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									                                                                                          Thursday,
                                                                                          March 29, 2001




                                                                                          Part II

                                                                                          Environmental
                                                                                          Protection Agency
                                                                                          40 CFR Parts 80 and 86
                                                                                          Control of Emissions of Hazardous Air
                                                                                          Pollutants From Mobile Sources; Final
                                                                                          Rule




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     17230                Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

     ENVIRONMENTAL PROTECTION                                     on-highway diesel fuel sulfur control               analysis plan, we will conduct a future
     AGENCY                                                       requirements. Between 1990 and 2020,                rulemaking, to be completed no later
                                                                  we project these programs will reduce               than July 1, 2004.
     40 CFR Parts 80, and 86                                      on-highway emissions of benzene,                    DATES: This rule is effective May 29,
     [AMS–FRL–6924–1]                                             formaldehyde, 1,3-butadiene, and                    2001. The incorporation by reference of
                                                                  acetaldehyde by 67 to 76 percent, and               certain publications listed in this rule is
     RIN 2060–AI55                                                will reduce on-highway diesel PM                    approved by the Director of the Federal
                                                                  emissions by 90 percent.                            Register as of May 29, 2001.
     Control of Emissions of Hazardous Air                          This action also finalizes new
     Pollutants From Mobile Sources                                                                                   ADDRESSES: Comments: All comments
                                                                  gasoline toxic emission baseline                    and materials relevant to today’s action
     AGENCY: Environmental Protection                             requirements which require refiners to              have been placed in Public Docket No.
     Agency (EPA).                                                maintain current levels of over-                    A–2000–12 at the following address:
     ACTION: Final rule.                                          compliance with toxic emissions                     U.S. Environmental Protection Agency
                                                                  performance standards that apply to                 (EPA), Air Docket (6102), Room M–
     SUMMARY: Today’s action addresses                            federal reformulated gasoline (RFG) and             1500, 401 M Street, SW, Washington,
     emissions of hazardous air pollutants                        anti-dumping standards that apply to                DC 20460. EPA’s Air Docket makes
     (HAPs) from motor vehicles and their                         conventional gasoline (CG). Because the             materials related to this rulemaking
     fuels. Hazardous air pollutants refer to                     new baseline requirements do not                    available for review at the above address
     a range of compounds that are known or                       require refiners to install new                     (on the ground floor in Waterside Mall)
     suspected to have serious health or                          equipment or use technologies beyond                from 8:00 a.m. to 5:30 p.m., Monday
     environmental impacts. Motor vehicles                        what they were using in the baseline                through Friday, except on government
     are significant contributors to national                     period (1998–2000), we project that this            holidays. You can reach the Air Docket
     emissions of several hazardous air                           program will impose only negligible                 by telephone at (202) 260–7548, and by
     pollutants, notably benzene,                                 costs. The new baseline requirements                facsimile (202) 260–4400. We may
     formaldehyde, 1,3-butadiene,                                 are designed to prevent backsliding and             charge a reasonable fee for copying
     acetaldehyde, and diesel particulate                         to ensure that existing overcompliance              docket materials, as provided in 40 CFR
     matter and diesel exhaust organic gases.                     with current standards continues. We                part 2.
        In today’s action, we list 21                             are not setting additional vehicle-based
     compounds emitted from motor vehicles                        air toxics controls at this time because            FOR FURTHER INFORMATION CONTACT:
     that are known or suspected to cause                         the technology-forcing Tier 2 light-duty            Margaret Borushko, U.S. EPA, National
     cancer or other serious health effects.                      vehicle standards and those standards               Vehicle and Fuels Emission Laboratory,
     Our Mobile Source Air Toxics (MSAT)                          being developed in response to our                  2000 Traverwood, Ann Arbor, MI
     list includes various volatile organic                       recent proposal for heavy-duty engine               48105; Telephone (734) 214–4334; FAX:
     compounds (VOCs) and metals, as well                         and vehicle standards represent the                 (734) 214–4816; E-mail:
     as diesel particulate matter and diesel                      greatest degree of toxics control                   borushko.margaret@epa.gov
     exhaust organic gases (collectively DPM                      achievable at this time considering                 SUPPLEMENTARY INFORMATION:
     + DEOG). The selection methodology we                        existing standards, the availability and
     used to develop this MSAT list, which                        cost of the technology, and noise,                  Regulated Entities
     may be used to add compounds to or                           energy, and safety factors, and lead                   This action will affect entities that
     remove compounds from the list in the                        time.                                               produce new motor vehicles, alter
     future as new information becomes                              Finally, because of our continuing                individual imported motor vehicles to
     available, is also described. In today’s                     concern about the potential health                  address U.S. regulation, or convert
     action we also examine the mobile                            impacts of public exposure to air toxics,           motor vehicles to use alternative fuels.
     source contribution to national                              today’s action also describes a Technical           It will also affect entities that produce,
     inventories of these emissions and the                       Analysis Plan through which we will                 distribute, or sell gasoline or diesel
     impacts of existing and newly                                continue to improve our understanding               motor fuel.
     promulgated mobile source control                            of the risk posed by air toxics to public              The table below gives some examples
     programs, including our reformulated                         health and welfare. It will also allow us           of entities that may have to follow the
     gasoline (RFG) program, our national                         to evaluate the need for and                        regulations. Because these are only
     low emission vehicle (NLEV) standards,                       appropriateness of additional mobile                examples, you should carefully examine
     our Tier 2 motor vehicle emissions                           source air toxics controls for on-                  the regulations in 40 CFR parts 80 and
     standards and gasoline sulfur control                        highway and nonroad sources, and their              86. If you have questions, call the
     requirements, and our proposed heavy-                        fuels. Based on the information                     person listed in the FOR FURTHER
     duty engine and vehicle standards and                        developed through this technical                    INFORMATION CONTACT section above.

