[Federal Register Volume 90, Number 53 (Thursday, March 20, 2025)]
[Rules and Regulations]
[Pages 13093-13098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-04751]
[[Page 13093]]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 1090
[EPA-HQ-OAR-2022-0513; FRL-9845.1-03-OAR]
RIN 2060-AW51
Extension of Effective Date for Removal of Gasoline Volatility
Waiver for Ohio and Nine Counties in South Dakota
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: This final rule extends the effective date for removal of the
1-psi gasoline volatility waiver in Ohio and nine counties in South
Dakota by one year from April 28, 2025, to April 28, 2026. This action
responds to petitions from the Governors of Ohio and South Dakota
requesting an extension of the effective date to the summer of 2026.
DATES:
Effective date. This final rule is effective on March 19, 2025.
Operational date. For operational purposes under the Clean Air Act
(CAA), this final rule is effective as of March 14, 2025.
ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-HQ-OAR-2022-0513. All documents in the docket are listed on the
https://www.regulations.gov website. Although listed in the index, some
information is not publicly available, e.g., confidential business
information (CBI) or other information whose disclosure is restricted
by statute. Certain other material is not available on the internet and
will be publicly available only in hard copy form. Publicly available
docket materials are available electronically through https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For questions regarding this action,
contact Lauren Michaels, Assessment and Standards Division, Office of
Transportation and Air Quality, Environmental Protection Agency, 2000
Traverwood Drive, Ann Arbor, MI 48105; telephone number: (734) 214-
4640; email address: [email protected].
SUPPLEMENTARY INFORMATION:
Dates
EPA is taking this action as a final rule without prior proposal
and public comment because EPA finds that the good cause exemption from
the notice and comment rulemaking requirement of the Administrative
Procedure Act (APA), 5 U.S.C. 551 et seq., applies here. Section
553(b)(B) of the APA, 5 U.S.C. 553(b)(B), provides that, when an agency
for good cause finds (and incorporates the finding and a brief
statement of reasons thereof in the rule issued) that notice and
comment public procedures are impracticable, unnecessary, or contrary
to the public interest, the agency may issue a rule without providing
notice and an opportunity for public comment.
EPA has determined that there is good cause for promulgating this
final rule without prior proposal and opportunity for comment. Notice
and comment procedures are impracticable and contrary to the public
interest, as they would not allow for implementation of this action
prior to removal of the 1-psi waiver on the existing April 28, 2025,
deadline, which would severely constrain the availability of gasoline
in Ohio and western South Dakota. As described in section III, a recent
explosion at a refinery that supplies gasoline to western South Dakota
and the absence of necessary infrastructure to distribute low-RVP
gasoline in Ohio, along with Ohio's unique status of not bordering any
of the other States that petitioned for removal of the 1-psi waiver,
would lead to an insufficient supply of gasoline in these areas if the
1-psi waiver were to be removed on April 28, 2025. Without this final
rule, refineries would be unable to supply gasoline to these areas that
meets the regulatory requirements, resulting in an insufficient supply
of gasoline to the areas. Therefore, EPA is promulgating this final
rule without prior proposal and opportunity for comment in order to
expeditiously change the requirements before refineries and
distributors need to supply gasoline to these areas and so that there
is sufficient supply of gasoline in these States for the summer of
2025.
Additionally, we are determining there is good cause to make this
final rule immediately operational upon signature. When an agency
grants or recognizes an exemption or relieves a restriction, affected
parties do not need a reasonable time to adjust because the effect is
not adverse. Here, the regulatory amendments to 40 CFR part 1090
relieve a restriction by extending the compliance deadline for the
removal of the 1-psi waiver in Ohio and nine counties in South Dakota
by one year ahead of the otherwise imminent deadline of April 28, 2025,
thus providing refiners and distributors additional time to make the
capital investments and physical changes to refineries and the fuel
distribution system necessary to supply these areas with low-RVP
gasoline and to ensure there is not an insufficient supply of gasoline
in these areas. Because the rule revisions relieve a restriction and
advance notice is not needed, this final rule is immediately
operational upon signature.
