[Federal Register Volume 82, Number 158 (Thursday, August 17, 2017)]
[Proposed Rules]
[Pages 39098-39101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17420]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2017-0146; FRL-9966-61-OAR]


Relaxation of the Federal Reid Vapor Pressure (RVP) Gasoline 
Volatility Standard for Shelby County (Memphis), Tennessee

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a request from Tennessee for EPA to relax the Federal Reid 
Vapor Pressure (RVP) standard applicable to gasoline introduced into 
commerce from June 1 to September 15 of each year for Shelby County, 
Tennessee (Memphis or Area). Specifically, EPA is proposing to amend 
the regulations to allow the RVP standard for Shelby County to change 
from 7.8 pounds per square inch (psi) to 9.0 psi for gasoline. EPA has 
preliminarily determined that this change to the Federal RVP regulation 
is consistent with the applicable provisions of the Clean Air Act 
(CAA).

DATES: Written comments must be received on or before September 18, 
2017 unless a public hearing is requested by September 1, 2017. If EPA 
receives such a request, we will publish information related to the 
timing and location of the hearing and a new deadline for public 
comment.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2017-0146, to the Federal eRulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or withdrawn. 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 disclosure of which is 
restricted by statute. If you need to include CBI as part of your 
comment, please visit https://www.epa.gov/dockets/commenting-epa-dockets for instructions. 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.
    For additional submission methods, the full EPA public comment 
policy, and general guidance on making effective comments, please visit 
https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: David Dickinson, Office of 
Transportation and Air Quality, Environmental Protection Agency, 1200 
Pennsylvania Avenue, Washington, DC 20460; telephone number: (202) 343-
9256; fax number: (202) 343-2804; email address: 
<a href="/cdn-cgi/l/email-protection#93f7faf0f8fafde0fcfdbdf7f2e5faf7d3f6e3f2bdf4fce5"><span class="__cf_email__" data-cfemail="7b1f1218101215081415551f1a0d121f3b1e0b1a551c140d">[email protected]</span></a>. You may also contact Rudolph Kapichak, Office 
of Transportation and Air Quality, Environmental Protection Agency, 
2000 Traverwood Drive, Ann Arbor, Michigan 48105; telephone number: 
(734) 214-4574; fax number: (734) 214-4052; email address: 
<a href="/cdn-cgi/l/email-protection#dfb4beafb6bcb7beb4f1adaabbb0b3afb79fbaafbef1b8b0a9"><span class="__cf_email__" data-cfemail="d8b3b9a8b1bbb0b9b3f6aaadbcb7b4a8b098bda8b9f6bfb7ae">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The contents of this preamble are listed in 
the following outline:

I. General Information
II. Public Participation
III. Background and Proposal
IV. Statutory and Executive Order Reviews
V. Legal Authority

I. General Information

A. Does this action apply to me?

    Entities potentially affected by this proposed rule are fuel 
producers and distributors involved in the supplying of gasoline to 
Shelby County, TN.

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       Examples of potentially regulated entities          NAICS 1 codes
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Petroleum refineries....................................          324110
Gasoline Marketers and Distributors.....................          424710
                                                                  424720
Gasoline Retail Stations................................          447110
Gasoline Transporters...................................          484220
                                                                  484230
------------------------------------------------------------------------
\1\ North American Industry Classification System.

    The above table is not intended to be exhaustive, but rather 
provides a guide for readers regarding entities likely to be

[[Page 39099]]

regulated by this action. The table lists the types of entities of 
which EPA is aware that potentially could be affected by this proposed 
rule. Other types of entities not listed on the table could also be 
affected. To determine whether your organization could be affected by 
this proposed rule, you should carefully examine the regulations in 40 
CFR 80.27. If you have questions regarding the applicability of this 
action to a particular entity, call the person listed in the FOR 
FURTHER INFORMATION CONTACT section of this preamble.

B. What is the Agency's authority for taking this action?

    The statutory authority for this action is granted to EPA by 
sections 211(h) and 301(a) of the CAA, as amended; 42 U.S.C. 7545(h) 
and 7601(a).

II. Public Participation

    EPA will not hold a public hearing on this matter unless a request 
is received by the person identified in the FOR FURTHER INFORMATION 
CONTACT section of this preamble by September 1, 2017. If EPA receives 
such a request, we will publish information related to the timing and 
location of the hearing and a new deadline for public comment.

