The EPA Regional Administrator, Jared Blumenfeld si gned the following proposed rule on March 30, 2015 and

EPA is submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accu racy of this version of this rule, it is not the officia l version. Please refer to the official version in a forthcoming FR publication appearing on the Government Printing Of fice website, http://fdsys.gpo.gov/fdsys/search/home.action , and on www.regulations.gov in Docket Number EPA-R09-OAR-2014-0256.
Billing Code: 6560-50-P
ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52 [EPA-R09-OAR-2014-0256; FRL-____-_ Approval and Promulgation of Implementation Plans; Arizona; Phased Discontinuation of Stage II Vapor Recovery P rogram AGENCY : Environmental Protection Agency (EPA).
ACTION : Direct final rule.
SUMMARY : The Environmental Protection Agency (EPA) is taki ng direct final action to approve a state implementati on plan (SIP) revision from the Arizona Department of Environment al Quality related to the removal of “Stage II” vapor recovery equipment at gasoline dispensing facilities in the Phoenix-Mesa area. Specifically, the EPA is approving a SIP revision t hat eliminates the requirement to install and operate s uch equipment at new gasoline dispensing facilities, and that pro vides for the phased removal of such equipment at existing gasoli ne dispensing facilities from October 2016 through September 2018 . The EPA has previously determined that onboard refueling vapor recovery is in widespread use nationally and waived the stage I I vapor recovery requirement. The EPA is approving this SIP revision because the resultant short-term incremental increa se inThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

2 emissions would not interfere with attainment or ma intenance of the national ambient air quality standards or any o ther requirement of the Clean Air Act and because it wou ld avoid longer-term increases in emissions from the continu ed operation of stage II vapor recovery equipment at gasoline di spensing facilities in the Phoenix-Mesa area.
DATES: This direct final rule is effective on [ INSERT DATE 60
DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGIS TER ] unless the EPA receives adverse comments by [ INSERT DATE 30 DAYS AFTER
DATE OF PUBLICATION IN THE FEDERAL REGISTER ]. If adverse comments are received, the EPA will publish a timel y withdrawal of the direct final rule in the Federal Register informing the public that the rule will not take effect.
ADDRESSES: Submit your comments, identified by Docket No. EPA

R09-OAR-2014-0256, by one of the following methods: 1. Federal Rulemaking Portal: http://www.regulations.gov

. Follow the on-line instructions for submitting comm ents. 2. E-mail: Jeffrey Buss at buss.jeffrey@epa.gov. 3. Fax: Jeffrey Buss, Air Planning Office (AIR-2), at fax number 415-947-3579.
4. Mail: Jeffrey Buss, Air Planning Office (AIR-2), U .S. Environmental Protection Agency, Region IX, 75 Hawt horne, San Francisco, California 94105.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

3 5. Hand or Courier Delivery: Jeffrey Buss, Air Planni ng Section (AIR-2), U.S. Environmental Protection Agen cy, Region IX, 75 Hawthorne, San Francisco, California 94105. Such deliveries are only accepted during the Region al Office’s normal hours of operation. Special arrange ments should be made for deliveries of boxed information. Instructions: Direct your comments to Docket ID No. EPA-R09- OAR-2014-0256. EPA's policy is that all comments re ceived will be included in the public docket without change and may be made available online at www.regulations.gov , including any personal information provided, unless the comment includes i nformation claimed to be Confidential Business Information (CB I) or other information the disclosure of which is restricted b y statute. Do not submit information through www.regulations.gov or e-mail that you consider to be CBI or otherwise protected from disclosure. The www.regulations.gov website is an anonymous access system, which means the EPA will not know yo ur identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to the EPA without going through www.regulations.gov , your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and mad e available on the Internet. If you submit an electronic commen t, the EPAThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

4 recommends that you include your name and other con tact information in the body of your comment and with an y disk or CDROM you submit. If the EPA cannot read your comment due to technical difficulties and cannot contact you for c larification, the EPA may not be able to consider your comment. E lectronic files should avoid the use of special characters, a ny form of encryption, and be free of any defects or viruses.
Docket: All documents in the docket are listed in the www.regulations.gov index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statu te. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available doc ket materials are available either electronically in www.regulations.gov or in hard copy at the Air Planning Office (AIR-2), U.S. Environmental Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, California 94105. The EPA requests that if at all possible, you contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to schedule your inspection during normal business hours.
FOR FURTHER INFORMATION CONTACT : Jeffrey Buss, Office of Air Planning, U.S. Environmental Protection Agency, Reg ion 9, (415) 947-4152, e-mail: buss.jeffrey@epa.gov.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

