
[Federal Register Volume 88, Number 153 (Thursday, August 10, 2023)]
[Proposed Rules]
[Pages 54259-54263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16791]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R10-OAR-2023-0341, FRL-11175-01-R10]


Air Plan Approval; Washington; Southwest Clean Air Agency; 
Emission Standards and Controls for Sources Emitting Gasoline Vapors

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) proposes to approve 
a revision to the Washington State Implementation Plan (SIP) for the 
Southwest Clean Air Agency (SWCAA) jurisdiction as it relates to the 
ozone National Ambient Air Quality Standard. This proposed revision 
updates SWCAA's requirements in the SIP for Stage I and Stage II vapor 
recovery systems at gasoline dispensing facilities including: 
decommissioning existing Stage II systems incompatible with onboard 
refueling vapor recovery systems on or before January 1, 2023; allowing 
removal from service of Stage II vapor recovery equipment compatible 
with onboard refueling vapor recovery on or after January 1, 2023; and 
removing the requirement for Stage II vapor recovery at new 
installations. The proposed revisions to the SIP also include, among 
other changes, revised requirements for installation of enhanced 
conventional nozzles, installation of low permeation hoses, and annual 
testing based on facility throughput. SWCAA's submittal, in 
coordination with the Washington Department of Ecology, incudes a 
demonstration that such removal of Stage II requirements is consistent 
with the Clean Air Act and EPA guidance.

DATES: Comments must be received on or before September 11, 2023.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R10-
OAR-2023-0341 at https://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e., on the web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Jeff Hunt, EPA Region 10, 1200 Sixth 
Avenue--Suite 155, Seattle, WA 98101, at (206) 553-0256, or 
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, it is intended to refer to the EPA.

I. Background

    Ozone is a gas composed of three oxygen atoms. Ground-level ozone 
is generally not emitted directly from a vehicle's exhaust or an 
industrial smokestack but is created by a chemical reaction between 
nitrogen oxides (NOX) and volatile organic compounds (VOC) 
in the presence of sunlight and high ambient temperatures. VOC and 
NOX emissions often are referred to as ``precursors'' to 
ozone formation. Thus, ozone is known primarily as a summertime air 
pollutant. Motor vehicle exhaust and industrial emissions, gasoline 
vapors, chemical solvents and natural sources can emit or contain 
NOX and/or VOC. Urban areas tend to have high concentrations 
of ground-level ozone, but areas without

[[Page 54260]]

