[Federal Register Volume 78, Number 112 (Tuesday, June 11, 2013)]
[Proposed Rules]
[Pages 34966-34969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13828]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2012-0891; FRL-9823-2]


Approval and Promulgation of Air Quality Implementation Plans; 
Wisconsin; Removal of Gasoline Vapor Recovery From Southeast Wisconsin

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP) 
revision submitted by the Wisconsin Department of Natural Resources 
(WDNR) on November 12, 2012, concerning the state's Stage II vapor 
recovery (Stage II) program in southeast Wisconsin. The revision 
removes Stage II requirements as a component of the Wisconsin ozone 
SIP. The submittal also includes a demonstration under section 110(l) 
of the Clean Air Act (CAA) that addresses emissions impacts associated 
with the removal of the program.

DATES: Comments must be received on or before July 11, 2013.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2012-0891, by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: [email protected].
    3. Fax: (312) 692-2450.
    4. Mail: Pamela Blakley, Chief, Control Strategies Section, Air 
Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 West 
Jackson Boulevard, Chicago, Illinois 60604.
    5. Hand Delivery: Pamela Blakley, Chief, Control Strategies 
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection 
Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604. Such 
deliveries are only accepted during the Regional Office normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information. The Regional Office official hours of business are 
Monday through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal 
holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2012-0891. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
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 www.regulations.gov or email. The 
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 email comment 
directly to EPA without going through www.regulations.gov your email 
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. For additional 
instructions on submitting comments, go to section I of the 
SUPPLEMENTARY INFORMATION section of this document.
    Docket: All documents in the docket are listed in the 
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 www.regulations.gov or in hard copy at the Environmental Protection 
Agency, Region 5, Air and Radiation Division, 77 West Jackson 
Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 
a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. 
We recommend that you telephone Francisco J. Acevedo, Environmental 
Protection Specialist, at (312) 886-6061 before visiting the Region 5 
office.

FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Environmental 
Protection Specialist, Control Strategies Section, Air Programs Branch 
(AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 886-6061, 
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean

[[Page 34967]]

EPA. This supplementary information section is arranged as follows:

I. What should I consider as I prepare my comments for EPA?
II. Background
III. What changes have been made to the Wisconsin Stage II Vapor 
Recovery Program?
IV. What is EPA's analysis of the state's submittal?
V. What action is EPA proposing to take?
VI. Statutory and Executive Order Reviews

I. What should I consider as I prepare my comments for EPA?

    When submitting comments, remember to:
    1. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date, and page number).
    2. Follow directions--EPA may ask you to respond to specific 
questions or organize comments by referencing a Code of Federal 
Regulations (CFR) part or section number.
    3. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    4. Describe any assumptions and provide any technical information 
and/or data that you used.
    5. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    6. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    7. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    8. Make sure to submit your comments by the close of the comment 
period.

