[Federal Register Volume 61, Number 73 (Monday, April 15, 1996)]
[Rules and Regulations]
[Pages 16391-16396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9176]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[FRL-5457-5]


Approval of Colorado's Petition To Relax the Federal Gasoline 
Reid Vapor Pressure Volatility Standard for 1996 and 1997

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rulemaking.

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[[Page 16392]]

SUMMARY: The Environmental Protection Agency (``EPA'' or the 
``Agency'') is issuing as a direct final rule its limited approval of 
the State of Colorado's petition to relax the Reid Vapor Pressure (RVP) 
standard that applies to gasoline introduced into commerce in the 
Denver-Boulder ozone nonattainment area from June 1 to September 15. 
The standard is to be relaxed from 7.8 pounds per square inch (psi) to 
9.0 psi for the years 1996 and 1997. Pursuant to the Clean Air Act 
Amendments of 1990, Federal RVP standards were promulgated by EPA on 
June 11, 1990 and revised on December 12, 1991. 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 previous 
relaxations of the RVP standard. Prior to today's action, EPA has 
approved relaxations for the past four years, from 1992 through 1995.
    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 document.

DATES: This action will be effective on May 30, 1996 unless EPA 
receives adverse or critical comments by May 15, 1996. If EPA receives 
adverse comments by that date, EPA will withdraw this action by 
publishing a document in the Federal Register. In a separate action 
published today, EPA is concurrently proposing approval of Colorado's 
petition to relax the Reid Vapor Pressure standard. All correspondence 
should be directed to the addresses shown below.

ADDRESSES: Materials relevant to this rulemaking have been placed in 
Docket A-96-10 by EPA. The docket is located at the Docket Office of 
the U.S. Environmental Protection Agency, 401 M Street SW., Washington, 
DC 20460, Room M-1500 in Waterside Mall and may be inspected from 8:30 
a.m. to 5:30 p.m., Monday through Friday. A reasonable fee may be 
charged for copying docket material.
    Comments should be submitted (in duplicate if possible) to the Air 
Docket Section at the above address. A copy should also be sent to the 
EPA contact person listed below at the following address: U.S. 
Environmental Protection Agency, Office of Air and Radiation, 401 M 
Street SW. (6406-J), Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Marilyn Winstead McCall of the Fuels 
and Energy Division at 202-233-9029 at the above 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, 1990 3 and were to go 4 into 
effect May 1, 1992.4 5
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    \1\ 52 FR 31274 (August 16, 1987).
    \2\ 54 FR 11868 (March 22, 1989).
    \3\ 55 FR 23658 (June 11, 1990).
    \4\ As described in greater detail below, EPA re-promulgated the 
Phase II regulations to incorporate changes in the federal RVP 
program as directed by the Act.
    \5\ For further detail, see the previous notice relaxing the 
Colorado RVP standard. 59 FR 15629 (April 4, 1994).
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    The Clean Air Act Amendments of 1990 (``CAA'' or ``the Act''), 
however, established new requirements for the fuel volatility program. 
Section 211(h) of the Act 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 generally achieve 
comparable evaporative emissions reductions (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.'' The Act also allows EPA to impose an RVP standard lower than 
9.0 psi in any former ozone nonattainment area that is redesignated to 
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.6 In this document, 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. This 
would prohibit the sale of gasoline with a RVP above 9.0 psi during the 
summer ozone season in all areas designated attainment for ozone, 
beginning in 1992. For areas designated as nonattainment, EPA proposed 
to retain the original Phase II standards published on June 11, 1990. 
On December 12, 1991, EPA finalized these modifications.7
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    \6\ 56 FR 24242 (May 29, 1991).
    \7\ 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 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 9.0 psi in May 
and 7.8 psi from June 1 to September 15. The standard applicable in 
other areas of Colorado was 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. In that document, EPA designated the Denver-Boulder 
nonattainment area to be a ``transitional area'' as determined under 
section 185A of the Act. 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 controls 
8 and reiterated in the proposed change to the volatility 
standards published on May 29, 1991,9 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,