III. Background and Proposal

A. Summary of the Proposal

    EPA is proposing to approve a request from Tennessee to change the 
summertime Federal RVP standard for Shelby County from 7.8 psi to 9.0 
psi by amending EPA's regulations at 40 CFR 80.27(a)(2). In a separate 
rulemaking, noted below, EPA has already approved a CAA section 110(l) 
non-interference demonstration which concludes that relaxing the 
Federal RVP requirement from 7.8 psi to 9.0 psi for gasoline sold from 
June 1 to September 15 of each year in Shelby County would not 
interfere with the maintenance of the ozone national ambient air 
quality standards (NAAQS) and the maintenance of the other NAAQS, or 
with any other applicable CAA requirement. When Tennessee previously 
requested that Shelby County be redesignated to attainment for the 2008 
ozone standard, Tennessee took a conservative approach for the 
maintenance plan demonstration by modeling 9.0 psi for the RVP 
requirements as opposed to 7.8 psi. Tennessee did not, at that time, 
request the relaxation of the Federal RVP requirements for Shelby 
County. More recently, Tennessee requested a relaxation of the Federal 
RVP requirements. This has necessitated a demonstration that relaxing 
the Federal RVP requirement from 7.8 psi to 9.0 psi for gasoline sold 
from June 1 to September 15 of each year in Shelby County would not 
interfere with maintenance of any NAAQS, including the 2008 and 2015 
ozone NAAQS, or any other applicable CAA requirement, under CAA section 
110(l). Therefore, by a subsequent rulemaking, EPA approved Tennessee's 
non-interference demonstration for its already approved maintenance 
plan for the 2008 ozone NAAQS.\2\
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    \2\ EPA approved the redesignation request and maintenance plan 
for the portion of Tennessee that is within the Memphis, Tennessee-
Mississippi-Arkansas (Memphis, TN-MS-AR) 2008 ozone nonattainment 
area on June 23, 2016 (81 FR 40816). EPA approved Tennessee's non-
interference demonstration on July 7, 2017 (82 FR 31462).
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    The preamble for this rulemaking is organized as follows: Section 
III.B. provides the history of the Federal gasoline volatility 
regulation. Section III.C. describes the policy regarding relaxation of 
gasoline volatility standards in ozone nonattainment areas that are 
redesignated as attainment areas. Section III.D. provides information 
specific to Tennessee's request for Shelby County.

B. History of the Gasoline Volatility Requirement

    On August 19, 1987 (52 FR 31274), EPA determined that gasoline 
nationwide was becoming increasingly volatile, causing an increase in 
evaporative emissions from gasoline-powered vehicles and equipment. 
Evaporative emissions from gasoline, referred to as volatile organic 
compounds (VOC), are precursors to the formation of tropospheric ozone 
and contribute to the nation's ground-level ozone problem. Exposure to 
ground-level ozone can reduce lung function, thereby aggravating asthma 
and other respiratory conditions, increase susceptibility to 
respiratory infection, and may contribute to premature death in people 
with heart and lung disease.
    The most common measure of fuel volatility that is useful in 
evaluating gasoline evaporative emissions is RVP. Under CAA section 
211(c), EPA promulgated regulations on March 22, 1989 (54 FR 11868) 
that set maximum limits for the RVP of gasoline sold during the 
regulatory control periods that were established on a state-by-state 
basis in that final rule. The regulatory control periods addressed the 
portion of the year when peak ozone concentrations were expected. These 
regulations constituted Phase I of a two-phase nationwide program, 
which was designed to reduce the volatility of gasoline during the high 
ozone season. On June 11, 1990 (55 FR 23658), EPA promulgated more 
stringent volatility controls as Phase II of the volatility control 
program. These requirements established maximum RVP standards of 9.0 
psi or 7.8 psi (depending on the state, the month, and the area's 
initial ozone attainment designation with respect to the 1-hour ozone 
NAAQS).
    The 1990 CAA Amendments established new CAA section 211(h) to 
address fuel volatility. CAA section 211(h) requires EPA to promulgate 
regulations making it unlawful to sell, offer for sale, dispense, 
supply, offer for supply, transport, or introduce into commerce 
gasoline with an RVP level in excess of 9.0 psi during the high ozone 
season. CAA section 211(h) also prohibits EPA from establishing a 
volatility standard more stringent than 9.0 psi in an attainment area, 
except that EPA may impose a lower (more stringent) standard in any 
former ozone nonattainment area redesignated to attainment.
    On December 12, 1991 (56 FR 64704), EPA modified the Phase II 
volatility regulations to be consistent with CAA section 211(h). The 
modified regulations prohibited the sale of gasoline with an RVP above 
9.0 psi in all areas designated attainment for ozone, effective January 
13, 1992. For areas designated as nonattainment, the regulations 
retained the original Phase II standards published on June 11, 1990 (55 
FR 23658), which included the 7.8 psi ozone season limitation for 
certain areas. As stated in the preamble to the Phase II volatility 
controls and reiterated in the proposed change to the volatility 
standards published in 1991, EPA will rely on states to initiate 
changes to their respective volatility programs. EPA's policy for 
approving such changes is described below in Section III.C.

