99-23707. Regulation of Fuel and Fuel Additives: Extension of California Enforcement Exemptions for Reformulated Gasoline Beyond December 31, 1999  

  • [Federal Register Volume 64, Number 178 (Wednesday, September 15, 1999)]
    [Rules and Regulations]
    [Pages 49992-49997]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-23707]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 80
    
    [FRL-6432-1]
    
    
    Regulation of Fuel and Fuel Additives: Extension of California 
    Enforcement Exemptions for Reformulated Gasoline Beyond December 31, 
    1999
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Direct final rule.
    
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    SUMMARY: With this direct final rule the EPA continues to exempt 
    refiners, importers, and blenders of gasoline subject to the State of 
    California's reformulated gasoline regulations from certain enforcement 
    provisions in the Federal reformulated gasoline regulations. Current 
    exemptions applicable under the Federal Phase I reformulated gasoline 
    program will expire after December 31, 1999, when the Federal Phase II 
    reformulated gasoline program begins. Today's direct final rule extends 
    the California enforcement exemptions beyond that date. The Agency is 
    publishing this action as a direct final rule because it does not 
    expect it to be controversial. An accompanying notice of proposed 
    rulemaking is being published in today's Federal Register.
    
    DATES: This final rule is effective on January 1, 2000 unless adverse 
    or critical comments are received by October 15, 1999. If adverse 
    comments are received, EPA will publish a timely withdrawal in the 
    Federal Register informing the public that the rule will not take 
    effect.
    
    ADDRESSES: Any person wishing to submit comments should send them (in 
    duplicate, if possible) to the docket address listed and to Anne 
    Pastorkovich, Attorney/Advisor, U.S. Environmental Protection Agency, 
    Fuels and Energy Division, 401 M Street, SW (6406J), Washington, D.C. 
    20460. Materials relevant to this direct final rule have been placed in 
    docket [A-99-04] located at U.S. Environmental Protection Agency, Air 
    Docket Section, Room M-1500, 401 M Street, SW, Washington, D.C. 20460. 
    The docket is open for public inspection from 8:00 a.m. until 5:30 
    p.m., Monday through Friday, except on Federal holidays. A reasonable 
    fee may be charged for photocopying services.
    
    FOR FURTHER INFORMATION CONTACT: For further information about this 
    direct final rule, contact Anne Pastorkovich, Attorney/Advisor, Fuels & 
    Energy Division, at (202) 564-8987. To notify EPA of an intent to 
    submit an adverse comment or public hearing request, contact Anne 
    Pastorkovich, (202) 564-8987.
    
    SUPPLEMENTARY INFORMATION: The remainder of this direct final rule is 
    organized in the following sections:
    
    I. Background
        A. Regulated Entities
        B. Current Status and Basis for California Exemptions
    II. Applicability of Exemptions Beginning in 2000 (Description of 
    This Rule)
    III. Administrative Designation and Regulatory Analysis
    
    [[Page 49993]]
    
        A. Executive Order 12866
        B. Executive Order 12875: Enhancing Intergovernmental 
    Partnerships
        C. Executive Order 13084: Consultation and Coordination With 
    Indian Tribal Governments
        D. Regulatory Flexibility
        E. Paperwork Reduction Act
        F. Unfunded Mandates Reform Act
        G. Submission to Congress and the General Accounting Office
        H. Children's Health Protection
        I. National Technology Transfer and Advancement Act of 1995 
    (NTTAA)
        J. Statutory Authority
    
    I. Background
    
    A. Regulated Entities
    
        Regulated categories and entities potentially affected by this 
    action include:
    
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                                                    Examples of regulated
                     Category                             entities
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    Industry..................................  Refiners, importers, and
                                                 oxygenate blenders of
                                                 California gasoline.
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        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 
    an entity is regulated by this action, one should carefully examine the 
    RFG provisions at 40 CFR Part 80, particularly Sec. 80.81 dealing 
    specifically with California gasoline. 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.
    
