Regulation of Fuels and Fuel Additives: Standards for Reformulated and Conventional Gasoline

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[AMS-FRL-5148-4]

Regulation of Fuels and Fuel Additives: Standards for

Reformulated and Conventional Gasoline

AGENCY: Environmental Protection Agency.

ACTION: Partial withdrawal of final rule.

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

SUMMARY: On July 20, 1994, EPA published a direct final rule (DFRM)

which made minor corrections, clarifications, and revisions to various

provisions in the final reformulated gasoline rule which was published

on February 16, 1994. EPA is withdrawing certain portions of the DFRM,

because adverse or critical comments were received by the Agency, or an

opportunity to submit such comments at a public hearing was requested

for those specific portions. EPA is only withdrawing from the DFRM

those items which have been specifically addressed in those adverse

comments. The portions of the DFRM withdrawn by EPA concern individual

baseline adjustments based on production of JP-4 jet fuel and changes

to the valid range limits for RVP under the Simple Model. All other

changes noted in the July 20, 1994 DFRM will go into effect on

September 19, 1994.

EFFECTIVE DATE: This action is effective January 26, 1995.

ADDRESSES: Materials directly relevant to the direct final rule are

contained in Public Docket A-94-30, located at Room M-1500, Waterside

Mall (ground floor), U.S. Environmental Protection Agency, 401 M Street

SW, Washington, D.C. 20460. Other materials relevant to the

reformulated gasoline final rule are contained in Public Dockets A-91-

02 and A-92-12 The docket may be inspected from 8:00 a.m. until 4:00

p.m. Monday through Friday. As provided in 40 CFR part 2, a reasonable

fee may be charged by EPA for copying docket materials.

FOR FURTHER INFORMATION CONTACT: Joann Jackson Stephens, USEPA (RDSD-

12), Regulation Development and Support Division, 2565 Plymouth Road,

Ann Arbor, MI 48105, Telephone: (313) 668-4276. To request copies of

this document contact: Delores Frank, U.S. EPA (RDSD-12), Regulation

Development and Support Division, 2565 Plymouth Road, Ann Arbor, MI

48105, Telephone: (313) 668-4295.

SUPPLEMENTARY INFORMATION: The DFRM published by EPA on July 20, 1994

made a number of changes to EPA's regulations for reformulated and

conventional gasoline. EPA issued a direct final rule because the

changes it contained were generally minor in nature and were expected

to be non-controversial. The DFRM allowed the Agency to finalize such

changes in an expeditious and timely manner. For instance, many of the

changes clarified issues relevant to the development and auditing of

individual baselines which were to be submitted no later September 1,

1994. Likewise, since the reformulated gasoline program will commence

on December 1, 1994, the clarifications and changes contained in the

direct final rule promote successful implementation of the reformulated

gasoline and anti-dumping programs.

Since a number of the changes to the final rule were not

insubstantial, EPA provided a 30-day comment period in which comments

on specific items could be submitted or a public hearing requested. EPA

also announced that it would withdraw from the direct final rule those

items that were adversely commented on. This would have the effect of

re-activating the regulatory provisions for those items in the final

rule for reformulated gasoline promulgated on December 15, 1993 and

published in the Federal Register on February 16, 1994 (59 FR 7715).

The Agency has received adverse comments on just a few of the

changes in the direct final rule. The comments themselves can be found

in Public Docket A-94-30. Each of the specific items addressed in the

comments is being withdrawn from the DFRM by today's action, which is

effective immediately. All items that were not adversely commented on

will go into effect on September 19, 1994.

A copy of this action is available on the EPA's Office of Air

Quality Planning and Standards (OAQPS) Technology Transfer Network

Bulletin Board System (TTNBBS). The service is free of charge, except

for the cost of the phone call. Users are able to access and download

TTN files on their first call. The TTNBBS can be accessed with a dial-

in [[Page 6031]] phone line and a high-speed modem per the following

information.

TTN BBS: 919-541-5742 (1200-14400 bps, no parity, 8 data bits, 1 stop

bit)

Voice Helpline: 919-541-5384

Also accessible via Internet: TELNET ttnbbs.rtpnc.epa.gov

Off-line: Mondays from 8:00 AM to 12:00 Noon ET

When first signing on, the user will be required to answer some

basic informational questions for registration purposes. After

completing the registration process, proceed through the following

series of menus:

GATEWAY TO TTN TECHNICAL AREAS (Bulletin Boards)

OMS

Rulemaking and Reporting

Fuels

Reformulated gasoline

A list of ZIP files will be shown, all of which are related to the

reformulated gasoline rulemaking process. To download any file, type

the instructions below and transfer according to the appropriate

software on your computer:

ownload, rotocol, xamine, ew, ist, or elp

Selection or to exit: D filename.zip

You will be given a list of transfer protocols from which you must

choose one that matches with the terminal software on your own

computer. The software should then be opened and directed to receive

the file using the same protocol. Programs and instructions for de-

archiving compressed files can be found via ystems Utilities from

the top menu, under rchivers/de-archivers. After getting the files

you want onto your computer, you can quit the TTN BBS with the

oodbye command. Please note that due to differences between the

software used to develop the document and the software into which the

document may be downloaded, changes in format, page length, etc. may

occur.