Does this action apply to me?
Entities potentially affected by this final rule are those involved
with the production, distribution, and sale of transportation fuels,
including gasoline and diesel fuel. Potentially affected categories
include:
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Examples of potentially affected
Category NAICS \a\ code entities
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Industry................................. 211130............................. Natural gas liquids extraction
and fractionation.
Industry................................. 221210............................. Natural gas production and
distribution.
Industry................................. 324110............................. Petroleum refineries (including
importers).
Industry................................. 325110............................. Butane and pentane
manufacturers.
Industry................................. 325193............................. Ethyl alcohol manufacturing.
Industry................................. 325199............................. Manufacturers of gasoline
additives.
Industry................................. 424710............................. Petroleum bulk stations and
terminals.
Industry................................. 424720............................. Petroleum and petroleum products
wholesalers.
Industry................................. 447110, 447190..................... Fuel retailers.
Industry................................. 454310............................. Other fuel dealers.
Industry................................. 486910............................. Natural gas liquids pipelines,
refined petroleum products
pipelines.
Industry................................. 493190............................. Other warehousing and storage--
bulk petroleum storage.
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\a\ North American Industry Classification System (NAICS).
[[Page 13094]]
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be affected by this
action. This table lists the types of entities that EPA is now aware
could potentially be affected by this action. Other types of entities
not listed in the table could also be affected. To determine whether
your entity would be affected by this action, you should carefully
examine the applicability criteria in 40 CFR part 1090. If you have any
questions regarding the applicability of this action to a particular
entity, consult the person listed in the FOR FURTHER INFORMATION
CONTACT section.
Outline of This Preamble
I. Background and Overview
II. Statutory Authority
III. Finding of Insufficient Supply for 2025 and Renewal of
Extension of Effective Date for Ohio and the Nine Counties in South
Dakota
A. Ohio
B. South Dakota
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Executive Order 14192: Unleashing Prosperity Through
Deregulation
C. Paperwork Reduction Act (PRA)
D. Regulatory Flexibility Act (RFA)
E. Unfunded Mandates Reform Act (UMRA)
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
H. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
J. National Technology Transfer and Advancement Act (NTTAA) and
1 CFR Part 51
K. Congressional Review Act (CRA)
VI. Statutory Authority
I. Background and Overview
EPA first took regulatory action to control the volatility of
gasoline in 1987.\1\ Because higher gasoline volatility leads to higher
evaporative emissions, EPA regulates the Reid vapor pressure (RVP)--a
measure of fuel volatility--of gasoline during summer months in order
to reduce volatile organic compound (VOC) emissions that contribute to
the formation of smog (ground-level ozone).\2\ The volatility of fuel
depends on the refinery's decisions in formulating its gasoline.
Subsequent to EPA's actions, Congress enacted the Clean Air Act (CAA)
Amendments of 1990, which included volatility provisions for summer
gasoline. These provisions generally codified EPA's regulatory
approach, including establishing a 9.0 psi RVP standard for gasoline
volatility in the summer.\3\ Because blending ethanol into gasoline
increases the volatility of the resulting fuel blend due to chemical
differences between ethanol and gasoline, Congress also codified a 1-
psi volatility waiver for gasoline containing between 9 and 10 percent
ethanol (E10) (the ``1-psi waiver''), allowing such blends to have a
1.0-psi higher RVP than otherwise allowed for gasoline, consistent with
EPA's prior regulatory approach.\4\ This allowance only applies to
gasoline-ethanol blends containing between 9 and 10 percent ethanol,
and does not extend to gasoline-ethanol blends containing greater than
10 percent ethanol.\5\ The 1-psi waiver also does not apply to
reformulated gasoline (RFG).
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\1\ See 52 FR 31274 (August 19, 1987); Subsequent regulatory
actions occurred in 1989 and 1990. 54 FR 11868 (March 22, 1989); 55
FR 23658 (June 11, 1990).
