[Federal Register Volume 62, Number 65 (Friday, April 4, 1997)]
[Rules and Regulations]
[Pages 16082-16084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8670]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[FRL-5807-3]


Regulations of Fuels and Fuel Additives: Extension of the 
Reformulated Gasoline Program to the Phoenix, Arizona Moderate Ozone 
Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Withdrawal of direct final rule.

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SUMMARY: Under section 211(k)(6) of the Clean Air Act, as amended 
(Act), the Administrator of EPA shall 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. On February 18, 
1997, EPA issued a direct final rule (62 FR 7164) setting an effective 
date for the Phoenix ozone nonattainment area to be a covered area in 
the federal reformulated gasoline (RFG) program. In this action EPA is 
withdrawing the direct final rule because subsequent to publication, 
EPA received several requests for a hearing.

DATES: This action will be effective March 31, 1997.

ADDRESSES: Materials relevant to the direct final rule have been placed 
in Docket A-97-02. The docket is located at the Air Docket Section, 
Mail Code 6102, U.S. Environmental Protection Agency, 401 M Street, SW, 
Washington, DC 20460, in room M-1500 Waterside Mall.
    Documents may be inspected on business days from 8:00 a.m. to 5:30 
p.m. A reasonable fee may be charged for copying docket material. An 
identical docket is also located in EPA's Region IX office in Docket A-
AZ-97. The docket is located at 75 Hawthorne Street, AIR-2, 17th Floor, 
San Francisco, California 94105. Documents may be inspected from 9:00 
a.m. to noon and from 1:00-4:00 p.m. A reasonable fee may be charged 
for copying docket material.

FOR FURTHER INFORMATION CONTACT: Janice Raburn at U.S. Environmental 
Protection Agency Office of Air and Radiation, 401 M Street, SW 
(6406J), Washington, DC 20460, (202) 233-9000.

SUPPLEMENTARY INFORMATION: The preamble, regulatory language and 
regulatory support document are also available electronically from the 
EPA internet Web site and via dial-up modem on the Technology Transfer 
Network (TTN), which is an electronic bulletin board system (BBS) 
operated by EPA's Office of Air Quality Planning and Standards. Both 
services are free of charge, except for your existing cost of internet 
connectivity or the cost of the phone call to TTN. Users are able to 
access and download files on their first call using a personal computer 
per the following information. The official Federal Register version is 
made available on the day of publication on the primary internet sites 
listed below. The EPA Office of Mobile Sources also publishes these 
notices on the secondary Web site listed below and on the TTN BBS.


[[Page 16083]]


Internet (Web)
http://www.epa.gov/docs/fedrgstr/EPA-AIR/ (either select desired date 
or use Search feature)
http://www.epa.gov/OMSWWW/ (look in What's New or under the specific 
rulemaking topic)
TTN BBS: 919-541-5742
(1200-14400 bps, no parity, 8 data bits, 1 stop bit)
Voice Helpline: 919-541-5384
Off-line: Mondays from 8:00 AM to 12:00 Noon ET

    A user who has not called TTN previously will first be required to 
answer some basic informational questions for registration purposes. 
After completing the registration process, proceed through the 
following menu choices from the Top Menu to access information on this 
rulemaking.

<T> GATEWAY TO TTN TECHNICAL AREAS (Bulletin Boards)
<M> OMS--Mobile Sources Information
(Alerts display a chronological list of recent documents) <K> 
Rulemaking & Reporting

    At this point, choose the topic (e.g., Fuels) and subtopic (e.g., 
Reformulated Gasoline) of the rulemaking, and the system will list all 
available files in the chosen category in date order with brief 
descriptions. To download a file, type the letter ``D'' and hit your 
Enter key. Then select a transfer protocol that is supported by the 
terminal software on your own computer, and pick the appropriate 
command in your own software to receive the file using that same 
protocol. After getting the files you want onto your computer, you can 
quit the TTN BBS with the <G>oodbye command.
    Please note that due to differences between the software used to 
develop the document and the software into which the document may be 
downloaded, changes in format, page length, etc. may occur.
    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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                                                Examples of regulated   
                 Category                             entities          
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Industry..................................  Petroleum refiners, motor   
                                             gasoline distributors and  
                                             retailers.                 
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    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 would have been 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.

I. Background

    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 gasoline that EPA has not certified as reformulated 
(``conventional gasoline'') in the nine worst 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.<SUP>1 Under section 211(k)(10)(D), any area reclassified as a 
severe ozone nonattainment area under section 181(b) is also to be 
included in the RFG program. EPA published final regulations for the 
RFG program on February 16, 1994. See 59 FR 7716.
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     <SUP>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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    Any other ozone nonattainment area classified as Marginal, 
Moderate, Serious, or Severe 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 requested by the Governor which has been classified under 
subpart 2 of Part D of Title I of the act 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. Finally, 
EPA is to publish a governor's application in the Federal Register.
    By letter dated January 17, 1997, the Governor of the State of 
Arizona applied to EPA to include the Phoenix moderate ozone 
nonattainment area in the federal RFG program. The Governor requested 
an implementation date of June 1, 1997. The direct final rule published 
by EPA on February 18, 1997 (62 FR 7164) extended the RFG program to 
the Phoenix moderate ozone nonattainment area by setting two 
implementation dates. EPA set an effective date of June 1, 1997 for 
refiners, importers, and distributors, and July 1, 1997 for retailers 
and wholesale purchaser-consumers.
    Also on February 18, 1997 EPA published in the Federal Register a 
Notice of Proposed Rulemaking (NPRM) (62 FR 7197), in which EPA 
proposed to apply the prohibitions of subsection 211(k)(5) to the 
Phoenix, Arizona nonattainment area. The Agency published both a 
proposed rulemaking and a direct final rule because it viewed setting 
the effective date for the addition of the Phoenix ozone nonattainment 
area to the federal RFG program as non-controversial and anticipated no 
adverse or critical comments.

