[Federal Register Volume 65, Number 224 (Monday, November 20, 2000)]
[Proposed Rules]
[Pages 69720-69724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29645]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX-114-2-7480; FRL-6904-2]


Approval and Promulgation of Air Quality State Implementation 
Plans (SIP); Texas: Control of Gasoline Volatility

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: We, the EPA, propose to fully approve a State Implementation 
Plan (SIP) revision submitted by the State of Texas establishing a low-
Reid Vapor Pressure (RVP) fuel requirement for gasoline distributed in 
95 counties in the eastern and central parts of Texas. Texas developed 
this fuel requirement to reduce emissions of volatile organic compounds 
(VOC) as part of the State's strategy to achieve the National Ambient 
Air Quality Standard (NAAQS) for ozone in the Houston and Dallas-Fort 
Worth nonattainment areas. We are approving Texas' fuel requirements 
into the SIP because we found that the fuel requirement is in 
accordance with the requirements of the Clean Air Act (the Act) as 
amended in 1990 and is necessary for these nonattainment areas to 
achieve the ozone NAAQS.

DATES: Comments should be received on or before December 20, 2000.

ADDRESSES: Written comments on this action should be addressed to Mr. 
Thomas H. Diggs, Chief, Air Planning Section, at the EPA Regional 
Office listed below. Copies of the documents relevant to this action 
are available for public inspection during normal business hours at the 
following

[[Page 69721]]

locations. Environmental Protection Agency, Region 6, Air Planning 
Section (6PD-L), 1445 Ross Avenue, Suite 700, Dallas, Texas 75202-2733. 
Texas Natural Resource Conservation Commission, 12100 Park 35 Circle, 
Austin, Texas 78711-3087. Persons interested in examining these 
documents should make an appointment with the appropriate office at 
least 24 hours before the visiting day.

FOR FURTHER INFORMATION CONTACT: Sandra Rennie, Air Planning Section 
(6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733, 
telephone (214) 665-7214.

SUPPLEMENTARY INFORMATION:

What Does the State's Low-RVP Regulation Include?

    The State's low-RVP regulation requires that gasoline sold within 
the 95 attainment counties listed in the regulations have a maximum RVP 
of 7.8 psi. The regulations apply to gasoline sold at gasoline 
dispensing facilities between June 1 and October 1 of each year, and 
between May 1 and October 1 of each year for bulk plants, gasoline 
terminals and gasoline storage vessels.
    The 95 central and eastern Texas counties affected by these rules 
are Anderson, Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bell, 
Bexar, Bosque, Bowie, Brazos, Burleson, Caldwell, Calhoun, Camp, Cass, 
Cherokee, Colorado, Comal, Cooke, Coryell, De Witt, Delta, Ellis, 
Falls, Fannin, Fayette, Franklin, Freestone, Goliad, Gonzales, Grayson, 
Gregg, Grimes, Guadalupe, Harrison, Hays, Henderson, Hill, Hood, 
Hopkins, Houston, Hunt, Jackson, Jasper, Johnson, Karnes, Kaufman, 
Lamar, Lavaca, Lee, Leon, Limestone, Live Oak, Madison, Marion, 
Matagorda, McLennan, Milam, Morris, Nacogdoches, Navarro, Newton, 
Nueces, Panola, Parker, Polk, Rains, Red River, Refugio, Robertson, 
Rockwall, Rusk, Sabine, San Jacinto, San Patricio, San Augustine, 
Shelby, Smith, Somervell, Titus, Travis, Trinity, Tyler, Upshur, Van 
Zandt, Victoria, Walker, Washington, Wharton, Williamson, Wilson, Wise, 
and Wood Counties.

How Does the Low-RVP Proposal Relate to Other SIP Activities in the 
State?

