[Federal Register Volume 72, Number 78 (Tuesday, April 24, 2007)]
[Rules and Regulations]
[Pages 20237-20242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7777]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2006-0841; FRL-8304-1]
RIN 2060-A034


Regulation of Fuels and Fuel Additives: Extension of the 
Reformulated Gasoline Program to Illinois Portion of the St. Louis, 
Illinois-Missouri Ozone Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: Under section 211(k)(6) of the Clean Air Act, the 
Administrator of EPA shall require the sale of reformulated gasoline 
(RFG) in an ozone nonattainment area classified as marginal, moderate, 
serious or severe upon the application of the Governor of the state in 
which the nonattainment area is located. This final action extends the 
Act's prohibition against the sale of conventional gasoline (i.e., 
gasoline that is not RFG) to the Illinois portion of the St. Louis, 
Illinois-Missouri moderate ozone nonattainment area. The Agency will 
implement this prohibition for refiners and all other persons in the 
fuel distribution system other than retailers and wholesale purchaser-
consumers on June 1, 2007. For retailers and wholesale purchaser-
consumers, EPA's final action implements the prohibition on July 1, 
2007. As of the compliance date for retailers and wholesale purchaser-
consumers, this area will be treated as a covered area for all purposes 
of the Federal RFG program.

DATES: This final rule is effective April 20, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OAR-2006-0841. All documents in the docket are listed on the 
http://www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically through http://www.regulations.gov or in hard copy at the Air Docket, EPA/DC, EPA 
West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744, and the telephone number for the Air 
Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Kurt Gustafson, Transportation and 
Regional Programs Division (Mail Code 6406J), Environmental Protection 
Agency, 1200 Pennsylvania Ave, NW., Washington, DC 20460; telephone 
number: 202-343-9219; fax number: 202-343-2800; e-mail address: 
<a href="/cdn-cgi/l/email-protection#9bfceee8effafde8f4f5b5f0eee9efdbfeebfab5fcf4ed"><span class="__cf_email__" data-cfemail="67001214130601140809490c1215132702170649000811">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Under section 211(k)(6) of the Clean Air 
Act, as amended (Act), the Administrator of EPA must require the sale 
of reformulated gasoline in an ozone nonattainment area classified as 
Marginal, Moderate, Serious, or Severe upon the application of the 
governor of the state in which the nonattainment area is located. This 
final action extends the prohibition set forth in section 211(k)(5) 
against the sale of conventional (i.e., non-reformulated) gasoline to 
the Illinois portion of the St. Louis, Illinois-Missouri moderate ozone 
nonattainment area. For all persons other than retailers and wholesale 
purchaser-consumers (i.e., refiners, importers,and distributors), this 
rule establishes the implementation date of the prohibition in Section 
211(k)(5) as June 1, 2007. For retailers and wholesale purchaser-
consumers, this rule establishes the implementation date of the 
prohibition in section 211(k)(5) on July 1, 2007. As of the 
implementation date for retailers and wholesale purchaser-consumers, 
the Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area will be a covered area for all purposes in the 
Federal RFG program.
    The final preamble and regulatory language are also available 
electronically from the Federal Register Web site or via the docket at 
the http://www.regulations.gov site listed above.

General Information

Does This Action Apply to Me?

    This action may affect you if you produce, distribute, or sell 
gasoline for use in the Illinois portion of the St. Louis, Illinois-
Missouri ozone nonattainment area.
    The table below gives some examples of entities that may have to 
comply with the regulations. However, since these are only examples, 
you should carefully examine these and other existing regulations in 40 
CFR part 80. If you have any questions, please contact the person 
listed in the FOR FURTHER INFORMATION CONTACT section above.

