Approval of Colorado's Petition to Relax the Federal Gasoline Reid Vapor Pressure Volatility Standard for 1998, 1999, and 2000

Related Material

Other Related Documents

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: June 10, 1998 (Volume 63, Number 111)]
[Rules and Regulations]
[Page 31627-31631]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn98-24]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[FRL-6106-6]

Approval of Colorado's Petition to Relax the Federal Gasoline
Reid Vapor Pressure Volatility Standard for 1998, 1999, and 2000

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA or the Agency) is
approving the State of Colorado's January 21, 1998, petition to relax
the Reid Vapor Pressure (RVP) standard that applies to gasoline
introduced into commerce in the Denver-Boulder area from June 1 to
September 15. The standard is relaxed from 7.8 pounds per square inches
(psi) to 9.0 psi for the years 1998, 1999, and 2000. This action is
being taken under section 211(h)(1) of the Clean Air Act as Amended in
1990 (CAA) to modify EPA's gasoline volatility regulations promulgated
June 11, 1990 and modified December 12, 1991. The Agency does not
believe that this action will cause environmental harm to Denver-
Boulder's residents. The area has been in compliance with the ozone
standard since 1987. The Denver-Boulder area's gasoline has had a 9.0
psi

[[Page 31628]]

standard since 1992. In addition to today's approval, EPA has approved
relaxations of Denver-Boulder's RVP standard from 7.8 psi to 9.0 psi
for the past six years, from 1992 through 1997.

DATES: This rule is effective on July 27, 1998 without further
notification unless the Agency receives relevant comments by July 10,
1998. Should the Agency receive such comments, it will publish a timely
withdrawal of the rule in the Federal Register.

ADDRESSES: Materials relevant to this rulemaking have been placed in
Docket A-98-04 by EPA. The docket is located at the Docket Office of
the U.S. Environmental Protection Agency, 401 M Street, SW, Washington,
DC 20460, Room M-1500 in Waterside Mall and may be inspected from 8:30
a.m. to 5:30 p.m., Monday through Friday. A duplicate public docket CO-
RVP-98 has been established at U. S. EPA Region VIII, 999 18th Street,
Suite 500, Denver, CO, 80202-2466, and is available for inspection
during normal working hours. Interested persons wishing to examine the
documents in this docket should make an appointment with the
appropriate contact at least 24 hours before the visiting day. Contact
Scott P. Lee at (303) 312-6736. As provided in 40 CFR part 2, a
reasonable fee may be charged for copying docket material. Comments
should be submitted (in duplicate if possible) to the two dockets
listed above at the above addresses.
A copy should also be sent to the EPA contact person listed below
at the following address: U.S. Environmental Protection Agency, Office
of Air and Radiation, 401 M Street, SW (6406-J), Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Marilyn Winstead McCall of the Fuels
and Energy Division at 202-564-9029 at the above address.

SUPPLEMENTARY INFORMATION:

I. Background

A. Regulated Entities

Entities potentially affected by this action are those involved
with the production, distribution, and sale of conventional gasoline
that is supplied and consumed in the Denver-Boulder, Colorado area.
Regulated categories include:

------------------------------------------------------------------------
Category Examples of regulated entities
------------------------------------------------------------------------
Industry..................... Gasoline refiners and importers, gasoline
terminals, gasoline truckers, gasoline
retailers and wholesale purchaser-
consumers.
------------------------------------------------------------------------

B. Regulatory History of Gasoline Volatility

In 1987, EPA determined that gasoline had become increasingly
volatile, causing an increase in evaporative emissions from gasoline-
powered sources. These emissions from gasoline, referred to as volatile
organic compounds (VOCs), are precursors for ozone and are a major
contributor to the nation's serious ground-level ozone problem. Ground-
level ozone causes health problems, including damaged lung tissue,
reduced lung function, and lungs that are sensitized to other
pollutants.
Under authority in section 211(c)(4) of the Clean Air Act (as
Amended in 1977), EPA promulgated regulations on March 22, 1989 that,
beginning in 1989, set maximum volatility levels for gasoline sold
during the summer ozone control season. These regulations were referred
to as Phase I of a two-phase nationwide 1 program, which was
designed to reduce the volatility of commercial gasoline during the
summer high ozone season 2 by setting maximum RVP standards.
On June 11, 1990, EPA promulgated more stringent volatility controls
for Phase II.3 The requirements established maximum
volatility standards of 9.0 psi and 7.8 psi (depending upon the state
and the month, and the area's ozone attainment status) during the ozone
control season.
---------------------------------------------------------------------------