    B. Current Status and Basis for California Exemptions
    
        Section 211(k) of the Federal Clean Air Act (the Act) directs the 
    EPA to establish requirements for reformulated gasoline (RFG) to be 
    used in specified ozone nonattainment areas, as well as ``anti-
    dumping'' requirements for conventional gasoline used in the rest of 
    the country, beginning in January 1995. The areas covered by the 
    Federal RFG program in California are Los Angeles, San Diego, and 
    Sacramento.1 The Act requires EPA to reduce the emissions of 
    ozone forming volatile organic compounds (VOCs) and toxic air 
    pollutants from motor vehicles through the RFG program. It also 
    requires that there be no increase in the emission of oxides of 
    nitrogen (NOX) as a result of the RFG program. Finally, RFG 
    must meet certain content standards for oxygen, benzene and heavy 
    metals.
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        \1\ See 40 CFR Sec. 80.70 for a complete list of covered areas.
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        The RFG program is implemented in two phases. The Phase II program, 
    which will begin on January 1, 2000, is similar to the Phase I program, 
    but will require even greater emissions benefits. The relevant 
    regulations for RFG and conventional gasoline may be found at 40 CFR 
    Part 80, Subparts D, E, and F.2
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        \2\ See 59 FR 7812 (February 16, 1994), as amended at 59 FR 
    36964 (July 20, 1994); 60 FR 2699 (January 11, 1995); 60 FR 35491 
    (July 10, 1995); 60 FR 65574 (December 20, 1995); and 62 FR 68196 
    (December 31, 1997).
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        On September 18, 1992, the California Air Resources Board (CARB) 
    adopted regulations requiring reformulation of California ``Phase 2'' 
    gasoline.3 The CARB regulations established a comprehensive 
    set of gasoline specifications designed to achieve reductions in 
    emissions of VOCs, NOX, carbon monoxide (CO), sulfur 
    dioxide, and toxic air pollutants from gasoline-fueled vehicles. The 
    CARB regulations set standards for eight gasoline parameters--sulfur, 
    benzene, olefins, aromatic hydrocarbons, oxygen, Reid vapor pressure 
    (RVP), and distillation temperatures for the 50 percent and 90 percent 
    evaporation points (T-50 and T-90, respectively). These regulations 
    became effective on March 1, 1996 for all gasoline in the California 
    distribution network (except for gasoline being exported from 
    California). The CARB regulations also provide for the production and 
    sale of alternative gasoline formulations, with certification under the 
    CARB program based on a predictive model or on vehicle emission 
    testing.
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        \3\ See Title 13, California Code of Regulations Secs. 2250-2272 
    (as last amended December 11, 1998). California has amended its 
    regulations since they were first promulgated in September, 1992. 
    The most recent amendments, adopted December 11, 1998, raise the 
    oxygen ``cap'' limit for California gasoline from 2.7 weight % to 
    3.5 weight %. As discussed below, this direct final rule is based on 
    the current state of California's Phase 2 gasoline program, 
    including the December 11, 1998 amendments.
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        During the Federal RFG rulemaking, and in response to comments by 
    California refiners, we concluded (1) that VOC and toxics emission 
    reductions resulting from the California Phase 2 standards would be 
    equal to or greater than the Federal Phase I RFG standards (applicable 
    from January 1, 1995 through December 31, 1999), (2) that the content 
    standards for oxygen and benzene under California Phase 2 would be 
    equivalent in practice to the Federal Phase I content 
    standards,4 and (3) that the CARB's compliance and 
    enforcement program was designed to be sufficiently rigorous to ensure 
    that Federal Phase I requirements would be met.5 
    Consequently, while the Federal RFG and conventional gasoline standards 
    continue to apply in California, refiners, importers, and oxygenate 
    blenders of gasoline sold in California (referred to collectively as 
    ``California refiners'') are exempt in most cases from various 
    enforcement-related provisions, including the following:
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        \4\ As is discussed in the section entitled ``Oxygen Standard'', 
    below, this is not now the case.
        \5\ See 59 FR 7758, 7759 (February 16, 1994) and 40 CFR 
    Sec. 80.81.
        \6\ 40 CFR Sec. 80.81(e)(2) was amended to include a limited 
    oxygen survey provision. See ``Fuels and Fuel Additives; Amendments 
    to the Enforcement Exemptions for California Gasoline Refiners--
    Final Rule,'' 63 FR 34818 (June 26, 1998).
    
