96-9176. Approval of Colorado's Petition To Relax the Federal Gasoline Reid Vapor Pressure Volatility Standard for 1996 and 1997  

  • [Federal Register Volume 61, Number 73 (Monday, April 15, 1996)]
    [Rules and Regulations]
    [Pages 16391-16396]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-9176]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 80
    
    [FRL-5457-5]
    
    
    Approval of Colorado's Petition To Relax the Federal Gasoline 
    Reid Vapor Pressure Volatility Standard for 1996 and 1997
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Direct final rulemaking.
    
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    [[Page 16392]]
    
    SUMMARY: The Environmental Protection Agency (``EPA'' or the 
    ``Agency'') is issuing as a direct final rule its limited approval of 
    the State of Colorado's petition to relax the Reid Vapor Pressure (RVP) 
    standard that applies to gasoline introduced into commerce in the 
    Denver-Boulder ozone nonattainment area from June 1 to September 15. 
    The standard is to be relaxed from 7.8 pounds per square inch (psi) to 
    9.0 psi for the years 1996 and 1997. Pursuant to the Clean Air Act 
    Amendments of 1990, Federal RVP standards were promulgated by EPA on 
    June 11, 1990 and revised on December 12, 1991. Colorado's petition is 
    based on evidence that the Denver-Boulder area does not need the 7.8 
    psi standard to maintain ozone attainment in the near term and that the 
    7.8 psi standard would impose significant costs on industry and 
    consumers. Colorado's petition requests a continuation of previous 
    relaxations of the RVP standard. Prior to today's action, EPA has 
    approved relaxations for the past four years, from 1992 through 1995.
        This action is being taken without prior notice because EPA 
    believes that this rulemaking is noncontroversial due to the limited 
    scope of this rulemaking, Colorado's continued attainment of the ozone 
    standard and for the reasons discussed in this document.
    
    DATES: This action will be effective on May 30, 1996 unless EPA 
    receives adverse or critical comments by May 15, 1996. If EPA receives 
    adverse comments by that date, EPA will withdraw this action by 
    publishing a document in the Federal Register. In a separate action 
    published today, EPA is concurrently proposing approval of Colorado's 
    petition to relax the Reid Vapor Pressure standard. All correspondence 
    should be directed to the addresses shown below.
    
    ADDRESSES: Materials relevant to this rulemaking have been placed in 
    Docket A-96-10 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 reasonable fee may be 
    charged for copying docket material.
        Comments should be submitted (in duplicate if possible) to the Air 
    Docket Section at the above address. 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 202-233-9029 at the above address.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On August 19, 1987, EPA proposed a two-phase national program to 
    reduce summertime gasoline volatility.1 EPA found that gasoline 
    had become increasingly volatile, which caused an increase in 
    evaporative emissions from gasoline powered sources. These emissions 
    are volatile organic compounds (VOCs), a precursor of ozone and a major 
    contributor to the nation's serious ground level ozone problem, which 
    results in harm to human health and to the public welfare. The Agency 
    published a Notice of Final Rulemaking on March 22, 1989 that put into 
    place Phase I of the program to require VOC reductions available 
    through refining changes that could be accomplished by the beginning of 
    the 1989 summer ozone season.2 The Phase II volatility standards 
    were finalized on June 11, 1990 3 and were to go 4 into 
    effect May 1, 1992.4 5
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        \1\ 52 FR 31274 (August 16, 1987).
        \2\ 54 FR 11868 (March 22, 1989).
        \3\ 55 FR 23658 (June 11, 1990).
        \4\ As described in greater detail below, EPA re-promulgated the 
    Phase II regulations to incorporate changes in the federal RVP 
    program as directed by the Act.
        \5\ For further detail, see the previous notice relaxing the 
    Colorado RVP standard. 59 FR 15629 (April 4, 1994).
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        The Clean Air Act Amendments of 1990 (``CAA'' or ``the Act''), 
    however, established new requirements for the fuel volatility program. 
    Section 211(h) of the Act required that EPA modify the Phase II fuel 
    volatility program. Section 211(h)(1) requires that EPA 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 as defined by the Administrator. It further provides that EPA 
    shall establish more stringent RVP standards in nonattainment areas if 
    EPA finds such standards are ``necessary to generally achieve 
    comparable evaporative emissions reductions (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.'' The Act also allows EPA to impose an RVP standard lower than 
    9.0 psi in any former ozone nonattainment area that is redesignated to 
    attainment.
        On May 29, 1991, EPA published a Notice of Proposed Rulemaking 
    which modified the Phase II summer ozone volatility standards to 
    reflect new section 211(h) of the Act.6 In this document, EPA 
    proposed that, beginning in 1992, the RVP standard would be 9.0 psi in 
    all attainment areas where this standard was not already in place. This 
    would prohibit the sale of gasoline with a RVP above 9.0 psi during the 
    summer ozone season in all areas designated attainment for ozone, 
    beginning in 1992. For areas designated as nonattainment, EPA proposed 
    to retain the original Phase II standards published on June 11, 1990. 
    On December 12, 1991, EPA finalized these modifications.7
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        \6\ 56 FR 24242 (May 29, 1991).
        \7\ 56 FR 64704 (December 12, 1991).
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        The Denver-Boulder metropolitan area is designated nonattainment 
    for the ozone NAAQS. 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 finalized 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 its ozone nonattainment 
    designations in the Federal Register pursuant to section 107(d)(1)(C) 
    of the Act. In that document, EPA designated the Denver-Boulder 
    nonattainment area to be a ``transitional area'' as determined under 
    section 185A of the Act. A transitional area is ``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.''
        As stated in the preamble for the Phase II volatility controls 
    8 and reiterated in the proposed change to the volatility 
    standards published on May 29, 1991,9 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,
    