    Current planning efforts by the State are directed at three 
nonattainment areas, Houston-Galveston (HGA), Dallas-Fort Worth (DFW), 
and Beaumont-Port Arthur (BPA). The attainment demonstration SIPs for 
two of these areas rely upon the low-RVP fuel to make their 
demonstrations. The SIPs are:
    (1) The Dallas Attainment Demonstration, adopted on April 19, 2000, 
and submitted on April 25, 2000.
    (2) The Houston Attainment Demonstration, proposed by the State on 
August 9, 2000. It will be submitted to EPA no later than December 
2000.
    Texas has adopted a Regional SIP to complement these attainment 
demonstration SIPs for Houston and Dallas, and provide additional 
emission reductions necessary for these areas to attain the ozone 
NAAQS. The Texas Regional SIP includes a list of controls that apply in 
the attainment areas surrounding these nonattainment areas. 
Specifically, the Texas Regional SIP includes three control programs to 
reduce emissions of nitrogen oxides (NOX) and VOC: a 
regional low-RVP fuel program (the subject of this action), a 
stationary source program, and a Stage I vapor recovery program.

What Is Proposed?

    We are proposing to approve a SIP revision establishing a low-RVP 
fuel requirement for gasoline sold in the 95 eastern and central 
counties of Texas. The State's low-RVP program will only apply in the 
listed attainment counties and will not apply in the designated 
nonattainment counties in the HGA, DFW, or BPA areas because these 
areas are already subject to federal fuel controls that are at least as 
stringent.

What Are the Clean Air Act Requirements?

    This action is pursuant to section 110 of the Act. The approval of 
the State's fuel control measure must also meet the requirements of 
section 211(c)(4)(C). Under this section, we may approve a state fuel 
control into a SIP if we find that the control is ``necessary'' to 
achieve a NAAQS.
    The EPA's August 21, 1997, Guidance on Use of Opt-in to RFG and 
Low-RVP Requirements in Ozone SIPs gives further guidance on what EPA 
is likely to consider in making a finding of necessity. The guidance 
sets out four issues to be analyzed:
    1. The quantity of emissions reductions needed to achieve the 
NAAQS;
    2. Other possible control measures and the reductions each would 
achieve;
    3. The explanation for rejecting alternatives as unreasonable or 
impracticable; and
    4. A demonstration that reductions are needed even after 
implementation of reasonable and practicable alternatives, and that the 
fuel control will provide some or all or the needed reductions.
    In this notice of proposed rulemaking and accompanying Technical 
Support Document (TSD), we address these issues in a slightly different 
fashion. Though somewhat differently stated, the 4 items listed for 
consideration in the guidance are covered by the review done for this 
submittal. First, we explain the way in which the low-RVP program will 
help the nonattainment areas achieve the NAAQS. This serves the same 
purpose as the first item listed in the Guidance. Though we do not 
discuss the specific amount of reductions needed, this is the basis for 
satisfying the necessity showing required by the Clean Air Act. Second, 
we review the reasonableness and practicability of non-fuel control 
alternatives. This satisfies the second and third items listed in the 
Guidance and meets the specific requirements of section 211(c)(4)(C). 
Finally, we show that with implementation of all reasonable and 
practicable control measures and the regional fuel controls, the 
Houston and Dallas nonattainment areas may be able to just attain the 
ozone NAAQS but the ozone design value for these areas is expected to 
continue to exceed the one hour standard for ozone. This meets item 
number 4 in the Guidance and rounds off the demonstration that the 
measure is necessary.

What Did the State Submit?

