[Federal Register Volume 82, Number 245 (Friday, December 22, 2017)]
[Rules and Regulations]
[Pages 60675-60679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27630]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2017-0146; FRL-9972-06-OAR]
RIN 2060-AT69


Approval of Tennessee's Request To Relax the Federal Reid Vapor 
Pressure (RVP) Gasoline Volatility Standard for Shelby County (Memphis)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve a request from the state of Tennessee for EPA to 
relax the Reid Vapor Pressure (RVP) standard applicable to gasoline 
introduced into commerce from June 1 to September 15 of each year 
(summertime ozone season) in Shelby County, Tennessee (the Memphis 
Area). Specifically, EPA is approving amendments to the regulations to 
allow the gasoline RVP standard for Shelby County to rise from 7.8 
pounds per square inch (psi) to 9.0 psi. EPA has determined that this 
change to the federal RVP regulation is consistent with the applicable 
provisions of the Clean Air Act (CAA).

DATES: This final rule is effective on January 22, 2018.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OAR-2017-0461. All documents in the docket are listed on the 
www.regulations.gov website. Although listed in the index, some 
information may not be publicly available, e.g., Confidential Business 
Information (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 
electronically through www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: David Dickinson, Office of 
Transportation and Air Quality, U.S. Environmental Protection Agency, 
1200 Pennsylvania Avenue, Washington, DC 20460; telephone number: (202) 
343-9256; email address: [email protected], or Rudolph Kapichak, 
Office of Transportation and Air Quality, U.S. Environmental Protection 
Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105; telephone number: 
(734) 214-4574; email address: [email protected].

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

I. General Information
II. Action Being Taken
III. History of the Gasoline Volatility Requirement
IV. EPA's Policy Regarding Relaxation of Gasoline Volatility 
Standards in Ozone Nonattainment Areas That Are Redesignated as 
Attainment Areas
V. Tennessee's Request To Relax the Federal Gasoline RVP Requirement 
for Shelby County
VI. Final Action
VII. Statutory and Executive Order Reviews
VIII. 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 Shelby County.

[[Page 60676]]



------------------------------------------------------------------------
      Examples of potentially  regulated entities        NAICS \1\ codes
------------------------------------------------------------------------
Petroleum refineries...................................           324110
Gasoline Marketers and Distributors....................   424710, 424720
Gasoline Retail Stations...............................           447110
Gasoline Transporters..................................   484220, 484230
------------------------------------------------------------------------
\1\ North American Industry Classification System.

    The above table 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 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 80.27. If you 
have questions regarding the applicability of this action to a 
particular entity, see the FOR FURTHER INFORMATION CONTACT section of 
this preamble.

B. What is EPA's authority for taking this action?

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

II. Action Being Taken

    This final rule approves a request from the state of Tennessee to 
change the summertime gasoline RVP standard for Shelby County (the 
Memphis Area) from 7.8 psi to 9.0 psi by amending EPA's regulations at 
40 CFR 80.27(a)(2). Tennessee did not request relaxation of the federal 
RVP standard from 7.8 psi to 9.0 psi when it submitted the CAA section 
175A maintenance plan for the 2008 ozone national ambient air quality 
standard (NAAQS) that was approved on June 23, 2016 (81 FR 40816). In a 
subsequent rulemaking, based on Tennessee's April 12, 2017 request, EPA 
approved a CAA section 110(l) non-interference demonstration that 
relaxing the federal RVP gasoline requirement from 7.8 psi to 9.0 psi 
for gasoline sold from June 1 to September 15 of each year would not 
interfere with maintenance of the NAAQS in Shelby County. For more 
information on EPA's approval of Tennessee's CAA section 110(l) non-
interference demonstration for Shelby County, please refer to the July 
7, 2017 rulemaking (82 FR 31462).
    The preamble for this rulemaking is organized as follows: Section 
III, provides the history of the federal gasoline volatility 
regulation; Section IV, describes the policy regarding relaxation of 
volatility standards in ozone nonattainment areas that are redesignated 
as attainment areas; Section V, provides information specific to 
Tennessee's request for Shelby County; and Section VI, presents the 
final action in response to Tennessee's request.

