[Federal Register Volume 61, Number 90 (Wednesday, May 8, 1996)]
[Rules and Regulations]
[Pages 20736-20738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11331]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80

[FRL-5501-3]


Adjustment of Reid Vapor Pressure Lower Limit for Reformulated 
Gasoline Sold in the State of California

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is amending the lower limit of the valid range for Reid 
Vapor Pressure (RVP) for reformulated gasoline certified under the 
simple model and sold in the State of California. The lower limit is 
being changed from 6.6 pounds per square inch (psi) to 6.4 psi. EPA is 
taking this action because the Agency believes that it will result in 
no negative environmental impact and, for reasons discussed below, the 
Agency believes it is proper in the limited case of California 
gasoline.
    In the proposed rules section of today's Federal Register, EPA is 
proposing the same action covered by this direct final rule (i.e., to 
amend the lower limit of the valid range for RVP for reformulated 
gasoline certified under the simple model and sold in the State of 
California from 6.6 to 6.4 psi). If adverse comment or a request for a 
public hearing is received on this direct final rule, EPA will withdraw 
the direct final rule and address the comments received in a subsequent 
final rule on the related proposed rule. No additional opportunity for 
public comment on this change to the lower limit of the simple model's 
valid range for RVP will be provided.

DATES: This action will become effective on July 8, 1996, unless notice 
is received by June 7, 1996 from someone who wishes to submit adverse 
comment or requests an opportunity for a public hearing. If such notice 
is received, EPA will withdraw this direct final rule, and a timely 
notice will be published in the Federal Register to indicate the 
withdrawal.

ADDRESSES: All documents relevant to this direct final rulemaking have 
been placed in public docket number A-96-14. The public docket may be 
inspected at U.S. Environmental Protection Agency, Air Docket Section, 
401 M Street, SW, Room M-1500, Washington, D.C. 20460. Documents may be 
inspected between the hours of 8:00 a.m. and 5:30 p.m., Monday through 
Friday. A reasonable fee may be charged for copying docket materials.

FOR FURTHER INFORMATION CONTACT: Anne-Marie C. Pastorkovich, U.S. 
Environmental Protection Agency, Office of Air and Radiation, (202) 
233-9013.

SUPPLEMENTARY INFORMATION:

I. Regulated Entities

    Regulated categories and entities potentially affected by this 
action include:

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             Category                  Examples of regulated entities   
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Industry..........................  Refiners of California gasoline.    
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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 be potentially regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your entity is regulated by this action, you should carefully examine 
section 80.42 (c)(1), note (1), of today's regulatory action. You 
should also carefully examine the existing provisions at 40 CFR section 
80.81, dealing specifically with California gasoline.

II. Introduction

A. Reformulated Gasoline Standards and California Covered Areas

    Section 211(k) of the Clean Air Act (the Act) requires EPA to 
establish standards for reformulated gasoline to be used in specified 
ozone nonattainment areas (covered areas), as well as standards for 
non-reformulated, or conventional, gasoline used in the rest of the 
country, beginning in January, 1995. The reformulated gasoline covered 
areas in California are Los Angeles and San Diego, and, beginning June 
1, 1996, Sacramento, as a result of its redesignation as a Severe ozone 
nonattainment area. The Act requires that reformulated gasoline reduce 
VOC and toxics emissions from motor vehicles, not increase NO<INF>X

[[Page 20737]]

emissions, and meet certain content standards for oxygen, benzene and 
heavy metals. The Administrator signed the final reformulated gasoline 
regulations on December 15, 1993 and they were published in the Federal 
Register on February 14, 1994.\1\
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    \1\ 59 FR 7812 (February 16, 1994).
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B. Specific Exemptions Related to California Gasoline

    During the federal reformulated gasoline rulemaking, and in 
response to comments by California refiners, EPA concluded (1) that VOC 
and toxics emission reductions resulting from the California Phase 2 
standards would be equal to or more stringent than the federal 
reformulated gasoline standards, (2) that the content standards for 
oxygen and benzene under California Phase 2 would in practice be 
equivalent to the federal content standards, and (3) that the 
California Air Resources Board's (CARB's) compliance and enforcement 
program is designed to be sufficiently rigorous. As a result, 40 CFR 
Sec. 80.81 of the reformulated gasoline regulations exempts certain 
refiners of California Phase 2 gasoline from a number of federal 
reformulated gasoline provisions intended to demonstrate compliance 
with the federal standards. While the federal reformulated gasoline and 
conventional gasoline standards continue to apply in California, 
refiners of gasoline sold in California are exempt in most cases from 
various enforcement-related provisions. California refiners are not 
exempt from these federal enforcement requirements with regard to 
gasoline that is delivered for use outside California, because the 
California Phase 2 standards and the CARB enforcement program do not 
cover gasoline exported from California.

