[Federal Register Volume 60, Number 150 (Friday, August 4, 1995)]
[Rules and Regulations]
[Pages 40006-40008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18992]




[[Page 40005]]

_______________________________________________________________________

Part III





Environmental Protection Agency





_______________________________________________________________________



40 CFR Part 80



Reformulated and Conventional Gasoline Standards; Final and Proposed 
Rules

  Federal Register / Vol. 60, No. 150 / Friday, August 4, 1995 / Rules 
and Regulations   

[[Page 40006]]


ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[AMS-FRL-5267-5]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; administrative stay.

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

SUMMARY: The Environmental Protection Agency (EPA or the Agency) is 
issuing a three-month administrative stay of certain portions of the 
anti-dumping regulations for conventional gasoline (gasoline not 
certified as reformulated gasoline) which were promulgated in December 
1993. Specifically, today's action stays criteria of the existing 
requirements for obtaining an individual refinery baseline adjustment 
due to the production of JP-4 jet fuel in 1990 and criteria of the 
conventional gasoline provisions concerning refiners that are no longer 
able to obtain extremely sweet crude which was available in 1990 and 
was used to develop the 1990 individual baseline. In a related Notice 
of Proposed Rulemaking, which is published elsewhere in this issue of 
the Federal Register, EPA is proposing new baseline adjustment criteria 
for these two cases. In both of these cases, the stay only applies to 
those refiners that meet the new proposed criteria for a baseline 
adjustment.

EFFECTIVE DATE: This final rule is effective August 4, 1995.

ADDRESSES: Materials relevant to the reformulated gasoline Final Rule 
are contained in Public Dockets A-91-02 and A-92-12. Materials relevant 
to the Notice of Proposed Rule on baseline adjustments are contained in 
Public Docket A-95-03. These dockets are located at Room M-1500, 
Waterside Mall (ground floor), U.S. Environmental Protection Agency, 
401 M Street, SW., Washington, DC 20460. The docket may be inspected 
from 8:00 a.m. until 5:00 p.m. Monday through Friday. A reasonable fee 
may be charged by EPA for copying docket materials.

FOR FURTHER INFORMATION CONTACT: Carol Menninga, U.S. EPA (RDSD-12), 
Regulation Development and Support Division, 2565 Plymouth Rd., Ann 
Arbor, MI 48105. Telephone (313) 668-4480. To request copies of this 
document, contact Delores Frank, U.S. EPA (RDSD-12), Regulation 
Development and Support Division, 2565 Plymouth Rd., Ann Arbor, MI 
48105. Telephone (313) 668-4295.

SUPPLEMENTARY INFORMATION:

I. Electronic Copies of Rulemaking Documents Through the Technology 
Transfer Network Bulletin Board System (TTNBBS)

    A copy of this document is available electronically 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. The TTNBBS can be 
accessed with a dial-in 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 Help-line: 919-541-5384
Accessible via Internet: TELNET ttnbbs.rtpnc.epa.gov
Off-line: Mondays from 8:00 AM to 12:00 Noon ET

    A user who has not called TTN previously will first be required to 
answer some basic informational questions for registration purposes. 
After completing the registration process, proceed through the 
following menu choices from the Top Menu to access information on this 
rulemaking.

 GATEWAY TO TTN TECHNICAL AREAS (Bulletin Boards)
 OMS--Mobile Sources Information
 Rulemaking and Reporting
<3> Fuels
<9> File Area #9 . . . Reformulated gasoline

    At this point, the system will list all available files in the 
chosen category in reverse chronological order with brief descriptions. 
These files are compressed (i.e., ZIPed). Today's notice can be 
identified by the following title: JP4STAY.ZIP. To download this 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 TTNBBS 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.
II. Administrative Stay