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            Requirement exempted            Citation at 40 CFR Sec.  80.xx
    ------------------------------------------------------------------------
    Compliance Surveys \6\..............  80.68
    Independent Sampling & Testing......  80.65(f).
    Designation of Gasoline.............  80.65(d).
    Marking of Conventional Gasoline....  80.65(g) and 80.82.
    Downstream Oxygenate Blending.......  80.69.
    Recordkeeping.......................  80.74 and 80.104.
    Reporting...........................  80.75 and 80.105.
    Product Transfer Documents..........  80.77.
    Parameter Value Reconciliation        80.65(e)(2).
     Requirements.
    Reformulated Gasoline and             80.65(c).
     Reformulated Gasoline Blendstock
     for Oxygenate Blending (RBOB)
     Compliance Requirements.
    Annual Compliance Audit Requirements  80.65(h).
    
    [[Page 49994]]
    
     
    Compliance attest Engagement          subpart F.
     Requirements.
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        California refiners are not exempt from these Federal enforcement 
    requirements with regard to gasoline that is delivered for use outside 
    California, because the California Phase 2 standards and the CARB 
    enforcement program do not cover RFG exported from California. EPA has 
    made reasonable allowances to minimize complications for gasoline 
    exported from California, including permitting the use of California 
    test methods for conventional gasoline that is produced in California 
    for sale outside the state.7
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        \7\ See 40 CFR 80.81(h)(1).
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    II. Description of the Direct Final Rule
    
