97-34097. Regulation of Fuels and Fuel Additives: Modifications to Standards and Requirements for Reformulated and Conventional Gasoline  

  • [Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
    [Rules and Regulations]
    [Pages 68196-68208]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-34097]
    
    
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 80
    
    [FRL-5942-6]
    RIN 2060-AG76
    
    
    Regulation of Fuels and Fuel Additives: Modifications to 
    Standards and Requirements for Reformulated and Conventional Gasoline
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: Through the 1990 amendments to the Clean Air Act (CAA), 
    Congress mandated that EPA promulgate regulations requiring that 
    gasoline sold in certain areas be reformulated to reduce vehicle 
    emissions of toxic and ozone-forming compounds. The EPA published rules 
    for the certification and enforcement of reformulated gasoline (RFG) 
    and provisions for non-reformulated or conventional gasoline on 
    February 16, 1994.
        Based on experience gained since the promulgation of these 
    regulations, on July 11, 1997, EPA proposed a variety of changes to the 
    regulations relating to emissions standards, emissions models, 
    compliance related requirements and enforcement provisions. Today's 
    rule finalizes certain of the changes proposed on July 11, 1997. This 
    final rule adopts several revisions relating to use of the Complex 
    Model, which is required for demonstrating compliance with the RFG 
    standards and the anti-dumping standards for conventional gasoline 
    beginning on January 1, 1998. In addition, today's rule finalizes 
    provisions that modify the affirmative defenses for truck carriers of 
    motor vehicle fuel. Finally, this rule deletes the NOX per-
    gallon minimum standards for RFG and increases the number of gasoline 
    quality surveys, as a more cost-effective way to ensure that each area 
    covered by the RFG program receives the full environmental benefits of 
    the NOX average standards in Phase I and II of the program. 
    EPA will take final action on the remainder of the provisions proposed 
    on July 11, 1997, at a later date.
        The emissions benefits achieved from the RFG and conventional 
    gasoline programs will not be reduced as a result of this final rule.
    
    DATES: The effective date of this rule is January 1, 1998.
    
    ADDRESSES: Materials relevant to this FRM are contained in Public 
    Docket No. A-97-03, Waterside Mall (Room M-1500), Environmental 
    Protection Agency, Air Docket Section, 401 M Street, S.W., Washington, 
    D.C. 20460. Materials relevant to the final rule establishing standards 
    for reformulated gasoline and anti-dumping standards for conventional 
    gasoline are contained in Public Dockets--A-92-01 and A-92-12, and are 
    incorporated by reference.
    
    FOR FURTHER INFORMATION CONTACT: Marilyn Bennett, Fuels and Energy 
    Division, U.S. EPA, 401 M Street, S.W. (6406J), Washington, D.C. 20460. 
    Telephone: (202) 564-8989.
    
    SUPPLEMENTARY INFORMATION:
    
    Regulated Entities
    
        Regulated categories and entities affected by this action include:
    
    ------------------------------------------------------------------------
                                                    Examples of regulated   
                     Category                             entities          
    ------------------------------------------------------------------------
    Industry..................................  Refiners and importers of   
                                                 motor vehicle fuel. Motor  
                                                 vehicle fuel tank truck    
                                                 carriers.                  
    ------------------------------------------------------------------------
    
        This table is not intended to be exhaustive, but rather provides a 
    guide for readers regarding entities likely to be regulated by this 
    action. This table lists the types of entities that EPA is now aware 
    could be potentially regulated by this action. Other types of entities 
    not listed in the table could also be regulated. To determine whether 
    your entity is regulated by this action, you should carefully examine 
    the applicability criteria of Part 80, Subparts A, B, D, and E, of 
    title 40 of the Code of Federal Regulations. If you have questions 
    regarding applicability of this action to a particular entity, consult 
    the person listed in the preceding FOR FURTHER INFORMATION CONTACT 
    section.
        The preamble and regulatory language are also available 
    electronically from the EPA Internet Web site. The official Federal 
    Register version is made available on the day of publication on the 
    primary Internet site listed below. The EPA Office of Mobile Sources 
    also publishes these notices on the secondary Web site listed below.
    
    Internet (Web)
        http://www.epa.gov/docs/fedrgstr/EPA-AIR/
        (either select desired date or use Search feature)
        http://www.epa.gov/OMSWWW/
        (look in What's New or under the specific rulemaking topic)
    
        EPA believes this is sufficient lead time for regulated parties to 
    implement the changes adopted here, as these noncontroversial changes 
    are designed to increase the flexibility provided to parties under the 
    regulations and to provide provisions necessary for demonstrating 
    compliance with the
    
    [[Page 68197]]
    
    standards under the Complex Model. Although this final rule includes 
    some new requirements, these requirements are reasonable and necessary 
    to provide the increased flexibility also included in this rule. EPA 
    notes that the general requirement in 5 U.S.C. 553(d) of the 
    Administrative Procedure Act (APA), concerning publication or service 
    of a substantive rule not less than 30 days prior to its effective 
    date, does not apply here. CAA section 307(d)(1) provides that section 
    553 of the APA does not apply to promulgation or revision of any 
    regulation pertaining to fuels or fuel additives under section 211 of 
    the CAA. Even if section 553(d) of the APA were to apply, there is good 
    cause under section 553(d)(3) to provide less than 30 days notice, for 
    the reasons noted above.
        The remainder of this preamble, which explains the basis and 
    purposes of the regulatory changes finalized today, is organized into 
    the following sections:
    
        I. Corrections to Complex Model (Sec. 80.45)
        II. NOX Per-Gallon Minimum Standards (Sec. 80.41)(d) 
    and (f); Sec. 80.68(b)(1)(iv))
        III. Truck Carrier Defenses (Sec. 80.79(c)(3); Sec. 80.2(ss); 
    Sec. 80.28(g)(1)(iii) and Sec. 80.30(g)(1)(i))
        IV. Closely Integrated Facilities (Sec. 80.91(e))
        V. Standards Applicable to Refiners and Importers of 
    Conventional Gasoline (Sec. 80.101)
        VI. Environmental and Economic Impacts
        VII. Public Participation
        VIII. Regulatory Flexibility Act
        IX. Submission to Congress and the General Accounting Office
        X. Executive Order 12866
        XI. Paperwork Reduction Act
        XII. Unfunded Mandates Act
        XIII. Statutory Authority
    
    I. Corrections to Complex Model (Sec. 80.45)
    
    Sec.  80.45(c)(1)(iv)(B).....  Corrects several small typographical     
                                    errors in both the Phase I and Phase II 
                                    equations.                              
    Sec.  80.45(c)(1)(iv)(D)(12).  Corrects typographical error by changing 
                                    ``(E300  x  72 percent)'' to ``(E300--72
                                    percent).''                             
    Sec.  80.45(c)(1)(iv)(D)(13).  Corrects typographical error by changing 
                                    Phase I coefficients to Phase II        
                                    coefficients, i.e. change ``80.32 +     
                                    (0.390  x  ARO)'' to ``79.75 + (0.385  x
                                     ARO).''                                
    Sec.  80.45(d)(1)(iv)(B).....  Corrects typographical errors to the     
                                    equation.                               
    Sec.  80.45(f)(1)(ii)........  Corrects the entry for aromatics         
                                    ``acceptable range'' to read ``0.0--55.0
                                    volume percent.'' This corrects a       
                                    typographical error in the July 20, 1994
                                    Direct Final Rule (59 FR 36961). The    
                                    correct entry was included in the RFG   
                                    final rule published on February 16,    
                                    1994 (59 FR 7826).                      
                                                                            
    
    II. Elimination of NOX Per-Gallon Minimum Standards 
    (Sec. 80.41(d) 1 and (f); Sec. 80.68(b)(1)(iv))
    ---------------------------------------------------------------------------
    
        \1\ In addition to deleting the NOX per-gallon 
    minimum standards for averaged RFG in the chart in Sec. 80.41(d), 
    this rule revises the chart to replace ``32.6'' for VOC-
    Control Region 1 per-gallon minimum reduction with 
    ``32.6''. This corrects a typographical error.
    ---------------------------------------------------------------------------
    
        In the final regulations establishing the RFG program (59 FR 7716 
    (February 16, 1994)) the Agency established both average standards for 
    NOX reductions and associated minimum per-gallon standards 
    2 for such reductions (separate standards were applied to 
    VOC-controlled summertime gasoline and non-VOC-controlled winter 
    gasoline). The standards set up for both the Simple Model and Phase I 
    Complex Model (applicable in 1995 through 1999) were designed to hold 
    NOX emissions at baseline levels, while the Phase II 
    standards (applicable beginning in 2000) added a more stringent 
    standard for summertime NOX reductions.
    ---------------------------------------------------------------------------
    
        \2\ These two types of standards, both applying to refineries 
    that elect to comply by averaging, should not be confused with the 
    per-gallon standard, which applies to refineries that elect not to 
    average their compliance over a year, but rather to make gasoline 
    that all (each gallon) meets a fixed standard. The latter approach 
    to compliance will likely not be selected by most refiners for 
    practical reasons having to do with the inherent variability in 
    NOX quality of gasoline from batch to batch.
    ---------------------------------------------------------------------------
    
        The averaging minimum standard in Phase II requires that each 
    gallon (batch) of RFG in the high ozone season has at least a 3% 
    reduction from the baseline; the corresponding Phase I standard holds 
    any increase over baseline for a batch to 2.5%. Less stringent 
    averaging minimum standards apply outside of the high ozone season in 
    Phase II. These minimum standards were not put in place to provide any 
    incremental environmental benefit beyond that provided by the average 
    standard, but rather to ensure an even distribution of program benefits 
    from area to area and/or through time. An additional but secondary 
    objective of the averaging minimum standard was to augment the 
    detectability of non-RFG gasoline being illegally sold in RFG areas.
    