    [[Page 16393]]
    
    within the statutory limits. The Governor of a state may petition EPA 
    to set a less stringent volatility standard for some month or months. 
    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 Standards (NAAQS).
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        \8\ The Phase II final rulemaking established procedures by 
    which states could petition EPA for more or less stringent 
    volatility standards. 55 FR 23660 (June 11, 1980).
        \9\ 56 FR 24242 (May 29, 1991).
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    II. Previous EPA Approvals of Colorado's Petitions
    
    A. Petition for 1992 and 1993
    
        On October 16, 1991, Governor Roy Romer requested that EPA amend 
    the federal RVP standards for the Denver-Boulder ozone nonattainment 
    area to relax the 7.8 psi standard to 9.0 psi for 1992 and 1993. The 
    Governor further requested that the 7.8 psi standard take effect 
    beginning in June 1994, unless the State of Colorado specifically 
    requested via the Colorado Ozone Maintenance State Implementation (SIP) 
    plan that the 9.0 psi standard be retained.
        On May 12, 1992, EPA proposed approval of Colorado's petition to 
    relax until 1994 the gasoline volatility standard for the Denver-
    Boulder nonattainment area to 9.0 psi. EPA found the request justified 
    based on the petition itself, the evidence of the costs of 
    implementation of the 7.8 psi standard and the environmental need for 
    the 7.8 psi standard. The petition and available evidence sufficiently 
    demonstrated that retention of the 7.8 psi standard would impose 
    significant costs on consumers and industry relative to a 9.0 psi 
    standard, and that the 7.8 psi standard was not necessary for emission 
    control until 1994 in light of the current transitional status of the 
    Denver-Boulder area. EPA also determined that a demonstration by 
    Colorado that sufficient alternative programs were in place to insure 
    future attainment of the ozone standard was not necessary due to the 
    State's consistent attainment of the ozone NAAQS since 1986. Finally, 
    Colorado assured EPA that a two-year relaxation of the standard would 
    provide sufficient time for the State to complete an ozone maintenance 
    plan. Such a plan would allow the State to determine if 7.8 psi 
    gasoline was necessary for continued attainment in future years. Thus, 
    at that time, the State could determine if a permanent change in the 
    standard was appropriate. EPA finalized the relaxation of the standard 
    on April 30, 1993. (For further details, see 53 FR 26067, April 30, 
    1993.)
    
