[Federal Register Volume 59, Number 64 (Monday, April 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7981]


[[Page Unknown]]

[Federal Register: April 4, 1994]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[FRL-4857-9]

 

Approval of Tennessee's Petition To Relax the Federal Reid Vapor 
Pressure Volatility Standard From 7.8 psi to 9.0 psi

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this document EPA is approving as a direct final rule 
Tennessee's petition to relax the Reid Vapor Pressure Standard (RVP) 
applicable to gasoline introduced into commerce from June 1 to 
September 15 in the former Knox County ozone nonattainment area from 
7.8 pounds per square inches (psi) to 9.0 psi. Knox County, Tennessee 
has met the requirements for redesignation from nonattainment to 
attainment status contained in section 107(d)(3)(E) of the Clean Air 
Act. Tennessee's petition is based on evidence that the Knox County 
area does not need the 7.8 psi standard to maintain ozone attainment. 
EPA believes that further imposition of the 7.8 psi volatility standard 
would impose needless costs in light of Tennessee's attainment of the 
National Ambient Air Quality standard. This action is being taken 
without prior proposal because EPA believes that this final rulemaking 
is noncontroversial, for the reasons discussed above and due to the 
limited scope of this rulemaking.

DATES: This action will be effective on June 3, 1994 unless notice is 
received within 30 days that someone wishes to submit adverse or 
critical comments. If notice of intention to submit adverse comments is 
received within the 30 days, EPA will withdraw this final rule and re-
publish a notice of proposed rulemaking in the Federal Register. Please 
direct all correspondence to the following addresses.

ADDRESSES: Comments should be submitted (in duplicate if possible) to 
Docket A-94-07. The docket is located at the Air and Radiation Docket 
and Information Center (formerly known as the ``Air Docket'') (LE-131), 
U.S. Environmental Protection Agency, 401 M Street SW., Washington, DC 
20460, in room M-1500 Waterside Mall. EPA has placed materials relevant 
to this rulemaking in the docket. Documents be inspected from 8 a.m. to 
4 p.m. Monday through Friday. A reasonable fee may be charged for 
copying docket material.
    A copy of comments should also be sent to the EPA contact person at 
the following address: Anne-Marie Cooney, U.S. Environmental Protection 
Agency, Office of Air and Radiation, 401 M Street SW. (6406-J), 
Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Anne-Marie Cooney of the Regional/
State/Local Coordination Section at (202) 233-9013. See the ADDRESSES 
section for the mailing address.

SUPPLEMENTARY INFORMATION:

I. Introduction

    This notice describes EPA's final action to approve Tennessee's 
request to change the federal Reid Vapor Pressure (RVP) standard of 7.8 
psi to 9.0 psi in the former Knox County ozone nonattainment area from 
June 1 to September 15. The remainder of this notice is divided into 
five parts. Section II provides the background for this action. Section 
III provides the Agency's policy regarding relaxation of volatility 
standards in nonattainment areas redesignated as attainment. Section IV 
reviews the Tennessee request and supporting evidence. Section V 
reviews EPA's redesignation of Knox County as attainment. Finally, 
Section VI presents EPA's action and rationale.