    The Proposal
    
        In the July 11, 1997 NPRM EPA proposed to eliminate the minimum 
    averaging standards for NOX in both phases of the program 
    and to use an augmented RFG survey program to guard against any 
    possible undesirable environmental effects of that action. The reasons 
    for wanting to eliminate these standards are discussed at some length 
    in the NPRM, but they center on avoiding the imposition of substantial 
    additional RFG production costs on the industry without providing 
    additional environmental benefits over and above those provided by the 
    relevant average standard, where the purposes of the per-gallon minimum 
    can also be served by the RFG surveys.
        At the time of the 1994 final rule, data did not exist to 
    adequately assess the variability, within refineries' output, of 
    NOX quality or the factors that affect it across all of the 
    batches of gasoline produced in a year. The final rule did not take 
    into account extra costs resulting from compliance with the minimum 
    standards. Such costs, which would likely be sharply higher in Phase 
    II, could be expected to elevate the price of RFG relative to that of 
    conventional gasoline and might thus endanger public acceptance of 
    Phase II RFG.
        The NPRM discussed an expanded RFG survey program, along with the 
    fungibility of the gasoline distribution system, as providing adequate 
    protection against the kind of geographical and/or temporal unevenness 
    of distribution of program benefits that the NOX averaging 
    minimum standards were intended to guard against. The proposal included 
    an increase of 20 in the initial number of RFG surveys per year before 
    adjustments have been made for the gallonage of opt-in areas and that 
    of areas that may have failed surveys in prior years. The effect of 
    these adjustments, given the current set of opt-in areas and recent 
    survey failures for oxygen, would be to almost double the initial 20-
    survey increase when computing the number of week-long surveys to be 
    conducted in the course of a year. The resulting increase brings the 
    total number of surveys in a year to more than 150. The increase in 
    survey coverage was intended to permit more careful scrutiny of 
    gasoline quality across the geographical areas covered by the program 
    (especially the opt-in areas) and to strengthen the ability of the 
    surveys to deter environmentally harmful uses of the averaging 
    flexibility, especially in areas supplied by a limited group of 
    refineries.
    
    [[Page 68198]]
    
    Comments on the Proposal
    
        Industry commenters were almost unanimous in supporting the 
    proposed elimination of the NOX minimums, citing reasons 
    that were mostly similar to those given in the proposal. Most 
    frequently, the argument was that the minimums, especially in Phase II, 
    would raise the costs of making RFG above the level calculated in the 
    1994 Regulatory Impact Assessment and do so without securing any 
    additional environmental benefit. The comments tended to confirm the 
    conclusions EPA analysts had reached in the course of detailed 
    interviews with a small number of refiners 3, namely that 
    refiners would comply with the minimum standards mostly by using a set 
    of strategies that are not capital-intensive and do not result in 
    NOX reductions in excess of those required by the average 
    standard. 4
    ---------------------------------------------------------------------------
    
        \3\ These interviews and the business confidential information 
    disclosed to EPA in them were discussed at some length in the July 
    11, 1997 NPRM. See 62 FR 37343.
        \4\ Some general examples of the approaches identified in these 
    interviews as likely to be used to bring sub-minimum batches above 
    the standard include: finding another use for the poor 
    NOX quality gasoline or its components (shifting it to 
    conventional gasoline, if that can be done without violating anti-
    dumping standards, or shifting it to other products) and buying 
    conforming RFG on the spot market to take its place; reblending the 
    poor NOX quality batches with clean blendstocks purchased 
    from the outside to make them conform to the minimum; or simply 
    reducing RFG production.
    ---------------------------------------------------------------------------
    
        The only comments received from a non-industry source came from the 
    State and Territorial Air Pollution Program Administrators (STAPPA) and 
    the Association of Local Air Pollution Control Officials (ALAPCO). 
    These comments generally agree with the appropriateness of eliminating 
    the NOX minimums, primarily as a way of strengthening the 
    RFG program by improving its cost-effectiveness. They express the 
    belief, though, that a strengthened survey program is needed to 
    substitute for protections that would have been provided by the minimum 
    standards for NOX. They suggest some specific ways to 
    strengthen the surveys as discussed below.
        Almost all of the comments received recognized the importance of 
    the RFG survey program in guarding against uneven distribution of 
    NOX benefits in the absence of the minimum standards. All of 
    the industry comments that addressed the topic cited the surveys as the 
    mechanism for providing the needed insurance against uneven 
    distribution. Commenters disagreed, though, on the question of whether 
    the currently prescribed survey program is adequate to serve this 
    purpose in the absence of the NOX minimum standards; the 
    American Petroleum Institute (API) and one other commenter supported 
    the proposed increase in the number of surveys, while the National 
    Petroleum Refiners Association and one other industry commenter 
    questioned the need for the additional surveys, especially in light of 
    the increased sampling involved in each survey as a result of the 
    change to the complex model. Of the latter comments, one suggested that 
    if the additional surveys were imposed, they should be split evenly 
    between summer and winter seasons. API's comments took note of the fact 
    that the RFG final rule did not prescribe summertime NOX 
    surveys for Phase II of the program and supported the addition of such 
    surveys, provided that the NOX minimum standards are 
    eliminated.
        STAPPA/ALAPCO's comments on the survey program made a number of 
    suggestions aimed at strengthening the surveys' ability to take over 
    the functions that would have been performed by the NOX 
    minimum standards. They recommend weighted representation of octane 
    grades 5, concentration of additional surveys in the high 
    ozone season, and a greater emphasis on smaller, isolated RFG markets 
    that, on the simple basis of gasoline volume, would tend to be 
    neglected. They would like for EPA to work closely with stakeholders on 
    survey questions, and support imposition of a severe penalty (in the 
    form of a ratcheted standard) where NOX surveys are failed.
    ---------------------------------------------------------------------------
    
        \5\ Careful stratification of the sample for each survey to 
    accurately represent octane grades as well as station gasoline sales 
    volume levels within each RFG area is already a feature of the 
    survey design.
    ---------------------------------------------------------------------------
    
        EPA believes that, without the NOX minimum standards, 
    the survey program would be key to ensuring that uneven distribution of 
    gasoline NOX quality did not result in air quality problems. 
    Since the most important consideration in regulating NOX is 
    its contribution to the formation of ground-level ozone, the Agency 
    must be sure that survey coverage during the high ozone season is 
    sufficiently intense to both deter misuse of averaging and to detect it 
    if it should occur. To this end, the Agency believes that the increase 
    in number of surveys proposed in the NPRM is necessary to ensure 
    adequate coverage of opt-in areas. The suggestion of one commenter that 
    the additional surveys should be split between summer and winter would, 
    if implemented, defeat the purpose behind the increase, even though it 
    would reduce the increase in survey costs brought about by both the 
    additional surveys and the increase in the size of each survey needed 
    to meet precision requirements for NOX.6 EPA 
    agrees with STAPPA/ALAPCO regarding the greater attention that must be 
    paid to the distribution system when allocating surveys. Isolated 
    areas, while possibly not large in population, are more vulnerable to 
    variability in the NOX quality of gasoline shipments and 
    should receive somewhat disproportionate coverage by the survey 
    program. The reverse is also true to some extent--because of the 
    severity and scope of the ratchet provisions, areas that share in a 
    large fungible supply of gasoline are protected with some redundancy, a 
    fact that could be used to provide isolated areas with greater 
    protection when allocating surveys. To summarize regarding the surveys, 
    in order to make elimination of the minimum standards appropriate, EPA 
    believes that the survey program must be augmented so it will 
    adequately perform the function previously performed by the 
    NOX per-gallon minimums.
    ---------------------------------------------------------------------------
    
        \6\ The increase in the sampling requirements of each survey 
    (and survey series), while substantial in magnitude, is driven by 
    the heterogeneity of the most important parameters in the 
    NOX emissions equation--olefins and, especially, sulfur. 
    This increase, necessary to maintain the precision of the mean 
    estimates of each 7-day ``snapshot'' of gasoline quality, 
    nevertheless does not contribute at all to the number of such 
    ``snapshots'' taken of gasoline NOX quality during the 
    crucial summer months. The adequacy of the survey program to perform 
    the function originally intended for the NOX minimum 
    depends entirely on the Agency's ability to spread those individual 
    survey ``snapshots'' over both the geographical areas covered by the 
    program and the months of the high ozone season.
    ---------------------------------------------------------------------------
    
        The RFG final rule did not provide for summertime NOX 
    surveys in Phase II of the program on grounds that the per-gallon 
    minimum standards (established under section 211(c) authority) were 
    more than adequate to satisfy the requirements of section 211(k) of the 
    CAA (see 57 FR 7774). With the minimum per-gallon standard for Phase II 
    summertime eliminated, the surveys become necessary, as pointed out in 
    API's comments, and will be required as part of today's action. EPA 
    sees a summertime NOX survey program in Phase II as 
    necessary to replace the protections that were provided by the 
    NOX minimum standards.
    
    Summary and conclusions regarding NOX minimum standards
    
        After a careful review of available data on the NOX 
    quality of gasolines produced under the simple model and study of the 
    variability of the major causes of high NOX emissions 
    (sulfur
    
    [[Page 68199]]
    
    and olefins), EPA is convinced that the per-gallon minimums for 
    NOX would impose severe limitations on refineries' ability 
    to make flexible use of averaging in production of complex model 
    gasoline. In consequence, refiners' costs for compliance would exceed 
    the cost of meeting the average standard. Rather than respond to this 
    situation with capital investments that might actually further improve 
    air quality, EPA believes that refiners are more likely to respond with 
    costly and environmentally unproductive strategies for dealing with 
    high NOX batches. The added cost for making RFG would be an 
    unnecessary burden. EPA is thus acting today to eliminate the averaging 
    per-gallon minimum standards for NOX reduction in both Phase 
    I and Phase II of the RFG program.
        As indicated in the NPRM, EPA believes that the geographical and 
    temporal distribution objective that was the chief reason for the 
    NOX minimum standards can be achieved by the RFG survey 
    program at lower cost to refiners and the public and without 
    sacrificing air quality. Accordingly, in today's action EPA is 
    increasing the number of surveys in the initial schedule by 20, as 
    proposed, and requiring that week-long NOX surveys be 
    conducted in the summertime in Phase II, as was not previously 
    required. EPA believes that the intensified survey coverage, if 
    carefully allocated, coupled with the wide-ranging and costly 
    consequences of NOX survey failures, will motivate refiners 
    to avoid actions that could compromise air quality in areas covered by 
    the RFG program.
        This final rule also makes minor changes to other sections of the 
    regulations to delete references to the NOX per gallon 
    minimum standards and reflect the additional survey requirements. These 
    changes affect the following sections: Sec. 80.41(m); Sec. 80.67(e)(4); 
    Sec. 80.68(c)(3); Secs. 80.68(c)(13)(iv) (H) and (L)); 
    Sec. 80.77(g)(2)(iv)(B); Sec. 80.78(a)(1)(v)(C); and Sec. 80.79(c)(1). 
    In addition, this final rule modifies Sec. 80.41(m) to clearly indicate 
    that its provisions apply to failure of either a NOX survey 
    or failure of a NOX survey series. This change conforms 
    Sec. 80.41(m) to other provisions of the regulations referring to 
    survey activity involving NOX, such as: Sec. 80.68(b)(4)(ii) 
    describing the consequences of failing to carry out an approved survey 
    program; Sec. 80.68(c)(4)(ii) defining a NOX survey series; 
    and Sec. 80.68(c)(10) describing the conditions giving rise to failure 
    of a NOX survey or survey series.
    
