ENERGY AND ENVIRONMENT CABINET**OF~CEOFTHESECRETARY** 'steven L. Beshear Governor

Ms
. Heather McTeer Toney Regional Administrator U.S. EPA, Region 4 Sam Nunn Atlanta Federal Center 61 Forsyth Street, SW Atlanta, Georgia 30303-8960 Dear Ms
. Toney: 500 Mero Street l21h Floor, Capital Plaza Tower

Frankfort, Kentucky 40601 Phone: (502) 564-3350

Fax: (502) 564-7484

http://eec.ky.gov

January 17, 2014 Leonard K. Peters Secretary

Enclosed for your consideration is a revision to the Kentucky State Implementation Plan (SIP) granting a variance for Stage II vapor recovery controls on gasoline fuel dispensers at the Hertz Corporation facility being constructed at the Cincinnati/Northern Kentucky International Airport in Hebron, Kentucky (Boone County). A public hearing to receive comments on this revision was scheduled for December 20, 2013, at 10:00 a.m. in the Conference Room ofDivision for Air Quality, 200 Fair Oaks, 1s tFloor, Frankfort, Kentucky. No request for a public hearing was received, and the hearing was cancelled
. No comments were received during the 30-day comment period. One paper copy ofthe final revision and an electronic copy on compact disc that is identical to the paper copy are enclosed. Ifyou have any questions or comments, please contact Mr. John Gowins with the Division for Air Quality at (502) 564-3999
.

LKP/ce Enclosures

KentuckyUnbridledSpirit.com Sincerely yours,

# ¥~ Secretary

An Equal Opportunity Employer M/F/D

# REQUEST TO REVISE THE STATE IMPLEMENTATION PLAN TO ALLOWA VARIANCE FOR STAGE II VAPOR RECOVERY AT THE HERTZ CORPORATION FUELING FACILITY 

# BOONE COUNTY, KENTUCKY

PREPARED BYTHE KENTUCKY DIVISION FOR AIR Q UALITY Submittedby 

### Kentucky Energy and Environment Cabinet January 2014. 

### '

TABLE OF CONTENTS
INTRODUCTION
...........................................................................................................................1 AREA BACKGROUND
.................................................................................................................1 REGULATORY BACKGROUND
.................................................................................................3 SECTION 110(1) ANALYSIS
.........................................................................................................5 PUBLIC PARTICIPATION
............................................................................................................? APPENDICES
................................................................. ...... ................................................ ..........8INTRODUCTION 

### The Commonwealth of Kentucky is requesting the United States Environmental Protection Agency (U.S. EPA) to grant a variance from the Kentucky State Implementation Plan (SIP) for the Stage II vapor recovery control requirements on gasoline fuel dispensers at the Hertz Corporation facility being constructed at the Cincinnati/Northern Kentucky International Airport, located in Hebron, Kentucky (Boone County). 401 KAR 59:174 requires Stage II vapor recovery systems for all gasoline dispensing facilities located in a county that as ofthe effective date of the regulation was designated severe, serious, or moderate nonattainment for ozone pursuant to 401 KAR 51:010. At the time ofthe effective date ofthe regulation (January, 12, 1998), 401 KAR 51 :010 listed Boone County as a moderate ozone nonattainment area.

AREA BACKGROUND 

### The Clean Air Act (CAA) establishes a process for air quality management through the application ofNational Ambient Air Quality Standards (NAAQS). After promulgation ofa new
or revised NAAQS area designations are required. On July 18, 1997, U.S. EPA promulgated a revised ozone standard of 0.08 parts per million (ppm), measured over an 8-hour period. The 1997 8-hour ozone standard is more protective of public health and more stringent than the previous 1-hour standard. The NAAQS rule was challenged by numerous litigants, and in May 1999, the U.S. Court of Appeals for the D.C. Circuit issued a decision remanding, but not vacating, the 1997 8-hour ozone standard. Among other things, the Court recognized that U.S. EPA is required to designate areas for any new or revised NAAQS in accordance with the CAA and addressed a number ofother issues, which are not related to designations.

