Regulation of Fuels and Fuel Additives: Standards for
Reformulated and Conventional Gasoline
[Federal Register: February 1, 1995]
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[AMS-FRL-5148-4]
Regulation of Fuels and Fuel Additives: Standards for
Reformulated and Conventional Gasoline
AGENCY: Environmental Protection Agency.
ACTION: Partial withdrawal of final rule.
SUMMARY: On July 20, 1994, EPA published a direct final rule (DFRM)
which made minor corrections, clarifications, and revisions to various
provisions in the final reformulated gasoline rule which was published
on February 16, 1994. EPA is withdrawing certain portions of the DFRM,
because adverse or critical comments were received by the Agency, or an
opportunity to submit such comments at a public hearing was requested
for those specific portions. EPA is only withdrawing from the DFRM
those items which have been specifically addressed in those adverse
comments. The portions of the DFRM withdrawn by EPA concern individual
baseline adjustments based on production of JP-4 jet fuel and changes
to the valid range limits for RVP under the Simple Model. All other
changes noted in the July 20, 1994 DFRM will go into effect on
September 19, 1994.
EFFECTIVE DATE: This action is effective January 26, 1995.
ADDRESSES: Materials directly relevant to the direct final rule are
contained in Public Docket A-94-30, located at Room M-1500, Waterside
Mall (ground floor), U.S. Environmental Protection Agency, 401 M Street
SW, Washington, D.C. 20460. Other materials relevant to the
reformulated gasoline final rule are contained in Public Dockets A-91-
02 and A-92-12 The docket may be inspected from 8:00 a.m. until 4:00
p.m. Monday through Friday. As provided in 40 CFR part 2, a reasonable
fee may be charged by EPA for copying docket materials.
FOR FURTHER INFORMATION CONTACT: Joann Jackson Stephens, USEPA (RDSD-
12), Regulation Development and Support Division, 2565 Plymouth Road,
Ann Arbor, MI 48105, Telephone: (313) 668-4276. To request copies of
this document contact: Delores Frank, U.S. EPA (RDSD-12), Regulation
Development and Support Division, 2565 Plymouth Road, Ann Arbor, MI
48105, Telephone: (313) 668-4295.
SUPPLEMENTARY INFORMATION: The DFRM published by EPA on July 20, 1994
made a number of changes to EPA's regulations for reformulated and
conventional gasoline. EPA issued a direct final rule because the
changes it contained were generally minor in nature and were expected
to be non-controversial. The DFRM allowed the Agency to finalize such
changes in an expeditious and timely manner. For instance, many of the
changes clarified issues relevant to the development and auditing of
individual baselines which were to be submitted no later September 1,
1994. Likewise, since the reformulated gasoline program will commence
on December 1, 1994, the clarifications and changes contained in the
direct final rule promote successful implementation of the reformulated
gasoline and anti-dumping programs.
Since a number of the changes to the final rule were not
insubstantial, EPA provided a 30-day comment period in which comments
on specific items could be submitted or a public hearing requested. EPA
also announced that it would withdraw from the direct final rule those
items that were adversely commented on. This would have the effect of
re-activating the regulatory provisions for those items in the final
rule for reformulated gasoline promulgated on December 15, 1993 and
published in the Federal Register on February 16, 1994 (59 FR 7715).
The Agency has received adverse comments on just a few of the
changes in the direct final rule. The comments themselves can be found
in Public Docket A-94-30. Each of the specific items addressed in the
comments is being withdrawn from the DFRM by today's action, which is
effective immediately. All items that were not adversely commented on
will go into effect on September 19, 1994.