\1\ Hawaii, Alaska and U. S. territories were excepted.
\2\ For more details, see 54 FR, 11868 (March 22, 1989).
\3\ For more details, see 55 FR 23658 (June 11, 1990).
---------------------------------------------------------------------------

The 1990 CAA Amendments established a new section 211(h) to address
fuel volatility. 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. It further
requires EPA to establish more stringent RVP standards in nonattainment
areas if EPA finds such standards ``necessary to generally achieve
comparable evaporative emissions (on a per vehicle basis) in
nonattainment areas, taking into consideration the enforceability of
such standards, the need of an area for emission control, and economic
factors.'' Section 211(h) bans EPA from establishing a volatility
standard more stringent than 9.0 psi in an attainment area, except that
EPA may impose a lower standard in any former ozone nonattainment area
redesignated to attainment.
On December 12, 1991, EPA promulgated regulations to modify the
Phase II volatility regulations 4 pursuant to section
211(h). The modified regulations prohibited the sale of gasoline with
an RVP above 9.0 psi during the summer ozone season in all areas
designated attainment for ozone, beginning in 1992. Areas designated as
nonattainment retained the original Phase II standards published on
June 11, 1990.
---------------------------------------------------------------------------

\4\ For more details, see 56 FR 64704 (December 12, 1991).
---------------------------------------------------------------------------

As stated in the preamble for the Phase II volatility controls
5 and reiterated in the proposed change to the volatility
standards published on May 29, 1991,6 EPA will rely on
states to initiate changes to the EPA volatility program that they
believe will enhance local air quality and/or increase the economic
efficiency of the program, within the statutory limits. The Governor of
a state may petition EPA to set a less stringent volatility standard
for some month or months in a nonattainment area. The petition must
demonstrate the existence of a particular local economic impact that
makes such changes appropriate and must demonstrate that sufficient
alternative programs are available to achieve attainment and
maintenance of the ozone National Ambient Air Quality Standard (NAAQS).
---------------------------------------------------------------------------

\5\ The Phase II final rulemaking discussed procedures by which
states could petition EPA for more or less stringent volatility
standards. 55 FR at 23660 (June 11, 1990).
\6\ 56 FR 24242 (May 29, 1991).
---------------------------------------------------------------------------

C. Colorado's Petition

On January 21, 1998, Governor Roy Romer sent a letter to William
Yellowtail, EPA Regional Administrator for Region VIII, requesting EPA
to waive the federal RVP standard for the Denver-Boulder area. The
specific change requested was to ``retain the 9.0 psi Reid Vapor
Pressure standard for gasoline volatility in the Denver-Boulder area
for the summers of 1998 and 1999.'' (Denver-Boulder has received
waivers of

[[Page 31629]]

the 7.8 psi RVP standard since 1992.) The Governor further stated that
this waiver should only be necessary until EPA acts on the submittal of
the ozone maintenance plan for the area or takes an alternative action
regarding the implementation of the new standard for ozone. The request
was based on discussions and reviews held in November 1997, by the
Colorado Air Quality Control Commission (AQCC) of the environmental and
economic impacts of the 7.8 psi standard. On December 10, 1997, the
AQCC issued a resolution which recommended that the Governor submit a
petition to EPA to request EPA to waive the 7.8 psi standard and
replace it with a 9.0 psi standard.

D. History of Denver-Boulder Ozone Attainment Status Prior to
Establishment of New NAAQS for Ozone

On November 6, 1991, the Denver-Boulder metropolitan area was
designated nonattainment for the ozone NAAQS (see 56 FR 56694 (November
6, 1991)). The nonattainment area encompasses Denver's entire six-
county Consolidated Metropolitan Statistical Area, with the exception
of Rocky Mountain National Park in Boulder County and the eastern
portions of Adams and Arapahoe Counties.
Under the Phase II rule promulgated on December 12, 1991, the
standard applicable in the Denver-Boulder nonattainment area beginning
in 1992 was 9.0 psi in May and 7.8 psi from June 1 to September 15. The
standard applicable in other areas of Colorado was 9.0 psi from May 1
to September 15.
On November 6, 1991, EPA issued ozone nonattainment designations
pursuant to section 107(d)(1)(C) of the Act (56 FR 56694). In that
notice, EPA designated the Denver-Boulder area as a nonattainment area
and classified it as a ``transitional area'' as determined under
section 185A of the CAA. Section 185A defines a transitional area as
``an area designated as an ozone nonattainment area as of the date of
enactment of the Clean Air Act Amendments of 1990 [that] has not
violated the national primary ambient air quality standard for ozone
for the 36-month period commencing on January 1, 1987, and ending on
December 31, 1989.'' In fact, according to monitoring data, the Denver-
Boulder area attained and has continued to maintain the 0.12 parts per
million (ppm) 1-hour standard since 1987.

