Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations 63853

P012 Documentation

P013 Rate Application and Computation

P014 Refunds and Exchanges

P020 Postage Stamps and Stationery

P021 Stamped Stationery

P022 Adhesive Stamps

P023 Precanceled Stamps

P030 Postage Meters and Meter Stamps

P040 Permit Imprints

P070 Mixed Classes

P100 First-Class Mail

P200 Periodicals

P500 Express Mail

P600 Standard Mail

P700 Special Postage Payment Systems

P710 Manifest Mailing System (MMS)

P720 Optional Procedure (OP) Mailing

System

P730 Alternate Mailing Systems (AMS)

P750 Plant-Verified Drop Shipment (PVDS)

P760 First-Class or Standard Mail Mailings

With Different Payment Methods

R—RATES AND FEES

R000 Stamps and Stationery

R100 First-Class Mail

R200 Periodicals

R500 Express Mail

R600 Standard Mail

R900 Services

S—SPECIAL SERVICES

S000 Miscellaneous Services

S010 Indemnity Claims

S020 Money Orders and Other Services

S070 Mixed Classes

S500 Special Services for Express Mail

S900 Special Postal Services

S910 Security and Accountability

S911 Registered Mail

S912 Certified Mail

S913 Insured Mail

S914 Certificate of Mailing

S915 Return Receipt

S916 Restricted Delivery

S917 Return Receipt for Merchandise

S920 Convenience

S921 Collect on Delivery (COD) Mail

S922 Business Reply Mail (BRM)

S923 Merchandise Return Service

S924 Bulk Parcel Return Service

S930 Handling

I—INDEX INFORMATION

I000 Information

I010 Summary of Changes

I020 References

I021 Forms Glossary

I022 Subject Index

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 97–31599 Filed 12–2–97; 8:45 am]

BILLING CODE 7710–12–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 80

[FRL–5931–3]

Petition by the Commonwealth of the

Northern Mariana Islands for

Exemption From Anti-Dumping and

Detergent Additization Requirements

for Conventional Gasoline

AGENCY: Environmental Protection

Agency.

ACTION: Notice of direct final decision.

SUMMARY: The Environmental Protection

Agency (‘‘EPA’’ or ‘‘the Agency’’) is

granting a petition by the

Commonwealth of the Northern Mariana

Islands (‘‘CNMI’’) for exemption from

the anti-dumping requirements for

gasoline sold in the United States after

January 1, 1995. This action is being

taken because of CNMI’s unique

geographic location and economic

factors. If the gasoline anti-dumping

exemption were not granted, CNMI

would be required to import gasoline

from a supplier meeting the antidumping requirements adding a

considerable expense to gasoline

purchased by the CNMI consumer.

CNMI is in full attainment with the

national ambient air quality standard for

ozone. This action is not expected to

cause harmful environmental effects to

the citizens of CNMI. EPA is not

granting CNMI’s petition for exemption

from the fuel detergent additization

requirements that all gasoline sold in

the U.S. after January 1, 1995 contain

fuel detergents. CNMI did not show that

these requirements were unreasonable

or infeasible due to any unique local

factors. The fuel detergent additization

requirements are designed to prevent

the build-up of deposits in gasoline

engines and fuel supply systems. By

controlling such desposits in CNMI’s

vehicles, harmful engine exhaust

emissions will be reduced.

This action is being taken as a direct

final decision because EPA believes that

this decision is noncontroversial. The

effects of this decision are limited to the

Commonwealth of the Northern Mariana

Islands.

DATES: This action will be effective on

February 2, 1998, unless the Agency

receives adverse or critical comments by

January 2, 1998. If the Agency receives

adverse comments, EPA will publish in

the Federal Register timely notice

withdrawing this action. In a separate

action published in the Federal Register

today, EPA is concurrently proposing

approval of CNMI’s petition for reasons

discussed in this document. All

correspondence should be directed to

the addresses shown below.

ADDRESSES: Any persons wishing to

submit comments should submit them

(in duplicate, if possible) to the two

dockets listed below, with a copy

forwarded to Marilyn Winstead McCall,

U. S. Environmental Protection Agency,

Fuels and Energy Division, 401 M

Street, S.W. (Mail Code: 6406J),

Washington, DC 20460.

Materials relevant to this petition are

available for inspection in public docket

A–96–11 at the Air Docket Office of the

EPA, room M–1500, 401 M Street, SW.,

Washington, DC 20460, (202) 260–7548,

between the hours of 8:00 a.m. to 5:30

p.m. Monday through Friday. A

duplicate public docket, A–NM–96 has

been established at U.S. EPA Region IX,

75 Hawthorne Street, (Mail Code: A–2–

1), 17th Floor, San Francisco, CA 94105,

(415) 744–1225, and is available

between the hours of 8:30 a.m. to noon,

and 1 p.m. to 5 p.m., Monday through

Friday. As provided in 40 CFR part 2,

a reasonable fee may be charged for

copying services.