II. Background

    On August 19, 1987, EPA proposed a two-phase national program to 
reduce summertime gasoline volatility.1 EPA found that gasoline 
had become increasingly volatile, which caused an increase in 
evaporative emissions from gasoline-powered sources. These emissions 
are volatile organic compounds (VOCs), a precursor of ozone. These 
gasoline-related emissions are currently a major contributor to the 
nation's serious ground level ozone problem, which harms human health 
and the public welfare. The Agency published a Notice of Final 
Rulemaking on March 22, 1989 that promulgated Phase I of the program to 
require VOC reductions by the beginning of the 1989 summer ozone 
season.2 The Phase II volatility standards were finalized on June 
11, 19903 and went into effect May 1, 1992.
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    \1\52 FR 31274 (August 16, 1987).
    \2\54 FR 11868 (March 22, 1989).
    \3\54 FR 23658 (June 11, 1990).
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    The final rule for the Phase I program established a federal 
volatility standard in Tennessee of 10.5 psi for the months of May and 
June, 9.5 for July and August, and 10.5 for September 1 through 
September 15. The Phase II rule required a further reduction in the 
volatility standard to 9.0 psi for May and 7.8 psi for June 1 through 
September 15 beginning in 1992. The Phase I and Phase II standards were 
applicable on a statewide basis.
    Congress established slightly different requirements for the fuel 
volatility program in the Clean Air Act Amendments of 1990. Section 
211(h)(1) of the Act, as amended, required that EPA 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 as defined by the Administrator. It further provides that EPA 
shall establish more stringent RVP standards in nonattainment areas if 
EPA finds such standards are ``necessary to achieve comparable 
evaporative emissions reductions, on a per vehicle basis, in such 
areas, taking into consideration the enforceability of such standards, 
the need of an area for emissions control, and economic factors.'' 
Section 211(h) prohibits the regulations from establishing a volatility 
standard more stringent than 9.0 psi in an attainment area, although it 
allows EPA to impose a lower standard in any former ozone nonattainment 
area which is redesignated as being in attainment.
    On May 29, 1991, EPA published a Notice of Proposed Rulemaking 
which modified the Phase II summer ozone volatility standards to 
reflect new section 211(h) of the Act.4 In this notice, EPA 
proposed that, beginning in 1992, the RVP standard be 9.0 psi in all 
attainment areas where this standard was not already in place. The 
effect of this proposal was to prohibit the sale of gasoline with a 
Reid Vapor Pressure above 9.0 psi during the summer ozone season in all 
areas designated attainment for ozone for 1992 and beyond. For areas 
that have been designated as nonattainment, EPA proposed that the 
original Phase II standards published on June 11, 1990 should not be 
changed. On December 12, 1991 EPA finalized these modifications.5
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    \4\56 FR 24242 (May 29, 1991).
    \5\56 FR 64704 (December 12, 1991).
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    On November 6, 1991, EPA issued its ozone nonattainment 
designations in the Federal Register pursuant to section 107(d)(1)(C) 
of the Act, as amended. In the November 6, 1991 notice, EPA designated 
Knox County as a ``marginal'' nonattainment area for ozone. Under the 
original Phase II rule, a statewide standard was established in 
Tennessee that required 7.8 psi gasoline to be provided from June 1 to 
September 15. In the December 12, 1991 final rule, EPA modified RVP 
standards for Tennessee to require that those areas designated in 
Tennessee as nonattainment in the November 6, 1991 notice be provided 
with 7.8 psi gasoline, and that the remainder of Tennessee be supplied 
with 9.0 psi gasoline.

