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[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Proposed Rules]
[Pages 42597-42600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15617]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2015-0522; FRL-9948-51-Region 5]

Air Plan Approval; Ohio; Removal of Stage II Gasoline Vapor 
Recovery Requirements

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a State Implementation Plan (SIP) revision submitted by the 
Ohio Environmental Protection Agency (Ohio EPA) on July 15, 2015 and 
February 29, 2016, concerning the state's Stage II vapor recovery 
(Stage II) program for the Cleveland, Cincinnati, and Dayton ozone 
areas in Ohio. The revision removes Stage II requirements for the three 
areas as a component of the Ohio ozone SIP. The submittal also includes 
a demonstration as required by the Clean Air Act (CAA) that addresses 
emissions impacts associated with the removal of the program.

DATES: Comments must be received on or before August 1, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2015-0522 at http://www.regulations.gov, or via email to 
persoon.carolyn@epa.gov. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the ``For Further Information Contact'' section. For the 
full EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Mobile Source 
Program Manager, Control Strategies Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 886-6061, 
acevedo.francisco@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This SUPPLEMENTARY INFORMATION 
section is arranged as follows:

    I. Background
    II. What changes have been made to the Ohio Stage II vapor 
recovery program?
    III. What is EPA's analysis of the state's submittal?
    IV. What action is EPA proposing to take?
    V. Incorporation by Reference
    VI. Statutory and Executive Order Reviews

I. Background

    Stage II and onboard refueling vapor recovery systems (ORVR) are 
two types of emission control systems that capture fuel vapors from 
vehicle gas tanks during refueling. Stage II systems are specifically 
installed at gasoline dispensing facilities (GDF) and capture the 
refueling fuel vapors at the gasoline pump nozzle. The system carries 
the vapors back to the underground storage tank at the GDF to prevent 
the vapors from escaping to the atmosphere. ORVR systems are carbon 
canisters installed directly on automobiles to capture the fuel vapors 
evacuated from the gasoline tank before they reach the nozzle. The fuel 
vapors captured in the carbon canisters are then combusted in the 
engine when the automobile is in operation. Stage II and vehicle ORVR 
were initially both required by the 1990 Amendments to the CAA under 
sections 182(b)(3) and 202(a)(6), respectively. In some areas Stage II 
has been in place for over 25 years, but Stage II was not widely 
implemented by the states until the early to mid-1990s as a result of 
the CAA requirements for moderate, serious, severe, and extreme ozone 
nonattainment areas, and for states in the Northeast Ozone Transport 
Region (OTR) under CAA section 184(b)(2).
    CAA section 202(a)(6) required EPA to promulgate regulations for 
ORVR for light-duty vehicles (passenger cars). EPA adopted these 
requirements in 1994, at which point moderate ozone nonattainment areas 
were no longer subject to the section 182(b)(3) Stage II requirement. 
However, some moderate areas retained Stage II requirements to provide 
a control method to comply with rate-of-progress emission reduction 
targets. ORVR equipment has been phased in for new passenger vehicles 
beginning with model year 1998, and starting in 2001 for light-duty 
trucks and most heavy-duty gasoline-powered vehicles. ORVR equipment 
has been installed on nearly all new gasoline-powered light-duty 
vehicles, light-duty trucks and heavy-duty vehicles since 2006.
    During the phase-in of ORVR controls, Stage II has provided 
volatile organic compound (VOC) reductions in ozone nonattainment areas 
and certain attainment areas of the OTR. Congress recognized that ORVR 
and Stage II would eventually become largely redundant technologies, 
and provided authority to EPA to allow states to remove Stage II from 
their SIPs after EPA finds that ORVR is in widespread use.
    Effective May 16, 2012 (77 FR 28772), EPA determined that ORVR is 
in widespread nationwide use for control of gasoline emissions during 
refueling of vehicles at GDFs. Currently, more than 75 percent of 
gasoline refueling nationwide occurs with ORVR-equipped vehicles, so 
Stage II programs have become largely redundant control

