[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: 94-7982]


[[Page Unknown]]

[Federal Register: April 4, 1994]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80

[FRL-4857-2]

 

Approval of Colorado's Petition To Relax the Federal Reid Vapor 
Pressure Volatility Standard for Colorado in 1994 and 1995

AGENCY: Environmental Protection Agency (EPA).


ACTION: Direct final rulemaking.

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SUMMARY: In today's action EPA is issuing as a direct final rule 
approving the State of Colorado's petition to relax the Reid Vapor 
Pressure (RVP) Standard applicable to gasoline introduced into commerce 
in the Denver-Boulder ozone nonattainment area from June 1 to September 
15 from 7.8 pounds per square inches (psi) to 9.0 psi for the years 
1994 and 1995. Federal RVP standards were promulgated by EPA on June 
11, 1990 and revised on December 12, 1991, pursuant to the Clean Air 
Act, as amended by the Clean Air Act Amendments of 1990 (the Act). 
Colorado's petition is based on evidence that the Denver-Boulder area 
does not need the 7.8 psi standard to maintain ozone attainment in the 
near term and that the 7.8 psi standard would impose significant costs 
on industry and consumers. Colorado's petition requests a continuation 
of a previous relaxation for the RVP standard approved by the EPA for 
the years 1992 and 1993. This action is being taken without prior 
notice because EPA believes that this rulemaking is noncontroversial 
due to the limited scope of this rulemaking, Colorado's continued 
attainment of the ozone standard and for the reasons discussed in this 
notice.

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 
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-94-01. The docket is located at the Air Docket Section (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 may be 
inspected from 8:30 a.m. to 12 p.m. and from 1:30 p.m. to 3:30 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 at the 
following address: Michael Ball, U.S. Environmental Protection Agency, 
Office of Air and Radiation, 401 M Street SW. (6406-J), Washington, DC 
20460.

FOR FURTHER INFORMATION CONTACT: Michael Ball of the Regional/State/
Local Coordination Section at (202) 233-9005. See the ADDRESSES caption 
for the mailing address.

SUPPLEMENTARY INFORMATION:

I. 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 and a major 
contributor to the nation's serious ground level ozone problem which 
results in harm to human health and to the public welfare. The Agency 
published a Notice of Final Rulemaking on March 22, 1989 that put into 
place Phase I of the program to require VOC reductions available 
through refining changes that could be accomplished 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, 
1992.4

    \1\52 FR 31274 (August 16, 1987).
    \2\54 FR 11868 (March 22, 1989).
    \3\54 FR 23658 (June 11, 1990).
    \4\As described in greater detail in the Background section, the 
Phase II regulations were repromulgated to incorporate changes in 
the federal RVP program as directed by the Act.
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    The final rule for the Phase I program established a federal 
volatility standard in Colorado of 10.5 psi for the month of May, and 
9.5 for June 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. Under the Phase I and 
Phase II approach, the gasoline volatility levels were applicable on a 
state-wide basis.

