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# OAR Box 

# 1142 Prepped by Ollie Stewart

Document

Number: 

# 9 ) IV-F- 7
Docket Number: 

# A-87-1 1

Printed 4/23/2008 10:21:21 AM Sheet 9 of 30P. 2 

## PETROLEU

M MARKETERS ASSOCIATION O

F AMERIC A 

# W-F- 7


# f
Statement

of £iV& Hi--''"""' "

Joh nDimmic k O nBehal f O f Th e Petroleu m

Marketer s Associatio no f Americ a 

# Before the

Unite dState s Environmenta l Protectio nAgenc y 

# On

Refuelin g Emissio nRegulations / Nationa l Highwa y

Traffi c Safet y

Administratio n Repor t Septembe r 26 , 199 1

112 0 VERMON T AVENUE . NW • SUIT E 113 0 • WASHINGTON . D C 2000 5 • (202)331-119 8P. 3

Goo d afternoon
. M ynam e i s John Dimmic k an d I a mVic e Presiden t o f Walters-Dimmic k Petroleum , a gasolin e distributorshi p locate d i n Marshall , Michiga n serving area s o f Michigan , Indian a an d Ohio
. I a

mtestifyin g her e todayo n behal f o f th e Petroleu m Marketer s Associatio n o f Americ a (PMAA) , i n m ycapacit ya s a forme r Chairma n o f PMAA' s Moto r Fuel s Committe e an d a s a curren t membe r o f it s Boar d o f Directors
. I a mals o pas t Presiden t an d a membe r o f th e Boar d o f Director s o f th e Michiga n Petroleu mAssociation
. PMA Ai s a federatio n o f 4 4 stat e an d regiona l trad e association s representin g mor e tha n 11,00 0 independen t petroleu m marketer s throughou t th e Unite d States . Thes e marketer s sel l ove r hal f th e gasoline , 7 5 percen t o f th e hom e heatin g oi l an d 6 0 percen t o f th e diese l fue l consume d i n thi s country . Eighty-nin e percen t o f PMAA' s membershi p i s classifie d a s smal l businesse s unde r siz e categorie s establishe d b yth e Smal l Busines s Administration
. I a mplease d t o hav e thi s opportunit yt o discus s EPA' s rulemakin g o n automobil e refuelin g canisters , a s require d b yth e 199 0 Amendment s t o th e Clea n Ai r Act . PMA Aurge s th e EPAt o issu e th e regulatio n b

ythi s November , a s mandate d b ythes e 199 0 Amendments
. EPAShoul d Issu e th e Onboar d Refuelin g Contro l Regulatio n Th e 199 0 Amendment s direc t th e EPAt o issu e a regulatio n b y November , 199 1 t o phas e i n onboar d refuelin g canister s o n model

yea r 199 6 cars . Las t year , EPAAdministrato r WilliamK . Reill y calle d th e refuelin g control s th e "mos t importan t modificatio n t o moto r vehicle s thi s agenc yca n requir e t o achiev e a genuin e ai r qualit yimprovement. " Th e congressiona l mandat e direct s EPAt o consul t wit h th e Nationa l HighwayTraffi c Safet yAdministratio n (NHTSA ) befor e issuing th e regulation ; however , NHTS Aha s state d it s concern s tha t th e refuelin g control s mayreduc e automobil e safety
. Althoug h th e Clea n Ai r Ac t prohibit s EPAfro mrequirin g a vehicl e componen t o r desig n elemen t tha t cause s o r contribute s t o a n unreasonabl e ris k t o publi c safety , PMA Abelieve s tha t th e bul k o f th e availabl e evidence , includin g studie s b yEPA , independen t studie s an d dat a o n th e existin g evaporativ e contro l system , show s tha t expandin g th e existin g system s t o captur e refuelin g vapor s shoul d no t increas e safet yrisks
. A s a result , PMA

Ajoin s th e Genera l Accountin g Offic e (GAO) , th e America n Petroleu mInstitut e (API) , an d other s i n urgin g EPA t o issu e th e onboar d refuelin g contro l regulation , an d t o us e th e four-yea r perio d betwee n no wan d 199 6 t o tes t prototype s an d fine

tun e the ma s necessaryt o ensur e safety
. W e als o agre e wit h API' s suggestio n tha t th e Nationa l Academ yo f Engineerin g b e engage d a s a neutra l oversee r durin g thi s process .P. 4