        The enforcement exemptions which expire on December 31, 1999 were 
    based on a comparison of California Phase 2 gasoline and Federal Phase 
    I RFG. The enforcement exemptions, which were included in the final RFG 
    rule (see fn. 5), were only applicable during the Phase I RFG program. 
    It would have been premature for EPA to have made an equivalency 
    determination comparing California Phase 2 and Federal Phase II 
    gasolines upon publication of the final RFG rule. However, we indicated 
    in the rulemaking that, if an appropriate and timely demonstration was 
    made in the future, showing that California Phase 2 gasoline could be 
    expected to provide emission benefits equivalent to Federal Phase II 
    RFG, then we might extend the enforcement exemptions beyond December 
    31, 1999. For the reasons discussed below, we believe that California 
    Phase 2 gasoline provides emissions benefits equivalent to Federal 
    Phase II RFG, and that it is appropriate for us to extend the 
    California enforcement exemptions to Federal Phase II RFG. 
    Specifically, the Agency believes that:
        (1) VOC, toxics, and NOX emission reductions resulting 
    from the California Phase 2 standards would be equal to or greater than 
    the reductions from the Federal Phase II RFG standards,
        (2) The content standards for oxygen and benzene under California 
    Phase 2 would be equivalent in practice to the Federal Phase II content 
    standards, and
        (3) The CARB's compliance and enforcement program is designed to be 
    sufficiently rigorous.
        We have received a detailed comparison of California Phase 2 and 
    Federal Phase II blends, entitled, ``Comparing the Equivalency of 
    California and Federal Reformulated Gasoline,'' from the Western States 
    Petroleum Association (hereafter referred to as ``the WSPA analysis''). 
    A copy of the WSPA analysis, and an EPA staff memorandum describing the 
    Agency's evaluation of the WSPA analysis, has been placed in public 
    docket at the location listed in the ADDRESSES section of this notice 
    8.
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        \8\ The WSPA analysis and an EPA staff memorandum entitled 
    ``Equivalency Determination of California and Federal Reformulated 
    Gasoline,'' (March 8, 1999) have been placed in docket A-99-04.
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        The WSPA analysis evaluated the performance of the California 
    program (1) by comparing the average performance of actual California 
    RFG to the averaged parameter limits of federal RFG, and (2) by 
    analyzing the performance of a set of ``virtual fuels'' using computer 
    modeling. While the average fuel performance analysis establishes that 
    the overall air quality objective of the federal RFG program will be 
    met, the virtual fuels analysis provides assurances that there will be 
    no temporal spikes in the emission of ozone forming VOCs.
        The WSPA analysis utilized data from two separate surveys of actual 
    California gasoline to compare the emissions performance of California 
    gasoline with the EPA Phase II complex model averaging standards. See 
    40 CFR Sec. 80.41(f). One survey was prepared by the California Energy 
    Commission (CEC).9 The other survey was prepared by the 
    American Petroleum Institute/National Petroleum Refiners Association 
    (API/NPRA).10 Both surveys collected data on the properties 
    of RFG actually produced by California refiners in an effort to 
    evaluate the emissions performance of actual, in use California 
    gasoline. The API/NPRA and CEC surveys represented about 85% and 100% 
    of the RFG produced in California, respectively. The surveys each 
    occurred over periods of about four months during the summertime, and 
    were weighted by production volume. Producers were not aware that the 
    surveys were being conducted.
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        \9\ Final Report, 1996 American Petroleum Institute/National 
    Petroleum Refiners Association Survey of Refining Operations and 
    Product Quality (July, 1996).
        \10\ California Energy Commission, Supply and Cost of 
    Alternatives to MTBE in Gasoline--Technical Appendices, Refinery 
    Modeling--Task 2 Calibration of Refinery Model, Table 5.3.
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        Both surveys support the conclusion that average fuel property 
    values and average emissions reductions of in-use California gasolines 
    comply with Federal Phase II averaged standards. Additionally, the two 
    surveys, performed one year apart, were remarkably consistent. The 
    results of the surveys are shown in the following table: 11
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        \11\ WSPA analysis, at 7.
    
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                                                                                1990       California survey results
                    Properties                  Federal phase II averaged     Baseline   ---------------------------
                                                        standards               fuel         API-96        CEC-97
    ----------------------------------------------------------------------------------------------------------------
    Oxygen (wt%).............................  >=2.1 average, 1.5 per gal.          0             2.1           2.1
                                                min.
    SULFUR (ppm).............................  ...........................        339            20            19
    RVP (psi)................................  ...........................          8.7           6.8           6.8
    E200 (%).................................  ...........................         41            51.3          50.5
    E300 (%).................................  ...........................         83            88.8          88.4
    AROMATICS (vol%).........................  ...........................         32            23.0          23.0
    OLEFINS (vol%)...........................  ...........................          9.2           3.9           4.1
    BENZENE (vol%)...........................  <=0.95 average,="" 1.3="" per="" 1.53="" 0.55="" 0.57="" gal.="" max.="" ----------------------------------------------------------------------------------------------------------------="" [[page="" 49995]]="" phase="" ii="" complex="" model="" absolute="" emissions="" absolute="" emissions="" (milligrams/mile)="" calculations="" ----------------------------------------------------------------------------------------------------------------="" exhaust="" voc..............................="" ...........................="" 907.0="" 733.0="" 734.2="" nonexhaust="" voc...........................="" ...........................="" 559.3="" 294.1="" 294.1="" total="" voc................................="" ...........................="" 1466.3="" 1027.2="" 1028.4="" exhaust="" benzene..........................="" ...........................="" 53.5="" 28.8="" 28.9="" nonexhaust="" benzene.......................="" ...........................="" 6.2="" 1.3="" 1.4="" acetaldehyde.............................="" ...........................="" 4.4="" 3.6="" 3.6="" formaldehyde.............................="" ...........................="" 9.7="" 11.8="" 11.8="" butadiene................................="" ...........................="" 9.4="" 6.4="" 6.5="" pom......................................="" ...........................="" 3.0="" 2.5="" 2.5="" total="" exhaust="" toxics.....................="" ...........................="" 80.1="" 53.0="" 53.2="" total="" toxics.............................="" ...........................="" 86.3="" 54.3="" 54.6="">X......................................  ...........................       1340.0        1144.5        1143.2
    ----------------------------------------------------------------------------------------------------------------
      Phase II Complex Model Reductions from                                  Percent change from baseline emissions
                  1990 Baseline
    ----------------------------------------------------------------------------------------------------------------
    Total VOC................................  >=29.0% average, 25.0% per         -29.9         -29.9
                                                gal. min.
    Total toxics.............................  21.5% average..............  ............        -37.1         -36.8
    NOX......................................  6.8% average...............  ............        -14.6         -14.7
    ----------------------------------------------------------------------------------------------------------------
    
