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Regulation of Fuels and Fuel Additives: Extension of the Reformulated Gasoline Program to Maine's Southern Counties

American Government Special Collections Reference Desk

American Government

Regulation of Fuels and Fuel Additives: Extension of the Reformulated Gasoline Program to Maine's Southern Counties

Gina McCarthy
Environmental Protection Agency
February 6, 2015


[Federal Register Volume 80, Number 25 (Friday, February 6, 2015)]
[Rules and Regulations]
[Pages 6658-6662]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02185]


=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2014-0283; FRL 9921-82-OAR]
RIN 2060-AS19


Regulation of Fuels and Fuel Additives: Extension of the 
Reformulated Gasoline Program to Maine's Southern Counties

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is extending the 
Clean Air Act's (CAA) prohibition against the sale of conventional 
gasoline in reformulated gasoline (RFG) areas to the southern Maine 
counties of York, Cumberland, Sagadahoc, Androscoggin, Kennebec, Knox, 
and Lincoln (hereinafter, the ``Southern Maine Counties''). This action 
is based on a request from the Governor of the State of Maine for areas 
within the ozone transport region established under the CAA. The CAA 
does not give the EPA discretion to deny a Governor's request on this 
matter. The scope of the EPA's discretion is limited to establishing 
the date that the prohibition commences. Consistent with the Governor's 
request, the EPA is finalizing as proposed a prohibition commencement 
date of May 1, 2015 for all refiners, importers, and distributors in 
the Maine counties referenced in the Governor's request, and June 1, 
2015 for all retailers and wholesale purchaser-

[[Page 6659]]

consumers in those counties. The EPA is also adding in its RFG opt-out 
rules a provision to reflect that there is a four-year minimum opt-in 
period for areas that opt into the RFG program on the basis of their 
location within the ozone transport region. This clarification aligns 
the federal regulation for RFG opt-out requirements with the CAA.

DATES: This final rule is effective on March 9, 2015.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2014-0283. All documents in the docket are 
listed on the www.regulations.gov Web site. Although listed in the 
index, some information is not publicly available, e.g., CBI or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, is not placed on the Internet 
and will be publicly available only in hard copy form. Publicly 
available docket materials are available either electronically through 
www.regulations.gov or in hard copy at the Air and Radiation Docket, 
EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution 
Avenue NW., Washington, DC 20004. This Docket Facility is open from 
8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 
holidays. The Docket telephone number is (202) 566-1744, and the 
telephone number for the Air Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Patty Klavon, Office of Transportation 
and Air Quality, Environmental Protection Agency, 2000 Traverwood 
Drive, Ann Arbor, Michigan, 48105; telephone number: (734) 214-4476; 
fax number: (734) 214-4052; email address: klavon.patty@epa.gov.

SUPPLEMENTARY INFORMATION:
    The contents of this preamble are listed in the following outline:

I. General Information
II. Background
III. Description of the Final Rule
IV. Rationale
V. Statutory and Executive Order Reviews
VI. Legal Authority and Statutory Provisions

I. General Information

A. Does this action apply to me?

    Entities potentially affected by this rule are fuel producers and 
distributors who do business in Maine.

------------------------------------------------------------------------
                                                                  NAICS
           Examples of potentially regulated entities              \1\
                                                                  Codes
------------------------------------------------------------------------
Petroleum refineries...........................................   324110
Gasoline Marketers and Distributors............................   424710
                                                                  424720
Gasoline Retail Stations.......................................   447110
Gasoline Transporters..........................................   484220
                                                                  484230
------------------------------------------------------------------------

    The above is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. The table lists the types of entities of which the EPA is aware 
that potentially could be affected by this rule. Other types of 
entities not listed on the table could also be affected by this rule. 
To determine whether your organization could be affected by this rule, 
you should carefully examine the regulations in 40 CFR 80.70. If you 
have questions regarding the applicability of this action to a 
particular entity, call the person listed in the FOR FURTHER 
INFORMATION CONTACT section of this preamble.
---------------------------------------------------------------------------