[[Page 16393]]

within the statutory limits. The Governor of a state may petition EPA 
to set a less stringent volatility standard for some month or months. 
The petition must demonstrate the existence of a particular local 
economic impact that makes such changes appropriate and must 
demonstrate that sufficient alternative programs are available to 
achieve attainment and maintenance of the ozone National Ambient Air 
Quality Standards (NAAQS).
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    \8\ 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).
    \9\ 56 FR 24242 (May 29, 1991).
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II. Previous EPA Approvals of Colorado's Petitions

A. Petition for 1992 and 1993

    On October 16, 1991, Governor Roy Romer requested that EPA amend 
the federal RVP standards for the Denver-Boulder ozone nonattainment 
area to relax the 7.8 psi standard to 9.0 psi for 1992 and 1993. The 
Governor further requested that the 7.8 psi standard take effect 
beginning in June 1994, unless the State of Colorado specifically 
requested via the Colorado Ozone Maintenance State Implementation (SIP) 
plan that the 9.0 psi standard be retained.
    On May 12, 1992, EPA proposed approval of Colorado's petition to 
relax until 1994 the gasoline volatility standard for the Denver-
Boulder nonattainment area to 9.0 psi. EPA found the request justified 
based on the petition itself, the evidence 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 a demonstration by 
Colorado 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 assured EPA 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 appropriate. EPA finalized the relaxation of the standard 
on April 30, 1993. (For further details, see 53 FR 26067, April 30, 
1993.)

B. Petition for 1994 and 1995

    On September 15, 1993, Governor Roy Romer again requested that EPA 
amend the federal RVP standard for the Denver-Boulder nonattainment 
area to extend the relaxation of the RVP standard of 7.8 psi to 9.0 psi 
to cover 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 requested, via the Colorado Ozone 
Maintenance SIP, that the 9.0 psi standard be retained.
    As with the previous petition, the petition and available evidence 
indicated that retention of the 7.8 psi standard would impose 
significant costs on consumers and industry and that the 7.8 psi 
standard was 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.
    Because of the area's classification as transitional, EPA was 
required to determine 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.10 In its 1993 
petition, the Colorado Air Pollution Control Division (APCD) informed 
EPA that the ozone maintenance plan had been delayed due to a lack of 
staff resources, but that Colorado was committed to developing a 
maintenance plan by early 1995.
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    \10\ On 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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    Based on the foregoing, EPA issued a direct final rule on April 4, 
1994, relaxing the federal RVP standard from 7.8 psi to 9.0 psi for the 
years 1994 and 1995. For 1996, the standard would return to 7.8 psi. 
(For further details about this action, see 59 FR 15629, April 4, 
1994.)

III. Discussion of Colorado's Petition to Relax the RVP Standard for 
1996 and 1997

    On December 22, 1995, Govenor Roy Romer sent a letter to William 
Yellowtail, Administrator of EPA Region VIII, requesting that EPA amend 
the federal RVP standard for the Denver-Boulder nonattainment area to 
permanently extend the relaxation of the RVP standard of 7.8 psi to 9.0 
psi. Governor Romer specifically requested EPA to retain the 9.0 psi 
standard for the 1996 and all future summers, unless the standard is 
modified by the Colorado Ozone Maintenance State Implementation Plan 
(SIP). Colorado is still in the process of redesignation from 
nonattainment status for ozone to attainment status.
    Governor Romer's request results from specific resolutions signed 
by the Chairman of the Colorado Air Quality Control Commission on 
September 22, 1995, which endorsed a permanent relaxation of the RVP 
standard based upon testimony provided at a public hearing on August 
17, 1995, and after consideration of the environmental and economic 
impact of the 7.8 psi federal standard. Documents pertaining to this 
hearing are available in the docket for this rulemaking. In forwarding 
this request to EPA, Governor Romer is following procedures stated in 
the preamble for the Phase II volatility rule. 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.