                                 NAICS              SIC
           Category                                                                             Examples of potentially regulated entities
                                codes (1)         codes (2)

     Industry ...............       336111                 3711    Motor Vehicle Manufacturers.
                                    336112
                                    336120
     Industry ...............       336112                 3711    Engine and Truck Manufacturers.
                                    336120
     Industry ...............       336311                 3592    Alternative Fuel Vehicle Converters.
                                    336312                 3714
                                    422720                 5172
                                    454312                 5984
                                    811198                 7549
                                    541514                 8742
                                    541690                 8931



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                          Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                           17231

                                 NAICS              SIC
           Category                                                                             Examples of potentially regulated entities
                                codes (1)         codes (2)

     Industry ...............       811112                 7533    Commercial Importers of Vehicles and Vehicle Components.
                                    811198                 7549
                                    541514                 8742
     Industry ...............       324110                 2911    Petroleum Refiners.
     Industry ...............       422710                 5171    Gasoline or Diesel Marketers and Distributors.
                                    422720                 5172
     Industry ...............       484220                 4212    Gasoline or Diesel Carriers.
                                    484230                 4213
       (1) North American Industry Classification System (NAICS).
       (2) Standard Industrial Classification (SIC) system code.


     Access to Rulemaking Documents                                  C. List of Mobile Source Air Toxics                11. Territories
     through the Internet                                         III. How Are Motor Vehicle Emission Control           12. Gasoline excluded
                                                                        Programs Reducing MSAT Emissions?               D. Why Isn’t EPA Adopting Other Fuel
        Today’s action is available                                  A. Baseline Inventories                               Controls to Control MSATs?
     electronically on the day of publication                        B. Impacts of Motor Vehicle Emission             VI. Nonroad Sources of MSAT Emissions
     from the Office of the Federal Register                            Controls on Emissions Inventories               A. Nonroad MSAT Baseline Inventories
     Internet Web site listed below.                                 1. Description of Emission Control                 B. Impacts of Current Nonroad Mobile
     Electronic copies of this preamble and                             Programs                                           Source Emission Control Strategies
     regulatory language as well as the                              2. Emission Reductions From Control                1. Description of the Emission Control
                                                                        Programs                                           Program
     Response to Comments, the Technical                          IV. Evaluation of Additional Motor Vehicle-           2. Emission Reductions From Current
     Support Document (TSD) and other                                   based Controls                                     Programs
     documents associated with today’s                               A. MSATs and Motor Vehicle-based                   C. Gaps in Nonroad Mobile Source Data
     action will be available from the EPA                              Controls                                      VII. Technical Analysis Plan to Address Data
     Office of Transportation and Air Quality                        B. Vehicle-based Standards to Reduce                  Gaps and Commitment for Further
     Web site listed below shortly after the                            MSATs From Light-Duty Vehicles                     Rulemaking
     rule is signed by the Administrator. This                       C. Vehicle-based Standards to Reduce               A. Technical Analysis Plan to Address
                                                                        MSATs From Heavy-Duty Engines                      Data Gaps
     service is free of charge, except any cost
                                                                     D. Conclusions Regarding Vehicle-based             B. Commitment for Further Rulemaking
     that you already incur for Internet                          Standards                                           VIII. Public Participation
     connectivity.                                                V. Evaluation of Additional Fuel-Based              IX. Administrative Requirements
        EPA Federal Register Web Site:                                  Controls                                        A. Administrative Designation and
     http://www.epa.gov/docs/fedrgstr/epa-                           A. Form of the Rule                                   Regulatory Analysis
     air/                                                            1. What Is the Form of the Rule EPA Is             B. Regulatory Flexibility Analysis