    \1\ North American Industry Classification System.
---------------------------------------------------------------------------

II. Background

A. Background on the Federal Reformulated Gasoline Program

    The purpose of the federal RFG program is to improve air quality in 
certain areas through the use of gasoline that is reformulated to 
reduce motor vehicle emissions of tropospheric ozone-forming compounds, 
as set forth in CAA section 211(k)(1). The EPA first published 
regulations for the federal RFG program on February 16, 1994. (59 FR 
7716). RFG makes up over 30 percent of the volume of motor vehicle 
gasoline consumed in the United States \2\ and is used in 17 states and 
the District of Columbia.\3\
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    \2\ See the U.S. Energy Information Administration statistics on 
consumption and sales of petroleum and other liquids at: http://www.eia.gov/petroleum/reports.cfm?t=164.
    \3\ For a map showing current RFG areas, please visit the EPA's 
Web site at: http://www.epa.gov/otaq/fuels/gasolinefuels/rfg/areas.htm.
---------------------------------------------------------------------------

    CAA section 211(k)(5) prohibits the sale of conventional gasoline 
(i.e., gasoline that the EPA has not certified as reformulated) in 
certain ozone nonattainment areas beginning January 1, 1995. CAA 
section 211(k)(10)(D) defines the areas initially covered by the 
federal RFG program as ozone nonattainment areas having a 1980 
population in excess of 250,000 and having the highest ozone design 
values during the period 1987 through 1989.\4\ In addition, under CAA 
section 211(k)(10)(D), any area reclassified as a Severe ozone 
nonattainment area under CAA section 181(b) is also included in the 
federal RFG program. Finally, CAA sections 211(k)(6)(A) and (B) allow 
areas classified as Marginal, Moderate, Serious, or Severe ozone 
nonattainment areas, or areas within the ozone transport region 
established under CAA section 184, to opt into the RFG program at the 
request of the Governor of the State in which the area is located.
---------------------------------------------------------------------------

    \4\ Applying these criteria, the EPA has determined the nine 
covered areas to be the metropolitan areas including Los Angeles, 
Houston, New York City, Baltimore, Chicago, San Diego, Philadelphia, 
Hartford, and Milwaukee.
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    Maine is in the ozone transport region established under CAA 
section 184, and its request to opt into the RFG program was made 
pursuant to CAA section 211(k)(6)(B). That provision specifies that 
upon petition of the Governor of a State in the ozone transport region, 
the EPA is to apply the prohibition against selling or dispensing of 
conventional gasoline in RFG covered areas in any area in the State 
other than an area classified as Marginal, Moderate, Serious, or Severe 
ozone nonattainment area under subpart 2 of part D of subchapter 1 of 
the Clean Air Act. This prohibition is to ``commence as soon as 
practicable but not later than 2 years after the date of approval by 
the Administrator of the application of the Governor of the State.'' 
CAA section 211(k)(6)(B)(ii)(I). However, if the EPA determines that 
there is insufficient capacity to supply RFG, the EPA may extend the 
commencement date by no more than a year, and may renew that extension 
for two additional one-year periods. CAA section 211(k)(6)(B)(iii). The 
area may not opt out of the federal RFG program earlier than four (4) 
years after the RFG commencement date. CAA section 
211(k)(6)(B)(ii)(II).