significant industrial activity and with relatively low vehicular 
traffic are also subject to increased ozone levels because wind carries 
ozone and its precursors hundreds of miles from their sources. In 1979, 
under section 109 of the Clean Air Act (CAA or the Act), the EPA 
established the primary and secondary National Ambient Air Quality 
Standards (NAAQS) for ozone at 0.12 parts per million (ppm) averaged 
over a 1-hour period (44 FR 8202, February 8, 1979). In 1997, we 
revised the primary and secondary NAAQS for ozone to set the acceptable 
level of ozone in the ambient air at 0.08 ppm, averaged over an 8-hour 
period (62 FR 38856, July 18, 1997). In 2008, we further revised the 
primary and secondary ozone NAAQS to 0.075 ppm, averaged over an 8-hour 
period (73 FR 16436, March 27, 2008). In 2015, we again revised the 
primary and secondary ozone NAAQS to 0.070 ppm, averaged over an 8-hour 
period (73 FR 16436, March 27, 2008). For additional information on 
ozone, visit https://www.epa.gov/ozone-pollution.
    Stage II vapor recovery is an air pollution control technology for 
automobiles and other on-road mobile sources. When an automobile or 
other vehicle is brought into a gas station to be refueled, the empty 
portion of the gas tank on the vehicle contains gasoline vapors, which 
are VOCs. When liquid gasoline is pumped into the partially empty gas 
tank in the vehicle the vapors are displaced out of the tank as the 
tank fills with liquid gasoline. Where air pollution control technology 
is not used, these vapors are emitted into the air. In the atmosphere, 
these VOCs can, in the presence of sunlight, react with NOX 
and VOCs from other sources to form ozone. The Stage II system consists 
of special nozzles and coaxial hoses at each gas pump that capture 
vapor from the vehicle's fuel tank and route them to underground or 
above ground storage tanks during the refueling process. Stage II vapor 
recovery systems are specifically installed at gasoline dispensing 
facilities and capture the refueling fuel vapors at the gasoline pump 
nozzle. The system directs the displaced vapors back to the underground 
storage tank at the gasoline dispensing facility to prevent the vapors 
from escaping to the atmosphere.
    Onboard refueling vapor recovery (ORVR) is another emission control 
system that can capture fuel vapors from vehicle gas tanks during 
refueling. ORVR systems are carbon canisters installed directly on 
automobiles to capture the fuel vapors displaced from the gasoline tank 
before they are released to the atmosphere. The fuel vapors captured in 
the carbon canisters are then combusted in the engine when the 
automobile is started and operated after refueling.
    Stage II vapor recovery systems and vehicle ORVR systems were 
initially both required by the 1990 Amendments to the CAA, with Stage 
II requirements applying to certain nonattainment areas. Under CAA 
section 182(b)(3) ozone nonattainment areas classified as moderate and 
above were required to adopt Stage II requirements. CAA section 
202(a)(6), requires an onboard system of capturing vehicle refueling 
emissions, commonly referred to as an ORVR system. In 1994, the EPA 
promulgated ORVR standards (59 FR 16262, April 6, 1994). Section 
202(a)(6) of the CAA required that the EPA's ORVR standards apply to 
light-duty vehicles manufactured beginning in the fourth model year 
after the model year in which the standards were promulgated, and that 
ORVR systems provide a minimum evaporative emission capture efficiency 
of 95 percent.\1\ ORVR equipment has been phased in for new light duty 
vehicles (passenger vehicles) beginning with model year 1998 and 
starting with model year 2001 for light-duty trucks and most heavy-duty 
gasoline powered vehicles. Since 2006, ORVR has been a required 
emissions control on nearly all new gasoline-powered highway vehicles 
having less than 14,000 pounds gross vehicle weight rating. CAA section 
202(a)(6) provides discretionary authority to the Administrator, by 
rule, to revise or waive the application of the Stage II requirements 
for areas classified as Serious, Severe, or Extreme for ozone, as 
appropriate, after such time as the Administrator determines that 
onboard emissions control systems are in widespread use throughout the 
motor vehicle fleet.
---------------------------------------------------------------------------

    \1\ Unlike Stage II, which is a requirement only in certain 
ozone nonattainment areas, ORVR requirements apply to vehicles 
everywhere.
---------------------------------------------------------------------------

    On May 16, 2012, the EPA issued a national rulemaking making the 
finding that ORVR systems are in ``widespread use'' and determined that 
emission reductions from ORVR alone are essentially equal to and will 
soon surpass the emission reductions achieved by Stage II alone (see 77 
FR 28772 at 28772). In the May 16, 2012 action, we noted that each 
year, non-ORVR-equipped vehicles continue to be replaced with ORVR-
equipped vehicles and Stage II and ORVR systems capture the same VOC 
emissions and thus, are redundant. Id. The EPA also determined that 
ORVR systems are in widespread use and waived the Stage II requirement 
for gasoline dispensing facilities if doing so did not interfere with 
attaining or maintaining the ozone standards. Id. at 28776-28779. The 
EPA also noted that any state currently implementing Stage II vapor 
recovery programs may submit SIP revisions that would allow for the 
phase-out of Stage II vapor recovery systems including a CAA section 
110(l) analysis showing that its removal did not interfere with 
attaining or maintaining the ozone standards. Id.
    The Portland/Vancouver area was designated an interstate ozone 
nonattainment area in 1978. On November 15, 1990, the CAA Amendments of 
1990 were enacted. (Pub. L. 101-549, 104 Stat. 2399, codified at 42 
U.S.C. 7401-7671q). Under section 181(a)(1) of the 1990 CAA, the area 
was further classified as a ``Marginal'' ozone nonattainment area. This 
interstate nonattainment area consisted of the southern portion of 
Clark County, Washington, and portions of Multnomah, Clackamas, and 
Washington Counties in Oregon. In 1997, the EPA redesignated the 
Portland/Vancouver area to attainment (62 FR 27204, May 19, 1997). The 
Portland/Vancouver area was designated as ``unclassifiable/attainment'' 
due to the data showing the area was below the new NAAQS for subsequent 
updates, including the 1997 8-hour ozone NAAQS (69 FR 23857, April 30, 
2004), the 2008 8-hour ozone NAAQS (77 FR 30088, May 21, 2012), and the 
2015 8-hour ozone NAAQS (82 FR 54232, November 16, 2017).
    The Portland/Vancouver area was not subject to Stage II 
requirements under the 1990 Clean Air Act Amendments as it was 
classified as Marginal nonattainment for the 1-hour NAAQS for ozone, 
rather than Moderate or above. However, SWCAA in coordination with the 
Washington Department of Ecology submitted SWAPCA 491 ``Emission 
Standards and Controls for Sources Emitting Gasoline Vapors'' (state 
effective November 21, 1996, subsequently renamed to SWCAA 491) which 
contained Stage II requirements as a SIP-strengthening measure approved 
concurrently with redesignation of the Portland/Vancouver area to 
attainment (see proposed rulemaking, 62 FR 10501, March 7, 1997, at 
page 10507). On August 11, 2015 (80 FR 48033), the EPA approved SWCAA's 
maintenance plan update for the Vancouver portion of the Portland/
Vancouver area that specifically anticipated and modeled widespread use 
of ORVR and the full decommissioning of Stage II in the modeling 
demonstration of continued attainment through 2015. The SWCAA 
maintenance plan update and the

