97-29390. Regulation of Fuels and Fuel Additives: Proposed Minor Revisions to Selected Recordkeeping and Enforcement Provisions Under the Regulation of Deposit Control Gasoline Additives  

  • [Federal Register Volume 62, Number 215 (Thursday, November 6, 1997)]
    [Proposed Rules]
    [Pages 60052-60058]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-29390]
    
    
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 80
    
    [AMS-FRL-5917-8]
    
    
    Regulation of Fuels and Fuel Additives: Proposed Minor Revisions 
    to Selected Recordkeeping and Enforcement Provisions Under the 
    Regulation of Deposit Control Gasoline Additives
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Notice of proposed rulemaking (NPRM).
    
    -----------------------------------------------------------------------
    
    SUMMARY: EPA is proposing to revise certain requirements in its program 
    for the use of detergent additives in gasoline. Under the current 
    regulations, information on the oxygenate content of the gasoline must 
    always be included in the required product transfer documents. To avoid 
    unnecessary disruption to the gasoline distribution system, EPA is 
    proposing to remove this requirement. A party who wants to use a 
    detergent additive that is restricted in use with respect to oxygenates 
    would be responsible for determining the oxygenate content of the 
    gasoline involved. This proposal would continue to ensure that 
    detergents with oxygenate restrictions are used in compliance with such 
    restrictions, and would avoid the unnecessary disruption to the 
    gasoline distribution system which would occur under the current 
    regulations. For certain transfers of base gasoline, EPA is also 
    proposing to allow the use of product codes in lieu of regulatory 
    warning language concerning applicable
    
    [[Page 60053]]
    
    limitations on the sale and use of such gasolines.
        These proposals are expected to provide industry additional 
    flexibility, while ensuring the proper use of use-restricted detergents 
    and base gasoline. There are no new information collection requirements 
    accompanying these proposed changes. These proposals will not affect 
    the air quality benefits from EPA's detergent additive program.
        In the final rules section of this Federal Register, EPA is also 
    promulgating a direct final rule without prior proposal, which will 
    remove the requirement addressed in this NPRM, that mandates that 
    information on the oxygenate content of transferred gasoline must be 
    included in the required product transfer documents. It is not expected 
    that the deletion of this requirement through the direct final rule 
    will be controversial or that it will elicit negative comments. No 
    detergents are presently certified with restricted oxygenate-use that 
    would require the knowledge of gasoline oxygenate content for proper 
    use. Further, the issue of the best means of acquiring oxygenate 
    information to ensure proper additization is being addressed with 
    notice and an opportunity to comment within the context of this NPRM. 
    However, if EPA does receive adverse comments or a request for a public 
    hearing on the direct final rule, it will be withdrawn and all comments 
    received on it will be addressed in the subsequent final rule to be 
    based on this NPRM. EPA will not institute a second comment period on 
    this NPRM if the direct final rule is withdrawn. Any parties interested 
    in commenting on this issue should do so at this time.
    
    DATES: Comments on this NPRM will be accepted until December 8, 1997. 
    Additional information on the comments procedure can be found under 
    ``Public Participation'' in the Supplementary Information Section of 
    this document.
    
    ADDRESSES: Interested parties may submit written comments (in duplicate 
    if possible) to Public Docket No. A-91-77, at the following address: 
    Air Docket Section (LE-131), room M-1500, 401 M Street SW, Washington, 
    DC 20460; phone (202) 260-7548; fax (202) 260-4000. The Agency also 
    requests that a separate copy be sent to the contact person listed 
    below. The docket is open for public inspection from 8:00 a.m. until 
    5:30 p.m. Monday through Friday, except on government holidays. As 
    provided in 40 CFR Part 2, a reasonable fee may be charged for copying 
    docket materials.
        This NPRM is also available electronically on the day of 
    publication from the Office of the Federal Register internet Web site 
    listed below. A prepublication electronic copy of this notice is also 
    available from the EPA Office of Mobile Sources Web site listed below. 
    This service is free of charge, except for any cost that you already 
    incur for internet connectivity.
    
    Federal Register Web Site:
        http://www.epa.gov/docs/fedrgstr/EPA-AIR/
        (Either select desired date or use Search feature.)
    
    Office of Mobile Sources Web Site:
        http://www.epa.gov/OMSWWW/
        (Look in ``What's New'' or under the specific rulemaking topic.)
    
        Please note that due to differences between the software used to 
    develop the document and the software into which the document may be 
    downloaded, changes in format, page length, etc. may occur.
    