B. Request From the State of Maine

    In 2013, the State of Maine enacted Public Law 2013 c.221 calling 
for the use of RFG in York, Cumberland, Sagadahoc, Androscoggin, 
Kennebec, Knox, and Lincoln counties beginning May 1, 2014. On July 23, 
2013, the Governor of Maine formally requested, pursuant to CAA section 
211(k)(6)(B), that the EPA extend the requirement for the sale of RFG 
to these counties beginning on May 1, 2014.
    The Maine legislature subsequently enacted an emergency law, Public 
Law 2013 c.453, effective March 6, 2014, to postpone the requirement 
for the sale of RFG in these counties until June 1, 2015. Pursuant to 
that legislation, the

[[Page 6660]]

Commissioner for the State of Maine's Department of Environmental 
Protection (DEP) submitted a request to the EPA dated March 10, 2014, 
modifying Maine's request for the implementation date for the sale of 
RFG in the Southern Maine Counties to coincide with June 1, 2015.\5\
---------------------------------------------------------------------------

    \5\ The EPA has determined that the original petition from the 
Governor of Maine, together with the revised Maine legislation and 
the Commissioner's letter, serve as a petition from the Governor 
under CAA section 211(k)(6)(B) seeking commencement of the 
prohibition in CAA 211(k)(5) in the Southern Maine Counties on June 
1, 2015.
---------------------------------------------------------------------------

    Copies of the Commissioner's letter, the letter from the Governor 
of the State of Maine dated July 23, 2013, and the Maine legislation 
establishing the use of RFG in the Southern Maine Counties are 
available in the docket at EPA-HQ-OAR-2014-0283.
    The EPA issued a proposal for public comment on August 28, 2014 (79 
FR 51288), consistent with the State's request. No comments were 
received.

III. Description of the Final Rule

    Based on our evaluation of the appropriate lead time and start 
dates, and pursuant to Maine's request for a June 1, 2015 
implementation date and the provisions of CAA section 211(k)(6), the 
EPA is amending its RFG regulation at 40 CFR 80.70 to add new paragraph 
(n)(1) extending the CAA section 211(k)(5) prohibition against the sale 
of conventional (i.e., non-reformulated) gasoline in RFG covered areas 
to the Southern Maine Counties. Based on Maine's request for a June 1, 
2015 implementation date, the EPA is finalizing as proposed the 
prohibition on the sale of conventional gasoline in the Southern Maine 
Counties to commence as of May 1, 2015 for all regulated entities in 
these counties other than retailers and wholesale purchaser-consumers 
(i.e., refiners, importers, and distributors), and as of June 1, 2015 
for retailers and wholesale purchaser-consumers. Thus, conventional 
gasoline may not be sold to consumers in the Southern Maine Counties as 
of June 1, 2015. Only RFG may be sold to consumers in these counties as 
of June 1, 2015. The Southern Maine Counties are part of the ozone 
transport region as defined in CAA section 184. They are not currently 
classified under subpart 2 of Part D of CAA subchapter I as Marginal, 
Moderate, Serious, or Severe ozone nonattainment areas.
    Further, in today's action, EPA is updating its RFG opt-out 
regulation at 40 CFR 80.72 to add a new paragraph (c)(8) to reflect 
that there is a four-year minimum opt-in period for areas that opt into 
the RFG program on the basis of their location within the ozone 
transport region. This clarification aligns the federal regulation for 
RFG opt-out requirements with CAA section 211(k)(6)(B)(ii)(II).
    Thus, the State of Maine may not opt out of the federal RFG program 
for the Southern Maine Counties before May 1, 2019 for all regulated 
entities other than retailers and wholesale purchaser-consumers, and 
not before June 1, 2019 for retailers and wholesale purchaser-
consumers, respectively.

IV. Rationale

    The EPA has determined that the commencement dates for the 
prohibition of the sale of conventional gasoline in the Southern Maine 
Counties finalized in today's action provide a reasonable balance by 
achieving air quality benefits in southern Maine by the start of the 
2015 peak ozone season and providing adequate lead time for industry to 
prepare for program implementation. The dates are consistent with the 
State's request that the EPA require RFG to be sold in the Southern 
Maine Counties to coincide with the beginning of the high ozone season, 
which begins June 1 of each year. Thus, the dates provide environmental 
benefits by allowing southern Maine to achieve volatile organic 
compound (VOC) reduction benefits for the 2015 VOC control season. The 
dates are also consistent with the statutory requirement that the EPA 
set the date for commencement of the prohibition within two years of 
the EPA's approval of the application by the Governor.
    Today's final action has no effect on the approved Maine State 
Implementation Plan (SIP). The State of Maine intends to submit a 
proposed SIP revision requesting the removal of its existing 7.8 Reid 
Vapor Pressure fuel requirements for the Southern Maine Counties. The 
EPA will consider Maine's request when it is received.
    As stated previously, the EPA received no comments on the proposed 
rulemaking.

V. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is 
therefore not subject to review under Executive Orders 12866 and 13563. 
(76 FR 3821, January 21, 2011).

B. Paperwork Reduction Act

    This action does not impose any new information collection burden 
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq. Burden is defined at 5 CFR 1320.3. The OMB has approved the 
information collection requirements that apply to the RFG program (see 
59 FR 7716, February 16, 1994), and has assigned OMB control number 
2060-0277 (EPA ICR No. 1591.25).

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's final rule on 
small entities, small entity is defined as: (1) Defined by the Small 
Business Administration's (SBA) regulations at 13 CFR 121.201; (2) a 
small governmental jurisdiction that is a government of a city, county, 
town, school district or special district with a population of less 
than 50,000; and (3) a small organization that is any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.
    After considering the economic impacts of today's final rule on 
small entities, I certify that this action will not have a significant 
adverse impact on a substantial number of small entities. In 
promulgating the RFG regulations for conventional gasoline, the EPA 
analyzed the impact of the regulations on small entities. The EPA 
concluded that the regulations may possibly have some economic effect 
on a substantial number of small refiners, but that the regulations may 
not significantly affect other small entities, such as gasoline 
blenders, terminal operators, service stations and ethanol blenders. 
See 59 FR 7810-7811 (February 16, 1994). As stated in the preamble to 
the final 1994 RFG rule, exempting small refiners from the RFG 
regulations would not meet CAA requirements. 59 FR 7810. However, since 
most small refiners are located in the mountain states or in 
California, which has its own RFG program, the vast majority of small 
refiners are unaffected by the federal RFG requirements (although all 
refiners of conventional gasoline are potentially

[[Page 6661]]

subject to the RFG requirements). Moreover, all businesses, large and 
small, maintain the option to produce conventional gasoline to be sold 
in areas not obligated by the CAA to receive RFG or those areas which 
have not chosen to opt into the federal RFG program. A complete 
analysis of the effect of the RFG regulations on small businesses is 
contained in the Regulatory Flexibility Analysis which was prepared for 
the 1994 RFG regulations, and can be found in the docket for that 
rulemaking. The docket number is: EPA Air Docket A-92-12.
    Today's final rule affects only those refiners, importers or 
blenders of gasoline that choose to produce or import RFG for sale in 
the Southern Maine Counties, and gasoline distributors and retail 
stations in those areas. As discussed above, the EPA determined that, 
because of their location, the vast majority of small refiners will be 
unaffected by the RFG requirements. For the same reason, most small 
refiners will be unaffected by today's action. Other small entities, 
such as gasoline distributors and retail stations located in the 
Southern Maine Counties, which will become a covered area under today's 
final rule, will be subject to the same requirements as those small 
entities which are located in current RFG covered areas. The EPA did 
not find the previous RFG regulations to significantly affect these 
entities.

D. Unfunded Mandates Reform Act (UMRA)

    This final rule does not contain a Federal mandate that may result 
in expenditures of $100 million or more for State, local, and tribal 
governments, in the aggregate, or the private sector in any one year. 
Thus, this final rule is not subject to the requirements of sections 
202 and 205 of the UMRA. Although the EPA does not believe that UMRA 
imposes requirements for this rulemaking, the EPA notes that the 
environmental and economic impacts of the federal RFG program were 
assessed in the EPA's Regulatory Impact Analysis for the 1994 RFG 
regulations.
    This final rule is also not subject to the requirements of section 
203 of UMRA because it contains no regulatory requirements that might 
significantly or uniquely affect small governments.

