97-29385. Fuels and Fuel Additives; Elimination of Oxygenated Fuels Program Reformulated Gasoline (OPRG) Category From the Reformulated Gasoline Regulations  

  • [Federal Register Volume 62, Number 215 (Thursday, November 6, 1997)]
    [Rules and Regulations]
    [Pages 60132-60136]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-29385]
    
    
    
    [[Page 60131]]
    
    _______________________________________________________________________
    
    Part III
    
    
    
    
    
    Environmental Protection Agency
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    40 CFR Part 80
    
    
    
    Fuels and Fuel Additives; Elimination of Oxygenated Fuels Program 
    Reformulated Gasoline (OPRG) Category From the Reformulated Gasoline 
    Regulations; Final Rule
    
    Federal Register / Vol. 62, No. 215 / Thursday, November 6, 1997 / 
    Rules and Regulations
    
    [[Page 60132]]
    
    
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 80
    
    [FRL-5917-7]
    RIN 2060-AH43
    
    
    Fuels and Fuel Additives; Elimination of Oxygenated Fuels Program 
    Reformulated Gasoline (OPRG) Category From the Reformulated Gasoline 
    Regulations
    
    AGENCY: Environmental Protection Agency.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: In this action, the reformulated gasoline (RFG) regulations 
    are amended to eliminate the separate treatment for a category of 
    gasoline used in oxygen averaging. This category, oxygenated fuels 
    program reformulated gasoline (OPRG), includes reformulated gasoline 
    intended for use in a state oxygenated fuels program during the winter 
    time. Under the current RFG regulations, a refiner must meet the oxygen 
    content standards on average for the entire pool of gasoline they 
    produce, and for the pool of gasoline they produce that is non-OPRG. 
    EPA is taking this action because it no longer believes a distinction 
    between OPRG and RFG that is not intended for oxygenated fuels program 
    areas (i.e., non-OPRG) is necessary and because removal of the OPRG 
    category would add flexibility and reduce compliance costs for 
    regulated parties, without producing a negative environmental impact. 
    Today's rule also removes a prohibition on adding oxygen to finished 
    RFG, which will provide parties in RFG/oxygenated fuels program overlap 
    areas with added flexibility in meeting both programs' standards.
    
    EFFECTIVE DATE: November 3, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Anne-Marie C. Pastorkovich at (202) 
    233-9013.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Regulatory Entities
    
        Regulatory categories and entities potentially affected by this 
    action include:
    
    ------------------------------------------------------------------------
                                                    Examples of regulated   
                     Category                             entities          
    ------------------------------------------------------------------------
    Industry..................................  Refiners, importers,        
                                                 oxygenate blenders of      
                                                 reformulated gasoline.     
    ------------------------------------------------------------------------
    
        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 
    the existing provisions at 40 CFR 80.2, 80.65, 80.67, 80.69, 80.75, 
    80.77, 80.78, and 80.128, dealing specifically with OPRG. If you have 
    questions regarding the applicability of this action to a particular 
    entity, consult the person listed in the preceding FOR FURTHER 
    INFORMATION CONTACT section.
    
    II. Background
    
        On March 17, 1997, EPA proposed amendments to the reformulated 
    gasoline (RFG) regulations that would eliminate the oxygenate program 
    reformulated gasoline (OPRG) category.1 As explained in that 
    notice, EPA issued the proposed rule for several reasons. First, 
    between 1993, when the final RFG rule was issued, and 1995, when the 
    RFG program was implemented, the number of overlapping oxygenated fuels 
    program and RFG areas significantly decreased. Although EPA is 
    concerned that the statutory mandate for 2.0 weight percent oxygen for 
    RFG is met,2 the Agency feels that the specific risk of 
    uneven RFG quality due to overlapping oxygenated fuels/RFG program 
    areas is significantly less than was expected when the RFG regulations 
    were promulgated. There is still some risk that an area might receive 
    relatively low oxygen RFG because of averaging, but the risk is no 
    longer as likely to be specifically caused by program overlap as in 
    1993 and 1994.
    ---------------------------------------------------------------------------
    