        The WSPA analysis also compares the emissions performance of the 
    survey average in-use fuel with the emissions performance of fuels that 
    meet California's ``regulatory recipe''. The regulatory recipe 
    specifies limits for various emission-related fuel parameters (e.g. 
    sulfur content, aromatics content).
        Certain of these parameters in the regulatory recipe have two sets 
    of limits; a ``flat'' (per gallon) limit and an average limit with a 
    cap. A California refiner may choose, on a property by property basis, 
    to produce a blend that complies with a flat or an average (with cap) 
    regulatory recipe limit. However, a refiner may produce a blend with 
    parameters that differ from the regulatory recipe specifications if 
    they can demonstrate, using the predictive model, that the emissions 
    performance of their blend is comparable. In order to use the 
    predictive model to compare the emissions performance of its blend to 
    the performance of the regulatory recipe, refiners must decide whether 
    certain parameters in their blend will be averaged or flat-limited.
        The WSPA analysis compares the survey results to the regulatory 
    recipe by plugging the average survey data into the predictive model 
    and generating emissions numbers. These numbers are then compared 
    against an all-average and all-flat emissions baseline. The results 
    demonstrate that the emissions performance of in-use gasoline 
    approximates the emissions performance of a fuel with average 
    regulatory recipe limits. Therefore, it is reasonable to use the 
    average, rather than the flat, regulatory recipe limits to determine 
    which of the computer-generated virtual fuels meet California standards 
    under the predictive model. This virtual fuels analysis, discussed 
    later, demonstrates compliance of California fuel with the Federal VOC 
    per-gallon minimum performance requirement.
        Finally, the WSPA analysis demonstrates that the fuels represented 
    by the two surveys meet the average performance requirements of the 
    federal RFG program. To make this determination the WSPA analysis 
    evaluates the averaged fuels from the two surveys using the federal 
    Complex Model.12
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        \12\ Id. at 9.
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        The WSPA analysis also examined a computer-generated set of 
    emissions data to evaluate the performance of a large number of 
    possible California gasoline blends against the Federal per-gallon 
    minimum reduction requirements for VOCs. This set of virtual fuels 
    consisted of fuels whose properties vary discretely within ranges 
    constrained by California or Federal regulations. Specifically, the 
    virtual fuels analysis defined the properties of the virtual fuels 
    using the appropriate limits of California Phase 2--for RVP, sulfur, 
    aromatics, olefins, T50, T90, and benzene, the upper and lower limits 
    are defined by California's regulations. For oxygen, the lower limit is 
    defined by the Federal RFG program 13 and the upper limit is 
    defined by the California regulations.
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        \13\ The limited oxygen survey option was added to 40 CFR 
    Sec. 80.81 (e)(2)(ii) to ensure that compliance with a 2.0 wt % 
    standard is met in Federally covered areas, as defined by 
    Sec. 80.70. Since for an averaging party, the minimum oxygen content 
    of any gallon of gasoline is 1.5 wt % (with all production over the 
    compliance period meeting 2.1 wt%, on average), the appropriate 
    minimum oxygen content for analysis purposes is 1.5 wt %.
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        For VOC compliance, the virtual fuels analysis looked at possible 
    combinations of fuel properties within the limits of what could be 
    certified under the California predictive model. Although the virtual 
    fuels analysis does not reflect each and every possible fuel 
    formulation, the discrete properties chosen accurately approximate the 
    full range of possible, ``real world'' fuels. These virtual fuel 
    formulations were then submitted to the EPA's complex model. In all 
    there were 18,048 virtual fuels that met the California standards. Of 
    these fuels, all met the 25% minimum Federal Phase II VOC reduction 
    requirement.
        As discussed in greater detail in the staff paper, the virtual 
    fuels analysis supports the conclusion that any possible ``real world'' 
    fuel will comply with the Federal Phase II complex model minimum VOC 
    reduction requirement.
        We are satisfied that the CARB enforcement program, which employs 
    several full-time inspectors and a mobile laboratory facility, and 
    which conducts year round inspections of retail facilities, terminals, 
    and refineries, is designed to be sufficiently stringent to ensure the 
    emissions benefits and content requirements of the program are met.
        In the absence of the enforcement exemptions at 40 CFR Sec. 80.81, 
    California refiners would be required to comply with duplicative 
    enforcement requirements at a significant added cost. We believe that 
    California Phase 2 gasoline, as required by the current regulations 
    (see footnote 3), and as
    