    The State submitted this revision to the SIP by letter from the 
Governor dated August 16, 1999. This was followed by two technical 
supplements dated October 13, 1999, and February 11, 2000. The SIP 
submittal contains Chapter 114, Texas Administrative Code (TAC), as 
adopted on June 30, 1999, and April 19, 2000, a request for a waiver 
from federal preemption pursuant to section 211(c)(4)(C) of the Act, 
and Texas laws providing the authority for the State to adopt and 
implement revisions to the SIP.
    Texas submitted data and analyses to support a finding under 
section 211(c)(4)(C) that the State's low-RVP requirement is necessary 
for the DFW and HGA nonattainment areas to achieve the ozone NAAQS. The 
State has (1) identified the reduction in modeled peak values needed to 
achieve attainment of the ozone NAAQS; (2) identified all other 
reasonable and practical control measures; (3) shown that even with the 
implementation of all reasonable and practicable control measures, the 
State would need additional emissions reductions for these 
nonattainment areas to meet the ozone NAAQS (124 ppb) on a timely 
basis; and (4) demonstrated that the low-RVP requirement would 
contribute to those additional reductions.

[[Page 69722]]

Why Is the State Submitting this SIP for Low-RVP Gasoline in 
Attainment Areas of Texas?

    Lowering the RVP in gasoline reduces VOC emissions. This is 
primarily through reducing evaporative losses from vehicle fuel tanks, 
lines, and carburetors as well as losses from gasoline storage and 
transfer facilities. To a lesser degree there is also a reduction in 
the VOCs in vehicle exhaust. Without the proposed fuel controls, the 
95-county area subject to the proposed fuel control would receive 
gasoline with an RVP of up to 9.0 psi during the summer months. The 
State, based on modeling results using EPA's complex model, estimates 
that the proposed regional low-RVP program will reduce VOC emissions 
from automobiles by at least 14%.
    Ozone and the precursor pollutants that cause ozone can be 
transported into an area from pollution sources hundreds of miles 
upwind. In order to address ozone pollution, EPA has traditionally 
focused its control strategies on reducing emissions within the 
nonattainment areas. EPA and states, however, have become increasingly 
aware of the contribution to ozone nonattainment from upwind sources of 
ozone and its precursors. Modeling and other analyses support the 
conclusion that lowering VOC emissions through Texas' regional low-RVP 
program will benefit the DFW and HGA nonattainment areas through one or 
more of three mechanisms: reducing ozone transport, reducing VOC 
transport, and reducing the transport of higher RVP gasoline into the 
nonattainment areas in commuters' vehicles. Each of these mechanisms is 
discussed in more detail in the TSD for this proposal.
    The analysis in the TSD suggests that the low-RVP control in 
various counties will benefit the nonattainment areas in different 
ways. For some counties the primary benefit will be the reduction of 
ozone transport from those counties to the nonattainment counties, 
while in others the primary benefit will be a reduction in the 
emissions from commuters' vehicles. A single RVP control throughout the 
95-county area captures all the attainment counties contributing to 
nonattainment in the DFW and HGA areas, and avoids a patchwork of fuel 
controls. We therefore agree with the State that it is reasonable to 
adopt a uniform program throughout the 95-county area to allow fuel 
supplies to be co-mingled in the pipeline, promote trading, and 
simplify tracking compliance.

Are There Any Reasonable and Practicable Alternatives to the 
Regional Low-RVP Program?