     (Either select a desired date or use the                           Promulgating Today?                             C. Paperwork Reduction Act
                                                                     2. Why Did EPA Change From the                     D. Intergovernmental Relations
     Search feature.)                                                   Proposed Benzene Fuel Content Form of           1. Unfunded Mandates Reform Act
        Office of Transportation and Air                                the Rule to the TPR?                            2. Executive Order 13132: Federalism
     Quality (OTAQ) Air Toxics Web Site:                             3. What Are the Benefits of the TPR?               3. Executive Order 13084: Consultation
     http://www.epa.gov/otaq/toxics.htm                              4. What Are the Costs of the TPR?                     and Coordination With Indian Tribal
        Please note that due to differences                          B. Issues and Areas of Comment on Non-                Governments
     between the software used to develop                               implementation Related Aspects of the           E. National Technology Transfer and
     the document and the software into                                 Program                                            Advancement Act
     which the document may be                                       1. What Is the Relationship Between the            F. Executive Order 13045: Children’s
                                                                        RFG and Anti-dumping Requirements                  Health Protection
     downloaded, changes in format, page
                                                                        and the Toxics Anti-backsliding                 G. Congressional Review Act
     length, etc., may occur.                                           Requirements?                                 X. Statutory Provisions and Legal Authority
     Outline of this Preamble                                        2. How Are Incremental Production
                                                                        Volumes of RFG Affected by This Rule?         I. Introduction
     I. Introduction                                                 3. Does This Rule Contain Any Small
        A. Background                                                                                                 A. Background
                                                                        Refiner Provisions?
        B. Basic Components of Today’s Program                       4. Is This Rule Expected to Constraint the          Air toxics, which are also known as
        1. Identification of Mobile Source Air                          Potential for Expanded Use of Ethanol in      ‘‘hazardous air pollutants’’ or HAPs, are
           Toxics                                                       Conventional Gasoline?                        those pollutants known or suspected to
        2. Assessment of Emission Benefits From                      5. Is Diesel Fuel Control a Part of Today’s      cause cancer or other serious health or
           Current Standards                                            Regulation?
        3. Consideration of Additional On-                                                                            environmental effects. They include
                                                                     C. What Are the Components of the Anti-
           Highway Controls                                             backsliding Toxics Performance
                                                                                                                      pollutants like benzene,
        4. Nonroad Air Toxics                                           Program?                                      perchloroethylene, methylene chloride,
        5. Technical Analysis Plan and                               1. Start Date                                    heavy metals like mercury and lead,
           Commitment for Further Rulemaking                         2. Separate Compliance Determination for         polychlorinated biphenyls (PCBs), and
        C. EPA’s Statutory Authority for Today’s                        RFG and CG                                    dioxins. While the harmful effects of air
           Action                                                    3. Baseline Development and Submittal            toxics are of particular concern in areas
     II. What Are the Mobile Source Air Toxics?                      4. Baseline Adjustment                           closest to where they are emitted, they
        A. Introduction                                              5. Compliance Margin                             can also be transported and affect the
        B. The Methodology Used to Identify Our                      6. Foreign Refiner Provisions
           List of Mobile Source Air Toxics                          7. Default Baseline and Applicability
                                                                                                                      health and welfare of populations in
        1. Identifying Pollutants Emitted From                       8. Compliance Period and Deficit and             other geographic areas. Some can persist
           Mobile Sources                                               Credit Carryforward                           for considerable time in the
        2. Using IRIS to Identify Pollutants With                    9. Hardship Provisions                           environment and/or bioaccumulate in
           Potential Serious Adverse Health Effects                  10. California Gasoline                          the food chain.


