
[Federal Register Volume 79, Number 31 (Friday, February 14, 2014)]
[Proposed Rules]
[Pages 8923-8926]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03328]


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 ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2013-0794; FRL-9906-66-Region-4]


Approval and Promulgation of Implementation Plans; Kentucky; 
Stage II Requirements for the Hertz Corporation Facility at Cincinnati/
Northern Kentucky International Airport in Boone County

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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[[Page 8924]]

SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a source-specific State Implementation Plan (SIP) revision 
submitted to EPA by the Commonwealth of Kentucky, through the Kentucky 
Division for Air Quality (KDAQ) on January 17, 2014, for the purpose of 
exempting a Hertz Corporation facility from the Clean Air Act (CAA or 
Act) Stage II vapor control requirements. The subject Hertz Corporation 
facility is currently being constructed at the Cincinnati/Northern 
Kentucky International Airport in Boone County, Kentucky. EPA's 
proposed approval of this revision to Kentucky's SIP is based on 
rationale contained in the December 12, 2006 EPA policy memorandum from 
Stephen D. Page, entitled ``Removal of Stage II Vapor Recovery in 
Situations Where Widespread Use of Onboard Refueling Vapor Recovery is 
Demonstrated.'' This action is being proposed pursuant to the CAA.

DATES: Comments must be received on or before March 17, 2014.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2013-0794 by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: R4-RDS@epa.gov.
    3. Fax: (404) 562-9019.
    4. Mail: EPA-R04-OAR-2013-0794, Regulatory Development Section, Air 
Planning Branch, Air, Pesticides and Toxics Management Division, U.S. 
Environmental Protection Agency, Region 4, 61 Forsyth Street SW., 
Atlanta, Georgia 30303-8960.
    5. Hand Delivery or Courier: Lynorae Benjamin, Chief, Regulatory 
Development Section, Air Planning Branch, Air, Pesticides and Toxics 
Management Division, U.S. Environmental Protection Agency, Region 4, 61 
Forsyth Street SW., Atlanta, Georgia 30303-8960. Such deliveries are 
only accepted during the Regional Office's normal hours of operation. 
The Regional Office's official hours of business are Monday through 
Friday, 8:30 a.m. to 4:30 p.m., excluding federal holidays.
    Instructions: Direct your comments to Docket ID No. ``EPA-R04-OAR-
2013-0794.'' EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online at www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit through 
www.regulations.gov or email, information that you consider to be CBI 
or otherwise protected. The www.regulations.gov Web site is an 
``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an email comment directly to EPA without 
going through www.regulations.gov, your email address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional information about EPA's public 
docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the electronic docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, i.e., 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 in www.regulations.gov or 
in hard copy at the Regulatory Development Section, Air Planning 
Branch, Air, Pesticides and Toxics Management Division, U.S. 
Environmental Protection Agency, Region 4, 61 Forsyth Street SW., 
Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you 
contact the person listed in the FOR FURTHER INFORMATION CONTACT 
section to schedule your inspection. The Regional Office's official 
hours of business are Monday through Friday, 8:30 to 4:30, excluding 
federal holidays.

FOR FURTHER INFORMATION CONTACT: For information regarding this source 
specific SIP revision, contact Ms. Kelly Sheckler, Air Quality Modeling 
and Transportation Section, Air Planning Branch, Air, Pesticides and 
Toxics Management Division, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Ms. 
Sheckler's telephone number is (404) 562-9222; email address: 
sheckler.kelly@epa.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Analysis of the Commonwealth's Submittal
III. Proposed Action
IV. Statutory and Executive Order Reviews