        \1\ 62 FR 12586 (March 17, 1997).
        \2\ In oxygenated fuels program areas implemented by states as 
    required by section 211(m) of the Act, the minimum oxygen content 
    during the winter control period is 2.7 weight % oxygen. This 
    minimum for oxygenated fuels control periods is unaffected by 
    today's rule and remains in force. Nothing in today's rule changes 
    the applicable oxygen standards under the Federal RFG or state 
    oxygenated fuels programs.
    ---------------------------------------------------------------------------
    
        Second, based upon EPA estimates made prior to the beginning of the 
    first year of the RFG program, approximately one-third (33%) of all 
    gasoline nationwide was predicted to be RFG. Oxygenated fuels program 
    overlap areas outside of California accounted for approximately one-
    third (33%) of the total RFG pool, with approximately 19% going to the 
    New York CMSA.3 EPA believes that any risk that an area 
    might receive low oxygen RFG is significantly less than it appeared in 
    1993 and 1994. As discussed in great detail in the proposed 
    rule,4 in 1994, roughly one-third of RFG was expected to be 
    destined for several oxygenated fuels overlap cities outside of 
    California. Today, the New York City CMSA is the only remaining overlap 
    area outside California, although the Phoenix, Arizona moderate ozone 
    nonattainment area opted into the RFG program 5 and is also 
    an oxygenated fuels area. EPA continues to believe that the risk that 
    an area might receive low oxygen RFG can be adequately addressed 
    through another existing compliance mechanism--the RFG surveys required 
    by 40 CFR 80.68.
    ---------------------------------------------------------------------------
    
        \3\ It should be noted that, since these estimates were made in 
    1994, some areas have opted out of the RFG program and Sacramento, 
    California joined the program as a required covered area, and 
    comparative volume totals will have changed somewhat as a result. 
    These estimates are not based upon the comparative volume of OPRG to 
    RFG. Rather, they are ``straight'' estimates of a program area's 
    share of the total RFG ``pool'' and are not broken down into 
    compliance categories. The reader should be aware that OPRG gasoline 
    likely represents a smaller, subset of the total volume represented 
    for each area. The untitled document from which the volume estimates 
    were taken has been placed in the public docket, docket # A-97-01, 
    Category II(B). The docket is located at the Air Docket Section, 401 
    M Street, SW, Room M-1500 Washington, DC and is open Monday through 
    Friday from 8:00 a.m. to 5:30 p.m.
        \4\ 62 FR 12596, 12588.
        \5\ ``Regulation of Fuels and Fuel Additives: Extension of the 
    Reformulated Gasoline Program to the Phoenix, Arizona Moderate Ozone 
    Nonattainment Area,'' 62 FR 30260 (June 3, 1997). The Arizona opt-in 
    became effective on July 3, 1997 for all persons other than 
    retailers and wholesale purchaser-consumers and August 4, 1997 for 
    retailers and wholesale purchaser-consumers.
    ---------------------------------------------------------------------------
    
    III. Response to Comments
    
        Effective Date: Three commenters wanted the rule to go into effect 
    by the November 1, 1997, the start date for the 1997-1998 winter 
    oxygenated fuels program. A fourth commenter wanted the rule to go into 
    effect ``as expeditiously as due process considerations allow.'' The 
    rationale for the earliest effective date is to allow regulated parties 
    to take advantage of maximum flexibility.
        However, another commenter urged EPA to implement the change 
    effective January 1, 1998, in order to alleviate financial burdens on 
    certain regulated parties. Specifically, companies may have entered 
    into contracts under which they have already paid for credits needed 
    this year. An implementation date earlier than January 1, 1998 would, 
    according to the commenter, devalue those purchased credits without the 
    possibility of a refund to the purchaser.
        EPA believes that the rule should go into effect by November 1, 
    1997, concurrent with the start of the oxygenated fuels program, in 
    order to
    
