[Federal Register Volume 61, Number 201 (Wednesday, October 16, 1996)]
[Rules and Regulations]
[Pages 53854-53860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26449]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR PART 80

[FRL-5636-2]


Petition by Guam for Exemption From Anti-Dumping and Detergent 
Additization Requirements for Conventional Gasoline

AGENCY: Environmental Protection Agency.

ACTION: Notice of direct final decision.

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SUMMARY: The Environmental Protection Agency (``EPA'' or ``the 
Agency'') is granting a petition by the Territory of Guam for exemption 
from the anti-dumping requirements for gasoline sold in the United 
States after January 1, 1995. This action is being taken because of 
Guam's unique geographic location and economic factors. EPA is not 
granting Guam's petition for exemption from the fuel detergent 
additization requirements that all gasoline sold in the United States 
after January 1, 1995 contain fuel detergents. If the gasoline anti-
dumping exemption were not granted, Guam would be required to import 
gasoline from a supplier meeting the anti-dumping requirements adding a 
considerable expense to gasoline purchased by the Guam consumer. Guam 
is in full attainment with the national ambient air quality standard 
for ozone. This action is not expected to cause harmful environmental 
effects to the citizens of Guam.
    Today's action is being taken as a direct final decision because 
EPA believes that this final decision is noncontroversial. The effects 
of this decision are limited to the Territory of Guam.

DATES: This action will be effective on December 16, 1996 document, 
unless EPA receives adverse or critical comments by November 15, 1996. 
If the Agency receives adverse or critical comments, EPA will withdraw 
this action by publishing a timely notice in the Federal Register. In a 
separate action published today, EPA is concurrently proposing approval 
of the

[[Page 53855]]

gasoline anti-dumping exemption portion of Guam's petition for reasons 
discussed in this document. All correspondence should be directed to 
the addresses shown below.

ADDRESSES: Any persons wishing to submit comments should submit them 
(in duplicate, if possible) to the two dockets listed below, with a 
copy forwarded to Marilyn Winstead McCall, U. S. Environmental 
Protection Agency, Fuels and Energy Division, 401 M Street, SW., (Mail 
Code: 6406J), Washington, DC. 20460.
    Materials relevant to this petition are available for inspection in 
public docket A-95-19 at the Air Docket Office of the EPA, room M-1500, 
401 M Street, SW., Washington, DC 20460, (202) 260-7548, between the 
hours of 8:00 a.m. to 5:30 p.m. Monday through Friday. A duplicate 
public docket, A-GU-95, has been established at U. S. EPA Region IX, 75 
Hawthorne Street, (Mail code: A-2-1), 17th Floor, San Francisco, Ca 
94105, (415) 744-1225, and is available between the hours of 8:30 a.m. 
to noon, and 1 p.m. to 5 p.m., Monday through Friday. As provided in 40 
CFR part 2, a reasonable fee may be charged for copying services.

FOR FURTHER INFORMATION CONTACT: Marilyn Winstead McCall of the Fuels 
and Energy Division at (202) 233-9029.

SUPPLEMENTARY INFORMATION:

I. Background

A. Regulated Entities

    Entities potentially affected by this action are those involved 
with the production, distribution, and sale of conventional gasoline 
and gasoline detergent additives for gasoline used in Guam. Regulated 
categories and entities include:

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         Category                  Examples of regulated entities       
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Industry.................  Detergent manufacturers, detergent           
                            transporters, gasoline refiners and         
                            importers, gasoline terminals, detergent    
                            blenders, gasoline truckers, and gasoline   
                            retailers and wholesale purchaser-consumers.
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This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be affected by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be affected by this decision. Other types of entities 
not listed could also be affected. To determine whether your 
organization is affected by this decision, you should carefully examine 
the applicability requirements in Sec. 80.90, Sec. 80.125, and 
Sec. 80.161, Subparts E, F, and G respectively of title 40, of the Code 
of Federal Regulations (CFR). If you have any questions regarding the 
applicability of this action to a particular entity, consult the person 
listed in the preceding
FOR FURTHER INFORMATION CONTACT section.
    The Governor of Guam petitioned the Agency on December 30, 1994 
seeking exemption from certain federal regulations promulgated under 
the Clean Air Act (``CAA'' of ``Act''). On December 15, 1993, EPA 
promulgated regulations on the production and sale of gasoline that is 
not required to be reformulated, or ``conventional'' gasoline. For 
conventional gasoline, the gasoline produced by a refiner or importer 
is required to cause no more motor vehicle emissions than gasoline 
produced by that refiner or importer in 1990. This is commonly called 
the ``anti-dumping'' program. On October 14, 1994, and July 5, 1996, 
EPA promulgated regulations requiring that all gasoline contain a fuel 
detergent to control deposits. The fuel detergent additization 
regulations require that all gasoline sold or dispensed in the United 
States contain additives to prevent accumulation of deposits in vehicle 
engines or fuel supply systems, and that volumetric additive 
reconciliation records and product transfer documents be maintained by 
certain persons who add the required detergent to the gasoline and 
transfer the product to other persons. Since Guam is in attainment for 
ozone, it is not required to offer reformulated gasoline. However, 
providers of gasoline such as those listed in the table above in Guam 
are required to provide conventional gasoline that meets the anti-
dumping provisions and the detergent additization requirements.

B. Statutory Provisions

    Section 211(k) of the Clean Air Act (``CAA'' or ``the Act'') 
requires that gasoline be reformulated to reduce motor vehicle 
emissions of toxic and tropospheric ozone-forming compounds, and that 
this reformulated gasoline be sold in the nine largest metropolitan 
areas with the most severe summertime ozone levels and other ozone 
nonattainment areas that opt into the program. Section 211(k)(8) 
prohibits conventional gasoline (gasoline that has not been 
``reformulated'') sold in the rest of the country from becoming any 
more polluting than it was in 1990. This requirement ensures that 
refiners do not ``dump'' fuel components that are restricted in 
reformulated gasoline and that cause environmentally harmful emissions 
from use of conventional gasoline. This requirement is referred to as 
the ``anti-dumping'' standards for conventional gasoline.1
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    \1\ 40 CFR Part 80, Subparts E and F.
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    Section 211(l) states that ``no person may sell or dispense to an 
ultimate consumer in the United States, and no refiner or marketer may 
directly or indirectly sell or dispense to persons who sell or dispense 
to ultimate consumers in the United States any gasoline which does not 
contain additives to prevent the accumulation of deposits in engines or 
fuel supply systems.'' The regulations implementing this requirement 
are commonly referred to as the ``gasoline deposit control'' or 
``detergent additization'' regulation. The Territory of Guam is defined 
as a state in these regulations.2
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    \2\ 40 CFR Part 80, Subparts A and G.
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    Section 325 of the Act provides that, upon petition by the Governor 
of Guam, American Samoa, the Virgin Islands, or the Commonwealth of the 
Northern Mariana Islands, the Administrator may exempt any person or 
source in such territory from various requirements of the Act. It 
states that ``such exemption may be granted if the Administrator finds 
that compliance with such requirements is not feasible or is 
unreasonable due to unique geographical, meteorological, or economic 
factors of such territory, or such other local factors as the 
Administrator deems significant.''
    EPA previously granted Guam an exemption from the sulfur content 
requirements for motor vehicle diesel fuels as specified in sections 
211(i) and (g) of the Act on May 7, 1993. That exemption was effective 
November 21, 1993. A more in-depth description of Guam's geographical, 
meteorological and economic characteristics are discussed in the notice 
of direct final decision granting that petition for exemption (see 58 
FR 48968, September 21, 1993).

II. Summary of Guam's Petition

    On December 30, 1994, the Honorable Joseph F. Ada, Governor of the 
Territory

[[Page 53856]]

of Guam, petitioned the Agency for an exemption from the requirements 
of regulations promulgated at 40 CFR 80 that require conventional 
gasoline meet certain anti-dumping specifications and that this 
gasoline be subject to the detergent additization requirements of those 
regulations. Specifically, the petition requests exemption from 
Subparts E, F, and G of 40 CFR Part 80. Subparts E and F apply to 
requirements for refiners and importers to prevent conventional 
gasoline sold in the United States from becoming any more polluting 
than it was in 1990. Subpart G requires the use of deposit control 
(detergent) additives in all gasoline used in the United States 
beginning January 1, 1995.