II. Background

    Stage II programs were adopted by some states beginning in the 
1980s to meet the ozone National Ambient Air Quality Standards (NAAQS). 
Stage II and onboard refueling vapor recovery systems (ORVR) are two 
types of emission control systems that capture fuel vapors from vehicle 
gas tanks during refueling. Stage II systems are specifically installed 
at gasoline dispensing facilities (GDF) and capture the refueling fuel 
vapors at the gasoline pump nozzle. The system carries the vapors back 
to the underground storage tank at the GDF to prevent the vapors from 
escaping to the atmosphere. ORVR systems are carbon canisters installed 
directly on automobiles to capture the fuel vapors evacuated from the 
gasoline tank before they reach the nozzle. The fuel vapors captured in 
the carbon canisters are then combusted in the engine when the 
automobile is in operation.
    Stage II and vehicle ORVR were initially both required by the 1990 
Amendments to the CAA under sections 182(b)(3) and 202(a)(6), 
respectively. In some areas Stage II has been in place for over 25 
years, but was not widely implemented by the states until the early to 
mid-1990s as a result of the CAA requirements for moderate, serious, 
severe, and extreme ozone nonattainment areas and for states in the 
Northeast Ozone Transport Region (OTR) under CAA section 184(b)(2). CAA 
section 202(a)(6) required EPA to promulgate regulations for ORVR for 
light-duty vehicles (passenger cars). The EPA adopted these 
requirements in 1994, at which point moderate ozone nonattainment areas 
were no longer subject to the section 182(b)(3) Stage II requirement. 
However, some moderate areas retained Stage II requirements to provide 
a control method to comply with rate-of-progress emission reduction 
targets. ORVR equipment has been phased in for new passenger vehicles 
beginning with model year 1998, and starting in 2001 for light-duty 
trucks and most heavy-duty gasoline-powered vehicles. ORVR equipment 
has been installed on nearly all new gasoline-powered light-duty 
vehicles, light-duty trucks and heavy-duty vehicles since 2006.
    During the phase-in of ORVR controls, Stage II has provided 
volatile organic compound (VOC) reductions in ozone nonattainment areas 
and certain attainment areas of the OTR. Congress recognized that ORVR 
and Stage II would eventually become largely redundant technologies, 
and provided authority to the EPA to allow states to remove Stage II 
from their SIPs after EPA finds that ORVR is in widespread use. 
Effective May 16, 2012, the date the final rule was published in the 
Federal Register (77 FR 28772), EPA determined that ORVR is in 
widespread nationwide use for control of gasoline emissions during 
refueling of vehicles at GDFs. Currently, more than 75 percent of 
gasoline refueling nationwide occurs with ORVR-equipped vehicles, so 
Stage II programs have become largely redundant control systems and 
Stage II systems achieve an ever declining emissions benefit as more 
ORVR-equipped vehicles continue to enter the on-road motor vehicle 
fleet.\1\ EPA also exercised its authority under CAA section 202(a)(6) 
to waive certain Federal statutory requirements for Stage II gasoline 
vapor recovery at GDFs. This decision exempts all new ozone 
nonattainment areas classified serious or above from the requirement to 
adopt Stage II control programs. Similarly, any state currently 
implementing Stage II programs may submit SIP revisions that, once 
approved by EPA, would allow for the phase out of Stage II control 
systems.
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    \1\ In areas where certain types of vacuum-assist Stage II 
systems are used, the differences in operational design 
characteristics between ORVR and some configurations of these Stage 
II systems result in the reduction of overall control system 
efficiency compared to what could have been achieved relative to the 
individual control efficiencies of either ORVR or Stage II emissions 
from the vehicle fuel tank.
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III. What changes have been made to the Wisconsin Stage II Vapor 
Recovery Program?

    Wisconsin originally submitted a SIP revision to EPA on November 
18, 1992, to satisfy the requirement of section 182(b)(3) of the CAA. 
The revision applied to the counties of Kenosha, Kewanee, Manitowoc, 
Milwaukee, Ozaukee, Racine, Sheboygan, Washington and Waukesha and was 
incorporated within the WDNR's 1993-94 ozone 15% Control Plan. EPA 
fully approved Wisconsin's Stage II program on August 13, 1993 (53 FR 
43080), including the program's legal authority and administrative 
requirements found in Section 285.31 of the Wisconsin Statutes and 
Chapter NR 420.045 of the Wisconsin Administrative Code.
    On November 12, 2012, WDNR submitted a SIP revision requesting the 
removal of Stage II requirements under NR 420.045 of the Wisconsin 
Administrative Code from the Wisconsin ozone SIP. To support the 
removal of the Stage II requirements, the revision included copies of 
2011 Wisconsin Act 196 enacted on April 2, 2012 authorizing the 
termination of Stage II requirements in Wisconsin; a summary of 
MOVES2010b modeling results and Wisconsin specific calculations based 
on EPA guidance used to calculate program benefits and demonstrate 
widespread use of ORVR in southeast Wisconsin; and a section 110(l) 
demonstration that includes offset emission credits. WDNR held a public 
hearing on the Wisconsin Stage II SIP revision on October 8, 2012, in 
Waukesha, Wisconsin and allowed for written public comments until 
October 12, 2012.