FOR FURTHER INFORMATION CONTACT:

Marilyn Winstead McCall at (202) 564–

9029.

SUPPLEMENTARY INFORMATION:

I. Background

A. Regulated Entities

Entities potentially affected by this

action are those involved with the

production, distribution, and sale of

conventional gasoline and gasoline

detergent additives for gasoline used in

CNMI. Regulated categories and entities

include:

Category Examples of regulated entities

Industry Gasoline refiners and importers,

gasoline terminals, detergent

blenders, gasoline truckers, gasoline retailers and wholesale

purchaser-consumers.

This table is not intended to be

exhaustive, but rather provides a guide

for readers regarding entities likely to be

affected by this action. This table lists

the types of entities that EPA is now

aware could potentially be affected by

this decision. Other types of entities not

listed could also be affected. To

determine whether your organization is

affected by this decision, you should

carefully examine the applicability

requirements in § 80.90, § 80.125, and

§ 80.161, Subparts E, F, and G of title 40

of the Code of Federal Regulations

(CFR). If you have any questions

regarding the applicability of this action

to a particular entity, consult the person
63854 Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations

1 40 CFR part 80, subparts E and F.

2 40 CFR part 80, subparts A and G.

3Letter dated August 7, 1996, from Eric Murdock,

Hunton & Williams, Washington, D.C., supporting

CNMI’s petition.

4Final Rule, ‘‘Commonwealth of the Northern

Mariana Islands; Petition for Exemption from the

Diesel Fuel Sulfur Requirements,’’ 59 FR 26129,

(May 19, 1994).

5 Guam Department of Commerce.

6 ‘‘U. S. Sees Higher Gasoline Demand and

Prices,’’ The New York Times, April 11, 1996.

listed in the preceding FOR FURTHER

INFORMATION CONTACT section.

B. Summary of CNMI’s Petition

On July 12, 1995, the Honorable

Froilan C. Tenorio, Governor of the

Commonwealth of the Northern Mariana

Islands, petitioned the Agency for an

exemption from the requirements of

regulations promulgated at 40 CFR 80

that require conventional gasoline meet

certain anti-dumping specifications and

detergent additization requirements. On

December 15, 1993, EPA promulgated

regulations on the production and sale

of reformulated gasoline and gasoline

that is not required to be reformulated,

or ‘‘conventional’’ gasoline. For

conventional gasoline, the gasoline

produced by a refiner or importer is

required to cause no more motor vehicle

emissions than gasoline produced by

that refiner or importer in 1990. This is

commonly called the ‘‘anti-dumping’’

program. On October 14, 1994, and July

15, 1996, EPA promulgated regulations

requiring that all gasoline contain fuel

detergents. The fuel detergent

additization regulations require that all

gasoline sold or dispensed in the United

States contain additives to prevent

accumulation of deposits in vehicle

engines and fuel supply systems, and

that volumetric additive reconciliation

records (‘‘VAR’’) and product transfer

documents (‘‘PTD’’) be maintained by

certain persons who add the required

detergent to the gasoline and transfer

the product to other persons. Since

CNMI is in attainment for ozone, it is

not required to offer reformulated

gasoline. However, providers of gasoline

in CNMI such as those listed in the table

above are required to provide

conventional gasoline that meets the

anti-dumping provisions and the

detergent additization requirements

beginning January 1, 1995.

C. Statutory Provisions

Section 211(k) of the Clean Air Act

requires that gasoline be reformulated to

reduce motor vehicle emissions of toxic

and tropospheric ozone-forming

compounds, and that this reformulated

gasoline be sold in the nine largest

metropolitan areas with the most severe

summertime ozone levels and other

ozone nonattainment areas that opt into

the program. Section 211(k)(8) prohibits

conventional gasoline sold in the rest of

the country from becoming any more

polluting than it was in 1990. This

requirement ensures that refiners do not

‘‘dump’’ fuel components into

conventional gasoline that cause

environmentally harmful emissions and

that are restricted in reformulated

gasoline. This requirement is referred to

as the ‘‘anti-dumping’’ standards for

conventional gasoline.1

Section 211(l) states that ‘‘no person

may sell or dispense to an ultimate

consumer in the United States, and no

refiner or marketer may directly or

indirectly sell or dispense to persons

who sell or dispense to ultimate

consumers in the United States any

gasoline which does not contain

additives to prevent the accumulation of

deposits in engines or fuel supply

systems.’’ This requirement is

commonly referred to as the ‘‘fuel

additization’’ or ‘‘detergent

additization’’ regulation. The CNMI is

defined as a state in these regulations.2

Section 325 of the Act provides that,

upon petition by the Governor of Guam,

American Samoa, the Virgin Islands, or

the Commonwealth of the Northern

Mariana Islands, the Administrator may

exempt any person or source in such

territory from various requirements of

the Act. It states that ‘‘such exemption

may be granted if the Administrator

finds that compliance with such

requirements is not feasible or is

unreasonable due to unique

geographical, meteorological, or

economic factors of such territory, or

such other local factors as the

Administrator deems significant.’’