E. Establishment of the New NAAQS for Ozone and Denver-Boulder's
Current Attainment Status

On July 18, 1997, EPA promulgated a new 8-hour ozone standard of
0.08 ppm effective September 16, 1997 (see 62 FR 38856). EPA indicated
in its December 29, 1997, guidance memorandum entitled ``Guidance for
Implementing the 1-Hour Ozone and Pre-Existing PM ₁₀ NAAQS''
that designations for areas regarding the new 8-hour ozone NAAQS would
take place in the future. EPA currently plans to designate areas as
nonattainment for the new 8-hour ozone standard by July 2000, based on
the most recently available three years of air quality data at that
time (e.g., 1997, 1998, and 1999). Therefore, EPA is granting
Colorado's request to relax the 7.8 psi standard until the year 2000.
Taking into account Denver-Boulder's ozone attainment status for the
new 8-hour standard, EPA will make a determination at that time as to
which volatility standard will apply to the Denver-Boulder area.

F. Previous Petitions for Waivers of the 7.8 psi RVP Standard Granted
by EPA

In separate rulemakings, EPA previously granted petitions by the
Governor of Colorado for a relaxation of the Federal RVP volatility
standard for the Denver-Boulder area for the years 1992 and
1993,7 for the years 1994 and 1995,8 and for the
years 1996 and 1997.9 For in-depth discussions of these
actions, please refer to the Federal Register notices.
---------------------------------------------------------------------------

\7\ For more details, see 53 FR 26067 (April 30, 1993).
\8\ For more details, see 59 FR 15629 (April 4, 1994).
\9\ For more details, see 61 FR 16391 (April 15, 1996).
---------------------------------------------------------------------------

In summary, EPA granted these petitions to relax the 7.8 psi
standard based on evidence presented to EPA by Colorado that showed
economic hardship to consumers and industry if the 7.8 psi standard
were retained. Evidence also demonstrated that the 7.8 psi standard was
not necessary given the area's record of continued attainment of the
0.12 ppm 1-hour ozone standard.

G. Justification for Granting Colorado's Petition to Waive the 7.8 psi
RVP Standard for 1998, 1999, and 2000

The Denver-Boulder area has attained the 1-hour ozone standard and
EPA has proposed to revoke that standard for the area (see Notice of
Proposed Rulemaking, 63 FR 2804, January 16, 1998). Ambient air quality
data archived in EPA's national data base--Aerometric Information and
Retrieval System (AIRS)--show continuous attainment of the 1-hour
standard in Denver-Boulder since 1987, with a summertime gasoline RVP
of 9.0 psi. Furthermore, even with the 9.0 RVP gasoline, data in AIRS
show that the Denver-Boulder area has been attaining the new 8-hour
ozone standard for 1994, 1995, and 1996, and in addition, a preliminary
analysis also indicates continued attainment of the 8-hour standard
through 1997. Thus, the Denver-Boulder area to date has been able to
attain the 1-hour standard and the 8-hour standard with a 9.0 psi RVP
gasoline standard in place.
Available evidence indicates that retention of the 7.8 psi standard
would impose significant, additional costs for consumers and the
gasoline industry in the area. Previous documentation submitted in
support of Colorado's petitions for relaxation of the 7.8 psi RVP
standard indicate that implementation of that standard would be costly.
This documentation shows that implementation of the 7.8 psi RVP
standard would cost the consumer about 1.1 cents more per gallon of
gasoline with an overall seasonal cost of over $3,000,000.
In a letter of June 20, 1995, the local refinery industry stated
that the imposition of a 7.8 psi standard in the Denver-Boulder area at
that time would cause many refiners to make irreversible capital
improvements. It was stated that these improvements may not be needed
if Denver-Boulder implemented a 9.0 psi RVP standard after
redesignation to attainment, which at that time seemed imminent. EPA
notes that because the rest of the Colorado market requires a 9.0 psi
RVP standard, any refinery changes made in order to comply with the 7.8
psi standard would be in response only to the market demand in the
Denver-Boulder areas.
In testimony and documentation presented at a 1995 hearing held
before the Colorado Air Quality Control Commission, the Air Pollution
Control Board of the Colorado Department of Health stated that these
increased costs would vary among refiners. Also minutes and
documentation from that hearing indicated that the Air Pollution
Control Board supported a relaxation of the RVP standard since there
had been no monitored violations of the ozone (1-hour) NAAQS since
1986.
As stated above, with a 9.0 RVP gasoline standard in place, the
Denver-Boulder area has attained the 1-hour ozone standard since 1992,
(when the Phase II volatility standards were implemented), and has
shown attainment with the 8-hour standard for 1994, 1995, and 1996,
(with a

