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# OAR Box 1819 Prepped byOllie Stewart



### Document

Number: 

# 7) IV-D-1 1 Docket Number: 

# A-87-1 1

Printed 11/10/20088:56:53 AM

Sheet 7 of 348P. 2 

### A-87-JZ7

. 33.-1)-/ / EXECUTIV E OFFIC E O F TH E PRESIDEN T OFFIC E O FMANAGEMEN TAN D BUDGE T

WASHINGTON , D.C . 2050 3 

### AUG 

### 2 7198

7

Honorabl e Le e Thoma s Administrato r Environmenta l Protectio n Agenc y 40 1 MStreet , S.W . Washington , D.C . 2046 0 Dea r Lee : Th e Environmenta l Protectio nAgenc y(EPA ) ha s submitte d t o th e Offic e o f Managemen t an d Budge t (OMB ) fo r revie wunde r Executiv e Orde r No . 12291 , a majo r draf t propose d rul e tha t woul d establis h nationa l standard s limiting th e refueling emissions'fromcar s an d trucks . Thi s draf t proposa l (th e so-calle d "onboard " rule ) woul d requir e automaker s t o instal l contro l equipment—includin g a charcoa l charge d vapo r recoverycaniste r an d othe r contro l equipment—i n al l gasoline-fuele d car s an d trucks . EPAestimate s tha t a 49-Stat e onboar d contro l progra mwoul d impos e cost s o f roughl y$18 0 millio n pe r year . I hav e reviewe d th e draf t proposa l an d hav e some majo r concern s abou t th e consistenc yo f thi s draf t wit hth e principle s o f Executiv e Orde r No . 12291 . Thes e includ e th e following : 1 ) Ar e th e resulting contro l cost s o f an onboar d contro l system consisten t wit havailabl e estimate s o f th e benefit s o f a reductio n i n ozon e levels ? And 2 ) Wha t ne t cos t (i f any ) doe s a nationwid e onboar d requiremen t impos e o n th e two-third s o f th e nation' s populatio n living i narea s o f th e countrytha t alread y mee t th e ozon e Nationa l Ambien t Ai r Qualit yStandard s (NAAQS) ? I n addition , Sectio n 206(a)(6 ) o f th e Clea nAi r Ac t require s a compariso n o f "th e cost s an d effectivenes s o f suc htechnology (onboard ) t o tha t o f implementing an d maintaining vapo r recovery a t th e ga s pum

p (so-calle d "Stag e II " control) . I t i s no t clea r t o us , firs t o f all , tha t eithe r o f thes e approache s yield s cost-effectiv e reduction s i nozone-forming hydrocarbon s an d w e

Gasolin e vapor s ar e comprise d o f volatil e organi c compound s (VOCs ) tha t ar e precursor s i nth e formatio n o f ozone . 2 . • . Stag e I I contro l equipmen t recapture s refueling vapor s wit ha sleev e o n th e ga s pum p nozze l an

d return s th e vapor s t o th e storag e tank .P. 3

believ e EPAneed s t o loo k a t thi s issu e further . EPAals o need s t o examin e carefull yth e cumulativ e effect s o nit s cost-effectivenes s analysi s o f a numbe r o f importan t factor s tha t EPAidentifie d i n it s preambl e discussio n o nth e "sensitivity " o f th e analysi s t o alternativ e assumptions . Fo r example , wha t ar e th e combine d effect s o n it s cost-effectivenes s calculation s o f alternativ e assumption s o n 1 ) volatilit ylimits , 2 ) secondary weigh t effects , an d 3 ) projection s o f th e numbe r o f nonattainmen t areas . Finally , w e shar e th e concer no f th e Nationa l HighwayTraffi c Safet yAdministratio n (NHTSA ) tha t tw o year s i s no t an adequat e leadtime fo r manufacturer s t o designan d tes t th e onboar d contro l systemi n orde r t o assur e th e safet yan d integrit yo f thei r fue l systems . Automobil e manufacturer s mus t compl ywit ha numbe r o f othe r safet yrequirement s ove r th e nex t severa l years . Th e additiona l burde n o f designing an d testing anonboar d contro l systemtha t meet s curren t NHTS Astandard s fo r fue l system integrit ymayfurthe r strai nth e abilit yo f manufacturer s t o assur e th e safet yo f thei r vehicles . Give nth e seriou s consequence s o f fue l systemfailure , thes e concern s mus t b e resolve d befor e proceeding wit ha requiremen t fo r onboar d contro l o f refueling emissions . However , EPA' s revie wo f th e nee d fo r contro l o f refueling emission s ha s bee n unde r developmen t fo r a long perio d o f time . Give n you r reques t t o procee d wit hth e publicatio n o f thi s proposal , I believ e th e publi c deserve s th e opportunit yt o revie w an d commen t o n i t a t thi s stag e i nth e proces s an d I concu r wit h you r request . A t th e same time , I understand tha t EPAha s committe d t o reexamin e th e majo r issue s associate d wit hth e contro l o f refueling emission s afte r receiving commen t o n thi s proposa l fromth e publi c an d fro mth e Departmen t o f Transportation . A s state d i nth e preambl e t o th e onboar d proposal : ...Becaus e o f th e statutorysignificanc e attache d t o thi s consultatio n (withth e Departmen t o f Transportation) , EPAwil l reope n th e recor d o f thi s rulemaking whe n th e Agenc yreceive s th e comment s fro m th e Secretaryo f Transportatio nan d wil l repropos e th e rul e fo r commen t t o asses s change d circumstances . Thi s reproposa l shal l occu r prio r t o fina l decisio n o nth e merit s o f th e onboar d regulatio nan d sufficientl yprio r t o th e ful l commercia l manufactur e o f vehicle s wit h onboar d technologyt o allo wth e publi c a meaningfu l opportunit yt o commen t o n whateve r significan t change s i n circumstance s mayoccu r prio r t o ful l manufacture . W e agre e tha t EPAmus t addres s th e basi c question s raise d during th e cours e o f ou r review—includin g th e concer nfo r th e safet yo f th e onboar d contro l equipment , th e numbe r o f nonattainmen t areas , an d th e effec t o f refueling emissio ncontro l o nth e statu s o f thes e areas—befor e proceeding wit hth e developmen t o f a fina l rul e tha t woul d limi t refueling emissions . I n it s reproposal ,P. 4

EPAshoul d als o addres s othe r issue s raise d during th e cours e o f publi c commen t o r resulting fro mne wo r additiona l informatio non th e merit s o f limiting refueling emissions . W e pla n t o submi t a mor e detaile d analysi s o f thi s draf t proposa l during th e publi c commen t period . A s always , m ystaf f an

d I ar e availabl e fo r furthe r discussio no nthi s matter . 

### Sincerely , 

# ILJ7< end yL . Gram

m Administrato r fo r Informatio n an d RegulatoryAffair s