[Federal Register Volume 60, Number 21 (Wednesday, February 1, 1995)]
[Rules and Regulations]
[Pages 6030-6032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2435]



-----------------------------------------------------------------------


ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80

[AMS-FRL-5148-4]


Regulation of Fuels and Fuel Additives: Standards for 
Reformulated and Conventional Gasoline

AGENCY: Environmental Protection Agency.

ACTION: Partial withdrawal of final rule.

-----------------------------------------------------------------------

SUMMARY: On July 20, 1994, EPA published a direct final rule (DFRM) 
which made minor corrections, clarifications, and revisions to various 
provisions in the final reformulated gasoline rule which was published 
on February 16, 1994. EPA is withdrawing certain portions of the DFRM, 
because adverse or critical comments were received by the Agency, or an 
opportunity to submit such comments at a public hearing was requested 
for those specific portions. EPA is only withdrawing from the DFRM 
those items which have been specifically addressed in those adverse 
comments. The portions of the DFRM withdrawn by EPA concern individual 
baseline adjustments based on production of JP-4 jet fuel and changes 
to the valid range limits for RVP under the Simple Model. All other 
changes noted in the July 20, 1994 DFRM will go into effect on 
September 19, 1994.

EFFECTIVE DATE: This action is effective January 26, 1995.

ADDRESSES: Materials directly relevant to the direct final rule are 
contained in Public Docket A-94-30, located at Room M-1500, Waterside 
Mall (ground floor), U.S. Environmental Protection Agency, 401 M Street 
SW, Washington, D.C. 20460. Other materials relevant to the 
reformulated gasoline final rule are contained in Public Dockets A-91-
02 and A-92-12 The docket may be inspected from 8:00 a.m. until 4:00 
p.m. Monday through Friday. As provided in 40 CFR part 2, a reasonable 
fee may be charged by EPA for copying docket materials.

FOR FURTHER INFORMATION CONTACT: Joann Jackson Stephens, USEPA (RDSD-
12), Regulation Development and Support Division, 2565 Plymouth Road, 
Ann Arbor, MI 48105, Telephone: (313) 668-4276. To request copies of 
this document contact: Delores Frank, U.S. EPA (RDSD-12), Regulation 
Development and Support Division, 2565 Plymouth Road, Ann Arbor, MI 
48105, Telephone: (313) 668-4295.

SUPPLEMENTARY INFORMATION: The DFRM published by EPA on July 20, 1994 
made a number of changes to EPA's regulations for reformulated and 
conventional gasoline. EPA issued a direct final rule because the 
changes it contained were generally minor in nature and were expected 
to be non-controversial. The DFRM allowed the Agency to finalize such 
changes in an expeditious and timely manner. For instance, many of the 
changes clarified issues relevant to the development and auditing of 
individual baselines which were to be submitted no later September 1, 
1994. Likewise, since the reformulated gasoline program will commence 
on December 1, 1994, the clarifications and changes contained in the 
direct final rule promote successful implementation of the reformulated 
gasoline and anti-dumping programs.
    Since a number of the changes to the final rule were not 
insubstantial, EPA provided a 30-day comment period in which comments 
on specific items could be submitted or a public hearing requested. EPA 
also announced that it would withdraw from the direct final rule those 
items that were adversely commented on. This would have the effect of 
re-activating the regulatory provisions for those items in the final 
rule for reformulated gasoline promulgated on December 15, 1993 and 
published in the Federal Register on February 16, 1994 (59 FR 7715).
    The Agency has received adverse comments on just a few of the 
changes in the direct final rule. The comments themselves can be found 
in Public Docket A-94-30. Each of the specific items addressed in the 
comments is being withdrawn from the DFRM by today's action, which is 
effective immediately. All items that were not adversely commented on 
will go into effect on September 19, 1994.
    A copy of this action is available on the EPA's Office of Air 
Quality Planning and Standards (OAQPS) Technology Transfer Network 
Bulletin Board System (TTNBBS). The service is free of charge, except 
for the cost of the phone call. Users are able to access and download 
TTN files on their first call. The TTNBBS can be accessed with a dial-
in [[Page 6031]] phone line and a high-speed modem per the following 
information.

TTN BBS: 919-541-5742 (1200-14400 bps, no parity, 8 data bits, 1 stop 
bit)
Voice Helpline: 919-541-5384
Also accessible via Internet: TELNET ttnbbs.rtpnc.epa.gov
Off-line: Mondays from 8:00 AM to 12:00 Noon ET

    When first signing on, the user will be required to answer some 
basic informational questions for registration purposes. After 
completing the registration process, proceed through the following 
series of menus:

  GATEWAY TO TTN TECHNICAL AREAS (Bulletin Boards)
  OMS
  Rulemaking and Reporting
<3>  Fuels
<9>  Reformulated gasoline