II. Withdrawal of the Phoenix, Arizona Opt-In Direct Final Rule

    After publication of the direct final rule and the proposed rule in 
the Federal Register, EPA received several requests for a hearing. A 
copy of these comments can be found in Air Docket A-97-02. (See 
ADDRESSES) Since EPA received a request for a hearing, as stipulated in 
the direct final rule, the final rule adding the Phoenix ozone 
nonattainment area to the RFG program is being withdrawn by today's 
action effective immediately. Today's withdrawal affects the amendment 
of section 80.70, paragraph (m) appearing at 62 FR 7167 (February 18, 
1997), which would have become effective April 4, 1997, had no adverse 
or critical comments been received.
    EPA is withdrawing this revision to the regulations without 
providing prior notice and an opportunity to comment because it finds 
there is good cause within the meaning of 5 U.S.C. 553(b) to do so. 
Today's withdrawal must be effective before the date on which the 
direct final rule would have been effective, April 4, 1997. This would 
not be possible were EPA to provide an opportunity for public comment 
on this withdrawal. For the same reasons, EPA finds it has good cause 
under 5 U.S.C. 533(d) to make this withdrawal immediately effective.

[[Page 16084]]

III. Statutory Authority

    The Statutory authority for the action proposed 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.

IV. Environmental Impact

    The federal RFG program provides reductions in ozone-forming VOC 
emissions, oxides of nitrogen (NO<SUP>x), and air toxics. Reductions in 
VOCs are environmentally significant because of the associated 
reductions in ozone formation and in secondary formation of particulate 
matter, 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.
    The Arizona Governor's Task Force estimated that if federal RFG 
were required to be sold in Phoenix, VOC emissions would be cut by more 
than nine tons/day. In addition, all vehicles would have improved 
emissions and the area would also get reductions in toxic emissions. 
Today's action means that the Governor of Arizona's request to include 
the Phoenix ozone nonattainment area in the federal RFG program will 
not be effective beginning June 1, 1997. Thus, the Phoenix 
nonattainment area will forego the air quality benefits that would have 
resulted from a June 1, 1997 implementation date of the RFG program.

V. Regulatory Flexibility

    In the direct final rule, EPA explained why it had determined that 
it was not necessary to prepare a regulatory flexibility analysis in 
connection with that action. EPA also determined that the direct final 
rule would not have a significant economic impact on a substantial 
number of small entities. Today's action withdraws the direct final 
rule, an action that would have revised federal regulations. Thus, it 
was not necessary to prepare a regulatory flexibility analysis. 
Likewise, the withdrawal will not have a significant economic impact on 
a substantial number of small entities, because it does not alter any 
currently existing federal requirements.

VI. Executive Order 12866

    Under Executive Order 12866,\2\ 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:
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    \2\ See 58 FR 51735 (October 4, 1993).
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    (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.\3\
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    \3\ Id. at section 3(f)(1)-(4).
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    It has been determined that this action is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 and is 
therefore not subject to OMB review.

VII. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``UMRA''), Pub. L. 104-4, EPA must prepare a budgetary impact 
statement to accompany any general notice of proposed rulemaking or 
final rule that includes a Federal mandate which may result in 
estimated costs to State, local, or tribal governments in the 
aggregate, or to the private sector, of $100 million or more in any one 
year. Under Section 205, for any rule subject to Section 202 EPA 
generally must select the least costly, most cost-effective, or least 
burdensome alternative that achieves the objectives of the rule and is 
consistent with statutory requirements. Under Section 203, before 
establishing any regulatory requirements that may significantly or 
uniquely affect small governments, EPA must take steps to inform and 
advise small governments of the requirements and enable them to provide 
input.
    EPA has determined that today's action does not trigger the 
requirements of UMRA. The action does not include a Federal mandate 
that may result in estimated annual costs to State, local or tribal 
governments in the aggregate, or to the private sector, of $100 million 
or more, and it does not establish regulatory requirements that may 
significantly or uniquely affect small governments.

List of Subjects in 40 CFR Part 80

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

    Dated: March 31, 1997.
Carol M. Browner,

Administrator.
    40 CFR part 80 is amended as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

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

    Authority: Secs. 114, 211, and 301(a) of the Clean Air Act, as 
amended (42 U.S.C. 7414, 7545 and 7601(a)).


Sec. 80.70  [Amended]

    2. In Sec. 80.70, paragraph (m) is removed.

[FR Doc. 97-8670 Filed 4-3-97; 8:45 am]
BILLING CODE 6560-50-P