    The administrative stay of the provisions concerning JP-4 and 
certain changes in sweet crude oil are being undertaken pursuant to 
section 307(d)(7)(B) of the Clean Air Act, 42 U.S.C. 7607(d)(7)(B). 
That provision authorizes the Administrator to stay the effectiveness 
of a rule for three months if the grounds for an objection arose after 
the period for public comment and if the objection is of central 
relevance to the outcome of the rule. In a separate Notice of Proposed 
Rulemaking, which is published elsewhere in this issue of the Federal 
Register, EPA is proposing to extend the stay for the duration of a 
rulemaking proposing these changes to the criteria for a baseline 
adjustment.
    The grounds for an objection to the criteria for an individual 
baseline adjustment based on production of JP-4 jet fuel arose after 
the end of the public comment period for the Final Rule, ``Regulation 
of Fuels and Fuel Additives; Standards for Reformulated and 
Conventional Gasoline,'' (59 FR 7716, February 16, 1994) and before the 
time allowed for seeking judicial review. New information has since 
been submitted to EPA concerning the number of parties potentially 
affected by the criteria adopted, and the ability of parties with more 
than one refinery to aggregate baselines and thereby avoid the adverse 
impacts of a failure to obtain an individual baseline adjustment. This 
information became available to EPA after the final criteria were 
adopted by EPA, and are directly relevant to the basic rationale for 
those criteria. Because this information concerns the impact of the 
final criteria adopted by EPA, it was not available at the proposal 
stage.
    Similarly, the grounds for an objection to a lack of a baseline 
adjustment based on changes in the sulfur level of available crude oil 
arose after expiration of the period for public comment. It appears 
that the sulfur levels of crude have changed significantly since 1990 
for certain areas of the country. Until EPA issued its final rules in 
December 1993, and more information was obtained on the sulfur levels 
of crude that would be available for use in 1995 and later, refiners 
that have historically relied on the availability of low sulfur crude 
could not identify for EPA the full impact of the final conventional 
gasoline 

[[Page 40007]]
requirements on their ability to continue marketing conventional 
gasoline.
    Based on the above, and the Agency's interest in reconsidering 
these provisions (discussed in the separate Notice of Proposed 
Rulemaking published elsewhere in this issue of the Federal Register), 
EPA hereby issues a three-month administrative stay of the 
effectiveness of the following rules, with certain conditions keyed to 
the requirements proposed elsewhere in this issue of the Federal 
Register. The stay is structured such that it will only affect those 
persons who meet the proposed requirements for a baseline adjustment.
    First, 40 CFR 80.91(e)(7)(i)(A) through (C) is stayed for three 
months for all persons that meet the requirements of section 
80.91(e)(7) as proposed in a separate Notice of Proposed Rulemaking. In 
effect, persons who meet the proposed requirements would be able to 
receive a baseline adjustment under 80.91(e)(7) if they also met the 
requirements of 80.91(e)(7) (ii) and (iii). If a person does meet these 
conditions, then the Agency may approve a baseline adjustment under the 
terms of this stay, or under the terms of any stay issued through 
rulemaking.
    Second, 40 CFR 80.101(b)(1)(ii) is stayed for three months for all 
persons that meet the requirements proposed elsewhere in this issue of 
the Federal Register as of a new proposed section 80.91(e)(8), and that 
comply with an annual average sulfur level of 125% of the compliance 
baseline that would apply under the new proposed section 80.91(e)(8). 
In effect, the stay would only affect those persons who meet the 
proposed requirements for a baseline adjustment and who also meet the 
annual average sulfur level for conventional gasoline that would apply 
if they received a baseline adjustment under the related Notice of 
Proposed Rulemaking.
    The terms of the three-month administrative stay apply to all 
gasoline produced from January 1, 1995 through to the end of any such 
stay.

III. Environmental and Economic Impacts

    The environmental impacts of today's action are minimal, as 
discussed above. Additionally, economic impacts are generally 
beneficial to affected refiners due to the additional flexibility 
afforded by the stay in combination with the baseline adjustments in a 
related Notice of Proposed Rulemaking published elsewhere in this issue 
of the Federal Register. Minimal anti-competitive effects are expected. 
The environmental and economic impacts of the reformulated gasoline 
program are described in the Regulatory Impact Analysis supporting the 
December 1993 rule, which is available in Public Docket A-92-12 located 
at Room M-1500, Waterside Mall (ground floor), U.S. Environmental 
Protection Agency, 401 M Street S.W., Washington, D.C. 20460.