III. EPA Policy Regarding Relaxation of Volatility Standards in 
Nonattainment Areas Redesignated as Attainment

    Under the amended Phase II regulations, any change in the 
volatility standard for an area must be accomplished through a separate 
rulemaking revising the applicable standard for that area, even for an 
area that was designated as nonattainment in the November 6, 1991 
notice but is subsequently redesignated as being in attainment.6 
Thus, for nonattainment areas where EPA mandated a phase II volatility 
standard of 7.8 psi RVP in the December 12, 1991 rulemaking, the 7.8 
psi standard will remain in effect, even after such an area is 
redesignated as being in attainment, until a separate rulemaking is 
completed that revises the RVP standard in that area from 7.8 psi to 
9.0 psi.7
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    \6\Relaxation of RVP standards associated with the redesignation 
process was discussed in the preamble to EPA's final rule modifying 
the Phase II volatility standards (56 FR 64706, December 12, 1991).
    \7\Similarly, when an area originally designated being in 
attainment is redesignated nonattainment, the volatility level of 
the gasoline will stay at 9.0 psi RVP unless and until EPA 
promulgates a rulemaking changing the RVP in that area (56 FR 64706 
December 12, 1991).
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    The Agency believes that relaxation of any RVP standard change is 
best accomplished in conjunction with the redesignation process. In 
order for an ozone nonattainment area to be redesignated as being in 
attainment for ozone, revised section 107(d)(3) of the Act requires the 
state to make a showing, pursuant to section 175A of the Act, that the 
area is capable of maintaining attainment for the ozone NAAQS for ten 
years. This maintenance plan may demonstrate that the area is capable 
of maintaining attainment for ten years without the more stringent 
volatility standard. However, the maintenance plan could also show that 
the more stringent volatility standard is or may be necessary for the 
area to maintain its attainment with the ozone NAAQS. Therefore, in the 
context of a request for redesignation, the Agency will not relax the 
volatility standard unless the maintenance plan demonstrates to the 
satisfaction of the Agency that the area will maintain attainment for 
ten years without the need for the more stringent volatility 
standard.8
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    \8\As stated in the preamble for the Agency's initial Phase II 
volatility standards (see 55 FR 23609), and in the preamble in the 
proposal to revise those standards (56 FR 24244), EPA may also 
promulgate a rule to revise the volatility standard in a particular 
nonattainment area in order to enhance local air quality and/or 
increase the economic efficiency of the program. The Governor of a 
state, or his designee, may petition EPA for a less stringent 
standard if such a standard is consistent with the requirements of 
the Act and if the state can document (1) particular local economic 
impact that makes the less stringent standard appropriate and (2) 
sufficient alternative programs to achieve attainment and 
maintenance of the NAAQS for ozone.
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IV. Tennessee's Redesignation Request and Maintenance Plan; Request for 
Change in Federal RVP Standard

    On August 26, 1992, the State of Tennessee, through the Tennessee 
Department of Conservation and Environment, submitted to EPA both a 
request to redesignate Knox County (classified as a marginal 
nonattainment area) from nonattainment to attainment for ozone and a 
maintenance plan. The redesignation request was based on three years of 
ambient monitoring data which showed that Knox County had no violations 
of the ozone standard during the three year period of 1989 through 
1991, and was also based on Tennessee's implementation of EPA-approved 
ozone control strategies.9
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    \9\It should also be noted that there were no exceedances of the 
ozone standard during 1992 or 1993.
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    The projected inventory for Knox County showed that, even with the 
9.0 psi RVP standard, the total emissions for VOC, NOx, and CO for 
the year 2004 will be less than the 1990 base year total emissions for 
those pollutants.
    Accompanying the redesignation request was a request to revise the 
Federal RVP standard for Knox County from 7.8 psi to 9.0 psi. 
Tennessee's maintenance demonstration assumed a 9.0 psi standard for 
RVP. EPA deferred action on the relaxation of the RVP standard until 
after redesignation was completed.
    On October 18, 1993 the State of Tennessee Department of 
Environment and Conservation re-asserted its request that the EPA 
revise the Federal RVP standard from 7.8 psi to 9.0 psi for Knox 
County. A copy of the letter, signed by Mr. John W. Walton, P.E., 
Director, Tennessee, Division of Air Pollution Control, has been placed 
in the docket at the location shown in the ``ADDRESSES'' section of 
this notice.

V. EPA Approval of the Knox County Maintenance Plan and Redesignation

    On September 27, 1993,\10\ EPA announced a direct final rule in the 
Federal Register that approved the maintenance plan and redesignation 
of Knox County, Tennessee, to attainment for ozone.
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    \10\See 58 FR 50271 (September 27, 1993).
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    In this rulemaking, EPA's Regional Administrator for Region IV 
determined that the State had met and fulfilled the requirements for 
redesignation contained in section 107(d)(3)(E) of the Clean Air Act 
Amendments of 1990. Information relevant to this redesignation can be 
viewed during normal business hours at the following locations:

Public Information Reference Unit, United States Environmental 
Protection Agency, 401 M Street SW., Washington, DC 20460.
Region IV Air Programs Branch, United States Environmental 
Protection Agency, 345 Courtland Street, Atlanta, Georgia 30365.
Division of Air Pollution Control, Tennessee Department of 
Conservation and Environment, L&C Annex, 9th Floor, 401 Church 
Street, Nashville, Tennessee 37243-1531.
Knox County Department of Air Pollution Control, City/County 
Building, Suite 459, 400 West Main Avenue, Knoxville, Tennessee 
37902.