[[Page 54261]]

modeling demonstration are included in the docket for this action.

II. SWCAA's SIP Revision

    On June 22, 2023, SWCAA, in coordination with the Washington 
Department of Ecology as the Governor's designee for revisions to the 
SIP, submitted the current version of SWCAA 491 ``Emission Standards 
and Controls for Sources Emitting Gasoline Vapors'' (state effective 
February 7, 2020) for EPA approval. Since the EPA's last approval of 
SWCAA 491, SWCAA revised the regulations four times. Effective June 24, 
2000, SWCAA updated the regulations to revise applicability of the 
Stage II vapor recovery program, which is now replaced by the 
applicability provisions of the current SWCAA 491. Other changes to 
SWCAA 491, effective June 24, 2000, are generally SIP-strengthening in 
nature including the addition of gasoline marine vessel loading and 
unloading vapor control requirements, which are now contained in the 
current version of SWCAA 491. The exact revisions in 2000 are in 
redline/strikeout format included in the docket for this action under 
WSR 00-11-149. Effective March 18, 2001 (WSR 01-05-067), SWCAA made 
minor changes to SWCAA 491 to reflect the name change from ``Southwest 
Pollution Control Authority'' to ``Southwest Clean Air Agency.'' 
Effective June 18, 2017 (WSR 17-11-080), SWCAA consolidated all agency 
fees into a single location and updated the cross reference in SWCAA 
491-030 accordingly. We note that the 2000, 2001, and 2017 revisions to 
SWCAA 491 were not previously submitted as updates to the SIP. However, 
to the extent these revisions are retained in the current version of 
SWCAA 491 submitted for approval, we are proposing to determine that 
these relatively minor changes since our last update to the SIP in 1997 
are approvable.
    The most substantive changes to SWCAA 491 since the EPA's last 
approval are detailed in WSR 20-03-031, state effective February 7, 
2020. Among other changes, this revision to SWCAA 491 included the 
following: added a requirement to install enhanced conventional (ECO) 
nozzles; added a requirement that low permeation hoses be installed on 
higher volume gasoline dispensing facilities without balance type Stage 
II vapor recovery equipment by no later than January 1, 2023; added a 
requirement for annual testing of Stage I vapor recovery systems; \2\ 
added a requirement that new or upgraded gasoline storage tanks be 
equipped with Stage I enhanced vapor recovery equipment; removed a 
requirement that gasoline dispensing facilities install Stage II vapor 
recovery equipment; allowed removal from service of Stage II vapor 
recovery equipment compatible with ORVR on or after January 1, 2023; 
allowed removal from service of Stage II vapor recovery equipment 
incompatible with ORVR on or after January 3, 2020; required removal 
from service of Stage II vapor recovery equipment incompatible with 
ORVR no later than January 1, 2023; and revised the applicability 
threshold for low flow nozzles to align SWCAA rules with Federal rules. 
In the SIP submittal, SWCAA provided a demonstration that VOC emission 
reductions from enhanced conventional nozzles and low permeation hoses 
will outweigh the annual emissions impact of removing Stage II 
requirements. Therefore, SWCAA requested removal of Stage II vapor 
recovery system requirements in the SIP for SWCAA's jurisdiction.
---------------------------------------------------------------------------

