Approval of Colorado's Petition To Relax the Federal Reid Vapor Pressure Volatility Standard for Colorado in 1994 and 1995

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[FRL-4857-2]

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

Pressure Volatility Standard for Colorado in 1994 and 1995

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rulemaking.

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SUMMARY: In today's action EPA is issuing as a direct final rule

approving the State of Colorado's petition to relax the Reid Vapor

Pressure (RVP) Standard applicable to gasoline introduced into commerce

in the Denver-Boulder ozone nonattainment area from June 1 to September

15 from 7.8 pounds per square inches (psi) to 9.0 psi for the years

1994 and 1995. Federal RVP standards were promulgated by EPA on June

11, 1990 and revised on December 12, 1991, pursuant to the Clean Air

Act, as amended by the Clean Air Act Amendments of 1990 (the Act).

Colorado's petition is based on evidence that the Denver-Boulder area

does not need the 7.8 psi standard to maintain ozone attainment in the

near term and that the 7.8 psi standard would impose significant costs

on industry and consumers. Colorado's petition requests a continuation

of a previous relaxation for the RVP standard approved by the EPA for

the years 1992 and 1993. This action is being taken without prior

notice because EPA believes that this rulemaking is noncontroversial

due to the limited scope of this rulemaking, Colorado's continued

attainment of the ozone standard and for the reasons discussed in this

notice.

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

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-94-01. The docket is located at the Air Docket Section (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 may be

inspected from 8:30 a.m. to 12 p.m. and from 1:30 p.m. to 3:30 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 at the

following address: Michael Ball, U.S. Environmental Protection Agency,

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

20460.

FOR FURTHER INFORMATION CONTACT: Michael Ball of the Regional/State/

Local Coordination Section at (202) 233-9005. See the ADDRESSES caption

for the mailing address.

SUPPLEMENTARY INFORMATION:

I. 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 and a major

contributor to the nation's serious ground level ozone problem which

results in harm to human health and to the public welfare. The Agency

published a Notice of Final Rulemaking on March 22, 1989 that put into

place Phase I of the program to require VOC reductions available

through refining changes that could be accomplished 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,

1992.4

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

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

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

\4\As described in greater detail in the Background section, the

Phase II regulations were repromulgated to incorporate changes in

the federal RVP program as directed by the Act.

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The final rule for the Phase I program established a federal

volatility standard in Colorado of 10.5 psi for the month of May, and

9.5 for June 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. Under the Phase I and

Phase II approach, the gasoline volatility levels were applicable on a

state-wide basis.

The Clean Air Act Amendments of 1990, however, established new

requirements for the fuel volatility program. Section 211(h) of the Act

as amended required that EPA modify the Phase II fuel volatility

program. Section 211(h)(1) requires 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 emission control, and economic factors.'' The Act also allows EPA

to impose an RVP standard lower than 9.0 psi 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.5 In this notice, EPA

proposed that, beginning in 1992, the RVP standard would 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 had been designated as nonattainment, EPA proposed that the

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

On December 12, 1991 EPA finalized these modifications.6

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\5\56 FR 24242 (May 29, 1991).

\6\56 FR 64704 (December 12, 1991).

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The Denver-Boulder metropolitan area is designated nonattainment

for the ozone NAAQS. The nonattainment area which encompasses Denver's

entire six-county Consolidated Metropolitan Statistical Area, with the

exception of Rocky Mountain National Park in Boulder County and the

eastern portions of Adams and Arapahoe Counties. Under the Phase II

rule finalized on December 12, 1991, the standard applicable in the

Denver-Boulder nonattainment area beginning in 1992 was determined to

be 9.0 psi in May and 7.8 psi from June 1 to September 15. The standard

applicable in other areas of Colorado was established at 9.0 psi from

May 1 to September 15.

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

the Denver-Boulder nonattainment area to be a ``transitional area'' as

determined under section 185A of the Act, as amended. A transitional

area is ``an area designated as an ozone nonattainment area as of the

date of enactment of the Clean Air Act Amendments of 1990 (that) has

not violated the national primary ambient air quality standard for

ozone for the 36-month period commencing on January 1, 1987, and ending

on December 31, 1989.''

