[Federal Register Volume 66, Number 238 (Tuesday, December 11, 2001)]
[Proposed Rules]
[Pages 63982-63985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30588]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[GA-47 -2; GA-55-2; GA-58-2-200208; FRL-7116-2]


Approval and Promulgation of Air Quality State Implementation 
Plans; Georgia: 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 State Implementation Plan 
(SIP) revision, submitted by the State of Georgia through the Georgia 
Environmental Protection Division (GAEPD), establishing low-sulfur and 
low-Reid Vapor Pressure (RVP) requirements for gasoline distributed in 
the 13-county Atlanta nonattainment area and 32 surrounding attainment 
counties. Georgia 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 Atlanta nonattainment 
area. EPA is approving Georgia's fuel requirements 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 Atlanta 
nonattainment area to achieve the 1-hour ozone NAAQS in a timely 
manner.

DATES: Comments should be received on or before January 25, 2002.

ADDRESSES: All comments should be addressed to: Lynorae Benjamin at the 
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. Air 
Protection Branch, Georgia Environmental Protection Division, Georgia 
Department of Natural Resources, 4244 International Parkway, Suite 120, 
Atlanta, Georgia 30354. Telephone (404) 363-7000.

FOR FURTHER INFORMATION CONTACT: Lynorae Benjamin, Air Quality Modeling 
and Transportation 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 approval of the Georgia fuel requirements into the SIP, as 
provided in section 211(c)(4)(C) of the Act. Georgia's fuel 
requirements are being implemented in two phases. The initial phase 
requires the low-sulfur/low-RVP gasoline sold in the 13-county Atlanta 
nonattainment area and 12 surrounding attainment counties during the 
regulatory control period (June 1 through September 15) each year 
through 2002. The second phase of the Georgia fuel program expands the 
low-sulfur/low-RVP requirements to an additional 20 attainment 
counties. The program becomes a year-round program in 2003, except that 
the RVP requirement applies only during the June 1 through September 15 
control period.

I. Analysis of State's Submittal

What Did the State Submit?

    On October 28, 1999, the State of Georgia, through the GAEPD, 
submitted an attainment demonstration for the 1-hour ozone NAAQS for 
the Atlanta nonattainment area for inclusion into the Georgia SIP. This 
submittal included a version of the low-sulfur/low-RVP fuel regulations 
that has subsequently been amended by the State, and submitted by the 
State to EPA in revised form in subsequent SIP revisions dated July 31, 
2000, and August 21, 2001. The version submitted on August 21, 2001, 
which is the subject of this proposed rulemaking, is the ``Gasoline 
Marketing Rule,'' provided in Georgia's Rules for Air Quality Control, 
Chapter 391-3-1.02(2) (bbb).
    On May 31, 2000, in support of its request for SIP approval of the 
State fuel regulations, GAEPD also submitted a demonstration that, in 
accordance with section 211(c)(4)(C) of the Act, the fuel control is 
necessary to achieve a NAAQS. On November 9, 2001, GAEPD submitted an 
updated ``necessity'' demonstration which reflected the revised motor 
vehicle emissions budget, the request for an attainment date extension 
from 2003 to 2004, and the revised Partnership for a Smog Free Georgia 
emissions calculations.

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

    The SIP submittals, including the rule for Georgia's low-sulfur/
low-RVP fuel control program, meet the requirements outlined in section 
110 and Part D of Title I of the CAA amendments and 40 CFR part 51 
(Requirements for Preparation, Adoption and Submittal of Implementation 
Plans). The current version of the fuel rule was formally adopted by 
the GAEPD Board on June 27, 2001, and became effective July 18, 2001.