1

### In February 2001, the Supreme Court upheld U.S. EPA authority to set the NAAQS and remanded the case back to the D.C. Circuit for disposition ofissues the Court did not address in its initial decision. The Supreme Court also remanded the 8-hour implementation strategy to U.S. EPA. In March 2002, the D.C. Circuit rejected all remaining challenges to the 1997 8-hour
ozone standard.

The process for designations following promulgation of a NAAQS is contained in Section 107(d)(l) ofthe CAA. The Transportation Equity Act for the 21st Century (TEA-21) extended by 1 year the time for U.S. EPA to designate areas for the 1997 8-hour ozone NAAQS. Thus, U.S. EPA was required to designate areas for the revised ozone standard by July 2000. However, U.S. EPA's appropriations bill in 2000 restricted the agency's authority to spend money or designate areas until June 2001 or the date of the Supreme Court ruling on the standard, whichever came first. As noted earlier, the Supreme Court decision was issued in February 2001.

In 2003, several environmental groups filed suit in district court claiming U.S. EPA had not met its statutory obligation to designate areas for the 1997 8-hour ozone NAAQS. U.S. EPA entered into a consent decree, which required U.S. EPA to issue the designations by April 15, 2004. Pursuant to Section 107(d)(l) ofthe CAA, a Federal Register 

### notice (69 FR 23858) published on April 30, 2004, designated the Cincinnati-Hamilton Interstate area (comprised of Boone, Campbell, and Kenton Counties in Kentucky) to be nonattainment for the 1997 8-hour ozone NAAQS, effective June 15, 2004. However, Kentucky submitted a. request to have the area redesignated as attainment on January 29, 2010, and demonstrated that the area had attained the NAAQS, included a maintenance plan for the area, and an emissions inventory. On August 5,

22010, U.S. EPA published a 

### Federal Register final rule (75 FR 47218) approving Kentucky's request to redesignate the Kentucky portion ofthe Cincinnati-Hamilton area to attainment for the 1997 8-hour ozone standard
.

On March 12, 2008, U.S. EPA set the revised 8-hour standard at 0.075 ppm. Soon after, states, environmental groups and industry groups filed petitions with the D.C. Circuit Court ofAppeals for review of the 2008 ozone standards because the standards were not as protective as recommended by U
.S. EPA's panel ofscience advisors. In March 2009, the court granted U.S
. EPA's request to stay the litigation. In accordance with CAA Section 107(d)(1), Kentucky provided its initial designation recommendations for the 2008 ozone standards in a submittal dated September 8, 2009.

As required by the CAA, on April 30, 2012, U
.S. EPA issued final area designations for the 2008 8-hour ozone standard. Portions of Boone, Campbell, and Kenton Counties were designated marginal nonattainment.


### REGULATORY BACKGROUND Kentucky's regulation on Stage II controls at gasoline dispensing facilities, 401 KAR 59:174, became effective on January 12, 1998. The implementation of Stage II controls was part of an emissions control strategy to reduce, by 15%, volatile organic compound (VOC) emissions in this area, which at the time was designated as moderate ozone nonattainment.

Section 202(a)(6) ofthe CAA details that the U.S. EPA can revise or waive the Section 182(b)(3) Stage II vapor recovery requirement for applicable ozone nonattainment areas after the

3

### Administrator determines widespread use of Onboard Vapor Recovery (ORVR) has been demonstrated throughout the motor vehicle fleet. Vehicles that are equipped with ORVR systems do not have vapors within the gasoline tanks that can be captured during refueling. Since there are no vapors to be captured in ORVR-equipped vehicles, a Stage II vapor recovery system is unnecessary. Although the Stage II vapor recovery system would function properly, there would simply be no vapors to capture from ORVR-equipped vehicles. U.S. EPA has determined that the CAA allows the Agency to use an area-specific rulemaking approving a SIP revision to issue the Section 202(a)(6) waiver for a relevant fleet in a nonattainment area, where
a State meets the recommended criteria.

U.S. EPA has considered demonstration ofwidespread use ofORVR in motor vehicle fleets to include:
1) Determining the percentage ofORVR-equipped vehicles in service, and 2) Determining when VOC emissions resulting from the application of ORVR controls alone equal the VOC emissions when both Stage II vapor recovery systems and ORVR controls are used.