    B. Petition for 1994 and 1995
    
        On September 15, 1993, Governor Roy Romer again requested that EPA 
    amend the federal RVP standard for the Denver-Boulder nonattainment 
    area to extend the relaxation of the RVP standard of 7.8 psi to 9.0 psi 
    to cover the years 1994 and 1995. The Governor further requested that 
    the 7.8 psi standard take effect beginning in June of 1996, unless the 
    State of Colorado specifically requested, via the Colorado Ozone 
    Maintenance SIP, that the 9.0 psi standard be retained.
        As with the previous petition, the petition and available evidence 
    indicated that retention of the 7.8 psi standard would impose 
    significant costs on consumers and industry and that the 7.8 psi 
    standard was not necessary in the short term, given the current 
    transitional status of the Denver-Boulder area and the area's record of 
    continued attainment of the ozone standard.
        Because of the area's classification as transitional, EPA was 
    required to determine whether the area had in fact attained the ozone 
    standard by December 31, 1991. If the Administrator determined that the 
    area had attained the standard, the state was required to submit, 
    within twelve months of the determination, a maintenance plan meeting 
    the requirements of section 175A of the Act.10 In its 1993 
    petition, the Colorado Air Pollution Control Division (APCD) informed 
    EPA that the ozone maintenance plan had been delayed due to a lack of 
    staff resources, but that Colorado was committed to developing a 
    maintenance plan by early 1995.
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        \10\ On October 22, 1992, EPA Region VIII sent a letter to 
    Governor Romer stating that the Denver-Boulder transitional area had 
    not violated the ozone NAAQS during the period from January 1, 1987 
    to December 31, 1991.
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        Based on the foregoing, EPA issued a direct final rule on April 4, 
    1994, relaxing the federal RVP standard from 7.8 psi to 9.0 psi for the 
    years 1994 and 1995. For 1996, the standard would return to 7.8 psi. 
    (For further details about this action, see 59 FR 15629, April 4, 
    1994.)
    
    III. Discussion of Colorado's Petition to Relax the RVP Standard for 
    1996 and 1997
    
        On December 22, 1995, Govenor Roy Romer sent a letter to William 
    Yellowtail, Administrator of EPA Region VIII, requesting that EPA amend 
    the federal RVP standard for the Denver-Boulder nonattainment area to 
    permanently extend the relaxation of the RVP standard of 7.8 psi to 9.0 
    psi. Governor Romer specifically requested EPA to retain the 9.0 psi 
    standard for the 1996 and all future summers, unless the standard is 
    modified by the Colorado Ozone Maintenance State Implementation Plan 
    (SIP). Colorado is still in the process of redesignation from 
    nonattainment status for ozone to attainment status.
        Governor Romer's request results from specific resolutions signed 
    by the Chairman of the Colorado Air Quality Control Commission on 
    September 22, 1995, which endorsed a permanent relaxation of the RVP 
    standard based upon testimony provided at a public hearing on August 
    17, 1995, and after consideration of the environmental and economic 
    impact of the 7.8 psi federal standard. Documents pertaining to this 
    hearing are available in the docket for this rulemaking. In forwarding 
    this request to EPA, Governor Romer is following procedures stated in 
    the preamble for the Phase II volatility rule. Requests for changes to 
    the federal volatility standard must include the following:
        (1) documentation of the local economic impact of the otherwise 
    applicable standard, and, (2) an indication that sufficient alternative 
    programs are available to achieve attainment and maintenance of the 
    ozone NAAQS.
    
    A. Local Economic and Environmental Factors
    
        The petition and available evidence submitted indicate that 
    retention of the 7.8 psi standard would impose significant costs on 
    consumers and industry and that the 7.8 psi standard is not necessary 
    in the short term given the current transitional status of the Denver-
    Boulder area and the area's record of continued attainment of the ozone 
    standard. Documentation submitted by Colorado indicates that the costs 
    of implementing a 7.8 psi RVP standard (from the 9.0 psi standard which 
    has been in place for the past four years) would cost the consumer 
    about 1.1 cents more per gallon of gasoline and overall, would cost 
    over $3,000,000.
        In a letter of June 20, 1995, the local refinery industry states 
    that in the 1993 hearing before the Colorado Air Quality Control 
    Commission, they testified that imposing a 7.8 psi standard at that 
    time in the Denver-Boulder area would cause many refiners to make 
    irreversible capital improvements. They stated that these improvements 
    may not be needed if the maintenance SIP indicates 7.8 psi gasoline is 
    not needed to maintain ozone compliance. In addition, EPA notes that 
    because the rest of the Colorado market requires a 9.0 psi standard, 
    any refinery changes made in
    
    [[Page 16394]]
    