5 SUPPLEMENTARY INFORMATION : Throughout this document, the terms “we,” “us,” and “our” refer to the EPA.
TABLE OF CONTENTS I. Background II. State Submittal III. Analysis of the State Submittal A. SIP Revision Procedural Requirements B. SIP Revision Substantive Requirements IV. The EPA’s Action and Request for Public Commen t V. Incorporation by reference VI. Statutory and Executive Order Reviews I. Background Under the Clean Air Act (CAA or “Act”), the EPA has promulgated national ambient air quality standards (NAAQS or “standards”) for certain pervasive air pollutants. The NAAQS are concentration levels the attainment and maintenance of which EPA has determined to be requisite to protect public he alth (i.e., the “primary” NAAQS) and welfare (i.e., the “second ary” NAAQS). Under the CAA, states are required to develop and s ubmit plans, referred to as state implementation plans (SIPs) to implement, maintain, and enforce the NAAQS. 1 Ozone is one of the air

1 Under Arizona law, the Arizona Department of Envi ronmental Quality (ADEQ) is responsible for adopting and submitting the Ariz ona SIP and SIP revisions.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

6 pollutants for which the EPA has established NAAQS. 2 The original NAAQS for ozone, established by the EPA in 1979, wa s 0.12 parts per million (ppm), 1-hour average (“1-hour ozone st andard”). 3 Under the CAA, the EPA is also responsible for desi gnating areas of the country as attainment, nonattainment, or unclassifiable for the various NAAQS. States with “nonattainment” areas are required to submit revisi ons to their SIPs that include a control strategy necessary to d emonstrate how the area will attain the NAAQS. Under the CAA Amendments of 1990, the “Phoenix metr opolitan area,” defined by the Maricopa Association of Gover nments’ (MAGs’) urban planning area boundary (but later rev ised to exclude the Gila River Indian Community at 70 FR 68 339 (November 10, 2005)), was classified as a “Moderate” nonattai nment area, 56 FR 56694 (November 6, 1991), and later reclassif ied as a “Serious” nonattainment area, 62 FR 60001 (November 6, 1997), for the 1-hour ozone standard.

Within the Maricopa County portion of the Phoenix-M esa area, the Maricopa Association of Governments (MAG) is responsible for developing regional ozone air quality plans. 2 Ground-level ozone is an oxidant that is formed f rom photochemical reactions in the atmosphere between volatile organi c compounds (VOC) and oxides of nitrogen (NO X ) in the presence of sunlight. These two pollutants , referred to as ozone precursors, are emitted by man y types of pollution sources including on-road motor vehicles (cars, tru cks, and buses), nonroad vehicles and engines, power plants and industrial f acilities, and smaller area sources such as lawn and garden equipment and paints. 3 See 44 FR 8202 (February 8, 1979).This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

7 States with “Serious,” “Severe,” or “Extreme” ozone nonattainment areas were required under CAA section 182(b)(3) to submit SIP revisions that require the use of “Stage II” vapor recovery systems at gasoline dispensing facilities (GDFs) located within the nonattainment area. Gasoline dis pensing pump vapor control devices, commonly referred to as “Sta ge II” vapor recovery, are systems that control VOC vapor releas es during the refueling of motor vehicles. This process takes the vapors normally emitted directly into the atmosphere when pumping gas and recycles them back into the underground fuel st orage tank, preventing them from polluting the air. In response to this requirement, the State of Arizo na promulgated and submitted certain statutes and regu lations that require use of Stage II vapor recovery systems in t he Phoenix metropolitan area, and later extended the requireme nts to a larger geographic area referred to as “Area A.” 4 The EPA approved the state’s Stage-II-related statutes and regulatio ns as a revision to the Arizona SIP. See 59 FR 54521 (Novem ber 1, 1994) and 77 FR 35279 (June 13, 2012).