    Persons interested in further information about the redesignation 
may also contact Mr. Bill Denman, Air Programs Branch, U.S. EPA, 345 
Courtland Street, Atlanta, Georgia 30365, (404) 347-2864.
    Included in that determination were findings that the area had 
attained the NAAQS for ozone, that the improvements in air quality were 
due to permanent and enforceable emission reductions, and that the 
Administrator has fully approved a maintenance plan for the area as 
meeting the requirements of section 175A of the Act.11
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    \1\1Section 175A sets forth requirements for maintenance plans. 
Section 175A(a) requires each State which submits a redesignation 
request under section 107(d) to submit a State Implementation Plan 
(SIP) revision to provide for maintenance of the applicable air 
quality standard for at least 10 years after redesignation. Section 
175A(d) requires inclusion in the SIP of such contingency measures 
as the EPA Administrator deems necessary to assure the State will 
promptly correct any violation of the standard which occurs after 
redesignation.
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    The finding that the area had attained the NAAQS for ozone was 
based on the data indicating that Knox County had no violations in 
1989, 1990 and 1991. The finding that permanent enforceable VOC 
emissions reductions have been obtained was based on evidence that 
emissions had been reduced in Knox County as a result of the Federal 
Motor Vehicle Control Program (FMVCP) and reduced gasoline RVP 
requirements effective in 1989.
    In finding that the maintenance plan meets the requirements of 
section 175A, EPA cited the elements of the plan discussed above. EPA 
noted that the plan relied on a gasoline volatility level of 9.0 psi 
RVP, not 7.8 psi, as is required under current regulations. Moreover, 
the final rule found that Knox County had demonstrated that it can 
maintain the ozone NAAQS using the less stringent volatility level of 
9.0 psi RVP. On that basis, the maintenance plan was approved. No 
significant comments were received subsequently and the redesignation 
of Knox County to attainment for ozone became effective October 27, 
1993.

VI. Today's Final Action

    EPA is today relaxing the RVP standard for Knox County, Tennessee 
from 7.8 psi to 9.0 psi. The effective date of this rule is on June 3, 
1994. Tennessee has met the criteria for relaxation of the RVP standard 
discussed in the December 12, 1991 notice. The State has in place a 
fully approved implementation plan for Knox County that demonstrates 
that the county can maintain the ozone NAAQS with a 9.0 psi standard.
    Tennessee's approved implementation and maintenance plan does not 
require a RVP standard more stringent than 9.0 psi. EPA's approval of 
this plan was based on evidence that the Knox County area can maintain 
ozone attainment for ten years with a 9.0 psi standard. Based upon the 
approval of the maintenance plan, EPA believes sufficient alternative 
programs are in place to achieve attainment and maintenance of the 
ozone NAAQS and that further imposition of the 7.8 psi volatility 
standard would impose needless costs to consumers.12
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    \1\2In the May 29, 1991 notice proposing to modify the Phase II 
volatility standards, EPA estimated that the 7.8 psi standard will 
increase the cost of gasoline by approximately 1.1 cents per gallon 
over the 9.0 psi standard.
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    This action is being taken without prior proposal because EPA 
believes that this relaxation in the RVP regulation is 
noncontroversial, the effect of this rulemaking is limited to Knox 
County, Tennessee, and EPA anticipates no significant comments on this 
action. Today's action is based on the same information that EPA relied 
on in its approval of Tennessee's maintenance plan. EPA received no 
significant adverse comments regarding its approval of the maintenance 
plan or the redesignation of Knox County to attainment.
    The public should be advised that this action will be effective 60 
days from the date of this Federal Register notice, unless notice is 
received within 30 days that someone wishes to submit adverse or 
critical comments. If such notice is received, this action will be 
withdrawn and two subsequent notices will be published. One notice, 
which will be published before the effective date, will withdraw the 
final action. Another notice will begin a new rulemaking by announcing 
a proposal of the action and establishing a comment period. Interested 
persons are invited to submit comments on this proposed approval. EPA 
will consider all comments received within thirty days of the 
publication of this notice.
    Consequently, this procedure still allows the opportunity for 
public comment and opportunity for oral presentation of data that is 
required under CAA section 307(d). This procedure merely provides an 
expedited procedure for final action where a rulemaking is not expected 
to be controversial and no adverse comment is expected.