A. Guam's Geographical Characteristics

    Guam is the westernmost U.S. territory. Guam is the southernmost 
island in the Mariana Archipelago. It is approximately 28 miles long 
and its width varies from 4 to 8.5 miles for a total land area of 
approximately 1209 square miles. Agana, the capital city, is 
approximately 3700 miles west-southwest of Honolulu, 6000 miles 
southwest of San Francisco, 1500 miles east of Manila, 1550 miles south 
of Tokyo and 3100 miles north-northeast of Sydney.
    The island of Guam is composed of two distinct geologic areas of 
about equal size. The northern region is a high coralline limestone 
plateau rising to 850 feet above sea level. The southern region is of 
volcanic origin and mountainous, with elevations ranging from 700 to 
1300 feet. The northern and southern regions are separated by a narrow 
low lying area.

B. Guam's Meteorological Characteristics

    Guam has a tropical climate. According to data compiled by the 
National Oceanic and Atmospheric Administration, (NOAA) the average 
rainfall is 98 inches. Daytime temperatures are typically around 85 
degrees F and nighttime temperatures range from 65 to 75 degrees F. 
Relative humidity is typically from 75 to 90%. The island is subject to 
consistent strong winds. Most of the time, the island is swept by trade 
winds blowing from the east. Normal wind speeds are highest during the 
dry season, with sustained wind speeds of 15 to 25 miles per hour. Data 
collected by NOAA show a mean wind speed of 7.4 miles per hour.
    The dominance of the easterly trade winds is interrupted during the 
rainy season when storm systems from the east bring heavy showers and 
torrential rain. Typhoons with winds of more than 70 miles an hour pass 
within 60 miles of Guam once a year on average. ``Super'' typhoons with 
winds in excess of 150 miles per hour occur roughly every 10 to 12 
years.

C. Economic Factors in Guam

    Guam has no known oil resources and no operating refinery. All 
motor vehicle gasoline supplied to the island of Guam is imported. 
Transportation costs dictate that the markets supplying gasoline to 
Guam be limited to the Far East. Refineries in Singapore and Australia 
have historically supplied Guam's gasoline.
    Guam is less affluent than any of the 50 states. Its per capita 
income in 1990 was $9,928 compared to the national average of 
$14,420.\3\ Due to relatively high transportation costs, retail 
gasoline prices are already significantly higher in Guam than in the 
continental United States, averaging in 1994 at approximately $1.50 per 
gallon as opposed to an estimated national average of approximately 
$1.17 \4\ per gallon. Information received after the petition was 
submitted to the Agency indicates that Guam's economic outlook is not 
improving, as the Navy Repair Facility and the Navy Fleet and 
Industrial Supply Center are slated to be closed (and the three other 
Navy facilities will be realigned), which will mean the loss of 
thousands of jobs.\5\
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    \3\ Guam Department of Commerce.
    \4\ ``The Oil Daily,'' May 9, 1995.
    \5\ Letter dated July 21, 1995, from Eric Murdock, Hunton & 
Williams, Washington, D.C., supporting Guam's petition.
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    It is estimated that the total fleet of gasoline-powered cars is 
between 100,000 to 140,000. Generally, car ownership is estimated at 
greater than one vehicle per person on Guam. Cars do not wear well in 
the island's harsh corrosive environment, so the average age of the 
fleet is lower than in the mainland United States.