The remainder of this preamble is organized into the following

sections:

I. Withdrawal of Change to JP-4 to Gasoline Production Ratio

II. Withdrawal of JP-4 Adjustment Multi-Refinery Requirement

III. Withdrawal of Change to the Valid Range Limits for RVP under

the Simple Model

I. Withdrawal of Change to JP-4 to Gasoline Production Ratio

EPA received comments from Shell Oil Company, Phillips 66 Company,

and Chevron USA Products Company objecting to the change of the 1990

JP-4 to gasoline production ratio from 0.5 to 0.2. A discussion of

EPA's perspective on this regulatory provision was presented in Section

IV, Part B.2 of the DFRM preamble. See 59 FR 36944 (July 20, 1994). For

the most part, commenters expressed the belief that the selection of

the 0.2 JP-4 to gasoline production ratio was arbitrary. In addition,

EPA was faulted with disregarding the significant economic and

competitive impact of redefining the ratio on those refiners with

ratios falling below 0.2. In fact, most commenters supported allowing

baseline adjustments for all refiners that produced JP-4 in 1990,

thereby eliminating the need for a JP-4 to gasoline ratio altogether.

Since commenters objected to the change in specifying this ratio,

as announced in the DFRM, EPA is withdrawing the action in the July

DFRM which lowered the 1990 JP-4 to gasoline production ratio to 0.2.

The 0.2 ratio will not go into effect on September 19th. The criteria

for an adjustment to an individual baseline based on production of JP-4

will include a 1990 JP-4 to gasoline production ratio of 0.5, as was

promulgated in the December 1993 final regulations for reformulated

gasoline.

II. Withdrawal of JP-4 Adjustment Multi-Refinery Requirement

A. Withdrawal of Relaxation of the Requirement That All Refineries in

an Aggregate Produced JP-4 in 1990

In August, EPA received comments from Chevron USA Products Company

regarding the revised JP-4 adjustment appearing in the July DFRM. In

addition to the JP-4 to gasoline production ratio, Chevron objected to

the change in the multiple refinery requirement discussed in Preamble

Section VI.B.1. See 59 FR 36944 (July 20, 1994). Chevron argued in

their comments that the combined provisions for the JP-4 adjustment

(ratio and multi-refiner requirement) were designed to benefit a

certain class of refiners and thereby providing that class of refiners

with competitive advantages not offered to all refiners.

The DFRM would have altered the regulations to allow utilization of

the JP-4 adjustment for those refiners with multiple refineries (milti-

refinery refiner) regardless of whether or not each of their refineries

produced JP-4 in 1990. The DFRM revised provision was intended to treat

refiners who produced JP-4 equally regardless of whether or they owned

more than one refinery. Since the Agency received a critical comment on

the revised multiple refinery provision in the DFRM, EPA is now

withdrawing that provision. The requirement for multi-refinery refiner

reverts to the original provision contained in the December 1993 final

reformulated gasoline rule. Therefore, baseline adjustments are only

allowed for multi-refinery refiners where each of a refiner's

refineries produced JP-4 in 1990.

B. Withdrawal of the Requirement for an Aggregate JP-4 Production Ratio

Calculation

The July DFRM also contained a provision which would have required

refiners of multiple refineries to average their 1990 JP-4 production

to 1990 gasoline production ratio across all of their refineries. See

59 FR 36944 (July 20, 1994). The Agency received adverse comments on

this provision from Chevron and Pennzoil. While Chevron did not

specifically mention objections to this element of the multi-refinery

requirement promulgated in the DFRM, the Agency understands Chevron's

critical comments as applying equally to each component of the DFRM

multi-refinery requirement. Pennzoil objected to the DFRM's requirement

to average the JP-4 to gasoline production ratio over all a refiner's

refineries (in essence an aggregate ratio) if the ratio reverts back to

0.5 as promulgated in the December 1993 RFG final regulations. Pennzoil

claimed that the combination of the higher, more stringent ratio

threshold (0.5) and the more restrictive requirement to calculate

across all of a multi-refiner's refineries would eliminate the

meaningful relief to JP-4 producers.

Since EPA received adverse comments on those provisions, it is

withdrawing those regulatory provisions receiving negative comments.