ORVR was first required for all passenger cars starting with model year 2000. Since 2006, all light-duty trucks, sports utility vehicles, and medium-duty vehicles are required to be equipped with ORVR.
According to 

# aDecember 12, 2006, policy memorandum entitled, "Removal ofa Stage II Vapor Recovery in Situations Where Widespread Use of On board Refueling Vapor Recovery is

4

### Demonstrated," U.S. EPA has determined that if at least 95% of the vehicles in a fleet have ORVR, then widespread use will likely have been demonstrated (See Appendix A). According to this same memo, ifa SIP revision demonstrates that at least 95% ofthe vehicles in a vehicle rental fleet refueling at a rental car facility are equipped with ORVR and that this level ofORVR
use would not decrease, then widespread use of ORVR could be demonstrated for the motor vehicle fleet refueling at that facility. It 

### is recommended that states submit a SIP revision to discontinue Stage II vapor recovery requirements for rental car facilities. Most large rental car companies rent current model year vehicles that are equipped with ORVR. However, this SIP revision only applies to the Hertz Corporation facility being constructed at the Cincinnati/Northern Kentucky International Airport, located in Hebron, Kentucky (Boone County). Any SIP revision showing a demonstration of widespread use of ORVR would be subject to CAA Section 110(1) and other applicable requirements, and State and local agencies should consider any potential transportation conformity impacts if Stage II is currently included in a SIP's on-road motor vehicle emissions budget.
According to a Federal Register 

### final rule published on May 16, 2012, "Stage II and ORVR emission control systems are redundant, and the EPA has determined that emission reductions from ORVR are essentially equal to and will soon surpass the emission reductions achieved by Stage II alone." (77 FR 28772) Where ORVR has been demonstrated to be in "widespread use," Stage II is unnecessary and even incompatible.

SECTION 110(1) ANALYSIS 

### U.S. EPA's approval ofa SIP revision must comply with the provisions ofSection 110(1) ofthe CAA, which states that: "Each revision to an implementation plan submitted by a State under

5

### this Chapter shall be adopted by such state after reasonable notice and public hearing. The administrator shall not approve a revision of a plan if the revision would interfere with any applicable requirement concerning attainment and reasonable further progress (as defined in Section 7501 ofthis title), or any other applicable requirement ofthis chapter."

The Hertz Corporation has requested an exemption ofthe Stage II vapor recovery requirement at their facility being constructed at the Cincinnati/Northern Kentucky International Airport, located in Hebron, Kentucky (Boone County). The purpose for this request is the widespread
use ofORVR systems on the company's vehicle fleet at the facility.

ORVR was first required for all passenger cars starting with model year 2000. Additionally, since 2006, all light-duty trucks are required to be equipped with ORVR. Because the Hertz Corporation maintains a new fleet ofcars which is, in its entirety, newer than model year 2006, the facilities have a widespread use rate of 100%, which is above the rate required for Stage II vapor recovery systems. This rate will never drop below 95% because the turnover rate ofthe rental vehicles is typically one to two years.

The provision that allows for the exemption ofthe Stage II gasoline vapor recovery requirement for the Hertz Corporation facilities at the Cincinnati/Northern Kentucky International Airport is that the SIP revision does not interfere with attainment, maintenance, or reasonable further progress ofthe NAAQS. This SIP revision will not interfere with attainment, maintenance, or reasonable further progress ofthe NAAQS because, according to the Hertz Corporation, 100% of the vehicles at the rental car facility will be equipped ORVR. As mentioned previously, in the May 16, 2012, Federal Register (77 FR 28772), U.S. EPA clarified that Stage II and ORVR

6emission control systems are redundant and thus no increases in emissions are expected from this variance. Because there is a widespread use rate ofat least 95% , and because there is a turnover rate ofthe rental vehicles every one to two years, no increases in vehicle emissions is anticipated.
Kentucky requests a vanance for the Hertz Corporation facility at the Cincinnati/Northern Kentucky Cincinnati International Airport in Boone County, from the Stage II control regulation, 401 KAR 59:174. All of the vehicles to be refueled at this rental car facility are ORVR equipped. This request for variance will not interfere with CAA Section 110(1) requirements or
any other requirements ofthe CAA, as it will not increase emissions in VOC or any NAAQS

I pollutants
. Itis therefore approvable pursuant to CAA Section 110(1).