    [[Page 60133]]
    
    allow regulated parties maximum flexibility. A January 1, 1998 start 
    date falling in the middle of the state oxygenated fuels programs, 
    would likely add unnecessary confusion. Delaying the start date until 
    after the 1997-1998 oxygenated fuels season, e.g. until March 1, 1998 
    or later, would impose an unnecessary burden on the majority of 
    parties. Today's rule removes burdens associated with the maintenance 
    of separate recordkeeping, reporting, and product transfer 
    documentation for OPRG and non-OPRG categories, resulting in a general 
    reduction in compliance costs. A greater cost benefit would be realized 
    by the vast majority of parties if the rule is effective on November 1, 
    1997, the start date of the oxygenated fuels program. Today's rule 
    eliminates the prohibition on adding oxygen to finished RFG, which 
    provides regulated parties in overlap areas with added flexibility in 
    meeting both RFG and oxygenated fuels program standards.
        Although there may be an adverse effect on a few parties, the vast 
    majority will benefit from the earliest implementation of today's rule.
        EPA has provided guidance on submitting 1997 RFG reports elsewhere 
    in this notice.
    
    Effects on Compliance Burdens and Recordkeeping
    
        Five commenters agreed that the rule to do away with the 
    distinction between OPRG/non-OPRG will help add flexibility and reduce 
    compliance burdens. Three of these five also agreed that this will also 
    reduce compliance costs. EPA concurs with these statements. A sixth 
    commenter was concerned that this rule will increase refiner's 
    compliance burdens, but did not elaborate on how these burdens will 
    increase. EPA believes that the reduction of the recordkeeping and 
    reporting burdens associated with the OPRG category results in a 
    positive impact in terms of cost, burden, and time for the vast 
    majority of regulated parties.
    
    Reporting
    
        Some commenters who were supportive of the proposal also noted that 
    they might not have sufficient lead time to redesign their accounting 
    methods and reporting software. These commenters asked for flexibility 
    in reporting. One commenter asked that reporting parties should be 
    given the option of reporting the OPRG/non-OPRG categories for reports 
    covering calendar year 1997.
        EPA understands that this change may require alterations to some 
    parties' accounting methods and software. For annual reports covering 
    calendar year 1997 and for batch reports after November 1, 1997, a 
    reporting party may choose to report using the OPRG/non-OPRG categories 
    (i.e., to report ``as usual'') or to report all OPRG in the appropriate 
    non-OPRG categories.
        For 1997 and subsequent years, EPA will look to the refiner's 
    entire RFG production in order to determine compliance with the annual 
    average for oxygen and will no longer recognize any distinction between 
    OPRG and non-OPRG. The same approach will apply for compliance with the 
    oxygen average for VOC-controlled RFG under the simple model.
        EPA plans to amend its reporting forms as soon as practicable in 
    order to reflect the elimination of the OPRG/non-OPRG distinction.
        The RFG reports affected by this rule are: ``Reformulated Gasoline 
    Program Oxygen Content Averaging Report'' (Simple Model & Complex 
    Model), ``Reformulated Gasoline Program Credit Transfer Summary 
    Report,'' and the ``Reformulated Gasoline and Anti-Dumping Batch 
    Reports.''
    
    Product Transfer Documentation
    
        Some commenters have asked whether they must eliminate the OPRG/
    non-OPRG distinction on their product transfer documentation. 
    Redesigned documentation and forms may not be ready by the effective 
    date.
        Today's action removes all OPRG/non-OPRG distinctions in the 
    regulations as of the November 1, 1997 effective date. Although parties 
    may continue to use product transfer documentation differentiating OPRG 
    from non-OPRG, such distinction is not required by EPA because it no 
    longer holds any importance. However, regulated parties may wish to 
    phase-out their use of OPRG category reporting, in order to reduce 
    confusion.
    
    Effects on Oxygenate Use/Toxic Increase
    
        One commenter stated that removal of the OPRG category will cause 
    refiners to use less oxygenate and more aromatics in their gasoline. 
    The addition of aromatics would substitute for lost octane. This effect 
    was not quantified by the commenter, who stated that today's rule will 
    cause the gasoline to emit more toxics.
        It is important to remember that EPA has not altered the standards 
    applicable to refiners for oxygen content and toxics under either the 
    reformulated gasoline or oxygenated fuels programs. Furthermore, the 
    gasoline quality survey program for oxygenates and toxics, and other 
    enforcement mechanisms still exist to ensure that the full 
    environmental benefits of the oxygenate content and toxics standards 
    are realized.
        It is possible that elimination of the OPRG/non-OPRG distinction 
    may result in some decrease in the use of oxygenates, since credits 
    generated in RFG areas that are also oxygenated fuels program areas 
    (i.e. areas requiring a relatively high oxygen content of least 2.7 
    weight % oxygen during the winter months) may be used in RFG areas that 
    are not oxygenated fuels program areas (i.e. areas requiring at least 
    2.0 weight % oxygen all year round). If oxygenate use decreases in some 
    RFG/non-oxygenated fuels program areas, it is possible that toxics may 
    increase in those areas. Nevertheless, EPA believes that the survey 
    mechanism (discussed in greater detail for the following comment) is 
    adequately designed to ensure the gasoline quality in each covered area 
    will meet the standards on average for toxics.
    