As stated in the preamble for the Phase II volatility

controls7 and reiterated in the proposed change to the volatility

standards published on May 29, 1991,8 EPA will rely on states to

initiate changes to the EPA volatility program that they believe will

enhance local air quality and/or increase the economic efficiency of

the program, within the statutory limits. EPA provided a mechanism for

the Governor of a state to request a less stringent volatility standard

for some month or months, if the petition could demonstrate the

existence of a particular local economic impact that made such changes

appropriate and if the petition could demonstrate that sufficient

alternative programs were available to achieve attainment and

maintenance of the ozone National Ambient Air Quality Standards

(NAAQS).

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\7\The Phase II final rulemaking established procedures by which

states could petition EPA for more or less stringent volatility

standards. 55 FR 23660 (June 11, 1980).

\8\56 FR 24242 (May 29, 1991).

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II. EPA's Approval of Colorado's Petition for 1992 and 1993

On October 16, 1991, Governor Roy Romer requested EPA to amend the

federal RVP standards for the Denver-Boulder ozone nonattainment area.

The specific change requested was to relax the 7.8 psi standard for the

Denver-Boulder nonattainment area to 9.0 psi area for 1992 and 1993.

The Governor further requested that the 7.8 psi standard take effect

beginning in June of 1994, unless the State of Colorado specifically

requested via the Colorado Ozone Maintenance State Implementation Plan

(SIP), that the 9.0 psi standard be retained. EPA thus treated this

petition as a request for a two-year relaxation of the volatility

standard for the Denver-Boulder nonattainment area to 9.0 psi until

1994.

On May 12, 1992, EPA proposed to approve the State of Colorado's

petition to relax until 1994 the gasoline volatility standard for the

Denver-Boulder nonattainment area. EPA reviewed the State of Colorado's

petition and found that the request to relax the federal volatility

standard for the Denver-Boulder nonattainment area until 1994 from the

Phase II standard of 7.8 psi to 9.0 psi was justified based on the

petition itself, the evidence submitted on behalf of Governor Romer,

and EPA's own analysis of the costs of implementation of the 7.8 psi

standard and the environmental need for the 7.8 psi standard.

The petition and available evidence sufficiently demonstrated that

retention of the 7.8 psi standard would impose significant costs on

consumers and industry relative to a 9.0 psi standard, and that the 7.8

psi standard was not necessary for emission control until 1994 in light

of the current transitional status of the Denver-Boulder area. EPA also

determined that an analysis by Colorado to demonstrate that sufficient

alternative programs were in place to insure future attainment of the

ozone standard was not necessary due to the State's consistent

attainment of the ozone NAAQS since 1986. Finally, Colorado provided

further assurances that a two-year relaxation of the standard would

provide sufficient time for the State to complete an ozone maintenance

plan. Such a plan would allow the State to determine if 7.8 psi

gasoline was necessary for continued attainment in future years. Thus,

at that time, the State could determine if a permanent change in the

standard was necessary.

On April 30, 19939 the EPA approved Colorado's petition. The

relaxation was therefore determined to be justified under section

211(h) of the Act.10 EPA received three comments in response to

this proposal. For the reasons discussed in the April 30, 1993 final

notice (and in greater detail in the NPRM), EPA approved the State of

Colorado's petition.

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\9\53 FR 26067 (April 30, 1993).

\1\0Under section 211(h), EPA must set a national summertime

gasoline volatility standard of 9.0 psi beginning in 1992. EPA must

also establish more stringent volatility standards ``in a

nonattainment area as the Administrator finds necessary to generally

achieve comparable evaporative emissions (on a per-vehicle basis) in

nonattainment areas taking into consideration the enforceability of

such standards, the need of an area for emission control and

economic factors.''

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III. Colorado's Petition To Relax the RVP Standard for 1994 and 1995

On September 15, 1993, Governor Roy Romer sent a letter to Jack

McGraw, Acting Administrator of EPA Region VIII, requesting that EPA

amend the federal RVP standards for the Denver-Boulder nonattainment

area. Specifically, Governor Romer requested that EPA extend the

relaxation of the RVP standard of 7.8 psi to 9.0 psi granted for the

1992 and 1993 summer ozone season to the years 1994 and 1995. The

Governor further requested that the 7.8 psi standard take effect

beginning in June of 1996, unless the State of Colorado specifically

requests via the Colorado Ozone Maintenance SIP that the 9.0 psi

standard be retained. EPA thus will treat this petition as a request

for a two-year relaxation of the volatility standard for the Denver-

Boulder nonattainment area to 9.0 psi until 1996. If the Governor's

request were granted, the phase II volatility standard of 7.8 psi would

not become effective until 1996. Thereafter, the 7.8 psi standard would

be implemented unless EPA receives and approves a subsequent request

from the Governor to continue the relaxation or a maintenance plan is

submitted and approved that demonstrates no future need for the 7.8 psi

gasoline to achieve attainment.