A copy of this action is available on the EPA's Office of Air
Quality Planning and Standards (OAQPS) Technology Transfer Network
Bulletin Board System (TTNBBS). The service is free of charge, except
for the cost of the phone call. Users are able to access and download
TTN files on their first call. The TTNBBS can be accessed with a dialin
[[Page 6031]]
phone line and a high-speed modem per the following information.TTN
BBS: 919-541-5742 (1200-14400 bps, no parity, 8 data bits, 1 stop bit)
Voice Helpline: 919-541-5384
Also accessible via Internet: TELNET ttnbbs.rtpnc.epa.gov
Off-line: Mondays from 8:00 AM to 12:00 Noon ET
When first signing on, the user will be required to answer some
basic informational questions for registration purposes. After
completing the registration process, proceed through the following
series of menus:
<T> GATEWAY TO TTN TECHNICAL AREAS (Bulletin Boards)
<M> OMS
<K> Rulemaking and Reporting
<3> Fuels
<9> Reformulated gasoline
A list of ZIP files will be shown, all of which are related to the
reformulated gasoline rulemaking process. To download any file, type
the instructions below and transfer according to the appropriate
software on your computer:
<D>ownload, <P>rotocol, <E>xamine, <N>ew, <L>ist, or <H>elp
Selection or <CR> to exit: D filename.zip
You will be given a list of transfer protocols from which you must
choose one that matches with the terminal software on your own
computer. The software should then be opened and directed to receive
the file using the same protocol. Programs and instructions for dearchiving
compressed files can be found via <S>ystems Utilities from
the top menu, under <A>rchivers/de-archivers. After getting the files
you want onto your computer, you can quit the TTN BBS with the
<G>oodbye command. Please note that due to differences between the
software used to develop the document and the software into which the
document may be downloaded, changes in format, page length, etc. may
occur.
The remainder of this preamble is organized into the following
sections:
I. Withdrawal of Change to JP-4 to Gasoline Production Ratio
II. Withdrawal of JP-4 Adjustment Multi-Refinery Requirement
III. Withdrawal of Change to the Valid Range Limits for RVP under
the Simple Model
I. Withdrawal of Change to JP-4 to Gasoline Production Ratio
EPA received comments from Shell Oil Company, Phillips 66 Company,
and Chevron USA Products Company objecting to the change of the 1990
JP-4 to gasoline production ratio from 0.5 to 0.2. A discussion of
EPA's perspective on this regulatory provision was presented in Section
IV, Part B.2 of the DFRM preamble. See 59 FR 36944 (July 20, 1994). For
the most part, commenters expressed the belief that the selection of
the 0.2 JP-4 to gasoline production ratio was arbitrary. In addition,
EPA was faulted with disregarding the significant economic and
competitive impact of redefining the ratio on those refiners with
ratios falling below 0.2. In fact, most commenters supported allowing
baseline adjustments for all refiners that produced JP-4 in 1990,
thereby eliminating the need for a JP-4 to gasoline ratio altogether.
Since commenters objected to the change in specifying this ratio,
as announced in the DFRM, EPA is withdrawing the action in the July
DFRM which lowered the 1990 JP-4 to gasoline production ratio to 0.2.
The 0.2 ratio will not go into effect on September 19th. The criteria
for an adjustment to an individual baseline based on production of JP-4
will include a 1990 JP-4 to gasoline production ratio of 0.5, as was
promulgated in the December 1993 final regulations for reformulated
gasoline.
II. Withdrawal of JP-4 Adjustment Multi-Refinery Requirement
A. Withdrawal of Relaxation of the Requirement That All Refineries in
an Aggregate Produced JP-4 in 1990
In August, EPA received comments from Chevron USA Products Company
regarding the revised JP-4 adjustment appearing in the July DFRM. In
addition to the JP-4 to gasoline production ratio, Chevron objected to
the change in the multiple refinery requirement discussed in Preamble
Section VI.B.1. See 59 FR 36944 (July 20, 1994). Chevron argued in
their comments that the combined provisions for the JP-4 adjustment
(ratio and multi-refiner requirement) were designed to benefit a
certain class of refiners and thereby providing that class of refiners
with competitive advantages not offered to all refiners.
The DFRM would have altered the regulations to allow utilization of
the JP-4 adjustment for those refiners with multiple refineries (miltirefinery
refiner) regardless of whether or not each of their refineries
produced JP-4 in 1990. The DFRM revised provision was intended to treat
refiners who produced JP-4 equally regardless of whether or they owned
more than one refinery. Since the Agency received a critical comment on
the revised multiple refinery provision in the DFRM, EPA is now
withdrawing that provision. The requirement for multi-refinery refiner
reverts to the original provision contained in the December 1993 final
reformulated gasoline rule. Therefore, baseline adjustments are only
allowed for multi-refinery refiners where each of a refiner's
refineries produced JP-4 in 1990.