C. Reid Vapor Pressure Simple Model Lower Limit

    The federal reformulated gasoline program includes limitations on 
Reid vapor pressure (RVP) of reformulated gasoline certified using the 
simple model. The maximum RVP simple model standards are given in 40 
CFR section 80.41 (a) and (b), relating to per-gallon and averaged 
standards, respectively. Maximum RVP is controlled because of the 
increased VOC emissions that result from gasoline with higher RVP 
levels.
    The minimum RVP of reformulated gasoline certified under the simple 
model is set by the lower end of the valid range as specified in 40 CFR 
Sec. 80.42(c)(1). The nationwide lower limit for RVP for reformulated 
gasoline certified under the simple model is 6.6 psi, although under 40 
CFR Sec. 80.45(f)(1) this minimum RVP limit changes to 6.4 psi, under 
the complex model, beginning in 1998.
    There are several reasons why the simple and complex models have 
different lower limits for the RVP range (for the simple model, 6.6 
psi, and for the complex model, 6.4 psi). The simple model and complex 
model are two completely different models, developed at different times 
from different data sets and relying upon different modeling 
assumptions and approaches. The complex model, which was developed 
after the simple model, incorporates many more data points.
    The low end of the valid ranges for RVP in the simple model and the 
complex model (i.e. 6.6 psi and 6.4 psi, respectively) were based upon 
the distribution of data used in the model's development. Both the 
simple model and the complex model are linear with respect to RVP for 
all pollutants.\2\ Thus, any relationship of RVP to pollutants can be 
extended linearly from 6.6 psi to 6.4 psi with confidence. (As is 
explained elsewhere in this notice, the Agency is proposing to lower 
the minimum RVP for simple model reformulated gasoline in California 
from 6.6 to 6.4 psi.)
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    \2\ See 59 FR 36944 (July 20, 1994).
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    After promulgation of the final reformulated gasoline and anti-
dumping rule, some refiners suggested that EPA reduce the RVP lower 
limit for the simple model to 6.4 psi nationwide. The reasons for their 
request were (1) to provide flexibility for refiners, (2) consistency 
with the complex model, which has a 6.4 psi lower limit for RVP, and 
(3) to facilitate the certification and use of California Phase 2 
gasoline. EPA agreed with these reasons and issued a direct final rule 
which included this change.\3\ EPA later withdrew the change and 
published notice of the withdrawal in the Federal Register \4\ because 
adverse comment was received from the American Automobile Manufacturers 
Association (AAMA). AAMA, representing automakers, cited concerns about 
driveability from lower RVP gasoline if RVP was reduced nationwide.
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    \3\ See note 2.
    \4\ 60 FR 6030 (February 1, 1995).
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III. Revision to the RVP Range Under the Simple Model

    The Western States Petroleum Association (WSPA) has requested, on 
behalf of gasoline refiners in California, that EPA modify the minimum 
Reid Vapor Pressure (RVP) allowable under the simple model for 
reformulated gasoline sold in California. In an August 3, 1995 letter 
to Ms. Mary Nichols, Assistant Administrator for Air and Radiation, 
WSPA asserted that it believes that there are certain constraints on 
refiners that exist as a result of the need to comply with both the 
federal reformulated gasoline program and the California Phase 2 
reformulated gasoline program scheduled to begin on March 1, 1996.\5\
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    \5\ All correspondence related to this rulemaking may be 
examined at the public docket at the location listed in the 
``ADDRESSES'' section of this notice.
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    Specifically, the California Phase 2 program sets a maximum 
summertime volatility standard of 7.0 psi. During the summer, 
California refiners currently must meet an RVP lower limit of 6.6 psi 
minimum for areas subject to the federal reformulated gasoline 
standards (i.e., the lower limit of the federal simple model range) and 
7.0 psi maximum (i.e., the California RVP maximum standard). This is a 
``tighter'' operational range than producers of reformulated gasoline 
outside of California are required to operate within.\6\ WSPA has 
requested that EPA change the lower limit RVP value for reformulated 
gasoline to 6.4 psi in California to allow necessary operating 
flexibility and the American Automobile Manufacturers Association 
(AAMA) has indicated in a letter to EPA\7\ that they agree to this 
change in the case of California gasoline. As discussed above, AAMA had 
objected to a nationwide change to 6.4 psi lower limit in 1994. More 
recently, these automakers revised their view with regard to gasoline 
used in California, and now do not object to changing the RVP minimum 
value to 6.4 psi in the limited case of California Phase 2 gasoline, as 
expressed in a letter to EPA dated December 7, 1995.\8\ Specifically, 
automakers do not expect driveability index concerns with California 
Phase 2 gasoline with RVP values as low as 6.4 psi, as a result of 
other controls on certain distillation parameters under the California 
program. These additional distillation parameters are T50 and T90, the 
temperature at which 50 percent and 90 percent, respectively, of a 
liquid are