[[Page 34968]]

IV. What is EPA's analysis of the state's submittal?

    Revisions to SIP-approved control measures must meet the 
requirements of CAA section 110(l) to be approved by EPA. Section 
110(l) states: ``The Administrator shall not approve a revision of a 
plan if the revision would interfere with any applicable requirement 
concerning attainment and reasonable further progress (as defined in 
section 171), or any other applicable requirement of this Act.''
    EPA interprets section 110(l) to apply to all requirements of the 
CAA and to all areas of the country, whether attainment, nonattainment, 
unclassifiable, or maintenance for one or more of the six criteria 
pollutants. EPA also interprets section 110(l) to require a 
demonstration addressing all criteria pollutants whose emissions and/or 
ambient concentrations may change as a result of the SIP revision. In 
the absence of an attainment demonstration, to demonstrate no 
interference with any applicable NAAQS or requirement of the CAA under 
section 110(l), EPA believes it is appropriate to allow states to 
substitute equivalent emissions reductions to compensate for any change 
to a SIP-approved program, as long as actual emissions in the air are 
not increased. ``Equivalent'' emissions reductions mean reductions 
which are equal to or greater than those reductions achieved by the 
control measure approved in the SIP. To show that compensating 
emissions reductions are equivalent, modeling or adequate justification 
must be provided. The compensating, equivalent reductions must 
represent actual, new emissions reductions achieved in a 
contemporaneous time frame to the change of the existing SIP control 
measure, in order to preserve the status quo level of emission in the 
air. In addition to being contemporaneous, the equivalent emissions 
reductions must also be permanent, enforceable, quantifiable, and 
surplus to be approved into the SIP.
    The Wisconsin Stage II SIP revision includes a 110(l) demonstration 
that uses equivalent emissions reductions to compensate for emission 
reduction losses resulting from the removal of Stage II program 
requirements before ORVR is in widespread use in southeast Wisconsin. 
WDNR has calculated that by 2016, ORVR will be in widespread use in 
southeast Wisconsin and the absence of the Wisconsin Stage II program 
after 2016 would not result in a net VOC emissions increase compared to 
the continued utilization of this emissions control technology. The 
emission reduction losses resulting from removing Stage II before 2016 
are transitional and relatively small since ORVR-equipped vehicles will 
continue to phase into the fleet over the coming years.
    WDNR's calculation indicates a maximum potential loss of 0.02 to 
0.70 tons per summer day (tpsd) from 2012 through 2015, were the 
decommissioning of existing Stage II systems to occur completely during 
a specified year. However, decommissioning is scheduled to occur over a 
four-year period from 2012 through 2015. This extended period was taken 
into consideration to account for the costs and timing associated with 
replacement equipment and the decommissioning cost process. Table 1 
below summarizes WDNR's emissions calculations of the yearly emission 
reduction losses during the Stage II decommissioning period between 
2012 and 2015 in tpsd and tons per year (tpy) and highlights the 
emissions difference that needs to be addressed as part of the 110(l) 
demonstration.

     Table 1--(VOC Emissions Offsets Needed in Southeast Wisconsin)
------------------------------------------------------------------------
                                         2012        2013        2015
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Maximum Potential Loss of VOC        0.67-0.70    0.40-0.42   0.021-0.02
 Emission Credits (tpsd).                                      2
Percent Stage II Throughput          20%          50%         90%
 Decommissioned.
Tons per Summer Day Lost VOC Credit  0.134-0.140  0.200-0.21  0.019-0.02
 (tpsd).                                           0           0
Tons per Year Lost VOC Credit (tpy)  42.9-44.8    64.0-67.2   6.1-6.4
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    The implementation of the Stage II program in southeast Wisconsin 
has resulted in reductions of VOC emissions. VOC contributes to the 
formation of ground-level ozone. Thus the potential increase in VOC 
needs to be offset with equivalent (or greater) emissions reductions 
from another control measure in order to demonstrate non-interference 
with the 8-hour ozone NAAQS.
    On June 6, 2012, the WDNR submitted a SIP revision related to the 
state's vehicle inspection and maintenance (I/M) program. As part of 
that submittal, WDNR provided VOC and oxides of nitrogen 
(NOX) emission credits to offset changes to the SIP approved 
I/M program. These emission credits were from previously permitted 
emissions sources located in southeast Wisconsin that have permanently 
shutdown, and whose permits have been revoked. The expiration and 
revocation of these sources' permits allows the state to use the 
emission credits associated with them for other purposes under the SIP 
and makes such credits permanent and enforceable. Table 2 outlines the 
remaining equivalent VOC emissions credits that are available between 
2012 and 2015 that can be used for Stage II.
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    \2\ 2011 Wisconsin Act 196 enacted on April 2, 2012 authorized 
the termination of Stage II requirements beginning May 16, 2012, the 
date when EPA finalized a rule determining that ORVR was in 
widespread use nationwide. Stage II decommissioning in southeast 
Wisconsin is set to occur within a four year period between 2012 and 
2015.
    \3\ Based on 4:1 NOX to VOC Ratio (i.e. 4 tons of 
NOX = 1 ton of VOC)
    \4\ The VOC emissions shortfall was interpolated between 2013 
and 2015 since the MOVES modeling was not done specifically for this 
year.