A. Local Economic and Environmental Factors

    The petition and available evidence submitted indicate that 
retention of the 7.8 psi standard would impose significant costs 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. Documentation submitted by Colorado indicates that the costs 
of implementing a 7.8 psi RVP standard (from the 9.0 psi standard which 
has been in place for the past four years) would cost the consumer 
about 1.1 cents more per gallon of gasoline and overall, would cost 
over $3,000,000.
    In a letter of June 20, 1995, the local refinery industry states 
that in the 1993 hearing before the Colorado Air Quality Control 
Commission, they testified that imposing a 7.8 psi standard at that 
time in the Denver-Boulder area would cause many refiners to make 
irreversible capital improvements. They stated that these improvements 
may not be needed if the maintenance SIP indicates 7.8 psi gasoline is 
not needed to maintain ozone compliance. In addition, EPA notes that 
because the rest of the Colorado market requires a 9.0 psi standard, 
any refinery changes made in

[[Page 16394]]

order to comply with the 7.8 psi standard would be in response only to 
the market demand in the Denver-Boulder area. In the June 20 letter, 
representatives of the local refinery industry state that the cost 
situation has not changed since 1993. In testimony presented at an 
August 17, 1995 hearing before the Colorado Air quality Control 
Commission, the Air Pollution Control Board (APCD) of the Colorado 
Department of Health stated that these increased refinery costs would 
vary among refiners.
    Minutes and other documentation from the hearing held before the 
Colorado Air Quality Control Commission on August 17, 1995, by the Air 
Pollution Control Board (APCD) of the Colorado Department of Health 
indicate that the APCD supports a relaxation of the RVP standard. There 
have been no monitored violations of the ozone NAAQS since 1986. The 
APCD noted that the volatility standard for the Denver-Boulder 
nonattainment area from 1992 through 1995 was 9.0 psi and no violations 
of the standard were recorded. (However, there were single exceedances 
of the ozone NAAQS at two monitoring stations during 1993 and one 
exceedance at another in 1995.) The APCD also presented modelling data 
showing that the mobile source VOC inventory should decrease over the 
relevant period, even with projected increases in vehicle miles 
travelled (VMT). The APCD concluded that the Denver-Boulder area would 
be able to continue attainment of the ozone standard for 1996 and 1997 
with 9.0 psi RVP gasoline.

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 1983.11 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. 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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    \11\ 48 FR 55284 (December 12, 1983).
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C. Maintenance Plan

    According to Colorado's 1991 petition, 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 EPA to redesignate 
the area as having attained the ozone standard.12 At the hearing 
on the 1993 petition, the Commission raised questions regarding the 
inability of the APCD to complete the ozone maintenance plan on time. 
At that 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. The APCD then concluded that with a two-year extension 
of the relaxed RVP standard, a maintenance plan could be developed and 
submitted to EPA for approval in early 1995.
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    \12\ An 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.
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    While there were additional delays, the APCD has now developed a 
maintenance plan which has been proposed for public hearing by the 
Commission. The public hearing date and date of consideration by the 
Commission is scheduled for March 21, 1996. The Commission is expected 
to adopt the maintenance plan on that date and request that Governor 
Romer forward a redesignation request, including the maintenance plan, 
to EPA for approval thereafter. A copy of the maintenance plan as 
proposed for public hearing is available in the docket for this 
rulemaking.

IV. EPA's Final Action

A. Relaxation of Colorado's RVP Standard for 1996 and 1997

    EPA is approving as a direct final rule the State of Colorado's 
request to relax the federal volatility standard for the Denver-Boulder 
nonattainment area from the current standard of 7.8 psi to 9.0 psi. 
Colorado requested relaxation of the standard for the 1996 and all 
future summers. EPA is only approving this relaxation, however, for two 
years: 1996 and 1997. EPA cannot approve a permanent change in the RVP 
standard until Colorado demonstrates that it can maintain compliance 
with the ozone standard. Colorado has developed a maintenance plan 
which, with its ozone redesignation request, the State expects to 
submit to EPA for approval in the near future. 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 
Colorado's petition and supporting evidence, EPA believes that the 
requested relaxation of the standard is justified for a limited two-
year time period.
    The petition and available evidence indicate that retention of the 
7.8 psi standard would impose significant costs 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. 
Colorado has submitted testimony regarding the costs of implementing a 
7.8 psi RVP standard which states that a savings of over $3,000,000 
would be realized in the Denver-Boulder area during the summer ozone 
season based on a savings of approximately 1.1 cents per gallon. This 
savings is reasonably close to the savings EPA predicted in the cost 
analysis it performed on Colorado's 1991 petition, and circumstances 
have not changed significantly in the interim.13 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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    \13\ A 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). This analysis estimated cost 
savings of $3,500,000 to $4,000,000 in the Denver-Boulder area 
during the ozone season.
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    Moreover, EPA agrees with Colorado that the Denver-Boulder area 
will not need a 7.8 psi standard to comply with the ozone NAAQS in the 
next two years. The area has not violated the standard since 1986. 
Since this time, summertime gasoline volatility has been reduced 
significantly through the implementation of Phase I and Phase II of the 
federal RVP standards. Moreover, ongoing vehicle fleet turnover, as 
well as several new requirements of the CAA (such as tighter tailpipe 
standards, longer useful life definitions, on-board