[[Page 20238]]

    Regulated entities: Entities potentially regulated by this action 
are those which produce, supply or distribute motor gasoline. Regulated 
categories and entities include:

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                                               NAICS Codes                    Examples of potentially regulated
                  Category                         \a\        SIC Codes \b\                entities
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Industry...................................          324110            2911  Petroleum Refiners.
Industry...................................          422710            5171  Gasoline Marketers and
                                                                              Distributors.
                                                     422720            5172  ...................................
Industry...................................          484220            4212  Gasoline Carriers.
                                                     484230            4213  ...................................
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\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) system code.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your business is regulated by this action, you should carefully examine 
the list of areas covered by the reformulated gasoline program in Sec.  
80.70 of title 40 of the Code of Federal Regulations. If you have 
questions regarding the applicability of this action to a particular 
entity, consult the person listed in the preceding FOR FURTHER 
INFORMATION CONTACT section.
    The remainder of this final rulemaking is organized in the 
following sections:

I. Background
    A. Opt-In Provision/Process
    B. EPA Procedures and Illinois Opt-In Request
II. Final Action
III. Response to Comments
IV. Environmental Impact
V. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Executive Order 12898: Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    C. Paperwork Reduction Act
    D. Regulatory Flexibility Act
    E. Unfunded Mandates Reform Act
    F. Executive Order 13132: Federalism
    G. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    H. Executive Order 13045: Protection of Children From 
Environmental Health & Safety Risks
    I. Executive Order 13211: Actions That Significantly Effect 
Energy Supply
    J. National Technology Transfer Advancement Act
    K. Statutory Authority
    L. Congressional Review Act

I. Background

A. Opt-In Provision/Process

    As part of the Clean Air Act Amendments of 1990, Congress added a 
new subsection (k) to section 211 of the Act. Subsection (k) prohibits 
the sale of conventional gasoline (i.e., gasoline that EPA has not 
certified as reformulated) in certain ozone nonattainment areas 
beginning January 1, 1995. Section 211(k)(10)(D) defines the areas 
covered by the reformulated gasoline (RFG) program as the nine ozone 
nonattainment areas having a 1980 population in excess of 250,000 and 
having the highest ozone design values during the period 1987 through 
1989.\1\ In addition, under section 211(k)(10)(D), any area 
reclassified as a severe ozone nonattainment area under section 181(b) 
is also included in the RFG program. EPA first published final 
regulations for the RFG program on February 16, 1994. See 59 FR 7716.
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    \1\ Applying these criteria, EPA has determined the nine covered 
areas to be the metropolitan areas including Los Angeles, Houston, 
New York City, Baltimore, Chicago, San Diego, Philadelphia, Hartford 
and Milwaukee.
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    Certain other ozone nonattainment areas may be included in the 
program at the request of the Governor of the State in which the area 
is located. Section 211(k)(6)(A) provides that upon the application of 
a Governor, EPA shall apply the prohibition against selling 
conventional gasoline in ``any area in the State classified under 
subpart 2 of Part D of Title I as a marginal, moderate, serious or 
severe'' ozone nonattainment area. Subparagraph 211(k)(6)(A) further 
provides that EPA is to apply the prohibition as of the date the 
Administrator ``deems appropriate, not later than January 1, 1995, or 1 
year after such application is received, whichever is later.'' In some 
cases the effective date may be extended for such an area as provided 
in section 211(k)(6)(B) based on a determination by EPA that there is 
``insufficient domestic capacity to produce'' RFG. EPA is to publish a 
Governor's application in the Federal Register.

B. EPA Procedures and Illinois Opt-In Request

    EPA received an application July 10, 2006 from the Honorable Rod R. 
Blagojevich, Governor of the State of Illinois, for the Illinois 
portion of the St. Louis, Illinois-Missouri ozone nonattainment area to 
be included in the reformulated gasoline program. The State indicated 
that the RFG program would provide the area with needed reductions in 
ozone-forming emissions and air toxics. The Governor requested a 
January 1, 2007 implementation date. EPA published the Governor's 
letter in the Federal Register, as required by section 211(k)(6). On 
December 27, 2006 (71 FR 77690) EPA proposed to extend the RFG program 
to the Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area by setting two implementation dates. EPA requested 
comment on start dates and proposed an effective date of May 1, 2007 
for refiners, importers, and distributors and June 1, 2007 for 
retailers and wholesale purchaser-consumers.
    Today EPA is taking final action on that NPRM and establishing 
effective dates for opt in of the Illinois portion of the St. Louis, 
Illinois-Missouri ozone nonattainment area to the RFG program. For all 
persons other than retailers and wholesale purchaser-consumers (i.e., 
refiners, importers, and distributors), this rule establishes the 
implementation date of the prohibition in section 211(k)(5) as June 1, 
2007. For retailers and wholesale purchaser-consumers, this rule 
establishes the implementation date of the prohibition in Section 
211(k)(5) as July 1, 2007. As of the implementation date for retailers 
and wholesale purchaser-consumers, the Illinois portion of the St. 
Louis, Illinois-Missouri ozone nonattainment area will be a covered 
area for all purposes in the Federal RFG program.
    After publication of the NPRM, EPA received a request for a public 
hearing. EPA published a notice in the Federal