            Table 2--Available VOC and NOX Emission Credits for the Stage II Vapor Recovery Program.
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                                                                                                  Equivalent VOC
                            Year \2\                                VOC (tons)      NOX (tons)      (tons) \3\
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2012............................................................           42.02           46.42           53.63
2013............................................................           86.07           97.17          110.36
2014 \4\........................................................          130.12          147.92          167.10
2015............................................................          174.18          198.66          223.85
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[[Page 34969]]

    Table 3 below summarizes WDNR's Stage II emissions make-up 
demonstration. The table specifically highlights the annual emissions 
shortfall that will take place during the phase out of the Wisconsin 
Stage II program between 2012 and 2015. In addition, the table outlines 
the amount of equivalent VOC emission credits that are being used to 
offset the shortfall using the VOC to NOX conversion 
approach outlined in EPA's proposed approval of Wisconsin's June 6, 
2012 SIP revision (see 78 FR 24373). Based on the use of permanent, 
enforceable, contemporaneous, surplus emissions reductions achieved 
through the shutdown of permitted emissions sources, EPA believes that 
the removal of the Wisconsin Stage II program does not interfere with 
southeast Wisconsin's ability to demonstrate compliance with the 8-hour 
ozone NAAQS.

 Table 3--Make-Up of Stage II Vapor Recovery Program Emissions Shortfall
------------------------------------------------------------------------
                                  VOC
                               emissions   Available VOC    Difference
             Year              shortfall     emissions      (shortfall-
                                 (tons)    credit (tons)  credit) (tons)
------------------------------------------------------------------------
2012.........................  42.9-44.8           53.63           -8.83
2013.........................  64.0-67.2          110.36          -43.16
2014.........................  47.0-49.6          167.10         -117.50
2015.........................  6.1-6.4            223.85         -217.45
------------------------------------------------------------------------

    EPA also examined whether the removal of Stage II program 
requirements in southeast Wisconsin will interfere with attainment of 
other air quality standards. Southeast Wisconsin is designated 
attainment for all standards other than ozone and particulate matter, 
including sulfur dioxide and nitrogen dioxide. EPA has no reason to 
believe that the removal of the Stage II program in southeast Wisconsin 
will cause the area to become nonattainment for any of these 
pollutants. In addition, EPA believes that removing the Stage II 
program requirements in southeast Wisconsin will not interfere with the 
area's ability to meet any other CAA requirement.
    Based on the above discussion and the state's section 110(l) 
demonstration, EPA believes that removal of the Stage II program would 
not interfere with attainment or maintenance of any of the NAAQS in 
both the Milwaukee-Racine and Sheboygan County nonattainment areas and 
would not interfere with any other applicable requirement of the CAA, 
and thus, are approvable under CAA section 110(l).

V. What action is EPA proposing to take?

    EPA is proposing to approve the revision to the Wisconsin ozone SIP 
submitted by WDNR on November 12, 2012, because we find that the 
revision meets all applicable requirements and it would not interfere 
with reasonable further progress or attainment of any of the national 
ambient air quality standards.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     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);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen oxides, Ozone, Volatile organic compounds.

    Dated: June 3, 2013.
Susan Hedman,
Regional Administrator, Region 5.
[FR Doc. 2013-13828 Filed 6-10-13; 8:45 am]
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