IV. Compliance With the Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980 requires federal 
agencies to examine the effects of their regulations and to identify 
any significant adverse impacts of those regulations on a substantial 
number of small entities. Pursuant to section 605(b) of the Regulatory 
Flexibility Act, 5 U.S.C. 605(b), the Administrator certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities. In fact, today's action is designed to 
promote successful implementation of the anti-dumping requirements of 
the reformulated gasoline program for all affected parties.

V. Administrative Designation

    Pursuant to Executive Order 12866, (58 FR 51735, October 4, 1993) 
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 entitlement, 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.
    Pursuant to the terms of Executive Order 12866, it has been 
determined that this final rulemaking is not a ``significant regulatory 
action''.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq., and 
implementing regulations, 5 CFR Part 1320, do not apply to this action 
as it does not involve the collection of information as defined 
therein.

VII. Unfunded Mandates Act

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in 
expenditure by State, local, and tribal governments, in the aggregate; 
or by the private sector, of $100 million or more. Under Section 205, 
EPA must select the most cost-effective and least burdensome 
alternative that achieves the objectives of the rule and is consistent 
with statutory requirements. Section 203 requires EPA to establish a 
plan for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that today's action does not include a Federal 
mandate that may result in estimated costs of $100 million or more to 
either State, local or tribal governments in the aggregate, or to the 
private sector. This action has the net effect of reducing burden of 
the reformulated gasoline program on regulated entities. Therefore, the 
requirements of the Unfunded Mandates Act do not apply to this action.

XIII. Statutory Authority

    The statutory authority for the administrative stay granted today 
is Section 307(d) 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

    Environmental protection, Air pollution control, Fuel additives, 
Gasoline, Motor vehicle pollution, Reporting and recordkeeping 
requirements.

    Dated: July 21, 1995.
Carol M. Browner,
Administrator.

    For the reasons set out 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 80.91 is amended by adding a new paragraph (e)(7)(iv) to 
read as follows: 

[[Page 40008]]



Sec. 80.91  Individual baseline determination.

* * * * *
    (e) * * *
    (7) * * *
    (iv) The provisions of Sec. 80.91(e)(7)(i)(A) through (C) are 
stayed until October 19, 1995, for all refiners which meet the 
following requirements:
    (A) Baseline adjustments may be allowed, upon petition and approval 
(per Sec. 80.93), if a refinery produced JP-4 jet fuel in 1990 and all 
of the following requirements are also met:
    (1) The type of refinery must be described as one of the following:
    (i) 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
    (ii) The refinery is one refinery of a multi-refinery refiner for 
which all of its refineries produced JP-4 in 1990 and each of the 
refineries also meets the requirements specified in paragraphs 
(e)(7)(iv)(A)(2) and (3); or
    (iii) The refinery is one refinery of a multi-refinery refiner for 
which not all of the refiner's refineries produced JP-4 in 1990.
    (2) No refinery of the refiner produces reformulated gasoline. If 
any refinery of the refiner produces reformulated gasoline at any time 
in a calendar year, the compliance baseline of all its refineries 
receiving a baseline adjustment per this paragraph (e)(7)(A) shall 
revert to each refinery's unadjusted baseline for that year and all 
subsequent years.
    (3) 1990 JP-4 to gasoline ratio.
    (i) For a refiner per paragraph (e)(7)(iv)(A)(1)(i) of this 
section, the ratio of its refinery's 1990 JP-4 production to its 1990 
gasoline production must equal or exceed 0.15.
    (ii) For a refiner per paragraph (e)(7)(iv)(A)(1)(ii) of this 
section, the ratio of each of its refinery's 1990 JP-4 production to 
its 1990 gasoline production must equal or exceed 0.15.
    (iii) For a refiner per paragraph (e)(7)(iv)(A)(1)(iii) of this 
section, the ratio of the refiner's 1990 JP-4 production to its 1990 
gasoline production must equal or exceed 0.15, when determined across 
all of its refineries.
    (B) [Reserved]
* * * * *
    3. Section 80.101 is amended by adding a new paragraph (b)(1)(v) to 
read as follows:


Sec. 80.101  Standards applicable to refiners and importers.

