[Federal Register Volume 71, Number 249 (Thursday, December 28, 2006)]
[Proposed Rules]
[Pages 78123-78127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-22309]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 80 and 86

[EPA-HQ-OAR-2006-0363; FRL-8263-5]
RIN 2060-AN66


Amendment to Tier 2 Vehicle Emission Standards and Gasoline 
Sulfur Requirements: Partial Exemption for U.S. Pacific Island 
Territories

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed Rule.

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SUMMARY: EPA is proposing to exempt the three U.S. Pacific Island 
Territories--American Samoa, Guam, and the Commonwealth of the Northern 
Mariana Islands (C.N.M.I.)--from the gasoline sulfur requirements that 
EPA promulgated in the Tier 2 motor vehicle rule. The Governor of 
American Samoa petitioned us for an exemption from the Tier 2 gasoline 
sulfur requirement because of the potential for gasoline shortages, the 
added cost, and the minimal air quality benefits the Tier 2 gasoline 
sulfur requirement would provide to American Samoa. Representatives of 
the Governors of Guam and C.N.M.I. have also requested an exemption 
referencing the petition submitted by American Samoa. The Far East 
market, primarily Singapore, supplies gasoline to the U.S. Pacific 
Island Territories. The Tier 2 sulfur standard effectively requires 
special gasoline shipments, which would increase the cost and could 
jeopardize the security of the gasoline supply to the Pacific Island 
Territories. The air quality in American Samoa, Guam, and C.N.M.I. is 
generally pristine, due to the wet climate, strong prevailing winds, 
and considerable distance from any pollution sources. We recognize that 
exempting the U.S. Pacific Island Territories from the gasoline sulfur 
standard will result in smaller emission reductions. However, Tier 2 
vehicles using higher sulfur gasoline still emit 30% less hydrocarbons 
and 60% less NOX than Tier 1 vehicles and negative effects 
on the catalytic converter due to the higher sulfur levels are, in many 
cases, reversible. Additionally, these reduced benefits are acceptable 
due to the pristine air quality, the fact that gasoline quality will 
not change, and the cost and difficulty of consistently acquiring Tier 
2 compliant gasoline. The Tier 2 motor vehicle rule also sets standards 
for vehicle emissions. Vehicles in use on the U.S. Pacific Island 
Territories will not be exempt from the Tier 2 vehicle emission 
standards. However, additional flexibility will be afforded due to the 
lack of low sulfur gasoline.

DATES: Comments must be received on or before January 29, 2007. Request 
for a public hearing must be received by January 12, 2007. If we 
receive a request for a public hearing, we will publish information 
related to the timing and location of the hearing and the timing of a 
new deadline for public comments.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2006-0363, by one of the following methods:
     http://www.regulations.gov: Follow the on-line 
instructions for submitting comments.
     Mail: Air Docket, Environmental Protection Agency, 
Mailcode: 6102T, 1200 Pennsylvania Ave., NW., Washington, DC, 20460, 
Attention Docket ID No. EPA-HQ-OAR-2006-0363. In addition, please mail 
a copy of your comments on the information collection provisions to the 
Office of Information and Regulatory Affairs, Office of Management and 
Budget (OMB), Attn: Desk Officer for EPA, 725 17th St., NW., 
Washington, DC 20503.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2006-0363. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site 
is an ``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly

[[Page 78124]]

to EPA without going through http://www.regulations.gov your e-mail 
address will be automatically captured and included as part of the 
comment that is placed in the public docket and made available on the 
Internet. If you submit an electronic comment, EPA recommends that you 
include your name and other contact information in the body of your 
comment and with any disk or CD-ROM you submit. If EPA cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters, any form of 
encryption, and be free of any defects or viruses.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the Air Docket, EPA/
DC, EPA West, Room B102, 1301 Constitution Ave., NW., Washington, DC. 
The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday 
through Friday, excluding legal holidays. The telephone number for the 
Public Reading Room is (202) 566-1744, and the telephone number for the 
Air Docket is (202) 566-1742.


    Note: The EPA Docket Center suffered damage due to flooding 
during the last week of June 2006. The Docket Center is continuing 
to operate. However, during the cleanup, there will be temporary 
changes to Docket Center telephone numbers, addresses, and hours of 
operation for people who wish to make hand deliveries or visit the 
Public Reading Room to view documents. Consult EPA's Federal 
Register notice at 71 FR 38147 (July 5, 2006) or the EPA Web site at 
http://www.epa.gov/epahome/dockets.htm for current information on 
docket operations, locations and telephone numbers. The Docket 
Center's mailing address for U.S. mail and the procedure for 
submitting comments to http://www.regulations.gov are not affected 
by the flooding and will remain the same.