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     17232                  Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

       To address concerns about the                                    and standards for nonroad vehicles and                 inventories of these pollutants. In
     potentially serious impacts of hazardous                           equipment, such as locomotives,                        today’s action, pursuant to Section
     air pollutants on public health and the                            recreational marine engines, and                       202(l)(2) of the Act, the Agency has
     environment, the Clean Air Act (the                                aircraft. We have also proposed heavy-                 identified those compounds emitted
     Act), as amended in 1990, includes a                               duty engine and vehicle standards and                  from mobile sources that should be
     number of provisions that have led EPA                             on-highway diesel fuel sulfur control                  classified as mobile source air toxics,
     to characterize, prioritize, and control                           requirements that would reduce toxics                  evaluated whether there are additional
     these emissions as appropriate. Since                              emissions from heavy-duty trucks.1                     controls that can be established at this
     1990, the Agency has worked to comply                              Finally, certain other mobile source                   time, set new toxic emission
     with the Act through a combination of                              control programs have been specifically                performance standards, identified
     regulatory approaches, partnerships,                               aimed at reducing toxics emissions from                existing data gaps in our understanding
     ongoing research and assessments, risk                             mobile sources (e.g., our lead phase-out               of the risk posed to the public from
     initiatives, and education and outreach.                           programs).                                             mobile source air toxics, and committed
     We have put in place many programs to                                 While these mobile source standards                 to reevaluate the need for additional
     reduce air toxic emissions that have                               were put in place primarily to reduce                  controls in 2003–2004.
     resulted, and will continue to result, in                          ambient concentrations of criteria                        Today’s action provides the mobile
     reductions in ambient concentrations of                            pollutants through oxides of nitrogen                  source component of EPA’s National Air
     air toxics. On the stationary source side,                         (NOX), volatile organic compound                       Toxics Program: The Integrated Urban
     we have developed 46 stationary source                             (VOC), carbon monoxide (CO) and                        Strategy (IUATS), published July 19,
     standards for 82 different types of                                particulate matter (PM) controls, and                  1999 (64 FR 38706). The overarching
     sources and have more under                                        thereby to help states and localities                  goal of the IUATS is to reduce cancer
     development. These standards are                                   come into attainment with the National                 and noncancer risks associated with all
     required under Sections 112 and 129 of                             Ambient Air Quality Standards                          sources of air toxics in urban areas. In
     the Act and provide for future                                     (NAAQS) for ozone, PM, and CO, they                    urban areas, toxic air pollutants raise
     evaluation of the need for additional                              have reduced and will continue to                      special concerns because sources of
     stationary source regulations based on                             reduce on-highway emissions of air                     emissions and people are concentrated
     the remaining risk from air toxics after                           toxics significantly.2 By 2020, we                     in the same geographic areas, leading to
     these standards are in effect. These                               project these programs will reduce the                 large numbers of people being exposed
     actions have resulted, or are projected to                         levels of on-highway emissions of                      to the emissions of many HAPs from
     result in, substantial reductions in HAP                           benzene by 73 percent, formaldehyde by                 many sources. The IUATS identified 33
     emissions.                                                         76 percent, 1,3-butadiene by 72 percent,               ‘‘urban HAPs’’ which pose the greatest
       On the mobile source side, many of                               and acetaldehyde by 67 percent from                    threat to human health in the largest
     the emission control programs put in                               1990 levels. In addition, by 2020, on-                 number of urban areas. These 33
     place pursuant to the 1990 Clean Air                               highway diesel PM emission reductions                  compounds are a subset of the 188
     Act Amendments reduce air toxics                                   of 94 percent from 1990 levels are                     compounds listed in Section 112(b) of
     emissions from a wide variety of mobile                            projected in a recent NPRM for heavy-                  the Clean Air Act and are listed in Table
     sources. These include our reformulated                            duty engines.3                                         I–1. Thirteen of these compounds are
     gasoline (RFG) program, which has                                     Nevertheless, because of the                        also included on our Mobile Source Air
     substantially reduced mobile source air                            potentially serious effects exposure to                Toxics list (see Section II, below). The
     toxics, particularly in urban areas which                          air toxics may have on human health, it                IUATS is described in greater detail in
     often have high levels of ambient air                              is reasonable to assess whether it is                  Chapter 1 of the Technical Support
     toxics, our national low emission                                  appropriate to establish additional                    Document for this rule. Additional
     vehicle (NLEV) program, our Tier 2                                 mobile source controls that are                        information can also be obtained from
     motor vehicle emissions standards and                              specifically designed to reduce further                the EPA’s Unified Air Toxics website,
     gasoline sulfur control requirements,                              or minimize increases in national                      http://www.epa.gov/ttn/uatw.

