[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Proposed Rules]
[Pages 47142-47145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22735]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[AL-056-2-200031; FRL-7053-2]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to fully approve a SIP revision submitted by 
the State of Alabama establishing low-sulfur and low-Reid Vapor 
Pressure (RVP) requirements for gasoline distributed in the Birmingham 
nonattainment area (Shelby and Jefferson counties in Alabama). Alabama 
developed these fuel requirements to reduce emissions of nitrogen 
oxides ( NOX) and volatile organic compounds (VOC) as part 
of the State's strategy to achieve the National Ambient Air Quality 
Standard (NAAQS) for ozone in the Birmingham nonattainment area. EPA is 
approving Alabama's fuel requirement into the SIP because these fuel 
requirements are in accordance with the requirements of the Clean Air 
Act (the Act), and are necessary for the Birmingham nonattainment area 
to achieve the 1-hour ozone NAAQS in a timely manner.

DATES: Comments should be received on or before October 11, 2001.

ADDRESSES: All comments should be addressed to: Lynorae Benjamin at the

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EPA, Region 4 Air Planning Branch, 61 Forsyth Street, SW, Atlanta, 
Georgia 30303-8960.
    Copies of the State submittal(s) are available at the following 
addresses for inspection during normal business hours:

Environmental Protection Agency, Region 4, Air Planning Branch, 61 
Forsyth Street, SW., Atlanta, Georgia 30303-8960. Lynorae Benjamin, 
(404) 562-9040
Alabama Department of Environmental Management (ADEM), 400 Coliseum 
Boulevard, Montgomery, Alabama 36110-2059

FOR FURTHER INFORMATION CONTACT: Lynorae Benjamin, Regulatory Planning 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, Region 4, Environmental Protection Agency, Atlanta Federal 
Center, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. The 
telephone number is (404) 562-9040. Ms. Benjamin can also be reached 
via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: The following section provides the rationale 
for EPA's granting Alabama a preemption waiver, as provided in Section 
211(c)(4)(C) of the Act, for the low-sulfur/low-RVP requirements for 
gasoline sold in the Birmingham nonattainment area during the 
regulatory control period (June 1 through September 15) each year 
through 2003. After that time, the State control of sulfur terminates, 
and Federal controls on sulfur in gasoline will then apply. There is no 
termination date for the low-RVP portion of Alabama's fuel regulation.

I. Analysis of State's Submittal

What Did the State Submit?

    On November 1, 2000, the State of Alabama submitted an attainment 
demonstration for the 1-hour ozone NAAQS for the Birmingham 
nonattainment area for inclusion into the Alabama SIP. The rule for the 
fuel program (the subject of this proposed rulemaking) is included in 
this submittal in Appendix I; the request for a waiver from Federal 
preemption pursuant to 211(c)(4)(C) of the Act (also the subject of 
this proposed rulemaking) is included as Appendix II of this submittal. 
Specifically, Appendix II of the Alabama submittal contains data and 
analyses to support a finding under section 211(c)(4)(C) that the 
State's low-sulfur and low-RVP requirements are necessary for the 
Birmingham nonattainment area to achieve the ozone NAAQS.

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

    This SIP submittal, including the fuel rule for Alabama's low-
sulfur/low-RVP fuel control program, meets the requirements outlined in 
section 110. The fuel rule was formally adopted by the ADEM Board on 
October 24, 2000, and became effective December 1, 2000.

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

    The attainment demonstration for the Birmingham nonattainment area, 
submitted November 1, 2000, relies upon the emission reductions from 
the low-sulfur/low-RVP fuel program. The SIP submittal includes a list 
of controls currently in place in both Jefferson and Shelby counties, 
and provides additional emission reductions control measures necessary 
to achieve the 1-hour ozone NAAQS. Specifically, the attainment 
demonstration includes a low-sulfur/low-RVP fuel program (the subject 
of this proposed rulemaking) and controls on Alabama Power Company's 
Gorgas and Miller Steam Plants. EPA action on the controls for the 
Gorgas and Miller Steam Plants are being taken in a separate 
rulemaking.

What Are the Clean Air Act Requirements?

    This action is pursuant to section 110 of the Clean Air Act as 
amended in 1990 (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 of the Act, EPA may approve a state fuel control into a 
SIP if it is found 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 emission 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 of the needed reductions.
    In this notice of proposed rulemaking and accompanying Technical 
Support Document (TSD), EPA addresses these issues.