    Effects on Oxygenate Use/Survey Failures
    
        EPA received comments pertaining to the oxygenate use and survey 
    failures. The commenters all agreed that EPA's enforcement mechanisms, 
    including gasoline quality surveys, provide a means to ensure 
    compliance with RFG program requirements. Two commenters thought that 
    there may be a marginal increase in risk, but this would be discovered 
    through the surveys and corrected.
        One commenter was concerned that blenders will take advantage of 
    the elimination of the OPRG/non-OPRG distinction to minimize oxygenate 
    use and this will cause areas to fail the surveys. A commenter felt 
    that survey failures result from ``refiners [who] are learning to use 
    the [credit trading] program.'' 6
    ---------------------------------------------------------------------------
    
        \6\ The commenter also urged EPA to ratchet the minimum oxygen 
    standard from 1.5 weight % to 1.6 weight % for areas that failed the 
    oxygen survey series in 1996. On July 31, 1997, EPA published a 
    notice in the Federal Register announcing a ratchet for several 
    covered areas. Please refer to ``Change in Minimum Oxygen Content 
    for Reformulated Gasoline--Notice,'' 62 FR 41047 (July 31, 1997) for 
    further information.
    ---------------------------------------------------------------------------
    
        EPA agrees that the risk of survey failures may increase in the 
    absence of the OPRG/non-OPRG distinction, because more credits from RFG 
    areas with wintertime oxygenated fuels program may be used by refiners 
    to show compliance with the annual oxygen average applicable to the 
    refiner, with less reliance on use of oxygen in RFG destined for RFG 
    areas that are not
    
    [[Page 60134]]
    
    wintertime oxygenated fuels program areas. (See the preceding comment.)
        The existence of the credit trading program was required by section 
    211(k)(7) of the Clean Air Act as amended in 1990, 42 U.S.C. Sec. 7545. 
    Compliance with the RFG oxygen standards is shown over the course of a 
    calendar year averaging period. Credits may be traded within and 
    between all covered areas. A general risk always exists, even in the 
    absence of the OPRG/non-OPRG distinction, that one area may receive RFG 
    with a slightly higher oxygen content than another area. The compliance 
    survey provisions, with ratchets upon survey failures, were adopted by 
    the Agency to address this risk. In 1993 and 1994, the specific risk of 
    uneven RFG quality due to overlapping RFG and oxygenated fuels program 
    areas was significantly greater than it is today. Since 1993 and 1994, 
    many areas have redesignated to attainment for carbon monoxide (CO) and 
    were able to drop the oxygenated fuels program. The specific risk that 
    an area might receive relatively low oxygen RFG because of program 
    overlap has lessened, and EPA believes that the existing survey and 
    enforcement mechanisms are adequate to address any additional risks 
    there might be from eliminating the OPRG/non-OPRG category.
    
    Phoenix, AZ
    
        Phoenix, AZ recently opted in to the Federal RFG program. One 
    commenter stated that this should not affect the decision to remove the 
    OPRG reporting category. EPA agrees with this comment. Overall, the 
    number of non-California RFG/oxygenated fuels program overlap areas has 
    decreased significantly since the RFG program regulations were 
    finalized in 1993. EPA does not believe that the addition of Phoenix to 
    the program warrants the burden and expense associated with retention 
    of the OPRG category.
    