    The Clean Air Act Amendments of 1990, however, established new 
requirements for the fuel volatility program. Section 211(h) of the Act 
as amended required that EPA modify the Phase II fuel volatility 
program. Section 211(h)(1) requires 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 emission control, and economic factors.'' The Act also allows EPA 
to impose an RVP standard lower than 9.0 psi 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.5 In this notice, EPA 
proposed that, beginning in 1992, the RVP standard would 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 had been designated as nonattainment, EPA proposed that the 
original Phase II standards published on June 11, 1990 not be changed. 
On December 12, 1991 EPA finalized these modifications.6
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    \5\56 FR 24242 (May 29, 1991).
    \6\56 FR 64704 (December 12, 1991).
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    The Denver-Boulder metropolitan area is designated nonattainment 
for the ozone NAAQS. The nonattainment area which encompasses Denver's 
entire six-county Consolidated Metropolitan Statistical Area, with the 
exception of Rocky Mountain National Park in Boulder County and the 
eastern portions of Adams and Arapahoe Counties. Under the Phase II 
rule finalized on December 12, 1991, the standard applicable in the 
Denver-Boulder nonattainment area beginning in 1992 was determined to 
be 9.0 psi in May and 7.8 psi from June 1 to September 15. The standard 
applicable in other areas of Colorado was established at 9.0 psi from 
May 1 to September 15.
    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 
the Denver-Boulder nonattainment area to be a ``transitional area'' as 
determined under section 185A of the Act, as amended. A transitional 
area is ``an area designated as an ozone nonattainment area as of the 
date of enactment of the Clean Air Act Amendments of 1990 (that) has 
not violated the national primary ambient air quality standard for 
ozone for the 36-month period commencing on January 1, 1987, and ending 
on December 31, 1989.''
    As stated in the preamble for the Phase II volatility 
controls7 and reiterated in the proposed change to the volatility 
standards published on May 29, 1991,8 EPA will rely on states to 
initiate changes to the EPA volatility program that they believe will 
enhance local air quality and/or increase the economic efficiency of 
the program, within the statutory limits. EPA provided a mechanism for 
the Governor of a state to request a less stringent volatility standard 
for some month or months, if the petition could demonstrate the 
existence of a particular local economic impact that made such changes 
appropriate and if the petition could demonstrate that sufficient 
alternative programs were available to achieve attainment and 
maintenance of the ozone National Ambient Air Quality Standards 
(NAAQS).
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    \7\The Phase II final rulemaking established procedures by which 
states could petition EPA for more or less stringent volatility 
standards. 55 FR 23660 (June 11, 1980).
    \8\56 FR 24242 (May 29, 1991).
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II. EPA's Approval of Colorado's Petition for 1992 and 1993

    On October 16, 1991, Governor Roy Romer requested EPA to amend the 
federal RVP standards for the Denver-Boulder ozone nonattainment area. 
The specific change requested was to relax the 7.8 psi standard for the 
Denver-Boulder nonattainment area to 9.0 psi area for 1992 and 1993. 
The Governor further requested that the 7.8 psi standard take effect 
beginning in June of 1994, unless the State of Colorado specifically 
requested via the Colorado Ozone Maintenance State Implementation Plan 
(SIP), that the 9.0 psi standard be retained. EPA thus treated this 
petition as a request for a two-year relaxation of the volatility 
standard for the Denver-Boulder nonattainment area to 9.0 psi until 
1994.
    On May 12, 1992, EPA proposed to approve the State of Colorado's 
petition to relax until 1994 the gasoline volatility standard for the 
Denver-Boulder nonattainment area. EPA reviewed the State of Colorado's 
petition and found that the request to relax the federal volatility 
standard for the Denver-Boulder nonattainment area until 1994 from the 
Phase II standard of 7.8 psi to 9.0 psi was justified based on the 
petition itself, the evidence submitted on behalf of Governor Romer, 
and EPA's own analysis of the costs of implementation of the 7.8 psi 
standard and the environmental need for the 7.8 psi standard.
    The petition and available evidence sufficiently demonstrated that 
retention of the 7.8 psi standard would impose significant costs on 
consumers and industry relative to a 9.0 psi standard, and that the 7.8 
psi standard was not necessary for emission control until 1994 in light 
of the current transitional status of the Denver-Boulder area. EPA also 
determined that an analysis by Colorado to demonstrate that sufficient 
alternative programs were in place to insure future attainment of the 
ozone standard was not necessary due to the State's consistent 
attainment of the ozone NAAQS since 1986. Finally, Colorado provided 
further assurances that a two-year relaxation of the standard would 
provide sufficient time for the State to complete an ozone maintenance 
plan. Such a plan would allow the State to determine if 7.8 psi 
gasoline was necessary for continued attainment in future years. Thus, 
at that time, the State could determine if a permanent change in the 
standard was necessary.
    On April 30, 19939 the EPA approved Colorado's petition. The 
relaxation was therefore determined to be justified under section 
211(h) of the Act.10 EPA received three comments in response to 
this proposal. For the reasons discussed in the April 30, 1993 final 
notice (and in greater detail in the NPRM), EPA approved the State of 
Colorado's petition.
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    \9\53 FR 26067 (April 30, 1993).
    \1\0Under section 211(h), EPA must set a national summertime 
gasoline volatility standard of 9.0 psi beginning in 1992. EPA must 
also establish more stringent volatility standards ``in a 
nonattainment area as the Administrator finds necessary to generally 
achieve comparable evaporative emissions (on a per-vehicle basis) in 
nonattainment areas taking into consideration the enforceability of 
such standards, the need of an area for emission control and 
economic factors.''
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III. Colorado's Petition To Relax the RVP Standard for 1994 and 1995