EPA previously granted CNMI an

exemption from the sulfur content

requirements for motor vehicle diesel

fuels as specified in sections 211 (i) and

(g) of the Act on May 19, 1994. That

exemption was effective on July 18,

1994. A more in-depth description of

CNMI’s geographical, meteorological

and economic characteristics are

discussed in the notice of direct final

decision granting that petition (see 59

FR 26129, May 19, 1994).

D. CNMI’s Geographical,

Meteorological, and Demographic

Characteristics

CNMI consists of fourteen islands of

volcanic origin located in the western

part of the Pacific Ocean. The islands

are part of the Mariana Archipelago (the

southernmost island of which is Guam,

a separate territory of the United States)

and extend generally in a north-south

orientation for 388 nautical miles, with

a total dry land area of 176.5 square

miles. The largest and most populated

of the islands is Saipan (population

approximately 40,000). Most of the

remainder of the population is split

between the islands of Tinian and Rota,

each having a population of slightly

more than 2,000 persons. CMNI is 5,280

miles from the mainland United States,

1,440 miles east of Manila, 1,150 miles

south of Tokyo, and 108 miles north of

Guam.

CNMI has a tropical climate, with

consistently warm and humid weather.

Prevailing winds blow from the east

55% of the time and from the northeast

25% of the time. The trade winds are

strongest and most constant during the

dry season when wind speeds average

15 to 25 miles per hour. In addition,

during the rainy season, the islands are

periodically hit by westward moving

typhoons and heavy storm systems with

wind speeds exceeding 100 miles per

hour.

CNMI is in attainment with all

primary and secondary ambient air

quality standards (NAAQS), including

the standard for ozone. The developed

and populated areas of Saipan are

located predominantly on the western

side of the island. CNMI’s petition states

that, as a result, the winds from the east

regularly disperse most air pollutants

emitted from sources on the island over

the Philippine Sea.

E. Economic Factors in CNMI

All motor vehicle gasoline is imported

to CNMI and supplied by refineries in

Singapore and Australia. Transportation

costs dictate that the markets supplying

gasoline to CNMI be limited to the Far

East. It is estimated that there are 20,000

to 30,000 gasoline-powered vehicles in

CNMI. Most are relatively new as the

harsh, corrosive environment of CNMI

tends to shorten a car’s operational life.

Average vehicle usage is estimated to be

less than 1,000 miles per month.3

CNMI is significantly less affluent

than the mainland United States. The

annual per capita income in CNMI is

less than $7,200 4 compared to a

national average of $14,420 5. Moreover,

due to relatively high transportation

costs, retail gasoline prices are already

significantly higher in CNMI than in the

continental U.S., ranging, in July 1995,

from an average of about $1.60 per

gallon on the island of Saipan to more

than $1.80 per gallon on the islands of

Rota and Tinian. For the same period,

the national weekly average for a gallon

of gasoline was approximately $1.18.6
Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations 63855

7Letters dated August 7, 1996 and October 8,

1996, from Eric Murdock, Hunton & Williams,

Washington, D.C., supporting CNMI’s petition.

8Letter dated October 8, 1996, from Eric

Murdock, Hunton & Williams, Washington, D.C.,

supporting CNMI’s petition.

9Computed from values in Guam petition based

on proportional relationship (see 61 FR 53854 10/

16/96).

10See Regulatory Impact Analysis for

Reformulated Gasoline, EPA Air Dockets A–92–01

and A–92–12, 401 M Street, S.W., Washington, D.C.

20460.

II. Clarification and Rationale for

Exemption

A. Anti-Dumping Requirements

(Subparts E and F)

Clarification

Section 211(k)(8) requires that average

per gallon emissions of VOC, CO, NOX,

and toxics due to conventional gasoline

produced by a refiner or importer not

increase over 1990 levels for each

refiner or importer. Since VOC and CO

emission increases are expected to be

controlled through other regulatory

programs, the anti-dumping provisions

are limited to regulating emissions of

toxics and NOX emissions.

Pursuant to Section 211(k)(8) of the

Act, EPA adopted the regulations in

Subpart E to address exhaust benzene,

total exhaust toxics and NOX emissions

from conventional gasoline use. Under a

simple emissions model, applicable

from January 1, 1995 to January 1, 1998,

a limit is set for sulfur, olefins and T90

as well as exhaust benzene. A more

complex emissions model is required

beginning January 1, 1998, with limits

set on exhaust toxics and NOX. All the

limits are set as annual averages.