    III. Truck Carrier Defenses (Sec. 80.79(c)(3); Sec. 80.2(ss); 
    Sec. 80.28(g)(1)(iii) and Sec. 80.30(g)(1)(i))
    
        Section 80.79(b) specifies the defenses for violations of the 
    prohibited activities under the reformulated gasoline program. Section 
    80.79(b)(1) states that a party, who is presumed liable for a 
    violation, can avoid liability if it can show: (1) that it did not 
    cause the violation, (2) the existence of appropriate product transfer 
    documents for the gasoline in question, and (3) that it conducted an 
    appropriate quality assurance sampling and testing program.
        These defenses apply to all regulated parties, including carriers. 
    In addition, under Sec. 80.79(b)(1)(iii)(B), a carrier may rely on a 
    properly conducted quality assurance sampling and testing program 
    conducted by another party. Carrier is defined at 40 CFR Sec. 80.2(t) 
    as a party who stores or transports gasoline without taking title to 
    the gasoline.
        For one category of carriers--truck carriers--sampling and testing 
    may not always be the most appropriate form of quality assurance. The 
    purpose of a quality assurance requirement is, first and foremost, to 
    institutionalize preventive measures as the best way to detect and 
    avoid violations. The most typical role of truck carriers in the 
    gasoline distribution system is to transport gasoline from a terminal 
    to a retail outlet or wholesale consumer. Most violations caused by 
    truck carriers result when an inappropriate type of gasoline is 
    delivered. For example, a truck carrier would have caused a violation 
    if gasoline designated as conventional is delivered by the carrier to a 
    retail outlet located in a reformulated gasoline covered area. The most 
    appropriate quality assurance for a truck carrier to implement to avoid 
    this type of violation would be driver training on the proper types of 
    gasoline to deliver, and management oversight of product transfer 
    documents to ensure the proper type of gasoline has been delivered.
        It is EPA's understanding that truck carriers almost always load 
    gasoline into empty truck compartments. To the extent this is true, it 
    would be very unlikely the carrier could be responsible if the gasoline 
    loaded into the truck failed to meet a regulated standard, such as 
    benzene or oxygen content. As a result, sampling and testing of 
    gasoline obtained from a truck compartment would not be particularly 
    effective for detecting violations caused by the carrier. In addition, 
    EPA has received comments from industry regarding the practicability of 
    drawing samples from truck compartments during the loading process, or 
    subsequent to loading. These comments conclude that the technical 
    aspects of collecting gasoline samples from truck compartments make 
    such sampling difficult, but not impossible. For example, the sampler 
    normally would be required to climb onto the top of the truck trailer 
    in order to gain access to the compartment lid, which could be 
    difficult particularly in adverse weather conditions.
        As a result, EPA proposed to modify the defense elements under 
    Sec. 80.79 as they pertain to truck carriers to state that, instead of 
    sampling and testing, an oversight program by a truck carrier may 
    consist of a program to monitor compliance with the requirements 
    related to gasoline transport or storage, such as a program to properly 
    train truck drivers and review product transfer documents to ensure 
    that the proper type of gasoline is delivered. In addition, EPA 
    proposed to add a definition of tank truck carrier to Sec. 80.2.
        EPA did not propose a similar change to the reformulated gasoline 
    defense provisions for carriers other than truck carriers, such as 
    pipelines, barge operators, or for-hire terminals. EPA believes 
    carriers in these other categories are better able to collect gasoline 
    samples, and samples of the gasoline being transported or stored by 
    these categories are collected for commercial reasons on a routine 
    basis in the normal course of business. Nevertheless, EPA requested 
    comments regarding whether the changes proposed for truck carriers 
    should also be applied to other types of carriers.
        EPA also proposed similar changes to the defense provisions for 
    truck carriers in the case of violations of the volatility requirements 
    at Sec. 80.28(g)(1), and violations of the diesel sulfur requirements 
    at Sec. 80.30(g)(1). The rationale for changing the volatility and 
    diesel sulfur defense provisions for truck carriers is the same as is 
    discussed above for reformulated gasoline.
        EPA received no comments on the proposed modifications to the 
    defense elements for truck carriers at Secs. 80.28, 80.30, and 80.79, 
    or the definition of tank truck carrier at Sec. 80.2, and these 
    provisions are being finalized as proposed.
    
    IV. Closely Integrated Facilities (Sec. 80.91(e))
    
        Section 80.91(e)(1)(i) of the reformulated gasoline regulations 
    provides for determination of a single set of baseline fuel parameters, 
    upon petition and approval, for two or more facilities that are 
    geographically proximate to each other, yet not within
    
    [[Page 68200]]
    
    a single refinery gate, and whose 1990 operations were significantly 
    interconnected in 1990. While the existing provision permits EPA to set 
    a single baseline that would then apply for each of several refineries, 
    it does not permit these ``closely integrated facilities'' to be 
    grouped together for all compliance purposes (including registration, 
    record keeping and reporting). Rather, the provision allows a single 
    baseline to be set for each facility it represents, and sections 
    80.41(h) and 80.101(h) require that each refinery comply with this 
    baseline separately, except where authorized to group refineries for 
    compliance purposes. 7 Similarly, section 80.91(e)(1)(ii) 
    permits EPA to set a single baseline for a blending facility which 
    received 75 percent of its 1990 blendstock from a single refinery, or 
    from one or more refineries owned by the same refiner and that are part 
    of an aggregate baseline.
    ---------------------------------------------------------------------------
    
        \7\ Combined reports may be submitted for compliance with RFG 
    baseline-related parameters (sulfur, olefin, and T90) and anti-
    dumping. Other reports must be filed by each facility.
    ---------------------------------------------------------------------------
    
        EPA proposed to amend the RFG and anti-dumping regulations by 
    adding section 80.91(e)(1)(iii), which would require facilities that 
    have been determined to be closely integrated and granted a single 
    baseline by EPA to demonstrate compliance with all RFG and anti-dumping 
    requirements as if they were one facility. Furthermore, the closely 
    integrated facilities would have a single registration and would file a 
    single set of compliance reports. EPA believes that this change will 
    reduce costs (including paperwork costs) to industry without any 
    significant negative environmental impact. EPA received no comments on 
    this section and it is being promulgated as proposed.
        For facilities that have established baselines, the single baseline 
    assigned to the closely integrated facilities will be a volume-weighted 
    average of the individual facility baselines. The refiner should 
    generate the appropriate baseline data and calculations and submit this 
    information to EPA for approval. EPA will notify the refiner when the 
    new closely integrated facilities baseline is approved.
    
    V. Standards Applicable to Refiners and Importers of Conventional 
    Gasoline (Sec. 80.101)
    
    A. Application of Compliance Baselines Under the Complex Model 
    (Sec. 80.101(b)(3)(i))
    
        Clean Air Act section 211(k)(8), the ``anti-dumping'' section, 
    requires EPA to promulgate regulations that maintain the quality of 
    gasoline produced by each refinery, based on each refinery's 1990 
    gasoline quality, or ``baseline.'' The intent of this section is to 
    prevent refiners from shifting ``dirty'' blendstocks from RFG 
    production to conventional gasoline production. This section thereby 
    prevents the degradation in overall quality of the nation's 
    conventional gasoline as compared to gasoline quality in 1990.
        The anti-dumping regulations, at Subpart E, implement this Clean 
    Air Act section through conventional gasoline standards that are set in 
    relation to each refinery's 1990 baseline gasoline quality. However, in 
    the case of a refinery that produces a volume of gasoline during an 
    averaging period that exceeds the refinery's 1990, or baseline, volume, 
    Sec. 80.101 requires that the excess volume meet anti-dumping standards 
    that are set in relation to a baseline that reflects average U.S. 
    gasoline quality in 1990, called the ``statutory'' baseline. Thus, 
    under Sec. 80.101(f) a refiner who operates a refinery with such excess 
    gasoline volume during an averaging period is required to calculate a 
    ``compliance baseline'' that adjusts the 1990 refinery baseline to 
    reflect the excess volume over 1990 levels.
        The rationale for using compliance baselines is the same for both 
    simple and complex model standards. However, under Sec. 80.101(b) 
    compliance baselines currently apply only to simple model standards. 
    EPA believes the absence of a requirement to use compliance baselines 
    for complex model standards was an error of omission when Sec. 80.101 
    was promulgated, and as a result proposed requiring use of compliance 
    baselines under the complex model. No comments were received on this 
    proposal, and it is being finalized as proposed.
    