Finally , th e NHTS Arepor t state s tha t "sinc e [onboard refueling ] system s increas e safet yris k an d Stag e I I doe s not , i t seem s reasonabl e fo r EPAt o conclud e tha t [these ] system s constitut e a n unreasonabl e safet yrisk. " I n othe r words , accordin g t o NHTSA , th e fac t tha t Stag e I I exist s a s a n alternativ e t o captur e vapo r emissions , effectivel yincrease s th e safet yris k o f th e refuelin g caniste r system(n o matte r ho wnegligibl e o r unproven ) t o a n unreasonabl e level
. Thi s i s certainl yquestionabl e logic
. Whil e th e 199 0 Amendment s requir e Stag e I I control s i n citie s wit h th e wors t ai r qualit yproblems , thes e control s ar e treate d a s a n interi mmeasur e unti l th e refuelin g caniste r i s i n widesprea d use . Congress ' decisio n t o requir e a n onboar d refuelin g rul e wa s no t base d upo n whethe r Stag e I I regulation s wer e issued
. Stag e I I i s no t a substitut e fo r th e onboar d refuelin g system ; an d th e mer e fac t tha t Stag e I I control s exis t a s a n interi mmeasur e shoul d no t b e use d a s a steppin g ston e t o reac h th e conclusio n tha t th e onboar d refuelin g system constitute s a n unreasonabl e safet yrisk
. I n adoptin g th e refuelin g caniste r requirement , Congres s clearl y recognize d tha t thi s systemi s a mor e cos t effectiv e metho d o f controllin g refuelin g vapor s tha n Stag e I I controls
. EPA' s ow n analysis , conducte d ove r th e las t severa l year s an d revise d severa l times , confirm s thi s fact
. Th e EPAha s a non-discretionarydut y t o se e tha t congressiona l intention s wit h regar d t o th e caniste r ar e carrie d out ; an d shoul d no t b e swaye d b yth e subjectiv e analysi s an

d questionabl e logi c o f th e NHTS Areport . Environmenta l • Consideration s Requir e a n Onboar d Refuelin g Regulatio n Th e 199 0 Amendment s als o mandat e a reductio n i n ai r toxics
. Whil e ther e i s n o evidenc e tha t gasolin e vapor s pos e a healt h risk , widesprea d reduction s i n vapo r emission s ar e required
. EPAha s recognize d tha t capturin g thes e emission s vi a Stag e I I system s i s les s efficien t tha n wit h onboar d refuelin g systems . Th e Stag e I I system s ar e subjec t t o a wid e variet yo f mishaps , including nozzl e defect s o r malfunctions , hos e tear s o r liqui d blockag e an d vacuu m pum p malfunctions
. Eve n wit h stringent , costl yenforcement , annua l inspection s an

d rigi d maintenanc e programs , stag e I I control s ca n captur e onl y8 6 percen t o f thes e emissions
. Withou t adde d enforcemen t an

d maintenance , th e effectivenes s rat e plummet s t o 6 2 percent . Th e effectivenes s o f Stag e I I control s t o reduc e ai r toxic s nationwid e is , w e believe , als o limite d b ystatutory exemption s o f smal l marketer s an d independents
. Th e caniste r i s a simpler , mor e effectiv e mechanis mt o attai n emissio n reductions
. I f EPAi s seriou s abou t improving ai r quality , the n th e refuelin g caniste r clearl yi s th e bes t long-ter msolutio n t o achiev e thi s goa l i n al l part s o f th e Unite d States .P. 5

discretionarydut yunde r th e 199 0 Amendments , an d issu e a n onboar d refuelin g regulatio n b yNovember
. I appreciat e th e opportunit yt o b e her e thi s afternoon , an d woul d b e happyt o tryt o answe r an yquestion s yo u ma yhave , eithe r verball yo r i n writing
.P. 6

PETROLEUM MARKETER S ASSOCIATION O

F AMERICA 

## STATISTICA

LQUIC K REFERENC ESHEET 198 9 DAT A NUMBERO FMARKETER S REPRESENTED 10,75 0 TOTALVOLUM EO FREFINED PRODUCT S SOLD 9 9 BILLIO N GALLON S EMPLOYMEN T 271,01 1

Ful l Time Employment

208,55 0 Par t Time Employment

62,46 0 PERCEN T O FU.S

. TOTA LREFINED PRODUCT S 37 % Moto r Gasolin e 63 % Distillate Fuel Oil 52 % DISTRIBUTIO N O FMARKETER S B Y TYPEO FSALE S