                                TABLE I–1.—LIST OF URBAN HAPS FOR THE INTEGRATED URBAN AIR TOXICS STRATEGY
              Acetaldehyde a                        Coke oven emissions                                                  Mercury compounds a

     Acrolein a .............................   1,2-dibromomethane ..........           Methylene chloride.
     Acrylonitrile ..........................   1,2-dichloropropane (pro-               Nickel compounds. a
                                                  pylene dichloride).
     Arsenic compounds a ...........            1,3-dichloropropene ...........         Polychlorinated biphenyls.
     Benzene a ............................     Ethyl dichloride (1,2- ..........       Polycyclic organic matter. a
     Beryllium compounds ..........             Ethylene oxide ....................     Quinoline.
     1,3-Butadiene a ....................       Formaldehyde a ...................      2,3,7,8-tetrachlorodibenzo-p-dioxine (and cogeners and TCDF cogeners). a
     Cadmium compounds .........                Hexachlorobenzene ...........           1,1,2,2-tetrachloroethane.
     Carbon tetrachloride ...........           Hydrazine ...........................   Tetrachloroethylene.
     Chloroform ..........................      Lead compounds a ..............         Trichloroethylene.
     Chromium compounds a ......                Manganese compounds a ...               Vinyl chloride.
        a Included    on our Mobile Source Air Toxics list.

       1 See final rules: NLEV, 62 FR 31191 (June 6,                    29, 1999); aircraft, 62 FR 25355 (May 8, 1997); RFG,   thus are reduced when VOCs are reduced—are
     1997); Tier 2, 65 FR 6698 (February 10, 2000); land-               59 FR 7812 (February 16, 1994). See proposed rule      several gaseous toxics (e.g., benzene, formaldehyde,
     based diesel nonroad, 63 FR 56968 (October 23,                     HD2007, 65 FR 35430 (June 2, 2000).                    1,3-butadiene, and acetaldehyde).
     1998); locomotive, 63 FR 18978 (April 16, 1998);                     2 For example, included among the numerous             3 65 FR 35430, June 2, 2000.
     recreational marine, 61 FR 52088 (October 4, 1996);
     commercial diesel marine, 64 FR 73300 (December                    chemicals that make up total VOC emissions—that




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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                         17233