### PUBLIC PARTICIPATION Kentucky will conduct a public hearing, ifrequested, to receive comments on this proposed SIP revision to allow a variance for Stage II vapor recovery at this rental car facility on December 20, 2013 , at 10:00 a.m. (local time) in Conference Room 201B at the Kentucky Division for Air Quality Central Office in Frankfort, Kentucky
. This conference room is located at 200 Fair Oaks Lane, First Floor. A copy ofthe public hearing notice is included in Appendix B.

7

# APPENDICES

APPENDIX A- U.S. EPA MEMORANDUM FROM STEPHEN D. PAGE AND MARGO TSIRIGOTIS 0GE, DECEMBER 

### 12, 2006, "SUBJECT: REMOVAL OF STAGE 

### II VAPOR RECOVERY IN SITUATIONS WHERE WIDESPREAD USE OF 0NBOARD REFUELING VAPORRECOVERY IS DEMONSTRATED" APPENDIX 

### B- NOTICE OF PUBLIC HEARING APPENDIX C- No COMMENT LETTERFROM

### R. SCOTTDAVIS

# APPENDIXA

DECEMBER 

# 12, 2006, EPAMEMOUNITEO STATES ENV1RONMENTAL PROTECTlON AGENCY RESEARCH TRIANGLE PARK, NC 27711 

## DEC 12 2006

MRMQR.A.

_ NDUM OFFICE OF AlA QIJAUTY PlAtiNING

AND STANDARDS SUBJECT: Removal ofStage II VaporRecovery in Situations Where WidespreadUse of OnboardRefueling Vapor Recovery is Demonstrated FROM: Stephen D. 

### Page, Director-

# L&_ Office ofAir 

### Quality

# Pl~~t Margo Tsirigotis 

### Oge, Director 

# (tl Ot

# 'j') 

# 0 Office of

### Transportation and Air

## Qua{/~ TO: 

### Regional Air Division 

### Directors
The purpose oftbis memorandum is to provide guidance to States

### concerning the removal 

### ofStage II 

### gasoline vapor recovery systems.

### where States demonstrate

### to EPA that widespread use ofonboard refueling vaporrecovery (ORVR) has occurred in specific portions 

### ofthemotorvehicle 

### fleet
. The specific fleets addressed here include: 

### 1. initial fueling 

### ofnew 

### vehicles at aulomobile assembly plants 

### 2
. refueling ofrental cars at rental car facilities 

### 3
. refueling of

### flexible fuel vehicles 

### atE85 dispensing 

### pumps Background Stage II vapor recovery systems are required to be used at gasoline dispensing 

### facilities located in**serious~ seve~**  and

### extreme non-attainment areas for ozoneunder section 182(b)(3) oftheClean AirAct (CAA)
. States have included these control measures in their 

### federally-approved state implementationplans (SlPs) in the 

### fonn of

### generally applicable 

### regulato
. ry requirements 

### governing all gasoline dispensingfacilities that exceed the relevant gasoline dispensing throughput 

### criteria. However, section 202(a)(6) ofthe CAA allows EPA 

### to revise or waive the 

### section 182{b)(3) Stage II requirement for these 

### ozone 

### non--attainment areas after the Agency determines that ORVR is in widespread use throughout themotor vehicle fleet. 

### CAA section 202(a)(6) does not specify which motorvehicle fleet 

### must be 

### the subject ofawidespreaduse detennination before EPA mayrevise or waive the section 182(b)(.3) Stage II requirement. Nor does the CAA identifywhat level ofORVR use in the motor vehicle fleet must be reached before itis**'~idespread."** EPA expects the possibility of