    [[Page 49996]]
    
    described in this analysis, will achieve VOC, toxic and NOX 
    emission reductions that are equal to or greater than those achieved by 
    Federal Phase II gasoline, and will comply with the oxygen and benzene 
    content requirements of the Federal program. We also believe that the 
    CARB enforcement program is sufficiently stringent to ensure that the 
    expected benefits will continue to be met. Therefore, we are proposing 
    to extend the California enforcement exemptions at 40 CFR Sec. 80.81 
    beyond December 31, 1999.
        On March 26, 1999, California Governor Gray Davis issued Executive 
    Order D-5-99, which directed that methyl tertiary butyl ether (MTBE) be 
    phased out of gasoline as soon as possible. Because, California 
    refiners must still provide gasoline in the state that complies with 
    the federal oxygen content requirement, the appropriateness of 
    extending the enforcement exemptions is preserved. A copy of the 
    executive order has been placed in the public docket at the location 
    indicated in the ADDRESSES section of this notice.
        On April 12, 1999, Governor Davis submitted a letter to EPA 
    Administrator Carol Browner, requesting that EPA grant a waiver from 
    the Federal 2.0 weight % oxygen requirement for all California areas 
    covered by the Federal RFG program. The governor's request is currently 
    being evaluated by EPA, but is outside the scope of today's direct 
    final rule. Today's action, in finding that the emission reduction 
    benefits of California gasoline are equivalent to Federal Phase II RFG 
    based on a comparison of current California Phase 2 gasoline and 
    Federal Phase II RFG, includes an analysis demonstrating that such 
    California gasoline will comply with the Federal content standards, 
    including the 2.0 weight % oxygen standard. If California amends its 
    current reformulated gasoline regulations (or issues new regulations), 
    EPA will re-examine these regulations to determine whether enforcement 
    exemptions continue to be appropriate.
    
    III. Administrative Requirements
    
    A. Executive Order 12866
    
        Under Executive Order 12866 (58 FR 51735 (October 4, 1993), the 
    Agency must determine whether the regulatory action is ``significant'' 
    and therefore subject to Office of Management and Budget (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:
        (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 entitlement, 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.
        EPA has 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. The Agency has determined that this regulation 
    would result in none of the economic effects set forth in Section 1 of 
    the Order because it does not impose any mandatory obligations on the 
    regulated community beyond those specified in the current regulations.
    