       Today’s rule is our first attempt at                  1. Identification of Mobile Source Air                energy, and safety factors, and lead
     addressing mobile source air toxics in a                Toxics                                                time.’’
     systematic and integrated manner.                                                                                Based on our analysis and the
     Additional analysis, however, will be                      There are hundreds of different                    comments we received from various
     necessary to evaluate the sufficiency of                compounds and elements that are                       stakeholders, we are finalizing gasoline
     those controls and to determine whether                 known to be emitted from passenger                    toxic emission performance standards
     there is a need for additional controls.                cars, on-highway trucks, and various                  that will help maintain current levels of
     Today’s rule also contains a Technical                  types of nonroad equipment. Section II                overcompliance with existing gasoline
     Analysis Plan (TAP) that identifies key                 of today’s action identifies a list of 21             toxics emission standards. These
                                                             toxic compounds emitted from motor                    requirements are refiner-specific, based
     information gaps about the risk posed
                                                             vehicles and describes the methodology                on each refinery’s average 1998–2000
     by mobile source air toxics and the
                                                             we used to generate this list. This                   gasoline toxic emission performance
     feasibility of additional controls. In
                                                             methodology may be used to add                        levels for RFG and conventional
     order to address these data gaps, the
                                                             compounds to, or remove compounds                     gasoline. Consistent with our proposal,
     Agency will continue to compile,
                                                             from, the MSAT list in the future as new              we are not setting additional air toxics
     analyze, and conduct additional                         information becomes available.                        emissions standards for motor vehicles
     research in coordination with other
                                                                                                                   in today’s action. However, it is
     toxics research activities that are                     2. Assessment of Emission Benefits
                                                                                                                   important to note that we have proposed
     ongoing in the Agency, including the                    From Current Standards
                                                                                                                   stringent new diesel particulate matter
     National-Scale Air Toxics Assessment                                                                          standards for heavy-duty vehicles (HDV)
     (NATA) headed by EPA’s Office of Air                      Today’s action also describes how our
                                                             current mobile source emission control                that would reduce HDV PM emissions
     Quality Planning and Standards                                                                                by 90%. We expect to issue a final rule
                                                             programs are expected to reduce MSAT
     (OAQPS) and the Air Toxics Research                                                                           for this category soon. We believe that
                                                             emissions. By 2020, we expect existing
     Strategy (ATRS) headed by EPA’s Office                                                                        it is not technologically feasible at this
                                                             programs like the reformulated gasoline
     of Research and Development (ORD).                                                                            time to set additional motor vehicle
                                                             (RFG) program, national low emission
       The results of NATA will be used to                   vehicle (NLEV) program, Tier 2 motor                  controls under Section 202(l)(2) beyond
     identify areas of the country and                       vehicle emissions standards and                       the controls already adopted or
     pollutants where additional                             gasoline sulfur control requirements                  proposed by the Agency. This decision
     investigation is needed. NATA will                      (Tier 2), and our proposed heavy-duty                 is based on consideration of the
     begin with an analysis of the risks                     engine and vehicle standards and on-                  technical feasibility, cost, and other
     associated with the 33 ‘‘urban HAPs’’                   highway diesel fuel sulfur control                    factors relevant to a proposal of further
     identified in Table I–1. In the future,                 requirements (HD2007 rule), to                        controls at this time.
     NATA will evaluate all 188 HAPs                         significantly reduce on-highway                       4. Nonroad Air Toxics
     currently listed under Section 112(b) of                emissions of key air toxics. Section III
                                                                                                                      Section 202(l)(2) of the Act specifies
     the Act as well as diesel PM. NATA is                   contains our on-highway toxics                        that we set standards to control
     described in greater detail in Chapter 1                emissions inventory analysis and                      hazardous air pollutants from motor
     of the Technical Support Document for                   estimates of these expected reductions.               vehicles and motor vehicle fuels which,
     this rule. Additional information can                                                                         by definition, do not include nonroad
                                                             3. Consideration of Additional On-
     also be obtained from the NATA website                  Highway Controls                                      engines or vehicles or their fuels.
     (http://www.epa.gov/ttn/uatw/nata).                                                                           However, nonroad engines are also
       The Air Toxics Research Strategy                        Although we anticipate substantial                  important contributors to national
     (ATRS) is an Agency 10 year plan to                     reductions in emissions of key toxic                  inventories of mobile source air toxics
     guide and prioritize research in air                    pollutants by 2020, the serious potential             emissions. Therefore, we believe it is
     toxics from various sources, including                  health effects associated with many of                also helpful to include a discussion of
     mobile sources. ATRS is also described                  these compounds lead us to evaluate                   nonroad sources in today’s action. In
     in Chapter 1 of the Technical Support                   whether additional controls are                       addition, as noted above, today’s action
     Document.                                               technologically feasible at this time. For            is part of EPA’s Integrated Urban Air
                                                             the purpose of our analysis, we divide                Toxics Strategy. As part of our effort to
       With this background, we now turn to
                                                             potential control measures into two                   establish a comprehensive plan that
     an overview of today’s action.                          broad categories: vehicle-based controls              seeks to reduce urban air toxic
     B. Basic Components of Today’s                          and fuel-based controls. Vehicle-based                emissions, we intend to address both
     Program                                                 controls include programs that reduce                 on-highway and motor vehicles and
                                                             evaporative and exhaust emissions from                evaluate emissions and potential
        Today’s action addresses mobile                      vehicles and engines. Fuel-based                      strategies relating to hazardous air
     source air toxics emissions. In it, we                  controls explore how changing fuel                    pollutants from nonroad engines and
     identify our list of 21 mobile source air               formulation can reduce air toxic                      vehicles.
     toxics (MSATs) and set new gasoline                     emissions. In performing our analysis of
     toxic emission performance baseline                     additional controls in Sections IV and                5. Technical Analysis Plan and
     requirements for RFG and conventional                   V, we followed the requirements                       Commitment for Further Rulemaking
     gasoline. We also describe a Technical                  specified in Section 202(l)(2) of the Act:               We believe our evaluation to date of
     Analysis Plan to continue analysis and                  these motor vehicle or motor fuel                     the need for, and appropriateness of,
     research that will aid us in evaluating                 standards must ‘‘reflect the greatest                 additional mobile source toxics control
     and assessing the need for additional                   degree of emission reduction achievable               measures provides adequate support for
     mobile source air toxics controls. The                  through the application of technology                 today’s action. At this time, EPA is also
     information acquired through our                        which will be available, taking into                  engaged in other toxics-related activities
     technical analysis will form the basis for              consideration the standards established               as part of NATA, the IUATS, ATRS, and
     a future mobile source air toxics                       under [Section 202(a)], the availability              other rulemaking activities. This
     rulemaking.                                             and costs of the technology, and noise,               emerging information will help us to