I. Background

    Under the CAA Amendments of 1990, EPA designated and classified 
three Kentucky Counties (Boone, Campbell and Kenton) and four Ohio 
Counties (Butler, Clermont, Hamilton and Warren) as a part of the 
Cincinnati/Northern Kentucky ``moderate'' nonattainment area for the 1-
hour ozone national ambient air quality standards (NAAQS). See 56 FR 
56694 (November 6, 1991). The designation was based on the Area's 1-
hour ozone design value of 0.157 parts per million for the three year 
period of 1988-1990.
    Pursuant to the requirements of section 182(b)(3) \1\ of the CAA, 
KDAQ developed the Kentucky Administrative Regulation (KAR) 401 KAR 
59:174 ``Stage II controls at gasoline dispensing facilities,'' and 
submitted the rule to EPA for approval as part of Kentucky's ozone SIP. 
The rule was adopted by Kentucky on January 12, 1998, and approved by 
EPA into the SIP on December 8, 1998 (63 FR 675896). Under this 
regulation, gasoline dispensing facilities with a monthly throughput of 
25,000 gallons or more located in a Kentucky County in which the entire 
County is classified as severe, serious, or moderate nonattainment for 
ozone are required to install Stage II vapor recovery systems.
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    \1\ Section 182(b)(3) of the Act requires that states submit SIP 
revisions for moderate ozone nonattainment areas requiring that a 
system for gasoline vapor recovery of emissions from the refueling 
of motor vehicles be implemented in such nonattainment areas.
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    On October 29, 1999, having implemented all measures required of 
Kentucky to that date for moderate ozone nonattainment areas under the 
CAA, and with three years of data (1996-1998) showing compliance with 
the 1-hour ozone standards, KDAQ submitted to EPA an ozone maintenance 
plan and request for redesignation of the Kentucky portion of 
Cincinnati/Northern Kentucky area to attainment status. The maintenance 
plan, as required under section 175A of the CAA, showed that nitrogen 
oxides and volatile organic compounds (VOC)

[[Page 8925]]

emissions in the Area would remain below the 1990 ``attainment year's'' 
levels. In making these projections KDAQ factored in the emissions 
benefit (primarily VOC) of the Area's Stage II program, and did not 
remove this program from the Kentucky SIP. The redesignation request 
and maintenance plan were approved by EPA on June 19, 2000 (65 FR 
37879).
    Since the Kentucky Stage II program was already in place and had 
been included in the Commonwealth's October 29, 1999, redesignation 
request and 1-hour ozone maintenance plan for the Area, KDAQ elected 
not to remove the program from the SIP at that time. On April 6, 1994, 
EPA promulgated regulations requiring the phase-in of onboard refueling 
vapor recovery (ORVR) systems on new motor vehicles. Under section 
202(a)(6) of the CAA, moderate ozone nonattainment areas are not 
required to implement Stage II vapor recovery programs after 
promulgation of ORVR standards.

II. Analysis of the Commonwealth's Submittal

    EPA's primary consideration for determining the approvability of 
Kentucky's request to exempt Stage II vapor control requirements for 
the Hertz Corporation facility located at the Cincinnati/Northern 
Kentucky International Airport in Boone County is whether this 
requested action complies with the requirements of section 110(l) of 
the CAA. Below is EPA's analysis of these considerations.

a. Federal Requirements for Stage II

    States were required to adopt Stage II rules for all areas 
classified as ``moderate'' or worse under section 182(b)(3) of the CAA. 
However, section 202(a)(6) of the CAA states that ``the requirements of 
section 182(b)(3) (relating to Stage II gasoline vapor recovery) for 
areas classified under section 181 as moderate for ozone shall not 
apply after the promulgation of such [ORVR] standards.'' ORVR 
regulations were promulgated by EPA on April 6, 1994. See 59 FR 16262, 
and 40 CFR 86.001, .098). As a result, the CAA no longer requires 
moderate areas to impose Stage II controls under section 182(b)(3), and 
such areas may seek SIP revisions to remove such requirements from 
their SIP, subject to section 110(l) of the Act. EPA's policy memoranda 
related to ORVR, dated March 9, 1993, and June 23, 1993, provided 
further guidance on removing Stage II requirements from certain areas. 
The policy memorandum dated March 9, 1993, states ``[w]hen onboard 
rules are promulgated, a State may withdraw its Stage II rules for 
moderate areas from the SIP (or from consideration as a SIP revision) 
consistent with its obligation under sections 182(b)(3) and 202(a)(6), 
so long as withdrawal will not interfere with any other applicable 
requirements of the Act.'' Because the Stage II vapor controls in 
Kentucky are implemented pursuant to the Commonwealth's approved 
maintenance plan, the Commonwealth's request for a source specific 
exemption from the Stage II vapor control requirements is subject to 
the requirements of section 110(l) of the CAA.
    Section 110(l) of the Act provides that EPA cannot approve a SIP 
revision if that revision interferes with any applicable requirement 
regarding attainment, reasonable further progress (RFP) or any 
requirement established in the CAA. EPA can approve a SIP revision that 
removes or modifies control measures in the SIP once states make a 
``noninterference'' demonstration that such a removal or modification 
will not interfere with attainment of the NAAQS, RFP or any other CAA 
requirement. As such, Kentucky must make a demonstration of 
noninterference in order to exempt the Hertz Corporation facility 
located at the Cincinnati/Northern Kentucky International Airport in 
Boone County from the Stage II requirements.