Heatin g Fuel s Only 6 % Moto r Fuel s Only 26 % Bot hHeatin g & Motor

Fuel s 68 % TOTA LMOTO RFUEL S RETAI LFACILITIE S SUPPLIED 90,45 7 TOTALMOTO RFUEL S RETAI LFACILITIE S OWNED 38,89 7 TOTALNUMBERO FCONVENIENC ESTORE S OWNED 14,960 HEATINGFUEL S DISTRIBUTIO N CHANNEL S PERCEN T of PRODUC T Residential 83 % Commercial 7 % Othe r Fuel Oil Marketer s 3 % Industrial 5 % Other 2 % MOTO RFUEL S DISTRIBUTIO N CHANNEL S PERCENT of PRODUC T Direc t Owned& Operate d3 1 % Lesse e Dealer

12 % Ope n Dealer

18 % Bulk EndUser s 28 % Cardloc k 4 % Other Wholesaler s 3 % Othe r 4 % BULK STORAGECAPACITY 1.26 BILLIO N GALLON S NUMBE RO FBUL

K STORAG

EFACILITIE S 10,500

Source : Peirolcu m Marketer s Associatio n o f Americ a 199 0 Markete rProfil e Survey ; 199 0 Heatin g Oi l Surve yP. 7

MEMBER S O F TH E PETROLEU M MARKETER S ASSOCIATIONO F AMERICA Th e Petroleu

mMarketer s Associatio n o f Americ a (PMAA ) represent s th e independen t petroleu m marketer s wh o ar e member s o f thes e stat e an

d regiona l trad e associations : Alabama Oilmen' s Associatio n Arizon a Petroleu

mMarketer s Associatio n Arkansa s Oi l Marketer s Association , Inc . Californi a Independen t Oi l Marketer s Associatio n Colorad o Petroleu

mMarketer s Associatio n Independen t Connecticu t Petroleu mAssociatio n Florid a Petroleu

mMarketer s Associatio n Georgi a Oilmen' s Associatio n Idah o Oi l Marketer s Associatio n Illinoi s Petroleu

mMarketer s Associatio n Indian a Oi l Marketer s Association , Inc . Petroleu

mMarketer s o f Iowa Kansa s Oi l Marketer s Associatio n Kentuck yPetroleu

mMarketer s Associatio n Louisian a Oi l Marketer s Associatio n Main e Oi l Dealer s Associatio n Michiga n Petroleu

mAssociatio n Mid-Atlanti c Petroleu mDistributor s Associatio n Mississipp i Petroleu mMarketer s Associatio n Missour i Petroleu

mMarketer s Associatio n Montan a Petroleu

mMarketer s Associatio n Nebrask a Petroleu

mMarketer s Association , Inc . Nevad a Petroleu

m Marketer s Associatio n Independen t Oilmen' s Associatio n o f Ne wEnglan d Ne wEnglan

d Fue l Institut e Fue l Merchant s Associatio n o f Ne wJerse y Ne wMexic o Petroleu mMarketer s Associatio n Empir e Stat e Petroleu mAssociatio n Nort h Carolin a Petroleu mMarketer s Associatio n Northwes t Petroleu

mAssociatio n Ohi o Petroleu

mMarketer s Associatio n Oklahoma Oi l Marketer s Associatio n Orego n Petroleu

mMarketer s Associatio n Pennsylvani a Petroleu mAssociation , Inc . Petroleu

mMarketer s Associatio n o f Wisconsi n Sout h Carolin a Oi l Jobber s Associatio n 

### Sout h Dakot a Petroleu mMarketer s Associatio n Tennesse e Oi l Marketer s Associatio n Texa s Oi l Marketer s Associatio n Virgini a Petroleu

mJobber s Associatio n Washingto n Oi l Marketer s Associatio n Wester n Petroleu

mMarketer s Associatio n Wes t Virgini a Petroleu mMarketer s Associatio n Wyomin g Petroleu

mMarketer s Associatio n
Th e Petroleu

mMarketer s Associatio n o f Americ a i s locate d a t 112 0 Vermon t Avenue , N,W. , Suit e 1130 , Washington , D.C . 20005
. Telephone : (202 ) 331-1198
. FAX : (202 ) 467-633 0