    FOR FURTHER INFORMATION CONTACT: Judith Lubow, U.S. EPA, Office of 
    Enforcement and Compliance Assurance, Western Field Office, 12345 West 
    Alameda Parkway, Suite 214, Lakewood, CO 80228; Telephone: (303) 969-
    6483, FAX (303) 969-6490.
    
    SUPPLEMENTARY INFORMATION:
    
    Table of Contents
    
    I. Regulated Entities
    II. Introduction
    III. Identification of Specific Oxygenate Content on Gasoline 
    Product Transfer Documents (PTDs)
        A. Background
        B. Proposal
    IV. Product Codes as Substitutes for Warning Language on Certain 
    Base Gasoline PTDs
        A. Background
        B. Proposal
    V. Public Participation
    VI. Environmental and Economic Impacts
    VII. Administrative Requirements
        A. Administrative Designation
        B. Impact on Small Entities
        C. Paperwork Reduction Act
        D. Unfunded Mandates Reform Act
    VIII. Statutory Authority
    
    I. Regulated Entities
    
        Entities potentially regulated by this action are those involved 
    with the production, distribution, and sale of gasoline and gasoline 
    detergent additives. Regulated categories and entities include:
    
    ------------------------------------------------------------------------
                                                    Examples of regulated   
                     Category                             entities          
    ------------------------------------------------------------------------
    Industry..................................  Gasoline refiners and       
                                                 importers, Gasoline        
                                                 terminals, Detergent       
                                                 blenders, Gasoline         
                                                 truckers, Gasoline         
                                                 retailers and wholesale    
                                                 purchaser-consumers, and   
                                                 Detergent manufacturers.   
    ------------------------------------------------------------------------
    
        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 types of entities that EPA is now aware could 
    potentially be regulated by this action. Other types of entities not 
    listed in the table could also be regulated. To determine whether your 
    organization is regulated by this action, you should carefully examine 
    the applicability requirements in Sec. 80.161(a), the detergent 
    certification requirements in Sec. 80.161(b), the program controls and 
    prohibitions in Sec. 80.168, and other related program requirements in 
    Subpart G, title 40, of the Code of Federal Regulations (CFR). If you 
    have any questions regarding the applicability of this action to a 
    particular entity, consult the person listed in the preceding FOR 
    FURTHER INFORMATION CONTACT section.
    
    II. Introduction
    
        Section 211(l) of the Clean Air Act (``CAA'') requires that, by 
    January 1, 1995, all gasoline must contain detergent additives to 
    prevent the accumulation of deposits in motor vehicle engines and fuel 
    supply systems. This CAA section also requires EPA to promulgate 
    specifications for the detergent additives. Detergent additives prevent 
    the accumulation of engine and fuel supply system deposits that have 
    adverse effects on vehicle emissions as well as on fuel economy and 
    driveabilty.
        In response to section 211(l)'s requirements, EPA published a 
    Notice of Proposed Rulemaking (``NPRM'') on December 6, 1993 (59 FR 
    64213) proposing a detergent additives regulatory program. The 
    detergent program was finalized in two parts. Regulations for the 
    interim detergent program, requiring the use of detergent additives in 
    gasoline but not mandating specific detergent efficiency testing, were 
    published on October 14, 1994 (59 FR 54678). Regulations for the 
    detergent certification program, mandating the use of certified 
    detergents with specified detergent efficiency testing, were published 
    on July 5, 1996 (61 FR 35310).
        One important implementation issue that has arisen since the 
    publication of the detergent certification rule concerns
    
    [[Page 60054]]
    
    the requirement that the product transfer documents (PTDs) for gasoline 
    transfers must identify all oxygenates found in the gasoline. Members 
    of the gasoline refining and distribution industry informed EPA that 
    this requirement's implementation would, as an unintended consequence, 
    significantly disrupt gasoline distribution.1
    ---------------------------------------------------------------------------
    
        \1\ Letter to Judith Lubow, Office of Enforcement and Compliance 
    Assurance (OECA), EPA, from C.J. Krambuhl, Director, Manufacturing, 
    Distribution, and Marketing, American Petroleum Institute (API), 
    August 14, 1996, Docket item VII-D-01.
    ---------------------------------------------------------------------------
    