lntemetAdd111u (VAL) • htlp:/lwww.epa.gov**F!~ciRIR~Oiable** • Pilllted IIIII! Vegotallll 01Bawd !ribon**Re~**Pllf*" (Wrumutll**~~%** POiri1i:OII.SWier}different rates ofthe implementation ofORVR across different geographic regions and among different types ofmotorvehicle fleets within any region. Given this, EPA does not believethat CAA section 202(a)(6) mustberead narrowly to allow a widespread use determination and waiver ofthe Stage II requirement for a given area orarea's fleet only if ORVR use has become widespread throughout the entire United States, or only ifORVRuse has reached a definite level in each area. Rather, EPA believes that section 202(a)(6) allows the Agency to apply the widespread use criterion to either the entire motor vehicle fleet in a State ornon-attainment area, orto special segments oftheoverall fleet for which ORVR use is shown to be sufficiently high. and to base widespread use detenninations on differing levels ofORVRuse, as appropriate. Moreover, a single national rulemaking is not needed to grant such a waiver for a specific area. Instead, EPAbelieves that the Act allows the Agency to use an area-specific rulemaking approving a SIP revision to issue the section 202(a)(6) waiver for a relevant fleet in a non-attainment area, where a Statemeets the recommended criteria discussed below
. Variousmetricshavebeen studied for demonstrating widespread use ofORVR in motorvehicle fleets. Onemetric focuses on the percentage ofvehicles in service that are ORVR-equipped. Based on ourpreliminary analysis, this metric seems to track fairly closely with the percentage ofvehicle miles traveled (VMT) from ORVR-equipped vehicles, and withthe percentage ofgasoline sold which is dispensed to ORVR-equipped vehicles. In fact, since newer vehicles tend to be driven more miles 

### than oldermodels, VMTtraveled by ORVR-equipped vehicles and gasoline dispensed to ORVR-equipped vehicles may exceed 95 percent in a 95 percent ORVR-equipped fleet Another metric that EPA considered is when VOC emissions resulting from the application ofORVRcontrols alone equal the VOC emissions when both Stage II vapor recovery systems and ORVR controls are used, 

### after accounting for incompatibility excess emissions. The incompatibility excess emissions factor relates to losses in control efficiency when certain types ofStage lland ORVR are used together. Studies conducted in three northeastern states indicate that when the percentages ofmotor vehicles in servicewith ORVR, vehicle miles traveled by ORVR-equipped vehicles, or gasoline dispensed to ORVR

equipped vehicles are above 95 percent, then the widespread use metric based oncomparable VOC emissions will likelyhavebeen reached. Forthis reason, EPAbelieves that if95 percent ofthe vehicles in a fleet have ORVR, then widespread use will likely have been demonstrated
. 1
. Initial Fueling atAutomobile Assembly Plants Based on our preliminary analysis. EPA expects that ifa State's submission ofa SIP revision shows that 95 percent ofthe new vehicles fueled at an automobile assemblyplant are equipped with ORVR. and thatthis level ofORVRuse would not decrease, the Agency can determine thatwidespread use ofORVRhas been achieved for the fleet ofmotor vehicles that are fueled at that facility
. Sincemodel year2000, all passenger cars have been required to have ORVR
. Also since 2006, all light duty trucks, SUVs and medium duty vehicles are required to beequipped

2with ORVR. There maybe a few situations, such as the chassis for motorized mobile hom<;s, which still do not have ORVR. However, the number ofthese would be small. It is apparent that at most automobile assembly plants greater than 95 percent ofthe vehicles manufactured would have ORVR. Manyassemblyplants manufacture 100percent ORVR equipped vehicles. Only such new vehicles are expected to be fueled at the automobile assembly plants. States desiringto remove the Stage II requirement for these facilities would need to submit a SIP revision that EPAwould evaluate through notice and commentrulemaking. The SIP would need to demonstrate thatthe widespread usebenchmarkhas been achieved and provide assurance that any facility wishing to remove Stage II equipmentmaintains its eligibility for its motorvehicle fleet. Any EPA SIP approval would also be subject to the CAA section II0(1) requirement that the revision notinterfere with any applicable requirement concerning attainment and reasonable further progress, or any other requirement ofthe CAA. 2. Refueling ofRental Cars at Rental CarFacilities Similarly, EPA expects that ifa SIP revision submission demonstrates that 95 percent ofthe vehicles in an automobile rental fleet refueling at a rental car facility are equipped with ORVR and that this level ofORVRuse would not decrease, then widespread use ofORVR could be found for the motorvehicle fleet refueling atthat facility. Most largerental car companies rent current model vehiclesthat would all have ORVR
. There maybe truck rental companies whichhave older vehicles which do not have ORVR and that would not be able to demonstrate widespread use ofORVRfor their fleets. As discussed above, any SIP revision would be subject to CAA section 110(1) and other applicable requirements, and State and local agencies sbouJd consider anypotential transportation confonnity impacts