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     17234             Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

     further evaluate potential additional                   document and will consider the 1999                   has identified this list as a list of mobile
     mobile source air toxics controls in the                comments in developing our future                     source air toxics (MSATs).5 We are
     future.                                                 activities (e.g., in the development of               listing 21 MSATs using the
        Building on these Agency toxics                      version 4 of the Hazardous Air Pollutant              methodology described below.
     activities, and to increase our                         Exposure Model, HAPEM4, described in
     understanding of mobile source air                                                                            B. The Methodology Used to Identify
                                                             Section VII, below).
     toxics, we will implement the Technical                   Section 202(l)(2) instructs us to set               Our List of Mobile Source Air Toxics
     Analysis Plan described in Section VII                  standards to control hazardous air                       EPA developed the list of MSATs by
     below. This Plan will be coordinated                    pollutants from motor vehicles, motor                 first searching for lists of compounds in
     with the other research activities within               vehicle fuels, or both. These standards,              all available databases and recent
     the Agency in several key areas,                        which may be revised from time to time,               studies (i.e., ten years old or less) which
     including development of emission                       are to reflect the greatest degree of                 speciated emissions from motor vehicles
     factors for nonroad sources, analysis of                emission reduction achievable through                 and their fuels. Data for vehicles and
     toxics exposures in microenvironments,                  the application of technology which                   engines more than ten years old are
     and examination of additional fuel- and                 will be available, taking into                        considered to be outdated and thus are
     vehicle-based air toxics controls for both              consideration the motor vehicle                       judged not to be representative of
     motor vehicles and nonroad engines and                  standards established under Section                   current emissions. The lists did not
     equipment. Our TAP will be fully                        202(a) of the Act, the availability and               include emissions from alternative-
     coordinated and integrated with                         cost of the technology, and noise, energy             fueled vehicles, currently in a very
     activities conducted as part of NATA,                   and safety factors, and lead time. The                small number of vehicles, such as
     the IUATS, and the ATRS. This will                      regulations are to apply, at a minimum,               flexible-fueled vehicles. We then
     allow us to take full advantage of what                 to benzene and formaldehyde                           compared the speciated lists of
     is collectively learned and provide a                   emissions, and are to be set under                    compounds in these studies to the list
     solid basis for future action, including a              Section 202(a) or 211(c) of the Act.                  of compounds in EPA’s Integrated Risk
     future rulemaking, to be completed no                   Section 211(c) of the Act authorizes the              Information System (IRIS) database. IRIS
     later than July 1, 2004.                                Agency to control or prohibit the                     is a database of compounds that
                                                             manufacturer, introduction into                       identifies EPA’s consensus scientific
     C. EPA’s Statutory Authority for Today’s                                                                      judgment on the characterization of the
                                                             commerce, offering for sale, or sale, of
     Action
                                                             any fuel or fuel additive if any emission             potential serious adverse health effects
       Today’s action is established pursuant                product of such fuel or fuel additive                 that may result from a lifetime exposure
     to Section 202(l) of the Clean Air Act.                 causes or contributes to air pollution                to a substance (discussed in more detail
     That Section consists of two parts.                     which may reasonably be anticipated to                below).
     Section 202(l)(1) calls on EPA to study                 endanger public health or welfare.                       By comparing the lists of compounds
     the need for and feasibility of                                                                               provided in the emission speciation
     controlling toxic air pollutants                        II. What Are the Mobile Source Air                    databases and studies to the list of
     associated with motor vehicles and                      Toxics?
                                                                                                                   compounds in IRIS, we generated a list
     motor vehicle fuels. That study is to                   A. Introduction                                       of 21 compounds. An evaluation of the
     focus on those categories of emissions                                                                        potential for serious adverse health
                                                                There are hundreds of different
     that pose the greatest risk to human                                                                          effects as reflected in IRIS and in the
                                                             compounds and elements that are
     health or about which significant                                                                             ongoing agency scientific assessments of
                                                             known to be emitted from passenger
     uncertainties remain. The Act specifies                                                                       these compounds indicates that these
                                                             cars, on-highway trucks, and various
     that, at a minimum, the study focus on                                                                        compounds warrant inclusion as
                                                             nonroad equipment. Several of these
     emissions of benzene, formaldehyde,                                                                           MSATs.
                                                             compounds may have adverse effects on
     and 1,3-butadiene.                                                                                               It is important to note that inclusion
       We completed the study required                       human health and welfare.4 In
                                                             recognition of this fact, Congress                    on the list is not itself a determination
     under Section 202(l)(1) in April 1993.                                                                        by EPA that emissions of the compound
     The report, entitled ‘‘Motor Vehicle-                   instructed EPA, in Section 202(l)(2) of
                                                             the Act, to set standards for hazardous               in fact present a risk to public health or
     Related Air Toxics Study,’’ is available                                                                      welfare, or that it is appropriate to adopt
     on our website (http://www.epa.gov/                     air pollutants from motor vehicles and
                                                             their fuels. Except for benzene and                   controls to limit the emissions of such
     otaq/toxics.htm). Specific pollutants or                                                                      a compound from motor vehicles or
     pollutant categories discussed in the                   formaldehyde (specifically mentioned
                                                             in 202(l)(2)), the Act does not specify               their fuels. The purpose of the list is to
     1993 report include benzene,                                                                                  provide a screening tool that identifies
                                                             the compounds that should be
     formaldehyde, 1,3-butadiene,                                                                                  those compounds emitted from motor
                                                             considered in such a control program.
     acetaldehyde, diesel particulate,                                                                             vehicles or their fuels for which further
                                                             Therefore, the first step in developing a
     gasoline particulate, gasoline vapors,                                                                        evaluation of emissions controls is
                                                             mobile source air toxics control program
     and selected metals. The emissions and                                                                        appropriate. In conducting any such
                                                             is to identify the compounds that
     exposure aspects for several of the air                                                                       further evaluation, pursuant to sections
                                                             should be treated as hazardous air
     toxics covered in this report were                                                                            202(a) or 211(c) of the Act, EPA would
                                                             pollutants for purpose of Section
     recently updated in November 1999.                                                                            consider whether emissions of the
                                                             202(l)(2). Since EPA data suggest that
     The 1999 report, entitled ‘‘Analysis of                                                                       compound cause or contribute to air
                                                             nonroad engines and on-highway
     the Impacts of Control Programs on                                                                            pollution which may reasonably be
                                                             vehicles emit the same pollutants, EPA
     Motor Vehicle Toxics Emissions and                                                                            anticipated to endanger public health or
     Exposure in Urban Areas and                               4 Our authority under 202(a) and 211(c) allows us
     Nationwide,’’ is also available on our                  to address air pollution that impacts health or         5 We have chosen to call our list of toxics a