[[Page 42598]]

systems and Stage II systems achieve an ever declining emissions 
benefit as more ORVR-equipped vehicles continue to enter the on-road 
motor vehicle fleet.\1\
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    \1\ In areas where certain types of vacuum-assist Stage II 
systems are used, the differences in operational design 
characteristics between ORVR and some configurations of these Stage 
II systems result in the reduction of overall control system 
efficiency compared to what could have been achieved relative to the 
individual control efficiencies of either ORVR or Stage II emissions 
from the vehicle fuel tank.
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    EPA also exercised its authority under CAA section 202(a)(6) to 
waive certain Federal statutory requirements for Stage II gasoline 
vapor recovery at GDFs. This decision exempts all new ozone 
nonattainment areas classified serious or above from the requirement to 
adopt Stage II control programs. Similarly, any state currently 
implementing Stage II programs may submit SIP revisions that, once 
approved by EPA, would allow for the phase out of Stage II control 
systems. To assist states in the development of SIP revisions to remove 
Stage II requirements from their SIPs, EPA released its ``Guidance on 
Removing Stage II Gasoline Vapor Control Programs from State 
Implementation Plans and Assessing Comparable Measures'' (EPA-457/B-12-
001) on August 7, 2012.

II. What changes have been made to the Ohio Stage II vapor recovery 
program?

    The Ohio EPA originally submitted a SIP revision to EPA on June 7, 
1993, to satisfy the requirement of section 182(b)(3) of the CAA. The 
revision applied to the Cleveland (Ashtabula, Cuyahoga, Geauga, Lake, 
Lorain, Medina, Portage and Summit counties), Cincinnati (Butler, 
Clermont, Hamilton and Warren counties), and Dayton (Clark, Greene, 
Miami and Montgomery counties) ozone nonattainment areas in Ohio. EPA 
partially approved Ohio's Stage II program on October 20, 1994 (59 FR 
52911), including the program's legal authority and administrative 
requirements found in the Ohio Administrative Code (OAC) rules 3745-21-
09 (DDD)(1)-(4).
    As a result of EPA's May 16, 2012 determination that ORVR is in 
widespread nationwide use for control of gasoline emissions during 
refueling of vehicles at GDFs, Ohio EPA initiated a rulemaking process 
to revise its SIP to remove Stage II requirements for all facilities in 
the Cleveland, Cincinnati and Dayton areas. As part of that rulemaking 
process, an Ohio-specific analysis following EPA's recommended 
methodology was also completed. The analysis concluded that, starting 
in calendar year 2017, ORVR would be in widespread use in Ohio and that 
there would be no remaining emissions reduction benefit from Stage II 
requirements beyond the benefits from ORVR.
    On July 15, 2015, and February 29, 2016, the Ohio EPA submitted a 
SIP revision requesting EPA approval of amendments to OAC 3745-21-09 
(DDD) that removes Stage II requirements from the Ohio ozone SIP and 
allows GDFs currently implementing Stage II in the Cleveland, 
Cincinnati and Dayton areas to decommission their systems by 2017. To 
support the removal of the Stage II requirements, the revision included 
amended copies of OAC 3745-21-09 (DDD), as adopted on April 29, 2013, 
and January 17, 2014; a summary of Ohio-specific calculations based on 
EPA guidance used to calculate program benefits and demonstrate 
widespread use of ORVR in Ohio; and a section 110(l) demonstration that 
includes documentation that addresses the period, 2013-2017, when Stage 
II requirements were waived in Ohio but widespread use of ORVR has not 
yet occurred.