\2\ Gasoline must have volatility in the proper range to prevent
driveability, performance, and emissions problems. If the volatility
is too low, the gasoline will not ignite properly; if the volatility
is too high, the vehicle may experience vapor lock. Importantly for
this action, excessively high volatility also leads to increased
evaporative emissions from the vehicle. Vehicle evaporative emission
control systems are designed and certified on gasoline with a
volatility of 9.0 psi RVP. Higher volatility gasoline may overwhelm
the vehicle's evaporative control system, leading to a condition
described as ``breakthrough'' of the cannister and mostly
uncontrolled evaporative emissions.
\3\ CAA section 211(h)(1). CAA section 211(h)(1) requires EPA to
establish volatility requirements--that is, a restriction on RVP--
during the high ozone season. To implement these requirements, EPA
defines ``high ozone season'' or ``summer season'' at 40 CFR 1090.80
as ``the period from June 1 through September 15 for retailers and
wholesale purchaser consumers, and May 1 through September 15 for
all other persons, or an RVP control period specified in a state
implementation plan if it is longer.'' In general practice by
industry and for purposes of this preamble, the high ozone season is
referred to as the ``summer'' or ``summer season'' and gasoline
produced to be used during the high ozone season is called ``summer
gasoline.'' EPA's regulations do not impose any volatility
requirements on any type of blend of gasoline outside of the summer
season.
\4\ CAA section 211(h)(4).
\5\ The statutory 1-psi waiver is codified at 40 CFR
1090.215(a).
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In 1990, when Congress first codified the provision for the 1-psi
waiver, a relatively small portion of the gasoline sold in the United
States contained up to 10 percent ethanol. Today, almost all gasoline
sold is E10, and thus, the 1-psi waiver increases the volatility of
most gasoline introduced into commerce nationwide.
On February 29, 2024, EPA promulgated a rule removing the 1-psi
waiver for E10 in Illinois, Iowa, Missouri, Minnesota, Nebraska, Ohio,
South Dakota, and Wisconsin (the ``Applicable States'') pursuant to CAA
section 211(h)(5) (the ``2024 final rule'').\6\ CAA section 211(h)(5)
requires EPA to remove the 1-psi waiver for E10 in a State upon request
by the Governor of the State if accompanied by necessary supporting
documentation.
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\6\ 89 FR 14760.
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In response to a request from the Governors of Ohio \7\ and South
Dakota,\8\ EPA is renewing the extension of the effective date of the
removal of the 1-psi waiver for Ohio and nine counties in South Dakota.
For the reasons described in section III and consistent with the CAA,
we find that there would be an insufficient supply of gasoline in Ohio
and nine counties in South Dakota if the removal of the 1-psi waiver
were to go into effect as currently required on April 28, 2025.
Therefore, EPA is acting on its own motion to renew the extension of
the effective date by one year to April 28, 2026, for the entire State
of Ohio, and the following nine counties in South Dakota: Butte,
Custer, Fall River, Harding, Lawrence, Meade, Oglala Lakota,
Pennington, and Perkins (``the nine counties'').
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\7\ Petition from Ohio Governor Mike DeWine (January 24, 2025).
\8\ Petition from South Dakota Governor Larry Rhoden (February
25, 2025).
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II. Statutory Authority
Under CAA section 211(h)(5)(C), the regulations removing the 1-psi
waiver shall take effect on the later of: (1) The first day of the
first high ozone season for the area that begins after the date of
receipt of the notification; or (2) 1 year after the date of receipt of
the notification. The high ozone season is defined in EPA's regulations
as ``June 1 through September 15 for retailers and [wholesale purchaser
consumers (WPCs)], and May 1 through September 15 for all other
persons.'' \9\
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\9\ 40 CFR 1090.80. We note that given the current definition of
``high ozone season,'' the later date will always be one year after
receipt of the request from a governor.
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Further, under CAA section 211(h)(5)(C), the effective date can be
extended if EPA, on its own motion or on petition from any person,
after consultation with the Secretary of Energy, determines there would
be an insufficient supply of gasoline in a State that has requested the
removal of the 1-psi waiver for E10.\10\ CAA section
211(h)(5)(C)(ii)(I)(aa) further provides that the effective date can be
extended ``with respect to the area'' for not more than one year.
