Document ID: EPA-HQ-OAR-2016-0175-0002
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2017-10-16T04:00Z

Results of EPA's Section 610 Review of the Final Rule for 
Mobile Source Air Toxics: Control of Hazardous Air Pollutants From Mobile Sources
                                       
                 EPA Office of Transportation and Air Quality
                                 November 2016

      On February 26, 2007, EPA published the final rulemaking "Control of Hazardous Air Pollutants From Mobile Sources" (72 FR 8428), hereinafter referred to as the "MSAT2" rule.  EPA promulgated this rule primarily to establish new controls on gasoline fuel, light-duty passenger vehicles, and portable fuel containers to reduce emissions of benzene and other mobile source air toxics.

       Pursuant to Section 610 of the Regulatory Flexibility Act (RFA), EPA has completed a review of the MSAT2 rule to determine whether the provisions that could affect small entities should be continued without change, or should be rescinded or amended to minimize adverse economic impacts on small entities.  As discussed below, we have concluded that no changes in the rule are warranted. 
 
 
 Background
       
      As EPA began to develop the rule, we formally evaluated the potential impacts of the program on small businesses according to the requirements of the Small Business Regulatory Enforcement Fairness Act (SBREFA), which is part of the Regulatory Flexibility Act.  During this process, we assessed the potential impact of the rule on the types of small entities that would be directly affected by the rule  -  gasoline fuel refiners, portable fuel container (gas can) manufacturers, and manufacturers in the light-duty vehicle industry (vehicle manufacturers including small volume manufacturers, independent commercial importers, and alternative fuel vehicle converters).  EPA determined that several companies in these categories met the Small Business Administration criteria of small entities, and we took the additional steps specified by SBREFA to identify and address concerns of these small entities.  A federal Interagency SBREFA Panel was convened to consider the available information from small entities and other sources.  The Panel made several recommendations for EPA to consider in the rule, and we proposed and took comment on these recommendations.  
      
      In the final rule, EPA generally adopted the major flexibilities and hardship relief provisions that were recommended by the Panel (72 FR 8528), finalizing special provisions to allow for: additional compliance lead time and hardship provisions (of up to an additional two years' of lead time) for light-duty vehicle manufacturers; additional compliance time and special averaging, banking, and trading (ABT) provisions for small gasoline refiners and importers, and hardship provisions for all gasoline refiners and importers; and additional lead time and certification provisions, as well as hardship provisions, for all gas can manufacturers.
      
      
Discussion of the Five Statutory Factors
      
      As discussed below, EPA has reviewed the 2007 MSAT2 final rule with respect to the five factors set forth in Section 610 of the RFA.  
      
      1.  Continued Need for the Rule
      
      One of the factors that must be considered in a Section 610 review is the continued need for the rule under review.  Air toxics can cause a variety of serious health effects, including cancer.  Mobile sources are projected to continue to be a significant contributor to emissions of air toxics (which are also known as hazardous air pollutants) across the country into the future, notwithstanding EPA rules finalized over the past two decades that have been, and will keep on, providing reductions in mobile source air toxics emissions.  In particular, benzene continues to be one of the most important drivers of national cancer risk from air toxics.  According to EPA's 2011 National Air Toxics Assessment, the entire country experiences an elevated cancer risk from benzene.  Although benzene emissions will be decreasing, EPA's projections indicate that cancer risk from benzene will continue to be of potential concern.  Estimates examining benzene emission trends at the time of the final rule indicated that mobile sources were responsible for about 60 percent of benzene emissions, and were expected to remain above 40 percent by 2020.  We predicted that the final fuel benzene standards and hydrocarbon standards for vehicles and portable fuel containers would together reduce total emissions of air toxics by 330,000 tons in 2030, including 61,000 tons of benzene.  We also predicted that, as a result of the MSAT2 final rule, in 2030: passenger vehicles would emit 45 percent less benzene, gas cans would emit almost 80 percent less benzene, and gasoline would contain 38 percent less benzene overall.
      
      Controlling emissions from light-duty highway vehicles, gasoline, and portable gasoline containers has had, and continues to have, important public health and welfare benefits.  The provisions of the rule applying to all gasoline fuel refiners, gas can manufacturers, and light-duty vehicle manufacturers and their related industries have proven to be feasible and effective.  EPA concludes that the rule continues to be necessary, feasible, and effective.
      
      2.  Nature of Complaints or Comments Received Concerning the Rule
      
      EPA received one comment during the public comment period for this Section 610 review, however this comment was outside the scope of the review.
	
      3.  Complexity of the Rule
      
      The Agency must also consider the complexity of the rule under review.  Although cost-effectively achieving the air pollution improvements of the program required us to establish a number of regulatory provisions, we carefully coordinated the various requirements and worked with industry participants, large and small, to facilitate implementation.  The rule also included a number of provisions aimed at easing the burden of compliance for all affected gasoline fuel refiners, gas can manufacturers, and light-duty vehicle manufacturers, independent commercial importers, and alternative fuel vehicle converters.  Further, we developed a Small Entity Compliance Guide following the publication of the final rule, which provided descriptions of the regulations and small entity provisions, Q&As, and other helpful compliance information.
      
      4.  Extent to which the rule overlaps, duplicates, or conflicts with other Federal, State, or local government rules
      
      The Agency must also consider the extent to which the rule overlaps, duplicates, or conflicts with other Federal, State, or local government rules.  As with previous vehicle regulations, we specifically designed the MSAT2 program vehicle requirements and phase-in schedule to build on the existing Federal programs and to mesh with and complement related programs in California and other states.  Similarly, we designed the phase-in for the gasoline benzene requirements and the small refiner provisions to transition smoothly and to coexist with earlier gasoline and diesel fuel requirements, so that refiners could integrate program implementation.  With regard to gas cans, the Consumer Products Safety Commission (CPSC) in response to the Poison Prevention Packaging Act, acted in support of ASTM F2517-05 "Determination of Child-Resistance for Portable Fuel Containers for Consumer Use" and EPA coordinated the MSAT2 gas can requirements with this action.  Subsequent to the 2007 MSAT2 rule, and in response to consumer notifications to EPA and CPSC identifying concerns related to the design of newer gas cans, EPA promulgated a rulemaking to clarify design options available to the industry (80 FR 9078, February 19, 2015).  At this time, we are not aware of any current overlap, duplication, or conflict with other similar programs administered by EPA or other agencies.
      
      
      5.  Relevant Changes to Technology, Economic Conditions, or Other Factors
      
      Finally, the Agency must consider the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule under review.  Refinery benzene reduction technology has continued to evolve over the past decade.  In addition, light-duty vehicle manufacturers have continuously improved their technologies, including emission-related technologies, over the years.  Lastly, improvements have been made to gas can manufacturing during this timeframe as well.  EPA does not believe that these changes, or the general economic fluctuations that these refining and manufacturing industries have faced, have introduced any significant additional burdens on small entities subject to this rule.
      
      
Conclusion
      
      Based on EPA's Section 610 review of the 2007 MSAT2 final rule, as discussed in this document, EPA is not making any amendments to the rule.  As part of any future rulemakings related to these industries, EPA will continue to work with small-entity representatives to minimize any potential unfavorable impacts on these companies while meeting the need for emission reductions.