III. What is EPA's analysis of the state's submittal?

    EPA's primary consideration for determining the approvability of 
Ohio's request is whether this requested action complies with section 
110(l) of the CAA.\2\
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    \2\ CAA section 193 is not relevant because Ohio's Stage II rule 
was not included in the SIP before the 1990 CAA amendments.
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    Section 110(l) requires that a revision to the SIP not interfere 
with any applicable requirement concerning attainment and reasonable 
further progress (as defined in section 171), or any other applicable 
requirement of the Act. EPA evaluates each section 110(l) 
noninterference demonstration on a case-by-case basis considering the 
circumstances of each SIP revision. EPA interprets 110(l) as applying 
to all national ambient air quality standards (NAAQS) that are in 
effect, including those that have been promulgated but for which EPA 
has not yet made designations. The degree of the analysis focused on 
any particular NAAQS in a noninterference demonstration varies 
depending on the nature of the emissions associated with the proposed 
SIP revision.
    In its July 15, 2015, and February 29, 2016, SIP revision, the Ohio 
EPA used EPA's guidance to conduct a series of calculations to 
determine the potential impact of removing the Stage II program on air 
quality.\3\ Ohio EPA's analysis focused on VOC emissions because, as 
mentioned previously, Stage II requirements affect VOC emissions and 
because VOCs are a precursor for ground-level ozone formation.\4\
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    \3\ EPA, Guidance on Removing Stage II Gasoline Vapor Control 
Program from State Implementation Plans and Assessing Comparable 
Measure, EPA-457/B-12-001 (August 7, 2012), available at: http://www.epa.gov/groundlevelozone/pdfs/20120807guidance.pdf. This 
guidance document notes that ``the potential emission control losses 
from removing Stage II vapor recovery systems (VRS) are transitional 
and relatively small. ORVR-equipped vehicles will continue to phase 
in to the fleet over the coming years and will exceed 80 percent for 
all highway gasoline vehicles and 85 percent of all gasoline 
dispensed during 2015. As the number of these ORVE-equipped vehicles 
increase, the control of attributed to Stage II VRS will decrease 
even further, and the potential foregone Stage II VOC emission 
reductions are generally expected to be no more than one percent of 
the VOC inventory in the area.''
    \4\ Cleveland is currently designated nonattainment for the 2012 
Annual fine particulate matter (PM2.5) NAAQS. While VOC 
is one of the precursors for PM2.5 formation, a study 
(Journal of Environmental Engineering--Qualifying the sources of 
ozone, fine particulate matter, and regional haze in the 
Southeastern United States, June 24, 2009, available at: http://www.journals.elsevier.com/journal-ofenvironmental-management) 
indicates that in portions the Midwest (including portions of Ohio) 
where Stage II has been implemented, emissions of PM2.5 
and the precursor sulfur dioxide (SO2) are more 
significant to ambient PM2.5 concentrations than nitrogen 
oxides (NOx) and VOC. Specifically, PM2.5 sensitivities 
to anthropogenic VOC emissions are near zero for the entire region, 
including the Cincinnati region. This study also indicated that the 
impact of SO2 emission, especially from electric 
generating units, was most significant in the Cincinnati area due to 
SO2 emissions in the entire mid-west region (Wisconsin, 
Illinois, Indiana, Michigan, and Ohio). In fact, emissions from the 
mid-west had the largest effect in the Cleveland and Dayton areas. 
The technical analysis has met EPA's guidance and demonstrates 
anthropogenic VOCs are insignificant to the formation of 
PM2.5 in these areas. Currently, the Cleveland area is 
also designated nonattainment for sulfur dioxide (Lake Co.) and lead 
(Cuyahoga Co.) and those pollutants are not affected by the removal 
of Stage II requirements.
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    Ohio EPA has calculated that beginning in 2017, ORVR will be in 
widespread use in all three program areas and the absence of the Ohio 
Stage II program starting in 2017 would not result in a net VOC 
emissions increase compared to the continued utilization of this 
emissions control technology. The emission reduction losses resulting 
from removing Stage II before 2017 are transitional and relatively 
small since ORVR-equipped vehicles will continue to phase into the 
fleet over the coming years. Ohio EPA's calculation indicates a maximum 
potential loss of 1.858 tons per summer day (tpsd) in Cleveland, 0.914 
tpsd in Cincinnati, and 0.655 tpsd in Dayton from 2013 through 2016. In 
2013, the year with the highest level of emission increases, these 
summer day emissions increases are only 0.21 percent to 0.26 percent of 
the typical summer day VOC emissions rate in the three areas. These 
emissions increases

[[Page 42599]]

are insignificant with respect to the total summer day VOC emission 
rates of all sectors in these areas. Also it is important to note that 
the minimal emissions increase significantly decreases over the next 
two years (2014 and 2015) and becomes an emissions decrease in 2017 and 
all years thereafter.
    To help offset the initial emissions increases during the Stage II 
phase out period, Ohio EPA is requiring the installation of low 
permeation hoses at GDFs. Ohio EPA has calculated that low permeation 
hoses will provide 42.9 tons of VOC emission reductions each year 
during the ozone seasons (21.4 tons for Cleveland area, 13.6 tons for 
Cincinnati area, and 7.9 for Dayton area) starting in 2013. Table 1 
shows the increase of emissions associated with the phase out of State 
II systems at facilities in all program areas in Ohio starting in 2013, 
as well as offset emissions associated with the requirement of low 
permeation hoses at GDFs.