    The State conducted thorough analyses of control measures available 
to benefit the DFW and HGA nonattainment areas. The HGA and DFW SIPs 
contain long lists of stationary source controls that are or will be 
required, expansion and upgrading of the vehicle inspection and 
maintenance programs, and a host of other measures that must be 
implemented including a ban on the use of residential lawn and garden 
equipment before noon during the summer in the HGA nonattainment area 
and delay of construction activities during daylight savings time in 
both HGA and DFW nonattainment areas. The attainment SIPs use a weight-
of-evidence (WOE) analysis to show that implementation of all 
reasonable and practicable controls, including the regional low-RVP 
program, should just bring the DFW area into attainment. Attainment 
demonstration modeling for all nonattainment areas suggests that even 
with the implementation of all reasonable and practicable controls, the 
modeled peak value for the areas may exceed the 1-hour ozone standard 
and that additional reductions are necessary to achieve the standard.
    The Metropolitan Planning Organizations in both the DFW and HGA 
areas examined several hundred options for potential reductions in each 
nonattainment area. At this point in time, other non-fuel reductions 
are either non-existent or considered impracticable. Texas also 
submitted a long list of non-fuel measures that it considered for 
implementation outside the nonattainment areas. These measures were 
also found by the State to be unreasonable or impracticable based 
primarily on cost and the time required to implement the measures.
    Based on the State's analysis of the cost-effectiveness and the 
time required to implement these measures, we agree that there are no 
reasonable or practicable non-fuel control measures available to the 
State to achieve the ozone NAAQS. Compared to all measures outlined in 
the TSD, low-RVP fuel is the most reasonable and practicable measure 
available to reduce background ozone levels and curtail the transport 
of ozone and precursors into the nonattainment areas. The State 
estimates that the cost for implementing the low-RVP fuel will be less 
than 0.3 cents per gallon. In addition, the benefits of the low-RVP 
program will be felt immediately upon implementation.
    The TSD includes a detailed review of the controls that the State 
has already proposed or adopted and the reasonableness and 
practicability of the non-fuel alternatives that are still available. A 
more complete description of the State's analysis of the measures 
considered for the attainment area may also be found in the October 13, 
1999 technical supplement submitted by the State.

Is the Regional Low-RVP Fuel Control Program Necessary for 
Achieving the NAAQS?

    The 1996 document, Guidance on Using Modeled Results to Demonstrate 
Attainment of the Ozone NAAQS, presents two approaches to demonstrating 
attainment, a statistical approach and a deterministic approach. For 
the purposes of the attainment demonstrations submitted for the DFW, 
and proposed for the HGA nonattainment areas, the deterministic 
approach was used. Though EPA's review is far from complete, CAMx 
modeling for both attainment demonstrations appears to predict that 
even with implementation of all reasonable and practicable measures, 
including the regional low-RVP control, the design values for the 
nonattainment areas will still be above the 1-hour ozone standard. It 
should be noted that EPA is working with the State to bring the areas 
into attainment. EPA will address the design value modeling and 
attainment demonstration for the various areas in separate actions to 
be published at future dates.
    Preliminary review of attainment demonstration modeling submitted 
on April 25, 2000, for DFW appears to indicate that with all measures 
taken into account in the model, including the regional low-RVP 
program, the modeled peak value for the DFW area remains very close to 
or in excess of the NAAQS. Therefore, it is apparent that every ton of 
ozone reduction is necessary to achieve the 1-hour standard including 
those that result from the other measures adopted and proposed for the 
95 attainment counties.
    The Houston modeling submitted in November, 1999, showed, after 
modeling extensive controls including the low-RVP program, an estimated 
shortfall of 118 tpd of NOX. The shortfall of NOX 
represents additional reductions that the model would require to show a 
modeled peak ozone value of 124 ppb. While modeling submitted in 
November, 1999, indicated only a very slight benefit from VOC controls, 
more recent models which support the proposed attainment demonstration 
SIP

[[Page 69723]]

for HGA indicate a clear need for VOC reductions.
    Further, Texas performed regional modeling (submitted in April 
2000) which demonstrated that the VOC reductions provided by the 
regional low-RVP control are necessary to reduce ozone in the 
nonattainment areas. The models predicted that a mixture of 
NOX and VOC controls, including the regional low-RVP 
control, would reduce modeled peak values. Texas proposed another 
revision to the Houston SIP on August 9, 2000. The new proposal with 
revised emission estimates has an estimated NOX shortfall of 
only 78 tpd. As mentioned above, the modeling in the new proposal shows 
a greater sensitivity to VOC controls than previous modeling studies.

Does the State Submittal Meet the SIP Approval Requirements Under 
Section 110?