    \2\ Stage I vapor recovery is a system in which gasoline vapors 
are forced from the storage tank into a vapor-tight gasoline tank 
truck or vapor collection and control system through direct 
displacement by the gasoline loaded into the storage tank.
---------------------------------------------------------------------------

III. The EPA's Evaluation of the Revision

    The EPA's primary consideration for determining the approvability 
of SWCAA's revisions to remove Stage II vapor control requirements and 
provide for decommissioning of Stage II equipment within SWCAA's 
jurisdiction is whether these revisions comply with section 110(l) of 
the Act. Section 110(l) requires that a revision to the SIP not 
interfere with any applicable requirement concerning attainment and 
reasonable further progress (RFP), or any other applicable requirement 
of the Act. The EPA can approve a SIP revision that removes or modifies 
control measures in the SIP once the state or local agency makes a 
``noninterference'' demonstration that such removal or modification 
will not interfere with attainment of the NAAQS, RFP, or any other CAA 
requirement.
    The EPA reviewed SWCAA's submittal with the revised SWCAA 491 
regulatory text as well as the accompanying analysis of emissions 
impacts. We propose to determine that SWCAA's June 22, 2023, SIP 
revision addresses the EPA's Widespread Use for Onboard Refueling Vapor 
Recovery and Stage II Waiver (77 FR 28772) and is consistent with the 
EPA's ``Guidance on Removing Stage II Gasoline Vapor Control Programs 
from State Implementation Plans and Assessing Comparable Measures'' 
(EPA-457/B-12-001, August 7, 2012).\3\ In accordance with the EPA 2012 
Guidance on Removing Stage II, SWCAA submitted a demonstration that the 
Stage II decommissioning will not interfere with attainment or 
maintenance of the ozone NAAQS. This demonstration was based on an 
analysis of precursor VOC emissions from removal of Stage II controls 
at GDFs, as well as emission reduction benefits from other changes to 
the regulations such as requirements for enhanced conventional nozzles 
and low permeation hoses. SWCAA estimated emissions impacts using the 
guidance methodologies from the EPA 2012 Guidance showing an overall 
benefit to air quality and a reduction of VOC emissions upon full 
implementation of the rule requirements in 2023. SWCAA estimated the 
impact on emissions from decommissioning Stage II in its jurisdiction 
by using EPA approved equations from the same 2012 guidance, to assess 
compliance with CAA 110(l). A detailed spreadsheet with the equation 
calculations and supporting inputs is included in the docket for this 
action.
---------------------------------------------------------------------------

    \3\ The guidance document is available at: https://www3.epa.gov/ttn/naaqs/aqmguide/collection/cp2/20120807_page_stage2_removal_guidance.pdf.
---------------------------------------------------------------------------

    The demonstration indicates that the emissions benefit of retaining 
Stage II requirements is rapidly diminishing with vehicle fleet 
turnover and ORVR penetration. As discussed in the EPA 2012 Guidance, 
the EPA has developed equations to assist states in evaluating the 
emissions consequences of phasing out existing Stage II programs. These 
equations may be used to calculate an ``increment,'' which identifies 
the area-wide emission control gained from Stage II installations as 
ORVR technology phases in. For example, using the equations in the EPA 
2012 Guidance, SWCAA calculated the increment declining from 4.0% in 
2020 to 1.1% in 2023 for Clark County, the most populous county in 
SWCAA's jurisdiction. Projecting these increments to full 
implementation of the rule in 2023, the removal of Stage II vapor 
recovery systems would result in minimal increases in VOC emissions of 
18.31 tons per year (tpy) for SWCAA's entire jurisdiction. 
Additionally, SWCAA calculated the emission reduction benefits of 
enhanced conventional nozzles and low permeation hoses. These emission 
reduction benefits are estimated to be 33.84 tpy, outweighing the 
emissions increase from decommissioning Stage II