        For the reasons described below, EPA exercised its enforcement 
    discretion and announced by letter to the American Petroleum Institute 
    (``API'') that it would temporarily not enforce the PTD oxygenate 
    identification requirement pending resolution of the issue through a 
    rulemaking or until September 3, 1997, whichever occurrence came 
    first.2 The Agency reserved the right to rescind the 
    exercise of this enforcement discretion if it determined that 
    restricted-use detergents were actually being certified or that the PTD 
    oxygenate identification requirements otherwise became appropriate. The 
    Agency further advised that if violations involving the improper use of 
    oxygenate-restricted detergents occurred, parties wishing to 
    successfully assert an affirmative defense to liability for such 
    violations might need to provide information establishing the 
    appropriate oxygenate content of the gasoline in question. 
    Subsequently, EPA extended this exercise of enforcement discretion 
    until implementation of the direct final rule removing the PTD 
    oxygenate requirement (which is associated with this NPRM), or until 
    December 31, 1997, whichever occurrence came first.3
    ---------------------------------------------------------------------------
    
        \2\ Letter to C.J. Krambuhl, API, from Steven A. Herman, 
    Assistant Administrator, OECA, EPA, August 28, 1996, Docket item 
    VII-C-01.
        \3\ Letter to C.J. Krambuhl, API, from Steven A. Herman, 
    Assistant Administrator, OECA, EPA, September 4, 1997, Docket item 
    VII-C-02.
    ---------------------------------------------------------------------------
    
        A second issue about the detergent program's PTD requirements, 
    concerning the use of product codes, also arose since publication of 
    the certification rule. The detergent program's two PTD implementation 
    issues, plus the Agency's proposed regulatory solutions to these 
    issues, will be discussed below.
    
    III. Identification of Specific Oxygenate Content on Gasoline Product 
    Transfer Documents (PTDs)
    
    A. Background
    
        The gasoline detergent additive program requires all regulated 
    parties transferring products controlled under the program to provide 
    to the transferee PTDs giving pertinent information about the products 
    transferred. (40 CFR 80.158 and 80.171) The products subject to the 
    detergent program PTD requirements are gasoline, detergent additives, 
    and additized components, such as ethanol, which are blended into 
    gasoline after the refinery process (additized post-refinery 
    components, or ``PRC''). For transfers of these regulated products, the 
    PTDs must identify the parties to the transfer, the product being 
    transferred, and appropriate warning information about regulatory 
    requirements.
        One requirement is that PTDs for transferred gasoline must identify 
    all oxygenates and PRCs contained in the gasoline. Further, if the 
    gasoline is comprised of commingled fuels, all oxygenates and PRCs in 
    the fuels comprising the commingled product must be identified. (40 CFR 
    80.158(a)(5) and 80.171(a)(5)) The purpose of this identification 
    requirement is to alert the parties receiving the gasoline about the 
    oxygenates and PRCs in the received product. This information would be 
    useful to the recipient because, under the detergent certification 
    program, parties may choose to additize gasoline with a detergent whose 
    certification is restricted for use only with a specific oxygenate or 
    no oxygenate, or, in the case of fuel-specific certified detergents, 
    for use in gasoline without PRCs. Thus, parties choosing to use such 
    restricted-use detergents must know the oxygenate or PRC 
    (``oxygenate'') content of the gasoline they intend to additize with 
    these detergents. The PTD oxygenate identification requirement was 
    intended to provide such information for the transferred gasoline.
        In creating this identification requirement, the Agency was not 
    aware that many parties did not know the specific oxygenate content of 
    the gasoline they were transferring. EPA has since learned that, under 
    typical industry practice prior to this requirement, parties could and 
    did commingle gasolines without knowledge of what (if any) specific 
    ethers (a type of oxygenate) were present. Under the interim detergent 
    rule's PTD requirements, no information about the oxygenate content of 
    base gasoline was required. Parties were thus typically unaware of the 
    specific ether content (in type(s) and concentration) of commingled 
    gasoline they received or possessed themselves. To comply with this new 
    oxygenate identification requirement and to become knowledgeable about 
    the ether status of their gasoline, parties would have to ascertain the 
    ether content of received gasoline (which would be the imposition of a 
    new practice), stop commingling gasolines with different ether 
    contents, or start testing all batches to determine such content. In 
    any of these scenarios, gasoline distribution as presently practiced 
    would be significantly disrupted.
        It was never EPA's intention to disrupt gasoline distribution 
    practices through the imposition of this PTD oxygenate identification 
    requirement. Consequently, the Agency temporarily suspended enforcement 
    of this PTD requirement.
    