    B. Elimination of the Baseline Adjustment by Refiners who also are 
    Importers (Sec. 80.101(f)(3)) and Inclusion of a Prohibition to Prevent 
    Import Gaming (Sec. 80.101(j))
    
        Under the anti-dumping program all domestic refineries have 
    individual baselines, while almost all imported gasoline currently is 
    subject to the statutory baseline. However, the regulations include a 
    provision, at Sec. 80.101(f)(3), that requires an importer who also 
    operates one or more refineries to use a baseline for imported gasoline 
    that is the average of the individual refinery baselines. This 
    requirement is intended to address a particular ``gaming'' concern: 
    that a refiner who operates a refinery with a stringent refinery 
    baseline (a baseline cleaner than the statutory baseline), would 
    produce conventional gasoline that would be exported and thereby would 
    be excluded from the refinery's compliance calculations, but that then 
    would be imported under the less stringent statutory baseline.
        EPA now believes the requirement at Sec. 80.101(f)(3) is 
    unnecessary. There may be little risk of the form of gaming described 
    above, in part due to the cost of transporting large volumes of 
    gasoline out of the United States in order to be exported, and then 
    transporting the same gasoline back into the United States in order to 
    be imported. In addition, the current requirement provides a 
    competitive advantage to refiner/importers who operate refineries with 
    baselines that are dirtier than the statutory baseline. Further, EPA 
    believes the gaming concern can be appropriately addressed by simply 
    prohibiting parties from exporting and then importing gasoline for the 
    purpose of obtaining a more favorable baseline for the gasoline.
        For these reasons EPA proposed to eliminate the requirement for 
    refiner/importers to calculate a special baseline for imported 
    gasoline, and instead to prohibit the form of gaming described above. 
    EPA received favorable comments on this proposal from three refiners 
    and the change is being finalized as proposed.
    
    C. Compliance Calculations for Oxygenates and Blendstocks 
    (Sec. 80.101(g)(3))
    
        The current regulations at Sec. 80.101(g)(3) describe a method for 
    calculating the emissions performance of a blendstock based on the 
    difference in emissions performance of a baseline gasoline and of a 
    hypothetical blend of baseline gasoline and the blendstock. However, 
    use of this method is limited to refineries that include only 
    blendstocks in the refinery compliance calculations at a single 
    facility, and it may not be used for a refinery that includes both 
    blendstocks and finished gasoline in the refinery compliance 
    calculations. Similarly, the current regulations do not include a clear 
    procedure for calculating the emissions performance for oxygenate that 
    is included in a refinery's compliance calculations under 
    Sec. 80.101(d)(4). For further discussion see the preamble to the NPRM 
    at 62 FR 37363-37365 (July 11, 1997).
        As a result, EPA proposed to revise Sec. 80.101(g)(3) 8 
    to be appropriate for
    
    [[Page 68201]]
    
    calculating the exhaust toxics and NOX emissions performance 
    of all blendstocks, including oxygenates blended downstream of the 
    refinery. The only comment on this proposal, submitted by a refinery 
    association and an individual refiner, was that two terms were switched 
    in one of the proposed equations. EPA agrees with this comment. As a 
    result, with the exception of the revised equation the provision is 
    being finalized as proposed.
    ---------------------------------------------------------------------------
    
        \8\ The July 11, 1997 NPRM proposed to reorganize Sec. 80.101(g) 
    and move the method for calculating the emissions performance of 
    blendstocks from Sec. 80.101(g)(3) to Sec. 80.101(g)(5). Today's 
    final rule modifies the current Sec. 80.101(g)(3), but does not take 
    final action on the reorganization of Sec. 80.101(g) proposed in the 
    NPRM. EPA intends to address the proposed reorganization of 
    Sec. 80.101(g) at the time it takes final action on the remaining 
    provisions proposed in the NPRM.
    ---------------------------------------------------------------------------
    
        Under this revised methodology, a refiner first determines the 
    volume and properties of each batch of blendstock used. This 
    determination requires the refiner to sample and test each blendstock 
    batch, or in the case of oxygenates the normal oxygenate properties are 
    used. The refiner then determines the blending rate, or volume fraction 
    (F), of the blendstock.
        Next, the refiner calculates the properties of a hypothetical 
    gasoline that reflects the properties that result if gasoline having 
    the refinery's ``summer'' or ``winter'' baseline values, as 
    appropriate, are blended with the blendstock at the blending rate (F) 
    previously determined. This calculation, which is a volume-weighted 
    average of the blendstock properties and the gasoline properties, 
    9 is illustrated by the following example.
    ---------------------------------------------------------------------------
    
        \9\ Although certain properties, such as distillation and RVP, 
    do not blend in an exact linear manner, EPA is promulgating this 
    approach as a reasonable approximation since there is no other 
    method to more accurately attribute the emissions effect of such 
    downstream blending operations.
    ---------------------------------------------------------------------------
    
        Assume a refiner blends 25,000 gallons of reformate into 300,000 of 
    gasoline at a terminal. Assume the terminal-refinery is subject to the 
    statutory baseline, that the reformate has a benzene content of 2.10 
    vol%, and that all of the gasoline produced using the reformate is 
    classified as ``summer.'' Under Sec. 80.45(b)(2) the ``summer'' benzene 
    statutory baseline is 1.53 vol%. The benzene content for the 
    hypothetical gasoline blend (Bh) is calculated as 1.57 vol% 
    using the following equation:
    [GRAPHIC] [TIFF OMITTED] TR31DE97.007
    
        In the case of the calculated values for sulfur and oxygen, the 
    specific gravities of the blendstock and gasoline are included in the 
    calculation. The measured specific gravity of the blendstock is used, 
    however the regulations specify specific gravity values that must be 
    used for ``summer'' and ``winter'' gasolines.
        The exhaust toxics and NOX emissions performance of the 
    hypothetical gasoline (HEP), and of a gasoline having the refinery's 
    baseline values (BEP), are determined using the complex model. Finally, 
    the refiner calculates the exhaust toxics and NOX emissions 
    performance of the blendstock portion the hypothetical gasoline blend, 
    called the ``equivalent emissions performance'' or EEP. The exhaust 
    toxics and NOX equivalent emissions performance values for 
    the blendstock, together with the applicable blendstock volume, is 
    included in the refinery's compliance calculations as a separate batch.
        Consider again the example of the terminal-refiner using reformate, 
    and assume the hypothetical gasoline blend, when evaluated under the 
    summer complex model, had a NOX emissions performance of 
    685.6 mg/mi. Using the summer baseline emissions performance for 
    NOX under Sec. 80.45(b)(3) (660.0 mg/mi) and the blendstock 
    volume fraction previously calculated (0.077), the blendstock's 
    NOX equivalent emissions performance (EEP) is calculated to 
    be 992.47 mg/mi using the following equation:
    [GRAPHIC] [TIFF OMITTED] TR31DE97.008
    
        The refiner in this example would include in the refinery's annual 
    NOX emissions performance compliance calculations a batch 
    with a volume of 25,000 gallons (the blendstock volume), and a 
    NOX emissions performance of 992.47 mg/mi.
        It should be noted that certain blendstocks, including oxygenates, 
    when blended with gasoline may reduce exhaust toxics or NOX 
    emissions performance under the complex model. In such cases, the 
    calculated equivalent emissions performance for the given blending 
    fraction may yield a negative result under this methodology. Consider 
    for example a hypothetical refiner with summer baseline fuel properties 
    that provide a baseline for exhaust toxics (BEP) of 39.61 mg/mi under 
    the complex model. If this refiner blends 6,000 gallons of ethanol into 
    125,000 gallons of gasoline over one summer month, resulting in a 
    blendstock volume fraction of 0.046, the hypothetical fuel properties 
    of that blend then result in exhaust toxics emissions performance (HEP) 
    of 37.13 mg/mi. Using the equation provided in the regulations, the 
    calculated equivalent emissions performance for exhaust toxics for this 
    oxygenate blendstock is -14.3 mg/mi. Thus, this refiner would include a 
    batch of 6,000 gallons at an exhaust toxics emissions level of -14.3 
    mg/mi in its compliance calculations.
        EPA also is requiring refiners to keep certain records for 
    blendstocks included in refinery compliance calculations using the 
    calculation procedures described above. Section 80.104 currently 
    requires refiners to keep records of the test results for blendstock 
    batches included in refinery compliance calculations. However, there is 
    no current record keeping requirement for documents that support the 
    blendstock volume fraction (F). As a result, EPA is including a new 
    requirement in Sec. 80.104 that refiners who include blendstock batches 
    in refinery compliance calculations must keep records that reflect the 
    volume of blendstocks blended and the volume of gasoline with which the 
    blendstock is blended, the two terms used to calculate the blendstock 
    volume fraction. This record keeping requirement was not specifically 
    included in the proposal, but EPA believes it is a logical outgrowth of 
    the proposal for calculating the exhaust toxics and NOX 
    emissions of blendstocks. In the absence of this record keeping 
    requirement EPA could be unable to verify a refiner has used the proper 
    blendstock volume fraction to calculate the exhaust toxics and 
    NOX emissions of blendstocks. Moreover, EPA believes this 
    requirement normally would be met using documents that already are 
    created and kept for commercial business purposes, i.e., documents that 
    show movements of blendstock and gasoline to the blending tank and 
    volume measurements of the blending tank.
    
    D. Conventional Gasoline Complex Model Valid Range Limit as Standards 
    (Sec. 80.101(b)(3)) and Emissions Performance Outside the Model Limits 
    (Sec. 80.101(g)(8))
    
        Both the Simple and the Complex Models include restrictions on the 
    range of parameter values that may be used with these models. See 
    Secs. 80.42(c) and 80.45(f) for the Simple Model limits and the Complex 
    Model limits, respectively. These parameter range limits are included 
    because the Simple and Complex models have not been shown to accurately 
    predict emissions when parameter values outside the range limits are 
    used. For this reason, Secs. 80.42(c) and 80.45(f) state that the 
    models may not be used for fuels with parameter values that are outside 
    the valid range limits.
    