III. Clarification of Anti-Dumping and Detergent Additization 
Requirements

    Subpart E--Anti-Dumping Requirements--Section 211(k)(8) requires 
that average per gallon emissions of VOC, CO, NOX, and toxics due 
to conventional gasoline produced by a refiner or importer not increase 
over 1990 levels, for each refiner or importer. Each of the four 
pollutants is to be considered separately, except that potential 
increases in NOX emissions due to oxygenate use may be offset by 
equivalent or greater reductions in the other pollutants. Since VOC and 
CO emission increases are expected to be controlled through other 
regulatory programs, the anti-dumping provisions are limited to 
regulating emissions of toxics and NOX emissions.
    Pursuant to Section 211(k)(8) of the Act, EPA adopted the 
regulations in Subpart E to address motor vehicle emissions of exhaust 
benzene, total exhaust toxics and NOX emissions from conventional 
gasoline use. Under a simple emissions model, applicable from January 
1, 1995 to January 1, 1998, a limit is set for sulfur, olefins and T90 
as well as exhaust benzene. A more complex emissions model is required 
beginning January 1, 1998, with limits set on exhaust toxics and 
NOX. All the limits are set as annual averages.
    Compliance is measured by comparing emissions of a refiner's or 
importer's conventional gasoline against those of a baseline gasoline--
either a baseline based on the quality of a refiner's 1990 gasoline or 
on a statutory baseline specified by the Clean Air Act. Subparts E and 
F require a refiner or importer that establishes a baseline to use an 
independent auditor to verify its baseline parameters. EPA requires 
each refiner or importer to maintain records and to report to EPA 
certain information pertaining to production of conventional gasoline 
by February 1996, and every subsequent year. Guam 's petition states 
that there is insufficient data available to importers of Guam's 
gasoline regarding the quality of gasoline produced in 1990 to 
establish an individual baseline for these importers. Therefore, if 
this exemption were not granted, importers of gasoline to Guam would be 
required to measure compliance against the statutory baseline for the 
regulated conventional gasoline qualities.
    Subpart G--Detergent Gasoline--Section 211(1) requires that, 
beginning January 1, 1995, no person may sell or dispense to an 
ultimate consumer in the United States, and no refiner or marketer may 
sell or dispense to persons who sell or dispense to ultimate consumers 
in the United States any gasoline which does not contain additives to 
prevent the accumulation of deposits in engines or fuel supply systems. 
EPA promulgated a rule on October 14, 1994, under which all gasoline 
(reformulated and conventional) sold or transferred to gasoline retail 
outlets or wholesale purchaser consumer facilities and all gasoline 
sold or transferred to ultimate consumers must be additized with a fuel 
detergent additive registered with the EPA, starting January 1, 1995. 
On July 5, 1996, EPA published a supplemental rule requiring testing 
and certification of the fuel detergents (61 FR 35310).
    Fuel deposits in motor vehicle engines and fuel supply systems and

[[Page 53857]]

their impacts on vehicle performance have been studied for many years. 
Fuel injector and intake valve deposits have been shown to have 
significant adverse effects on drivability, exhaust emissions and, in 
some cases, on fuel economy. Deposits in fuel injectors may undercut 
the effectiveness of engines' oxygen sensors in ensuring the best fuel/
air ratio to control emissions. Carburetor deposits can cause improper 
enrichment of the fuel/air mixture, which can result in rough idling, 
stalling, poor acceleration, reduced fuel economy and higher emissions 
of hydrocarbons, carbon monoxide, and in some cases nitrogen oxides. 
The mechanisms by which intake valve deposits increase emissions are 
less clear. Adsorption and desorption of fuel on the intake valves can 
lead to improper fuel/air ratios across the cylinders, thereby 
interfering with the ability of the oxygen sensor to regulate proper 
mixture composition. Intake valve deposits might also increase 
emissions by interfering with the proper preparation and delivery of 
the fuel air mixture resulting in combustion inefficiency.
    Under the current additization program, the detergent additive must 
be registered under 40 CFR Part 79, and must be added in concentration 
equal to or exceeding the level specified by the additive manufacturer 
as being effective in preventing deposits. Each facility where 
detergent additization is performed is required to create and maintain 
volumetric additive reconciliation (VAR) records to demonstrate that 
the gasoline has been additized to the proper concentration. Product 
transfer documentation (PTD) is required whenever title or custody to 
any gasoline or detergent is transferred, other than when additized 
gasoline is sold or dispensed at a retail outlet or wholesale 
purchaser-consumer facility to the consumer. Each gasoline refiner, 
importer, carrier, distributor, oxygenate blender or detergent blender 
who owns, leases, operates, controls or supervises the facility 
(including a truck or individual storage tank) is subject to these 
requirements.