III. History of the Gasoline Volatility Requirement

    On August 19, 1987 (52 FR 31274), EPA determined that gasoline 
nationwide was becoming increasingly volatile, causing an increase in 
evaporative emissions from gasoline-powered vehicles and equipment. 
Evaporative emissions from gasoline, referred to as volatile organic 
compounds (VOCs), are precursors to the formation of tropospheric ozone 
and contribute to the nation's ground-level ozone problem. Exposure to 
ground-level ozone can reduce lung function, thereby aggravating asthma 
and other respiratory conditions, increase susceptibility to 
respiratory infection, and may contribute to premature death in people 
with heart and lung disease.
    The most common measure of fuel volatility that is useful in 
evaluating gasoline evaporative emissions is RVP. Under CAA section 
211(c), EPA promulgated regulations on March 22, 1989 (54 FR 11868) 
that set maximum limits for the RVP of gasoline sold during the 
regulatory control periods that were established on a state-by-state 
basis in the final rule. The regulatory control periods addressed the 
portion of the year when peak ozone concentrations were expected. These 
regulations constituted Phase I of a two-phase nationwide program, 
which was designed to reduce the volatility of gasoline during the high 
ozone season. On June 11, 1990 (55 FR 23658), EPA promulgated more 
stringent volatility controls as Phase II of the volatility control 
program. These requirements established maximum gasoline RVP standards 
of 9.0 psi or 7.8 psi (depending on the state, the month, and the 
area's initial ozone attainment designation with respect to the 1-hour 
ozone NAAQS).
    The 1990 CAA Amendments established a new section 211(h) to address 
fuel volatility. CAA section 211(h) requires EPA to promulgate 
regulations making it unlawful to sell, offer for sale, dispense, 
supply, offer for supply, transport, or introduce into commerce 
gasoline with an RVP level in excess of 9.0 psi during the high ozone 
season. CAA section 211(h) also prohibits EPA from establishing a 
volatility standard more stringent than 9.0 psi in an attainment area, 
except that EPA may impose a lower (more stringent) standard in any 
former ozone nonattainment area redesignated to attainment.
    On December 12, 1991 (56 FR 64704), EPA modified the Phase II 
volatility regulations to be consistent with CAA section 211(h). The 
modified regulations prohibited the sale of gasoline with an RVP above 
9.0 psi in all areas designated attainment for ozone, effective January 
13, 1992. For areas designated as nonattainment, the regulations 
retained the original Phase II standards published on June 11, 1990 (55 
FR 23658), which included the 7.8 psi high ozone season limitation for 
certain areas. As stated in the preamble to the Phase II volatility 
controls and reiterated in the proposed change to the volatility 
standards published in 1991, EPA will rely on states to initiate 
changes to their respective volatility programs. EPA's policy for 
approving such changes is described below in Section IV. of this 
preamble.
    The state of Tennessee initiated this change by requesting that EPA 
relax the 7.8 psi gasoline RVP standard to 9.0 psi for Shelby County. 
Accordingly, the state of Tennessee provided a technical demonstration 
showing that relaxing the federal gasoline RVP requirements from 7.8 
psi to 9.0 psi would not interfere with maintenance of the NAAQS in 
Shelby County or with any other applicable CAA requirement. See Section 
V. of this preamble for information specific to Tennessee's request for 
Shelby County.

IV. EPA's Policy Regarding Relaxation of Gasoline Volatility Standards 
in Ozone Nonattainment Areas That Are Redesignated as Attainment Areas

    As stated in the rulemaking for EPA's amended Phase II volatility 
standards (56 FR 64706, December 12, 1991), any change in the 
volatility standard for a nonattainment area that was subsequently 
redesignated as an attainment area must be accomplished through a 
separate rulemaking that revises the applicable standard for that area. 
Thus, for former 1-hour ozone nonattainment areas where EPA mandated a 
Phase II volatility standard of 7.8 psi RVP in the December 12, 1991 
rulemaking, the federal 7.8 psi RVP gasoline requirement remains in 
effect, even after such an area is redesignated to attainment, until a 
separate rulemaking is completed that relaxes the federal RVP gasoline 
standard in that area from 7.8 psi to 9.0 psi.
    As explained in the December 12, 1991 (56 FR 64706) rulemaking, EPA 
believes that relaxation of an applicable gasoline RVP standard is best 
accomplished in conjunction with the redesignation process. In order 
for an

[[Page 60677]]

ozone nonattainment area to be redesignated as an attainment area, CAA 
section 107(d)(3) requires the state to make a showing, pursuant to CAA 
section 175A(a), that the area is capable of maintaining attainment for 
the ozone NAAQS for ten years. Depending on the area's circumstances, 
this maintenance plan will either demonstrate that the area is capable 
of maintaining attainment for ten years without the more stringent 
gasoline volatility standard or that the more stringent gasoline 
volatility standard may be necessary for the area to maintain 
attainment of the ozone NAAQS. Therefore, in the context of a request 
for redesignation, EPA will not initiate the rulemaking to amend 40 CFR 
80.27 to relax the gasoline volatility standard unless the state 
specifically requests a relaxation and the maintenance plan 
demonstrates to the satisfaction of EPA that the area will maintain 
attainment for ten years without the need for the more stringent 
volatility standard.