    order to comply with the 7.8 psi standard would be in response only to 
    the market demand in the Denver-Boulder area. In the June 20 letter, 
    representatives of the local refinery industry state that the cost 
    situation has not changed since 1993. In testimony presented at an 
    August 17, 1995 hearing before the Colorado Air quality Control 
    Commission, the Air Pollution Control Board (APCD) of the Colorado 
    Department of Health stated that these increased refinery costs would 
    vary among refiners.
        Minutes and other documentation from the hearing held before the 
    Colorado Air Quality Control Commission on August 17, 1995, by the Air 
    Pollution Control Board (APCD) of the Colorado Department of Health 
    indicate that the APCD supports a relaxation of the RVP standard. There 
    have been no monitored violations of the ozone NAAQS since 1986. The 
    APCD noted that the volatility standard for the Denver-Boulder 
    nonattainment area from 1992 through 1995 was 9.0 psi and no violations 
    of the standard were recorded. (However, there were single exceedances 
    of the ozone NAAQS at two monitoring stations during 1993 and one 
    exceedance at another in 1995.) The APCD also presented modelling data 
    showing that the mobile source VOC inventory should decrease over the 
    relevant period, even with projected increases in vehicle miles 
    travelled (VMT). The APCD concluded that the Denver-Boulder area would 
    be able to continue attainment of the ozone standard for 1996 and 1997 
    with 9.0 psi RVP gasoline.
    
    B. Sufficient Alternative Programs
    
        Because Colorado has not violated the ozone standard since 1986, 
    EPA does not believe it is necessary for the State to show that 
    sufficient alternative programs are in place to provide for attainment 
    of the ozone NAAQS. EPA approved the Ozone State Implementation Plan 
    (SIP) for the Denver-Boulder area in 1983.11 This plan relied upon 
    emission reductions from the Federal Motor Vehicle Control Program and 
    an Inspection and Maintenance Program to provide for attainment of the 
    ozone NAAQS by the statutory deadline of December 31, 1987. Since the 
    beginning of 1986, none of the area's several ozone air quality 
    monitors has recorded a violation of the ozone NAAQS. Because the 
    available data showed no violations, EPA did not require the State to 
    submit a revised Ozone SIP in 1988 during EPA's nationwide ozone SIP 
    evaluation. As noted above, the area is currently classified as a 
    ``transitional'' area under section 185(A) of the Act. Under these 
    circumstances, Colorado need not provide for alternative ozone control 
    programs in order to obtain a relaxation of the RVP standard to 9.0 
    psi.
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        \11\ 48 FR 55284 (December 12, 1983).
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    C. Maintenance Plan
    
        According to Colorado's 1991 petition, the APCD was to have 
    completed an ozone maintenance plan for the Denver area by June of 
    1993. The maintenance plan is necessary in order for EPA to redesignate 
    the area as having attained the ozone standard.12 At the hearing 
    on the 1993 petition, the Commission raised questions regarding the 
    inability of the APCD to complete the ozone maintenance plan on time. 
    At that time, the APCD testified that due to resource limitations 
    caused by programmatic obligations under the Act, an ozone maintenance 
    plan assumed a lower priority and could not be completed by the June 
    1993 deadline. The APCD then concluded that with a two-year extension 
    of the relaxed RVP standard, a maintenance plan could be developed and 
    submitted to EPA for approval in early 1995.
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        \12\ An ozone maintenance plan that demonstrates long term (10 
    years) maintenance of the ozone NAAQS must be developed by the state 
    before an area can be redesignated to attainment.
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        While there were additional delays, the APCD has now developed a 
    maintenance plan which has been proposed for public hearing by the 
    Commission. The public hearing date and date of consideration by the 
    Commission is scheduled for March 21, 1996. The Commission is expected 
    to adopt the maintenance plan on that date and request that Governor 
    Romer forward a redesignation request, including the maintenance plan, 
    to EPA for approval thereafter. A copy of the maintenance plan as 
    proposed for public hearing is available in the docket for this 
    rulemaking.
    