4 “Area A” is defined in Arizona Revised Statutes ( ARS) section 49-541, and it includes all of the Phoenix metropolitan 1-hour ozone nonattainment area plus additional areas in Maricopa County to the nor th, east, and west, as well as small portions of Yavapai County and Pinal County. Area A roughly approximates the boundaries of the Phoenix-Mesa are a designated by the EPA for the 1997 8-hour ozone standard.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

8 The 1990 amended CAA anticipates that, over time, S tage II vapor recovery requirements at GDFs would be replac ed by “onboard refueling vapor recovery” (ORVR) systems t hat the EPA was to establish for new motor vehicles under CAA s ection 202(a)(6). ORVR consists of an activated carbon can ister installed in a motor vehicle. The carbon canister c aptures gasoline vapors during refueling. There the vapors are captured by the activated carbon in the canister. When the e ngine is started, the vapors are drawn off of the activated carbon and into the engine where they are burned as fuel. In 1 994, the EPA promulgated its ORVR standards, 5 with a minimum 95% vapor capture efficiency, which fully applied to all new light du ty vehicles by 2000. The ORVR requirements were phased in to ap ply to heavier classes of vehicles as well – reaching full effect for all new vehicles with a gross vehicle weight rating of up to 10,000 pounds by 2006. Recognizing that, over time, the number of vehicles with ORVR as a percentage of the overal l motor vehicle fleet would increase with the turnover of o lder models not equipped with ORVR with newer models equipped w ith ORVR, CAA section 202(a)(6) also permits the EPA to promulgat e a determination that ORVR is in “widespread use” thro ughout the

5 See 59 FR 16262 (April 6, 1994).This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

9 motor vehicle fleet and to revise or waive Stage II vapor recovery requirements for Serious, Severe and Extre me ozone nonattainment areas. Meanwhile, the EPA has taken certain actions that a ffect SIP planning in general, and the Phoenix metropolit an area and Stage II vapor recovery SIP requirements in particu lar, including the following:

• Revision of the NAAQS for ozone, setting it at 0.08 ppm averaged over an 8-hour timeframe (referred to here in as the “1997 8-hour ozone standard”)(62 FR 33856, July 18, 1997), and designation of the Phoenix-Mesa area 6 as a “Marginal” nonattainment area (69 FR 23857, April 3 0, 2004; 77 FR 28424, May 14, 2012);

• Redesignation of the Phoenix metropolitan area from nonattainment to attainment for the 1-hour ozone st andard (70 FR 34362; June 14, 2005), and revocation of the 1-hour ozone standard, effective June 15, 2005 (40 CFR 50. 9(b));

• Revision of the 8-hour ozone standard down to 0.075 ppm (the 2008 8-hour ozone standard) (73 FR 16436, Marc h 27,

6 The Phoenix-Mesa 1997 8-hour ozone nonattainment area covers a much larger portion of Maricopa County than the Phoenix metropo litan 1-hour ozone area and also includes the Apache Junction portion of Pi nal County. The precise boundaries of the Phoenix-Mesa 1997 8-hour ozone no nattainment area and the Phoenix metropolitan 1-hour ozone nonattainment are found in 40 CFR 81.303.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

10 2008), and designation of the Phoenix-Mesa area as a “Marginal” nonattainment area for the 2008 8-hour o zone standard (77 FR 30088, May 21, 2012); 7

• Determination that ORVR systems are in “widespread use” in the nation’s motor vehicle fleet (77 FR 28772, May 16, 2012; and 40 CFR 51.126); and

• Redesignation of the Phoenix-Mesa ozone area from nonattainment to attainment for the 1997 8-hour ozo ne standard (79 FR 55645, September 17, 2014). In the wake of the EPA’s “widespread use” determina tion, states, such as Arizona, that were required to impl ement Stage II vapor recovery programs under CAA section 182(b) (3) are now permitted to remove the requirement from their SIPs under certain circumstances. On August 7, 2012, the EPA r eleased its “Guidance on Removing Stage II Gasoline Vapor Contr ol Programs from State Implementation Plans and Assessing Compa rable Measures” 8 (“Stage II Guidance”) to aid in the development of SIP

7 The nonattainment area for the 2008 8-hour ozone standard was expanded slightly to the south and west in Maricopa County a s compared to the boundary established for the 1997 8-hour ozone standard. See 40 CFR 81.303 for the exact boundaries of the Phoenix-Mesa 2008 8-hour oz one nonattainment area. For both 8-hour ozone standards, the nonattainment area is referred to as the “Phoenix-Mesa” area. The applicable attainment date for areas initially classified as “Marginal” nonattainment areas for th e 2008 8-hour ozone standard is July 20, 2015. 8 “Guidance on Removing Stage II Gasoline Vapor Con trol Programs from State Implementation Plans and Assessing Comparable Measu res,” EPA Office of Air Quality Planning and Standards, August 7, 2012.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