    Economic Impact
    
        EPA received one comment from a party who claimed that today's rule 
    might have an unspecified negative economic impact on one sector of the 
    oxygenate industry (i.e., the sector that deals with oxygen credit 
    contracts). Another commenter stated that the effort of eliminating the 
    OPRG/non-OPRG distinction may be a great one compared to the benefit 
    received. All other commenters endorsed the proposed changes as 
    economically beneficial.
        EPA believes that the vast majority of regulated entities, 
    including small businesses, are reasonably expected to experience 
    significant cost savings as a result of today's regulation. EPA does 
    not believe that today's action will, in and of itself, have any 
    significant impact on oxygenate markets.
        EPA disagrees with the characterization that the elimination of 
    removing the OPRG/non-OPRG distinction would require great effort. The 
    Agency has designed the regulatory changes to permit great flexibility 
    for all affected parties. For example, EPA has permitted flexibility in 
    reporting for all RFG and anti-dumping reports covering calendar year 
    1997 and due to be submitted on or after November 1, 1997.
    
    III. Today's Rule
    
        EPA is amending the Federal RFG regulations to remove the use of a 
    separate OPRG category and to eliminate the distinction between OPRG 
    and non-OPRG. The following sections would be affected by today's 
    proposal. In most cases, the changes are minor and would remove 
    references to, and distinctions between, the eliminated OPRG category 
    and RFG which is non-OPRG.
    
    ------------------------------------------------------------------------
            40 CFR Part 80, Section               Description of change     
    ------------------------------------------------------------------------
    Section 80.2--Definitions. 80.2(nn)....  Definition of ``Oxygenated     
                                              fuels program reformulated    
                                              gasoline,'' or ``OPRG'' is    
                                              deleted.                      
    Section 80.65--General requirements for  Requirements for designation of
     refiners, importers, and oxygenate       gasoline as OPRG or non-OPRG  
     blenders. 80.65(d)(2)(iii) (A) and (B).  are deleted.                  
    Section 80.67--Compliance on average.    Deletes requirements to meet   
     80.67(f)(2)(ii), 80.67(h)(1)(v) (A)      oxygen average separately and 
     and (B).                                 to segregate credits for non- 
                                              OPRG, since the OPRG versus   
                                              non-OPRG distinction is       
                                              eliminated.                   
    Section 80.69--Requirements for          These sections are deleted, to 
     downstream oxygen blending. 80.69(f)     reflect that there would no   
     (1) and (2).                             longer be a category known as 
                                              ``OPRG.'' \7\                 
    Section 80.75--Reporting requirements.   For 80.75(f)(2)(ii)(A) (1)     
     80.75(f)(2)(ii)(A) (1) through (4) and   through (4), the OPRG and non-
     (B) (1) and (2); 80.75(f)(2)(iii)(B);    OPRG distinction is           
     80.75(h)(2) (i) and (ii) 80.75(p).       eliminated. Thus, the only    
                                              categories remaining are VOC- 
                                              controlled (divided into      
                                              subcategories 1 and 2) and non-
                                              VOC-controlled RFG. Section   
                                              80.75(f)(2)(ii)(B) (1) and (2)
                                              is deleted in order to        
                                              eliminate to OPRG and non-OPRG
                                              distinction. Section          
                                              80.75(f)(2)(iii)(B), which    
                                              refers to gasoline designated 
                                              as non-OPRG, is deleted.      
    Section 80.77--Product transfer          Requirement to identify        
     documentation. 80.77(g)(1)(ii).          gasoline as OPRG or non-OPRG  
                                              is deleted.                   
    Section 80.78--Controls and              Before today's rule, this      
     prohibitions on reformulated gasoline.   section prohibits addition of 
     80.78(a)(6).                             oxygen to finished RFG, unless
                                              such RFG is designated as OPRG
                                              used in an oxygenated fuels   
                                              control area during the       
                                              oxygenated fuels control      
                                              period. This OPRG             
                                              ``exception'' is amended to   
                                              allow for elimination of the  
                                              OPRG/non-OPRG categories.     
                                              Specifically, the amended     
                                              section allows for addition of
                                              oxygenate to RFG intended for 
                                              and used in an oxygenate      
                                              gasoline program area.        
    Sections 80.128 and 80.129--Agreed upon  Requirement to compare PTD     
     procedures for refiners and importers    designation consistency for   
     and Agreed upon procedures for           OPRG versus non-OPRG is       
     oxygenate blenders. 80.128(d)(2) and     removed. Similar requirement  
     80.129(d)(3)(iv).                        for downstream oxygenate      
                                              blenders is removed.          
    ------------------------------------------------------------------------
    \7\ Note the change to section 80.78(a)(6).                             
    