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

    As noted above, on October 28, 1999, GAEPD submitted for EPA 
approval an ozone attainment demonstration for the Atlanta 
nonattainment area, which relies upon a number of control measures, 
including the low-sulfur/low RVP fuel program, to support the 
demonstration. On December 16, 1999, EPA proposed to approve the 
October 28, 1999, attainment demonstration for the Atlanta 
nonattainment area, as well as the underlying rule revisions with the 
exception of the Georgia fuel rule (the subject of this proposed 
rulemaking) (see 64 FR 70478). EPA's proposed approval was based on the 
condition that the GAEPD satisfy certain requirements.
    Subsequently, the GAEPD submitted revisions to the Atlanta 
attainment demonstration on January 31, 2000, and July 31, 2000, along 
with revisions to State rules supporting the attainment demonstrations. 
Those rule revisions were proposed for approval on December 18, 2000 
(see 65 FR 79034). No adverse comments were received pertaining to any 
rule revisions.
    On July 10, 2001, EPA granted final approval to the rule revisions 
contained

[[Page 63983]]

in the December 16, 1999, and December 18, 2000, proposals (see 66 FR 
35906). The final rule noted that EPA action for the Atlanta attainment 
demonstration would be taken in a separate notice.
    On July 17, 2001, GAEPD submitted another revised attainment 
demonstration. The attainment demonstration continues to rely in part 
on the expected emissions reductions that will be achieved by the low-
sulfur/low-RVP fuel control being proposed for SIP approval in this 
action. Based on the revised Atlanta attainment demonstration, 
submitted on July 17, 2001, EPA is currently proposing approval for the 
Atlanta attainment demonstration in a separate notice.

What are the Clean Air Act Requirements?

    This approval action is being taken 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 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.
    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;
    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 associated 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 includes two phases of 
fuel controls that will eventually apply in the 13-county Atlanta 
nonattainment area and 32 surrounding attainment counties. Described 
below are the primary features of these phases of control. The first 
phase of fuel controls apply to the 13-county Atlanta nonattainment 
area (highlighted in bold) and 12 surrounding attainment counties which 
include the following: Barrow, Bartow, Butts, Carroll, Cherokee, 
Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, 
Fulton, Gwinnett, Hall, Haralson, Henry, Jackson, Newton, Paulding, 
Pickens, Rockdale, Spalding, and Walton. The controls for the first 
phase of the State's program, effective through 2002, require that all 
gasoline sold during the control period (June 1 through September 15) 
in these counties contain a maximum RVP of 7.0 pounds per square inch 
(psi) and maximum volume-weighted seasonal average sulfur level of 150 
parts per million (ppm) (by weight) and, effective April 1, 2001, a 
maximum per-gallon volume-weighted sulfur level of 500 ppm (by weight). 
For ethanol blends meeting specified conditions, Georgia's regulations 
limit RVP to a maximum of 8.0 psi.
    The second phase of fuel controls apply to the aforementioned 
counties and 20 additional attainment counties surrounding the Atlanta 
nonattainment area. These additional counties include: Banks, 
Chattooga, Clarke, Floyd, Gordon, Heard, Jasper, Jones, Lamar, Lumpkin, 
Madison, Meriwether, Monroe, Morgan, Oconee, Pike, Polk, Putnam, Troup, 
and Upson. The fuel controls for the second phase of the State's 
program are effective April 1, 2003. Under this phase of the State's 
program, the RVP requirement is maintained and extended to the 
additional counties but otherwise does not change. The sulfur 
requirements, however, become more stringent annual averages. The 
maximum annual average sulfur level allowed in gasoline is reduced to 
30 ppm (by weight); the per-gallon limit is reduced to 150 ppm (by 
weight). Effective June 1, 2004, the seasonal per-gallon sulfur limit 
is reduced to 80 ppm (by weight) during the June 1 through September 15 
control period.

How Will the Program be Enforced?