b. Cincinnati-Hamilton Interstate Area Air Quality Status

    With respect to ozone, on April 30, 2004, EPA designated the 
Cincinnati/Northern Kentucky Area as nonattainment for the 1997 8-hour 
ozone NAAQS. See 69 FR 23857. On January 29, 2010, the Commonwealth 
submitted to EPA a redesignation request and maintenance plan for the 
1997 8-hour ozone NAAQS. EPA then redesignated the Cincinnati/Northern 
Kentucky area to attainment for the 1997 8-hour ozone NAAQS on August 
5, 2010 (75 FR 4718). EPA then designated portions of Boone, Campbell 
and Kenton Counties in Kentucky as moderate nonattainment for the 2008 
8-hour ozone NAAQS as part of the Cincinnati/Northern Kentucky 
Nonattainment Area. This designation for the 2008 8-hour ozone NAAQS 
was effective July 20, 2012. See 77 FR 30088.
    With respect to PM, on July 18, 1997, EPA promulgated the first air 
quality standards for PM2.5. EPA promulgated an annual 
PM2.5 standard at a level of 15 micrograms per cubic meter 
([mu]g/m\3\), based on a 3-year average of annual mean PM2.5 
concentrations. In the same rulemaking, EPA promulgated a 24-hour 
standard of 65 [mu]g/m\3\, based on a 3-year average of the 98th 
percentile of 24-hour PM2.5 concentrations. On January 5, 
2005, at 70 FR 944, and supplemented on April 14, 2005, at 70 FR 19844, 
EPA designated Boone, Campbell, and Kenton Counties in Kentucky as part 
of the tri-state Cincinnati-Hamilton Nonattainment Area for the 1997 
PM2.5 NAAQS.\2\
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    \2\ EPA subsequently clarified that the Tri-state Cincinnati-
Hamilton Area was classified unclassifiable/attainment for the 24-
hour NAAQS promulgated in 1997. See 74 FR 58688 (November 13, 2009).
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    On January 27, 2011, KDAQ submitted a request to redesignate the 
Kentucky portion of the tri-state Cincinnati-Hamilton Area 
PM2.5 Nonattainment Area to attainment for the 1997 Annual 
PM2.5 NAAQS based on 2007-2009 data. On December 15, 2011, 
EPA published the final rulemaking redesignating the Area to attainment 
for the 1997 annual PM2.5 NAAQS. See 76 FR 77904.
    In 2006, EPA strengthened the primary and secondary 24-hour 
PM2.5 NAAQS from 65 [mu]g/m\3\ to 35 [mu]g/m\3\, and 
retained the current primary and secondary annual PM2.5 
NAAQS at 15 [mu]g/m\3\. See 71 FR 61144, October 17, 2006. The revision 
of the 24-hour PM2.5 NAAQS in 2006, triggered the 
designation process for the NAAQS. The Cincinnati/Northern Kentucky 
Area was designated attainment for the 2006 PM2.5 NAAQS. See 
74 FR 58688, November 13, 2009.