IV. Rationale for Exemption

A. Rationale for Exemption from Anti-Dumping Requirements

    Singapore refineries differ from the configurations of typical 
mainland U.S. refineries in that they do not have catalytic cracking 
capacity (that is, the Singapore refineries do not employ fluid 
catalytic cracking or ``FCC'' units). As a result of these differences 
in plant configuration, the properties of the gasoline produced by the 
Singapore refineries would be expected to be quite different in some 
respects from the properties of gasoline produced by the typical 
mainland U.S. refinery (i.e., ``baseline'' conventional gasoline). 
Specifically, gasoline produced at the Singapore refineries would 
typically have lower concentrations of sulfur and olefins and 
relatively higher concentrations of benzene and aromatics.
    As a result of these differences, the gasoline produced at the 
Singapore refineries cannot consistently satisfy the anti-dumping 
requirements when compared to statutory baseline gasoline, particularly 
for the winter season. This is not the result of any ``dumping'' of 
components restricted in reformulated gasoline; it is a reflection of 
differences in the quality of the gasoline produced in Singapore 
compared to that typically produced in the mainland U.S.
    None of the importers has been able to identify any refineries in 
the Pacific Rim that are producing, or are readily able to produce, 
gasoline that can consistently satisfy the anti-dumping requirements. 
As a result, it is likely that the companies would be forced to import 
gasoline from mainland refineries at substantial cost if this exemption 
were not granted.
    The granting of Guam's petition for exemption could raise the 
possibility that a given importer's gasoline might, in a given 
compliance period, produce more motor vehicle emissions than produced 
by 1990 statutory baseline gasoline.
    Guam is in full attainment with both the primary and secondary 
national ambient air quality standards (NAAQS) for ozone.
    Because of Guam's unique geographic remoteness, there is no risk 
that conventional gasoline imported through Guam would be sold in any 
area in which anti-dumping restrictions apply.
    The three major importers of gasoline to Guam have indicated that 
the gasoline normally imported from the Singapore refineries (where 
virtually all gasoline supplied to Guam is produced 6) is likely 
to contain benzene and aromatic concentrations that exceed the 
statutory baseline levels. As previously stated, the anti-dumping 
requirements could force the importers of gasoline to Guam to obtain 
product from distant refineries, adding substantially to the 
transportation costs, and resulting in great increases in the retail 
price of gasoline in Guam. Information submitted subsequent to the 
petition states that these costs could run approximately $4,500,000 per 
year.7 According to estimations by current importers of gasoline 
to the island, transporting gasoline from western refineries (those 
from the mainland or Hawaii, most likely) would add at least 10 cents 
per gallon to the retail price of gasoline on the island, in addition 
to other costs associated with the requirements of the anti-dumping and 
detergent additization regulations.
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    \6\ Letter dated September 28, 1995, from Eric Murdock, Hunton & 
Williams, Washington, D.C., supporting Guam's petition.
    \7\ Letter dated September 28, 1995 from Eric Murdock, Hunton & 
Williams, Washington, D.C., supporting Guam's petition.
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    Approximately 40,000,000 gallons of gasoline are imported annually 
into Guam. If Guam is not granted an exemption from the anti-dumping 
requirements, EPA calculates that gasoline, meeting the statutory 
baseline, could result in VOC control during a compliance period of 
approximately 14 tons of total toxic emissions in Guam as compared to 
the fuel quality in Guam in 1994. A simple cost effectiveness analysis 
indicates that the cost (based on an annual cost, as stated in Guam's 
petition, of approximately $4,500,000) of reducing the total toxic 
emissions would be over $300,000 per ton. In EPA's Regulatory Impact 
Analysis for Reformulated Gasoline,8 the Agency estimated that 
reducing total toxic emissions from combustion and use of gasoline 
under the reformulated gasoline program would cost approximately 
$55,000 per ton. Therefore, the cost effectiveness of using another 
gasoline supplier to reduce air toxics emissions in Guam is several 
times higher than EPA's estimate for nationwide control of toxics in 
the federal reformulated gasoline program.
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    \8\ See Regulatory Impact Anaylsis for Reformulated Gasoline, 
EPA Air Dockets A-92-01 and A-92-12, 401 M Street. S.W., Washington, 
D.C. 20460.
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    Guam also does not have the proper facilities to perform the 
necessary analyses on conventional gasoline which are required under 
the anti-dumping rules. If this exemption were not granted, any samples 
would have to be shipped to laboratories in Japan or Hawaii. This 
process would entail a significant cost and could precipitate price 
increases which would eventually be passed on to the Guam consumer.
    Guam's petition states that overall compliance with Subparts E, F, 
and G would require capital expenditures of more than $250,000 of which 
amount, approximately $22,000 would be required for software 
modifications for the VAR and PTD requirements. Annual operating 
expenditures would amount to more than $500,000 which includes 
approximately $46,000 for VAR and