Additionally, EPA may renew the extension for two additional
[[Page 13095]]
periods, each of which shall not exceed one year.\11\
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\10\ 89 FR 14768. CAA section 211(h)(5)(C)(ii).
\11\ CAA section 211(h)(5)(C)(ii)(I)(aa).
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In the 2024 final rule, EPA viewed the phrase ``insufficient supply
of gasoline'' as calling for a demonstration that gasoline supply
disruptions would result from removal of the 1-psi waiver, such that
the necessary quantities of gasoline may not be available in a State at
the time they are required. EPA further posited that this demonstration
was particularly appropriate because removal of the 1-psi waiver would
call for a different type of gasoline to be physically produced and
transported to and within the Applicable States. We also explained that
our view was consistent with the historical application of similar or
related provisions, and congressional intent.\12\
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\12\ For a complete discussion of our view of the phrase
``insufficient supply of gasoline,'' as well as our historical
treatment of related provisions in CAA section 211, see 89 FR 14768-
69.
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Regarding the requisite determination of ``insufficient supply,''
under CAA section 211(h)(5)(C)(ii)(I), in the 2024 final rule, we also
explained that our analysis of ``insufficient supply'' should be ``in
the State'' petitioning for the removal of the 1-psi waiver. That is,
if there was insufficient supply only in a single State, we could
extend the effective date for that State only.\13\ CAA section
211(h)(5)(C) explicitly contemplates the ``supply of gasoline in the
State.'' Where the Governor's request for extension of the effective
date relates to either the entire State or only certain portions of a
State, EPA would thus be able to extend the effective date in both of
those areas if the requisite determination of insufficient supply of
gasoline can be made. It also bears noting that CAA section 211(h)(5)
allows for removal of the 1-psi waiver if it ``will increase emissions
that contribute to air pollution in any area of the State.'' \14\
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\13\ 89 FR 14769.
\14\ For our discussion on areas where the RVP standards apply,
see 89 FR 14764-68.
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Therefore, our analysis of insufficient supply of gasoline, which
is contained in section III, considered State-specific factors and
examined the supply issues in Ohio and the nine counties in South
Dakota. We have also reviewed the present extension requests for
demonstrations of supply disruptions in Ohio and the nine counties in
South Dakota because the removal of the 1-psi waiver would call for a
different type of gasoline to be physically produced and transported to
and within Ohio and the nine counties in South Dakota. Our analysis
therefore further considered all stages of the gasoline production and
distribution system (i.e., from the refinery to the retail outlet in
Ohio and the nine counties in South Dakota). In sum, we have determined
that there is insufficient supply of gasoline in Ohio and the nine
counties in South Dakota for purposes of our extension of the effective
date of the removal of the 1-psi waiver in Ohio and the nine counties
in South Dakota.\15\
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\15\ Other areas in South Dakota continue to be subject to the
April 28, 2025, effective date. Table 1 to 40 CFR
1090.215(b)(3)(ii).
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III. Finding of Insufficient Supply for 2025 and Renewal of Extension
of Effective Date for Ohio and the Nine Counties in South Dakota
In this section we discuss our finding of insufficient supply of
gasoline in Ohio and the nine counties in South Dakota for the summer
of 2025, which underpins the decision to renew the extension of the
effective date by one year to April 28, 2026.
In the 2024 final rule, we determined that either a 2023 or 2024
implementation date would result in insufficient supply of gasoline and
finalized an effective date of April 28, 2025, for removal of the 1-psi
waiver for all Applicable States.\16\ After the issuance of the 2024
final rule, the Governors of Ohio \17\ and South Dakota \18\ submitted
petitions requesting a delay of the effective date from 2025 until
2026.\19\ After consideration of both petitions, EPA is acting on its
own motion to renew the extension of the effective date of the removal
of the 1-psi waiver for Ohio and the nine counties in South Dakota by
one year from April 28, 2025, to April 28, 2026. Under CAA section
211(h)(5)(C)(ii)(I)(bb), this is the latest possible effective date for
the removal of the 1-psi waiver for Ohio and the nine counties in South
Dakota. Additionally, we have consulted with the Department of Energy,
consistent with the CAA section 211(h)(5)(C)(ii)(I).\20\
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\16\ 89 FR 14769-70. Our detailed finding of insufficient supply
for 2023 and 2024 can be found at 88 FR 13767 (March 6, 2023) and 89
FR 14769-71 (February 29, 2024), respectively. EPA had originally
proposed an effective date of April 28, 2024.
