Governor, EPA shall apply the prohibition against selling
conventional gasoline in ``any area in the State classified under
subpart 2 of Part D of Title I as a marginal, moderate, serious or
severe'' ozone nonattainment area. Subparagraph 211(k)(6)(A) further
provides that EPA is to apply the prohibition as of the date the
Administrator ``deems appropriate, not later than January 1, 1995, or 1
year after such application is received, whichever is later.'' In some
cases the effective date may be extended for such an area as provided
in section 211(k)(6)(B) based on a determination by EPA that there is
``insufficient domestic capacity to produce'' RFG. EPA is to publish a
Governor's application in the Federal Register.
B. EPA Procedures and Illinois Opt-In Request
EPA received an application July 10, 2006 from the Honorable Rod R.
Blagojevich, Governor of the State of Illinois, for the Illinois
portion of the St. Louis, Illinois-Missouri ozone nonattainment area to
be included in the reformulated gasoline program. The State indicated
that the RFG program would provide the area with needed reductions in
ozone-forming emissions and air toxics. The Governor requested a
January 1, 2007 implementation date. EPA published the Governor's
letter in the Federal Register, as required by section 211(k)(6). On
December 27, 2006 (71 FR 77690) EPA proposed to extend the RFG program
to the Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area by setting two implementation dates. EPA requested
comment on start dates and proposed an effective date of May 1, 2007
for refiners, importers, and distributors and June 1, 2007 for
retailers and wholesale purchaser-consumers.
Today EPA is taking final action on that NPRM and establishing
effective dates for opt in of the Illinois portion of the St. Louis,
Illinois-Missouri ozone nonattainment area to the RFG program. For all
persons other than retailers and wholesale purchaser-consumers (i.e.,
refiners, importers, and distributors), this rule establishes the
implementation date of the prohibition in section 211(k)(5) as June 1,
2007. For retailers and wholesale purchaser-consumers, this rule
establishes the implementation date of the prohibition in Section
211(k)(5) as July 1, 2007. As of the implementation date for retailers
and wholesale purchaser-consumers, the Illinois portion of the St.
Louis, Illinois-Missouri ozone nonattainment area will be a covered
area for all purposes in the Federal RFG program.
After publication of the NPRM, EPA received a request for a public
hearing. EPA published a notice in the Federal
[[Page 20239]]
Register announcing that a public hearing would be held on February 21,
2007, in Chicago, Illinois, and extending the comment period until
March 23, 2007 (30 days after the hearing). The transcript of the
public hearing has been placed in the docket for this action.
II. Final Action
The Federal RFG program includes seasonal requirements. Summertime
RFG must meet certain VOC control requirements to reduce emissions of
VOCs, an ozone precursor. Under the RFG program, there are two
compliance dates for VOC-controlled RFG. At the refinery level, and all
other points in the distribution system other than the retail level,
compliance with RFG VOC-control requirements is required from May 1 to
September 15. At the retail level (service stations and wholesale
purchaser-consumers), compliance is required from June 1 to September
15. See 40 CFR 80.78 (a)(1)(v). Pipeline requirements and demands for
RFG from the supply industry drive refineries to establish their own
internal compliance date earlier than May so that they can then assure
that terminals are capable of meeting the RFG VOC-control requirements
by May 1.
EPA regulations specify that the RFG covered areas of certain
states that are in ``VOC control Region 1'', while those of other
states are in ``VOC control Region 2.'' VOC requirements for the RFG
sold in these Regions differ somewhat. EPA regulations also provide
that RFG in covered areas which are partially in VOC control Region 1
and partially in VOC control Region 2 are included in VOC control
Region 1, except in the case of the Philadelphia-Wilmington-Trenton
CMSA which shall be included in VOC control Region 2 (see 40 CFR
80.71(c)). Since the St. Louis, Illinois-Missouri ozone nonattainment
area is partially in VOC control Region 2 and partially in VOC control
Region 1, the Illinois portion of the St. Louis, Illinois-Missouri
nonattainment area opting into the program under this action shall be
included in VOC control Region 1. This means that RFG in the Illinois
portion of the St. Louis, Illinois-Missouri ozone nonattainment area
must comply with the emission standards for VOC control for Region 1
which are slightly more stringent than those for Region 2 (see 40 CFR
80.41).
Based on our evaluation of the appropriate lead time and start
date(s) and pursuant to the Governor's letter and the provisions of
section 211(k)(6), EPA is today adopting regulations that apply the
prohibitions of subsection 211(k)(5) to the Illinois portion of the St.