Compliance is measured by

comparing emissions of a refiner’s or

importer’s conventional gasoline against

those of a baseline gasoline—either a

baseline based on the quality of a

refiner’s 1990 gasoline or on a statutory

baseline specified by the Clean Air Act.

Subparts E and F require a refiner or

importer that establishes a baseline to

hire an independent auditor to verify its

baseline parameters. EPA requires each

refiner or importer to maintain records

and to report to EPA certain information

pertaining to production of

conventional gasoline by February 1996,

and every subsequent year. CNMI’s

petition states that importers would be

required to demonstrate compliance

with the anti-dumping requirements

using the statutory baseline.

Rationale for Exemption From Antidumping Requirements

The burden of compliance with these

requirements in CNMI will fall

principally on the two major gasoline

importing and marketing companies

who import gasoline to CNMI. These

companies also import the gasoline that

is supplied in Guam. Therefore the

gasoline supplied in CNMI is expected

to have the same properties in terms of

the anti-dumping parameters as the

gasoline sold in Guam.7

Transportation costs dictate that the

markets supplied by these refineries be

limited to the Far East. These refineries

have no reason to produce reformulated

gasoline or conventional gasoline that

meets the anti-dumping requirements.

One importer states that the demand for

gasoline in CNMI represents less than

1% of the total gasoline production of

the Singapore refineries.

As in Guam, Singapore refineries

currently supply CNMI’s gasoline.

Therefore, the quality is the same in

CNMI as in Guam. Singapore refineries

differ from the configurations of typical

mainland U.S. refineries in that they do

not have catalytic cracking capability

(that is, the Singapore refineries do not

employ fluid catalytic cracking or

‘‘FCC’’ units). As a result of these

differences in plant configuration, the

properties of the gasoline produced by

the Singapore refineries would be

expected to be quite different in some

respects from the properties of gasoline

produced by the typical mainland U. S.

refinery (i.e., ‘‘baseline’’ conventional

gasoline). Specifically, gasoline

produced at the Singapore refineries

would typically have lower

concentrations of sulfur and olefins and

relatively higher concentrations of

benzene and aromatics.

As a result of these differences, the

gasoline produced at the Singapore

refineries cannot consistently satisfy the

anti-dumping requirements when

compared to statutory baseline gasoline,

particularly for the winter season. This

is not the result of any ‘‘dumping’’ of

components restricted in reformulated

gasoline; it is a reflection of differences

in the quality of the gasoline produced

in Singapore compared to that typically

produced in the mainland U.S.

The two importers of gasoline to

CNMI have indicated that the gasoline

normally imported from the Singapore

refineries is likely to contain benzene

and aromatic concentrations that exceed

the statutory baseline levels.

Approximately 12,000,000 gallons of

gasoline are consumed annually in

CNMI.8 As previously stated, the quality

of the gasoline imported to CNMI is the

same as that imported to Guam. If CNMI

is not granted an exemption from the

anti-dumping requirements, EPA

calculates that gasoline, meeting the

statutory baseline, could result during a

compliance period in emitting

approximately 4 tons of total toxic

emissions in CNMI.

A simple cost effectiveness analysis

indicates that the cost effectiveness of

reducing the total toxic emissions

would be over $200,000 per ton.9 In

EPA’s Regulatory Impact Analysis for

Reformulated Gasoline,10 the Agency

estimated that reducing total toxic

emissions from combustion and use of

gasoline under the reformulated

gasoline program would cost

approximately $55,000 per ton.

Therefore, the cost effectiveness of using

another gasoline supplier to reduce air

toxics emissions in CNMI is several

times higher than EPA’s estimate for

nationwide control of toxics in the

federal reformulated gasoline program.

CNMI’s petition states that overall

compliance with the anti-dumping and

fuel detergent requirements would

require capital expenditures of $143,000

and annual operating costs of $212,500.

These costs are entirely associated with

gasoline and will therefore result in

increases in the retail price of gasoline,

estimated by the companies to be at

least 1 to 2 cents per gallon.

In addition, the anti-dumping

requirements could force importers to

obtain gasoline from distant refineries,

adding substantially to the

transportation costs and resulting in a

price increase at the retail level of as

much as another 10 cents per gallon.

The CNMI consumer is already paying

a significantly higher price for gasoline

than the consumer on the U. S.

mainland. An additional 10 cents or

more per gallon for gasoline would pose

a significant economic burden to CNMI

residents.