* * * * *
    (b) * * *
    (1) * * *
    (v) The provisions of Sec. 80.101 (b)(1)(ii) are stayed until 
October 19, 1995, for all refiners that meet the following 
requirements:
    (A)(1) Baseline adjustments may be allowed, upon petition and 
approval (per Sec. 80.93), if a refinery meets all of the following 
requirements:
    (i) The refinery does not produce reformulated gasoline. If the 
refinery produces reformulated gasoline at any time in a calendar year, 
its compliance baseline shall revert to its unadjusted baseline values 
for that year and all subsequent years;
    (ii) Has an unadjusted baseline sulfur value of not more than 50 
ppm;
    (iii) Is not aggregated with one or more other refineries per 
Sec. 80.91(f). If a refinery which received an adjustment per this 
paragraph (b)(1)(v) subsequently is included in an aggregate baseline, 
its compliance baseline shall revert to its unadjusted baseline values 
for that year and all subsequent years;
    (iv) Would require refinery improvements of at least $10 million or 
10 percent of the depreciated value of the refinery to comply with its 
unadjusted baseline;
    (v) Can show that it could not reasonably or economically obtain 
crude oil from an alternative source that would permit it to produce 
conventional gasoline which would comply with its unadjusted baseline;
    (vi) Has experienced at least a 25% increase in the average sulfur 
content of the crude oil used in the production of gasoline in the 
refinery since 1990, calculated as follows:
[GRAPHIC][TIFF OMITTED]TR04AU95.005

Where:

CSHI=highest annual average crude slate per paragraph 
(b)(1)(v)(A)(2)(ii) of this section
CS90=1990 annual average crude slate sulfur per paragraph 
(b)(1)(v)(A)(2)(i) of this section
CS%CHG=percent change in average sulfur content of crude slate; and

    (vii) Can show that gasoline sulfur changes are directly and solely 
attributable to the crude sulfur change, and not due to alterations in 
refinery operation nor choice of products.
    (2) The adjusted baseline sulfur value shall be calculated as 
follows:
    (i) Determine the average sulfur content (ppm) of the crude slate 
utilized in the production of gasoline in the refinery in 1990;
    (ii) Determine the highest crude sulfur level (ppm) of the crude 
slate utilized in the production of gasoline in the refinery in 1994; 
and
    (iii) Determine the adjusted baseline sulfur value as follows:
    [GRAPHIC][TIFF OMITTED]TR04AU95.006
    
Where:

ASULF=adjusted baseline sulfur value, ppm
BSULF=actual baseline sulfur value, ppm
CSHI=highest crude sulfur (ppm) per paragraph (b)(1)(v)(A)(2)(ii) of 
this section
CS90=1990 annual average crude slate sulfur per paragraph 
(b)(1)(v)(A)(2)(i) of this section

    (3) In no case can the adjusted baseline sulfur value determined 
per paragraph (b)(1)(v)(A)(2) of this section exceed the sulfur value 
specified in Sec. 80.91(c)(5)(iii).
    (4) All adjustments made pursuant to this paragraph (b)(1)(v) must 
be accompanied by:
    (i) Unadjusted and adjusted fuel parameters and emissions; and
    (ii) A narrative describing the situation, the types of 
calculations, and the reasoning supporting the types of calculations 
done to determine the adjusted values.
    (B) Annual average levels of sulfur shall not exceed 125% of the 
refiner's compliance baseline of sulfur, using the adjusted baseline 
determined under paragraph (b)(1)(v)(A) of this section.
* * * * *
[FR Doc. 95-18992 Filed 8-3-95; 8:45 am]
BILLING CODE 6560-50-P