[[Page 20239]]

Register announcing that a public hearing would be held on February 21, 
2007, in Chicago, Illinois, and extending the comment period until 
March 23, 2007 (30 days after the hearing). The transcript of the 
public hearing has been placed in the docket for this action.

II. Final Action

    The Federal RFG program includes seasonal requirements. Summertime 
RFG must meet certain VOC control requirements to reduce emissions of 
VOCs, an ozone precursor. Under the RFG program, there are two 
compliance dates for VOC-controlled RFG. At the refinery level, and all 
other points in the distribution system other than the retail level, 
compliance with RFG VOC-control requirements is required from May 1 to 
September 15. At the retail level (service stations and wholesale 
purchaser-consumers), compliance is required from June 1 to September 
15. See 40 CFR 80.78 (a)(1)(v). Pipeline requirements and demands for 
RFG from the supply industry drive refineries to establish their own 
internal compliance date earlier than May so that they can then assure 
that terminals are capable of meeting the RFG VOC-control requirements 
by May 1.
    EPA regulations specify that the RFG covered areas of certain 
states that are in ``VOC control Region 1'', while those of other 
states are in ``VOC control Region 2.'' VOC requirements for the RFG 
sold in these Regions differ somewhat. EPA regulations also provide 
that RFG in covered areas which are partially in VOC control Region 1 
and partially in VOC control Region 2 are included in VOC control 
Region 1, except in the case of the Philadelphia-Wilmington-Trenton 
CMSA which shall be included in VOC control Region 2 (see 40 CFR 
80.71(c)). Since the St. Louis, Illinois-Missouri ozone nonattainment 
area is partially in VOC control Region 2 and partially in VOC control 
Region 1, the Illinois portion of the St. Louis, Illinois-Missouri 
nonattainment area opting into the program under this action shall be 
included in VOC control Region 1. This means that RFG in the Illinois 
portion of the St. Louis, Illinois-Missouri ozone nonattainment area 
must comply with the emission standards for VOC control for Region 1 
which are slightly more stringent than those for Region 2 (see 40 CFR 
80.41).
    Based on our evaluation of the appropriate lead time and start 
date(s) and pursuant to the Governor's letter and the provisions of 
section 211(k)(6), EPA is today adopting regulations that apply the 
prohibitions of subsection 211(k)(5) to the Illinois portion of the St. 
Louis, Illinois-Missouri ozone nonattainment area for all persons other 
than retailers and wholesale purchaser-consumers as of June 1, 2007. 
This date applies to the refinery level and all other points in the 
distribution system other than the retail level. For retailers and 
wholesale purchaser-consumers, EPA is adopting regulations that apply 
the prohibitions of subsection 211(k)(5) to the Illinois portion of the 
St. Louis, Illinois-Missouri ozone nonattainment area on July 1, 2007. 
As of the implementation date for retailers and wholesale purchaser-
consumers, this area will be treated as a covered area for all purposes 
of the Federal RFG program.
    The application of the prohibition of section 211(k)(5) to the 
Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area could take effect no later than July 10, 2007, under 
section 211(k)(6)(A), which stipulates that the effective program date 
must be no ``later than January 1, 1995 or 1 year after [the 
Governor's] application is received, whichever is later.'' The Governor 
of Illinois's request was dated July 10, 2006.
    EPA believes the implementation dates adopted today achieve a 
reasonable balance between requiring the earliest possible start dates 
to achieve air quality benefits for the Illinois portion of the St. 
Louis, Illinois-Missouri ozone nonattainment area and providing 
adequate lead time for industry to prepare for program implementation. 
These dates will provide environmental benefits by allowing the 
Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area to achieve VOC reduction benefits for most of the 
2007 VOC control season. As in other fuel rules, EPA believes it is 
appropriate to apply new requirements to refiners and distributors 
thirty days prior to the date that they are applicable to retailers and 
wholesale purchasers-consumers. This allows the retailers and wholesale 
purchasers-consumers time to empty their tanks of the older product 
they may have purchased immediately before the implementation date for 
refiners and distributors.
    EPA has concluded, based on its analysis of available information, 
that the refining and distribution industry's capacity to supply 
Federal RFG to the Illinois portion of the St. Louis, Illinois-Missouri 
ozone nonattainment area this summer exceeds the estimated demand. EPA 
has also concluded that the implementation dates adopted today provide 
adequate lead time to industry to set up storage and sales agreements 
to ensure supply of RFG to the East St. Louis ozone nonattainment area.

