Approval of Tennessee's Petition To Relax the Federal Reid Vapor Pressure Volatility Standard From 7.8 psi to 9.0 psi

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[FRL-4857-9]

Approval of Tennessee's Petition To Relax the Federal Reid Vapor

Pressure Volatility Standard From 7.8 psi to 9.0 psi

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this document EPA is approving as a direct final rule

Tennessee's petition to relax the Reid Vapor Pressure Standard (RVP)

applicable to gasoline introduced into commerce from June 1 to

September 15 in the former Knox County ozone nonattainment area from

7.8 pounds per square inches (psi) to 9.0 psi. Knox County, Tennessee

has met the requirements for redesignation from nonattainment to

attainment status contained in section 107(d)(3)(E) of the Clean Air

Act. Tennessee's petition is based on evidence that the Knox County

area does not need the 7.8 psi standard to maintain ozone attainment.

EPA believes that further imposition of the 7.8 psi volatility standard

would impose needless costs in light of Tennessee's attainment of the

National Ambient Air Quality standard. This action is being taken

without prior proposal because EPA believes that this final rulemaking

is noncontroversial, for the reasons discussed above and due to the

limited scope of this rulemaking.

DATES: This action will be effective on June 3, 1994 unless notice is

received within 30 days that someone wishes to submit adverse or

critical comments. If notice of intention to submit adverse comments is

received within the 30 days, EPA will withdraw this final rule and re-

publish a notice of proposed rulemaking in the Federal Register. Please

direct all correspondence to the following addresses.

ADDRESSES: Comments should be submitted (in duplicate if possible) to

Docket A-94-07. The docket is located at the Air and Radiation Docket

and Information Center (formerly known as the ``Air Docket'') (LE-131),

U.S. Environmental Protection Agency, 401 M Street SW., Washington, DC

20460, in room M-1500 Waterside Mall. EPA has placed materials relevant

to this rulemaking in the docket. Documents be inspected from 8 a.m. to

4 p.m. Monday through Friday. A reasonable fee may be charged for

copying docket material.

A copy of comments should also be sent to the EPA contact person at

the following address: Anne-Marie Cooney, U.S. Environmental Protection

Agency, Office of Air and Radiation, 401 M Street SW. (6406-J),

Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Anne-Marie Cooney of the Regional/

State/Local Coordination Section at (202) 233-9013. See the ADDRESSES

section for the mailing address.

SUPPLEMENTARY INFORMATION:

I. Introduction

This notice describes EPA's final action to approve Tennessee's

request to change the federal Reid Vapor Pressure (RVP) standard of 7.8

psi to 9.0 psi in the former Knox County ozone nonattainment area from

June 1 to September 15. The remainder of this notice is divided into

five parts. Section II provides the background for this action. Section

III provides the Agency's policy regarding relaxation of volatility

standards in nonattainment areas redesignated as attainment. Section IV

reviews the Tennessee request and supporting evidence. Section V

reviews EPA's redesignation of Knox County as attainment. Finally,

Section VI presents EPA's action and rationale.

II. Background

On August 19, 1987, EPA proposed a two-phase national program to

reduce summertime gasoline volatility.1 EPA found that gasoline

had become increasingly volatile, which caused an increase in

evaporative emissions from gasoline-powered sources. These emissions

are volatile organic compounds (VOCs), a precursor of ozone. These

gasoline-related emissions are currently a major contributor to the

nation's serious ground level ozone problem, which harms human health

and the public welfare. The Agency published a Notice of Final

Rulemaking on March 22, 1989 that promulgated Phase I of the program to

require VOC reductions by the beginning of the 1989 summer ozone

season.2 The Phase II volatility standards were finalized on June

11, 19903 and went into effect May 1, 1992.

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\1\52 FR 31274 (August 16, 1987).

\2\54 FR 11868 (March 22, 1989).

\3\54 FR 23658 (June 11, 1990).