\17\ Petition from Ohio Governor Mike DeWine (January 24, 2025).
\18\ Petition from South Dakota Larry Rhoden (February 25,
2025).
\19\ EPA also received petitions from other stakeholders:
Petition from CountryMark (October 25, 2024); Petition from American
Fuel and Petrochemical Manufacturers (AFPM) (November 7, 2024);
Petition from American Petroleum Institute (API) (November 8, 2024);
Petition from Kansas Governor Laura Kelly to EPA (February 6, 2025).
To the extent those petitions also requested a delay for Ohio and
the nine counties in South Dakota, this final rule is intended to
resolve those requests.
\20\ See ``Documentation of Consultation between EPA and DOE,''
available in the docket for this action.
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CAA section 211(h)(5)(C)(ii)(I) requires a determination of
insufficient supply of gasoline to renew the extension of the effective
date of the removal of the 1-psi waiver. In our prior actions, to make
the requisite determination of insufficient supply of gasoline, we
assessed the following supply constraints: (1) Low gasoline
inventories; \21\ (2) The limited time available for coordination
between various parties to make the necessary physical changes to the
gasoline production and distribution infrastructure; \22\ and (3) The
physical loss of supply necessary to produce low-RVP gasoline.\23\ We
also considered the following: (1) The lack of sufficient time to make
the capital investments and physical changes to refineries and the fuel
distribution system; and (2) Less flexibility within the fuel
distribution system than had been anticipated to adequately mitigate
the supply reduction until such time as the capital and physical
changes can be made.\24\
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\21\ We are not relying on this consideration to justify our
determination of insufficient supply of gasoline in Ohio and the
nine counties in South Dakota because low gasoline inventories are
not a significant factor.
\22\ We are not relying on this consideration to justify our
determination of insufficient supply of gasoline in Ohio and the
nine counties of South Dakota because although there are some
ongoing supply concerns, we continue to believe that refineries,
pipelines, and terminals could have coordinated and increased
flexibility within the fuel distribution system after EPA finalized
the removal of the 1-psi waiver in February 2024.
\23\ We are relying on this factor to justify our determination
of insufficient supply of gasoline in only the nine counties in
South Dakota.
\24\ Our detailed finding of insufficient supply for 2023 and
2024 can be found at 88 FR 13767 (March 6, 2023), and 89 FR 14769-71
(February 29, 2024), respectively.
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We have considered State-specific factors that inform two of the
bases we considered in our past actions. For Ohio, we have considered
the arguments the Governor of Ohio makes in his petition concerning the
lack of time to make capital investments and required physical changes.
For South Dakota, we have considered the arguments the Governor of
South Dakota makes in his petition concerning the physical loss of
supply necessary to produce low-RVP gasoline due to a recent
extraordinary event at a refinery that supplies gasoline to western
South Dakota. Based on our review of these considerations, EPA is
acting on its own motion to renew the extension of the effective date
for the removal of the 1-psi waiver by one year to the April 28,
[[Page 13096]]
2026, because its implementation for the summer of 2025 would result in
insufficient supply of gasoline in Ohio and the nine counties in South
Dakota.