[[Page 53858]]

PTD expenses. These additional costs would result in increases in the 
retail price of gasoline, estimated by the companies to be at least 0.6 
to 1.4 cents more per gallon.
    Gasoline price increases of the magnitude expected to result from 
compliance with Subparts E and F would be especially burdensome for the 
great many citizens of Guam whose incomes are modest. The average 
income on Guam is at least $4,000 less than on the mainland. If this 
exemption were not granted, and gasoline would have to be transported 
from the mainland, the average price of a gallon of gasoline at the 
retail level could rise approximately 10 to 12 cents or more over the 
present price of a gallon of gasoline in Guam. This price increase is 
far more than EPA's estimated additional cost of reformulated gasoline 
of 3-5 cents.9
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    \9\ 59 Fed. Reg. 7810, February 16, 1994.
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B. Rationale for Denying Exemption from Fuel Detergent Requirements

    Information provided to the Agency subsequent to the petition 
10 states that all of the importers that supply Guam's gasoline 
use detergent additives in all grades of gasoline that they sell in 
Guam. One importer, the largest marketer of gasoline on the island, 
began using additives last year for marketing reasons. Another importer 
has been using detergent additives in its gasoline for several years. 
An additive called RT2276 (also referred to as MTT242), is used in 
concentrations equal to or greater than the level specified by the 
additive manufacturer. Therefore, compliance with Subpart G's 
additization requirements is clearly feasible in Guam.
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    \10\ Letters dated September 28, 1995, and October 26, 1995, 
from Eric Murdock, Hunton & Williams, Washington, D.C. supporting 
Guam's petition.
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    Guam's petition states that costs of compliance with the 
requirements of Subpart G would be over $400,000. These costs were 
computed for four importers and their marketers. Since the petition was 
filed, EPA has learned that there are now only three importers in 
Guam.11 Therefore, these costs could conceivably be lower.
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    \11\ Letter dated October 26, 1995, from Eric J. Murdock, Hunton 
& Williams, Washington, D.C., supporting Guam's petition.
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    The petition estimates that the total cost of compliance will add 
between .6 to 1.4 cents to the cost of a gallon of gasoline. EPA 
estimated that the average incremental cost to consumers of compliance 
with the detergent requirements for the mainland United States would be 
0.1 cent a gallon,12 with this cost being partially compensated 
for by the increased fuel economy and decreased maintenance 
requirements which improved deposit control is expected to provide. 
Over 90 percent of the total estimated cost of the program is 
associated with the price of the additional additive amounts needed to 
bring all gasoline up to the effective detergency levels which most of 
U.S. gasoline already contains. EPA disagrees with the cost estimate in 
the petition. The estimated cost of 0.6 to 1.4 cents per gallon to 
comply with the gasoline detergent program in Guam might be a 
reasonable estimate if detergent was not already widely used in Guam 
gasoline.13 However, given the common use of gasoline detergents 
in Guam, EPA believes that the cost to Guam consumers will likely 
closely parallel that projected for consumers in the mainland U.S.
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    \12\ Final Rule on the Certification Standards for Deposit 
Control Gasoline Additives, July 5, 1996, 61 FR 35309, page 35353.
    \13\ EPA estimated that the total cost of the amount of additive 
needed to comply with Federal gasoline detergency requirements would 
be 0.5 to 1.0 cents per gallon, with much of U. S. gasoline already 
containing significant amounts of detergent additives. See the 
Regulatory Impact Analysis and Regulatory Flexibility Analysis for 
the Interim Detergent Registration Program and Expected Detergent 
Certification Program, Docket Item V-B-01, EPA Air Docket A-91-77, 
Washington, D.C.
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    Transportation costs associated with shipping detergent additive 
which complies with Federal detergency requirements to Guam are likely 
to be somewhat higher than that in the mainland U.S. However, EPA 
believes this differential in cost will have minimal impact due to the 
small volume of detergent additive estimated to be needed to achieve 
proper additization (approximately 0.4 to 0.6 gallons of detergent to 
1,000 gallons of gasoline). In addition, EPA's estimate of the cost to 
the consumer of the detergent program assumed the average motorist 
drives 10,000 to 15,000 miles per year and consumes 400 to 600 gallons 
of gasoline. Given Guam's small size, the average motorist on Guam 
would tend to drive less than the average motorist on the mainland 
which would tend to reduce the cost to a Guam consumer relative to 
EPA's estimate. All things considered, the cost to the consumer of up 
to six dollars a year estimated for the U.S. as a whole, holds for Guam 
as well. EPA believes that this would not be an unreasonable economic 
burden for the Guam consumer. This is generally consistent with EPA's 
estimate of the cost of compliance with the detergent requirements for 
the mainland United States. In addition, suppliers of gasoline to Guam 
have indicated that the fuel importers intend to continue adding 
detergent additives to all gasoline sold in Guam. Thus compliance costs 
associated with the recordkeeping (VAR and PTD) requirements of the 
detergent rule are the primary additional costs directly attributable 
to the detergent program's requirements. EPA estimates that compliance 
with the recordkeeping requirements of Subpart G would add only a small 
portion--less than 1 cent--to the cost of a gallon of gasoline. EPA 
believes that this would not be an unreasonable economic burden for the 
Guam consumer.
    Guam's petition states that only in the last few months of 1995 
have all the gasoline importers and marketers begun using fuel 
detergents in all of Guam's gasoline. Therefore start-up costs could be 
higher in Guam than in other markets on the mainland where detergent 
additization has been an ongoing process for several years. EPA does 
not believe that start-up of this program will be significantly more 
difficult or expensive in Guam compared to the rest of the U.S. 
Further, once compliance programs are established, the annual cost of 
compliance will be comparable to that in other areas. In summary, the 
small added cost to Guam consumers, and the fact that detergents are 
already added to 100% of the gasoline supplied in Guam, lead EPA to 
conclude that an exemption from the requirements of Subpart G is not 
warranted.