11 revisions to remove Stage II controls from GDFs. Th e Stage II Guidance also provides a series of equations to det ermine the emissions impacts of removing Stage II controls. In summary, the State of Arizona established Stage II vapor recovery requirements in the Phoenix metropolitan a rea to address CAA requirements for “Serious” nonattainmen t areas for the 1-hour ozone standard and later extended the re quirements to a larger geographic area known as Area A that rough ly approximates the boundaries of the Phoenix-Mesa 199 7 8-hour ozone area. The Phoenix metropolitan area has been redesignated to attainment for the 1-hour ozone standard, and th e PhoenixMesa area has been redesignated to attainment for t he 1997 8- hour ozone standard, but the Phoenix-Mesa area rema ins designated “Marginal” nonattainment for the 2008 8- hour ozone standard. Under 40 CFR 51.126, Stage II vapor recov ery is no longer a SIP requirement in ozone nonattainment are as, and existing SIP provisions establishing Stage II vapor recovery requirements may be rescinded under certain circums tances. In today’s action, and for the reasons set forth in th e following section of this document, the EPA is approving the State of Arizona’s revisions to its SIP that eliminate Stage II requirements for new GDFs and that provide for the phased removal of Stage II vapor recovery equipment at exi sting GDFsThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

12 within the geographic area referred to as “Area A,” which roughly approximates the boundaries of the Phoenix- Mesa area for the 1997 8-hour ozone standard. II. State Submittal On September 2, 2014, ADEQ submitted a SIP revision to phase-out Stage II vapor recovery requirements in A rea A by eliminating the requirement to install Stage II equ ipment at new GDFs and by providing for a phased decommissioning process to remove Stage II equipment at existing GDFs beginnin g in October 2016 and ending in September 2018. The SIP submitta l includes the SIP revision itself, “MAG State Implementation Plan Revision for the Removal of Stage II Vapor Recovery Controls in the Maricopa Eight-Hour Ozone Nonattainment Area” (“Sta ge II Vapor Recovery SIP Revision” or “SIP Revision”), as well as supporting materials related to legal authority and completene ss. The Stage II Vapor Recovery SIP Revision includes nonregulato ry materials, such as a narrative and supporting technical analys is, and includes a law (House Bill 2128) passed by the Ariz ona Legislature and signed by the Governor providing fo r the phaseout of the Stage II vapor recovery requirements. Effective for State law purposes upon the Governor’ s signature (i.e., on April 22, 2014), HB 2128 (in re levant part) amends Arizona Revised Statutes (ARS) sections 41-2 131This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

13 (“Definitions”), 41-2132 (“Stage I vapor recovery s ystems”), 41- 2133 (“Compliance schedules”), and adds new section 41-2135 (“Stage II vapor recovery systems”). The new sectio n ARS 41-2135 retains the existing Stage II control requirements for existing GDFs and establishes a phased decommissioning proce ss to remove Stage II controls beginning October 1, 2016 and end ing September 30, 2018. The two-year period for decommissioning is based on the expectation of the Arizona Department of Weights an d Measures (ADWM) of the time necessary to safely decommission Stage II controls at the over 1,000 existing GDFs in Area A. Decommissioning is expected to be spread evenly ove r each of the 24 months from October 2016 through September 2018 and to occur for existing GDFs during the month when the annual scheduled Stage II controls test would have occurred. HB 2128 repeals the new section 41-2135 on September 30, 2018 coincidin g with the completion of the Stage II decommissioning process. To address the potential for adverse impacts relative to attai nment and maintenance of the NAAQS, the SIP submittal include s a year-byyear analysis of the changes in VOC emissions takin g into account both the elimination of Stage II controls a t new GDFs and the phase-out of Stage II controls at existing GDFs from October 2016 through September 2018.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

14 III. Analysis of the State Submittal A. SIP Revision Procedural Requirements CAA sections 110(a)(1), 110(a)(2), and 110(l) requi re a state to provide reasonable public notice and oppor tunity for public hearing prior to the adoption and submittal of a SIP or SIP revision. To meet this requirement, every SIP s ubmittal should include evidence that adequate public notice was given and a public hearing (if requested) was held consis tent with EPA’s implementing regulations in 40 CFR 51.102. Appendix B of the Stage II Vapor Recovery SIP Revis ion documents the public process followed by MAG and AD EQ in developing, adopting, and submitting this SIP revis ion. Specifically, on May 2 and 3, 2014, ADEQ and MAG pu blished a notice, in a newspaper of general circulation in th e Phoenix area, of a joint public hearing to be held on June 3, 2014 and the availability of the draft version of the Stage II vapor recovery SIP revision for public review and comment . ADEQ and MAG conducted the public hearing on June 3, 2014. A DEQ and MAG received no comments on the draft SIP revision. On August 27, 2014, MAG’s Regional Council adopted the Stage II V apor Recovery SIP Revision. ADEQ subsequently adopted and submitt ed the SIP revision to EPA by letter dated September 2, 2104. As such, ADEQ and MAG have satisfied applicable statutory and reg ulatoryThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