Governor Romer's request results from the Colorado Air Quality

Control Commission's (the Commission) recommendation to relax the RVP

standard. The Commission endorsed the relaxed RVP standard based upon

testimony provided at a public hearing on August 19, 1993, and after

consideration of the environmental and economic impact of the 7.8 psi

federal standard. A transcript of the testimony and comments submitted

at this hearing are available in the docket for this rulemaking.11

In forwarding this request to EPA, Governor Romer is following

procedures stated in the preamble for the Phase II volatility rule. As

mentioned in Section II, requests for changes to the federal volatility

standard must include the following: (1) documentation of the local

economic impact of the otherwise applicable standard and (2) an

indication that sufficient alternative programs are available to

achieve attainment and maintenance of the ozone NAAQS.

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\1\1Docket A-94-01.

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A. The Commission's Hearing

The Air Pollution Control Division (APCD) of the Colorado

Department of Health submitted documentation and testimony to the EPA

regarding the environmental need of the 7.8 standard. This testimony

was presented at a hearing before the Colorado Air Quality Control

Commission held on August 19, 1993. The APCD testified in support of a

relaxation of the RVP standard to 9.0 psi before the Commission,

stating that the Denver-Boulder nonattainment area had not violated the

NAAQS for ozone for the period from January 1, 1987 to December 31,

1989 when EPA designated areas under the Act. Because Denver had not

experienced ozone violations during this time period, the Denver-

Boulder area was afforded ``transitional'' nonattainment status. The

APCD further testified that there were no monitored violations of the

ozone NAAQS since 1986. The APCD noted that the volatility standard for

the Denver-Boulder nonattainment area in 1992 and 1993 was 9.0 psi and

no violations of the standard were recorded. (However, there were

single exceedances of the ozone NAAQS at two stations during 1993.) The

APCD concluded that the Denver-Boulder area would be able to continue

attainment of the ozone standard with 9.0 psi RVP gasoline based upon

this information. The APCD also concluded that implementation of the

lower RVP standard would burden refiners, gasoline marketers, and

consumers unnecessarily with higher costs especially in light of

current ozone concentration levels.

According to the petition that Colorado sent to EPA in 1991

requesting relaxation of the RVP standard in the Denver-Boulder area

during 1992 and 1993, the APCD was to have completed an ozone

maintenance plan for the Denver area by June of 1993. The maintenance

plan is necessary in order for the EPA to redesignate the area as

having attained the ozone standard.12 In the August 19, 1993

hearing, the Commission raised questions regarding the inability of the

APCD to complete the ozone maintenance plan on time. The APCD testified

that due to resource limitations caused by programmatic obligations

under the Act, an ozone maintenance plan assumed a lower priority and

could not be completed by the June 1993 deadline.13 Thus, the APCD

concluded that a two year extension of the RVP relaxation would be

necessary to provide sufficient time to develop the ozone maintenance

plan. Furthermore, because the Denver area continued to attain the

ozone standard, the APCD concluded that an extension of the relaxation

was not inappropriate. The APCD estimated that a plan would be

developed and submitted by early 1995. It therefore recommended that a

petition to relax the 7.8 psi standard to 9.0 be approved by the

Commission and subsequently recommended to the Governor.

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\1\2An ozone maintenance plan that demonstrates long term (10

years) maintenance of the ozone NAAQS must be developed by the state

before an area can be redesignated to attainment.

\1\3In particular, the APCD testified that the considerable

amount of work that had to be devoted to the PM 10 and CO

nonattainment SIPs, made it impossible to complete work on the ozone

SIP. The Denver-Boulder area is a moderate nonattainment area for

both PM10 and CO.

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Based on the information received in the hearing, the Commission on

August 19, 1993 adopted a resolution requesting that Governor Romer

petition the EPA to retain the 9.0 psi standard for the 1994 and 1995

summer ozone seasons. The Commission also adopted a declaration that

the APCD begin work on the Ozone Maintenance SIP and that it be

completed on time. Governor Romer subsequently requested the two year

relaxation in a letter dated September 15, 1993 to Acting Regional

Administrator Jack McGraw.