### ifStage II is currently included in a SIP's on-roadmotorvehicle emissions budget. 3. RefuelingFlexibleFuel Vehicles at E85 Dispensing Pumps E85 is a motor vehicle fuel that is a blend ofas little as 15 percent gasoline and up to 85 percent ethanol. (Inwintertime applications, theratio maybe 30percent gasoline and 70 percent ethanol.) Ethanol is ethyl alcohol, a type ofalcohol which can beproduced from renewableresources such as com. Based on the agency's survey ofexisting SIPSt EPA believes that most Stateshave defined ••gasoline" (forpurposes ofcontrolling emissions of VOC .from refueling activities} to include gasoline/alcohol blends that havethe same volatility as £85. EPA's guidancefor States in developing their Stage II SIPs in the early 1990s suggested that States usethe same definition of"gasoline" as the onefound inEPA's Standards ofPerformance for Bulk Gasoline Tenninals at 40 C.P.R. 60.501, which includes "anypetroleum distillate orpetroleum distillate/alcohol blend having a Reid vapor pressure of27.6 kilopascals (kPa) or greater which is used as a fuel forintemal combustion engines." EPArecommended using this definition to mostbroadly reach situations in which refueling ofmotorvehicles results in evaporative VOCemissions that contribute to ozone nonattainment concentrations, and to avoid a narrow interpretation ofwhat is "gasoline"that

3would a1low significantVOC emissions from motor vehicle refueling activities 

### in nonattainment areas to go uncontrolled. E85 can onlybe used in specially designed flexible fuel vehicles (FFVs}, which have mostly been manufactured since 1998. Since these are newervehicles, most ofthem are equipped with ORVR, and every FFV builttoday has ORVR. Thus, most vehicles refueling at £85 dispensing pumps are already having their evaporative emissions captured, as in the cases oflate model rental cars refueling at rental car facilities and newly manufactured cars being fueled for the first time at automobile assembly plants. EPA estimates that 59 percent ofFFVs in current use are equipped with ORVR. The percentage.ofFFVs with ORVR will continue to climb as older vehicles are takenout ofservice and new modelsjointhe fleet. Across different ozone non-attainment areas and between States, these percentages may vary. EPA believes that encouraging the use ofE85 as a motor vehicle fuel reduces emissions ofother airpollutants such as CO and benzene, a known human carcinogen, and reduces emissions ofgreenhouse gases. In addition, based on available information, the Agency is concerned that there is currently a lack ofcertified Stage II equipment for E85 (which mayrequire different materials ofconstruction than conventional Stage II equipment), and that the timing for when certified E85-compatible equipment will become widely available is uncertain. This may unnecessarilyhinderE85 distribution in areas that now require StageII. Unlike in the cases ofautomobile assemblyplants and rental carfacilities, EPA is not recommending a specific percentage ofthe FFV fleet that should have ORVR before widespread use could be determined
. This is becausemost E85 compatible vehicles are already·equipped with ORVR and this percentage is increasing overtime
. , whereas for automobile assembly plants and car rental facilities very high percentages ofORVRuse have in most cases already been reached and are not expected to further increase significantly. The general use ofORVRin FFVs, instead, is expected to significantlyincrease, as are the miles driven by and amount offuel dispensed to recent ORVR-equippedFFVs compared to those manufactured before 2000 without ORVR Moreover, webelieve that in determining whether widespread use ofORVR has been demonstrated, 

### it is reasonable under section 202(a)(6) to consider the VOC emissions impacts ofremoving Stage II, and that those impacts may inform thepercentage ofORVRequipped vehicles that would need to be achieved for a specific motor vehicle fleet orin a specific non-attainment area. EPA expects that the air quality impact ofallowing E85 refueling facilities to operate without Stage 11 controls would likely be minimal in most nonattainment areas. FFVs currently comprise about 2 percent ofthe total US fleet. Non-ORVR FFVs are less 1percent ofthe total U.S. vehicle fleet. EPA estimates that non-ORVRFFVs participate
. in only about 0
.5percent ofall refueling events. Furthermore, because ofthe relatively smallnumberofstations that offer E85 (around 1.000 out of 170,000 total refueling stations) EPAbelieves that veryfew ofthese non-ORVR refueling events actually occur atE85 pumps.