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

    The State's low-sulfur/low-RVP regulation establishes a maximum 
sulfur content limit of 150 ppm, averaged on a volume-weighted basis, 
for all gasoline sold in Jefferson and Shelby counties during the 
regulatory period beginning June 1 and ending September 15. The sulfur 
limit will remain in effect through the 2003 control period. After that 
time, the State control of sulfur terminates, and Federal controls on 
sulfur in gasoline will then apply. As Alabama noted in its submittal, 
EPA promulgated its newest standards for vehicle tailpipe emissions as 
well as a national clean fuel (Tier 2 Motor Vehicle Emissions Standards 
and Gasoline Sulfur Control Requirements) on February 10, 2000. EPA's 
rule sets an initial corporate pool average for sulfur of 120 parts per 
million (ppm) beginning in 2004, and will require a refinery average of 
30 ppm sulfur for all gasoline sold nationwide beginning in 2006.
    The State's low-sulfur/low-RVP regulation also establishes a 
maximum RVP limit of 7.0 pounds per square inch (psi) for all gasoline 
sold in Jefferson and Shelby counties during the aforementioned 
regulatory period of any calendar year beginning in 1999. For ethanol 
blends meeting specified conditions sold during the regulatory period 
in Jefferson and Shelby counties, Alabama's regulations limits RVP to a 
maximum of 8.0 psi. The RVP limit on gasoline and ethanol blends is a 
per gallon standard. There is no termination date for the low-RVP 
portion of Alabama's fuel regulation.

How Will the Program Be Enforced?

    ADEM will enforce the low-sulfur/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. ADEM will conduct sampling for the fuel program in 
accordance with the ``Methodology for Randomized Sampling to Estimate 
Mean Sulfur in Gasoline During a Specified Ozone Season'' (see Appendix 
I of the attainment demonstration) or by some EPA-approved modification 
of this sampling plan. Samples, the number to be determined in 
coordination with ADEM and EPA, will be collected and analyzed for 
sulfur and RVP throughout

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the control period. Any sample that exceeds the limits specified in the 
fuel rule (i.e., 150 ppm sulfur and 7.0 psi--with the consideration of 
the allowable margin of error), will be considered a violation and may 
require an enforcement action. If an enforcement action is warranted, 
ADEM would use one of two approaches. ADEM would either issue an 
administrative order or consent order, or initiate a civil action. 
Another provision of the fuel rule provides that the seasonal sulfur 
average will not exceed 140 ppm. If the seasonal sulfur average exceeds 
140 ppm, ADEM will require 100 percent terminal testing in lieu of 
testing at the retail level for future control periods.
    EPA finds that this fuel rule is an acceptable approach for 
enforcing the State's fuel program.

Will the Low-Sulfur/Low-RVP Fuel Control Program Provide Some or All of 
the Needed Emission Reductions?

    Implementation of the low-sulfur/low-RVP fuel program will provide 
3.3 (tons per day) TPD of NOX and 7.0 TPD of VOC emission 
reductions, which provides some or all of the emission reductions 
needed for the Birmingham nonattainment area to achieve the 1-hour 
ozone NAAQS. Reducing the sulfur and RVP of gasoline reduces 
NOX and VOC emissions, respectively.
    On May 1, 1998, EPA released a staff paper presenting EPA's 
understanding of the impact of gasoline sulfur on emissions from motor 
vehicles and exploring what gasoline producers and automobile 
manufacturers could do to reduce sulfur's impact on emissions. The 
staff paper noted that gasoline sulfur degrades the effectiveness of 
catalytic converters and that high sulfur levels in commercial gasoline 
could affect the ability of future automobiles--especially those 
designed for very low emissions--to meet more stringent standards that 
are in use. The paper also pointed out that sulfur control will provide 
additional benefits by lowering emissions from the current fleet of 
vehicles.
    Lowering the RVP in gasoline reduces VOC emissions, 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, a reduction in the VOCs in vehicle 
exhaust also results from low-RVP gasoline.

Are There Any Reasonable and Practicable Alternatives to Alabama's Fuel 
Program?