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The final rule for the Phase I program established a federal

volatility standard in Tennessee of 10.5 psi for the months of May and

June, 9.5 for July and August, and 10.5 for September 1 through

September 15. The Phase II rule required a further reduction in the

volatility standard to 9.0 psi for May and 7.8 psi for June 1 through

September 15 beginning in 1992. The Phase I and Phase II standards were

applicable on a statewide basis.

Congress established slightly different requirements for the fuel

volatility program in the Clean Air Act Amendments of 1990. Section

211(h)(1) of the Act, as amended, required that EPA promulgate

regulations making it unlawful to sell, offer for sale, dispense,

supply, offer for supply, transport, or introduce into commerce,

gasoline with an RVP level in excess of 9.0 psi during the high ozone

season as defined by the Administrator. It further provides that EPA

shall establish more stringent RVP standards in nonattainment areas if

EPA finds such standards are ``necessary to achieve comparable

evaporative emissions reductions, on a per vehicle basis, in such

areas, taking into consideration the enforceability of such standards,

the need of an area for emissions control, and economic factors.''

Section 211(h) prohibits the regulations from establishing a volatility

standard more stringent than 9.0 psi in an attainment area, although it

allows EPA to impose a lower standard in any former ozone nonattainment

area which is redesignated as being in attainment.

On May 29, 1991, EPA published a Notice of Proposed Rulemaking

which modified the Phase II summer ozone volatility standards to

reflect new section 211(h) of the Act.4 In this notice, EPA

proposed that, beginning in 1992, the RVP standard be 9.0 psi in all

attainment areas where this standard was not already in place. The

effect of this proposal was to prohibit the sale of gasoline with a

Reid Vapor Pressure above 9.0 psi during the summer ozone season in all

areas designated attainment for ozone for 1992 and beyond. For areas

that have been designated as nonattainment, EPA proposed that the

original Phase II standards published on June 11, 1990 should not be

changed. On December 12, 1991 EPA finalized these modifications.5

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\4\56 FR 24242 (May 29, 1991).

\5\56 FR 64704 (December 12, 1991).

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On November 6, 1991, EPA issued its ozone nonattainment

designations in the Federal Register pursuant to section 107(d)(1)(C)

of the Act, as amended. In the November 6, 1991 notice, EPA designated

Knox County as a ``marginal'' nonattainment area for ozone. Under the

original Phase II rule, a statewide standard was established in

Tennessee that required 7.8 psi gasoline to be provided from June 1 to

September 15. In the December 12, 1991 final rule, EPA modified RVP

standards for Tennessee to require that those areas designated in

Tennessee as nonattainment in the November 6, 1991 notice be provided

with 7.8 psi gasoline, and that the remainder of Tennessee be supplied

with 9.0 psi gasoline.

III. EPA Policy Regarding Relaxation of Volatility Standards in

Nonattainment Areas Redesignated as Attainment

Under the amended Phase II regulations, any change in the

volatility standard for an area must be accomplished through a separate

rulemaking revising the applicable standard for that area, even for an

area that was designated as nonattainment in the November 6, 1991

notice but is subsequently redesignated as being in attainment.6

Thus, for nonattainment areas where EPA mandated a phase II volatility

standard of 7.8 psi RVP in the December 12, 1991 rulemaking, the 7.8

psi standard will remain in effect, even after such an area is

redesignated as being in attainment, until a separate rulemaking is

completed that revises the RVP standard in that area from 7.8 psi to

9.0 psi.7

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\6\Relaxation of RVP standards associated with the redesignation

process was discussed in the preamble to EPA's final rule modifying

the Phase II volatility standards (56 FR 64706, December 12, 1991).

\7\Similarly, when an area originally designated being in

attainment is redesignated nonattainment, the volatility level of

the gasoline will stay at 9.0 psi RVP unless and until EPA

promulgates a rulemaking changing the RVP in that area (56 FR 64706

December 12, 1991).