[[Page 31630]]

preliminary analysis also showing attainment for 1997). Therefore, EPA
believes that keeping in place the 9.0 psi RVP gasoline standard for
the next three years in Denver-Boulder will not cause Denver-Boulder's
air quality to deteriorate significantly. Additionally, since 1989,
summertime gasoline volatility has been reduced significantly through
federal volatility regulations. Moreover, ongoing vehicle fleet
turnover, as well as several requirements under the 1990 CAA Amendments
(tighter tailpipe standards, longer periods for a vehicle's ``useful
life'' during which it must comply with the standards, requirements for
on-board diagnostic equipment to detect failures of the emissions
control system, requirements for on-board vapor recovery equipment to
capture emissions during refueling, and enhanced inspection and
maintenance requirements) will continue to help control overall mobile
source emissions of VOCs in the Denver-Boulder area.
Under the CAA, EPA has up to three years from promulgation of a new
NAAQS to designate areas for the new NAAQS. If an area is designated in
2000 as nonattainment for the 8-hour NAAQS, that area will be required
to develop and submit a State Implementation Plan (SIP) revision to
provide for attainment of the 8-hour standard. EPA believes that when
the Agency determines the Denver-Boulder area's ozone attainment status
for purposes of the initial designations (by July 2000), that will be
the appropriate time to assign a permanent RVP standard for the Denver-
Boulder area.

II. Direct Final Rulemaking

This action is being taken without prior proposal because EPA
believes that this continuation of the relaxation of the RVP
requirements is noncontroversial. The effect of this rulemaking is
limited to the Denver-Boulder, Colorado nonattainment area, and EPA
anticipates no significant comments on this action. This action extends
the RVP standard that has been in effect in the Denver-Boulder area
since 1992.

III. Administrative Requirements

A. Public Participation

This rule will become effective without further notification unless
the Agency receives relevant adverse comments on the parallel document
of proposed rulemaking published in today's Federal Register within 30
days of this document. Should the Agency receive such comments, it will
publish a notice informing the public that this rule did not take
effect. All relevant public comments received within the 30-day comment
period will then be addressed in a subsequent final rule based on EPA's
proposal to approve Colorado's petition published in the proposed rules
section of today's Federal Register. No second comment period on this
rule will be instituted.

B. Environmental Impact

The proposed amendment is not expected to have any adverse
environmental effects. The Denver-Boulder six-county area has met the
1-hour NAAQS for ozone since 1987. Current air quality is expected to
be further maintained by a 9.0 psi RVP gasoline standard for the years
1998, 1999, and 2000.

C. Economic Impact

The proposed continued relaxation of the 7.8 psi RVP gasoline
standard to 9.0 psi will avoid a cost increase in gasoline refining and
decrease in summertime gasoline supply levels in the Denver-Boulder
area. No new economic burdens will be placed on the local refining
industry to implement a change in the RVP standard.

D. Executive Order 12866

Under Executive Order 12886 10, the Agency must
determine whether a regulatory action 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:
---------------------------------------------------------------------------

\10\ 58 FR 51735 (October 4, 1993).
---------------------------------------------------------------------------

(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 or
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
the Executive Order.
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. Specifically, this rule will not
have an annual effect on the economy in excess of $100 million, have a
significant adverse impact on competition, investment, employment or
innovation, or result in a major price increase. In fact, as discussed
above, this action will reduce the cost of compliance with Federal
requirements in this area.