[[Page 54262]]

requirements. Overall, the 2020 regulatory changes are projected to 
result in a net reduction of 15.99 tpy VOC with full implementation of 
the rule. In addition, the EPA expects that market saturation of ORVR-
equipped vehicles will remain static or increase in the years after 
2023, meaning the air quality benefits of these changes will continue 
into the future.
    Lastly, the removal of Stage II is consistent with the current 
maintenance plan update for the Vancouver portion of the Portland/
Vancouver ozone area (80 FR 48033, August 11, 2015). As previously 
discussed, this maintenance plan update was approved by the EPA in 
2015. The associated modeling, included in the docket for this action, 
anticipated the decommissioning of Stage II in the projection of 
continued ozone attainment for the 1997 8-hour ozone NAAQS.\4\ For the 
2008 and 2015 ozone NAAQS, all counties within SWCAA's jurisdiction are 
designated attainment/unclassifiable. We believe that removal of Stage 
II vapor recovery systems would have a negligible impact on ozone 
levels which are offset by the emission reduction benefits of other 
requirements in the revised SWCAA 491. Thus, we proposed to determine 
that approval of the SIP revision would not interfere with any 
applicable requirement concerning attainment and maintenance of any 
ozone standard and is compliant with CAA section 110(l).
---------------------------------------------------------------------------

    \4\ Consistent with EPA guidance, SWCAA evaluated compliance 
with the 1997 8-hour ozone NAAQS because the former 1-hour ozone 
NAAQS was replaced by the 1997 8-hour standard. See 62 FR 38856 
(July 18, 1997) and 75 FR 24542 (May 5, 2010).
---------------------------------------------------------------------------

IV. Proposed Action

    We are proposing to find that SWCAA's demonstration for removal of 
Stage II equipment meets section 110(l) of the Act. Therefore, we are 
proposing to approve and incorporate by reference SWCAA 491 ``Emission 
Standards and Controls for Sources Emitting Gasoline Vapors'' state 
effective February 7, 2020. This version of the regulation removes from 
the Washington SIP the requirement for Stage II vapor recovery systems 
in SWCAA's jurisdiction and adds additional VOC controls such as the 
installation of enhanced conventional nozzles and low permeation hoses, 
as well as other historic changes since the EPA's last approval as 
discussed in section II of this preamble.

V. Incorporation by Reference

    In this document, the EPA is proposing to include in a final rule, 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference SWCAA 491 discussed in section IV of this preamble. The EPA 
has made, and will continue to make, these documents generally 
available through https://www.regulations.gov and at the EPA Region 10 
Office (please contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section of this preamble for more information).

VI. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Clean Air 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 Clean Air Act. 
Accordingly, this action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 14094 (88 FR 21879, April 11, 2023);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is 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.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not subject to Executive Order 13045 (62 FR 19885, 
April 23, 1997) because it approves a state program;
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001); and
     Is 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 Clean Air Act.
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    Executive Order 12898 (Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations, 59 FR 7629, 
February 16, 1994) directs Federal agencies to identify and address 
``disproportionately high and adverse human health or environmental 
effects'' of their actions on minority populations and low-income 
populations to the greatest extent practicable and permitted by law. 
EPA defines environmental justice (EJ) as ``the fair treatment and 
meaningful involvement of all people regardless of race, color, 
national origin, or income with respect to the development, 
implementation, and enforcement of environmental laws, regulations, and 
policies.'' EPA further defines the term fair treatment to mean that 
``no group of people should bear a disproportionate burden of 
environmental harms and risks, including those resulting from the 
negative environmental consequences of industrial, governmental, and 
commercial operations or programs and policies.''
    The Southwest Clean Air Agency did not evaluate environmental 
justice considerations as part of its SIP submittal; the CAA and 
applicable implementing regulations neither prohibit nor require such 
an evaluation. EPA did not perform an EJ analysis and did not consider 
EJ in this action. Due to the nature of the action being taken here, 
this action is expected to have a neutral to positive impact on the air 
quality of the affected area. Consideration of EJ is not required as 
part of this action, and there is no information in the record 
inconsistent with the stated goal of E.O. 12898 of achieving 
environmental justice for people of color, low-income populations, and 
Indigenous peoples.

List of Subjects in 40 CFR Part 52

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

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


[[Page 54263]]


    Dated: August 1, 2023.
Casey Sixkiller,
Regional Administrator, Region 10.
[FR Doc. 2023-16791 Filed 8-9-23; 8:45 am]
BILLING CODE 6560-50-P