B. Fuel Additization Requirements—

(Subpart G)

Clarification

Section 211(l) requires that, beginning

January 1, 1995, no person may sell or

dispense to an ultimate consumer in the

United States, and no refiner or

marketer may sell or dispense to

persons who sell or dispense to ultimate

consumers in the United States any

gasoline which does not contain

additives to prevent the accumulation of

deposits in engines or fuel supply

systems. EPA promulgated a rule on

October 14, 1994, under which all

gasoline (reformulated and

conventional) sold or transferred to

gasoline retail outlets or wholesale

purchaser consumer facilities and all

gasoline sold or transferred to ultimate

consumers must be additized with a fuel
63856 Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations

11 61 Fed. Reg. 53854 (October 16, 1996).

12 61 FR 53854 (October 16, 1996).

13Final Rule on the Certification Standards for

Deposit Control of Gasoline Additives, July 5, 1996,

61 FR 35353. 14 61 FR 53854 (October 16, 1996).

detergent additive registered with the

EPA, starting January 1, 1995. On July

5, 1996, EPA published a supplemental

rule requiring testing and certification of

the fuel detergents (61 FR 3510).

Fuel deposits in motor vehicle

engines and fuel supply systems and

their impacts on vehicle performance

have been studied for many years. Fuel

injector and intake valve deposits have

been shown to have significant adverse

effects on drivability, exhaust emissions

and, in some cases, on fuel economy.

Deposits in fuel injectors may undercut

the effectiveness of engines’ oxygen

sensors in ensuring the best fuel/air

ratio to control emissions. Carburetor

deposits can cause improper enrichment

of the fuel/air mixture, which can result

in rough idling, stalling, poor

acceleration, reduced fuel economy and

higher emissions of hydrocarbons,

carbon monoxide, and, in some cases,

nitrogen oxides. The mechanisms by

which intake valve deposits increase

emissions are less clear. Adsorption and

desorption of fuel on the intake valves

can lead to improper fuel/air ratios

across the cylinders, thereby interfering

with the ability of the oxygen sensor to

regulate proper mixture composition.

Intake valve deposits might also

increase emissions by interfering with

the proper preparation and delivery of

the fuel air mixture resulting in

combustion inefficiency.

Under the current additization

program, the detergent additive must be

registered under 40 CFR Part 79, and

must be added in concentration equal to

or exceeding the level specified by the

additive manufacturer as being effective

in preventing deposits. Each facility

where detergent additization is

performed is required to create and

maintain volumetric additive

reconciliation (VAR) records to

demonstrate that the gasoline has been

additized to the proper concentration.

Product transfer documentation (PTD) is

required whenever title or custody to

any gasoline or detergent is transferred,

other than when additized gasoline is

sold or dispensed at a retail outlet or

wholesale purchaser-consumer facility

to the consumer. Each gasoline refiner,

importer, carrier, distributor, oxygenate

blender or detergent blender who owns,

leases, operates, controls or supervises

the facility (including a truck or

individual storage tank) is subject to

these requirements.

Rationale for Denying Exemption

CNMI’s petition states that of the two

importers of gasoline, only one importer

adds a detergent additive to all of the

grades of gasoline that it sells in CNMI.

The importer using detergents in all the

gasoline it imports to CNMI adds a

detergent additive (RT2276) to both

grades it imports at a concentration of

19.1 gallons to every 42,000 gallons of

gasoline. As mentioned in the notice of

direct final decision on Guam’s petition

for exemption from the anti-dumping

and gasoline detergent additization

regulations, all importers and marketers

of Guam’s gasoline are now adding

detergents to Guam’s gasoline.11 EPA,

believes, therefore, that it is also feasible

for the importer and its marketers not

using detergents to add detergents to the

gasoline it imports for consumption in

CNMI.

Capital costs of compliance with the

anti-dumping and additization

requirements would be approximately

$143,000, of which amount, the majority

would be required for the additization

requirements. Approximately $5,000 of

this amount would be required for

software modifications for the VAR and

PTD requirements (for the importer that

is not already adding detergents to its

gasoline). Annual operating

expenditures would amount to more

than $212,000—approximately one-half

of that amount would be required for

operating expenses for the additization

requirements for the two importers.

These costs are comparable to the costs

computed for the three importers of

gasoline to Guam as described in the

notice of direct final decision on Guam’s

petition for exemption from the antidumping and detergent additization

requirements of conventional gasoline.12

EPA believes that the costs in CNMI

of compliance with the requirements of

Subpart G would be the same as

compared to compliance costs in Guam.

The Guam petition stated that the

compliance cost would add between .6

to 1.4 cents to the cost of a gallon of

gasoline. EPA estimated that the average

incremental cost to consumers of

compliance with the detergent

requirements for the mainland United

States would be 0.1 cent a gallon 13 with

this cost being partially compensated for

by the increased fuel economy and

decreased maintenance requirements

which improved deposit control is

expected to provide. Over 90 percent of

the total estimated cost of the program

is associated with the price of the

additional additive amounts needed to

bring all gasoline up to the effective

detergency levels which most of U.S.

gasoline already contains. EPA believes

that the cost to CNMI consumers will,

most likely, closely parallel that

projected for consumers in the mainland

U.S.