    On September 15, 1993, Governor Roy Romer sent a letter to Jack 
McGraw, Acting Administrator of EPA Region VIII, requesting that EPA 
amend the federal RVP standards for the Denver-Boulder nonattainment 
area. Specifically, Governor Romer requested that EPA extend the 
relaxation of the RVP standard of 7.8 psi to 9.0 psi granted for the 
1992 and 1993 summer ozone season to the years 1994 and 1995. The 
Governor further requested that the 7.8 psi standard take effect 
beginning in June of 1996, unless the State of Colorado specifically 
requests via the Colorado Ozone Maintenance SIP that the 9.0 psi 
standard be retained. EPA thus will treat this petition as a request 
for a two-year relaxation of the volatility standard for the Denver-
Boulder nonattainment area to 9.0 psi until 1996. If the Governor's 
request were granted, the phase II volatility standard of 7.8 psi would 
not become effective until 1996. Thereafter, the 7.8 psi standard would 
be implemented unless EPA receives and approves a subsequent request 
from the Governor to continue the relaxation or a maintenance plan is 
submitted and approved that demonstrates no future need for the 7.8 psi 
gasoline to achieve attainment.
    Governor Romer's request results from the Colorado Air Quality 
Control Commission's (the Commission) recommendation to relax the RVP 
standard. The Commission endorsed the relaxed RVP standard based upon 
testimony provided at a public hearing on August 19, 1993, and after 
consideration of the environmental and economic impact of the 7.8 psi 
federal standard. A transcript of the testimony and comments submitted 
at this hearing are available in the docket for this rulemaking.11 
In forwarding this request to EPA, Governor Romer is following 
procedures stated in the preamble for the Phase II volatility rule. As 
mentioned in Section II, requests for changes to the federal volatility 
standard must include the following: (1) documentation of the local 
economic impact of the otherwise applicable standard and (2) an 
indication that sufficient alternative programs are available to 
achieve attainment and maintenance of the ozone NAAQS.
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    \1\1Docket A-94-01.
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A. The Commission's Hearing