    [[Page 68202]]
    
        The Complex Model standards apply to both reformulated and 
    conventional gasoline. However, the Complex Model specifies different 
    valid range limits for reformulated versus conventional gasoline. 
    Compare Sec. 80.45(f)(1)(i) (Complex Model range limits for 
    reformulated gasoline) with Sec. 80.45(f)(1)(ii) (Complex Model range 
    limits for conventional gasoline).
        EPA always has considered the valid range limits to constitute 
    standards that apply to reformulated and conventional gasoline. 
    Gasoline subject to simple or Complex Model standards must be evaluated 
    for compliance with these standards. Where gasoline has property values 
    outside the valid range limits, it cannot be evaluated and, therefore, 
    it is unlawful to produce and sell such gasoline.
        For this reason EPA proposed the parameter values of conventional 
    gasoline would have to be within the applicable Complex Model valid 
    range limits when the gasoline is certified by the refiner or 
    importer.10
    ---------------------------------------------------------------------------
    
        \10\ Under Sec. 80.91(f)(2), refiners with baseline parameter 
    values outside the valid range limits are allowed to use in the 
    complex model parameter values that are somewhat outside the normal 
    range limits for these parameters.
        Today's final rule addresses the issue of complex model valid 
    range limits for conventional gasoline, but does not address the 
    valid range limits for RFG. EPA intends to address the proposal 
    regarding valid range limits for RFG when it takes final action on 
    the remaining provisions proposed in the NPRM.
    ---------------------------------------------------------------------------
    
        Several refiners commented that this would be unduly restrictive, 
    particularly for a refinery with baseline properties close to or 
    outside the valid range limits. A refinery's baseline properties 
    reflect the average for each property for all gasoline produced at that 
    refinery during 1990. However, a refinery's gasoline quality is not 
    constant for any particular property, but varies across grades and 
    during the year because of differences in season, crude oil, refinery 
    turnarounds, and so on. As a result, if a refinery's 1990 baseline for 
    a property is close to the valid range limit, it is reasonable to 
    conclude that some significant percentage of the refinery's gasoline 
    batches in 1990 had values for the property that were outside the valid 
    range limit.
        EPA has evaluated the proposed use of the valid range limits for 
    conventional gasoline in light of the anti-dumping requirements for 
    conventional gasoline under section 211(k)(8) of the Clean Air Act. The 
    intent of the anti-dumping program is to maintain each refinery's 
    gasoline quality at 1990 levels, in order to ensure there is no 
    degradation in the overall quality of the nation's conventional 
    gasoline. From this perspective each refiner should be allowed to 
    continue producing the same types of conventional gasoline that were 
    produced in 1990. However, the proposed imposition of valid range 
    limits as per-gallon standards would force certain refiners to change 
    their conventional gasoline quality relative to 1990 gasoline quality, 
    particularly refiners with baseline parameter values close to the valid 
    range limits.
        As a result, one premise of the anti-dumping program (that refiners 
    should be allowed to produce conventional gasoline with parameter 
    values that are the same as for gasoline produced in 1990) conflicts 
    with the limited ability of the Complex Model to reliably predict 
    emissions when parameter values are outside the model's range limits.
        EPA has decided to resolve this conflict by allowing refiners to 
    produce individual batches of conventional gasoline with parameter 
    values that are outside the Complex Model's valid range limits. EPA 
    also is adopting additional requirements intended to minimize the 
    volume of gasoline in this category and the risk of adverse 
    environmental effects.
        Thus, today's rule allows refiners to produce conventional gasoline 
    without any per-batch restriction on parameter values, regardless of 
    the complex model's valid range limits. This gives refiners and 
    importers the same flexibility to produce particular batches of 
    conventional gasoline having widely disparate parameter values as they 
    had in 1990.
        To mitigate the potential to cause harm to the environment from 
    removing this per-gallon batch restriction, EPA is adding two 
    additional requirements for conventional gasoline compliance. First, a 
    limit on annual average parameter values is included. This standard, 
    which applies for each parameter, is equal to the conventional gasoline 
    complex model valid range limit or the refinery's baseline values, 
    whichever is less stringent.11 EPA believes this standard is 
    appropriate because it is consistent with the refinery's 1990 baseline 
    value for the parameter, which reflects the refinery's 1990 annual 
    average for the parameter.
    ---------------------------------------------------------------------------
    
        \11\ For example, if a refinery's sulfur baseline is 1,050 ppm 
    the annual average sulfur content of the refinery's conventional 
    gasoline cannot exceed 1,050 ppm, which is less stringent than the 
    conventional gasoline valid range limit for sulfur of 1,000 ppm. 
    However, if a refinery's sulfur baseline is 900 ppm the annual 
    average limit would be the less stringent valid range limit of 1,000 
    ppm. Similarly, if a refinery's baseline for E200 is 28% the annual 
    average E200 of the refinery's conventional gasoline cannot be less 
    than 28%, which is less stringent than the conventional gasoline 
    lower valid range limit for E200 of 30%. This is in addition to the 
    annual average requirement for exhaust toxics and NOX.
    ---------------------------------------------------------------------------
    
        Second, where a refiner has parameter test results for conventional 
    gasoline that are outside the current valid range limits, the 
    regulations specify whether the exhaust toxics and NOX 
    emissions performance are calculated using the tested parameter value, 
    or the valid range limit value. For each parameter, and for each 
    emissions performance category, EPA has specified that the value which 
    is most protective of the environment must be used.
        For each parameter EPA evaluated whether higher exhaust toxics or 
    NOX emissions result if the valid range limit is used, or if 
    a value outside the valid range limit is used. In each case the value 
    that gives the higher emissions must be used, as specified in a table 
    included in the regulations at Sec. 80.101(g)(8).12
    ---------------------------------------------------------------------------
    
        \12\ Thus, for example, if a refiner has a tested sulfur value 
    in excess of the valid range limit of 1,000 ppm, the exhaust toxics 
    and NOX emissions performance must be calculated under 
    the Complex Model using the tested sulfur value, because emissions 
    values increase as sulfur values increase above 1,000 ppm. In 
    contrast, if a refiner has a tested RVP value of less than the 6.4 
    psi lower valid range limit, the exhaust toxics and NOX 
    emissions performance must be calculated using the 6.4 psi valid 
    range limit, because emissions values decrease as RVP values 
    decrease below 6.4 psi.
    ---------------------------------------------------------------------------
    
        EPA believes it is appropriate to use the Complex Model to predict 
    emissions in this manner, even though in certain cases parameter values 
    outside the valid range limits are used. Based on engineering judgment 
    it is likely the direction of a parameter's effect on emissions at the 
    valid range limit continues outside the valid range limit, even though 
    the magnitude of the effect becomes more speculative as the value moves 
    away from the range limit.
        Thus, for example, the Complex Model reports that both exhaust 
    toxics and NOX emissions increase as sulfur values increase 
    from 950 ppm to 1,000 ppm, based on vehicle emissions test data. In 
    addition, the Complex Model reports that exhaust toxics and 
    NOX emissions continue to increase as sulfur values increase 
    above the 1,000 ppm valid range limit. These outside-the-range-limit-
    results reflect only an assumption that emissions effects outside the 
    range limit are similar to emissions results inside the range limit, 
    and do not reflect vehicle emissions test data for fuels having higher 
    sulfur values. However, engineering judgment supports the likelihood 
    that actual exhaust toxics and NOX emissions continue to 
    increase with sulfur values higher than 1,000 ppm.
        The relative lack of confidence in the magnitude of the effect on 
    emissions of
    
    [[Page 68203]]
    
    parameter values outside the valid range limits justifies use of these 
    environmentally conservative requirements, i.e., required use of the 
    parameter value (valid range limit or tested) that results in the 
    greater emissions. A refiner can avoid this ``worst case'' requirement 
    by producing conventional gasoline batches with parameter values within 
    the valid range limits. In addition, the requirement that parameter 
    limits must be met on an annual average basis, discussed above, will 
    minimize the number of conventional gasoline batches that have 
    parameter values outside the valid range limits, and the magnitude of 
    the excursions for batches that do.
        The current regulations include provisions for extending the 
    conventional gasoline valid range limits for aromatics, olefins or 
    benzene for certain refiners, at Sec. 90.91(f)(2)(ii). In addition, EPA 
    proposed to modify Sec. 80.91(f)(2)(ii) to allow extended valid range 
    limits for sulfur for certain refiners. These provisions apply to 
    refiners with baseline values for parameter values that are outside the 
    valid range limits, and allow such refiners to use the Complex Model to 
    calculate the emissions of gasolines having properties outside the 
    valid range limits.
        However, in light of the changes being promulgated today that allow 
    parties to calculate exhaust toxics and NOX emissions for 
    any conventional gasoline batch without constraint of the Complex 
    Model's valid range limits, the valid range extension provisions at 
    Sec. 80.91(f)(2)(ii) are unnecessary. As a result, EPA is eliminating 
    these valid range extension provisions.
        In the NPRM, EPA proposed to promulgate the complex Model valid 
    range limits as standards for both conventional gasoline and RFG under 
    the authority of Sec. 211(k), but not under Sec. 211(c). EPA believed 
    that it was not necessary to promulgate the valid range limits as 
    standards under the authority of Sec. 211(c) since the valid range 
    limits are standards under the RFG and conventional gasoline 
    regulations solely for the purpose of ensuring that the Complex Model 
    will accurately predict emissions, and not for the independent purpose 
    of achieving emissions reductions from the range limits themselves. EPA 
    received adverse comment on the proposal to promulgate the valid range 
    limits only under Sec. 211(k). Since the issue of whether to promulgate 
    the complex model valid range limits as standards under Sec. 211(c) 
    relates both conventional gasoline and RFG, EPA is reserving its 
    decision on this issue until it takes final action on the remainder of 
    the July 11, 1997 NPRM provisions, including the provisions relating 
    the valid range limits as standards for RFG. EPA is, therefore, at this 
    time adopting the above changes regarding the conventional gasoline 
    Complex Model valid range limits solely under the authority of 
    Secs. 211(k) and 301.
    
    VI. Environmental and Economic Impacts
    
        The Agency does not expect today's rule to have any adverse impact 
    on the environment. Many of the revisions finalized today correct 
    typographical and other minor errors in the final rule. The provisions 
    relating to use of the Complex Model are the result of a determination 
    that the existing regulatory requirements may be revised without 
    detriment to the environment. Economic impacts will be generally 
    beneficial to affected parties due to the additional flexibility 
    adopted in today's final rule. In particular, the deletion of the 
    NOX per-gallon minimum standards for averaged RFG will 
    relieve industry of a substantial cost burden, while the increased 
    compliance surveys for NOX will ensure that the full 
    environmental benefits of the NOX RFG standards are 
    achieved. The environmental and economic impacts of the RFG and 
    conventional gasoline programs are described in the Regulatory Impact 
    Analysis supporting the December 1993 rule, which is available in 
    Public Docket A-92-12 located at Room M-1500, Waterside Mall (ground 
    floor), U.S. Environmental Protection Agency, 401 M Street, S.W., 
    Washington, D.C. 20460.
    