    The Texas Regional SIP submittal, including the regional low-RVP 
fuel control program, meets the requirements outlined in section 110. 
The Texas rules for this SIP include adequate enforceability measures.
    Texas submitted the fuel portion of the Texas Regional SIP under a 
Governor's letter dated August 16, 1999. The submittal contains the 
appropriate hearing actions, a preamble, and the regional low-RVP 
rules. The State also submitted technical supplements dated October 13, 
1999, and February 11, 2000, that provided data on commuter patterns 
and an analysis of measures considered for the attainment area. The SIP 
was deemed complete by operation of law on February 16, 2000.
    On February 9, 2000, the State proposed revisions to the fuel rules 
previously adopted in 30 TAC 114. Revisions included strengthening the 
enforcement provisions. The State adopted these rules on April 5, 2000. 
Revised chapter 114 rules were submitted under a Governor's letter 
dated April 25, 2000. The revisions strengthened enforcement provisions 
that EPA requested during the public comment period for the original 
submittal.

How Will the Program Be Enforced?

    The Texas Natural Resource Conservation Commission will implement 
the low-RVP rule. Producers, importers, terminals, pipelines, truckers, 
rail carriers, and retail dispensing outlets are subject to provisions 
of this rule. Registration, recordkeeping, reporting, and certification 
requirements are included.
    We find that these rules are an acceptable approach for enforcing 
the low-RVP gasoline program.

Proposed Action By EPA

    Texas' regional low-RVP program will provide needed VOC and ozone 
reductions for the DFW and HGA ozone nonattainment areas. Without the 
program, the modeled peak ozone values for the nonattainment areas will 
continue to exceed the 1-hour ozone standard. The State demonstrated 
that the regional low-RVP fuel control program is necessary to help the 
DFW and HGA nonattainment areas achieve the 1-hour ozone standard and 
that no other reasonable or practicable alternatives remain that would 
bring about timely attainment. We are proposing to approve the Texas 
Regional Low-RVP Gasoline Program into the Texas SIP under 
Sec. 110(k)(3) of the CAA as meeting the requirements of Sec. 110(a) 
and Part D. We are also proposing to find that this SIP revision meets 
the requirements of section 211(c)(4)(C) of the Act.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future implementation 
plan. Each request for revision to the State Implementation Plan shall 
be considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.

Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. This proposed action merely approves state law as meeting 
federal requirements and imposes no additional requirements beyond 
those imposed by state law. Accordingly, the Regional Administrator 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). Because this rule proposes to 
approve pre-existing requirements under state law and does not impose 
any additional enforceable duty beyond that required by state law, it 
does not contain any unfunded mandate or significantly or uniquely 
affect small governments, as described in the Unfunded Mandates Reform 
Act of 1995 (Public Law 104-4). For the same reason, this proposed rule 
also does not significantly or uniquely affect the communities of 
tribal governments, as specified by Executive Order 13084 (63 FR 27655, 
May 10, 1998). This proposed rule will not have substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government, as specified 
in Executive Order 13132 (64 FR 43255, August 10, 1999), because it 
merely approves a state rule implementing a federal standard, and does 
not alter the relationship or the distribution of power and 
responsibilities established in the Clean Air Act. This proposed rule 
also is not subject to Executive Order 13045 (62 FR 19885, April 23, 
1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use Voluntary Consensus Standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3 
of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing 
this proposed rule, EPA has taken the necessary steps to eliminate 
drafting errors and ambiguity, minimize potential litigation, and 
provide a clear legal standard for affected conduct. EPA has complied 
with Executive Order 12630 (53 FR 8859, March 15, 1988) by examining 
the takings implications of the rule in accordance with the ``Attorney 
General's Supplemental Guidelines for the Evaluation of Risk and 
Avoidance of Unanticipated Takings' issued under the executive order. 
This rule does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
oxides, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.


[[Page 69724]]


    Dated: November 3, 2000.
Myron O. Knudson,
Acting Regional Administrator, Region 6.
[FR Doc. 00-29645 Filed 11-17-00; 8:45 am]
BILLING CODE 6560-50-P