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The Agency believes that relaxation of any RVP standard change is

best accomplished in conjunction with the redesignation process. In

order for an ozone nonattainment area to be redesignated as being in

attainment for ozone, revised section 107(d)(3) of the Act requires the

state to make a showing, pursuant to section 175A of the Act, that the

area is capable of maintaining attainment for the ozone NAAQS for ten

years. This maintenance plan may demonstrate that the area is capable

of maintaining attainment for ten years without the more stringent

volatility standard. However, the maintenance plan could also show that

the more stringent volatility standard is or may be necessary for the

area to maintain its attainment with the ozone NAAQS. Therefore, in the

context of a request for redesignation, the Agency will not relax the

volatility standard unless the maintenance plan demonstrates to the

satisfaction of the Agency that the area will maintain attainment for

ten years without the need for the more stringent volatility

standard.8

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\8\As stated in the preamble for the Agency's initial Phase II

volatility standards (see 55 FR 23609), and in the preamble in the

proposal to revise those standards (56 FR 24244), EPA may also

promulgate a rule to revise the volatility standard in a particular

nonattainment area in order to enhance local air quality and/or

increase the economic efficiency of the program. The Governor of a

state, or his designee, may petition EPA for a less stringent

standard if such a standard is consistent with the requirements of

the Act and if the state can document (1) particular local economic

impact that makes the less stringent standard appropriate and (2)

sufficient alternative programs to achieve attainment and

maintenance of the NAAQS for ozone.

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IV. Tennessee's Redesignation Request and Maintenance Plan; Request for

Change in Federal RVP Standard

On August 26, 1992, the State of Tennessee, through the Tennessee

Department of Conservation and Environment, submitted to EPA both a

request to redesignate Knox County (classified as a marginal

nonattainment area) from nonattainment to attainment for ozone and a

maintenance plan. The redesignation request was based on three years of

ambient monitoring data which showed that Knox County had no violations

of the ozone standard during the three year period of 1989 through

1991, and was also based on Tennessee's implementation of EPA-approved

ozone control strategies.9

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\9\It should also be noted that there were no exceedances of the

ozone standard during 1992 or 1993.

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The projected inventory for Knox County showed that, even with the

9.0 psi RVP standard, the total emissions for VOC, NOx, and CO for

the year 2004 will be less than the 1990 base year total emissions for

those pollutants.

Accompanying the redesignation request was a request to revise the

Federal RVP standard for Knox County from 7.8 psi to 9.0 psi.

Tennessee's maintenance demonstration assumed a 9.0 psi standard for

RVP. EPA deferred action on the relaxation of the RVP standard until

after redesignation was completed.

On October 18, 1993 the State of Tennessee Department of

Environment and Conservation re-asserted its request that the EPA

revise the Federal RVP standard from 7.8 psi to 9.0 psi for Knox

County. A copy of the letter, signed by Mr. John W. Walton, P.E.,

Director, Tennessee, Division of Air Pollution Control, has been placed

in the docket at the location shown in the ``ADDRESSES'' section of

this notice.

V. EPA Approval of the Knox County Maintenance Plan and Redesignation

On September 27, 1993,\10\ EPA announced a direct final rule in the

Federal Register that approved the maintenance plan and redesignation

of Knox County, Tennessee, to attainment for ozone.

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\10\See 58 FR 50271 (September 27, 1993).

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In this rulemaking, EPA's Regional Administrator for Region IV

determined that the State had met and fulfilled the requirements for

redesignation contained in section 107(d)(3)(E) of the Clean Air Act

Amendments of 1990. Information relevant to this redesignation can be

viewed during normal business hours at the following locations:

Public Information Reference Unit, United States Environmental

Protection Agency, 401 M Street SW., Washington, DC 20460.

Region IV Air Programs Branch, United States Environmental

Protection Agency, 345 Courtland Street, Atlanta, Georgia 30365.

Division of Air Pollution Control, Tennessee Department of

Conservation and Environment, L&C Annex, 9th Floor, 401 Church

Street, Nashville, Tennessee 37243-1531.