    B. Proposal
    
        EPA does not believe that the benefits from the PTD requirement of 
    providing oxygenate information to those parties who might choose to 
    use oxygenate-restricted certified detergents warrants the resulting 
    disruption to the gasoline distribution system. Therefore, the Agency 
    is now proposing a regulatory change in the detergent program which 
    would eliminate the requirement that PTDs for gasoline must identify 
    the oxygenates found in the transferred product. Instead, a new 
    requirement would take its place, that those detergent-blending parties 
    wishing to use oxygenate-restricted detergents must maintain 
    documentation fully identifying the oxygenate content of the fuel into 
    which the detergent was blended, as evidence that the fuel complied 
    with the detergent's oxygenate use restriction.
        Under this proposal, a detergent blender could use different types 
    of documentation to comply with this new requirement. Examples of such 
    documentation would be PTDs or other written statements from suppliers 
    fully identifying the oxygenate content of the received fuel; test 
    results of oxygenate content, either of its own or from suppliers; or 
    contractual agreements with suppliers establishing the oxygenate 
    content of the received fuel.
        The proposed modification of the PTD requirement would not change 
    the existing requirement that detergent blenders use oxygenate-
    restricted detergents only in fuel which complies with the restriction. 
    The new requirement would merely substitute a range of alternative 
    documentation for the formerly required PTD information provided by the 
    supplier, that could be used to help a party establish proper usage of 
    oxygenate-restricted detergent. Therefore, adoption of this proposal 
    would not impose an additional information collection requirement, but 
    rather would refocus the existing requirement only on those parties who 
    have need of information on gasoline oxygenate content.
    
    [[Page 60055]]
    
        EPA was advised by the Independent Fuel Terminal Operators 
    Association (IFTOA) of a concern about this proposed 
    amendment.4 According to IFTOA, if suppliers will no longer 
    be required to identify on PTDs the oxygenate content of transferred 
    gasoline, then detergent blenders wishing to use potentially less 
    expensive oxygenate-restricted detergents might be forced to test each 
    batch of gasoline. IFTOA believed that such testing would be necessary 
    to establish compliance with the detergent's oxygenate restriction. 
    According to this commenter, these tests might be prohibitively 
    expensive for small detergent blenders. This party asserted it was 
    inequitable to place the entire burden of establishing oxygenate 
    content on the fuel's end-user.
    ---------------------------------------------------------------------------
    
        \4\ Memorandum to the Air Docket from Judith Lubow, OECA, 
    entitled, ``8/28/1996 EPA Phone Conversation with Andrea Grant of 
    the Independent Fuel Terminal Operators Association'', Docket Item 
    VII-E-01.
    ---------------------------------------------------------------------------
    
        The Agency believes that its proposal, as stated, is the most 
    appropriate and equitable means of ensuring proper oxygenate content of 
    product blended with oxygenate-restricted detergents, while limiting 
    disruption to the gasoline distribution system. The Agency's proposal 
    places the burden of procuring oxygenate information only on those 
    parties, self-selected, who will choose to use these restricted 
    detergents, not on the entire industry. In addition, although existing 
    data indicates that oxygenates increase gasoline deposit forming 
    tendency (severity) and that different oxygenates types might differ in 
    the magnitude of their impact on fuel severity, EPA has no specific 
    information on whether this will result in the use of oxygenate 
    restricted detergents. Since there are many generic detergents 
    available that are not oxygenate use-restricted, parties not wishing to 
    meet the documentation burden by performing oxygenate testing could 
    also choose to use non-oxygenate restricted detergents.
        In addition, self-performed oxygenate testing is only one of 
    several ways that a detergent blender could use to comply with the 
    proposed oxygenate identification requirement. Other means specifically 
    approved by the proposed regulation include obtaining full information 
    about oxygenate content from the gasoline supplier, and having a 
    contract with the supplier which establishes the oxygenate content of 
    the supplied gasoline. Use of these alternative methods would generally 
    preclude the need for oxygenate testing by the detergent blender 
    itself.
        For these reasons, the Agency does not believe that the proposed 
    removal of the PTD oxygenate identification requirement puts an unfair 
    burden on end-users of oxygenate-restricted detergents. On the 
    contrary, the proposed oxygenate documentation requirement regarding 
    the volumetric accounting reconciliation records (VAR) maintained by 
    detergent blenders, which would only be triggered when an oxygenate-
    restricted detergent is being used by the blender, seems the most 
    equitable means of identifying oxygenates while ensuring proper 
    additization with oxygenate-restricted detergents. However, the Agency 
    is interested in receiving comments from interested parties on any 
    other reasonable procedure that would equitably ensure proper oxygenate 
    identification and resultant additization compliance for oxygenate-
    restricted detergents, while limiting disruption to the gasoline 
    distribution system.
    