III. Response to Comments

    Several parties including the State of Illinois, the State of 
Missouri, BP, and the Illinois Petroleum Council submitted comments 
supporting the proposed effective dates. Four parties, an association 
representing the interests of Independent gasoline marketers, and three 
retail marketing companies, submitted adverse comments on the proposed 
rulemaking. The adverse comments also addressed issues that were 
outside the scope of the proposal (e.g., whether or not RFG should even 
be implemented). EPA is responding to relevant portions of the adverse 
comments in this section.
    First, the commenters expressed concern that gasoline shortages in 
the St. Louis area could result from EPA's granting of the opt-in 
request, due to the need to supply additional reformulated gasoline to 
the Illinois portion of the St. Louis, Illinois-Missouri nonattainment 
area (the Missouri portion already uses RFG). The commenters indicated 
that difficulties already exist in obtaining RFG for the Missouri 
portion of the St. Louis ozone nonattainment area, and that these 
difficulties would get worse with additional demand for RFG if EPA 
finalized its proposed opt-in for the Illinois portion of the St. Louis 
nonattainment area. Some of the commenters surmised that supply in the 
area benefits from two supply options: supplies of RFG being available 
on the Missouri side and low RVP fuel being available on the Illinois 
side, both of which can be supplied to East St. Louis.
    Section 211(k)(6)(A) provides the Administrator broad discretion to 
establish an appropriate effective date for opt-in areas. The effective 
date shall be no later than one year after the governor's request to 
opt in is received, which in this case would be July 10, 2007, unless 
EPA determines that there is insufficient domestic capacity. Factors 
EPA generally considers in setting effective dates include, but are not 
limited to, supply logistics, the number of current and potential 
suppliers for that market, whether such suppliers have experience 
producing RFG or the capability to produce RFG, intent of suppliers to 
withdraw from the market, availability of adequate gasoline volumes, 
and the amount of lead time needed by suppliers and the distribution 
industry to set up storage and sales agreements to ensure supply. By 
evaluating these factors, EPA can make a determination as to whether 
industry's capacity to supply RFG for an

[[Page 20240]]