    B. Executive Order 12875: Enhancing Intergovernmental Partnerships
    
        Under Executive Order 12875, EPA may not issue a regulation that is 
    not required by statute and that creates a mandate upon a State, local, 
    or tribal government, unless the Federal government provides the funds 
    necessary to pay the direct compliance costs incurred by those 
    governments, or EPA consults with those governments. If EPA complies by 
    consulting, Executive Order 12875 requires EPA to provide to the Office 
    of Management and Budget a description of the extent of EPA's prior 
    consultation with representatives of affected State, local and tribal 
    governments, the nature of their concerns, copies of any written 
    communications from the governments, and a statement supporting the 
    need to issue the regulation. In addition, Executive Order 12875 
    requires EPA to develop an effective process permitting elected 
    officials and other representatives of State, local and tribal 
    governments ``to provide meaningful and timely input in the development 
    of regulatory proposals containing significant unfunded mandates.''
        Today's rule does not create a mandate on State, local or tribal 
    governments. The rule does not impose any enforceable duties on these 
    entities. Accordingly, the requirements of section 1(a) of Executive 
    Order 12875 do not apply to this rule.
    
    C. Executive Order 13084: Consultation and Coordination With Indian 
    Tribal Governments
    
        Under Executive Order 13084, EPA may not issue a regulation that is 
    not required by statute, that significantly or uniquely affects the 
    communities of Indian tribal governments, and that imposes substantial 
    direct compliance costs on those communities, unless the Federal 
    government provides the funds necessary to pay the direct compliance 
    costs incurred by the tribal governments, or EPA consults with those 
    governments. If EPA complies by consulting, Executive Order 13084 
    requires EPA to provide to the Office of Management and Budget, in a 
    separately identified section of the preamble to the rule, a 
    description of the extent of EPA's prior consultation with 
    representatives of affected tribal governments, a summary of the nature 
    of their concerns, and a statement supporting the need to issue the 
    regulation. In addition, Executive Order 13084 requires EPA to develop 
    an effective process permitting elected and other representatives of 
    Indian tribal governments ``to provide meaningful and timely input in 
    the development of regulatory policies on matters that significantly or 
    uniquely affect their communities.''
        Today's rule does not significantly or uniquely affect the 
    communities of Indian tribal governments. Today's direct final rule 
    does not create a mandate for any tribal governments. The rule does not 
    impose any enforceable duties on these entities. Accordingly, the 
    requirements of section 3(b) of Executive Order 13084 do not apply to 
    this rule.
    
    D. Regulatory Flexibility
    
        EPA has determined that it is not necessary to prepare a regulatory 
    flexibility analysis in connection with this direct final rule. EPA has 
    also determined that this rule will not have a significant economic 
    impact on a substantial number of small entities.
    
    E. Paperwork Reduction Act
    
        This action does not add any new requirements involving the 
    collection of information as defined by the Paperwork Reduction Act, 44 
    U.S.C. 3501 et seq. The Office of Management and Budget (OMB) has 
    approved the information collection requirements contained in the final 
    RFG/anti-dumping rulemaking (See 59 FR 7716, February 16, 1994) and has 
    assigned OMB control number 2060-0277 (EPA ICR No. 1951.08).
        Burden means the total time, effort, or financial resources 
    expended by persons
    
    [[Page 49997]]
    
    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. An Agency may not conduct or 
    sponsor, and a person is not required to respond to a collection of 
    information unless it displays a currently valid OMB control number. 
    The OMB control numbers for EPA's regulations are listed in 40 CFR Part 
    9 and 48 CFR Chapter 15.
    
    F. Unfunded Mandates Reform Act
    
        Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), P.L. 
    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 in 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 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 direct final rule contains no Federal mandates (under the 
    regulatory provisions of Title II of the UMRA) for State, local or 
    tribal governments or the private sector. The rule imposes no 
    enforceable duty on any State, local or tribal governments or the 
    private sector. Today's direct final rule extends the existing 
    exemption for California gasoline from many of the regulatory 
    compliance requirements of the RFG program, relieving potentially 
    duplicative obligations.
    