E. Paperwork Reduction Act

Under the Paperwork Reduction Act of 1980, 44 U.S.C. 3501, EPA must
obtain OMB clearance for any activity that will involve collecting
substantially the same information from ten or more non-Federal
respondents. This direct final rule does not create any new information
requirements or contain any new information collection activities.

F. Regulatory Flexibility Act

EPA has determined that it is not necessary to prepare a regulatory
flexibility analysis in connection with this direct final rule. EPA has
also determined that this rule will not have significant economic
impact on substantial number of small entities. Small entities include
small businesses, small for profit enterprises, and small governmental
jurisdictions. This rule will not have a significant impact on a
substantial number of small entities because the overall impact of this
rule is a net decrease in requirements on all entities including small
entities. Therefore, I certify that this action will not have a
significant economic impact on a substantial number of small entities.

G. Unfunded Mandates

Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that the Agency prepare a budgetary impact statement before
promulgating a rule that includes a Federal mandate that may result in
expenditure by State, local, and tribal governments, in aggregate, or
by the private sector, of $100 million or more in any one year. Section
203 requires the Agency to establish a plan for obtaining input from
and informing, educating, and advising any small governments that may
be significantly or uniquely affected by the rule.
Under section 205 of the Unfunded Mandates Act, the Agency must
identify and consider a reasonable number of regulatory alternatives
before promulgating a rule for which a budgetary impact statement must
be prepared. The Agency must select from those alternatives the least
costly, most cost-effective, or least burdensome alternative that
achieves the objectives of the rule, unless the Agency explains why
this alternative is not selected or

[[Page 31631]]

the selection of this alternative is inconsistent with the law.
The Agency has determined that this rule does not include a federal
mandate that may result in expenditures of $100 million or more for
State, local, and tribal governments, in the aggregate, or the private
sector in any one year. This rule reduces costs to such entities by
relaxing a regulatory requirement. Because small governments will not
be significantly or uniquely affected by this rule, the Agency is not
required to develop a plan with regard to small governments.

H. Submission to Congress and the Comptroller General

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. This rule is not a
``major rule'' as defined by 5 U.S.C. section 804(2).

I. Petitions for Judicial Review

Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by August 10, 1998. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this rule for the purposes of judicial
review nor does it extend the time within which a petition for judicial
review may be filed, and it shall not postpone the effectiveness of
such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2).)

J. Electronic Copies of Rulemaking

A copy of this action is available on the Internet at www.epa.gov/
OMSWWW under the title: ``Relaxation of Federal Gasoline RVP Standard
in Denver-Boulder Metropolitan Area.''

K. Statutory Authority

The promulgation of this regulation is authorized by sections
211(h) and 301(a) of the Clean Air Act as amended by the Clean Air Act
Amendments of 1990(42 U.S.C. 7545(h) and 7601(a)).

L. Children's Health Protection

This direct final rule is not subject to E.O. 13045, entitled
``Protection of Children from Environmental Health Risks and Safety
Risks'' (62 FR 19885, April 23, 1997), because it does not involve
decisions on environmental health risks or safety risks that may
disproportionately affect children.

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: May 28, 1998.
Carol M. Browner,
Administrator.

For the reasons set forth in the preamble, part 80 of title 40 of
the Code of Federal Regulations 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. In Sec. 80.27(a)(2), the table is amended by revising the entry
for Colorado and footnote 2 to read as follows:

Sec. 80.27 Controls and prohibitions on gasoline volatility.

* * * * *
(a) * * *
(2) * * *

Applicable Standards \1\ 1992 and Subsequent Years
----------------------------------------------------------------------------------------------------------------
State May June July August September
----------------------------------------------------------------------------------------------------------------

* * * * * *
*
Colorado\2\.................................... 9.0 7.8 7.8 7.8 7.8

* * * * * *
*
----------------------------------------------------------------------------------------------------------------
\1\ Standards are expressed in pounds per square inch (psi).
\2\ The standard for 1992 through 2000 in the Denver-Boulder area designated nonattainment for the 1-hour ozone
NAAQS in 1991 (see 40 CFR 81.306) will be 9.0 for June 1 through September 15.

[FR Doc. 98-15449 Filed 6-9-98; 8:45 am]
BILLING CODE 6560-50-P

Notices For
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994

Approval of Colorado's Petition to Relax the Federal Gasoline Reid Vapor Pressure Volatility Standard for 1998, 1999, and 2000

Related Material

Local Navigation