    EPA finds that the fuel rule contains adequate enforcement 
provisions. GAEPD 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. GAEPD 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'' (contained in 
Appendix XXX of the attainment demonstration) or by some EPA-approved 
modification of this sampling plan. Samples, the number to be 
determined in coordination with GAEPD and EPA, will be collected and 
analyzed for RVP and sulfur throughout the control period. Any sample 
that exceeds the limits specified in the fuel rule will be considered a 
violation and may require an enforcement action. If an enforcement 
action is warranted, GAEPD would use one of two approaches. Upon 
learning of a violation, the GAEPD will issue a notice of violation and 
negotiate a consent order. If a consent order cannot be negotiated, 
GAEPD will issue an administrative order. Another provision of the fuel 
rule provides that the seasonal sulfur average will not exceed 140 ppm 
when the sulfur limit is 150 ppm. If the seasonal sulfur average 
exceeds 140 ppm, GAEPD will require 100 percent terminal testing in 
lieu of testing at the retail level for future control periods. Also, 
when Georgia's sulfur requirement is reduced to 30 ppm, 30 ppm is the 
``trigger'' that will require 100 percent terminal testing in lieu of 
testing at the retail level for future control periods. Additional 
commitments related to the enforcement and implementation of the 
Georgia fuel program are provided in the transmittal letter for the 
November 9, 2001, fuel control supplemental ``necessity'' 
demonstration.

Will the Low-Sulfur/Low-RVP Fuel Control Program Provide Needed 
Emission Reductions?

    The State's modeling for this attainment demonstration shows that, 
even with implementation of all reasonable and practicable measures, 
including the low-sulfur/low-RVP fuel program, the design value for the 
nonattainment area will just barely meet the 1-hour ozone standard. 
Please refer to the accompanying TSD for more information about the 
photochemical modeling and the weight-of-evidence (WOE) analysis. Once 
fully implemented, the low-sulfur/low-RVP fuel program will provide 
42.93 tons per day (TPD) of NOX and 24.16 TPD of VOC 
emission reductions. Thus, the low-sulfur/low-RVP fuel program will 
provide emissions reductions needed for the Atlanta nonattainment area 
to achieve the 1-hour ozone NAAQS.
    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

[[Page 63984]]

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 NOX 
and VOC standards that are in use. The paper also pointed out that 
sulfur control will provide additional NOX 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, lowering RVP can also reduce VOCs in 
vehicle exhaust.
    Reducing these emissions in both the nonattainment area and the 
surrounding attainment areas will help address the ozone problem in the 
Atlanta nonattainment area. Specifically, lowering NOX and 
VOC emissions through the Atlanta low-sulfur/low-RVP program will 
benefit the Atlanta nonattainment area by reducing NOX and 
VOCs emitted within the 13-county nonattainment area, and by vehicles 
that originate in the 32-county attainment area and drive into the 
nonattainment area. Please refer to the TSD for more information on the 
commuting patterns for the area.