    A list of ZIP files will be shown, all of which are related to the 
reformulated gasoline rulemaking process. To download any file, type 
the instructions below and transfer according to the appropriate 
software on your computer:

ownload, rotocol, xamine, ew, ist, or elp
Selection or  to exit: D filename.zip

    You will be given a list of transfer protocols from which you must 
choose one that matches with the terminal software on your own 
computer. The software should then be opened and directed to receive 
the file using the same protocol. Programs and instructions for de-
archiving compressed files can be found via ystems Utilities from 
the top menu, under rchivers/de-archivers. After getting the files 
you want onto your computer, you can quit the TTN BBS with the 
oodbye command. Please note that due to differences between the 
software used to develop the document and the software into which the 
document may be downloaded, changes in format, page length, etc. may 
occur.
    The remainder of this preamble is organized into the following 
sections:

I. Withdrawal of Change to JP-4 to Gasoline Production Ratio
II. Withdrawal of JP-4 Adjustment Multi-Refinery Requirement
III. Withdrawal of Change to the Valid Range Limits for RVP under 
the Simple Model

I. Withdrawal of Change to JP-4 to Gasoline Production Ratio

    EPA received comments from Shell Oil Company, Phillips 66 Company, 
and Chevron USA Products Company objecting to the change of the 1990 
JP-4 to gasoline production ratio from 0.5 to 0.2. A discussion of 
EPA's perspective on this regulatory provision was presented in Section 
IV, Part B.2 of the DFRM preamble. See 59 FR 36944 (July 20, 1994). For 
the most part, commenters expressed the belief that the selection of 
the 0.2 JP-4 to gasoline production ratio was arbitrary. In addition, 
EPA was faulted with disregarding the significant economic and 
competitive impact of redefining the ratio on those refiners with 
ratios falling below 0.2. In fact, most commenters supported allowing 
baseline adjustments for all refiners that produced JP-4 in 1990, 
thereby eliminating the need for a JP-4 to gasoline ratio altogether.
    Since commenters objected to the change in specifying this ratio, 
as announced in the DFRM, EPA is withdrawing the action in the July 
DFRM which lowered the 1990 JP-4 to gasoline production ratio to 0.2. 
The 0.2 ratio will not go into effect on September 19th. The criteria 
for an adjustment to an individual baseline based on production of JP-4 
will include a 1990 JP-4 to gasoline production ratio of 0.5, as was 
promulgated in the December 1993 final regulations for reformulated 
gasoline.

II. Withdrawal of JP-4 Adjustment Multi-Refinery Requirement

A. Withdrawal of Relaxation of the Requirement That All Refineries in 
an Aggregate Produced JP-4 in 1990

    In August, EPA received comments from Chevron USA Products Company 
regarding the revised JP-4 adjustment appearing in the July DFRM. In 
addition to the JP-4 to gasoline production ratio, Chevron objected to 
the change in the multiple refinery requirement discussed in Preamble 
Section VI.B.1. See 59 FR 36944 (July 20, 1994). Chevron argued in 
their comments that the combined provisions for the JP-4 adjustment 
(ratio and multi-refiner requirement) were designed to benefit a 
certain class of refiners and thereby providing that class of refiners 
with competitive advantages not offered to all refiners.
    The DFRM would have altered the regulations to allow utilization of 
the JP-4 adjustment for those refiners with multiple refineries (milti-
refinery refiner) regardless of whether or not each of their refineries 
produced JP-4 in 1990. The DFRM revised provision was intended to treat 
refiners who produced JP-4 equally regardless of whether or they owned 
more than one refinery. Since the Agency received a critical comment on 
the revised multiple refinery provision in the DFRM, EPA is now 
withdrawing that provision. The requirement for multi-refinery refiner 
reverts to the original provision contained in the December 1993 final 
reformulated gasoline rule. Therefore, baseline adjustments are only 
allowed for multi-refinery refiners where each of a refiner's 
refineries produced JP-4 in 1990.

B. Withdrawal of the Requirement for an Aggregate JP-4 Production Ratio 
Calculation

    The July DFRM also contained a provision which would have required 
refiners of multiple refineries to average their 1990 JP-4 production 
to 1990 gasoline production ratio across all of their refineries. See 
59 FR 36944 (July 20, 1994). The Agency received adverse comments on 
this provision from Chevron and Pennzoil. While Chevron did not 
specifically mention objections to this element of the multi-refinery 
requirement promulgated in the DFRM, the Agency understands Chevron's 
critical comments as applying equally to each component of the DFRM 
multi-refinery requirement. Pennzoil objected to the DFRM's requirement 
to average the JP-4 to gasoline production ratio over all a refiner's 
refineries (in essence an aggregate ratio) if the ratio reverts back to 
0.5 as promulgated in the December 1993 RFG final regulations. Pennzoil 
claimed that the combination of the higher, more stringent ratio 
threshold (0.5) and the more restrictive requirement to calculate 
across all of a multi-refiner's refineries would eliminate the 
meaningful relief to JP-4 producers.
    Since EPA received adverse comments on those provisions, it is 
withdrawing those regulatory provisions receiving negative comments. 
Today's action withdraws the July DFRM JP-4 adjustment multiple 
refinery provisions. The multiple refinery provisions in 
Sec. 80.91(e)(7) remain as promulgated in the December 1993 
reformulated gasoline final rule.