Transportation costs associated with

shipping detergent additive which

complies with federal detergency

requirements to CNMI are likely to be

somewhat higher than in the mainland

U.S. However, EPA believes that this

differential in cost will have minimal

effect due to the small volume of

detergent additive estimated to be

needed to achieve proper additization

(approximately 0.4 to 0.6 gallons of

detergent to 1,000 gallons of gasoline).

In addition, EPA’s estimate of the cost

to the consumer of the detergent

program assumed the average motorist

drives 10,000 to 15,000 miles per year

and consumes 400 to 600 gallons of

gasoline. Given CNMI’s small size, the

average motorist would tend to drive

less than the average motorist on the

mainland which would tend to reduce

the cost to a CNMI consumer relative to

EPA’s estimate. CNMI’s petition states

that average miles driven per year are

less than 12,000. All things considered,

the cost to the consumer of up to six

dollars a year estimated for the U.S. as

a whole, holds for CNMI as well. EPA

believes that this would not be an

unreasonable economic burden for the

CNMI consumer. This is generally

consistent with EPA’s estimate of the

cost of compliance with the detergent

requirements for the mainland United

States. In addition, one supplier is

already adding detergents to all of the

gasoline it imports to CNMI. Therefore

only one importer’s gasoline is not

currently being additized.

Compliance costs associated with the

record keeping (VAR and PTD)

requirements of the detergent rule are

the primary additional costs to be

considered herewith. As in the Guam

petition 14 EPA estimates that

compliance with the record keeping

requirements of Subpart G would add

only a small portion—less than l cent—

to the cost of a gallon of gasoline. EPA

believes that this would not be an

unreasonable economic burden for the

CNMI consumer.

Start-up costs could be higher in

CNMI than in other markets on the

mainland where detergent additization

has been an ongoing process for several

years. EPA does not believe that start-up

of this program will be significantly

more difficult or expensive in CNMI

compared to the rest of the U.S. Further,

once compliance programs are

established, the annual cost of

compliance will be comparable to that

in other areas. In summary, the small
Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations 63857

15 58 FR 51736 (October 4, 1993). 16 Id. at section 3(f)(1)-(4).

added cost to CNMI consumers, the fact

that one of the two importers is now

adding detergents to its gasoline, and

the fact that the CNMI gasoline

suppliers also supply Guam’s gasoline

of the same quality (see 61 FR 53854

(October 16, 1996)) which contains

detergents lead EPA to conclude that an

exemption from the requirements of

Subpart G is not warranted.

III. Final Action

A. Anti-Dumping Provisions for

Conventional Gasoline

EPA has decided to exempt the

Commonwealth of the Northern Mariana

Islands from compliance with the antidumping standards for conventional

gasoline under section 211(k)(8). The

Agency believes that compliance with

the gasoline anti-dumping requirements

is unreasonable given the significantly

increased costs to consumers in CNMI

in achieving compliance. These

increased costs are directly attributable

to CNMI’s location and resulting

inability of importers to comply with

the anti-dumping requirements without

significantly greater costs than those

expected for importers in the U.S.

mainland. Gasoline price increases of

the magnitude expected to result from

compliance with subparts E and F could

be especially burdensome for the many

citizens of CNMI whose incomes are

modest.

In addition, despite its geographic

remoteness from the mainland,

compliance with the anti-dumping

provisions might require that CNMI

import conventional gasoline from the

U.S. mainland, greatly increasing the

cost of conventional gasoline. EPA finds

that these economic factors are unique

to the Commonwealth of the Northern

Mariana Islands.

This exemption will apply to all

persons in CNMI subject to the antidumping requirements in section

211(k)(8) of the Act, and subparts E and

F of 40 CFR Part 80. This exemption is

retroactive to January 1, 1995, and

applies only to gasoline imported to

CNMI for use in CNMI. EPA reserves the

right to review and reopen this

exemption in the future if conditions

change to warrant such an action.

B. Fuel Detergent Additization

EPA is denying the petition from the

Commonwealth of the Northern Mariana

Islands for an exemption from the fuel

detergent additization requirement that,

after January 1, 1995, all conventional

gasoline contain registered fuel

additives that control fuel deposits as

established in 40 CFR part 80, subpart

G. CNMI has not demonstrated that

unique local factors exist such that

compliance with the detergent

additization and record keeping

requirements would be either infeasible

or unreasonable.

IV. Public Participation and Effective

Date

The Agency is publishing this action

as a direct final decision because it

views it as noncontroversial and limited

to the Commonwealth of the Northern

Mariana Islands. EPA anticipates no

adverse or critical comments.

Representatives of automobile and

petroleum industry associations have

indicated that their constituents will not

be adversely affected by this direct final

decision and therefore the Agency

expects no adverse comments from the

members of those associations.