    The Air Pollution Control Division (APCD) of the Colorado 
Department of Health submitted documentation and testimony to the EPA 
regarding the environmental need of the 7.8 standard. This testimony 
was presented at a hearing before the Colorado Air Quality Control 
Commission held on August 19, 1993. The APCD testified in support of a 
relaxation of the RVP standard to 9.0 psi before the Commission, 
stating that the Denver-Boulder nonattainment area had not violated the 
NAAQS for ozone for the period from January 1, 1987 to December 31, 
1989 when EPA designated areas under the Act. Because Denver had not 
experienced ozone violations during this time period, the Denver-
Boulder area was afforded ``transitional'' nonattainment status. The 
APCD further testified that there were no monitored violations of the 
ozone NAAQS since 1986. The APCD noted that the volatility standard for 
the Denver-Boulder nonattainment area in 1992 and 1993 was 9.0 psi and 
no violations of the standard were recorded. (However, there were 
single exceedances of the ozone NAAQS at two stations during 1993.) The 
APCD concluded that the Denver-Boulder area would be able to continue 
attainment of the ozone standard with 9.0 psi RVP gasoline based upon 
this information. The APCD also concluded that implementation of the 
lower RVP standard would burden refiners, gasoline marketers, and 
consumers unnecessarily with higher costs especially in light of 
current ozone concentration levels.
    According to the petition that Colorado sent to EPA in 1991 
requesting relaxation of the RVP standard in the Denver-Boulder area 
during 1992 and 1993, the APCD was to have completed an ozone 
maintenance plan for the Denver area by June of 1993. The maintenance 
plan is necessary in order for the EPA to redesignate the area as 
having attained the ozone standard.12 In the August 19, 1993 
hearing, the Commission raised questions regarding the inability of the 
APCD to complete the ozone maintenance plan on time. The APCD testified 
that due to resource limitations caused by programmatic obligations 
under the Act, an ozone maintenance plan assumed a lower priority and 
could not be completed by the June 1993 deadline.13 Thus, the APCD 
concluded that a two year extension of the RVP relaxation would be 
necessary to provide sufficient time to develop the ozone maintenance 
plan. Furthermore, because the Denver area continued to attain the 
ozone standard, the APCD concluded that an extension of the relaxation 
was not inappropriate. The APCD estimated that a plan would be 
developed and submitted by early 1995. It therefore recommended that a 
petition to relax the 7.8 psi standard to 9.0 be approved by the 
Commission and subsequently recommended to the Governor.
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    \1\2An ozone maintenance plan that demonstrates long term (10 
years) maintenance of the ozone NAAQS must be developed by the state 
before an area can be redesignated to attainment.
    \1\3In particular, the APCD testified that the considerable 
amount of work that had to be devoted to the PM 10 and CO 
nonattainment SIPs, made it impossible to complete work on the ozone 
SIP. The Denver-Boulder area is a moderate nonattainment area for 
both PM10 and CO.
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    Based on the information received in the hearing, the Commission on 
August 19, 1993 adopted a resolution requesting that Governor Romer 
petition the EPA to retain the 9.0 psi standard for the 1994 and 1995 
summer ozone seasons. The Commission also adopted a declaration that 
the APCD begin work on the Ozone Maintenance SIP and that it be 
completed on time. Governor Romer subsequently requested the two year 
relaxation in a letter dated September 15, 1993 to Acting Regional 
Administrator Jack McGraw.

B. Sufficient Alternative Programs

    Because Colorado has not violated the ozone standard since 1986, 
EPA does not believe it is necessary for the State to show that 
sufficient alternative programs are in place to provide for attainment 
of the ozone NAAQS. EPA approved the Ozone State Implementation Plan 
(SIP) for the Denver-Boulder area in 1983.14 This plan relied upon 
emission reductions from the Federal Motor Vehicle Control Program and 
an Inspection and Maintenance Program to provide for attainment of the 
ozone NAAQS by the statutory deadline of December 31, 1987. Since the 
beginning of 1986, none of the area's several ozone air quality 
monitors has recorded a violation of the ozone NAAQS.15 Because 
the available data showed no violations, EPA did not require the State 
to submit a revised Ozone SIP in 1988 during EPA's nationwide ozone SIP 
evaluation. As noted above, the area is currently classified as a 
``Transitional'' area under section 185(A) of the Act. Under these 
circumstances, Colorado need not provide for alternative ozone control 
programs in order to obtain a relaxation of the RVP standard to 9.0 
psi.
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    \1\448 FR 55284 (December 12, 1983).
    \1\5EPA has ongoing concerns with the quality of some of the 
ozone data and the geographic coverage of the monitoring network, 
and is working with Colorado to resolve these issues. Region VIII is 
currently working with the state to establish a network of maximum 
concentration monitors.
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IV. EPA's Proposed Action