    G. Submission to Congress and the General Accounting Office
    
        The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
    Small Business Regulatory Enforcement Fairness Act of 1996, generally 
    provides that before a rule may take effect, the agency promulgating 
    the rule must submit a rule report, which includes a copy of the rule, 
    to each House of the Congress and to the Comptroller General of the 
    United States. EPA will submit a report containing this rule and other 
    required information to the U.S. Senate, the U.S. House of 
    Representatives, and the Comptroller General of the United States prior 
    to publication of the rule. A major rule cannot take effect until 60 
    days after it is published in the Federal Register. This rule is not a 
    major rule as defined by 5 U.S.C. 804(2).
    
    H. Executive Order 13045: Children's Health Protection
    
        Executive Order 13045: Protection of Children from Environmental 
    Health Risks and Safety Risks (62 FR 19885, April 23, 1997) applies to 
    any rule that: (1) is determined to be economically significant as 
    defined under E.O. 12866, and (2) concerns an environmental health or 
    safety risk that EPA has reason to believe may have a disproportionate 
    effect on children. If the regulatory action meets both criteria, the 
    Agency must evaluate the environmental health or safety effects of the 
    planned rule on children, and explain why the planned regulation is 
    preferable to other potentially effective and reasonably feasible 
    alternatives considered by the Agency.
        EPA interprets E.O. 13045 as applying only to those regulatory 
    actions that are based on health or safety risks, such that the 
    analysis required under section 5-501 of the Order has the potential to 
    influence the regulation. This final rule is not subject to E.O. 13045, 
    entitled ``Protection of Children from Environmental Health Risks and 
    Safety Risks'' (62 FR 19885, April 23, 1997), because it does not 
    involve decisions on environmental health risks or safety risks that 
    may disproportionately affect children.
    
    I. National Technology Transfer and Advancement Act of 1995 (NTTAA)
    
        Section 12(d) of the National Technology Transfer and Advancement 
    Act of 1995 (NTTAA), Pub L. No. 104-113, 12(d) (15 U.S.C. 272 note) 
    directs EPA to use voluntary consensus standards in its regulatory 
    activities unless to do so would be inconsistent with applicable law or 
    otherwise impractical. Voluntary consensus standards are technical 
    standards (e.g., materials specifications, test methods, sampling 
    procedures, and business practices) that are developed or adopted by 
    voluntary consensus standards bodies. The NTTAA directs EPA to provide 
    Congress, through OMB, explanations when the Agency decides not to use 
    available and applicable voluntary consensus standards.
        This direct final rule does not involve technical standards. 
    Therefore, EPA did not consider the use of any voluntary consensus 
    standards.
    
    J. Statutory Authority
    
        Sections 114, 211, and 301(a) of the Clean Air Act as amended (42 
    U.S.C. 7414, 7545, and 7601(a)).
    
    List of Subjects in 40 CFR Part 80
    
        Environmental protection, Air pollution control, California 
    exemptions, Gasoline, Motor vehicle pollution, Reformulated gasoline.
    
        Dated: August 27, 1999.
    Carol M. Browner,
    Administrator.
        For the reasons described in the preamble, part 80 of title 40, 
    chapter I of the Code of Federal Regulations is amended as follows:
        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. 80.81  [Amended]
    
        2. Section 80.81 is amended by removing paragraph (i).
    
    [FR Doc. 99-23707 Filed 9-14-99; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Effective Date:
1/1/2000
Published:
09/15/1999
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Direct final rule.
Document Number:
99-23707
Dates:
This final rule is effective on January 1, 2000 unless adverse or critical comments are received by October 15, 1999. If adverse comments are received, EPA will publish a timely withdrawal in the Federal Register informing the public that the rule will not take effect.
Pages:
49992-49997 (6 pages)
Docket Numbers:
FRL-6432-1
PDF File:
99-23707.pdf
CFR: (2)
40 CFR 80.70
40 CFR 80.81