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

    The State conducted thorough analyses of potential non-fuel control 
measures available for the Atlanta nonattainment area. The attainment 
demonstration for the Atlanta nonattainment area contains a detailed 
discussion of point and other source controls that are required to help 
achieve attainment of the 1-hour ozone NAAQS in the Atlanta 
nonattainment area. Many of these control measures were analyzed in a 
study, ``The Direct Cost of Controlling NOX and VOC 
emissions in Atlanta,'' completed by the Georgia State University on 
November 1, 1997. Following the completion of this study, the State 
made its own review of possible control measures, including its review 
of ``reasonably available control measures'' (RACM) as required under 
the Act. The State's summary of its review of non-fuel control measures 
is contained in Attachment 3 to the November 9, 2001 ``necessity'' 
demonstration, which is available in the docket for this rulemaking. 
The discussion below briefly describes the State's evaluation of the 
reasonableness and practicability of the non-fuel alternatives that are 
potentially available after adopting those control measures already 
included in the revised attainment demonstration. For more detail on 
the control measures that have already been included in the revised 
attainment demonstration, and on the State's evaluation of remaining 
potential alternatives, see the TSD for this rulemaking.
    Each potential control option was evaluated according to: (1) The 
State's authority to implement controls; (2) the amount of 
NOX reductions; (3) the amount of VOC reductions; (4) 
whether a similar control measure is already being implemented; (5) the 
cost-effectiveness of the controls; (6) whether SIP credit has already 
been taken for the measure; and (7) whether the measure can be 
implemented by May 1, 2003 (since measures implemented after this date 
cannot advance the 2004 attainment date).
    GAEPD considered the following source categories for additional VOC 
and NOX control measures for the purposes of evaluating the 
``necessity'' of the fuel control measure: (for point sources) 
furniture and fixtures manufacturing facilities, food and kindred 
products facilities, commercial printing facilities, chemical products 
facilities, rubber and plastic facilities, paper and allied products 
facilities, primary metal facilities, fabricated metal products 
facilities, non-electrical machinery facilities, electrical equipment 
facilities, petroleum refining facilities, asphalt and coating 
facilities, air transportation facilities, transportation equipment 
facilities, stone, clay, and glass products facilities, hydraulic 
cement facilities, and sewage plants; (for area sources) auto 
refinishing operations, surface cleaning and preparation operations, 
solvent degreasing operations, new residential natural gas water 
heaters, certain commercial and/or industrial watertube and firetube 
boilers and pesticide application; (for on-road mobile) elimination of 
vehicle I/M waivers and exemptions, transportation demand management 
and vehicle usage disincentives; (for nonroad mobile) railroad switcher 
engines, specific recreational vehicle types and/or pleasure craft, and 
lawn and garden equipment.
    After further analysis of potential controls on each of the above 
sources, GAEPD concluded that it was not reasonable or practicable to 
further control these sources. Specifically, for many of the sources 
listed above GAEPD stated that the time required to implement controls 
is unpredictable because legislative action authorizing such regulation 
by GAEPD would be required, or the number of facilities and potential 
discharge points affected by these control measures would require a 
tremendous increase in GAEPD resources to implement and ensure 
compliance.
    Based on the State's analysis of the potentially available 
alternatives, we agree that 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. Individually, none of these controls 
would supply enough emissions reductions to displace the need for the 
fuel measure. In order to replace the needed VOC reductions provided by 
the fuel measure, the State would need to implement nearly all of the 
potential controls which would require substantial resources and may 
not be possible in the time allowed, i.e., by 2004. Even if the State 
did adopt and implement all of the potentially available NOX 
control measures, the State would not be able to replace the needed 
NOX reductions provided by the fuel measure. Compared to all 
of the potentially available measures outlined in the TSD, the low-
sulfur/low-RVP fuel, which has already been implemented in its first 
phase, is the most reasonable and practicable measure available to 
reduce the emissions from ozone precursors for the Atlanta 
nonattainment area. Low-sulfur/low-RVP fuel is readily available to the 
State because it is also being provided to the Birmingham, Alabama 
nonattainment area. The benefits of this fuel program are already being 
felt in the Atlanta nonattainment area.

Proposed Action by EPA

    EPA is proposing to approve Georgia's low-sulfur/low-RVP fuel 
program into the SIP. The State has demonstrated necessity as required 
by section 211(c)(4)(C) of the Act. Without the fuel control program in 
both the nonattainment area and in the surrounding attainment areas, 
the design values for the nonattainment area will continue to exceed 
the 1-hour ozone NAAQS. In the Atlanta attainment demonstration, the 
State examined control measures, not previously implemented, 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 reductions needed to achieve the ozone 
NAAQS.

[[Page 63985]]

II. 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. 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 proposed action merely approves state law as meeting federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Accordingly, the 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 (Pub. L. 104-4). 
This proposed rule also does not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes, as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), nor 
will it 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 proposes to approve a state rule 
implementing a federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the CAA. 
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 CAA. 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 CAA. 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 proposed approval of the Georgia fuel control necessity 
demonstration 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: November 30, 2001.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 01-30588 Filed 12-10-01; 8:45 am]
BILLING CODE 6560-50-P