4Considering the factors discussed above, ifan area can demonstrate that any increase in emissions caused by operating E85 fueling facilities without Stage II controls is so small as to clearly not interfere with attainment ofthe ozone standard orreasonable further progress or any other applicable CAA requirement, then EPA expects it could find that ORVR is in widespread use for FFVs when refueling at E85 facilities in this area. These areas could then allow E85 facilities to operate without Stage II controls, aftermodifying their SIPs such that E85 is not included within the definition of"gasoline" for purposes of Stage 11 vapor recovery controls (or after taking other necessary SIP revision action). As discussed above, States would need to submit SIP revisions affecting this change to their current Stage II SIPs, which EPA would evaluatethrough notice and commentrulemaking, subject to the provisions ofCAAsection 1100). In addition, State and local agencies should consider ifthere are anytransportation conformity impacts related to removing Stage II, if emissions reductions from Stage 11 are included in a SIP's on-road motorvehicle emissions budget. Due to the expected rapid growth ofE85 installations, EPA will explore the development ofways to expeditethe SIP revision process for Stateswhich are dealing with the E85 issue. Genera] Exclusions from Widespread Use Detenninations States in the ozone transport region (OTR) are still required to apply Stage II, or a comparable measure, in all areas under 184(b)(2) ofthe CAA. This requirement is not affected by any widespread use determination or waiverofthe section 182(b)(3) requirement granted undersection 202(a)(6). For the independent section 184(b)(2) "comparable measure" requirement to not prevent an appropriate removal ofStage II controls, OTR States may want to revisit their previously approved comparable measure SlPs to consider substituting available non-Stage II measures for the Stage II controls they currently require. Also, some States have chosen to add Stage llvaporrecovery system requirements in their SIPs for ozone nonattainment areas that are classified in a category lower than "serious.'' While it is not necessary for States to demonstrate ORVR is in widespread use in moderate or cleaner ozone non-attainment areas, a revision ofpreviously adopted SlP requirements to specificallywaive Stage II requirements in such areas would need to comply with the provisions ofCAA section 11O(l) and, as described above, consider any transportation conformity impacts as applicable.

- This guidance for widespread use determinations for special sectors would not necessarily appJy to widespread use determinations for th
. e general motor vehicle fleet. Within the overall motor vehicle fleet. the rate ofpenetration ofORVR-equippedvehicles has not advanced at the same rapid rates as for the fleets discussed inthis memorandum. EPA is still considering the**po~sible** criteria for determining widespread use for the general fleet.

5

# APPENDIXB

NOTICE OF PUBLIC HEARING

## APPENDIX

# B- NOTICE OF PUBLIC HEARING AND LEGAL DOCUMENTATION KENTUCKY DIVISION FORAIR QUALITY NOTICE OF PUBLIC HEARING ON A PROPOSED REVISION TO THE KENTUCKY STATE IMPLEMENTATION PLAN 

### The Kentucky Energy and Environment Cabinet will conduct a public hearing on December 20, 2013 at 10:00 a.m. (local time) in Conference Room 201B at the Kentucky Division for Air Quality Central Office, 200 Fair Oaks Lane, 1st Floor, Frankfort, Kentucky, to receive comments on a.proposed revision to Kentucky's State Implementation Plan (SIP). This SIP revision includes a variance to the Stage II vapor recovery controls requirement on gasoline fuel

. dispensers the Hertz Corporation facility being constructed at the Cincinnati/Northern Kentucky

International Airport, located in Erlanger, KY (Boone County). This hearing is open to the public and all interested persons will be given the opportunity to present testimony. The hearing will be held, if requested, at the date, time, and place given above. It 