B. Sufficient Alternative Programs

Because Colorado has not violated the ozone standard since 1986,

EPA does not believe it is necessary for the State to show that

sufficient alternative programs are in place to provide for attainment

of the ozone NAAQS. EPA approved the Ozone State Implementation Plan

(SIP) for the Denver-Boulder area in 1983.14 This plan relied upon

emission reductions from the Federal Motor Vehicle Control Program and

an Inspection and Maintenance Program to provide for attainment of the

ozone NAAQS by the statutory deadline of December 31, 1987. Since the

beginning of 1986, none of the area's several ozone air quality

monitors has recorded a violation of the ozone NAAQS.15 Because

the available data showed no violations, EPA did not require the State

to submit a revised Ozone SIP in 1988 during EPA's nationwide ozone SIP

evaluation. As noted above, the area is currently classified as a

``Transitional'' area under section 185(A) of the Act. Under these

circumstances, Colorado need not provide for alternative ozone control

programs in order to obtain a relaxation of the RVP standard to 9.0

psi.

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\1\448 FR 55284 (December 12, 1983).

\1\5EPA has ongoing concerns with the quality of some of the

ozone data and the geographic coverage of the monitoring network,

and is working with Colorado to resolve these issues. Region VIII is

currently working with the state to establish a network of maximum

concentration monitors.

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IV. EPA's Proposed Action

A. Relaxation of Colorado's Reid Vapor Pressure Standard

EPA is approving as a direct final decision the State of Colorado's

request to relax the federal volatility standard for the Denver-Boulder

nonattainment area until 1996 from the current standard of 7.8 psi to

9.0 psi. Section 211(h) of the Act requires EPA to promulgate

regulations that shall establish RVP standards in a nonattainment area

that are more stringent than 9.0 psi ``as the Administrator finds

necessary to generally achieve comparable evaporative emissions (on a

per-vehicle basis) in nonattainment areas taking into consideration the

enforceability of such standards, the need of an area for emission

control, and economic factors.'' Based on the petition and the evidence

submitted on behalf of Governor Romer, EPA believes that the requested

relaxation of the standard is justified.

The petition and available evidence indicated that retention of the

7.8 psi standard would impose significant cost on consumers and

industry and that the 7.8 psi standard is not necessary in the short-

term given the current transitional status of the Denver-Boulder area

and the area's record of continued attainment of the ozone standard.

Although Colorado has not submitted additional analysis regarding the

costs of implementing a 7.8 psi RVP standard, EPA believes the cost

analysis it performed based on Colorado's original 1991 petition is

still applicable. That analysis indicated that a $3,500,000 to

$4,000,000 savings would be realized in the Denver-Boulder area during

the summer ozone season.16 As discussed in the May 29, 1991 notice

EPA estimates that a relaxation of the 7.8 psi standard to 9.0 psi will

result in a savings of approximately 1.1 cents per gallon.17 EPA

believes, therefore, that retention of the 7.8 psi standard would

impose significant costs on consumers and industry relative to a 9.0

psi standard.

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\1\6A detailed analysis of the costs associated with the RVP

program in Colorado can be found in air docket A-92-08 created for

the proposal to grant Colorado's petition for relaxation for 1992

and 1993. 57 FR 20234 (May 12, 1992).

\1\756 FR 24246 (May 29, 1991).

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Moreover, EPA agrees with Colorado that the Denver-Boulder area

will not need a 7.8 psi standard in the next two years to comply with

the ozone NAAQS. The area has not violated the standard since 1986.

Since this time summertime gasoline volatility was reduced

significantly through the implementation of the Phase I and Phase II of

the federal RVP standards. Although EPA believes that a short term

relaxation of the RVP standard will not cause a violation of the ozone

NAAQS in the Denver-Boulder area, EPA is concerned regarding the area's

long term compliance. The Denver-Boulder area's growing population and

increase in vehicle miles travelled generate questions regarding

whether sufficient controls are available to provide for maintenance of

the ozone NAAQS over the long term. Moreover, the area did experience

single exceedances during the 1993 ozone season at two monitoring

stations and has experienced other readings near or above 0.120 in

recent years. Therefore, the long-term maintenance of the standard in

the Denver-Boulder areas is in question.