Knox County Department of Air Pollution Control, City/County

Building, Suite 459, 400 West Main Avenue, Knoxville, Tennessee

37902.

Persons interested in further information about the redesignation

may also contact Mr. Bill Denman, Air Programs Branch, U.S. EPA, 345

Courtland Street, Atlanta, Georgia 30365, (404) 347-2864.

Included in that determination were findings that the area had

attained the NAAQS for ozone, that the improvements in air quality were

due to permanent and enforceable emission reductions, and that the

Administrator has fully approved a maintenance plan for the area as

meeting the requirements of section 175A of the Act.11

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\1\1Section 175A sets forth requirements for maintenance plans.

Section 175A(a) requires each State which submits a redesignation

request under section 107(d) to submit a State Implementation Plan

(SIP) revision to provide for maintenance of the applicable air

quality standard for at least 10 years after redesignation. Section

175A(d) requires inclusion in the SIP of such contingency measures

as the EPA Administrator deems necessary to assure the State will

promptly correct any violation of the standard which occurs after

redesignation.

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The finding that the area had attained the NAAQS for ozone was

based on the data indicating that Knox County had no violations in

1989, 1990 and 1991. The finding that permanent enforceable VOC

emissions reductions have been obtained was based on evidence that

emissions had been reduced in Knox County as a result of the Federal

Motor Vehicle Control Program (FMVCP) and reduced gasoline RVP

requirements effective in 1989.

In finding that the maintenance plan meets the requirements of

section 175A, EPA cited the elements of the plan discussed above. EPA

noted that the plan relied on a gasoline volatility level of 9.0 psi

RVP, not 7.8 psi, as is required under current regulations. Moreover,

the final rule found that Knox County had demonstrated that it can

maintain the ozone NAAQS using the less stringent volatility level of

9.0 psi RVP. On that basis, the maintenance plan was approved. No

significant comments were received subsequently and the redesignation

of Knox County to attainment for ozone became effective October 27,

1993.

VI. Today's Final Action

EPA is today relaxing the RVP standard for Knox County, Tennessee

from 7.8 psi to 9.0 psi. The effective date of this rule is on June 3,

1994. Tennessee has met the criteria for relaxation of the RVP standard

discussed in the December 12, 1991 notice. The State has in place a

fully approved implementation plan for Knox County that demonstrates

that the county can maintain the ozone NAAQS with a 9.0 psi standard.

Tennessee's approved implementation and maintenance plan does not

require a RVP standard more stringent than 9.0 psi. EPA's approval of

this plan was based on evidence that the Knox County area can maintain

ozone attainment for ten years with a 9.0 psi standard. Based upon the

approval of the maintenance plan, EPA believes sufficient alternative

programs are in place to achieve attainment and maintenance of the

ozone NAAQS and that further imposition of the 7.8 psi volatility

standard would impose needless costs to consumers.12

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\1\2In the May 29, 1991 notice proposing to modify the Phase II

volatility standards, EPA estimated that the 7.8 psi standard will

increase the cost of gasoline by approximately 1.1 cents per gallon

over the 9.0 psi standard.

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This action is being taken without prior proposal because EPA

believes that this relaxation in the RVP regulation is

noncontroversial, the effect of this rulemaking is limited to Knox

County, Tennessee, and EPA anticipates no significant comments on this

action. Today's action is based on the same information that EPA relied

on in its approval of Tennessee's maintenance plan. EPA received no

significant adverse comments regarding its approval of the maintenance

plan or the redesignation of Knox County to attainment.

The public should be advised that this action will be effective 60

days from the date of this Federal Register notice, unless notice is

received within 30 days that someone wishes to submit adverse or

critical comments. If such notice is received, this action will be

withdrawn and two subsequent notices will be published. One notice,

which will be published before the effective date, will withdraw the

final action. Another notice will begin a new rulemaking by announcing

a proposal of the action and establishing a comment period. Interested

persons are invited to submit comments on this proposed approval. EPA

will consider all comments received within thirty days of the

publication of this notice.