VII. Environmental Impact

    The amendment is not expected to cause Knox County to violate the 
NAAQS for ozone. The Knox County nonattainment area has met the NAAQS 
since 1989. That is, Knox County, has not recorded an exceedance during 
the time when the RVP standard in Knox County was no more stringent 
than 9.0 psi.

VIII. Economic Impact

    The relaxation of the 7.8 psi standard to 9.0 psi will result in a 
cost savings to consumers of approximately 1.1 cents per gallon at the 
pump.

IX. Administrative Requirements

    Pursuant to the Regulatory Flexibility Act, 5 U.S.C. 601 through 
612, whenever an agency is required to publish a general notice of 
rulemaking for any proposed or final rule, it must prepare and make 
available for public comment a regulatory flexibility analysis which 
describes the impact of the rule on small entities (i.e., small 
businesses, small organizations and small governmental jurisdictions). 
The Administrator may certify, however, that the rule will not have a 
significant impact on a substantial number of small entities. In such 
circumstances, a regulatory flexibility analysis is not required.
    Under Section 605 of the Regulatory Flexibility Act, I certify that 
these regulations will not have a significant impact on a substantial 
number of small entities. The regulatory revision is limited to the 
Knox County area and should have no significant economic impact on a 
substantial number of small entities. These regulations, therefore, do 
not require a regulatory flexibility analysis.
    Under Executive Order 12866, the Agency must determine whether the 
regulatory action is ``significant'' and therefore subject to OMB 
review and the requirements of the Executive Order. The Order defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    It has been determined that this rule is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 and is 
therefore not subject to OMB review. Specifically, this rule will not 
have an annual effect on the economy in excess of $100 million, have a 
significant adverse impact on competition, investment, employment or 
innovation, or result in a major price increase. In fact, as discussed 
above, this action will reduce the cost of compliance with Federal 
requirements in this area.
    Under the Paperwork Reduction Act of 1980, 44 U.S.C. 3501, EPA must 
obtain OMB clearance for any activity that will involve collecting 
substantially the same information from 10 or more non-Federal 
respondents. This direct final rule does not create any new information 
requirements or contain any new information collection activities.

List of Subjects in 40 CFR Part 80

    Administrative practice and procedures, Air pollution control, 
Environmental protection, Motor vehicle and motor vehicle engines, Fuel 
additives, Gasoline, Motor vehicle pollution, Penalties, Reporting and 
recordkeeping requirements.

    Dated: March 28, 1994.
Carol M. Browner,
Administrator.

    For the reasons set forth in the preamble, part 80 of title 40 of 
the Code of Federal Regulations is amended as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

    1. The authority citation for part 80 continues to read as follows:

    Authority: Sections 114, 211, and 301(a) of the Clean Air Act as 
amended (42 U.S.C. 7414, 7545 and 7601(a)).

    2. Section 80.27 is amended by revising the entry for ``Tennessee'' 
in the table in paragraph (a)(2) to read as follows:


Sec. 80.27  Controls and prohibitions on gasoline volatility.

    (a) * * *
    (2) * * *

             Applicable Standards1 1992 and Subsequent Years            
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      State           May        June       July       Aug.      Sept.  
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                              * * * * * * *                             
Tennessee:                                                              
    Knox County..        9.0        9.0        9.0        9.0        9.0
    All other                                                           
     volatility                                                         
     nonattainmen                                                       
     t areas.....        9.0        7.8        7.8        7.8        7.8
                                                                        
                              * * * * * * *                             
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1Standards are expressed in pounds per square inch (psi).               

[FR Doc. 94-7981 Filed 4-1-94; 8:45 am]

BILLING CODE 6560-50-P