Moreover, Colorado has failed to develop a maintenance plan for the

Denver-Boulder area, despite its commitment to do so by June, 1993 in

the original request for relaxation of the RVP standard in Denver-

Boulder during 1992 and 1993. EPA granted Colorado's original request

for relaxation with the expectation that the state would submit an

ozone maintenance plan by this date. Colorado's failure has left EPA

with no assurance that the Denver-Boulder area will be able to maintain

its compliance with the ozone NAAQS for the next ten years.

Because of the area's classification as transitional, EPA was

required to determine by June 30, 1992 whether the area had in fact

attained the ozone standard by December 31, 1991. If the Administrator

determined that the area had attained the standard, the state was

required to submit, within twelve months of the determination, a

maintenance plan meeting the requirements of section 175A of the

Act.18 Thomas Getz, Director of the APCD has submitted a letter to

EPA that asserts that the ozone maintenance plan has been delayed

because of serious staff resource constraints caused by projects of

higher priority, including the PM 10 and CO SIPs. The letter states

that the PM 10 and CO SIPs are subject to potential sanctions and that

the state has been working to address the statutorily mandated

deadlines for these plans. As the Denver-Boulder area has not

experienced an ozone violation in recent years, the APCD believed the

completion of the ozone SIP to be less urgent than the completion of

the other plans. In addition, data necessary to complete baseline

emissions inventories was not available for use in the plan. This memo

has been placed in the docket for this rulemaking.

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\1\8On October 22, 1992, EPA Region VIII sent a letter to

Governor Romer stating that the Denver-Boulder transitional area had

not violated the ozone NAAQS during the period from January 1, 1987

to December 31, 1991.

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Despite these limitations, however, Colorado has committed to

developing a maintenance plan for ozone to be submitted by early 1995.

Through this plan, the state will determine what additional control

measures, if any, will be necessary to provide for continued attainment

of the ozone NAAQS. The maintenance plan must show that the ozone

standard will be maintained for a period of at least ten years. The

development of this maintenance plan will give Colorado an opportunity

to conduct a comprehensive air quality modeling exercise to determine

what control measures will be necessary to provide for long term

maintenance of the ozone NAAQS. Along with the existing SIP measures,

tighter gasoline volatility and other strategies will be evaluated to

determine the most appropriate and cost-effective strategy for

maintaining the NAAQS. Today's action should provide Colorado with

sufficient time to complete an ozone maintenance plan. Moreover,

ongoing vehicle fleet turnover, as well as several new requirements of

the Clean Air Act Amendments (such as tighter tailpipe standards,

longer useful life definitions, on-board diagnostic and refueling

equipment, and enhanced inspection and maintenance requirements) are

likely to lead to reduction in overall mobile source emissions of VOCs.

While the maintenance plan is being developed, EPA believes that

air quality will be protected by the ongoing control programs. The

volatility standard for Denver-Boulder will drop to 7.8 psi in 1996

unless additional action by the Commission and the Governor, backed by

a comprehensive maintenance plan, is taken to extend the 9.0 psi

standard.

B. Direct Final Rulemaking

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 the

Denver-Boulder, Colorado nonattainment area; and EPA anticipates no

significant comments on this action. This action represents a

continuation of a previously approved relaxation in the RVP standard

and will provide Colorado the necessary time to complete an ozone

maintenance plan at which time a long term projection will be made

regarding the need for a more stringent RVP standard.

This action will be effective 60 days from the date of this Federal

Register notice, unless notice is received within 30 days of today's

notice 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.

V. Environmental Impact

The proposed amendment is not expected to have any adverse

environmental effects. The Denver-Boulder six county nonattainment area

has met the NAAQS since 1986. Current air quality is expected to be

further maintained by a 9.0 psi standard.

VI. Economic Impact

The proposed relaxation of the 7.8 psi standard to 9.0 psi will

result in a cost reduction in refining, and an increase in summertime

gasoline supply levels. For each summer, this translates into

approximately a 1.1 cent per gallon cost savings to consumers at the

pump.

VII. 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

Denver-Boulder 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 12866,19 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:

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\1\9 58 FR 51735 (October 4, 1993).

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(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 ``Colorado''

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

------------------------------------------------------------------------

State May June July Aug. Sept.

------------------------------------------------------------------------

* * * * * * *

Colorado2........ 9.0 7.8 7.8 7.8 7.8

* * * * * * *

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

2The standard for 1992 through 1995 in the Denver-Boulder nonattainment

area will be 9.0 for June 1 through September 15.

[FR Doc. 94-7982 Filed 4-1-94; 8:45 am]

BILLING CODE 6560-50-P