Similarly, the Agency does not expect

adverse comments from the

environmental community or state and

local governments, since the

environmental impact is very minimal.

This action will become effective

February 2, 1998. If the Agency receives

adverse or critical comments by January

2, 1998, EPA will publish a subsequent

Federal Register document withdrawing

this decision. In the event that adverse

or critical comments are received, EPA

is also publishing a notice of proposed

decision in a separate action today,

which proposes the same action

contained in this direct final decision.

Any adverse comments received by the

date listed above will be addressed in a

subsequent final decision. That final

decision will be based on the relevant

portion of the proposed final decision

that is published today in the proposed

rules section of this Federal Register

and that is identical to this direct final

decision. The EPA will not institute a

second comment period on this action.

Any parties interested in commenting

on this action should do so at this time.

If no such comments are received, the

public is advised that this action will be

effective February 2, 1998.

This procedure allows the

opportunity for public comments and

opportunity for oral presentation of data

as required under section 307(d) of the

Act. This procedure also provides an

expedited procedure for final action

where a decision is not expected to be

controversial and no adverse comment

is expected.

V. Executive Order 12866

Under Executive Order 12866,15 the

Agency must determine whether a

regulation is ‘‘significant’’ and therefore

subject to OMB review and the

requirements of the Executive Order.

The Order defines ‘‘significant

regulatory action’’ as one that is likely

to result in a rule that may:

(1) Have an annual effect on the

economy of $100 million or more, or

adversely affect in a material way the

economy, a sector of the economy,

productivity, competition, jobs, the

environment, public health or safety, or

State, local or tribal governments of

communities;

(2) Create a serious inconsistency or

otherwise interfere with an action taken

or planned by another agency;

(3) Materially alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or the rights and

obligations of recipients thereof; or

(4) Raise novel legal or policy issues

arising out of legal mandates, the

President’s priorities, or the principles

set forth in this Executive Order.16

It has been determined that this rule

is not a ‘‘significant regulatory action’’

under the terms of Executive Order

12866 and is therefore not subject to

OMB review.

VI. Impact on Small Entities

This action either eases or leaves

unchanged requirements otherwise

applicable to affected entities. Thus,

EPA has determined that it will not

result in a significant adverse impact on

a substantial number of small entities.

VII. Paperwork Reduction Act

The Paperwork Reduction Act of

1980, 44 U.S.C. 3501 et seq., and

implementing regulations, 5 CFR part

1320, do not apply to this action as it

does not involve the collection of

information as defined therein.

VIII. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA)

generally requires an agency to conduct

a regulatory flexibility analysis of any

rule subject to notice and comment

rulemaking requirements 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 not-for-profit enterprises, and

small governmental jurisdictions. This

decision would not have a significant

impact on a substantial number of small

entities because the overall impact of

this decision is a net decrease in

requirements on all entities including

small entities. Therefore, I certify that

this action will not have a significant

economic impact on a substantial

number of small entities.
63858 Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations

IX. Unfunded Mandates

Under Section 202 of the Unfunded

Mandates Reform Act of 1995

(‘‘Unfunded Mandates Act’’), EPA must

prepare a budgetary impact statement to

accompany any proposed or final rule

that includes a federal mandate that

may result in estimated costs to state,

local, or tribal governments in the

aggregate, or to the private sector, of

$100 million or more. Under Section

205, EPA must select the most cost

effective and least burdensome

alternative that achieves the objectives

of the rule and is consistent with

statutory requirements. Section 203

requires EPA to establish a plan for

informing and advising any small

governments that may be significantly

or uniquely impacted by the rule.

EPA has determined that the

exemption in this notice does not

include a federal mandate that may

result in estimated costs of $100 million

or more to those entities mentioned

above. This federal action approves a

request for exemption by petitioners in

CNMI to reduce the cost of

implementing the Clean Air Act.

Accordingly, no additional costs to

state, local, or tribal governments, or to

the private sector result from this action.

X. Submission to Congress and the

General Accounting Office

Under 5 U.S.C. 801(a)(1)(A) as added

by the Small Business Regulatory

Enforcement Fairness Act of 1996, EPA

submitted a report containing this

decision and other required information

to the U.S. Senate, the U.S. House of

Representatives and the Comptroller

General of the General Accounting

Office prior to publication of the

decision in today’s Federal Register.

This action is not a ‘‘major rule’’ as

defined by 5 U.S.C. 804(2).

XI. Electronic Copies of Decision

A copy of this action is available on

the Internet at www.epa.gov/

OMSWWW under the title: ‘‘EPA

Decision to Grant Conventional

Gasoline Anti-dumping Exemption to

the Commonwealth of the Northern

Mariana Islands.’’

XII. Statutory Authority

Authority for the action described in

this notice is in section 325(a)(1) (42

U.S.C. 7625–1(a)(1)) of the Clean Air Act

as amended.