15 procedural requirements for adoption and submittal of this SIP revision. B. SIP Revision Substantive Requirements As discussed above, pursuant to the EPA’s determina tion of “widespread use” (of ORVR systems in the motor vehi cle fleet), Stage II vapor recovery controls are no longer a SI P requirement, and thus, states are allowed to rescin d such control requirements in their SIPs if doing so is c onsistent with the general SIP revision requirements of CAA s ection 110(l) and section 193. In relevant part, CAA section 110( l) prohibits the EPA from approving a SIP revision if that revis ion would interfere with any applicable requirement concernin g reasonable further progress towards, or attainment of, any of the NAAQS, or any other applicable requirement of the CAA. Section 193 provides, in relevant part, that no con trol requirement in effect, or required to be adopted, b efore November 15, 1990 (i.e., the effective date of the CAA Amendments of 1990) in any area which is a nonattai nment area for any air pollutant may be modified after Novembe r 15, 1990 in any manner unless the modification insures equivale nt or greater emission reductions of such air pollutant. Arizona’ s Stage II vapor recovery controls were developed in response to the CAA Amendments of 1990 and thus were adopted and approv ed in theThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

16 years following the 1990 CAA Amendments. Thus, the requirements of section 193 do not apply to this particular SIP revision. As described in the Background section of this document, Stage II and ORVR are two types of emission control systems that capture fuel vapors from vehicle gas tanks during r efueling. Stage II controls are installed in the dispensing p umps while ORVR is installed as part of the motor vehicle. Sta ge II and ORVR were initially both required by the 1990 CAA A mendments, but Congress recognized that Stage II and ORVR woul d eventually become largely redundant technologies as the percen tage of the nation’s motor vehicle fleet equipped with ORVR inc reases, and provided authority to the EPA to allow states to re move Stage II from their SIPs after the EPA finds that ORVR is in widespread use. The EPA’s Stage II Guidance projects that, by 2015, over 84% of all the gasoline dispensed in the nation wil l be dispensed to ORVR-equipped motor vehicles. 9 As such, Stage II and ORVR have become largely redundant technologies, an d Stage II control systems are achieving an ever-declining emi ssions benefit as more ORVR-equipped vehicle continue to e nter the onroad motor vehicle fleet. In addition, the EPA’s St age II Guidance recognizes that, in areas where certain ty pes of

9 See Table A-1 of the Stage II Guidance.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

17 vacuum-assist Stage II control systems are used, th e limited compatibility between ORVR and some configurations of this Stage II hardware may ultimately result in an area-wide e missions disbenefit. The disbenefit can result when the Stag e II controls pull air into the underground tank instead of gasol ine vapors when both vacuum-assist Stage II controls and ORVR are active during refueling. This increases the pressure in th e underground tank and can cause venting of excess emissions into the air. The Phoenix-Mesa ozone nonattainment area is an are a where the vast majority of Stage II systems that have bee n installed use vacuum assist technologies. 10 As documented in chapter 2 of the Stage II Vapor Recovery SIP Revision and in MAG ’s technical support document (appendix A, exhibit 1 of the SIP Revision), MAG used the equations recommended by the EPA in it s Stage II Guidance to calculate the areawide emission reducti on benefits/disbenefits associated with Stage II contr ols on vehicle refueling emissions in the Phoenix-Mesa ozo ne nonattainment area. More specifically, MAG develope d year-byyear estimates of areawide VOC emissions from motor vehicle refueling with use of Stage II controls in the Phoe nix-Mesa area

10 Table A-6 of the EPA’s Stage II Guidance cites th e percentages of State/Area GDF using vacuum assist Stage II technol ogy. The listed percentage for the Phoenix-Mesa area is 85%.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