### is not necessary that the hearing be held or attended in order for persons to comment on the proposed submittal to EPA. To assure that all comments are accurately recorded, the Division requests that oral comments presented at the hearing also be provided in written form. To be considered part ofthe hearing record, written comments must be received by the close of the hearing. Written comments should be sent to the contact person. Ifno request for a public hearing is received, the hearing will be cancelled, and notice ofthe cancellation will be posted at the website listed below. Request for a public hearing must be received no later than December 13, 2013, while all written comments must be submitted no later than December 20, 2013. The full text ofthe proposed SIP revision is available for public inspection and copying during regular business hours (8:00 a.m. to 4:30 p.m.) at the locations listed below. Any individual requiring copies may submit a request to the Division for Air Quality in writing, by telephone, or by fax. Requests for copies should be directed to the contact person. In addition, an electronic version of the proposed SIP revision document and relevant attachments can be downloaded from the Division for Air Quality's web site at: http:/ /air.ky.gov/Pages/PublicNoticesandHearings.aspx. The hearing facility is accessible to people with disabilities. An interpreter or other auxiliary aid or service will be provided upon request. Please direct these requests to the contact person. CONTACT PERSON: Chris Ewing, Environmental Technologist III, Division for Air Quality, 200 Fair Oaks Lane, 1st Floor, Frankfort, Kentucky 40601. Phone (502) 564-3999; Fax (502) 564-4666; E-mail Christian.ewing@ky.gov. The Energy and Environment Cabinet does not discriminate on the basis ofrace, color, national origin, sex, age, religion, or disability and provides, on request, reasonable accommodation including auxiliary aids and services necessary to afford an individual with a disability an equal opportunity to participate in all services, programs, and activities. Louisville Metro APCD Ashland Regional 850 Barret Ave # 205 1550 Wolohan Dr # 1 Louisville, KY 40204 Ashland, KY 41102 Bowling Green Regional 1508 Westen Ave Bowling Green, KY 42104Florence Regional Frankfort Regional Hazard Regional 8020 Veterans Memorial Dr 200 Fair Oaks Ln. 233 Birch St Suite 110 3r dFloor Suite 2 Florence, KY 41042 Frankfort, KY 40601 Hazard, KY 41701 London Regional Owensboro Regional Paducah Regional 875 S Main St 3032 Alvey Park Dr W 130 Eagle Nest Dr London, KY 40741 Suite 700 Paducah, KY 42003 Owensboro, KY 42303 Boone County Clerk Campbell County Clerk Kenton County Clerk Burlington, KY 41005 Newport, KY 41071 Covington, KY 41011 2950 East Washington Street 340 York Street 303 Court Street

# APPENDIXC

NO COMMENTLETTERFROMR. SCOTTDAVISUNITED STATE$ iNVIIiONMENTAL PROTECTIOI-J AGENCY

Loonard K. Pctcrs, Scc:rctacy**En~** andEnvironmi;Ilt CabiiJ.ct On'ice ot"tbe Secretary 500 .Metro Street 121b FJooc CapltaJ f'ma**To~w** Frankfurt, Kmtucky 40601 DearMr. Peters: REGIOtl 4 Al'LANTI>, FcOER/>

.L CENTEA 61 FORSYTH STREET .t..TlANT;.., ClEOfl:GIA**~0303-8960** DtlUmlber- 20,201 3

Thank**ym~** fur yourlcttcr dated**~ovcmbcr** 14, 20 13,tn.ns.mitlin!i! a prehearing paci:!lgeregarding lhe**s~~** TT**v~** reoo..**·e~"y** t{;rthe Ffr;:rt;.,; filr.:ility**:~t th~**  Kmtucky IntQ1latiOru:ll Ailport.**Th~** rolelll Btethe Sllbject ofa**pullH~ h~ar[OS**  scheduledfur Dece.uber20,20J3., with wrilttln**cl)mmeu~** due bythi! close of b\1siness December 20, 2013. We have completed ourreview ofthe submittal and offer no oomiilti'ltS nt this time. Welookforward tD**~ntinuing** to**·wot'lc~ith** you andyour staff. Tfyouhe.ve any qostions, pleaw oon.tact )lls. Lyno:rae Benjamin,Chief, .Regulatory Development Sectioa at (40¢)**56.:2,-~040.** orhave your**~taft' contact~.**  Fmngal.o at (404) 562-9152. Sincere!)',

R Scott Davis Chief Air Planning**Bn~nclt**

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