opt-in area meets or exceeds the demand.
    Under section 211(k)(6)(B) the Administrator may determine, after 
consultation with the Secretary of Energy, that there is ``insufficient 
domestic capacity'' to produce RFG. Despite the comments received by 
marketers and retailers, described above, EPA is not making such a 
determination in this case. EPA has consulted with the Department of 
Energy (DOE) and with refiners supplying gasoline to the area of 
concern, and has concluded that there is adequate domestic capability 
to produce RFG to meet the current demand nationwide as well as the 
addition of the Illinois portion of the St. Louis, Illinois-Missouri 
nonattainment area in the summer of 2007.
    EPA notes that no comments were received from refiners or bulk 
terminal operators concerned about storage capacity or supply. We note 
in the docket that EPA has spoken with the major suppliers to the area 
and none have expressed supply concerns. To the contrary, the Illinois 
Petroleum Council submitted written comment in support of the proposal. 
The elimination of the need to supply an additional grade of fuel (i.e. 
7.2 RVP fuel now required in East St. Louis) will not adversely impact 
supply as it is our understanding from consultation with these refiners 
that the capacity which is currently used to produce the 7.2 psi blend 
will be converted to produce additional RFG supplies for the Region.
    The commenters also expressed concern that the price differential 
between reformulated gasoline sold in the Illinois side of the St. 
Louis covered area and that sold on the Missouri side would impact 
marketers. They also point to a vehicle owner's ability to refuel in 
either conventional gas areas or the Missouri RFG area where they may 
expect a lower price. EPA notes that, in this action, it is simply 
setting an effective date for the Illinois portion of the St. Louis, 
Illinois-Missouri ozone nonattainment area, and does not have the 
discretion under Section 211(k)(6) to deny the governor's request to 
opt in. Therefore, even if a price differential would result in some 
drivers choosing to refuel in the Missouri portion of the nonattainment 
area, or a non-covered area, versus the Illinois side, that result 
would not provide a basis for EPA's denial of the governor's request. 
Moreover, EPA is setting the effective date for the opt in close to one 
year from receipt of the governor's request. Additional significant 
delay is not permitted under the Clean Air Act absent a finding of 
inadequate supply. As discussed above, EPA has determined that there 
will not be any RFG supply issues for the opt in area covered by 
today's rule. In addition, postponing the effective date would likely 
not affect, in the long-term, any price differential that may exist, 
and would result in the loss of important and needed emissions 
reductions for the summer of 2007.

IV. Environmental Impact

    The Federal RFG program typically results in reductions in ozone-
forming emissions and air toxics. Reductions in ozone precursors are 
environmentally significant because they lead to reductions in ozone 
formation, with the associated improvements in human health and 
welfare. Exposure to ground-level ozone (or smog) can cause respiratory 
problems, chest pain, and coughing and may worsen bronchitis, 
emphysema, and asthma. Animal studies suggest that long-term exposure 
(months to years) to ozone can damage lung tissue and may lead to 
chronic respiratory illness. Reductions in emissions of toxic air 
pollutants are environmentally important because they carry significant 
benefits for human health and welfare primarily by reducing the number 
of cancer cases each year.
    Illinois EPA analyzed the emissions benefits which could be 
achieved by switching from 7.2 RVP fuel to RFG. Using the U.S. EPA's 
MOBILE6a model, Illinois projected that year 2010 motor vehicle VOC 
emissions could be reduced by 5.4 percent and carbon monoxide by 2.2 
percent. The use of RFG in the Illinois portion of the St. Louis, 
Illinois-Missouri nonattainment area would also decrease benzene 
emissions by 75 tons per year, which equates to a 44 percent reduction 
from motor vehicles. On a total toxic emissions basis, the use of RFG 
would reduce emissions of the five primary motor vehicle related air 
toxics by 63 tons per year in 2010, a total percentage reduction of 
23.5 percent.

V. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order (EO)12866 (58 FR 51735, October 4, 1993) and 
is therefore not subject to review under the EO. EPA notes that the 
economic impacts of the RFG program were assessed in EPA's Regulatory 
Impact Analysis for the 1994 RFG rules. See 59 FR 7810-7811 (February 
16, 1994). In that analysis the production cost of RFG was estimated to 
be 4 to 8 cents more per gallon than conventional gasoline. Since 
conventional gas regulations have evolved since that time to be more 
like RFG and since the State has a low RVP requirement that also more 
closely resembles RFG, EPA expects the costs of RFG in the Illinois 
portion of the St. Louis, Illinois-Missouri ozone nonattainment area to 
be at the low end or lower than this range. Nonetheless, using the 4 to 
8 cent per gallon estimate, the cost of the program to the area would 
be significantly lower than the trigger for a significant regulatory 
action.

B. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes 
Federal executive policy on environmental justice. Its main provision 
directs Federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    EPA has determined that this final rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it increases the 
level of environmental protection for all affected populations without 
having any disproportionately high and adverse human health or 
environmental effects on any population, including any minority or low-
income population.