                                   Table 1--VOC Emissions During Ozone Season
                                                 [Tons per day]
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                                       2013            2014            2015            2016            2017
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                                                 Cleveland Area
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Stage II Phase-out..............           0.910           0.580           0.300           0.068          -0.116
Low Permeation Hoses............           -0.14           -0.14           -0.14           -0.14           -0.14
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Daily Total.....................            0.77            0.44            0.16          -0.072           -0.26
Typical Summer Day..............          367.17          367.17          367.17          367.17          367.17
% of Summer Day.................           0.21%           0.12%          0.043%         -0.019%          -0.26%
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                                                 Cincinnati Area
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Stage II Phase-out..............           0.440           0.284           0.151           0.039          -0.053
Low Permeation Hoses............          -0.089          -0.089          -0.089          -0.089          -0.089
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Daily Total.....................            0.35            0.20           0.062          -0.050           -0.14
Typical Summer Day..............          147.05          147.05          147.05          147.05          147.05
% of Summer Day.................           0.24%           0.13%          0.042%         -0.034%         -0.096%
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                                                   Dayton Area
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2013............................            2014            2015            2016            2017
Stage II Phase-out..............           0.310           0.201           0.110           0.034          -0.027
Low Permeation Hoses............          -0.052          -0.052          -0.052          -0.052          -0.052
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Daily Total.....................            0.26            0.15           0.058          -0.018          -0.079
Typical Summer Day..............           99.66           99.66           99.66           99.66           99.66
% of Summer Day.................           0.26%           0.15%          0.058%         -0.018%         -0.079%
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    As illustrated in Table 1, and documented in Ohio's SIP revision, 
for each year prior to the widespread use of ORVR in Ohio (2017) 
starting in 2013, the VOC emissions increase associated with the 
removal of Stage II systems is eventually offset by the VOC emission 
reductions attributed to ORVR being in widespread use in Ohio and the 
requirement of low permeation hoses at GDFs.
    EPA believes that the removal of the Ohio Stage II program does not 
interfere with Ohio's ability to demonstrate compliance with the 8-hour 
ozone NAAQS in all three areas. This is based on the use of permanent, 
enforceable, contemporaneous, surplus emissions reductions achieved 
through the requirement of low permeation hoses at GDFs, and the fact 
that the small emissions increase is both temporary and insignificant 
with respect to the total summer day emission rates for sectors in 
these areas.
    EPA also examined whether the removal of Stage II program 
requirements in all three areas will interfere with attainment of other 
air quality standards. All the counties in the Dayton area are 
designated attainment for all standards, including sulfur dioxide and 
nitrogen dioxide. Cincinnati is designated attainment for all standards 
other than ozone and sulfur dioxide. The Cleveland area is designated 
attainment for all standards other than ozone, lead (Cuyahoga Co.), 
sulfur dioxide (Lake Co.) and particulate matter (Cuyahoga and Lorain 
Counties). Based on Ohio EPA's 110(l) analysis, EPA has no reason to 
believe that the removal of the Stage II program in Ohio will cause the 
areas to become nonattainment for any of these pollutants. In addition, 
EPA believes that removing the Stage II program requirements in Ohio 
will not interfere with the areas' ability to meet any other CAA 
requirement.
    Based on the above discussion and the state's section 110(l) 
demonstration, EPA believes that removal of the Stage II program would 
not interfere with attainment or maintenance of any of the NAAQS in the 
Cleveland, Cincinnati, and Dayton areas and would not interfere with 
any other applicable requirement of the CAA, and thus, are approvable 
under CAA section 110(l).

IV. What action is EPA proposing to take?

    EPA is proposing to approve the revision to the Ohio ozone SIP 
submitted by Ohio EPA on July 15, 2015, and February 26, 2016, because 
we find that the revision meets all applicable requirements and it 
would not interfere with reasonable further progress or attainment of 
any of the NAAQS.

V. Incorporation by Reference

    In this rule, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference Ohio rule 3745-21-09 ``Control of emissions of volatile 
organic

[[Page 42600]]

compounds from stationary sources and perchloroethylene from dry 
cleaning facilities.'' effective January 17, 2014. EPA has made, and 
will continue to make, these documents generally available through 
www.regulations.gov and/or at the EPA Region 5 Office (please contact 
the person identified in the ``For Further Information Contact'' 
section of this preamble for more information).

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen oxides, Ozone, 
Volatile organic compounds.

    Dated: June 27, 2016.
Robert Kaplan,
Acting Regional Administrator, Region 5.
[FR Doc. 2016-15617 Filed 6-29-16; 8:45 am]
 BILLING CODE 6560-50-P
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