III. Withdrawal of Change to the Valid Range Limits for RVP Under the 
Simple Model

    In August, the American Automobile Manufacturers Association (AAMA) 
submitted comments to the Agency which objected to the change in the 
low end valid range for RVP under the Simple Model. Their concern is 
that low RVP fuels might have high driveability indices (DIs). 
According to AAMA, high DI fuels produce higher vehicle emissions and 
poor customer satisfaction. As explained in their comments, unlike the 
Complex Model, the Simple Model does not limit distillation 
temperatures and the promulgated extension of the RVP valid 
[[Page 6032]] range could allow production of fuels with low volatility 
and a high DI.
    EPA's July DFRM provision would have revised the low end of the 
valid range for RVP under the Simple Model to 6.4 psi, from 6.6 psi. 
The Agency made this alteration to the regulations to make the low end 
of the valid range for RVP consistent throughout Phase I of the federal 
reformulated gasoline program, and provide additional flexibility for 
refiners to complement the already established blending and enforcement 
tolerances. However, since AAMA submitted comments which are critical 
of the Agency's Simple Model valid range revision before the August 
19th deadline, EPA is withdrawing the revised provision. The low end 
valid range RVP limit under the Simple Model remains 6.6 psi, as was 
promulgated in the December 1993 reformulated gasoline regulations.
    Therefore the amendments to Sec. 80.91(e)(7) (the altered JP-4 
multi-refinery requirement and the lower 1990 JP-4 to gasoline 
production ratio) and to Sec. 80.42 table in paragraph (c)(1) (altering 
the lower limit RVP valid range in the simple model) appearing at 59 FR 
36944 (July 20, 1994), which were to become effective September 19, 
1994 are hereby withdrawn.
    It is important to note that EPA's withdrawal of these regulatory 
changes is not based on EPA's agreement or disagreement with the 
adverse comments received. The withdrawal is based solely on EPA's 
determination, announced in the DFRM, that these changes would go into 
effect as a direct final rule only if no persons submitted adverse 
comments or requested an opportunity to comment. EPA is reviewing 
comments and is currently developing a notice of proposed rulemaking 
that will address the regulatory changes withdrawn by this notice.
    EPA is withdrawing these provisions to the reformulated and 
conventional gasoline regulations without providing prior notice and an 
opportunity to comment because it finds there is good cause within the 
meaning of 5 U.S.C. 553(b) to do so. Notice and comment would be 
impracticable, as EPA needs to withdraw these changes quickly as they 
go into effect on September 19, 1994. In addition further notice is not 
necessary as EPA has already informed the public it would follow this 
procedure if adverse or critical comments were received within 30 days 
of the publication of the DFRM. For the same reasons, EPA finds it has 
good cause under 5 U.S.C. 533(b) to make this withdrawal immediately 
effective.

IV. Statutory Authority

    The statutory authority for this action is granted to EPA by 
Sections 114, 211(c) and (k) and 301 of the Clean Air Act, as amended; 
42 U.S.C. 7414, 7545(c) and (k), and 7601.

List of Subjects in 40 CFR Part 80

    Envrironmental protection, Air pollution control, Fuel additives, 
Gasoline, Motor vehicle pollution.

    Dated: January 26, 1995.
Carol M. Browner,
Administrator.

    40 CFR part 80 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. In Sec. 80.42, the table in paragraph (c)(1) is revised to read 
as follows:


Sec. 80.42  Simple emissions model.

* * * * *
    (c) * * *
    (1) * * *

------------------------------------------------------------------------
                    Fuel parameter                            Range     
------------------------------------------------------------------------
Benzene content.......................................  0-4.9 vol %     
RVP...................................................  6.6-9.0 psi     
Oxygen content........................................  0-4.0 wt %      
Aromatics content.....................................  0-55 vol %      
------------------------------------------------------------------------

* * * * *
    3. In Sec. 80.91, paragraph (e)(7)(i)(D) is removed and paragraphs 
(e)(7)(i)(A) and (e)(7)(i)(C) are revised to read as follows:


Sec. 80.91  Individual baseline determination.

* * * * *
    (e) * * *
    (7) * * *
    (i) * * *
    (A) The refinery is the only refinery of a refiner such that it 
cannot form an aggregate baseline with another refinery (per paragraph 
(f) of this section) or all of the refineries of a refiner produced JP-
4 in 1990 and each of the refineries also meets the requirements 
specified in paragraphs (e)(7)(i) (B) and (C) of this section.
* * * * *
    (C) The ratio of the refinery's 1990 JP-4 production to its 1990 
gasoline production equals or exceeds 0.5.
* * * * *
[FR Doc. 95-2435 Filed 1-31-95; 8:45 am]
BILLING CODE 6560-50-P