    IV. Product Codes as Substitutes for Warning Language on Certain Base 
    Gasoline PTDs
    
    A. Background
    
        It is common practice in the petroleum industry to use product 
    codes on commercially prepared transfer documents to provide 
    information about the product being transferred. Industry uses these 
    product codes to save space on the transfer documents, which typically 
    provide a great deal of information. The interim detergent rule did not 
    address the use of product codes or other non-regulatory language as 
    substitutes for required regulatory language in fulfilling PTD 
    requirements. In response to industry comments, the interim program was 
    amended to include a provision similar to one in the certification 
    program which addresses this issue. In most instances, the requirements 
    under both the certification and interim programs permit the use of 
    product codes or other non-regulatory language to be substituted for 
    required product identification information, provided certain accuracy 
    safeguards are met, such as that the codes are clear, standardized, and 
    have been explained to downstream parties. (40 CFR 80.158(c) and 
    80.171(b))
        The requirements under interim and certification programs do not, 
    however, permit the use of product codes or other non-regulatory 
    language to be used in place of required warning language about non-
    additized, base gasoline. The required warning language, found in 40 
    CFR 80.158(a)(6) and 80.171(a)(6), informs the transferee in specified 
    language that the base gasoline either is not for sale to the ultimate 
    consumer, or is for research and development purposes only. At the time 
    the certification rule was published, the Agency believed that these 
    warnings were too important to be the subject of coded language 
    substitutions.
        After the issuance of the final certification rule, the Agency was 
    notified by Colonial Pipeline that the regulatory prohibition against 
    using product codes to substitute for the base gasoline language 
    warning against the sale of the product to the ultimate consumer was 
    burdensome and was not necessary for transfers between upstream 
    parties.5 This commenter stated that its upstream customers 
    were familiar with product code usage and would not be confused by the 
    substitution of product codes for the base gasoline warning language. 
    This commenter believed that providing the warning language in addition 
    to providing the base gasoline product code was redundant and 
    unnecessarily wasteful of needed PTD space.
    ---------------------------------------------------------------------------
    
        \5\ Memorandum to the Air Docket from Judith Lubow, OECA, 
    entitled, ``10/24/1996 and 12/2/1996 Phone Conversations with J.E. 
    Brown of Colonial Pipeline'', Docket Item VII-E-02.
    ---------------------------------------------------------------------------
    
    B. Proposal
    
        Upon consideration of this comment, the Agency now agrees that the 
    prohibition against substituting a product code for the required base 
    gasoline warning language is not necessary for upstream bulk transfers 
    of ordinary base gasoline which is not subject to the research and 
    development exemption. The Agency agrees that upstream parties, long 
    accustomed to the use of product codes to identify product information, 
    should find such codes satisfactory conveyors of the needed base 
    gasoline information. This is especially true since gasoline is almost 
    always unadditized before it reaches the truck rack terminal, so 
    confusion about its status is unlikely.
        However, the Agency is still concerned that the lack of such clear 
    warning language on PTDs for downstream custody transfers of 
    unadditized product to truck carriers, retail outlets, or wholesale 
    purchaser-consumer facilities (WPCs), might cause confusion about 
    product transfers and might result in mis-use of the unadditized 
    product. Agency enforcement experience has also shown that such 
    downstream parties are not always knowledgeable about the meaning of 
    product codes on received PTDs. Further, the Agency continues to 
    believe that base gasoline being used for
    
    [[Page 60056]]
    
    research and development purposes, being a special category of product 
    exempt from the ordinary requirements of the detergent program, must 
    continue to be identified as such in clear language.
        Therefore, the Agency is today proposing that product codes and 
    other non-regulatory language may be used to substitute on PTDs for the 
    required base gasoline warning language, with two exceptions: (1) 
    transferors must continue to provide the regulatory warning language 
    against sale to the ultimate consumer on PTDs for product custody 
    transfers to truck carriers, retail outlets, or WPCs; and (2) the 
    warning language as to exclusive research use must continue to be 
    provided on PTDs for all transfers of research base gasoline. The 
    Agency believes that this proposal will lessen paperwork burdens on the 
    upstream parties who would not be confused by the product codes, and 
    will maintain the specific warning language requirement for downstream 
    parties most in need of seeing the exact language, and for all 
    transfers of base gasoline for research purposes.
    