    VII. Public Participation
    
        EPA solicited comments on the need to take the actions proposed in 
    the July 11, 1997 NPRM, including the actions finalized today. EPA met 
    with representatives of the petroleum industry and other interested 
    parties and considered their concerns and ideas in the development of 
    this final rule. EPA also reviewed and considered all written comments 
    on the provisions finalized today. Responses to comments are contained 
    in the preamble to this final rule. All comments received by EPA are 
    located in the EPA Air Docket, Docket A-97-03 (See ADDRESSES).
    
    VIII. Regulatory Flexibility
    
        EPA has determined that it is not necessary to prepare a regulatory 
    flexibility analysis in connection with this final rule. EPA has also 
    determined that this rule will not have a significant economic impact 
    on a substantial number of small entities.
        Although the revisions to the reformulated and conventional 
    gasoline regulations contained in today's final rule will affect small 
    business refiners, importers and gasoline tank truck carriers, EPA has 
    determined that this final rule will not have an adverse economic 
    impact on these entities. Several actions taken in today's final rule 
    will provide increased flexibility for all refiners and importers of 
    gasoline, including small business refiners and importers. The deletion 
    of the NOX per-gallon minimum standards, in particular, will 
    provide refiners and importers with greater flexibility to comply with 
    the RFG regulations without compromising the environmental effect of 
    the RFG program. In addition, this action eliminates the requirement 
    for refiners of conventional gasoline who also import gasoline to 
    calculate a special baseline for their imported product, and aids 
    refiners and importers by allowing them to use a more flexible way of 
    demonstrating compliance with the anti-dumping standards under the 
    Complex Model. This action also provides additional affirmative 
    defenses for truck carriers of motor vehicle fuel.
        The EPA prepared a Regulatory Flexibility Analysis (RFA) for the 
    final rule establishing standards for reformulated and conventional 
    gasoline (59 FR 7716 (February 16, 1994)), which includes an analysis 
    of the impact of the reformulated gasoline and anti-dumping regulations 
    on small business entities. The RFA is in the docket for that 
    rulemaking: EPA Air Docket A-92-2.
    
    IX. Submission to Congress and the General Accounting Office
    
        Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
    Regulatory Enforcement Fairness Act of 1996, EPA submitted 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 
    General Accounting Office prior to publication of the rule in today's 
    Federal Register. This rule is not a ``major rule'' as defined by 5 
    U.S.C. 804(2).
    
    X. 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 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
    
    [[Page 68204]]
    
    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 action 
    under the terms of the Executive Order 12866, and is therefore not 
    subject to OMB review.
    
    XI. Paperwork Reduction Act
    
        The information collection requirements proposed in the July 11, 
    1997 NPRM, including the provisions finalized today, have been 
    submitted for approval to the Office of Management and Budget (OMB) 
    under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et 
    seq. An Information Collection Request (ICR) was prepared by EPA (ICR 
    No. 1591.09) and a copy may be obtained from Sandy Farmer, OPPE 
    Regulatory Information Division; U.S. Environmental Protection Agency 
    (2137); 401 M St., SW. (mail code 2137); Washington, DC 20460, or by 
    calling (202) 260-2740. Include the ICR and/or OMB number in any 
    correspondence.
        Most of the provisions finalized today make minor adjustments to 
    the regulations and provide refiners and importers of gasoline with 
    additional flexibility to comply with the regulations. Most of these 
    changes will not result in any additional reporting, record keeping, or 
    testing burdens. EPA is requiring refiners to keep certain records 
    associated with revisions to the provisions for calculating the 
    emissions performance of gasoline blendstocks. EPA, however, believes 
    that this requirement normally will be met using documents that already 
    are created and kept for commercial business purposes, i.e., documents 
    that show movements of blendstock and gasoline to the blending tank and 
    volume measurements of the blending tank. This requirement, therefore, 
    is not expected to impose additional record keeping burdens on 
    regulated parties.
        This action also eliminates the per-gallon NOX minimum 
    standards for Complex Model averaged RFG, and increases the initial 
    number of compliance surveys required beginning in 1998 and thereafter 
    from 50 to 70. EPA is eliminating the NOX per-gallon minimum 
    standards because these standards may impose substantial costs in 
    producing RFG without commensurate benefits to the environment. (See 
    Preamble Section II). The NOX per-gallon minimum standards 
    were included in the final rule as a tool to assure an even 
    distribution of NOX benefits from area to area. However, EPA 
    believes that a less costly alternative, an increase in the number of 
    required surveys, will achieve a similar level of assurance of even 
    distribution of NOX benefits.
        The actual number of surveys required to be conducted by industry 
    is based on the initial number of required surveys adjusted to take 
    into account areas that opt into the RFG program and any additional 
    surveys required as a result of any survey ratchets. EPA estimates that 
    the incremental cost burden of the additional 20 surveys will be 
    roughly $1,100,000 industry-wide (20 additional surveys at 
    approximately $55,000 each). With adjustments for opt-in and ratcheted 
    areas, EPA estimates that the increase in the total number of surveys 
    required in 1998 due to the regulatory change finalized today will be 
    39, at a cost of approximately $2,145,000 industry-wide, or about 
    $14,300 per RFG refiner or importer ($2,145,000  150 refiners/
    importers). The increased cost burden due to the additional survey 
    requirements, however, will be more than offset by the elimination of 
    the burden on industry imposed by the per-gallon NOX minimum 
    standards.
        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.
        Send comments on the Agency's need for this information, the 
    accuracy of the provided burden estimates, and any suggested methods 
    for minimizing respondent burden, including through the use of 
    automated collection techniques. Send comments on the ICR to the 
    Director, OPPE Regulatory Information Division; U.S. Environmental 
    Protection Agency (2137); 401 M St., S.W.; Washington, DC 20460; and to 
    the Office of Information and Regulatory Affairs, Office of Management 
    and Budget, 725 17th St., N.W., Washington, DC 20503, marked 
    ``Attention: Desk Officer for EPA.'' Comments are requested by January 
    30, 1998. Include the ICR number in any correspondence.
        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.
    
    XII. Unfunded Mandates Act
    
        Under section 202 of the Unfunded Mandates Reform Act of 1995 
    (``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
    must prepare a budgetary impact statement to accompany any proposed or 
    final rule that includes a Federal mandate that may result in 
    expenditure by State, local, and tribal governments, in the aggregate; 
    or by the private section, of $100 million or more. Under Sec. 205, EPA 
    must select the most cost-effective and least burdensome alternative 
    that achieves the objectives of the rule and is consistent with the 
    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 action proposed today does not include 
    a Federal mandate that may result in estimated costs of $100 million or 
    more to either State, local or tribal governments in the aggregate, or 
    to the private sector. This action has the effect of reducing burdens 
    of the reformulated gasoline and anti-dumping programs on regulated 
    entities. Therefore, the requirements of the Unfunded Mandates Act do 
    not apply to this action.
    
    XIII. Statutory Authority
    
        The statutory authority for the actions adopted today is granted to 
    EPA by sections 114, 211(c) and (k), and 301 of the Clean Air Act, as 
    amended; 42 U.S.C. 7414, 7545(c) and (k), and 7601.
    
    List of Subjects in 40 CFR Part 80
    
        Environmental Protection, Air pollution control, Gasoline, Motor 
    vehicle pollution.
    
    
    [[Page 68205]]
    
    
        Dated: December 23, 1997.
    Carol M. Browner,
    Administrator.
        For the reasons set out 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: Secs. 114, 211, and 301(a) of the Clean Air Act as 
    amended (42 U.S.C. 7414, 7545, and 7601(a)).
    
        2. Section 80.2 is amended by revising paragraph (ss) to read as 
    follows:
    
    
    Sec. 80.2  Definitions.
    
    * * * * *
        (ss) Tank truck means a truck and/or trailer used to transport or 
    cause the transportation of gasoline or diesel fuel, that meets the 
    definition of motor vehicle in section 216(2) of the Act.
    * * * * *
        3. Section 80.28 is amended by adding paragraph (g)(1)(iii) to read 
    as follows:
    
    
    Sec. 80.28  Liability for violations of gasoline volatility controls 
    and prohibitions.
    
    * * * * *
        (g) * * *
        (1) * * *
        (iii) An oversight program under paragraph (g)(1)(ii) of this 
    section need not include periodic sampling and testing of gasoline in a 
    tank truck operated by a common carrier, but in lieu of such tank truck 
    sampling and testing, the common carrier shall demonstrate evidence of 
    an oversight program for monitoring compliance with the volatility 
    requirements of Sec. 80.27 relating to the transport or storage of 
    gasoline by tank truck, such as appropriate guidance to drivers on 
    compliance with applicable requirements and the periodic review of 
    records normally received in the ordinary course of business concerning 
    gasoline quality and delivery.
    * * * * *
        4. Section 80.30 is amended by revising paragraph (g)(1)(i) to read 
    as follows:
    
    
    Sec. 80.30  Liability for violations of diesel fuel control and 
    prohibitions.
    
    * * * * *
        (g) * * *
        (1) * * *
        (i) Evidence of an oversight program conducted by the carrier, for 
    monitoring the diesel fuel stored or transported by that carrier, such 
    as periodic sampling and testing of the cetane index and sulfur 
    percentage of incoming diesel fuel. Such an oversight program need not 
    include periodic sampling and testing of diesel fuel in a tank truck 
    operated by a common carrier, but in lieu of such tank truck sampling 
    and testing the common carrier shall demonstrate evidence of an 
    oversight program for monitoring compliance with the diesel fuel 
    requirements of Sec. 80.29 relating to the transport or storage of 
    diesel fuel by tank truck, such as appropriate guidance to drivers on 
    compliance with applicable requirements and the periodic review of 
    records normally received in the ordinary course of business concerning 
    diesel fuel quality and delivery; and
    * * * * *
        5. Section 80.41 is amended by revising the introductory text and 
    tables in paragraphs (d) and (f) and paragraph (m) to read as follows:
    
    
    Sec. 80.41  Standards and requirements for compliance.
    