    IV. EPA's Final Action
    
    A. Relaxation of Colorado's RVP Standard for 1996 and 1997
    
        EPA is approving as a direct final rule the State of Colorado's 
    request to relax the federal volatility standard for the Denver-Boulder 
    nonattainment area from the current standard of 7.8 psi to 9.0 psi. 
    Colorado requested relaxation of the standard for the 1996 and all 
    future summers. EPA is only approving this relaxation, however, for two 
    years: 1996 and 1997. EPA cannot approve a permanent change in the RVP 
    standard until Colorado demonstrates that it can maintain compliance 
    with the ozone standard. Colorado has developed a maintenance plan 
    which, with its ozone redesignation request, the State expects to 
    submit to EPA for approval in the near future. Section 211(h) of the 
    Act requires EPA to promulgate regulations that shall establish RVP 
    standards in a nonattainment area that are more stringent than 9.0 psi 
    ``as the Administrator finds 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.'' Based on 
    Colorado's petition and supporting evidence, EPA believes that the 
    requested relaxation of the standard is justified for a limited two-
    year time period.
        The petition and available evidence indicate that retention of the 
    7.8 psi standard would impose significant costs on consumers and 
    industry and that the 7.8 psi standard is not necessary in the short 
    term given the current transitional status of the Denver-Boulder area 
    and the area's record of continued attainment of the ozone standard. 
    Colorado has submitted testimony regarding the costs of implementing a 
    7.8 psi RVP standard which states that a savings of over $3,000,000 
    would be realized in the Denver-Boulder area during the summer ozone 
    season based on a savings of approximately 1.1 cents per gallon. This 
    savings is reasonably close to the savings EPA predicted in the cost 
    analysis it performed on Colorado's 1991 petition, and circumstances 
    have not changed significantly in the interim.13 EPA believes, 
    therefore, that retention of the 7.8 psi standard would impose 
    significant costs on consumers and industry relative to a 9.0 psi 
    standard.
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        \13\ A detailed analysis of the costs associated with the RVP 
    program in Colorado can be found in air docket A-92-08, created for 
    the proposal to grant Colorado's petition for relaxation for 1992 
    and 1993. 57 FR 20234 (May 12, 1992). This analysis estimated cost 
    savings of $3,500,000 to $4,000,000 in the Denver-Boulder area 
    during the ozone season.
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        Moreover, EPA agrees with Colorado that the Denver-Boulder area 
    will not need a 7.8 psi standard to comply with the ozone NAAQS in the 
    next two years. The area has not violated the standard since 1986. 
    Since this time, summertime gasoline volatility has been reduced 
    significantly through the implementation of Phase I and Phase II of the 
    federal RVP standards. Moreover, ongoing vehicle fleet turnover, as 
    well as several new requirements of the CAA (such as tighter tailpipe 
    standards, longer useful life definitions, on-board
    
    [[Page 16395]]
    
    diagnostic and refueling equipment, and enhanced inspection and 
    maintenance requirements) will continue to help control overall mobile 
    source emissions of VOCs.
        Although EPA believes that a short term relaxation of the RVP 
    standard will not cause a violation of the ozone NAAQS in the Denver-
    Boulder area, EPA is concerned regarding the area's long term 
    compliance. The Denver-Boulder area's growing population and increase 
    in vehicle miles travelled generate questions regarding whether 
    existing emission controls are sufficient to provide for maintenance of 
    the ozone NAAQS over the long term. Moreover, the area did experience 
    single exceedances during the 1993 and 1995 ozone seasons at three 
    monitoring stations. Therefore, the long term maintenance of the 
    standard in the Denver-Boulder area is in question. Until Colorado 
    demonstrates that it can maintain compliance with the ozone NAAQS over 
    the long term, as should be shown in its upcoming maintenance plan, EPA 
    could not approve a permanent change in the RVP standard for the 
    Denver-Boulder area.
        As previously stated, Colorado is developing a maintenance plan for 
    the Denver-Boulder area, which should be completed during the two year 
    period of this relaxation of the RVP standard. The maintenance plan 
    must show that the ozone standard will be maintained for a period of at 
    least ten years. The development of this maintenance plan will give 
    Colorado an opportunity to conduct a comprehensive air quality 
    modelling exercise to determine what control measures will be necessary 
    to provide for long term maintenance of the ozone NAAQS. Along with the 
    existing SIP measures, tighter gasoline volatility and other strategies 
    will be evaluated to determine the most appropriate and cost-effective 
    strategy for maintaining the NAAQS. Today's action should provide 
    Colorado with sufficient time to complete an ozone maintenance plan and 
    the redesignation of the Denver-Boulder area to attainment.
        While the maintenance plan is being developed, EPA believes that 
    air quality will be protected by the ongoing control programs. The 
    volatility standard for Denver-Boulder will drop to 7.8 psi in 1998 
    unless additional action by the Commission and the Governor, backed by 
    a comprehensive maintenance plan, is taken to extend the 9.0 psi 
    standard.
    
    B. Direct Final Rulemaking
    
        This action is being taken without prior proposal because EPA 
    believes that this relaxation in the RVP regulation 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 a previously 
    approved relaxation in the RVP standard and will provide Colorado the 
    necessary time to complete an ozone maintenance plan, at which time a 
    long term projection will be made regarding the need for a more 
    stringent RVP standard.
        This action will be effective 45 days from the date of this Federal 
    Register document, unless adverse or critical comments are received 
    within 30 days of today's document. If EPA receives such comments, this 
    action will be withdrawn by publishing a subsequent document in the 
    Federal Register. All public comments in this regard 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 
    elsewhere in today's Federal Register. No second comment period on this 
    action will be instituted. If no such comments are received, this 
    action will be effective May 30, 1996.
    
