[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