A. Relaxation of Colorado's Reid Vapor Pressure Standard

    EPA is approving as a direct final decision the State of Colorado's 
request to relax the federal volatility standard for the Denver-Boulder 
nonattainment area until 1996 from the current standard of 7.8 psi to 
9.0 psi. Section 211(h) of the Act requires EPA to promulgate 
regulations that shall establish RVP standards in a nonattainment area 
that are more stringent than 9.0 psi ``as the Administrator finds 
necessary to generally achieve comparable evaporative emissions (on a 
per-vehicle basis) in nonattainment areas taking into consideration the 
enforceability of such standards, the need of an area for emission 
control, and economic factors.'' Based on the petition and the evidence 
submitted on behalf of Governor Romer, EPA believes that the requested 
relaxation of the standard is justified.
    The petition and available evidence indicated that retention of the 
7.8 psi standard would impose significant cost on consumers and 
industry and that the 7.8 psi standard is not necessary in the short-
term given the current transitional status of the Denver-Boulder area 
and the area's record of continued attainment of the ozone standard. 
Although Colorado has not submitted additional analysis regarding the 
costs of implementing a 7.8 psi RVP standard, EPA believes the cost 
analysis it performed based on Colorado's original 1991 petition is 
still applicable. That analysis indicated that a $3,500,000 to 
$4,000,000 savings would be realized in the Denver-Boulder area during 
the summer ozone season.16 As discussed in the May 29, 1991 notice 
EPA estimates that a relaxation of the 7.8 psi standard to 9.0 psi will 
result in a savings of approximately 1.1 cents per gallon.17 EPA 
believes, therefore, that retention of the 7.8 psi standard would 
impose significant costs on consumers and industry relative to a 9.0 
psi standard.
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    \1\6A detailed analysis of the costs associated with the RVP 
program in Colorado can be found in air docket A-92-08 created for 
the proposal to grant Colorado's petition for relaxation for 1992 
and 1993. 57 FR 20234 (May 12, 1992).
    \1\756 FR 24246 (May 29, 1991).
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    Moreover, EPA agrees with Colorado that the Denver-Boulder area 
will not need a 7.8 psi standard in the next two years to comply with 
the ozone NAAQS. The area has not violated the standard since 1986. 
Since this time summertime gasoline volatility was reduced 
significantly through the implementation of the Phase I and Phase II of 
the federal RVP standards. Although EPA believes that a short term 
relaxation of the RVP standard will not cause a violation of the ozone 
NAAQS in the Denver-Boulder area, EPA is concerned regarding the area's 
long term compliance. The Denver-Boulder area's growing population and 
increase in vehicle miles travelled generate questions regarding 
whether sufficient controls are available to provide for maintenance of 
the ozone NAAQS over the long term. Moreover, the area did experience 
single exceedances during the 1993 ozone season at two monitoring 
stations and has experienced other readings near or above 0.120 in 
recent years. Therefore, the long-term maintenance of the standard in 
the Denver-Boulder areas is in question.
    Moreover, Colorado has failed to develop a maintenance plan for the 
Denver-Boulder area, despite its commitment to do so by June, 1993 in 
the original request for relaxation of the RVP standard in Denver-
Boulder during 1992 and 1993. EPA granted Colorado's original request 
for relaxation with the expectation that the state would submit an 
ozone maintenance plan by this date. Colorado's failure has left EPA 
with no assurance that the Denver-Boulder area will be able to maintain 
its compliance with the ozone NAAQS for the next ten years.
    Because of the area's classification as transitional, EPA was 
required to determine by June 30, 1992 whether the area had in fact 
attained the ozone standard by December 31, 1991. If the Administrator 
determined that the area had attained the standard, the state was 
required to submit, within twelve months of the determination, a 
maintenance plan meeting the requirements of section 175A of the 
Act.18 Thomas Getz, Director of the APCD has submitted a letter to 
EPA that asserts that the ozone maintenance plan has been delayed 
because of serious staff resource constraints caused by projects of 
higher priority, including the PM 10 and CO SIPs. The letter states 
that the PM 10 and CO SIPs are subject to potential sanctions and that 
the state has been working to address the statutorily mandated 
deadlines for these plans. As the Denver-Boulder area has not 
experienced an ozone violation in recent years, the APCD believed the 
completion of the ozone SIP to be less urgent than the completion of 
the other plans. In addition, data necessary to complete baseline 
emissions inventories was not available for use in the plan. This memo 
has been placed in the docket for this rulemaking.
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    \1\8On October 22, 1992, EPA Region VIII sent a letter to 
Governor Romer stating that the Denver-Boulder transitional area had 
not violated the ozone NAAQS during the period from January 1, 1987 
to December 31, 1991.
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    Despite these limitations, however, Colorado has committed to 
developing a maintenance plan for ozone to be submitted by early 1995. 
Through this plan, the state will determine what additional control 
measures, if any, will be necessary to provide for continued attainment 
of the ozone NAAQS. The maintenance plan must show that the ozone 
standard will be maintained for a period of at least ten years. The 
development of this maintenance plan will give Colorado an opportunity 
to conduct a comprehensive air quality modeling exercise to determine 
what control measures will be necessary to provide for long term 
maintenance of the ozone NAAQS. Along with the existing SIP measures, 
tighter gasoline volatility and other strategies will be evaluated to 
determine the most appropriate and cost-effective strategy for 
maintaining the NAAQS. Today's action should provide Colorado with 
sufficient time to complete an ozone maintenance plan. Moreover, 
ongoing vehicle fleet turnover, as well as several new requirements of 
the Clean Air Act Amendments (such as tighter tailpipe standards, 
longer useful life definitions, on-board diagnostic and refueling 
equipment, and enhanced inspection and maintenance requirements) are 
likely to lead to reduction in overall mobile source emissions of VOCs.
    While the maintenance plan is being developed, EPA believes that 
air quality will be protected by the ongoing control programs. The 
volatility standard for Denver-Boulder will drop to 7.8 psi in 1996 
unless additional action by the Commission and the Governor, backed by 
a comprehensive maintenance plan, is taken to extend the 9.0 psi 
standard.