[[Page 16395]]

diagnostic and refueling equipment, and enhanced inspection and 
maintenance requirements) will continue to help control overall mobile 
source emissions of VOCs.
    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 
existing emission controls are sufficient to provide for maintenance of 
the ozone NAAQS over the long term. Moreover, the area did experience 
single exceedances during the 1993 and 1995 ozone seasons at three 
monitoring stations. Therefore, the long term maintenance of the 
standard in the Denver-Boulder area is in question. Until Colorado 
demonstrates that it can maintain compliance with the ozone NAAQS over 
the long term, as should be shown in its upcoming maintenance plan, EPA 
could not approve a permanent change in the RVP standard for the 
Denver-Boulder area.
    As previously stated, Colorado is developing a maintenance plan for 
the Denver-Boulder area, which should be completed during the two year 
period of this relaxation of the RVP standard. 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 
modelling 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 and 
the redesignation of the Denver-Boulder area to attainment.
    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 1998 
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 extends 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 45 days from the date of this Federal 
Register document, unless adverse or critical comments are received 
within 30 days of today's document. If EPA receives such comments, this 
action will be withdrawn by publishing a subsequent document in the 
Federal Register. All public comments in this regard received within 
the 30-day comment period will then be addressed in a subsequent final 
rule based on EPA's proposal to approve Colorado's petition published 
elsewhere in today's Federal Register. No second comment period on this 
action will be instituted. If no such comments are received, this 
action will be effective May 30, 1996.

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 for 1996 and 1997.

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, EPA must prepare a regulatory flexibility analysis assessing the 
impact of any proposed or final 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 12886,14 the Agency must determine 
whether a 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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    \14\ 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.
    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), EPA must prepare a budgetary impact 
statement to accompany any proposed or final rule that includes a 
federal mandate that may result in estimated costs to state, local, or 
tribal governments in the aggregate, or to the private sector, of $100 
million or more. Under Section

[[Page 16396]]

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 the regulatory relaxation in this action 
does not include a federal mandate that may result in estimated costs 
of $100 million or more to those entities mentioned above.
    The statutory authority for the action in this action today is 
granted to EPA by Sections 211 and 301(a) of the Clean Air Act as 
amended (42 U.S.C. 7545 and 7601(a)).

List of Subjects in 40 CFR Part 80

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

    Dated: April 4, 1996.
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. In Sec. 80.27 the table in paragraph (a)(2) introductory text is 
amended by revising the entry for Colorado to read as follows:


Sec. 80.27  Controls and prohibitions on gasoline volatility.

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

                               Applicable Standards \1\ 1992 and Subsequent Years                               
----------------------------------------------------------------------------------------------------------------
                     State                           May          June         July        August        Sept   
----------------------------------------------------------------------------------------------------------------
                                                                                                                
      *                   *                   *                   *                   *                   *     
Colorado \2\...................................          9.0          7.8          7.8          7.8          7.8
                                                                                                                
      *                   *                   *                   *                   *                   *     
                                                  *                                                             
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\1\ Standards are expressed in pounds per square inch (psi).                                                    
\2\ The standard for 1992 through 1997 in the Denver-Boulder nonattainment area will be 9.0 for June 1 through  
  September 15.                                                                                                 

* * * * *
[FR Doc. 96-9176 Filed 4-12-96; 8:45 am]
BILLING CODE 6560-50-P