Consequently, this procedure still allows the opportunity for

public comment and opportunity for oral presentation of data that is

required under CAA section 307(d). This procedure merely provides an

expedited procedure for final action where a rulemaking is not expected

to be controversial and no adverse comment is expected.

VII. Environmental Impact

The amendment is not expected to cause Knox County to violate the

NAAQS for ozone. The Knox County nonattainment area has met the NAAQS

since 1989. That is, Knox County, has not recorded an exceedance during

the time when the RVP standard in Knox County was no more stringent

than 9.0 psi.

VIII. Economic Impact

The relaxation of the 7.8 psi standard to 9.0 psi will result in a

cost savings to consumers of approximately 1.1 cents per gallon at the

pump.

IX. Administrative Requirements

Pursuant to the Regulatory Flexibility Act, 5 U.S.C. 601 through

612, whenever an agency is required to publish a general notice of

rulemaking for any proposed or final rule, it must prepare and make

available for public comment a regulatory flexibility analysis which

describes the impact of the rule on small entities (i.e., small

businesses, small organizations and small governmental jurisdictions).

The Administrator may certify, however, that the rule will not have a

significant impact on a substantial number of small entities. In such

circumstances, a regulatory flexibility analysis is not required.

Under Section 605 of the Regulatory Flexibility Act, I certify that

these regulations will not have a significant impact on a substantial

number of small entities. The regulatory revision is limited to the

Knox County area and should have no significant economic impact on a

substantial number of small entities. These regulations, therefore, do

not require a regulatory flexibility analysis.

Under Executive Order 12866, the Agency must determine whether the

regulatory action is ``significant'' and therefore subject to OMB

review and the requirements of the Executive Order. The Order defines

``significant regulatory action'' as one that is likely to result in a

rule that may:

(1) Have an annual effect on the economy of $100 million or more or

adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or planned by another agency;

(3) Materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof; or

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.

It has been determined that this rule is not a ``significant

regulatory action'' under the terms of Executive Order 12866 and is

therefore not subject to OMB review. Specifically, this rule will not

have an annual effect on the economy in excess of $100 million, have a

significant adverse impact on competition, investment, employment or

innovation, or result in a major price increase. In fact, as discussed

above, this action will reduce the cost of compliance with Federal

requirements in this area.

Under the Paperwork Reduction Act of 1980, 44 U.S.C. 3501, EPA must

obtain OMB clearance for any activity that will involve collecting

substantially the same information from 10 or more non-Federal

respondents. This direct final rule does not create any new information

requirements or contain any new information collection activities.

List of Subjects in 40 CFR Part 80

Administrative practice and procedures, Air pollution control,

Environmental protection, Motor vehicle and motor vehicle engines, Fuel

additives, Gasoline, Motor vehicle pollution, Penalties, Reporting and

recordkeeping requirements.

Dated: March 28, 1994.

Carol M. Browner,

Administrator.

For the reasons set forth in the preamble, part 80 of title 40 of

the Code of Federal Regulations is amended as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

1. The authority citation for part 80 continues to read as follows:

Authority: Sections 114, 211, and 301(a) of the Clean Air Act as

amended (42 U.S.C. 7414, 7545 and 7601(a)).

2. Section 80.27 is amended by revising the entry for ``Tennessee''

in the table in paragraph (a)(2) to read as follows:

Sec. 80.27 Controls and prohibitions on gasoline volatility.

(a) * * *

(2) * * *

Applicable Standards1 1992 and Subsequent Years

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State May June July Aug. Sept.

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* * * * * * *

Tennessee:

Knox County.. 9.0 9.0 9.0 9.0 9.0

All other

volatility

nonattainmen

t areas..... 9.0 7.8 7.8 7.8 7.8

* * * * * * *

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1Standards are expressed in pounds per square inch (psi).

[FR Doc. 94-7981 Filed 4-1-94; 8:45 am]

BILLING CODE 6560-50-P