    * * * * *
        (d) Phase I complex model averaged standards. The Phase I ``complex 
    model'' standards for compliance when achieved on average are as 
    follows:
    
                    Phase I Complex Model Averaged Standards                
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    VOC emissions performance reduction (percent)                           
        Gasoline designated for VOC-Control Region 1:                       
            Standard.................................  36.6      
            Per-Gallon Minimum.......................  32.6      
        Gasoline designated for VOC-Control Region 2:                       
            Standard.................................  17.1      
            Per-Gallon Minimum.......................  13.1      
    Toxics air pollutants emissions performance        16.5      
     reduction (percent).                                                   
    NOX emissions performance reduction (percent)....  1.5       
    Oxygen content (percent, by weight):                                    
        Standard.....................................  2.1       
        Per-Gallon Minimum...........................  1.5       
    Benzene (percent, by volume):                                           
        Standard.....................................  0.95      
        Per-Gallon Maximum...........................  1.30      
    ------------------------------------------------------------------------
    
    * * * * *
        (f) Phase II complex model averaged standards. The Phase II 
    ``complex model'' standards for compliance when achieved on average are 
    as follows:
    
                    Phase II Complex Model Averaged Standards               
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    VOC emissions performance reduction (percent):                          
        Gasoline designated for VOC-Control Region 1:                       
            Standard.................................  29.0      
            Per-Gallon Minimum.......................  25.0      
        Gasoline designated for VOC-Control Region 2:                       
            Standard.................................  27.4      
            Per-Gallon Minimum.......................  23.4      
    Toxics air pollutants emissions performance        21.5      
     reduction (percent).                                                   
    NOX emissions performance reduction (percent):                          
        Gasoline designated as VOC-Controlled........  6.8       
        Gasoline not designated as VOC-Controlled....  1.5       
    
    [[Page 68206]]
    
                                                                            
    Oxygen content (percent, by weight):                                    
        Standard.....................................  2.1       
        Per-Gallon Minimum...........................  1.5       
    Benzene (percent, by volume):                                           
        Standard.....................................  0.95      
        Per-Gallon Minimum...........................  1.30      
    ------------------------------------------------------------------------
    
    * * * * *
        (m) Effect of NOX survey or survey series failure.
        (1) On each occasion that a covered area fails a NOX 
    emissions reduction survey or survey series conducted pursuant to 
    Sec. 80.68, the required average NOX emissions reductions 
    for that covered area beginning in the year following the failure shall 
    be increased in stringency by an additional 1.0%.
        (2) In the event that a covered area for which required 
    NOX emissions reductions have been made more stringent 
    passes all NOX emissions reduction surveys and survey series 
    in two consecutive years, the required average NOX emissions 
    reductions for that covered area beginning in the year following the 
    second year of passed surveys and survey series shall be decreased in 
    stringency by 1.0%.
        (3) In the event that a covered area for which the required 
    NOX emissions reductions have been made less stringent fails 
    a subsequent NOX emissions reduction survey or survey 
    series:
        (i) The required average NOX emission reductions for 
    that covered area beginning in the year following this subsequent 
    failure shall be increased in stringency by 1.0%; and
        (ii) The required NOX emission reductions for that 
    covered area thereafter shall not be made less stringent regardless of 
    the results of subsequent NOX emissions reduction surveys or 
    survey series.
    * * * * *
        6. Section 80.45 is amended by revising paragraphs (c)(1)(iv)(B), 
    (c)(1)(iv)(D)(12), (c)(1)(iv)(D)(13); (d)(1)(iv)(B); and (f)(1)(ii) to 
    read as follows:
    
    
    Sec. 80.45  Complex emissions model.
    
    * * * * *
        (c) * * *
        (1) * * *
        (iv) * * *
        (B) For fuels with E200, E300 and/or ARO levels outside the ranges 
    defined in Table 6, YVOC(t) shall be defined:
        (1) For Phase I:
    
    YVOC(t)=100%  x  0.52  x  [exp(v1(et))/
    exp(v1(b))--1]
        + 100%  x  0.48  x  [exp(v2(et))/exp(v2(b))--
    1]
        + {100%  x  0.52  x  [exp(v1(et))/exp(v1(b))]
         x  [{[(0.0002144  x  E200et)--0.014470]  x  
    E200}
        + {[(0.0008174  x  E300et)--0.068624
        - (0.000348  x  AROet)]  x  E300}
        + {[(-0.000348  x  E300et) + 0.0323712]  x  
    ARO}]}
        + {100%  x  0.48  x  [exp(v1(et))/
    exp(v2(b))}]
         x  [{[(0.000212  x  E200et) - 0.01350]  x  
    E200}
        + {[(0.000816  x  E300et)--0.06233
        - (0.00029  x  AROet)]  x  E300{time} 
        + {[(-0.00029  x  E3002et) + 0.028204]  x  
    ARO}]}
        (2) For Phase II:
    
    YVOC(t)=100%  x  0.444  x  [exp(v1(et))/
    exp(v1(b))--1]
        + 100%  x  0.556  x  [exp(v2(et))/
    exp(v2(b))--1]
        + {100%  x  0.444  x  [exp(v1(et))/
    exp(v1(b))]
         x  [{[(0.0002144  x  E200et)--0.014470]  x  
    E200}
        + {[(0.0008174  x  E300et)--0.068624
        - (0.000348  x  AROet)]  x  E300}
        + {[(-0.000348  x  E300et) + 0.0323712]  x  
    ARO}]}
        + Sec. 100%  x  0.556  x  [exp(v2(et))/
    exp(v2(b))]
         x  [{[(0.000212  x  E200et)--0.01350]  x  
    E200}
        + {[(0.000816  x  E300et)--0.06233
        - (0.00029  x  AROet)]  x  E300}
        + {[(-0.00029  x  E300et) + 0.028204]  x  
    ARO}]}
    * * * * *
        (D) * * *
        (12) If the E300 level of the target fuel is less than 72 percent, 
    then E300 shall be set equal to (E300 - 72 percent).
        (13) If the E300 level of the target fuel is greater than 94 volume 
    percent and (79.75 + (0.385  x  ARO)) also is greater than 94, then 
    E300 shall be set equal to (E300 - 94 volume percent). If the 
    E300 level of the target fuel is greater than 95 volume percent and 
    (79.75 + (0.385  x  ARO)) also is greater than 94, then ``E300 shall be 
    set equal to 1 volume percent.
    * * * * *
        (d) * * *
        (1) * * *
        (iv) * * *
        (B) For fuels with SUL, OLE, and/or ARO levels outside the ranges 
    defined in Table 7 of paragraph (d)(1)(iv)(A) of this section, 
    Ynox(t) shall be defined as:
    
        (1) For Phase I:
    YNox(t)=100% x 0.82 x [exp(n1(et))/
    exp(n1(b))-1]
        +100% x 0.18 x [exp(n2(et))/exp(n2(b))-1]
        +{100% x 0.82 x [exp(n1(et))/exp(n1(b))]
         x [{[(-0.00000133 x SULet) + 0.000692] x SUL}
        +{[(-0.000238 x AROet) + 0.0083632] x ARO}
        +{[(0.000733 x OLEet) -0.002774] x OLE}]}
        +{100% x 0.18 x [exp(n2(et))/exp(n2(b))]
         x [{0.000252 x SUL} +
        + {[(-0.0001599 x AROet) + 0.007097] x ARO}
        +{[(0.000732 x OLEet) -0.00276] x OLE{]}
    
        (2) For Phase II:
    * * * * *
        (f) * * *
        (1) * * *
        (ii) For conventional gasoline:
    
    
    Fuel property................  Acceptable range                         
    Oxygen.......................  0.00-4.0 weight percent.                 
    Sulfur.......................  0.0-1000.0 parts per million by weight.  
    RVP..........................  6.4-11.0 pounds per square inch.         
    E200.........................  30.0-70.0 evaporated percent.            
    E300.........................  70.0-100.0 evaporated percent.           
    Aromatics....................  0.0-55.0 volume percent.                 
    Olefins......................  0.0-30.0 volume percent.                 
    Benzene......................  0.0-4.9 volume percent.                  
                                                                            
    
    
    [[Page 68207]]
    
    * * * * *
        7. In Sec. 80.67, paragraph (e)(4) is removed.
        8. Section 80.68 is amended by revising paragraphs (b)(1)(iv), 
    (c)(3), and (c)(13)(v) (H) and (L) to read as follows:
    
    
    Sec. 80.68  Compliance Surveys.
    
    * * * * *
        (b)* * *
        (1)* * *
        (iv) 70 surveys shall be conducted in 1998 and thereafter.
    * * * * *
        (c) * * *
        (3) A VOC survey and a NOX survey shall consist of any 
    survey conducted during the period June 1 through September 15.
    * * * * *
        (13) * * *
        (v) * * *
        (H) The results of the analyses of complex model samples for 
    oxygenate type and oxygen weight percent, benzene, aromatic 
    hydrocarbon, and olefin content, E-200, E-300, and RVP, the calculated 
    NOX and toxics emissions reduction percentage, and for each 
    survey conducted during the period June 1 through September 15, the 
    calculated VOC emissions reduction percentage;
    * * * * *
        (L) The average toxics emissions reduction percentage for simple 
    model samples and the percentage for complex model samples, the average 
    benzene and oxygen percentages, and for each survey conducted during 
    the period June 1 through September 15, the average VOC emissions 
    reduction percentage for simple model samples and the percentage for 
    complex model samples, and the average NOX emissions 
    reduction percentage for all complex model samples;
    * * * * *
        9. Section 80.77 is amended by revising paragraph (g)(2)(iv)(B) to 
    read as follows:
    
    
    Sec. 80.77  Product transfer documentation.
    
    * * * * *
        (g) * * *
        (2) * * *
        (iv) * * *
        (B) Beginning on January 1, 1998, for VOC-controlled gasoline, the 
    VOC emissions performance minimum; and
    * * * * *
        10. Section 80.78 is amended by revising paragraph (a)(1)(v)(C) to 
    read as follows:
    
    
    Sec. 80.78  Controls and prohibitions on reformulated gasoline.
    
        (a) * * *
        (1) * * *
        (v) * * *
        (C) Unless each gallon of such gasoline that is subject to complex 
    model standards has a VOC emissions reduction percentage which is 
    greater than or equal to the applicable minimum specified in 
    Sec. 80.41.
    * * * * *
        11. Section 80.79 is amended by revising paragraph (c) introductory 
    text and paragraph (c)(1); and by adding paragraph (c)(3) to read as 
    follows:
    
    
    Sec. 80.79  Liability for violations of the prohibited activities.
    