c. Non-Interference Demonstration for Exemption of Stage II 
Requirements

    EPA is making the preliminary determination that Kentucky's January 
17, 2014, source-specific revision to the Kentucky SIP is approvable 
based on the CAA and the December 12, 2006, EPA memorandum from Stephen 
D. Page entitled, ``Removal of Stage II Vapor Recovery in Situations 
Where Widespread use of On-board Refueling Vapor Recovery is 
Demonstrated,'' which provides guidance to states concerning the 
removal of Stage II gasoline vapor recovery systems where states 
demonstrate to EPA that widespread use of ORVR has occurred in specific 
portions of the motor vehicle fleet.
    As previously discussed, states were required to adopt Stage II 
rules for such areas under section 182(b)(3) of the CAA. However, 
section 202(a)(6) of the CAA provides that the requirements of section 
182(b)(3) (relating to Stage II gasoline vapor recovery) for areas 
classified as moderate for ozone shall not apply after the promulgation 
of ORVR standards. As noted above, the Hertz Corporation facility is 
located in a moderate nonattainment area for

[[Page 8926]]

purposes of the 2008 ozone NAAQS. Nevertheless, pursuant to the 
December 12, 2006 Memorandum, EPA is proposing to conclude that an 
analysis as described in the guidance is relevant to satisfy the 
section 110(l) demonstration necessary to exempt the Hertz Corporation 
facility from the Stage II vapor control requirements.
    EPA believes the widespread use of ORVR has been sufficiently 
demonstrated with respect to the rental car fleet that will be utilized 
by the Hertz Corporation facility at issue.\3\ EPA's December 12, 2006, 
memorandum states that if 95 percent of the vehicles in the fleet have 
ORVR, then widespread use will likely have been demonstrated for that 
fleet. The memorandum addresses the following specific fleets:
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    \3\ On May 16, 2012, EPA made a determination that ORVR was in 
widespread use throughout the motor vehicle fleet for purposes of 
controlling motor vehicle refueling emissions. See 77 FR 28772. EPA 
estimated that approximately 70 percent of all vehicles would be 
equipped with on-board systems to capture these vapors by the end of 
2012, rendering the use of Stage II vapor recovery systems 
redundant.
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     Initial fueling of new vehicles at automobile assembly 
plants;
     Refueling of rental cars at rental car facilities; and
     Refueling of flexible fuel vehicles at E85 dispensing 
pumps.
    Most large rental companies rent current model vehicles, that are 
equipped with ORVR and vehicle models are updated to current year 
models every year or two. The Commonwealth of Kentucky has confirmed 
that 100 percent of the fleet will be equipped with 2006 model year 
(first model year vehicles required to be equipped with ORVR) and newer 
vehicles at the Hertz Corporation facility at the Cincinnati/Northern 
Kentucky International Airport in Boone County.
    EPA has preliminarily determined that Kentucky has adequately 
demonstrated that ORVR is in widespread use and that the Stage II 
requirements of the Kentucky SIP have been sufficiently supplanted by 
the ORVR such that exemption of the Hertz Corporation facility from the 
Stage II requirements would not interfere with any applicable 
requirement concerning attainment and reasonable further progress or 
any other applicable requirement of the CAA.

III. Proposed Action

    EPA is proposing to approve the aforementioned source-specific SIP 
revision request from Kentucky. VOC emissions from vehicles at the 
Hertz Corporation facility are controlled by ORVR, therefore, EPA has 
preliminarily concluded that removal of Stage II requirements at this 
facility would not result in an increase of VOC emissions, and thus 
would not contribute to ozone formation. The Commonwealth is seeking to 
exempt this facility from the Stage II requirements and EPA has 
preliminarily determined that Kentucky has fully satisfied the 
requirements of section 110(l) of the CAA. Therefore, EPA is proposing 
to approve this source-specific SIP revision as being consistent with 
section 110 of the CAA.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
proposed action merely approves state law as meeting federal 
requirements and does not impose additional requirements beyond those 
imposed by Commonwealth law. For that reason, these proposed actions:
     Are not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Do not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Are certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Do not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Public Law 104-4);
     Do not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Are not an economically significant regulatory action 
based on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Are not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Are not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Do not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this proposed rule does not have tribal implications 
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the Commonwealth, and it will not impose substantial direct costs on 
tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Greenhouse gas, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Authority:  42 U.S.C. 7401 et seq.

    Dated: February 3, 2014.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 2014-03328 Filed 2-13-14; 8:45 am]
BILLING CODE 6560-50-P