    V. Public Participation
    
        EPA seeks full public participation in arriving at its final 
    decisions, and strongly encourages comments on all aspects of this 
    proposal from all interested parties, including small businesses. 
    Whenever applicable, full supporting data and detailed analysis should 
    be submitted to allow EPA to make maximum use of the comments. All 
    comments should be directed to the EPA Air Docket, Docket No. A-91-77 
    (see ADDRESSES). Comments on this notice will be accepted until the 
    date specified in DATES. EPA has not planned a public hearing to 
    discuss the issues raised in this proposal.
        Commenters wishing to submit proprietary information for 
    consideration should clearly distinguish such information from other 
    comments, and clearly label it ``Confidential Business Information''. 
    Submissions containing such proprietary information should be sent 
    directly to the contact person listed above, and not to the public 
    docket, to ensure that proprietary information is not inadvertently 
    placed in the docket. Information covered by such a claim of 
    confidentiality will be disclosed by EPA only to the extent allowed and 
    by the procedures set forth in 40 CFR Part 2. If no claim of 
    confidentiality accompanies the submission when it is received by EPA, 
    it may be made available to the public without further notice to the 
    commenter.
    
    VI. Environmental and Economic Impacts
    
        The proposed revisions to the product transfer document (PTD) 
    requirements would provide an equal degree of assurance to the current 
    requirements that specially-certified detergent additives would only be 
    used in gasoline stocks for which these detergents are certified for 
    use. Therefore, the proposed requirements are not expected to impact 
    the environmental benefits of the detergent program.
        Under the first proposal, documentation on the specific oxygenate 
    content of gasolines is only required to be maintained by those parties 
    who have a direct interest in such information to support their 
    voluntary use of specially-certified oxygenate-restricted detergents in 
    that gasoline. It would no longer be required that all regulated 
    parties transferring gasoline must indicate gasoline oxygenate content 
    on the PTD for the product. Adoption of this proposal would avoid the 
    potentially significant disruption of the current gasoline distribution 
    system which might result from the current regulatory requirement of 
    PTD oxygenate identification for all transfers of gasoline.
        Establishing the oxygenate information as proposed is not expected 
    to result in significant economic hardship to downstream parties who 
    wish to voluntarily use oxygenate-restricted detergents. Placing the 
    responsibility of establishing information on the specific oxygenate 
    content of gasoline only on such detergent blending parties will 
    eliminate unnecessary costs that would otherwise be incurred by others 
    in the distribution system.
        The second proposed change to the PTD requirements would provide 
    industry additional flexibility by permitting the use of product codes 
    rather than the currently-required regulatory warning language on PTDs 
    for certain transfers of base gasoline. EPA expects that adoption of 
    this proposal would decrease the cost of producing and maintaining 
    PTDs. Based on the above discussion, EPA expects that adoption of the 
    proposed requirements would result in an overall reduction in the 
    economic burden of the regulation.
    
    VII. Administrative Requirements
    
    A. Administrative Designation
    
        Under Executive Order 12866 (58 FR 51735, Oct. 4, 1993), the Agency 
    must determine whether this regulatory action is ``significant'' and 
    therefore subject to OMB review and the requirements of the Executive 
    Order. The order defines ``significant regulatory action'' as any 
    regulatory action that is likely to result in a rule that may:
        (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.
        Pursuant to the terms of Executive Order 12866, EPA has determined 
    that the proposed modifications to the regulation of deposit control 
    additives contained in today's notice do not meet any of the criteria 
    listed above, and therefore do not constitute a ``significant 
    regulatory action''.
    
    B. Impact on Small Entities
    
        EPA has determined that the proposed modifications to the 
    regulation of deposit control additives contained in today's notice 
    would not have a significant economic impact on a substantial number of 
    small entities, and that it is therefore not necessary to prepare a 
    regulatory flexibility analysis in conjunction with this proposal.
        Under the proposed requirements in today's notice, rather than 
    requiring all parties in the gasoline distribution system to report the 
    specific oxygenate content of gasoline on product transfer documents as 
    under the current requirements (which would typically require testing 
    for oxygenates and would disrupt current gasoline commingling 
    practices), only those parties who wish to voluntarily take advantage 
    of the potential cost savings from the use of specially-certified 
    oxygenate-restricted detergents would be required to produce such 
    information. A detergent blender who does not wish to incur this 
    requirement could use any generic-certified detergent (i.e., detergents 
    that do not have use restrictions).
        Other proposed changes to the product transfer document (PTD) 
    requirements would provide industry more flexibility by allowing the 
    use of product codes rather than regulatory
    
    [[Page 60057]]
    
    warning language for certain upstream transfers of base gasoline not 
    used for research purposes. This added flexibility is expected to 
    decrease the cost of producing and maintaining PTDs for most regulated 
    parties who transfer base gasoline. Based on the above discussion, EPA 
    expects that adoption of the proposed requirements in today's notice 
    would result in a reduction of the economic burden of the regulation 
    for many parties and would not significantly increase the economic 
    burden of compliance for any regulated party, including small entities.
    