VI. Final Action

A. Anti-Dumping Provisions for Conventional Gasoline

    EPA has decided to exempt the Territory of Guam from compliance 
with the anti-dumping standards for conventional gasoline under section 
211(k)(8). The Agency believes that compliance with the gasoline anti-
dumping requirements is unreasonable given the significantly increased 
costs to consumers in Guam in achieving compliance. These increased 
costs are directly attributable to Guam's location and resulting 
inability of importers to comply with the anti-dumping requirements 
without significantly greater costs than those expected for importers 
in the U. S. mainland. Gasoline price increases of the magnitude 
expected to result from compliance with Subparts E and F could be 
especially burdensome for the great many citizens of Guam whose incomes 
are modest and whose economic situation is not expected to change 
significantly in the near future.
    In addition, despite its geographic remoteness from the mainland,

[[Page 53859]]

compliance with the anti-dumping provisions might require that Guam 
import conventional gasoline from the U. S. mainland, greatly 
increasing the cost of conventional gasoline. EPA finds that these 
economic factors are also unique to the Territory of Guam.
    This exemption will apply to all persons in Guam subject to the 
anti-dumping requirements in section 211(k)(8) of the Act, and subparts 
E and F of 40 CFR Part 80. This exemption is retroactive to January 1, 
1995, and applies only to gasoline imported to Guam for use in Guam. 
EPA reserves the right to review and reopen this exemption in the 
future if conditions in Guam change to warrant such an action.

B. Fuel Detergent Additization

    EPA is denying the petition from the Territory of Guam for an 
exemption from the fuel detergent additization requirement that, after 
January 1, 1995, all conventional gasoline contain registered fuel 
additives that control fuel deposits as established in 40 CFR Part 80, 
Subpart G. Guam has not demonstrated that unique local factors exist 
such that compliance with the detergent additization and recordkeeping 
requirements would be either infeasible or unreasonable.