C. Relaxation of Gasoline Volatility Standards in Ozone Nonattainment 
Areas That Are Redesignated to Attainment

    As stated in the preamble for EPA's amended Phase II volatility 
standards (56 FR 64706), any change in the gasoline volatility standard 
for a nonattainment area that was subsequently redesignated as an 
attainment area must be accomplished through a separate rulemaking that 
revises the applicable standard for that area. Thus, for former 1-hour 
ozone nonattainment areas where EPA mandated a Phase II volatility 
standard of 7.8 psi RVP in the December 12, 1991 rulemaking, the 
federal 7.8 psi gasoline RVP requirement remains in effect, even after 
such an area is redesignated to

[[Page 39100]]

attainment, until a separate rulemaking is completed that relaxes the 
Federal gasoline RVP standard in that area from 7.8 psi to 9.0 psi.
    As explained in the December 12, 1991 rulemaking, EPA believes that 
relaxation of an applicable gasoline RVP standard is best accomplished 
in conjunction with the redesignation process. In order for an ozone 
nonattainment area to be redesignated as an attainment area, CAA 
section 107(d)(3) requires the state to make a showing, pursuant to CAA 
section 175A, that the area is capable of maintaining attainment for 
the ozone NAAQS for ten years. Depending on the area's circumstances, 
this maintenance plan will either demonstrate that the area is capable 
of maintaining attainment for ten years without the more stringent 
volatility standard or that the more stringent volatility standard may 
be necessary for the area to maintain its attainment with the ozone 
NAAQS. Therefore, in the context of a request for redesignation, EPA 
will not relax the gasoline volatility standard unless the state 
requests a relaxation and the maintenance plan demonstrates that the 
area will maintain attainment for ten years without the need for the 
more stringent volatility standard. Similarly, a maintenance plan may 
be revised to relax the gasoline volatility standard if the state 
requests a relaxation and the maintenance plan demonstrates that the 
area will maintain attainment for the duration of the maintenance plan.

D. Tennessee's Request To Relax the Federal Gasoline RVP Requirement 
for Shelby County

    On April 12, 2017, Tennessee, through the Tennessee Department of 
Environment and Conservation (TDEC or State), submitted a request to 
relax the Federal gasoline RVP requirement in Shelby County. The State 
also submitted a CAA section 110(l) non-interference demonstration for 
approval by EPA. The non-interference demonstration shows that the 
relaxation would not interfere with maintenance of the 2008 ozone NAAQS 
or any other applicable CAA requirement including the 2015 ozone NAAQS. 
Tennessee did not request relaxation of the Federal RVP standard from 
7.8 psi to 9.0 psi when TDEC originally submitted the CAA section 175A 
maintenance plan for the 2008 ozone NAAQS that was approved on June 23, 
2016 (81 FR 40816).
    On July 7, 2017, EPA approved Tennessee's April 12, 2017 request 
for approval of the CAA section 110(l) non-interference demonstration. 
In that rulemaking, EPA included an evaluation of Tennessee's CAA 
section 110(l) non-interference demonstration for Shelby County.\3\
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    \3\ 82 FR 31462 (July 7, 2017).
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    In this action, EPA is proposing to approve Tennessee's request to 
relax the summertime ozone season gasoline RVP standard for Shelby 
County from 7.8 psi to 9.0 psi. Specifically, EPA is proposing to amend 
the applicable gasoline RVP standard to allow the gasoline RVP 
requirements at 40 CFR 80.27(a)(2) for Shelby County to change from 7.8 
psi to 9.0 psi. This proposal is based on EPA's separate approval of 
Tennessee's April 12, 2017 request for a non-interference demonstration 
approval and EPA's June 23, 2016 approval of the redesignation request 
and maintenance plan for the 2008 ozone NAAQS as described above.