B. Withdrawal of the Requirement for an Aggregate JP-4 Production Ratio
Calculation
The July DFRM also contained a provision which would have required
refiners of multiple refineries to average their 1990 JP-4 production
to 1990 gasoline production ratio across all of their refineries. See
59 FR 36944 (July 20, 1994). The Agency received adverse comments on
this provision from Chevron and Pennzoil. While Chevron did not
specifically mention objections to this element of the multi-refinery
requirement promulgated in the DFRM, the Agency understands Chevron's
critical comments as applying equally to each component of the DFRM
multi-refinery requirement. Pennzoil objected to the DFRM's requirement
to average the JP-4 to gasoline production ratio over all a refiner's
refineries (in essence an aggregate ratio) if the ratio reverts back to
0.5 as promulgated in the December 1993 RFG final regulations. Pennzoil
claimed that the combination of the higher, more stringent ratio
threshold (0.5) and the more restrictive requirement to calculate
across all of a multi-refiner's refineries would eliminate the
meaningful relief to JP-4 producers.
Since EPA received adverse comments on those provisions, it is
withdrawing those regulatory provisions receiving negative comments.
Today's action withdraws the July DFRM JP-4 adjustment multiple
refinery provisions. The multiple refinery provisions in
Sec. 80.91(e)(7) remain as promulgated in the December 1993
reformulated gasoline final rule.
III. Withdrawal of Change to the Valid Range Limits for RVP Under the
Simple Model
In August, the American Automobile Manufacturers Association (AAMA)
submitted comments to the Agency which objected to the change in the
low end valid range for RVP under the Simple Model. Their concern is
that low RVP fuels might have high driveability indices (DIs).
According to AAMA, high DI fuels produce higher vehicle emissions and
poor customer satisfaction. As explained in their comments, unlike the
Complex Model, the Simple Model does not limit distillation
temperatures and the promulgated extension of the RVP valid
[[Page 6032]]
range could allow production of fuels with low volatility and a high
DI.EPA's July DFRM provision would have revised the low end of the
valid range for RVP under the Simple Model to 6.4 psi, from 6.6 psi.
The Agency made this alteration to the regulations to make the low end
of the valid range for RVP consistent throughout Phase I of the federal
reformulated gasoline program, and provide additional flexibility for
refiners to complement the already established blending and enforcement
tolerances. However, since AAMA submitted comments which are critical
of the Agency's Simple Model valid range revision before the August
19th deadline, EPA is withdrawing the revised provision. The low end
valid range RVP limit under the Simple Model remains 6.6 psi, as was
promulgated in the December 1993 reformulated gasoline regulations.
Therefore the amendments to Sec. 80.91(e)(7) (the altered JP-4
multi-refinery requirement and the lower 1990 JP-4 to gasoline
production ratio) and to Sec. 80.42 table in paragraph (c)(1) (altering
the lower limit RVP valid range in the simple model) appearing at 59 FR
36944 (July 20, 1994), which were to become effective September 19,
1994 are hereby withdrawn.
It is important to note that EPA's withdrawal of these regulatory
changes is not based on EPA's agreement or disagreement with the
adverse comments received. The withdrawal is based solely on EPA's
determination, announced in the DFRM, that these changes would go into
effect as a direct final rule only if no persons submitted adverse
comments or requested an opportunity to comment. EPA is reviewing
comments and is currently developing a notice of proposed rulemaking
that will address the regulatory changes withdrawn by this notice.
EPA is withdrawing these provisions to the reformulated and
conventional gasoline regulations without providing prior notice and an
opportunity to comment because it finds there is good cause within the
meaning of 5 U.S.C. 553(b) to do so. Notice and comment would be
impracticable, as EPA needs to withdraw these changes quickly as they
go into effect on September 19, 1994. In addition further notice is not
necessary as EPA has already informed the public it would follow this
procedure if adverse or critical comments were received within 30 days
of the publication of the DFRM. For the same reasons, EPA finds it has
good cause under 5 U.S.C. 533(b) to make this withdrawal immediately
effective.
IV. Statutory Authority
The statutory authority for this action 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
Envrironmental protection, Air pollution control, Fuel additives,
Gasoline, Motor vehicle pollution.
Dated: January 26, 1995.
Carol M. Browner,
Administrator.
40 CFR part 80 is amended as follows:
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES
The authority citation for part 80 continues to read as follows:
Authority: Sections 114, 211 and 301(a) of the Clean Air Act as
amended, 42 U.S.C. 7414, 7545 and 7601(a).
2. In Sec. 80.42, the table in paragraph (c)(1) is revised to read
as follows:
Sec. 80.42 Simple emissions model.
* * * *
(c) * * *
(1) * * *
Fuel parameter Range
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