[[Page 20738]]

evaporated. EPA believes that changing the federal summertime minimum 
RVP standard to 6.4 psi in California will permit necessary flexibility 
for producers, is supportable as a reasonable extension of the model 
based on consistency with the complex model, will result in no 
environmental harm, and will not adversely affect automotive 
driveability.
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    \6\ For federal reformulated gasoline program compliance on a 
per-gallon basis, the simple model maximum standards for RVP are 
<ls-thn-eq> 7.2 psi in VOC Control Region I and <ls-thn-eq> 8.1 psi 
for VOC Control Region II. For average compliance under the federal 
reformulated gasoline program, the simple model per gallon maximum 
RVP for VOC controlled federal gasoline, by comparison, is 
<ls-thn-eq>7.4 psi for VOC Control Region I and <ls-thn-eq>8.3 psi 
for VOC Control Region II and, on average, <ls-thn-eq> 7.1 psi and 
<ls-thn-eq> 8.0 psi, for VOC Control Regions I and II, respectively. 
See 40 CFR section 80.41 (a) and (b) and the discussion under II(c) 
of this notice, above.
    \7\ See note 5, above.
    \8\ See note 5, above.
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IV. Environmental Impact

    This rule is expected to have no negative environmental impact. 
Applicable controls on maximum volatility during the VOC control period 
are not affected by this rule. If anything, this revision will make it 
more feasible to produce lower limit RVP gasoline, which produces fewer 
motor vehicle VOC emissions.

V. Economic Impact

    The Regulatory Flexibility Act, 5 U.S.C. 601-612, requires that 
Federal Agencies examine the impacts of their regulations on small 
entities. The act requires an Agency to prepare a regulatory 
flexibility analysis in conjunction with notice and comment rulemaking, 
unless the Agency head certifies that the rule will not have a 
significant impact on a substantial number of small entities. 5 U.S.C. 
605(b). The Administrator certifies that this rule will not have a 
significant impact on a substantial number of small entities. This rule 
is not expected to result in any additional compliance cost to 
regulated parties and may be expected to reduce compliance cost.

VI. Effective Date

    This action will become effective July 8, 1996. If notice of 
adverse comment is received, EPA will withdraw this final rule, and a 
timely notice will be published in the Federal Register. See ``DATES'' 
section, above.

VII. Executive Order 12866

    Under Executive Order 12866, \9\ 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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    \9\ 58 FR 51736 (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.\10\
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    \10\ Id. at section 3(f) (1)-(4).
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    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.

VIII. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``UMRA''), P.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. 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 the final rule promulgated today does not 
include a federal mandate as defined in UMRA. The rule 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, Gasoline, 
Reformulated gasoline, Motor vehicle pollution.

    Dated: May 1, 1996.
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: Sections 114, 211 and 301(a) of the Clean Air Act as 
amended (42 U.S.C. 7414, 7545, and 7601(a)).

    2. Section 80.42 is amended by revising the table in paragraph 
(c)(1) to read as follows:


Sec. 80.42  Simple emissions model.

* * * * *
    (c) * * *
    (1) * * *

------------------------------------------------------------------------
             Fuel parameter                           Range             
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Benzene content........................  0.0-4.9 vol %.                 
RVP....................................  6.6-9.0 psi.\1\                
Oxygenate content......................  0-4.0 wt %.                    
Aromatics content......................  0-55 vol %.                    
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\1\ For gasoline sold in California, the applicable RVP range shall be  
  6.4-9.0 psi.                                                          

* * * * *
[FR Doc. 96-11331 Filed 5-7-96; 8:45 am]
BILLING CODE 6560-50-P