V. Tennessee's Request To Relax the Federal Gasoline RVP Requirement 
for Shelby County

    On April 12, 2017, the state of Tennessee, through the Tennessee 
Department of Environment and Conservation (TDEC), submitted a CAA 
section 110(l) non-interference demonstration which illustrated that 
removal of the federal RVP requirement of 7.8 psi for gasoline during 
the summertime ozone season for Shelby County would not interfere with 
maintenance of any NAAQS, including the 2008 ozone NAAQS. Specifically, 
TDEC provided a technical demonstration showing that relaxing the 
federal gasoline RVP requirement would not interfere with maintenance 
of the ozone NAAQS or with any other applicable requirement of the CAA. 
As noted above, Tennessee did not request relaxation of the federal RVP 
standard from 7.8 psi to 9.0 psi when it submitted a CAA section 175A 
maintenance plan for the 2008 ozone NAAQS that was approved on June 23, 
2016 (81 FR 40816). However, the approved maintenance plan included the 
use of gasoline with an RVP standard of 9.0 psi. Therefore, a revised 
maintenance plan with an RVP standard of 9.0 psi is not needed. 
Nevertheless, TDEC has appropriately requested (by its April 21, 2017 
letter) that EPA approve its non-interference demonstration and 
requested that Shelby County no longer be subject to the federal RVP 
standard of 7.8 psi for gasoline during the summertime ozone season.
    On May 11, 2017, EPA proposed to approve the CAA section 110(l) 
non-interference demonstration. The proposal provided an opportunity 
for the public to comment on the action. See 82 FR 21966. EPA received 
no comments on the proposal to approve the non-interference 
demonstration for Shelby County. In a July 7, 2017 final rule, EPA 
approved Tennessee's non-interference demonstration for Shelby County. 
See 82 FR 31462.
    EPA's proposal to amend the applicable gasoline RVP standard from 
7.8 psi to 9.0 psi (82 FR 39098, August 17, 2017) was subject to public 
notice and comment. EPA received no comment on its proposal. In this 
action, EPA is approving Tennessee's request to relax the summertime 
ozone season gasoline RVP standard for Shelby County from 7.8 psi to 
9.0 psi. Specifically, EPA is amending the applicable gasoline RVP 
standard from 7.8 psi to 9.0 psi provided at 40 CFR 80.27(a)(2). This 
action to approve Tennessee's request to relax the summertime ozone 
season RVP standard for Shelby County from 7.8 psi to 9.0 psi is based 
on EPA's July 7, 2017 approval of Tennessee's non-interference 
demonstration.

VI. Final Action

    EPA is taking final action to approve Tennessee's request for the 
Agency to relax the RVP standard applicable to gasoline introduced into 
commerce from June 1 to September 15 of each year in Shelby County from 
7.8 psi to 9.0 psi as provided at 40 CFR 80.27(a)(2). This approval is 
based on Tennessee's request and EPA's final determination in its July 
7, 2017 final rule (82 FR 31462) that Tennessee, as required by CAA 
section 110(l), made an adequate demonstration to show that removal of 
this federal requirement would not interfere with the ozone NAAQS in 
the Shelby County and is consistent with CAA requirements. This action 
amends the applicable gasoline RVP standard from 7.8 psi to 9.0 psi 
provided at 40 CFR 80.27(a)(2) for Shelby County.

VII. 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 and therefore 
was not submitted to the Office of Management and Budget (OMB) for 
review.

B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs

    This action is considered an Executive Order 13771 deregulatory 
action. This final rule provides meaningful burden reduction because it 
relaxes the federal RVP standard for gasoline in Shelby County, 
Tennessee and as a result, fuel suppliers will no longer be required to 
provide 7.8 psi lower RVP gasoline anywhere in Tennessee during the 
summer months (June 1st through September 15th). Relaxing the 
volatility requirements will also be beneficial because this action can 
improve the fungibility of gasoline sold in the State of Tennessee by 
allowing the gasoline sold in Memphis to be identical to the fuel sold 
throughout Tennessee.

C. Paperwork Reduction Act (PRA)

    This action does not impose any information collection burden under 
the PRA, because it does not contain any information collection 
activities.

D. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. The small entities subject to the 
requirements of this action are refiners, importers or blenders of 
gasoline that choose to produce or import low RVP gasoline for sale in 
Tennessee, and gasoline distributers and retail stations in Tennessee. 
This action relaxes the federal RVP standard for gasoline sold in 
Shelby County, Tennessee during the summertime ozone season (June 1 to 
September 15 of each year) to allow the RVP for gasoline sold in this 
county to rise from 7.8 psi to 9.0 psi. This rule does not impose any 
requirements or create impacts on small entities beyond those, if any, 
already required by or resulting from the CAA section 211(h) RVP 
program. We have therefore concluded that this action will have no net 
regulatory burden for all directly regulated small entities.