18 taking into account the fraction of gasoline throug hput covered by Stage II controls, the fraction of gasoline disp ensed to ORVR-equipped vehicles, the Stage II control in-use control efficiency, the fraction of gasoline dispensed thro ugh vacuumassisted Stage II control, and the compatibility fa ctor for the increase in underground storage tank vent emissions relative to normal conditions. Based on MAG’s estimates, assuming Stage II require ments remain in place, the VOC emissions reductions benef its from Stage II controls would continue a steady decline u ntil 2018 when the implementation of Stage II controls will f irst result in an emissions disbenefit. Without rescission of S tage II control requirements, the disbenefit would then inc rease over time in concert with the increase in the frequency of refueling by ORVR-equipped vehicles at vacuum-assist Stage II GDFs. The Stage II Vapor Recovery SIP Revision is intende d to minimize the temporary increases in VOC emissions d uring the decommissioning process and to avoid the long-term disbenefit by eliminating the requirement for installing Stage II equipment at new GDFs and phasing-out the Stage II requirement f or (and providing for the removal of Stage II equipment at) existing GDFs from October 2016 through September 2018. To e stimate the emissions impacts due to the SIP Revision, MAG deve loped year-This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

19 by-year VOC estimates for the foregone emissions re ductions due to construction of new GDFs from 2014 through 2017 without Stage II controls and due to the decommissioning of Stage II controls at existing GDFs during the 2017 ozone season. Tabl e 1 below compares the VOC emissions impacts with and without the Stage II Vapor Recovery SIP Revision in the Phoenix-Mesa are a based on MAG’s estimates.

___________________________________________________ ___________ Table 1 – Comparison of VOC Emissions Impacts in th e PhoenixMesa Area With and Without the Stage II Vapor Recov ery SIP Revision

___________________________________________________ ___________

Year Column 1:

Emission Reduction Benefits from Stage II Controls (Summer, mtpd) a Column 2: Emission Reduction Benefits from Stage II Controls With SIP Revision (Summer, mtpd) b Column 3: Emission Impact of SIP Revision (Summer, mtpd) c

2014 0.725 0.710 0.015 2015 0.462 0.443 0.019 2016 0.238 0.223 0.015 2017 0.060 0.029 0.031 2018 -0.108 -0.023 -0.085 2019 -0.244 0 -0.244 2020 -0.359 0 -0.359

a Column 1 is from table 2-3 of the Stage II Vapor R ecovery SIP Revision. b Column 2 is derived by combining column 1 with the estimates of total temporary increases in VOC emissions from the SIP R evision shown in table 2-7 of the Stage II Vapor Recovery SIP Revision, ex cept for year 2018 during which a disbenefit of 0.023 mtpd is expected due to existing facilities that have not removed Stage II controls by the beginning of the 2018 ozone season.

c Column 3 is derived by subtracting column 2 from c olumn 1. NOTE : Negative values in the columns listing emission r eduction benefits indicate increases in emissions.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

20 As shown in table 1, without the Stage II Vapor Rec overy SIP Revision, the emissions benefits from implement ation of Stage II controls in the Phoenix-Mesa area would de cline until 2018 when implementation of Stage II would result i n an emissions increase due to the incompatibility betwe en ORVRequipped vehicles and vacuum-assist Stage II techno logy. With the SIP Revision, table 1 shows that the emissions reduction benefits from implementation of Stage II in the Pho enix-Mesa area would be reduced slightly due to the construct ion and operation of new GDFs without Stage II controls and due to the phase-out of Stage II vapor controls at existing GD Fs during the 2017 ozone season. 11 The temporary emissions increases due to the SIP Revision (relative to the scenario in which Sta ge II requirements remain fully implemented) will occur d uring years 2014 through 2017 and range from 0.015 mtpd to 0.03 1 mtpd. Beginning in 2018 and increasing in magnitude there after, the SIP Revision will result in fewer VOC emissions tha n would otherwise have occurred if Stage II requirements we re to remain fully implemented in the Phoenix-Mesa area (once ag ain, due to the incompatibility of ORVR-equipped vehicles and v acuum-assist Stage II technologies).

11 Under the SIP Revision, the phase-out for existin g GDFS begins in October 2016, and thus does not affect the 2016 ozone seaso n.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

21 For perspective, we note that the temporary increas es in VOC emissions during years 2014 through 2017 due to the SIP Revision would represent an approximate 0.002 perce nt to 0.005 percent increase in the overall VOC emissions inven tory in the Phoenix-Mesa area. 12 Such increases would have negligible impacts on ozone concentrations in the area. More important ly, the schedule for the phase-out of Stage II controls und er the SIP Revision will maintain most of the emissions reduct ions benefits associated with Stage II control through 2017 while avoiding the more significant increases in VOC emissions that wo uld otherwise occur beginning in 2019 and beyond due to the incom patibility effects described above between ORVR-equipped vehic les and vacuum-assist Stage II technologies. In 2018, the s cheduled phase-out will reduce the emissions increase (due t o ORVR and Stage II incompatibilities) that would otherwise be expected but would not entirely avoid an emissions increase beca use some existing GDFs will not yet have removed Stage II co ntrols by the beginning of the 2018 ozone season. All Stage II co ntrols will be decommissioned by September 30, 2018 under the S tage II Vapor