A. Ohio
The Governor of Ohio requested the delay of the effective date for
the removal of the 1-psi waiver until 2026, indicating that the
petroleum industry in Ohio continues to express concerns ``about their
ability to install the necessary infrastructure to comply with the
federal rule by the effective date.'' \25\ As previously discussed, in
the 2024 final rule, we considered the absence of necessary
infrastructure and thus, the lack of time for refiners and gasoline
distributors to make capital investments and physical changes would
likely result in insufficient supply of gasoline. Thus, we view the
absence of necessary infrastructure to supply gasoline to Ohio as a
valid consideration for our determination of insufficient supply for
the summer of 2025, as described further below. In considering the
absence of necessary infrastructure, we also took note of Ohio's
geographic location as it relates to the other seven States that
petitioned for removal of the 1-psi waiver because Ohio is
geographically isolated from these other states. In our view, this
geographic isolation could uniquely affect Ohio, as parts of the State
receive a significant amount of gasoline from refineries and pipelines
located in States that have not petitioned for removal of the 1-psi
waiver. Refineries in these States--such as Indiana--supply gasoline
not just to Ohio but also to their own States, and thus would need to
produce multiple gasoline blends. For instance, CountryMark--a refiner
that operates a refinery in Mt. Vernon, Indiana--primarily distributes
its gasoline to Indiana, but also supplies Ohio and Illinois, both of
which petitioned for removal of the 1-psi waiver. CountryMark has also
petitioned EPA for a delay of the removal of the 1-psi waiver in part
due to concerns about supplying Ohio and surrounding States.\26\ In its
petition, CountryMark stated that the Mt. Vernon refinery's existing
infrastructure would hinder the logistics of producing and supplying
two grades of gasoline to all its customers and explicitly stated that
while it plans to supply Illinois, it would ``most likely not be able
to supply [its] members in Ohio.''
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\25\ Petition from Ohio Governor Mike DeWine (January 24, 2025).
\26\ Petition from CountryMark (October 25, 2024).
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As also discussed in the 2024 final rule, capital investments are
necessary for most refiners and fuel distributors supplying gasoline to
the Applicable States to accommodate a transition to low-RVP gasoline
in those States.\27\ We explained that these capital investments
typically require time to come online. For example, projects to
debottleneck existing refinery units typically require 2-2.5 years to
engineer, design, purchase, permit, and install. We also assumed that
even if these refiners and fuel distributors began the planning process
for either debottlenecking a refinery unit or installing a gasoline
storage tank after the first State filed its petition in April 2022, or
after EPA proposed to remove the 1-psi waiver for the Applicable States
in early 2023, there would be insufficient time prior to the summer of
2024 to complete the desired capital additions.\28\
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\27\ 89 FR 14764-68. We discussed necessary investments for the
storage of additional types and grades of gasoline at refineries,
pipeline breakout tanks, and downstream terminals, storage of excess
butane and light straight-run naphtha (LSR), and associated measures
for piping, pumping, and spill containment. We also anticipated that
refineries would need to debottleneck debutanizers and octane-
producing units to enable the production of low-RVP gasoline.
\28\ Capital grassroots projects typically require 3-4 years to
engineer, design, purchase, permit and install. Smaller projects
that can ``debottleneck'' individual refinery units (e.g., replacing
a furnace, heat exchanger, or reactor) typically require 2-2.5 years
to complete, while much smaller projects (e.g., replacing a valve or
pump or adding or increasing the size of piping) may be designed and
completed in a year or less. These types of capital investments can
help a refinery produce additional low-RVP gasoline. Shell,
``Thriving in the new reality: Refinery revamp projects FAQ; Shell
Catalysts and Technologies,'' https://www.shell.com/business-customers/catalysts-technologies/resources-library/refinery-revamp-faq.html. 89 FR 14771.
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Additionally, we explained that refiners, pipeline operators, and
terminal operators had indicated that many of the needed capital
investments were not initiated in 2022 due in part to: (1) The
uncertainty created by several States rescinding their petitions in
2022; (2) The emergency fuel waivers we issued under CAA section
211(c)(4)(C)(ii)(I) extending the 1-psi waiver to E15 during the 2023
summer season; \29\ and (3) Potential congressional action that would
extend the 1-psi waiver to E15 nationwide.\30\
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\29\ From April 28, 2023, to August 28, 2023, EPA issued a
waiver under CAA section 211(c)(4)(C)(ii)(I) that facilitated E15
sales during the summer of 2023.