    C. Paperwork Reduction Act
    
        The proposed actions in today's notice do not impose any new 
    information collection burden. The first proposal would eliminate the 
    existing requirement that product transfer documents (PTDs) for 
    gasoline must identify the oxygenates present. Under the proposal, a 
    range of alternative documentation could be used by the detergent 
    blender to help establish the specific oxygenate content of gasoline in 
    order to allow the optional use of oxygenate-restricted detergents 
    rather than generic detergents (which do not have oxygenate 
    restrictions). No new information collection requirements would result 
    from implementation of this proposal. To the contrary, the proposed 
    change would eliminate a compliance burden from the majority of 
    regulated parties, while continuing to allow blenders to choose to use 
    oxygenate-restricted detergents.
        The second proposal would allow greater flexibility to industry by 
    allowing the use of product codes on certain non-research base gasoline 
    PTDs rather than the currently required warning language. The 
    information collection requirements associated with this provision 
    would not change. The increased flexibility is expected to result in a 
    reduced compliance burden.
        The Office of Management and Budget (OMB) has previously approved 
    the information collection requirements of the Regulation of Deposit 
    Control Additives contained in 40 CFR Part 80 under the provisions of 
    the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and has assigned 
    OMB control number 2060-0275(EPA ICR Numbers 1655-01, 1655-02, and 
    1655-03).
        Burden means the total time, effort, or financial resources 
    expended by persons to generate, maintain, retain, or disclose or 
    provide information to or for a Federal agency. This includes the time 
    needed to review instructions; develop, acquire, install, and utilize 
    technology and systems for the purposes of collecting, validating, and 
    verifying information, processing and maintaining information, and 
    disclosing and providing information; adjust the existing ways to 
    comply with any previously applicable instructions and requirements; 
    train personnel to be able to respond to a collection of information; 
    search data sources; complete and review the collection of information; 
    and transmit or otherwise disclose the information.
        Copies of the ICR documents may be obtained from Sandy Farmer, 
    Information Policy Branch; EPA; 401 M St., SW. (mail code 2136); 
    Washington, DC 20460 or by calling (202) 260-2740. Include the ICR and/
    or OMB number in any correspondence.
    
    D. Unfunded Mandates Reform Act
    
        Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
    Law 104-4, establishes requirements for Federal agencies to assess the 
    effects of their regulatory actions on State, local, and tribal 
    governments and the private sector. Under section 202 of the UMRA, EPA 
    generally must prepare a written statement, including a cost-benefit 
    analysis, for proposed and final rules with ``Federal mandates'' that 
    may result in expenditures to state, local, and tribal governments, in 
    the aggregate, or to the private sector, of $100 million or more for 
    any one year.
        Before promulgating an EPA rule for which a written statement is 
    needed, section 205 of the UMRA generally requires EPA to identify and 
    consider a reasonable number of regulatory alternatives and adopt the 
    least costly, most cost effective, or least burdensome alternative that 
    achieves the objectives of the rule. The provisions of section 205 do 
    not apply when they are inconsistent with applicable law. Moreover, 
    section 205 allows EPA to adopt an alternative other than the least 
    costly, most cost effective, or least burdensome alternative if the 
    Administrator publishes with the final rule an explanation of why that 
    alternative was not adopted.
        Before EPA establishes any regulatory requirements that may 
    significantly or uniquely affect small governments, including tribal 
    governments, it must have developed under section 203 of the UMRA a 
    small government agency plan. The plan must provide for notifying 
    potentially affected small governments, enabling officials of affected 
    small governments to have meaningful and timely input in the 
    development of EPA regulatory proposals with significant Federal 
    intergovernmental mandates, and informing, educating, and advising 
    small governments on compliance with the regulatory requirements.
        Today's proposed revisions to the Regulation of Gasoline Deposit 
    Control Additives contains no Federal mandates (under the regulatory 
    provisions of Title II of the UMRA) for State, local, or tribal 
    governments. The proposed revisions impose no enforceable duties on any 
    of these governmental entities. Nothing in the proposal would 
    significantly or uniquely affect small governments. EPA has determined 
    that the provisions in today's proposal do not contain Federal mandates 
    that will result in expenditures of $100 million or more in any one 
    year for the private sector. To the contrary, EPA expects the proposed 
    changes would result in reduced compliance costs. EPA believes that the 
    proposed regulatory changes represent the least costly, most cost-
    effective approach to addressing implementation concerns expressed by 
    industry, while achieving the air quality goals of the gasoline 
    detergent program.
    