12 The EPA-approved MAG Eight-Hour Ozone Maintenance Plan anticipates VOC emissions between 653.9 mtpd (June ozone episode, 2 005) and 659.0 mtpd (June ozone episode, 2015) during the relevant period. Se e our proposed approval of the maintenance plan and redesignation request at 7 9 FR 16734, at 16744 (March 26, 2014).This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

22 Recovery SIP Revision. Lastly, the phase-out of Sta ge II controls by the end of the 2018 ozone season will s upport longer-term regional efforts to attain or maintain the 1997 and 2008 8-hour ozone standards in the Phoenix-Mesa are a. We find MAG’s methods and assumptions, as documente d in chapter 2 of the Stage II Vapor Recovery SIP Revisi on and in MAG’s technical support document, to be reasonable, and we find that MAG’s emissions estimates provide a reasonable basis upon which to evaluate the ozone impacts of the SIP Revi sion. Moreover, based on MAG’s emissions estimates and fo r the reasons provided above, we conclude that the SIP Revision w ould not interfere with reasonable further progress toward, or attainment of, any of the NAAQS and would not interfere with a ny other applicable requirement of the CAA. Thus, we conclud e that the SIP Revision is approvable under CAA section 110(l)
. IV. The EPA's Action and Request for Public Comment The EPA is taking direct final action to approve th e Stage II Vapor Recovery SIP Revision submitted by ADEQ on September 2, 2014 to provide for the phased removal of “Stage II ” vapor recovery equipment at gasoline dispensing facilitie s in the Phoenix-Mesa area. Specifically, the EPA is approvi ng a SIP revision that eliminates the requirement to install and operate such equipment at new gasoline dispensing facilitie s, and thatThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

23 provides for the phased removal of such equipment a t existing gasoline dispensing facilities from October 2016 th rough September 2018. The EPA is approving this SIP revision because Stag e II vapor recovery controls are no longer a SIP require ment under CAA section 182(b)(3) due to EPA’s “widespread use determination” for ORVR. Additionally, we are appro ving this SIP revision because the temporary incremental increase in VOC emissions from 2014 through 2018 would not interfer e with reasonable further progress toward, or attainment o f, any of the NAAQS, and because this SIP revision avoids the lon ger-term VOC emissions increases associated with continued imple mentation of Stage II controls in the Phoenix-Mesa area. As part of this final action, the EPA is approving the specific sta tutory provisions that provide for the phase-out of Stage II controls in Area A, i.e., sections 5 through 8, and 10 throu gh 12 of House Bill 2128, amending ARS sections 41-2131, 41- 2132, 41-2133 and adding section 41-2135. 13

13 Approval of these statutory provisions as revisio ns to the Arizona SIP supersedes the following existing SIP provisions in the Arizona SIP: ARS section 41-2131, as approved at 77 FR 35279 (June 1 3, 2012); ARS section 41- 2132, as approved at 77 FR 35279 (June 13, 2012); a nd ARS section 41-2133, as approved at 77 FR 35279 (June 13, 2012).This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

24 We are publishing this action without prior proposa l because we view this as a noncontroversial SIP revi sion and anticipate no adverse comments. In the Proposed Rul es section of this Federal Register publication, however, we are publishing a separate document that will serve as the proposal t o approve the state SIP revision if relevant adverse comments are filed. This rule will be effective [ INSERT DATE 60 DAYS AFTER DATE OF
PUBLICATION IN THE FEDERAL REGISTER ] without further notice unless we receive relevant adverse comments by [ INSERT DATE 30
DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGIS TER ]. If we receive such comments, we will withdraw this action before the effective date by publishing a separate document withdrawing the direct final action. All public com ments received will then be addressed in a subsequent fin al rule based on the proposed action. The EPA will not institute a second comment period. Any parties interested in commentin g on this action should do so at this time. Please note that if the EPA receives adverse comment on an amendment, paragraph , or section of this rule and if that provision may be severed f rom the remainder of this rule, the EPA may adopt as final those provisions of the rule that are not the subject of an adverse comment. If we do not receive any comments, this ac tion will beThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