VII. Public Participation and Effective Date

    The Agency is publishing this action as a direct final decision 
because it views it as noncontroversial and limited to the Territory of 
Guam. EPA anticipates no adverse or critical comments. Representatives 
of automobile and petroleum industry associations have indicated that 
their constituents will not be adversely affected by this direct final 
decision and therefore the Agency expects no adverse comments from the 
members of those associations. Similarly, the Agency does not expect 
adverse comments from the environmental community or state and local 
governments, since the environmental impact is very minimal.
    This action will become effective December 16, 1996. If the Agency 
receives adverse comments by November 15, 1996, EPA will publish a 
subsequent Federal Register document withdrawing this decision. In the 
event that adverse or critical comments are received, EPA is also 
publishing a Notice of Proposed Decision in a separate action today, 
which proposes the same action contained in this direct final decision. 
Any adverse comments received by the date listed above will be 
addressed in a subsequent final decision. That final decision will be 
based on the relevant portion of the proposed final decision that is 
published in the Proposed Rule Section of this Federal Register and 
that is identical to this direct final decision. The EPA will not 
institute a second comment period on this action. Any parties 
interested in commenting on this action should do so at this time. If 
no such comments are received, the public is advised that this action 
will be effective December 16, 1996.
    This procedure allows the opportunity for public comment and 
opportunity for oral presentation of data as required under section 
307(d) of the Act. This procedure also provides an expedited procedure 
for final action where a decision is not expected to be controversial 
and no adverse comment is expected.

VIII. Statutory Authority

    Authority for the action described in this notice is in section 
325(a)(1) (42 U.S.C. 7625-1(a)(1) of the Clean Air Act as amended.

IX. Administrative Designation and Regulatory Analysis

    Under Executive Order (E.O.) 12866, the Agency must judge whether a 
regulation is ``major'' and thus subject to the requirement to prepare 
a regulatory impact analysis. The decision announced today alleviates 
any potential adverse economic impacts in Guam and is not a regulation 
or rule as defined in E.O. 12866. Therefore, no regulatory impact 
analysis has been prepared.

X. Impact on Small Entities

    This action either eases or leaves unchanged requirements otherwise 
applicable to affected entities. Thus, EPA has determined that it will 
not result in a significant adverse impact on a substantial number of 
small entities.

XI. 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.

XII. Unfunded Mandates

    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 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 exemption in this notice does not 
include a federal mandate that may result in estimated costs of $100 
million or more to those entities mentioned above. This federal action 
approves a request for exemption by petitioners in Guam to reduce the 
cost of implementing the Clean Air Act. Accordingly, no additional 
costs to state, local, or tribal govenrments, or to the private sector 
result from this action.

XIII. Submission to Congress and the General Accounting Office

    Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
containing this decision and other required information to the U.S. 
Senate, the U.S. House of Representatives and the Comptroller General 
of the General Accounting Office prior to publication of the decision 
in today's Federal Register. This action is not a ``major rule'' as 
defined by 5 U.S.C. 804(2).

XIV. Electronic Copy of Final Decision

    A copy of this action is available on the OAQPS Technology Transfer 
Network Bulletin Board System (TTNBBS). The TTNBBS can be accessed with 
a dial-in phone line and a high-speed modem (PH# 919-541-5742). The 
parity of your modem should be set to none, the data bits to 8, and the 
stop bits to 1. Either a 1200, 2400, or 9600 baud modem should be used. 
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:

(M) OMS
(K) 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. Today's action will be in the 
form of a ZIP file and can be identified by the following title: 
GUAM.ZIP. To down load this file, type the instructions below and 
transfer according to the appropriate software on your computer:

ownload, rotocol, xamine, ew, ist, or elp

[[Page 53860]]

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 systems Utilities from 
the top menu, under rchivers/de-archivers. 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.

    Dated: October 8, 1996.
Carol M. Browner,
Administrator.
[FR Doc. 96-26449 Filed 10-15-96; 8:45 am]
BILLING CODE 6560-50-P