    VIII. Statutory Authority
    
        The statutory authority for the proposed actions in this notice is 
    granted to EPA by sections 114, 211(a), (b), (c), and (l), and 301 of 
    the Clean Air Act as amended: 42 U.S.C. 7414, 7545 (a), (b), (c) and 
    (l), and 7601.
    
    List of Subjects in 40 CFR Part 80
    
        Environmental protection, Fuel additives, Gasoline detergent 
    additives, Gasoline, Motor vehicle pollution, Penalties, Reporting and 
    recordkeeping requirements.
    
        Dated: October 30, 1997.
    Carol M. Browner,
    Administrator.
    
        For the reasons set forth in the preamble, part 80 of title 40 of 
    the Code of Federal Regulations is proposed to be amended as follows:
    
    PART 80--[AMENDED]
    
        1. The authority citation for part 80 continues to read as follows:
    
        Authority: Sections 114, 211 and 301(a) of the Clean Air Act as 
    amended (42 U.S.C. 7414, 7545, and 7601(a)).
    
        2. Section 80.158 is amended as follows:
        a. Paragraph (a)(5) is removed.
        b. Paragraphs (a)(6) through (a)(10) are redesignated as paragraphs 
    (a)(5) through (a)(9).
        c. Paragraph (c)(1) is revised to read as follows:
    
    
    Sec. 80.158  Product Transfer Documents (PTDs)
    
    * * * * *
        (c) Use of product codes and other non-regulatory language.
    
    [[Page 60058]]
    
        (1) Product codes and other non-regulatory language may not be used 
    as a substitute for the specified PTD warning language specified in 
    paragraph (a)(6) of this section for custody transfers of base gasoline 
    to truck carriers, retail outlets, and wholesale purchaser-consumer 
    facilities or for transfers of exempt base gasoline to be used for 
    research, development, or test purposes.
    * * * * *
        3. Section 80.170 is amended by adding a new paragraph (f)(7) to 
    read as follows:
    
    
    Sec. 80.170  Volumetric additive reconciliation (VAR), equipment 
    calibration, and recordkeeping requirements.
    
    * * * * *
        (f) * * *
        (7) If a detergent blender uses an oxygenate -or PRC-restricted 
    certified detergent to additize fuel, documentation must be maintained 
    by that blender fully identifying the oxygenate and/or PRC (as 
    applicable) content of the fuel into which the oxygenate or PRC-
    restricted detergent was blended, so as to confirm or to substantially 
    confirm that the fuel into which the restricted detergent was blended 
    complied with the use restriction. Documentation which may be used to 
    fulfill this requirement includes, but is not limited to: PTD(s) from 
    the fuel supplier identifying all the oxygenates or PRC (as 
    appropriate) in the fuel; test results identifying all the oxygenates 
    or PRC (as appropriate) in the fuel; written contract language between 
    the supplier and the blender establishing the complete oxygenate and/or 
    PRC (as appropriate) content of the supplied fuel.
    * * * * *
        4. Section 80.171 is amended as follows:
        a. Paragraph (a)(5) is removed.
        b. Paragraphs (a)(6) through (12) are redesignated as paragraphs 
    (a)(5) through (a)(11).
        c. Paragraph(b)(1) is revised to read as follows:
    
    
    Sec. 80.171  Product Transfer Documents (PTDs)
    
    * * * * *
        (b) Use of product codes and other non-regulatory language.
        (1) Product codes and other non-regulatory language may not be used 
    as a substitute for the PTD warning language specified in paragraph 
    (a)(6) of this section for custody transfers of base gasoline to truck 
    carriers, retail outlets, and wholesale purchaser-consumer facilities, 
    or for transfers of exempt base gasoline to be used for research, 
    development, or test purposes.
    * * * * *
    [FR Doc. 97-29390 Filed 11-5-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
11/06/1997
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking (NPRM).
Document Number:
97-29390
Dates:
Comments on this NPRM will be accepted until December 8, 1997. Additional information on the comments procedure can be found under ``Public Participation'' in the Supplementary Information Section of this document.
Pages:
60052-60058 (7 pages)
Docket Numbers:
AMS-FRL-5917-8
PDF File:
97-29390.pdf
CFR: (3)
40 CFR 80.158
40 CFR 80.170
40 CFR 80.171