25 effective on [ INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION IN
THE FEDERAL REGISTER ]. V. Incorporation by reference In this rule, the EPA is finalizing regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, the EPA is finalizing t he incorporation by reference of certain sections of H ouse Bill 2128 amending various sections of the Arizona Revis ed Statutes related to stage II vapor recovery systems in Area A, effective April 22, 2014, as described in the amendments to 4 0 CFR part 52 set forth below. The EPA has made, and will continu e to make, these documents generally available electronically through www.regulations.gov and/or in hard copy at the appropriate EPA office (see the ADDRESSES section of this preamble for more information). VI. Statutory and Executive Order Reviews Under the Clean Air Act, the Administrator is requi red to approve a SIP submission that complies with the pro visions of the Act and applicable Federal regulations. 42 U.S. C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions , EPA’s role is to approve state choices, provided that they mee t the criteria of the Clean Air Act. Accordingly, this ac tion merely approves state law as meeting Federal requirements and does notThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

26 impose additional requirements beyond those imposed by state law. For that reason, this action: • is not a “significant regulatory action” subject to review by the Office of Management and Budget under Execut ive Order 12866 (58 FR 51735, October 4, 1993); • does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C . 3501 et seq.); • is certified as not having a significant economic impact on a substantial number of small entities under the Re gulatory Flexibility Act (5 U.S.C. 601 et seq.); • does not contain any unfunded mandate or signific antly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Public Law 10 4-4); • does not have Federalism implications as specifie d in Executive Order 13132 (64 FR 43255, August 10, 1999 ); • is not an economically significant regulatory act ion based on health or safety risks subject to Executive Orde r 13045 (62 FR 19885, April 23, 1997); • is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); • is not subject to requirements of Section 12(d) o f the National Technology Transfer and Advancement Act of 1995This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

27 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean A ir Act;
and • does not provide the EPA with the discretionary a uthority to address, as appropriate, disproportionate human health or environmental effects, using practicable and leg ally permissible methods, under Executive Order 12898 (5 9 FR 7629, February 16, 1994). In addition, the SIP is not approved to apply on an y Indian reservation land or in any other area where the EPA or an Indian tribe has demonstrated that a tribe has jurisdictio n. In those areas of Indian country, this rule does not have tr ibal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), nor will it impose substantial d irect costs on tribal governments or preempt tribal law. The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States . The EPA will submit a report containing this action and oth er required information to the U.S. Senate, the U.S. House ofThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

28 Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register
. A major rule cannot take effect until 60 days after it is published in the Federal Register . This action is not a “major rule” as defined by 5 U.S.C. 804(2). Under section 307(b)(1) of the Clean Air Act, petit ions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by [ INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION IN THE FEDER AL REGISTER ]. Filing a petition for reconsideration by the Admini strator of this final rule does not affect the finality of thi s action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule o r action. Parties with objections to this direct final rule a re encouraged to file a comment in response to the parallel notic e of proposed rulemaking for this action published in the Propose d Rules section of today’s Federal Register , rather than file an immediate petition for judicial review of this dire ct final rule, so that the EPA can withdraw this direct fina l rule and address the comment in the proposed rulemaking. Thi s action may not be challenged later in proceedings to enforce i ts requirements (see section 307(b)(2)).This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

29 List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relat ions, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds.

Dated: March 30, 2015. _____//signed//___________

_ Jared Blumenfeld, Regional Administrator, Region IX.This document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

30 Chapter I, title 40 of the Code of Federal Regulati ons is amended as follows: PART 52 — APPROVAL AND PROMULGATION OF IMPLEMENTATI ON PLANS 1. The authority citation for part 52 continues to read as follows: Authority : 42 U.S.C. 7401 et seq. Subpart D — Arizona 2. Section 52.120 is amended by adding paragraph (c )(171) to read as follows: § 52.120 Identification of plan.
* * * * * (c) * * * (171) The following plan was submitted on September 2, 2014 by the Governor’s designee. (i) Incorporation by reference. (A) Arizona Department of Environmental Quality. ( 1 ) House Bill 2128, effective April 22, 2014, exclud ing sections 1 through 4, and 9. (ii) Additional materials. (A) Arizona Department of Environmental Quality. ( 1 ) MAG 2014 State Implementation Plan Revision for the Removal of Stage II Vapor Recovery Controls in the Maricopa Eight-Hour Ozone Nonattainment Area (August 2014), adopted by the RegionalThis document is a prepublication version signed by EPA Regional Administrator Jared Blumenfeld on Mar ch 30,

2015. We have taken steps to ensure the accuracy of this version, but it is not the official version.

31 Council of the Maricopa Association of Governments on August 27, 2014, excluding appendix A, exhibit 2 (“Arizona Rev ised Statutes Listed in Table 1-1”).
* * * * *