\30\ See, e.g., comments from Magellan (Docket Item No. EPA-HQ-
OAR-2022-0513-0042), API (Docket Item No. EPA-HQ-OAR-2022-0513-
0056), and HF Sinclair (Docket Item No. EPA-HQ-OAR-2022-0513-0076).
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We continue to believe that refiners like CountryMark that supply
gasoline to Ohio are unlikely to complete the necessary capital
investments by the summer of 2025 because they were not initiated by
2022. We also believe that these refiners might not have made the
necessary capital investments because they were concerned that the
long-anticipated congressional action to extend the 1-psi waiver to E15
nationwide would negate any capital investments made. In sum, we
believe that the lack of capital investments, which was also identified
by the Governor of Ohio, has contributed to the inability for the
petroleum industry to supply the Ohio gasoline market with low-RVP
gasoline.
Our determination of insufficient supply of gasoline in Ohio for
the summer of 2025 is premised on the absence of necessary
infrastructure and thus the lack of time for refiners and gasoline
distributors to make capital investments and physical change, which is
further exacerbated by Ohio's unique status of not bordering any of the
other Applicable States.
B. South Dakota
The Governor of South Dakota requested a delay of the effective
date for the removal of the 1-psi waiver in nine counties until 2026,
and referenced an unexpected disruption in supply to western South
Dakota as support.\31\ Specifically, in February 2025, an explosion at
Wyoming Refining Company's Newcastle, Wyoming refinery--which supplies
the majority of its fuel to western South Dakota \32\--caused the
refinery to be idled indefinitely.\33\ This supply disruption will
likely impact the nine counties in South Dakota and make distribution
of low-RVP gasoline to the area difficult for the summer of 2025.
Wyoming refineries, including the Newcastle refinery, supply gasoline
to western South Dakota through a pipeline.\34\ We view this reduction
and ongoing elimination of gasoline supply from that pipeline due to
the refinery outage as contributing to the physical loss of supply
necessary to produce low-RVP gasoline. Requiring the use of low-RVP
gasoline in the nine counties in South Dakota for the summer of 2025
would
[[Page 13097]]
likely result in a significant gasoline supply shortage. Therefore, the
physical loss of supply resulting from the explosion at the Newcastle
refinery, which supplies most of its fuel to the nine counties in South
Dakota, is the basis for our determination that there will be an
insufficient supply of gasoline in this area of South Dakota for the
summer of 2025.
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\31\ Petition from South Dakota Larry Rhoden (February 25,
2025).
\32\ Par Pacific, ``Wyoming Refining Company Overview,'' https://www.parpacific.com/operations/refining-logistics/wyoming.
\33\ Wyoming Tribune Eagle ``Cause of refinery explosion near
Newcastle under investigation,'' February 17, 2025. https://www.wyomingnews.com/news/local_news/cause-of-refinery-explosion-near-newcastle-under-investigation/article_1280f7e8-ed85-11ef-8874-fb1ef9beeead.html.
\34\ Figure 2.C-2, ``Request from States for Removal of Gasoline
Volatility Waiver: Technical Support Document and Cost Analysis,''
EPA-420-R-24-002, February 2024.
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V. Statutory and Executive Order Reviews
Additional information about these statutes and Executive orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review
This action is not a significant regulatory action as defined in
Executive Order 12866 and was therefore not subject to a requirement
for Executive Order 12866 review.
B. Executive Order 14192: Unleashing Prosperity Through Deregulation
This action alleviates regulatory burden as described in Executive
Order 14192.
C. Paperwork Reduction Act (PRA)
This action does not impose any new information collection burden
under the PRA. OMB has previously approved the information collection
activities contained in the existing regulations and has assigned OMB
control number 2060-0731. This action extends the effective date for
the removal of the 1-psi waiver for Ohio and the nine counties in South
Dakota. It does not alter practices used by the existing recordkeeping
and reporting requirements, nor does it change the number or type of
respondents and the manner in which they satisfy the fuel designation
and product transfer document requirements.
D. Regulatory Flexibility Act (RFA)
This action is not subject to the RFA. The RFA applies only to
rules subject to notice and comment rulemaking requirements under the
Administrative Procedure Act (APA), 5 U.S.C. 553, or any other statute.