Louis, Illinois-Missouri ozone nonattainment area for all persons other
than retailers and wholesale purchaser-consumers as of June 1, 2007.
This date applies to the refinery level and all other points in the
distribution system other than the retail level. For retailers and
wholesale purchaser-consumers, EPA is adopting regulations that apply
the prohibitions of subsection 211(k)(5) to the Illinois portion of the
St. Louis, Illinois-Missouri ozone nonattainment area on July 1, 2007.
As of the implementation date for retailers and wholesale purchaser-
consumers, this area will be treated as a covered area for all purposes
of the Federal RFG program.
The application of the prohibition of section 211(k)(5) to the
Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area could take effect no later than July 10, 2007, under
section 211(k)(6)(A), which stipulates that the effective program date
must be no ``later than January 1, 1995 or 1 year after [the
Governor's] application is received, whichever is later.'' The Governor
of Illinois's request was dated July 10, 2006.
EPA believes the implementation dates adopted today achieve a
reasonable balance between requiring the earliest possible start dates
to achieve air quality benefits for the Illinois portion of the St.
Louis, Illinois-Missouri ozone nonattainment area and providing
adequate lead time for industry to prepare for program implementation.
These dates will provide environmental benefits by allowing the
Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area to achieve VOC reduction benefits for most of the
2007 VOC control season. As in other fuel rules, EPA believes it is
appropriate to apply new requirements to refiners and distributors
thirty days prior to the date that they are applicable to retailers and
wholesale purchasers-consumers. This allows the retailers and wholesale
purchasers-consumers time to empty their tanks of the older product
they may have purchased immediately before the implementation date for
refiners and distributors.
EPA has concluded, based on its analysis of available information,
that the refining and distribution industry's capacity to supply
Federal RFG to the Illinois portion of the St. Louis, Illinois-Missouri
ozone nonattainment area this summer exceeds the estimated demand. EPA
has also concluded that the implementation dates adopted today provide
adequate lead time to industry to set up storage and sales agreements
to ensure supply of RFG to the East St. Louis ozone nonattainment area.
III. Response to Comments
Several parties including the State of Illinois, the State of
Missouri, BP, and the Illinois Petroleum Council submitted comments
supporting the proposed effective dates. Four parties, an association
representing the interests of Independent gasoline marketers, and three
retail marketing companies, submitted adverse comments on the proposed
rulemaking. The adverse comments also addressed issues that were
outside the scope of the proposal (e.g., whether or not RFG should even
be implemented). EPA is responding to relevant portions of the adverse
comments in this section.
First, the commenters expressed concern that gasoline shortages in
the St. Louis area could result from EPA's granting of the opt-in
request, due to the need to supply additional reformulated gasoline to
the Illinois portion of the St. Louis, Illinois-Missouri nonattainment
area (the Missouri portion already uses RFG). The commenters indicated
that difficulties already exist in obtaining RFG for the Missouri
portion of the St. Louis ozone nonattainment area, and that these
difficulties would get worse with additional demand for RFG if EPA
finalized its proposed opt-in for the Illinois portion of the St. Louis
nonattainment area. Some of the commenters surmised that supply in the
area benefits from two supply options: supplies of RFG being available
on the Missouri side and low RVP fuel being available on the Illinois
side, both of which can be supplied to East St. Louis.
Section 211(k)(6)(A) provides the Administrator broad discretion to
establish an appropriate effective date for opt-in areas. The effective
date shall be no later than one year after the governor's request to
opt in is received, which in this case would be July 10, 2007, unless
EPA determines that there is insufficient domestic capacity. Factors
EPA generally considers in setting effective dates include, but are not
limited to, supply logistics, the number of current and potential
suppliers for that market, whether such suppliers have experience
producing RFG or the capability to produce RFG, intent of suppliers to
withdraw from the market, availability of adequate gasoline volumes,
and the amount of lead time needed by suppliers and the distribution
industry to set up storage and sales agreements to ensure supply. By
evaluating these factors, EPA can make a determination as to whether
industry's capacity to supply RFG for an
[[Page 20240]]
opt-in area meets or exceeds the demand.