    The State conducted thorough analyses of control measures available 
for the Birmingham nonattainment area. The attainment demonstration for 
the Birmingham nonattainment area contains a long list of stationary 
and point source controls that are required for Jefferson and Shelby 
counties. In brief, this attainment demonstration discusses Alabama's 
implementation of VOC reasonably achievable control technology (RACT), 
Stage I vapor recovery controls and open burning bans, among other 
controls for Jefferson and Shelby counties. Further, NOX 
controls for the Alabama Power Company's Gorgas and Miller plant are 
included in this attainment demonstration. This attainment SIP uses a 
weight-of-evidence analysis to show that implementation of these 
controls, including the low sulfur/low-RVP program, should bring the 
Birmingham nonattainment area into attainment of the 1-hour ozone 
NAAQS. The discussion below summarizes the controls that have been 
adopted and evaluates the reasonableness and practicability of the non-
fuel alternatives that are still available.
    In February 1997, ADEM formed an Advisory Committee to assist in 
determining the course(s) most appropriate to reduce ozone precursor 
emissions in the Birmingham nonattainment area. As a result of these 
meetings, many discussions centered on a fuel control strategy (in 
conjunction with other strategies). For the purpose of this fuel waiver 
request, ADEM referred to the results of the aforementioned meetings 
and reconsidered the potential implementation of an inspection and 
maintenance (I/M) program, and Stage II vapor recovery controls.
    The conclusion drawn from ADEM's analysis of these controls was 
that implementing an I/M program is not practicable as a strategy to 
achieve attainment by the year 2003 because: (1) the implementation of 
an I/M program would require a modification to Alabama law; (2) full 
implementation of an I/M program could not be achieved by 2003 (the 
attainment year) and little or no emission reductions would be achieved 
by that year; and (3) the program would require significant funding 
(i.e., ``start-up'' costs) and human resources to implement.
    ADEM did not consider implementation of the Stage II controls 
because, in 1994, EPA promulgated regulations for Onboard Refueling 
Vapor Recovery and because modeling revealed that even if the Stage II 
program were implemented, the fuel control program would still be 
necessary. Implementation of a Stage II program would only provide VOC 
emission reductions of 2.09 TPD and no NOX emission 
reductions.
    In addition to evaluating the potential for NOX 
reductions from an I/M program, ADEM evaluated potential additional 
NOX emission reductions from various point source groups. Of 
the point source groups considered, only six of these point source 
groups have potentially significant NOX emissions that are 
reasonably evaluated for possible controls. These point source groups 
include the following: coke oven underfiring of coke by-product 
manufacturing; quenching process of coke by-product manufacturing; 
industrial internal combustion engines utilizing natural gas as a fuel; 
reheat furnaces at steel manufacturing sources; lime kilns at lime 
manufacturing sources; and cement kilns at cement manufacturing 
sources. After further analysis of each of the above sources, ADEM 
concluded that it was either not reasonable or practicable to further 
control these sources, or controls on available sources would not 
provide all the emission reductions needed. We concur with ADEM's 
assessment as described in the TSD.
    Based on the State's analysis of the cost-effectiveness and the 
time required to implement these measures, we agree that, other than 
those proposed in the attainment demonstration and those described in 
the TSD, there are no reasonable or practicable non-fuel control 
measures available to the State to achieve the 1-hour ozone NAAQS in a 
timely manner. Compared to all of the potentially available measures 
outlined in the TSD, the low-sulfur/low-RVP fuel is the most reasonable 
and practicable measure available to reduce the emissions from ozone 
precursor emissions for the Birmingham nonattainment area. The low-
sulfur/low-RVP fuel is readily available to the State because it is 
also being provided to the Atlanta nonattainment area. The benefits of 
this fuel program are already being felt in the Birmingham 
nonattainment area.
    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.

Is the Low-Sulfur/Low-RVP Program Necessary for the Birmingham 
Nonattainment Area To Achieve the 1-Hour Ozone NAAQS?

    Implementation of the low-sulfur/low-RVP fuel program will provide 
3.3 TPD of NOX and 7.0 TPD of VOC emission reductions for 
the Birmingham nonattainment area. Without the

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proposed fuel controls, the Birmingham nonattainment area subject to 
these controls would receive gasoline with a sulfur level in excess of 
300 ppm and a RVP of up to 7.8 psi during the summer months. The State, 
based on modeling results using EPA's Complex Model, estimates that the 
proposed low-sulfur/low-RVP program will reduce NOX 
emissions from automobiles by at least 6.2 percent and VOC emissions 
from automobiles by at least 3.6 percent. Thus, we concur with the 
State's conclusion that implementation of the low-sulfur/low-RVP fuel 
program will provide some or all of the emission reductions necessary 
for the Birmingham nonattainment area to achieve the ozone NAAQS in 
2003.

Proposed Action by EPA

    EPA is proposing to approve Alabama's low-sulfur/low-RVP fuel 
program into the federally enforceable SIP. The State has demonstrated 
that the fuel program will provide some or all of the NOX 
and VOC emission reductions needed to reduce ozone levels for the 
Birmingham nonattainment area. Additionally, the State has demonstrated 
necessity for a preemption waiver as required by section 211(c)(4)(C) 
of the Act. Without the program, the design values for the 
nonattainment area will continue to exceed the 1-hour ozone NAAQS. In 
the Birmingham attainment demonstration, the State examined control 
measures, not previously implemented for this nonattainment area, and 
concluded that, even with adoption of all reasonable and practicable 
non-fuel control measures, additional VOC and NOX reductions 
in the area are necessary to achieve the 1-hour ozone NAAQS. The State 
further demonstrated that the fuel control satisfies the requirements 
of section 110 and will supply some or all of the reductions needed to 
achieve the ozone NAAQS.
    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 SIP 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 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget. For this 
reason, this action is also not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use.'' (66 FR 28355, May 22, 2001.) This 
action merely proposes to approve state law as meeting federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Accordingly, the Administrator certifies that 
this 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 approves 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 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 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 Act. This 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 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 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 
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, Hydrocarbons, 
Intergovernmental relations, Ozone, Reporting and recordkeeping 
requirements.

    Dated: August 30, 2001.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 01-22735 Filed 9-10-01; 8:45 am]
BILLING CODE 6560-50-P