IV. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and 
therefore was not submitted to the Office of Management and Budget 
(OMB) for review.

B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs

    This action is not expected to be an Executive Order 13771 
regulatory action because this action is not significant under 
Executive Order 12866.

C. Paperwork Reduction Act

    This action does not impose any new information collection burden 
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq., and therefore is not subject to these requirements.

D. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. The small entities subject to the 
requirements of this action are refiners, importers or blenders of 
gasoline that choose to produce or import low RVP gasoline for sale in 
Tennessee, and gasoline distributers and retail stations in Tennessee. 
This action, if finalized, would relax the Federal RVP standard for 
gasoline sold in Shelby County, Tennessee during the summertime ozone 
season (June 1 to September 15 of each year) to allow the RVP for 
gasoline sold in this county to rise from 7.8 psi to 9.0 psi. This rule 
does not impose any requirements or create impacts on small entities 
beyond those, if any, already required by or resulting from the CAA 
section 211(h) Volatility Control program. Therefore, this action would 
have no net regulatory burden for all directly regulated small 
entities.

E. Unfunded Mandates Reform Act (UMRA)

    This proposed rule does not contain an unfunded mandate of $100 
million or more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action would 
implement mandates that are specifically and explicitly set forth in 
CAA section 211(h) without the exercise of any policy discretion by 
EPA.

F. Executive Order 13132: Federalism

    This action does not have federalism implications. It would not 
have substantial direct effects on the states, on the relationship 
between the national government and the states, or on the distribution 
of power and responsibilities among the various levels of government.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). This proposed 
rule would affect only those refiners, importers or blenders of 
gasoline that choose to produce or import low RVP gasoline for sale in 
Shelby County and gasoline distributers and retail stations in the 
Area. Thus, Executive Order 13175 does not apply to this action.

H. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that EPA has reason to believe may disproportionately affect children, 
per the definition of ``covered regulatory action'' in section 2-202 of 
the

[[Page 39101]]

Executive Order. EPA has no reason to believe that this action may 
disproportionately affect children since Tennessee has provided 
evidence that a relaxation of the gasoline RVP will not interfere with 
its attainment of the ozone NAAQS for Shelby County, or any other 
applicable CAA requirement. By separate action, EPA has approved 
Tennessee's non-interference demonstration regarding its maintenance 
plan for the 2008 ozone NAAQS, and that Tennessee's relaxation of the 
gasoline RVP standard in Shelby County to 9.0 RVP will not interfere 
with any other NAAQS or CAA requirement.

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 because it is 
not a significant regulatory action under Executive Order 12866.

J. National Technology Transfer Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

K. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    EPA believes the human health or environmental risk addressed by 
this action would not have potential disproportionately high and 
adverse human health or environmental effects on minority, low-income 
or indigenous populations because it does not affect the applicable 
ozone NAAQS which establish the level of protection provided to human 
health or the environment. This rule would relax the applicable 
volatility standard of gasoline during the summer, possibly resulting 
in slightly higher mobile source emissions. However, Tennessee has 
demonstrated in its non-interference demonstration that this action 
will not interfere with maintenance of the ozone NAAQS in Shelby County 
for the 2008 ozone NAAQS, or with any other applicable requirement of 
the CAA. Therefore, disproportionately high and adverse human health or 
environmental effects on minority or low-income populations are not an 
anticipated result. The results of this evaluation are contained in 
EPA's proposed and final rules for Tennessee's non-interference 
demonstration. A copy of Tennessee's April 12, 2017 letter requesting 
that EPA relax the gasoline RVP standard, including the technical 
analysis demonstrating that the less stringent gasoline RVP would not 
interfere with continued maintenance of the 2008 ozone NAAQS in Shelby 
County, or with any other applicable CAA requirement, has been placed 
in the public docket for this action.

V. Legal Authority

    The statutory authority for this action is granted to EPA by 
sections 211(h) and 301(a) of the Clean Air Act, as amended; 42 U.S.C. 
7545(h) and 7601(a).

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedures, 
Air pollution control, Fuel additives, Gasoline, Motor vehicle and 
motor vehicle engines, Motor vehicle pollution, Penalties, Reporting 
and recordkeeping requirements.

    Dated: August 11, 2017.
E. Scott Pruitt,
Administrator.
[FR Doc. 2017-17420 Filed 8-16-17; 8:45 am]
 BILLING CODE 6560-50-P


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