Under section 211(k)(6)(B) the Administrator may determine, after
consultation with the Secretary of Energy, that there is ``insufficient
domestic capacity'' to produce RFG. Despite the comments received by
marketers and retailers, described above, EPA is not making such a
determination in this case. EPA has consulted with the Department of
Energy (DOE) and with refiners supplying gasoline to the area of
concern, and has concluded that there is adequate domestic capability
to produce RFG to meet the current demand nationwide as well as the
addition of the Illinois portion of the St. Louis, Illinois-Missouri
nonattainment area in the summer of 2007.
EPA notes that no comments were received from refiners or bulk
terminal operators concerned about storage capacity or supply. We note
in the docket that EPA has spoken with the major suppliers to the area
and none have expressed supply concerns. To the contrary, the Illinois
Petroleum Council submitted written comment in support of the proposal.
The elimination of the need to supply an additional grade of fuel (i.e.
7.2 RVP fuel now required in East St. Louis) will not adversely impact
supply as it is our understanding from consultation with these refiners
that the capacity which is currently used to produce the 7.2 psi blend
will be converted to produce additional RFG supplies for the Region.
The commenters also expressed concern that the price differential
between reformulated gasoline sold in the Illinois side of the St.
Louis covered area and that sold on the Missouri side would impact
marketers. They also point to a vehicle owner's ability to refuel in
either conventional gas areas or the Missouri RFG area where they may
expect a lower price. EPA notes that, in this action, it is simply
setting an effective date for the Illinois portion of the St. Louis,
Illinois-Missouri ozone nonattainment area, and does not have the
discretion under Section 211(k)(6) to deny the governor's request to
opt in. Therefore, even if a price differential would result in some
drivers choosing to refuel in the Missouri portion of the nonattainment
area, or a non-covered area, versus the Illinois side, that result
would not provide a basis for EPA's denial of the governor's request.
Moreover, EPA is setting the effective date for the opt in close to one
year from receipt of the governor's request. Additional significant
delay is not permitted under the Clean Air Act absent a finding of
inadequate supply. As discussed above, EPA has determined that there
will not be any RFG supply issues for the opt in area covered by
today's rule. In addition, postponing the effective date would likely
not affect, in the long-term, any price differential that may exist,
and would result in the loss of important and needed emissions
reductions for the summer of 2007.
IV. Environmental Impact
The Federal RFG program typically results in reductions in ozone-
forming emissions and air toxics. Reductions in ozone precursors are
environmentally significant because they lead to reductions in ozone
formation, with the associated improvements in human health and
welfare. Exposure to ground-level ozone (or smog) can cause respiratory
problems, chest pain, and coughing and may worsen bronchitis,
emphysema, and asthma. Animal studies suggest that long-term exposure
(months to years) to ozone can damage lung tissue and may lead to
chronic respiratory illness. Reductions in emissions of toxic air
pollutants are environmentally important because they carry significant
benefits for human health and welfare primarily by reducing the number
of cancer cases each year.
Illinois EPA analyzed the emissions benefits which could be
achieved by switching from 7.2 RVP fuel to RFG. Using the U.S. EPA's
MOBILE6a model, Illinois projected that year 2010 motor vehicle VOC
emissions could be reduced by 5.4 percent and carbon monoxide by 2.2
percent. The use of RFG in the Illinois portion of the St. Louis,
Illinois-Missouri nonattainment area would also decrease benzene
emissions by 75 tons per year, which equates to a 44 percent reduction
from motor vehicles. On a total toxic emissions basis, the use of RFG
would reduce emissions of the five primary motor vehicle related air
toxics by 63 tons per year in 2010, a total percentage reduction of
23.5 percent.
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
This action is not a ``significant regulatory action'' under the
terms of Executive Order (EO)12866 (58 FR 51735, October 4, 1993) and
is therefore not subject to review under the EO. EPA notes that the
economic impacts of the RFG program were assessed in EPA's Regulatory
Impact Analysis for the 1994 RFG rules. See 59 FR 7810-7811 (February
16, 1994). In that analysis the production cost of RFG was estimated to
be 4 to 8 cents more per gallon than conventional gasoline. Since
conventional gas regulations have evolved since that time to be more
like RFG and since the State has a low RVP requirement that also more
closely resembles RFG, EPA expects the costs of RFG in the Illinois
portion of the St. Louis, Illinois-Missouri ozone nonattainment area to
be at the low end or lower than this range. Nonetheless, using the 4 to
8 cent per gallon estimate, the cost of the program to the area would
be significantly lower than the trigger for a significant regulatory
action.
B. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
Federal executive policy on environmental justice. Its main provision
directs Federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
EPA has determined that this final rule will not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it increases the
level of environmental protection for all affected populations without
having any disproportionately high and adverse human health or
environmental effects on any population, including any minority or low-
income population.
C. Paperwork Reduction Act
This action does not impose any new information collection burden.
Refiners are currently subject to the information collection
requirements for Federal reformulated gasoline and conventional
gasoline. Today's rule adds an additional ozone nonattainment area as a
Federal RFG covered area; the rule does not change the information
collection requirements already associated with Federal RFG. However,
the Office of Management and Budget (OMB) has previously approved the
information collection requirements contained in the existing
regulations (see 59 FR 7716, February 16, 1994), under the provisions
of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and has assigned
OMB control number
[[Page 20241]]
number 2060-0277 (EPA ICR No. 1951.21). A copy of the OMB approved
Information Collection Request (ICR) may be obtained from Susan Auby,
Collection Strategies Division; U.S. Environmental Protection Agency
(2822T); 1200 Pennsylvania Ave., NW., Washington, DC 20460 or by
calling (202) 566-1672.
Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.
An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business that has not
more than 1,500 employees (as defined by the Small Business
Administration's (SBA) regulations at 13 CFR 121.201); (2) a small
governmental jurisdiction that is a government of a city, county, town,
school district or special district with a population of less than
50,000; and (3) a small organization that is any not-for-profit
enterprise which is independently owned and operated and is not
dominant in its field.
In promulgating the RFG and the related anti-dumping regulations
for conventional gasoline, the Agency analyzed the impact of the
regulations on small businesses. The Agency concluded that the
regulations may possibly have some economic effect on a substantial
number of small refiners, but that the regulations may not
significantly affect other small entities, such as gasoline blenders,
terminal operators, service stations and ethanol blenders. See 59 FR
7810-7811 (February 16, 1994). As stated in the preamble to the final
RFG/anti-dumping rule, exempting small refiners from the RFG
regulations would result in the failure of meeting CAA standards. 59 FR
7810. However, since most small refiners are located in the mountain
states or in California, which has its own RFG program, the vast
majority of small refiners are unaffected by the Federal RFG
requirements (although all refiners of conventional gasoline are
subject to the anti-dumping requirements). Moreover, all businesses,
large and small, maintain the option to produce conventional gasoline
to be sold in areas not obligated by the Act to receive RFG or those
areas which have not chosen to opt into the RFG program. A complete
analysis of the effect of the RFG/anti-dumping regulations on small
businesses is contained in the Regulatory Flexibility Analysis which
was prepared for the RFG and anti-dumping rulemaking, and can be found
in the docket for that rulemaking. The docket number is: EPA Air Docket
A-92-12.
Today's action will affect only those refiners, importers or
blenders of gasoline that choose to produce or import RFG for sale in
the Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area, and gasoline distributors and retail stations in
those areas. As discussed above, EPA determined that, because of their
location, the vast majority of small refiners would be unaffected by
the RFG requirements. For the same reason, most small refiners will be
unaffected by today's action. Other small entities, such as gasoline
distributors and retail stations located in the area that will become a
covered area as a result of today's action, will be subject to the same
requirements as those small entities which are located in current RFG
covered areas. The Agency did not find the RFG regulations to
significantly affect these entities. Based on this, EPA certifies that
this final rule will not have a significant adverse impact on a
substantial number of small entities.
E. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, and tribal governments, in
the aggregate, or to the private sector, of $100 million or more in any
one year. Before promulgating an EPA rule for which a written statement
is needed, section 205 of the UMRA generally requires EPA to identify
and consider a reasonable number of regulatory alternatives and adopt
the least costly, most cost-effective or least burdensome alternative
that achieves the objectives of the rule. The provisions of section 205
do not apply when they are inconsistent with applicable law. Moreover,
section 205 allows EPA to adopt an alternative other than the least
costly, most cost-effective or least burdensome alternative if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted. Before EPA establishes any regulatory
requirements that may significantly or uniquely affect small
governments, including tribal governments, it must have developed under
section 203 of the UMRA a small government agency plan. The plan must
provide for notifying potentially affected small governments, enabling
officials of affected small governments to have meaningful and timely
input in the development of EPA regulatory proposals with significant
Federal intergovernmental mandates, and informing, educating, and
advising small governments on compliance with the regulatory
requirements.