B. Direct Final Rulemaking

    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 the 
Denver-Boulder, Colorado nonattainment area; and EPA anticipates no 
significant comments on this action. This action represents a 
continuation of a previously approved relaxation in the RVP standard 
and will provide Colorado the necessary time to complete an ozone 
maintenance plan at which time a long term projection will be made 
regarding the need for a more stringent RVP standard.
    This action will be effective 60 days from the date of this Federal 
Register notice, unless notice is received within 30 days of today's 
notice 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.

V. Environmental Impact

    The proposed amendment is not expected to have any adverse 
environmental effects. The Denver-Boulder six county nonattainment area 
has met the NAAQS since 1986. Current air quality is expected to be 
further maintained by a 9.0 psi standard.

VI. Economic Impact

    The proposed relaxation of the 7.8 psi standard to 9.0 psi will 
result in a cost reduction in refining, and an increase in summertime 
gasoline supply levels. For each summer, this translates into 
approximately a 1.1 cent per gallon cost savings to consumers at the 
pump.

VII. 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 
Denver-Boulder 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 12866,19 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:
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    \1\9 58 FR 51735 (October 4, 1993).
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    (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 ``Colorado'' 
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             
------------------------------------------------------------------------
      State           May       June       July       Aug.       Sept.  
------------------------------------------------------------------------
                                                                        
                                                                        
                              * * * * * * *                             
Colorado2........        9.0        7.8        7.8        7.8        7.8
                                                                        
                             * * * * * * *                              
------------------------------------------------------------------------
1Standards are expressed in pounds per square inch (psi).               
2The standard for 1992 through 1995 in the Denver-Boulder nonattainment 
  area will be 9.0 for June 1 through September 15.                     

[FR Doc. 94-7982 Filed 4-1-94; 8:45 am]
BILLING CODE 6560-50-P