E. Executive Order 13132 (Federalism)

    This action does not have federalism implications. It will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132. The final rule imposes requirements 
only on certain refiners and other entities in the gasoline 
distribution system, and not on States. The requirements of the final 
rule will be enforced by the federal government at the national level. 
Thus, Executive Order 13132 does not apply to this final rule.

F. Executive Order 13175

    This action does not have tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). Today's final 
rule affects only those refiners, importers or blenders of gasoline 
that choose to produce or import RFG for sale in the Southern Maine 
Counties, and gasoline distributors and retail stations in those areas. 
Thus, Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    This action is not subject to Executive Order 13045 (62 FR 19885, 
April 23, 1997) because it is not economically significant as defined 
in Executive Order 12866, and because the Agency does not believe the 
environmental health or safety risks addressed by this action present a 
disproportionate risk to children.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355, 
May 22, 2001) because it is not a significant regulatory action under 
Executive Order 12866.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), Public Law 104-113, 12(d) (15 U.S.C. 272 note) 
directs the EPA to use voluntary consensus standards in its regulatory 
activities unless to do so would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
voluntary consensus standards bodies. NTTAA directs the EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This action does not involve technical standards. Therefore, the 
EPA did not consider the use of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations of the United States.
    The EPA has determined that this final rule does not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it increases the 
level of environmental protection for all affected populations without 
having any disproportionately high and adverse human health or 
environmental effects on any population, including any minority or low-
income population.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. The EPA will submit a report containing this rule and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A Major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This rule will be effective March 9, 2015.

VI. Legal Authority and Statutory Provisions

    The statutory authority for this action is granted to the EPA by 
Sections 211(k) and 301(a) of the Clean Air Act, as amended; 42 U.S.C. 
7545(k), 7601(a).

[[Page 6662]]

List of Subjects in 40 CFR Part 80

    Environmental protection, Air pollution control, Fuel additives, 
Gasoline, Motor vehicle pollution.

    Dated: January 23, 2015.
Gina McCarthy,
Administrator.
    For the reasons discussed in the preamble, the Environmental 
Protection Agency is amending 40 CFR part 80 as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

0
1. The authority citation for part 80 continues to read as follows:

    Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).


0
2. Section 80.70 is amended by adding paragraph (n) to read as follows:


Sec.  80.70  Covered areas.

* * * * *
    (n) The areas included in paragraph (n) of this section are located 
within the ozone transport region established under Clean Air Act 
section 184(a), are not classified as a Marginal, Moderate, Serious, or 
Severe ozone nonattainment area, and have opted into the reformulated 
gasoline program. They are covered areas for the purposes of subparts 
D, E, and F of this part.
    (1) The southern Maine counties of York, Cumberland, Sagadahoc, 
Androscoggin, Kennebec, Knox, and Lincoln are a covered area beginning 
June 1, 2015. The prohibitions of Clean Air Act section 211(k)(5) apply 
to all persons other than retailers and wholesale purchaser-consumers 
in these counties beginning May 1, 2015. The prohibitions of section 
211(k)(5) of the Clean Air Act apply to retailers and wholesale 
purchaser-consumers in these counties beginning on June 1, 2015.
    (2) [Reserved]

0
3. Section 80.72 is amended by adding paragraph (c)(8) to read as 
follows:


Sec.  80.72  Procedures for opting out of the covered areas.

* * * * *
    (c) * * *
    (8) Notwithstanding any other provision of paragraph (c) of this 
section, for an area that opted in pursuant to Clean Air Act section 
211(k)(6)(B), the Administrator shall not set the effective date for 
removal of the area earlier than four years after the commencement date 
of opt-in.
* * * * *
[FR Doc. 2015-02185 Filed 2-5-15; 8:45 am]
BILLING CODE 6560-50-P

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