EPA has determined that this rule does not contain a Federal
mandate that may result in expenditures of $100 million or more for
State, local, and tribal governments, in the aggregate, or the private
sector in any one year. Thus, today's rule is not subject to the
requirements of sections 202 and 205 of the UMRA. Although EPA does not
believe that UMRA imposes requirements for this rulemaking, EPA notes
that the environmental and economic impacts of the RFG program were
assessed in EPA's Regulatory Impact Analysis for the 1994 RFG rules.
EPA has also determined that this rule contains no regulatory
requirements that might significantly or uniquely affect small
governments. The rule would only impose requirements on certain
refiners and other entities in the gasoline distribution system, and
not small governments. The requirements of the rule will be enforced by
the Federal
[[Page 20242]]
government at the national level. Thus, a small government agency plan
did not need to be developed under section 203 of the Unfunded Mandates
Reform Act.
F. Executive Order 13132: Federalism
Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.''
This rule does not have federalism implications. It will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132. The rule would only impose
requirements on certain refiners and other entities in the gasoline
distribution system, and not on States. The requirements of the rule
will be enforced by the Federal government at the national level. Thus,
Executive Order 13132 does not apply to this rule.
G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' This direct final rule does
not have tribal implications, as specified in Executive Order 13175.
Today's direct final rule will affect only those refiners, importers or
blenders of gasoline that choose to produce or import RFG for sale in
the East St. Louis ozone nonattainment area, and gasoline distributors
and retail stations in those areas. Thus, Executive Order 13175 does
not apply to this rule.
H. Executive Order 13045: Protection of Children From Environmental
Health & Safety Risks
Executive Order 13045 ``Protection of Children from Environmental
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies
to any rule that: (1) Is determined to be ``economically significant''
as defined under EO 12866, and (2) concerns an environmental health or
safety risk that EPA has reason to believe may have a disproportionate
effect on children. If the regulatory action meets both criteria, the
Agency must evaluate the environmental health or safety effects of the
planned rule on children, and explain why the planned regulation is
preferable to other potentially effective and reasonably feasible
alternatives considered by the Agency.
This final rule is not subject to the EO because it is not
economically significant as defined in EO 12866, and because the Agency
does not have reason to believe the environmental health or safety
risks addressed by this action present a disproportionate risk to
children.
I. Executive Order 13211: Actions That Significantly Effect Energy
Supply
This rule is not subject to Executive Order 13211, ``Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use'' (66 FR 28355 (May 22, 2001)) because it is not a
significant regulatory action under Executive Order 12866.
J. National Technology Transfer Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note),
directs EPA to use voluntary consensus standards in our regulatory
activities unless it would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) developed or adopted by voluntary
consensus standards bodies. The NTTAA directs EPA to provide Congress,
through OMB, explanations when the Agency decides not to use available
and applicable voluntary consensus standards. This final rulemaking
does not involve technical standards. Therefore, EPA is not considering
the use of any voluntary consensus standards.
K. Statutory Authority
The Statutory authority for the action finalized today is granted
to EPA by sections 211(c) and (k) and 301 of the Clean Air Act, as
amended; 42 U.S.C. 7545(c) and (k) and 7601.
L. Congressional Review Act
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2). This rule will be effective April 20, 2007.
List of Subjects in 40 CFR Part 80
Environmental protection, Air pollution control, Fuel additives,
Gasoline, Motor vehicle pollution.
Dated: April 18, 2007.
Stephen L. Johnson,
Administrator.
0
40 CFR part 80 is amended as follows:
PART 80--[AMENDED]
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7545, 7542, and 7601(a).
0
2. Section 80.70 is amended by adding paragraph (k)(2) to read as
follows:
Sec. 80.70 Covered areas.
* * * * *
(k) * * *
(2) The Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area is a covered area beginning on July 1, 2007. The
prohibitions of section 211(k)(5) of the Clean Air Act apply to all
persons other than retailers and wholesale purchaser-consumers in the
Illinois portion of the St. Louis, Illinois-Missouri ozone
nonattainment area beginning on June 1, 2007. The prohibitions of
section 211(k)(5) of the Clean Air Act apply to retailers and wholesale
purchaser-consumers in the Illinois portion of the St. Louis, Illinois-
Missouri ozone nonattainment area beginning July 1, 2007.
* * * * *
[FR Doc. E7-7777 Filed 4-23-07; 8:45 am]
BILLING CODE 6560-50-P