    V. Environmental Impact
    
        The proposed amendment is not expected to have any adverse 
    environmental effects. The Denver-Boulder six county nonattainment area 
    has met the NAAQS since 1986. Current air quality is expected to be 
    further maintained by a 9.0 psi standard for 1996 and 1997.
    
    VI. Economic Impact
    
        The proposed relaxation of the 7.8 psi standard to 9.0 psi will 
    result in a cost reduction in refining, and an increase in summertime 
    gasoline supply levels. For each summer, this translates into 
    approximately a 1.1 cent per gallon cost savings to consumers at the 
    pump.
    
    VII. Administrative Requirements
    
        Pursuant to the Regulatory Flexibility Act, 5 U.S.C. 601 through 
    612, EPA must prepare a regulatory flexibility analysis assessing the 
    impact of any proposed or final rule on small entities (i.e., small 
    businesses, small organizations and small governmental jurisdictions). 
    The Administrator may certify, however, that the rule will not have a 
    significant impact on a substantial number of small entities. In such 
    circumstances, a regulatory flexibility analysis is not required.
        Under Section 605 of the Regulatory Flexibility Act, I certify that 
    these regulations will not have a significant impact on a substantial 
    number of small entities. The regulatory revision is limited to the 
    Denver-Boulder area and should have no significant economic impact on a 
    substantial number of small entities. These regulations, therefore, do 
    not require a regulatory flexibility analysis.
        Under Executive Order 12886,14 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:
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        \14\ 58 FR 51735 (October 4, 1993).
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        (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.
        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 10 or more non-Federal 
    respondents. This direct final rule does not create any new information 
    requirements or contain any new information collection activities.
        Under Section 202 of the Unfunded Mandates Reform Act of 1995 
    (``Unfunded Mandates Act''), EPA must prepare a budgetary impact 
    statement to accompany any proposed or final rule that includes a 
    federal mandate that 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
    
    [[Page 16396]]
    
    205, EPA must select the most cost effective and least burdensome 
    alternative that achieves the objectives of the rule and is consistent 
    with statutory requirements. Section 203 requires EPA to establish a 
    plan for informing and advising any small governments that may be 
    significantly or uniquely impacted by the rule.
        EPA has determined that the regulatory relaxation in this action 
    does not include a federal mandate that may result in estimated costs 
    of $100 million or more to those entities mentioned above.
        The statutory authority for the action in this action today is 
    granted to EPA by Sections 211 and 301(a) of the Clean Air Act as 
    amended (42 U.S.C. 7545 and 7601(a)).
    
    List of Subjects in 40 CFR Part 80
    
        Environmental protection, Administrative practice and procedures, 
    Air pollution control, Fuel additives, Gasoline, Motor vehicle 
    pollution, Motor vehicle and motor vehicle engines, Penalties, 
    Reporting and recordkeeping requirements.
    
        Dated: April 4, 1996.
    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 the table in paragraph (a)(2) introductory text is 
    amended by revising the entry for Colorado 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        Sept   
    ----------------------------------------------------------------------------------------------------------------
                                                                                                                    
          *                   *                   *                   *                   *                   *     
    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 1997 in the Denver-Boulder nonattainment area will be 9.0 for June 1 through  
      September 15.                                                                                                 
    
    * * * * *
    [FR Doc. 96-9176 Filed 4-12-96; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
5/30/1996
Published:
04/15/1996
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Direct final rulemaking.
Document Number:
96-9176
Dates:
This action will be effective on May 30, 1996 unless EPA receives adverse or critical comments by May 15, 1996. If EPA receives adverse comments by that date, EPA will withdraw this action by publishing a document in the Federal Register. In a separate action published today, EPA is concurrently proposing approval of Colorado's petition to relax the Reid Vapor Pressure standard. All correspondence
Pages:
16391-16396 (6 pages)
Docket Numbers:
FRL-5457-5
PDF File:
96-9176.pdf
Supporting Documents:
» Legacy Index for Docket A-96-10
» Approval of Colorado's Petition To Relax the Federal Gasoline Reid Vapor Pressure Volatility Standard for 1996 and 1997 [A-96-10-II-A-7]
» Approval of Colorado's Petition to Relax the Federal Gasoline Reid Vapor Pressure Volatility Standard for 1996 and 1997 [A-96-10-II-A-8]
CFR: (1)
40 CFR 80.27