Today's action withdraws the July DFRM JP-4 adjustment multiple

refinery provisions. The multiple refinery provisions in

Sec. 80.91(e)(7) remain as promulgated in the December 1993

reformulated gasoline final rule.

III. Withdrawal of Change to the Valid Range Limits for RVP Under the

Simple Model

In August, the American Automobile Manufacturers Association (AAMA)

submitted comments to the Agency which objected to the change in the

low end valid range for RVP under the Simple Model. Their concern is

that low RVP fuels might have high driveability indices (DIs).

According to AAMA, high DI fuels produce higher vehicle emissions and

poor customer satisfaction. As explained in their comments, unlike the

Complex Model, the Simple Model does not limit distillation

temperatures and the promulgated extension of the RVP valid

[[Page 6032]] range could allow production of fuels with low volatility

and a high DI.

EPA's July DFRM provision would have revised the low end of the

valid range for RVP under the Simple Model to 6.4 psi, from 6.6 psi.

The Agency made this alteration to the regulations to make the low end

of the valid range for RVP consistent throughout Phase I of the federal

reformulated gasoline program, and provide additional flexibility for

refiners to complement the already established blending and enforcement

tolerances. However, since AAMA submitted comments which are critical

of the Agency's Simple Model valid range revision before the August

19th deadline, EPA is withdrawing the revised provision. The low end

valid range RVP limit under the Simple Model remains 6.6 psi, as was

promulgated in the December 1993 reformulated gasoline regulations.

Therefore the amendments to Sec. 80.91(e)(7) (the altered JP-4

multi-refinery requirement and the lower 1990 JP-4 to gasoline

production ratio) and to Sec. 80.42 table in paragraph (c)(1) (altering

the lower limit RVP valid range in the simple model) appearing at 59 FR

36944 (July 20, 1994), which were to become effective September 19,

1994 are hereby withdrawn.

It is important to note that EPA's withdrawal of these regulatory

changes is not based on EPA's agreement or disagreement with the

adverse comments received. The withdrawal is based solely on EPA's

determination, announced in the DFRM, that these changes would go into

effect as a direct final rule only if no persons submitted adverse

comments or requested an opportunity to comment. EPA is reviewing

comments and is currently developing a notice of proposed rulemaking

that will address the regulatory changes withdrawn by this notice.

EPA is withdrawing these provisions to the reformulated and

conventional gasoline regulations without providing prior notice and an

opportunity to comment because it finds there is good cause within the

meaning of 5 U.S.C. 553(b) to do so. Notice and comment would be

impracticable, as EPA needs to withdraw these changes quickly as they

go into effect on September 19, 1994. In addition further notice is not

necessary as EPA has already informed the public it would follow this

procedure if adverse or critical comments were received within 30 days

of the publication of the DFRM. For the same reasons, EPA finds it has

good cause under 5 U.S.C. 533(b) to make this withdrawal immediately

effective.

IV. Statutory Authority

The statutory authority for this action is granted to EPA by

Sections 114, 211(c) and (k) and 301 of the Clean Air Act, as amended;

42 U.S.C. 7414, 7545(c) and (k), and 7601.

List of Subjects in 40 CFR Part 80

Envrironmental protection, Air pollution control, Fuel additives,

Gasoline, Motor vehicle pollution.

Dated: January 26, 1995.

Carol M. Browner,

Administrator.

40 CFR part 80 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. In Sec. 80.42, the table in paragraph (c)(1) is revised to read

as follows:

Sec. 80.42 Simple emissions model.

* * * * *

(c) * * *

(1) * * *

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

Fuel parameter Range

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

Benzene content....................................... 0-4.9 vol %

RVP................................................... 6.6-9.0 psi

Oxygen content........................................ 0-4.0 wt %

Aromatics content..................................... 0-55 vol %

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

* * * * *

3. In Sec. 80.91, paragraph (e)(7)(i)(D) is removed and paragraphs

(e)(7)(i)(A) and (e)(7)(i)(C) are revised to read as follows:

Sec. 80.91 Individual baseline determination.

* * * * *

(e) * * *

(7) * * *

(i) * * *

(A) The refinery is the only refinery of a refiner such that it

cannot form an aggregate baseline with another refinery (per paragraph

(f) of this section) or all of the refineries of a refiner produced JP-

4 in 1990 and each of the refineries also meets the requirements

specified in paragraphs (e)(7)(i) (B) and (C) of this section.

* * * * *

(C) The ratio of the refinery's 1990 JP-4 production to its 1990

gasoline production equals or exceeds 0.5.

* * * * *

[FR Doc. 95-2435 Filed 1-31-95; 8:45 am]

BILLING CODE 6560-50-P