    IV. Statutory Authority
    
        Sections 114, 211, and 301(a) of the Clean Air Act as amended (42 
    U.S.C. 7414, 7545, and 7601(a)).
    
    V. Environmental Impact
    
        This rule is expected to have no environmental impact. The original 
    reason for the OPRG category was concern that RFG quality might suffer 
    in areas that were not both oxygenated fuels program and RFG areas. 
    There were several such areas when the RFG rules were promulgated. 
    However, there are now only two areas, the New York/New Jersey/
    Connecticut CMSA and
    
    [[Page 60135]]
    
    Phoenix, Arizona, which currently have overlapping programs during the 
    winter months. EPA is aware of no data indicating that today's 
    regulation will encourage the use of lower oxygen content RFG. The 
    oxygenated fuels program and RFG program oxygen standards remain in 
    place. The RFG standards are Federally enforced through a variety of 
    enforcement mechanisms, including the oxygen survey program, which is 
    specifically designed to ensure that oxygen standards are met on 
    average in all RFG cities.
    
    VI. Economic Impact and Impact on Small Entities
    
        EPA has determined that this final rule will not have a significant 
    impact on a substantial number of small entities. Small entities 
    include small businesses, small not-for-profit enterprises, and small 
    governmental jurisdictions. Today's regulation would have a positive 
    economic impact on the great majority of entities regulated by the RFG 
    regulation, including small businesses. The elimination of the OPRG/
    non-OPRG distinction would result in increased flexibility for 
    regulated parties, including refiners, importers, and blenders. 
    Specifically, elimination of this distinction from the RFG regulations 
    alleviates the burden and cost associated with maintenance of separate 
    recordkeeping, reporting, and product transfer documentation category 
    for OPRG and non-OPRG gasoline. Elimination of the OPRG/non-OPRG 
    distinction should also result in a general reduction of compliance 
    costs associated with the need to meet the oxygen average separately 
    for two classes of RFG. A regulatory flexibility analysis has therefore 
    not been prepared.
    
    VII. Paperwork Reduction Act
    
        Per the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., and 
    implementing regulations, 5 CFR Part 1320, this action does not involve 
    the addition of any collection of information as defined therein.
    
    VIII. Executive Order 12866
    
        Under Executive Order 12866,8 the Agency must determine 
    whether a regulation is ``significant'' and therefore subject to 
    interagency review under the Executive Order. The Order defines 
    ``significant regulatory action'' as one that is likely to result in a 
    rule that may:
    ---------------------------------------------------------------------------
    
        \8\ 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 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.9
    ---------------------------------------------------------------------------
    
        \9\ Id. at section 3(f)(1)-(4).
    ---------------------------------------------------------------------------
    
        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 interagency review under the Order.
    
    IX. Unfunded Mandates
    
        Under Section 202 of the Unfunded Mandates Reform Act of 1995 
    (``UMRA''), Pub. 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 this rule 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.
    
    X. Submission to Congress and the General Accounting Office
    
        Under 5 U.S.C. 801(a)(1)(A) of the Regulatory Flexibility Act as 
    added by the Small Business Regulatory Enforcement Fairness Act of 
    1996, EPA submitted a report containing this rule to the U.S. Senate, 
    the U.S. House of Representatives and the Comptroller General of the 
    General Accounting Office prior to publication of the rule in today's 
    Federal Register. This rule is not a ``major rule'' as defined by 5 
    U.S.C. 804(2).
    
    List of Subjects in 40 CFR Part 80
    
        Environmental protection, Air pollution control, Gasoline, 
    Reformulated gasoline, Motor vehicle pollution.
    
        Dated: October 31, 1997.
    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: Secs. 114, 211, and 301(a) of the Clean Air Act as 
    amended (42 U.S.C. 7414, 7545, and 7601(a)).
    