C. Paperwork Reduction Act

    This action does not impose any new information collection burden. 
Refiners are currently subject to the information collection 
requirements for Federal reformulated gasoline and conventional 
gasoline. Today's rule adds an additional ozone nonattainment area as a 
Federal RFG covered area; the rule does not change the information 
collection requirements already associated with Federal RFG. However, 
the Office of Management and Budget (OMB) has previously approved the 
information collection requirements contained in the existing 
regulations (see 59 FR 7716, February 16, 1994), under the provisions 
of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and has assigned 
OMB control number

[[Page 20241]]

number 2060-0277 (EPA ICR No. 1951.21). A copy of the OMB approved 
Information Collection Request (ICR) may be obtained from Susan Auby, 
Collection Strategies Division; U.S. Environmental Protection Agency 
(2822T); 1200 Pennsylvania Ave., NW., Washington, DC 20460 or by 
calling (202) 566-1672.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small 
entities, small entity is defined as: (1) A small business that has not 
more than 1,500 employees (as defined by the Small Business 
Administration's (SBA) regulations at 13 CFR 121.201); (2) a small 
governmental jurisdiction that is a government of a city, county, town, 
school district or special district with a population of less than 
50,000; and (3) a small organization that is any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.
    In promulgating the RFG and the related anti-dumping regulations 
for conventional gasoline, the Agency analyzed the impact of the 
regulations on small businesses. The Agency concluded that the 
regulations may possibly have some economic effect on a substantial 
number of small refiners, but that the regulations may not 
significantly affect other small entities, such as gasoline blenders, 
terminal operators, service stations and ethanol blenders. See 59 FR 
7810-7811 (February 16, 1994). As stated in the preamble to the final 
RFG/anti-dumping rule, exempting small refiners from the RFG 
regulations would result in the failure of meeting CAA standards. 59 FR 
7810. However, since most small refiners are located in the mountain 
states or in California, which has its own RFG program, the vast 
majority of small refiners are unaffected by the Federal RFG 
requirements (although all refiners of conventional gasoline are 
subject to the anti-dumping requirements). Moreover, all businesses, 
large and small, maintain the option to produce conventional gasoline 
to be sold in areas not obligated by the Act to receive RFG or those 
areas which have not chosen to opt into the RFG program. A complete 
analysis of the effect of the RFG/anti-dumping regulations on small 
businesses is contained in the Regulatory Flexibility Analysis which 
was prepared for the RFG and anti-dumping rulemaking, and can be found 
in the docket for that rulemaking. The docket number is: EPA Air Docket 
A-92-12.
    Today's action will affect only those refiners, importers or 
blenders of gasoline that choose to produce or import RFG for sale in 
the Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area, and gasoline distributors and retail stations in 
those areas. As discussed above, EPA determined that, because of their 
location, the vast majority of small refiners would be unaffected by 
the RFG requirements. For the same reason, most small refiners will be 
unaffected by today's action. Other small entities, such as gasoline 
distributors and retail stations located in the area that will become a 
covered area as a result of today's action, will be subject to the same 
requirements as those small entities which are located in current RFG 
covered areas. The Agency did not find the RFG regulations to 
significantly affect these entities. Based on this, EPA certifies that 
this final rule will not have a significant adverse impact on a 
substantial number of small entities.

E. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows EPA to adopt an alternative other than the least 
costly, most cost-effective or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why that 
alternative was not adopted. Before EPA establishes any regulatory 
requirements that may significantly or uniquely affect small 
governments, including tribal governments, it must have developed under 
section 203 of the UMRA a small government agency plan. The plan must 
provide for notifying potentially affected small governments, enabling 
officials of affected small governments to have meaningful and timely 
input in the development of EPA regulatory proposals with significant 
Federal intergovernmental mandates, and informing, educating, and 
advising small governments on compliance with the regulatory 
requirements.
    EPA has determined that this rule does not contain a Federal 
mandate that may result in expenditures of $100 million or more for 
State, local, and tribal governments, in the aggregate, or the private 
sector in any one year. Thus, today's rule is not subject to the 
requirements of sections 202 and 205 of the UMRA. Although EPA does not 
believe that UMRA imposes requirements for this rulemaking, EPA notes 
that the environmental and economic impacts of the RFG program were 
assessed in EPA's Regulatory Impact Analysis for the 1994 RFG rules.
    EPA has also determined that this rule contains no regulatory 
requirements that might significantly or uniquely affect small 
governments. The rule would only impose requirements on certain 
refiners and other entities in the gasoline distribution system, and 
not small governments. The requirements of the rule will be enforced by 
the Federal

[[Page 20242]]

government at the national level. Thus, a small government agency plan 
did not need to be developed under section 203 of the Unfunded Mandates 
Reform Act.

F. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This rule does not have federalism implications. It will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132. The rule would only impose 
requirements on certain refiners and other entities in the gasoline 
distribution system, and not on States. The requirements of the rule 
will be enforced by the Federal government at the national level. Thus, 
Executive Order 13132 does not apply to this rule.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This direct final rule does 
not have tribal implications, as specified in Executive Order 13175. 
Today's direct final rule will affect only those refiners, importers or 
blenders of gasoline that choose to produce or import RFG for sale in 
the East St. Louis ozone nonattainment area, and gasoline distributors 
and retail stations in those areas. Thus, Executive Order 13175 does 
not apply to this rule.

H. Executive Order 13045: Protection of Children From Environmental 
Health & Safety Risks

    Executive Order 13045 ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that: (1) Is determined to be ``economically significant'' 
as defined under EO 12866, and (2) concerns an environmental health or 
safety risk that EPA has reason to believe may have a disproportionate 
effect on children. If the regulatory action meets both criteria, the 
Agency must evaluate the environmental health or safety effects of the 
planned rule on children, and explain why the planned regulation is 
preferable to other potentially effective and reasonably feasible 
alternatives considered by the Agency.
    This final rule is not subject to the EO because it is not 
economically significant as defined in EO 12866, and because the Agency 
does not have reason to believe the environmental health or safety 
risks addressed by this action present a disproportionate risk to 
children.

I. Executive Order 13211: Actions That Significantly Effect Energy 
Supply

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355 (May 22, 2001)) because it is not a 
significant regulatory action under Executive Order 12866.

J. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note), 
directs EPA to use voluntary consensus standards in our regulatory 
activities unless it would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) developed or adopted by voluntary 
consensus standards bodies. The NTTAA directs EPA to provide Congress, 
through OMB, explanations when the Agency decides not to use available 
and applicable voluntary consensus standards. This final rulemaking 
does not involve technical standards. Therefore, EPA is not considering 
the use of any voluntary consensus standards.

K. Statutory Authority

    The Statutory authority for the action finalized today is granted 
to EPA by sections 211(c) and (k) and 301 of the Clean Air Act, as 
amended; 42 U.S.C. 7545(c) and (k) and 7601.

L. Congressional Review Act

    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. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
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). This rule will be effective April 20, 2007.

List of Subjects in 40 CFR Part 80

    Environmental protection, Air pollution control, Fuel additives, 
Gasoline, Motor vehicle pollution.

    Dated: April 18, 2007.
Stephen L. Johnson,
Administrator.

0
40 CFR part 80 is amended as follows:

PART 80--[AMENDED]

0
1. The authority citation for part 80 continues to read as follows:

    Authority: 42 U.S.C. 7414, 7545, 7542, and 7601(a).


0
2. Section 80.70 is amended by adding paragraph (k)(2) to read as 
follows:


Sec.  80.70  Covered areas.

* * * * *
    (k) * * *
    (2) The Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area is a covered area beginning on July 1, 2007. The 
prohibitions of section 211(k)(5) of the Clean Air Act apply to all 
persons other than retailers and wholesale purchaser-consumers in the 
Illinois portion of the St. Louis, Illinois-Missouri ozone 
nonattainment area beginning on June 1, 2007. The prohibitions of 
section 211(k)(5) of the Clean Air Act apply to retailers and wholesale 
purchaser-consumers in the Illinois portion of the St. Louis, Illinois-
Missouri ozone nonattainment area beginning July 1, 2007.
* * * * *
[FR Doc. E7-7777 Filed 4-23-07; 8:45 am]
BILLING CODE 6560-50-P


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