This rule is not subject to notice and comment requirements because EPA
has invoked the APA ``good cause'' exemption under 5 U.S.C. 553(b).
EPA's discussion of the good cause finding for this rule, including the
basis for that finding, is discussed in the SUPPLEMENTARY INFORMATION
section.
E. Unfunded Mandates Reform Act (UMRA)
This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C. 1531-1538, and does not
significantly or uniquely affect small governments. This action
implements mandates specifically and explicitly set forth in CAA
section 211(h)(5) without the exercise of any policy discretion by EPA.
F. Executive Order 13132: Federalism
This action 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.
G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications as specified in
Executive Order 13175. This action will be implemented at the State
level and would affect gasoline refiners, blenders, marketers,
distributors, and importers. Tribal governments would be affected only
to the extent they produce, purchase, and use gasoline. Thus, Executive
Order 13175 does not apply to this action.
H. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that EPA has reason to believe may disproportionately affect children,
per the definition of ``covered regulatory action'' in section 2-202 of
the Executive Order. Therefore, this action is not subject to Executive
Order 13045 because it implements specific standards established by
Congress in statutes.
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This action is not a ``significant energy action'' because it is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy. This action extends the effective date
for the removal of the 1-psi waiver for Ohio and the nine counties in
South Dakota. As discussed in the 2024 final rule, removal of the 1-psi
waiver will require changes to the production and distribution of
gasoline, which is expected to have some short- and long-term impacts
on gasoline supply and cost in the affected areas, but we believe the
market will be able to accommodate the change without any significant
disruption.\35\
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\35\ 89 FR 14764-68.
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J. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR
Part 51
This action does not involve technical standards.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).
VI. Statutory Authority
Statutory authority for this action comes from sections 211(h) and
301(a) of the Clean Air Act, as amended; 42 U.S.C. 7545(h) and 7601(a).
Statutory authority for the rulemaking procedures followed in this
action is provided by Administrative Procedure Act (APA) section
553(b)(B), 5 U.S.C. 553(b)(B) (good cause exception to notice and
comment rulemaking).
List of Subjects in 40 CFR Part 1090
Environmental protection, Administrative practice and procedure,
Air pollution control, Fuel additives, Gasoline, Petroleum, Renewable
fuel.
Lee Zeldin,
Administrator.
For the reasons set forth in the preamble, EPA amends 40 CFR part
1090 as follows:
PART 1090--REGULATION OF FUELS, FUEL ADDITIVES, AND REGULATED
BLENDSTOCKS
0
1. The authority citation for part 1090 continues to read as follows:
Authority: 42 U.S.C. 7414, 7521, 7522-7525, 7541, 7542, 7543,
7545, 7547, 7550, and 7601.
Subpart C--Gasoline Standards
0
2. Amend Sec. 1090.215 by revising table 2 to paragraph (b)(3)(ii) to
read as follows:
Sec. 1090.215 Gasoline RVP standards.
* * * * *
(b) * * *
(3) * * *
[[Page 13098]]
(ii) * * *
Table 2 to Paragraph (b)(3)(ii)--Areas Excluded From the Ethanol 1.0 psi Waiver
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State Counties Effective date
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Illinois............................. All.................................... April 28, 2025.
Iowa................................. All.................................... April 28, 2025.
Minnesota............................ All.................................... April 28, 2025.
Missouri............................. All.................................... April 28, 2025.
Nebraska............................. All.................................... April 28, 2025.
Ohio................................. All.................................... April 28, 2026.
South Dakota......................... All except Butte, Custer, Fall River, April 28, 2025.
Harding, Lawrence, Meade, Oglala
Lakota, Pennington, and Perkins.
South Dakota......................... Butte, Custer, Fall River, Harding, April 28, 2026.
Lawrence, Meade, Oglala Lakota,
Pennington, and Perkins.
Wisconsin............................ All.................................... April 28, 2025.
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* * * * *
[FR Doc. 2025-04751 Filed 3-19-25; 8:45 am]
BILLING CODE 6560-50-P