    * * * * *
        (c) Quality assurance program. In order to demonstrate an 
    acceptable quality assurance program for reformulated gasoline at all 
    points in the gasoline distribution network, other than at retail 
    outlets and wholesale purchaser-consumer facilities, a party must 
    present evidence of the following.
        (1) Of a periodic sampling and testing program to determine if the 
    applicable maximum and/or minimum standards for oxygen, benzene, RVP, 
    or VOC emission performance are met.
    * * * * *
        (3) An oversight program conducted by a carrier under paragraph 
    (c)(1) of this section need not include periodic sampling and testing 
    of gasoline in a tank truck operated by a common carrier, but in lieu 
    of such tank truck sampling and testing the common carrier shall 
    demonstrate evidence of an oversight program for monitoring compliance 
    with the requirements of Sec. 80.78 relating to the transport or 
    storage of gasoline by tank truck, such as appropriate guidance to 
    drivers on compliance with applicable requirements and the periodic 
    review of records normally received in the ordinary course of business 
    concerning gasoline quality and delivery.
        12. Section 80.91 is amended by revising paragraph (e)(1)(iii) and 
    adding paragraph (f)(2)(ii) to read as follows:
    
    
    Sec. 80.91  Individual baseline determination.
    
    * * * * *
        (e) * * *
        (1) * * *
        (iii) For facilities determined to be closely integrated gasoline 
    producing facilities and for which EPA has granted a single set of 
    baseline fuel parameter values per this paragraph (e)(1)(i):
        (A) All reformulated gasoline and anti-dumping standards shall be 
    met by such closely integrated facilities on an aggregate basis;
        (B) A combined facility registration shall be submitted under 
    Secs. 80.76 and 80.103; and
        (C) Record keeping requirements under Secs. 80.74 and 80.104 and 
    reporting requirements under Secs. 80.75 and 80.105 shall be met for 
    such closely integrated facilities on an aggregate basis.
    * * * * *
        (f) * * *
        (2) * * *
        (ii) [reserved]
    * * * * *
        13. Section 80.101 is amended by:
        a. Revising paragraph (b)(3);
        b. Revising paragraphs (f)(3) and (f)(4);
        c. Revising paragraph (g)(3) and adding (g)(8); and
        d. Adding paragraph (j).
    
    
    Sec. 80.101  Standards applicable to refiners and importers.
    
    * * * * *
        (b) * * *
        (3) Complex model standards.
        (i) Annual average levels of exhaust toxics emissions and 
    NOX emissions, weighted by volume for each batch and 
    calculated using the applicable complex model under Sec. 80.45, shall 
    not exceed the refiner's or importer's compliance baseline for exhaust 
    toxics and NOX emissions, respectively.
        (ii) Annual average levels of RVP, benzene, aromatics, olefins, 
    sulfur, E200 and E300 shall not be greater than the conventional 
    gasoline complex model valid range limits for the parameter under 
    Sec. 80.45(f)(1)(ii), or the refiner or importer's annual 1990 baseline 
    for the parameter if outside the valid range limit, whichever is 
    greater.
    * * * * *
        (f) Compliance baseline determination.
    * * * * *
        (3) [Reserved]
        (4) Any compliance baseline under paragraph (f)(1) of this section 
    shall be adjusted for each averaging period as follows:
    * * * * *
        (g) Compliance calculations.
    * * * * *
        (3) Exhaust toxics and NOX emissions performance of a 
    blendstock batch shall be determined as follows:
        (i) Determine the volume and properties of the blendstock.
        (ii) Determine the blendstock volume fraction (F) based on the 
    volume of blendstock, and the volume of gasoline with which the 
    blendstock is blended, using the following equation:
    [GRAPHIC] [TIFF OMITTED] TR31DE97.009
    
        Where:
    
    F=blendstock volume fraction
    Vb=volume of blendstock
    
    [[Page 68208]]
    
    Vg=volume of gasoline with which the blendstock is blended.
    
        (iii) For each parameter required by the complex model, calculate 
    the parameter value that would result by combining, at the blendstock 
    volume fraction (F), the blendstock with a gasoline having properties 
    equal to the refinery's or importer's baseline, using the following 
    formula:
    [GRAPHIC] [TIFF OMITTED] TR31DE97.010
    
    Where:
    
    CPj=calculated value for parameter j
    BAPj=baseline value for parameter j
    BLPj=value of parameter j for the blendstock or oxygenate
    j=each parameter required by the complex model
    
        (A) The baseline value shall be the refinery's ``summer'' or 
    ``winter'' baseline, based on the ``summer'' or ``winter'' 
    classification of the gasoline produced as determined under paragraphs 
    (g)(5) or (g)(6) of this section. In the case of a refinery that is 
    aggregated under paragraph (h) of this section, the refinery baseline 
    shall be used, and not the aggregate baseline.
        (B) The sulfur content and oxygen wt% computations under paragraph 
    (g)(3)(iii) of this section shall be adjusted for the specific gravity 
    of the gasoline and blendstock using specific gravities of 0.749 for 
    ``summer'' gasoline and of 0.738 for ``winter'' gasoline.
        (C) In the case of ``summer'' gasoline, where the blendstock is 
    ethanol and the volume fraction calculated under paragraph (g)(3)(ii) 
    is equal to or greater than 0.015, the value for RVP calculated under 
    paragraph (g)(3)(iii) of this section shall be 1.0 psi greater than the 
    RVP of the gasoline with which the blendstock is blended.
        (iv) Using the summer or winter complex model, as appropriate, 
    calculate the exhaust toxics and NOX emissions performance, 
    in mg/mi, of:
        (A) A hypothetical gasoline having properties equal to those 
    calculated in paragraph (g)(3)(iii) of this section (HEP); and
        (B) A gasoline having properties equal to the refinery's or 
    importer's baseline (BEP).
        (v) Calculate the exhaust toxics and NOX equivalent 
    emissions performance (EEP) of the blendstock, in mg/mi, using the 
    following equation:
    [GRAPHIC] [TIFF OMITTED] TR31DE97.011
    
    Where:
    
    EEPj=equivalent emissions performance of the blendstock for 
    emissions performance j
    BEPj=emissions performance j of a gasoline having the 
    properties of the refinery's baseline.
    HEPj=emissions performance j of a hypothetical blendstock/
    gasoline blend
    F=blendstock volume fraction
    j=exhaust toxics or NOX emissions performance
    
        (vi) For each blendstock batch, the volume, and exhaust toxics and 
    NOX equivalent emissions performance (EEP) shall be included 
    in the refinery's compliance calculations.
    * * * * *
        (8) Emissions performance of conventional gasoline with parameters 
    outside the complex model valid range limits. Notwithstanding the 
    provisions of Sec. 80.45(f)(2), in the case of any parameter value that 
    does not fall within the complex model range limit in 
    Sec. 80.45(f)(1)(ii), the refiner or importer shall determine the 
    emissions performance of the batch using the following parameter 
    values:
    
    ----------------------------------------------------------------------------------------------------------------
                                                              Parameter value to use for calculating                
        Parameter outside the range limit    -----------------------------------------------------------------------
                                                          Exhaust toxics                           NOX              
    ----------------------------------------------------------------------------------------------------------------
    Sulfur..................................  Test value\1\........................  Test value.\1\                 
     RVP (summer only):                                                                                             
        < 6.4="" psi...........................="" 6.4="" psi..............................="" 6.4="" psi.=""> 11.0 psi..........................  Test value\1\........................  Test value.\1\                 
    Aromatics...............................  Test value\1\........................  Test value.\1\                 
    Olefins.................................  Test value\1\........................  Test value.\1\                 
    Benzene.................................  Test value\1\........................  Test value.\1\                 
      E200:                                                                                                         
        < 30%...............................="" test="" value\1\........................="" 30%=""> 70%...............................  70%..................................  Test value.\1\                 
    E300 < 70%..............................="" test="" value\1\........................="" test="" value.\1\="" ----------------------------------------------------------------------------------------------------------------="" \1\="" test="" value="" is="" the="" value="" for="" a="" parameter="" determined="" pursuant="" to="" paragraph="" 80.101(i)(1)(i)="" of="" this="" section.="" *="" *="" *="" *="" *="" (j)="" evasion="" of="" standards="" through="" exporting="" and="" importing="" gasoline.="" notwithstanding="" the="" requirements="" of="" this="" section,="" no="" refiner="" or="" importer="" shall="" export="" gasoline="" and="" import="" the="" same="" or="" other="" gasoline="" for="" the="" purpose="" of="" evading="" a="" more="" stringent="" baseline="" requirement.="" 12.="" section="" 80.104="" is="" amended="" by="" adding="" paragraph="" (a)(2)(xi)="" to="" read="" as="" follows:="" sec.="" 80.104="" recordkeeping="" requirements.="" *="" *="" *="" *="" *="" (a)="" *="" *="" *="" (2)="" *="" *="" *="" (xi)="" in="" the="" case="" of="" blendstocks="" that="" are="" included="" in="" refinery="" compliance="" calculations="" using="" the="" procedures="" under="" sec.="" 80.101(g)(3),="" documents="" that="" reflect="" the="" volume="" of="" blendstock="" and="" the="" volume="" of="" gasoline="" with="" which="" the="" blendstock="" is="" blended.="" *="" *="" *="" *="" *="" [fr="" doc.="" 97-34097="" filed="" 12-30-97;="" 8:45="" am]="" billing="" code="" 6560-50-p="">

Document Information

Effective Date:
1/1/1998
Published:
12/31/1997
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-34097
Dates:
The effective date of this rule is January 1, 1998.
Pages:
68196-68208 (13 pages)
Docket Numbers:
FRL-5942-6
RINs:
2060-AG76: Modifications to Standards for Reformulated and Conventional Gasoline
RIN Links:
https://www.federalregister.gov/regulations/2060-AG76/modifications-to-standards-for-reformulated-and-conventional-gasoline
PDF File:
97-34097.pdf
CFR: (13)
40 CFR 80.45(f)(1)(ii)
40 CFR 80.2
40 CFR 80.28
40 CFR 80.30
40 CFR 80.41
More ...