FOR FURTHER INFORMATION CONTACT: Sean Hillson, Office of Transportation 
and Air Quality, Transportation and Regional Programs Division, 
Mailcode AASMCG, Environmental Protection Agency, 2000 Traverwood 
Drive, Ann Arbor, MI 48105; telephone number: (734) 214-4789; fax 
number: (734) 214-4052; e-mail address: [email protected].

SUPPLEMENTARY INFORMATION: In the ``Rules and Regulations'' section of 
today's Federal Register, we are making these revisions as a direct 
final rule without prior proposal because we view these revisions as 
noncontroversial and anticipate no adverse comment.
    We have explained our reasons for these revisions in the preamble 
to the direct final rule. For further information, please see the 
information provided in the preamble to the direct final rule. If we 
receive no adverse comment, we will not take further action on this 
proposed rule. If we receive adverse comment on the rule, or on one or 
more distinct actions in the rule, we will withdraw the direct final 
rule, or the portions of the rule receiving adverse comment. We will 
address all public comments in a subsequent final rule based on this 
proposed rule. We will not institute a second comment period on this 
action. Any parties interested in commenting must do so at this time.
    The contents of this preamble are listed in the following outline:

I. General Information
II. Summary of Rule
III. Statutory and Executive Order Reviews
IV. Statutory Provisions and Legal Authority

I. General Information

A. Does this Action Apply to Me?

    This action will affect you if you produce new motor vehicles, 
alter individual imported motor vehicles to address U.S. regulation, or 
convert motor vehicles to use alternative fuels for use in the U.S. 
Pacific Island Territories--American Samoa, Guam, and Commonwealth of 
the Northern Mariana Islands (C.N.M.I.). It will also affect you if you 
produce, import, distribute, or sell gasoline fuel for use in the U.S. 
Pacific Island Territories. The following table gives some examples of 
entities that may have to follow the regulations. But because these are 
only examples, you should carefully examine the regulations in 40 CFR 
parts 80 and 86. If you have questions, call the person listed in the 
FOR FURTHER INFORMATION CONTACT section of this preamble.

------------------------------------------------------------------------
                                                NAICS codes   SIC codes
  Examples of potentially regulated entities        \a\          \b\
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Motor Vehicle Manufacturers...................       336111         3711
                                                     336112
                                                     336120
Alternative Fuel Vehicle Converters...........       336311         3592
                                                     336312         3714
                                                     422720         5172
                                                     454312         5984
                                                     811198         7549
                                                     541514         8742
                                                     541690         8931
Commercial Importers of Vehicles and Vehicle         811112         7533
 Components...................................
                                                     811198         7549
                                                     541514         8742
Petroleum Refiners............................       324110         2911
Gasoline Marketers and Distributers...........       422710         5171
                                                     422720         5172
Gasoline Carriers.............................       484220         4212
                                                     484230        4213
------------------------------------------------------------------------
\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC).


[[Page 78125]]

B. What Should I Consider as I Prepare My Comments for EPA?

1. Submitting CBI
    Do not submit confidential business information to EPA through 
http://www.regulations.gov or e-mail. Clearly mark the part or all of 
the information that you claim to be CBI. For CBI information in a disk 
or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM 
as CBI and then identify electronically within the disk or CD ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
2. Tips for Preparing Your Comments
    When submitting comments, remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree; suggest alternatives 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

II. Summary of Rule

    This proposed rule would exempt American Samoa, Guam and the 
Commonwealth of the Northern Mariana Islands (C.N.M.I.) from the 
gasoline sulfur requirements that EPA promulgated in the Tier 2 motor 
vehicle rule. The proposed rule would not exempt American Samoa, Guam, 
and C.N.M.I. from the Tier 2 vehicle emission standards. However, we 
are providing additional flexibilities for Tier 2 vehicles considering 
low sulfur gasoline is unavailable in the territories. These 
flexibilities (1) allow additional preconditioning prior to conducting 
exhaust emission tests (to remove sulfur deposits on the catalyst and 
emission control system components) and (2) allow special OBD system 
considerations to account for higher levels of sulfur present in 
gasoline. Exempting these U.S. Pacific Island Territories from the 
gasoline sulfur standard and providing flexibilities to the vehicle 
regulations for Tier 2 vehicles located in the U.S. Pacific Island 
Territories would have minimal, if any, impact on air quality.
    For additional discussion of the proposed rule changes, see the 
direct final rule EPA has published in the ``Rules and Regulations'' 
section of today's Federal Register. This proposal incorporates by 
reference all the reasoning, explanation, and regulatory text from the 
direct final rule.

III. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order (EO) 12866 (58 FR 51735, October 4, 1993) and 
is therefore not subject to OMB review.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
This rule does not create new requirements. Its purpose is to relieve a 
burden imposed on the three Pacific Island Territories.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small 
entities, small entity is defined as: (1) A small business as defined 
by the Small Business Administration's (SBA) regulations at 13 CFR 
121.201; (2) a small governmental jurisdiction that is a government of 
a city, county, town, school district or special district with a 
population of less than 50,000; and (3) a small organization that is 
any not-for-profit enterprise which is independently owned and operated 
and is not dominant in its field.
    After considering the economic impacts of today's rule on small 
entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. This rule 
would exempt the three U.S. Pacific Island Territories--American Samoa, 
Guam and the Commonwealth of the Northern Mariana Islands--from the 
Tier 2 rule for gasoline sulfur requirements and extend existing 
related flexibilities to the vehicle emission standards for the three 
territories. It does not create new requirements. Its purpose is to 
relieve a burden imposed on the three U.S. Pacific Island Territories. 
We have therefore concluded that today's rule will relieve regulatory 
burden for all affected small entities.
    We continue to be interested in the potential impacts of the 
proposed rule on small entities and welcome comments on issues related 
to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.L. 
104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules

[[Page 78126]]

with ``Federal mandates'' that may result in expenditures to State, 
local, and tribal governments, in the aggregate, or to the private 
sector, of $100 million or more in any one year. Before promulgating an 
EPA rule for which a written statement is needed, section 205 of the 
UMRA generally requires EPA to identify and consider a reasonable 
number of regulatory alternatives, and adopt the least costly, most 
cost-effective or least burdensome alternative that achieves the 
objectives of the rule. The provisions of section 205 do not apply when 
they are inconsistent with applicable law. Moreover, section 205 allows 
EPA to adopt an alternative other than the least costly, most cost-
effective or least burdensome alternative if the Administrator 
publishes with the final rule an explanation why that alternative was 
not adopted. Before EPA establishes any regulatory requirements that 
may significantly or uniquely affect small governments, including 
tribal governments, it must have developed under section 203 of the 
UMRA a small government agency plan. The plan must provide for 
notifying potentially affected small governments, enabling officials of 
affected small governments to have meaningful and timely input in the 
development of EPA regulatory proposals with significant Federal 
intergovernmental mandates, and informing, educating, and advising 
small governments on compliance with the regulatory requirements.
    Today's rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, or tribal 
governments or the private sector. This rule imposes no enforceable 
duty on any State, local or tribal governments or the private sector. 
It does not create new requirements. Its purpose is to relieve a burden 
imposed on the three Pacific Island Territories.

E. Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that 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.''
    This final rule does not have federalism implications. It 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. Thus, Executive Order 13132 does 
not apply to this rule. Although section 6 of Executive Order 13132 
does not apply to this rule, EPA did consult with representatives of 
the U.S. Pacific Island Territories in developing this rule. A summary 
of the concerns was raised during that consultation and EPA's response 
to those concerns is provided in previous sections of this preamble.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This rule does not have 
tribal implications, as specified in Executive Order 13175. This rule 
would exempt the three Pacific Island Territories--American Samoa, Guam 
and the Commonwealth of the Northern Mariana Islands (C.N.M.I.)--from 
the Tier 2 rule for gasoline sulfur requirements and extend existing 
related flexibilities to the vehicle emission standards for the three 
territories. It applies only to the three U.S. Pacific Island 
Territories. Thus, Executive Order 13175 does not apply to this rule.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045: ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that: (1) Is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the environmental health 
or safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency.
    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Order has the 
potential to influence the regulation. This rule is not subject to 
Executive Order 13045 because it does not establish an environmental 
standard intended to mitigate health or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355 (May 22, 2001)) because it is not a 
significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note) 
directs EPA to use voluntary consensus standards in its regulatory 
activities unless to do so would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
voluntary consensus standards bodies. The NTTAA directs EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This proposed rulemaking does not involve technical standards. 
Therefore, EPA is not considering the use of any voluntary consensus 
standards.
    EPA welcomes comments on this aspect of the proposed rulemaking 
and, specifically, invites the public to identify potentially-
applicable voluntary consensus standards and to explain why such 
standards should be used in this regulation.

IV. Statutory Provisions and Legal Authority

    Statutory authority for today's final rule is found in the Clean 
Air Act, 42 U.S.C. 7401 et seq., in particular, sections 325, 211 and 
202 of the Act, 42 U.S.C. 7521. This rule is being promulgated under 
the administrative and procedural provisions of Clean Air Act section 
307(d), 42 U.S.C. 7607(d).

[[Page 78127]]

List of Subjects

40 CFR Part 80

    Environmental protection, Administrative practice and procedure, 
Gasoline, Reporting and recordkeeping requirements.

40 CFR Part 86

    Environmental protection, Administrative practice and procedure, 
Motor vehicle pollution.

    Dated: December 21, 2006.
Stephen L. Johnson,
Administrator.
[FR Doc. E6-22309 Filed 12-27-06; 8:45 am]
BILLING CODE 6560-50-P