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Regulatory

Announcement

 Printed on Recycled Paper

United States

Environmental Protection

Agency

Air and Radiation EPA420-F-98-038

September 1998

Office of Mobile Sources

Final Rule to Allow Former

Nonattainment Areas to Opt Into the

Federal Reformulated Gasoline

Program

Overview of Final Rule

The Clean Air Act requires EPA to establish standards for cleaner burning RFG to be used in specified ozone nonattainment areas. The Act also

provides that other ozone nonattainment areas, classified as marginal,

moderate, serious, or severe may be included in the RFG program upon

application of the governor of the state in which the area is located. This

final rule will expand this provision to allow states to opt into the RFG

program for areas which had been previously classified as marginal,

moderate, serious, or severe for ozone, but were subsequently redesignated to attainment. This final rule will also allow states to opt into the

reformulated gasoline program for those areas that are currently or were

previously classified as transitional, sub-marginal or incomplete data

ozone nonattainment areas. This will provide additional flexibility to the

states to ensure continued compliance with the National Ambient Air

Quality Standards for ozone in these areas.

The US. Environmental Protection Agency (EPA) revised the

reformulated gasoline RFG regulations to allow states to opt into the

federal RFG program for any area designated as an ozone

nonattainment area as of November 15, 1990, or any time later. This

rule encompasses all areas previously classified as marginal,

moderate, serious or severe ozone nonattainment areas, as well as

those areas currently or previously classified as transitional,

submarginal, no data or incomplete data ozone nonattainment areas.

States can use this additional option to help achieve cleaner air.
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Health and Environmental Benefits

RFG protects health and the environment by reducing harmful vehicle

emissions of ozone-forming compounds and air toxics. RFG produces 15

to 17 percent less pollution than conventional gasoline. Therefore, there

will be less smog-forming ground-level ozone to damage sensitive lung

tissue and make it harder for the lungs to function. Ozone exposure is

especially dangerous to children, the elderly, and people with lung

diseases like asthma, bronchitis, and emphysema.

Air toxics from tailpipe emissions or gasoline vapors also can be harmful. Some of the toxic compounds in gasoline (e.g., benzene) and compounds created when gasoline is burned in the engine are known or

believed to cause cancer. RFG is produced with smaller amounts of

benzene than in previous gasolines, so there is less to get into the air

around us.

Affected States

This final rule will expand the number of areas eligible to opt into the

federal RFG program and thereby provide these health and environmental benefits to the citizens of those areas.

This final rule will affect any state with a former nonattainment area by

providing the state the opportunity to opt into the federal RFG program

for that area. It will also affect areas currently in nonattainment that, for

various reasons, have not been classified as marginal, moderate, serious,

or severe ozone nonattainment areas (i.e., submarginal, transitional, and

incomplete and no data ozone nonattainment areas). Currently, there are

approximately 45 such redesignated areas, and approximately 35 transitional, incomplete and no data ozone nonattainment areas, located in

approximately ten states. One sub-marginal area exists. There are also

several pending redesignation applications. It is difficult to estimate how

many redesignated areas will opt into the RFG program, but several areas

have expressed interest in having the option to use RFG.
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Effect on Industry

If the governor of a state submits a petition to EPA to opt in a former

nonattainment area to the RFG program, EPA would provide notice and

an opportunity for public comment through a complete rulemaking

process before establishing a start date for the use of RFG in that area.

Refiners, importers, and oxygenate blenders who produce or import RFG

for use in areas which opt into the RFG program as a result of this rule

will be subject to the requirements of the RFG program for gasoline sold

in the areas that have opted in. The RFG regulations require the sale of

RFG in areas covered by the program, and also impose certain requirements on refiners, importers, and oxygenate blenders of RFG, such as

sampling and testing, registration, record keeping, reporting, product

transfer documentation, compliance surveys, and attest engagements.

However, it is anticipated that refiners, importers, and oxygenate blenders

who elect to produce or import RFG for use in such opt-in areas will be

companies which currently produce or import RFG for use in existing

RFG covered areas. The RFG regulations require distributors of RFG in

covered areas to perform quality assurance testing, provide product

transfer documents to downstream parties, and retain records of product

transfers and any sampling and testing performed. Retail gasoline stations are required to retain product transfer documents for five years.

For Further Information

Additional documents on the RFG program are available electronically

from the EPA Internet server at:

http://www.epa.gov/oms/rfg.htm

For further information on this rulemaking, please contact Karen Smith

at:

U.S. Environmental Protection Agency

Office of Mobile Sources (6406J)

401 M Street SW

Washington, DC 20460

202-564-9674