    
    Sec. 80.2  [Amended]
    
        2. Section 80.2 is amended by removing and reserving paragraph 
    (nn).
    
    
    Sec. 80.65  [Amended]
    
        3. Section 80.65 is amended by removing and reserving paragraph 
    (d)(2)(iii).
        4. Section 80.67 is amended by removing and reserving paragraph 
    (f)(2)(ii) and by revising paragraphs (h)(1)(v)(A)(1) and 
    (h)(1)(v)(A)(2) and by removing and reserving paragraph (h)(1)(v)(B) 
    and by removing paragraphs (h)(1)(v)(A)(3) and (h)(1)(v)(A)(4) to read 
    as follows:
    
    
    Sec. 80.67  Compliance on average.
    
    * * * * *
        (h) * * *
        (1) * * *
        (v) * * *
        (A) * * *
        (1) VOC controlled; and
        (2) Non-VOC controlled.
        (B) [Reserved]
    * * * * *
    
    
    Sec. 80.69  [Amended]
    
        5. Section 80.69 is amended by removing paragraph (f).
        6. Section 80.75 is amended by revising paragraphs 
    (f)(2)(ii)(A)(1), (f)(2)(ii)(A)(2), (h)(2)(i)(A) and (h)(2)(i)(B) and 
    by removing paragraphs (f)(2)(ii)(A)(3), (f)(2)(ii)(A)(4), 
    (h)(2)(i)(C), (h)(2)(i)(D) and by removing and reserving (h)(2)(ii) to 
    read as follows:
    
    
    Sec. 80.75  Reporting requirements.
    
    * * * * *
        (f) * * *
        (2) * * *
        (ii) * * *
    
    [[Page 60136]]
    
        (A) * * *
        (1) Gasoline designated as VOC-controlled; and
        (2) Gasoline designated as non-VOC-controlled.
    * * * * *
        (h) * * *
        (2) * * *
        (i) * * *
        (A) VOC-controlled; and
        (B) Non-VOC-controlled.
    * * * * *
        7. Section 80.77 is amended by removing and reserving paragraph 
    (g)(1)(ii).
        8. Section 80.78 is amended by revising paragraph (a)(6) to read as 
    follows:
    
    
    Sec. 80.78  Controls and prohibitions on reformulated gasoline.
    
        (a) * * *
        (6) No person may add any oxygenate to reformulated gasoline, 
    except that such oxygenate may be added to reformulated gasoline 
    provided that such gasoline is used in an oxygenated fuels program 
    control area during an oxygenated fuels control period.
    * * * * *
        9. Section 80.128 is amended by revising paragraph (d)(2) to read 
    as follows:
    
    
    Sec. 80.128  Agreed upon procedures for refiners and importers.
    
    * * * * *
        (d) * * *
        (2) Compare the product transfer documents designation for 
    consistency with the time and place, and compliance model designations 
    for the tender (VOC-controlled or non-VOC-controlled, VOC region for 
    VOC-controlled, summer or winter gasoline, and simple or complex model 
    certified); and
    * * * * *
        10. Section 80.129 is amended by revising paragraph (d)(3)(v) to 
    read as follows:
    
    
    Sec. 80.129  Agreed upon procedures for downstream oxygenate blenders.
    
    * * * * *
        (d) * * *
        (3) * * *
        (v) Review the time and place designations in the product transfer 
    documents prepared for the batch by the blender, for consistency with 
    the time and place designations in the product transfer documents for 
    the RBOB (e.g. VOC-controlled or non-VOC-controlled, VOC region for 
    VOC-controlled, and simple or complex model).
    * * * * *
    [FR Doc. 97-29385 Filed 11-5-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Effective Date:
11/3/1997
Published:
11/06/1997
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-29385
Dates:
November 3, 1997.
Pages:
60132-60136 (5 pages)
Docket Numbers:
FRL-5917-7
RINs:
2060-AH43: Fuels and Fuel Additives; Elimination of Oxygenated Program Reformulated Gasoline Category from the Reformulated Gasoline Regulations
RIN Links:
https://www.federalregister.gov/regulations/2060-AH43/fuels-and-fuel-additives-elimination-of-oxygenated-program-reformulated-gasoline-category-from-the-r
PDF File:
97-29385.pdf
CFR: (8)
40 CFR 80.2
40 CFR 80.65
40 CFR 80.67
40 CFR 80.69
40 CFR 80.75
More ...