E. Unfunded Mandates Reform Act (UMRA)

    This final rule does not contain an unfunded mandate of $100 
million or

[[Page 60678]]

more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action 
implements mandates that are specifically and explicitly set forth in 
CAA section 211(h) without the exercise of any policy discretion by the 
EPA.

F. 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.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175. This final rule will affect only those refiners, 
importers or blenders of gasoline that choose to produce or import low 
RVP gasoline for sale in Shelby County and gasoline distributers and 
retail stations in the Area. Thus, Executive Order 13175 does not apply 
to this action.

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

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not concern an environmental 
health risk or safety risk. The EPA has no reason to believe that this 
action will disproportionately affect children since Tennessee has 
provided evidence that a relaxation of the gasoline RVP will not 
interfere with its attainment of the ozone NAAQS for Shelby County, or 
any other applicable CAA requirement. By separate action, the EPA has 
approved Tennessee's non-interference demonstration regarding its 
maintenance plan for the 2008 ozone NAAQS, and that Tennessee's 
relaxation of the gasoline RVP standard in Shelby County to 9.0 RVP 
will not interfere with any other NAAQS or CAA requirement.

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

    This action is not subject to Executive Order 13211 because it is 
not a significant regulatory action under Executive Order 12866.

J. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

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

    The EPA believes the human health or environmental risk addressed 
by this action will not have potential disproportionately high and 
adverse human health or environmental effects on minority, low-income 
or indigenous populations because it does not affect the applicable 
ozone NAAQS which establish the level of protection provided to human 
health or the environment. This rule relaxes the applicable volatility 
standard of gasoline during the summer. The EPA has concluded that the 
relaxation will not cause a measurable increase in ozone concentrations 
that would result in a violation of any ozone NAAQS including the 2008 
ozone NAAQS and the more stringent 2015 ozone NAAQS. Therefore, 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations are not an anticipated 
result. The results of this evaluation are contained in EPA's proposed 
and final rules for Tennessee's non-interference demonstration. A copy 
of Tennessee's April 12, 2017 letter requesting that the EPA relax the 
gasoline RVP standard, including the technical analysis demonstrating 
that the less stringent gasoline RVP would not interfere with continued 
maintenance of the 2008 ozone NAAQS in Shelby County, or with any other 
applicable CAA requirement, has been placed in the public docket for 
this action.

L. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller of the 
United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

M. Petitions for Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by February 20, 2018. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action for the purposes of judicial review nor 
does it extend the time within which a petition for judicial review may 
be filed, and shall not postpone the effectiveness of such rule or 
action.
    This action may not be challenged later in proceedings to enforce 
its requirements. See CAA section 307(b)(2).

VIII. Legal Authority and Statutory Provisions

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

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedures, 
Air pollution control, Fuel additives, Gasoline, Motor vehicle and 
motor vehicle engines, Motor vehicle pollution, Penalties, Reporting 
and recordkeeping requirements.

    Dated: December 15, 2017.
E. Scott Pruitt,
Administrator.
    For the reasons set out in the preamble, title 40, chapter I of the 
Code of Federal Regulations is amended 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. In Sec.  80.27, paragraph (a)(2)(ii) is amended in the table by 
revising the entry for ``Tennessee'' and footnote 10 to read as 
follows:


Sec.  80.27  Controls and prohibitions on gasoline volatility.

    (a) * * *
    (2) * * *
    (ii) * * *

[[Page 60679]]



                                                   Applicable Standards \1\ 1992 and Subsequent Years
--------------------------------------------------------------------------------------------------------------------------------------------------------
                               State                                       May              June             July            August         September
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
Tennessee \10\.....................................................             9.0              9.0              9.0              9.0              9.0
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
 * * * * * * *
\1\ Standards are expressed in pounds per square inch (psi).
 * * * * * * *
\10\ The standard for Knox County from June 1 until September 15 in 1992 through June 2, 1994 was 7.8 psi. The standard for the Middle Tennessee Area
  (Davidson, Rutherford, Sumner, Williamson, and Wilson Counties) from June 1 until September 15 in 1992 through June 7, 2017 was 7.8 psi. The standard
  in Shelby County (Memphis Area) from June 1 until September 15 in 1992 through 2017 was 7.8 psi.
 * * * * * * *

[FR Doc. 2017-27630 Filed 12-21-17; 8:45 am]
 BILLING CODE 6560-50-P