Dated: November 25, 1997.

Carol M. Browner,

Administrator.

[FR Doc. 97–31736 Filed 12–2–97; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 180

[OPP–300574; FRL–5754–1]

RIN 2070–AB78

Sodium Chlorate; Exemption From

Pesticide Tolerance for Emergency

Exemptions

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule.

SUMMARY: This regulation establishes a

time-limited exemption from the

requirement of a tolerance for residues

of sodium chlorate in or on wheat. This

action is in connection with crisis

exemptions declared by the states of

Arkansas and Mississippi under section

18 of the Federal Insecticide, Fungicide,

and Rodenticide Act authorizing use of

the pesticide on wheat in Arkansas and

Mississippi. This regulation establishes

an exemption from the requirement of a

tolerance for residues of sodium

chlorate in this food commodity

pursuant to section 408(l)(6) of the

Federal Food, Drug, and Cosmetic Act,

as amended by the Food Quality

Protection Act of 1996. The exemption

will expire and is revoked on July 31,

1998.

DATES: This regulation is effective

December 3, 1997. Objections and

requests for hearings must be received

by EPA on or before February 2, 1998.

ADDRESSES: Written objections and

hearing requests, identified by the

docket control number, [OPP–300574],

must be submitted to: Hearing Clerk

(1900), Environmental Protection

Agency, Rm. M3708, 401 M St., SW.,

Washington, DC 20460. Fees

accompanying objections and hearing

requests shall be labeled ‘‘Tolerance

Petition Fees’’ and forwarded to: EPA

Headquarters Accounting Operations

Branch, OPP (Tolerance Fees), P.O. Box

360277M, Pittsburgh, PA 15251. A copy

of any objections and hearing requests

filed with the Hearing Clerk identified

by the docket control number, [OPP–

300574], must also be submitted to:

Public Information and Records

Integrity Branch, Information Resources

and Services Division (7502C), Office of

Pesticide Programs, Environmental

Protection Agency, 401 M St., SW.,

Washington, DC 20460. In person, bring

a copy of objections and hearing

requests to Rm. 1132, Crystal Mall #2,

1921 Jefferson Davis Hwy., Arlington,

VA.

A copy of objections and hearing

requests filed with the Hearing Clerk

may also be submitted electronically by

sending electronic mail (e-mail) to: oppdocket@epamail.epa.gov. Copies of

objections and hearing requests must be

submitted as an ASCII file avoiding the

use of special characters and any form

of encryption. Copies of objections and

hearing requests will also be accepted

on disks in WordPerfect 5.1/6.1 file

format or ASCII file format. All copies

of objections and hearing requests in

electronic form must be identified by

the docket control number [OPP–

300574]. No Confidential Business

Information (CBI) should be submitted

through e-mail. Electronic copies of

objections and hearing requests on this

rule may be filed online at many Federal

Depository Libraries.

FOR FURTHER INFORMATION CONTACT: By

mail: Libby Pemberton, Registration

Division 7505C, Office of Pesticide

Programs, Environmental Protection

Agency, 401 M St., SW., Washington,

DC 20460. Office location, telephone

number, and e-mail address: CM #2,

1921 Jefferson Davis Hwy., Arlington,

VA, (703) 308–9364, e-mail:

pemberton.libby@epamail.epa.gov.

SUPPLEMENTARY INFORMATION: EPA, on

its own initiative, pursuant to section

408(e) and (l)(6) of the Federal Food,

Drug, and Cosmetic Act (FFDCA), 21

U.S.C. 346a(e) and (l)(6), is establishing

an exemption from the requirement of a

tolerance for residues of the defoliant/

desiccant sodium chlorate, in or on

wheat. This exemption will expire and

is revoked on July 31, 1998. EPA will

publish a document in the Federal

Register to remove the revoked

exemption from the Code of Federal

Regulations.

I. Background and Statutory Authority

The Food Quality Protection Act of

1996 (FQPA) (Pub. L. 104–170) was

signed into law August 3, 1996. FQPA

amends both the Federal Food, Drug,

and Cosmetic Act (FFDCA), 21 U.S.C.

301 et seq., and the Federal Insecticide,

Fungicide, and Rodenticide Act

(FIFRA), 7 U.S.C. 136 et seq. The FQPA

amendments went into effect

immediately. Among other things,

FQPA amends FFDCA to bring all EPA

pesticide tolerance-setting activities

under a new section 408 with a new

safety standard and new procedures.

These activities are described below and

discussed in greater detail in the final

rule establishing the time-limited

tolerance associated with the emergency

exemption for use of propiconazole on

sorghum (61 FR 58135, November 13,

1996) (FRL–5572–9).

New section 408(c)(2)(A)(i) of the

FFDCA allows EPA to establish an