     website, and is described in more detail                welfare. This initial MSAT list focuses on human      mobile sources list to acknowledge that nonroad
     in Section I.E., below. We sought peer                  health. Additional compounds may be added in the      sources may also contribute emissions of these
                                                             future due to their ecological impacts, material      pollutants. For purposes of Section 202(l)(2), each
     review comments on both the 1993 and                    damage, or visibility impairment and it is            of the MSATs is considered a ‘‘hazardous air
     1999 reports. We considered the 1993                    noteworthy that some of the MSATs on the list have    pollutant from motor vehicles and motor vehicle
     comments in developing the 1999                         important ecological impacts.                         fuels.’’



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                              Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                                                     17235

     welfare. Such an evaluation would also                                     matter without separating the individual                              Because of the public health
     consider the appropriate level of any                                      species of hydrocarbons and other                                     conservative methodology in deriving
     controls, based on the criteria                                            elements.                                                             the RfC or RfD, it is possible that
     established in section 202(l)(2).                                            The databases and recent studies                                    exposure above the RfC or RfD may not
     Inclusion of a compound on the MSAT                                        reporting emissions from light-duty                                   pose an appreciable risk; however the
     list does not decide these issues, but                                     gasoline vehicles (LDGV), heavy-duty                                  significance of exceedances must be
     instead identifies those compounds for                                     diesel vehicles (HDDV), heavy-duty                                    evaluated on a case-by-case basis.
     which such an evaluation would appear                                      gasoline vehicles (HDGV), and gasoline-                               Combined with information on specific
     to be warranted.                                                           powered nonroad engines are identified                                exposure situations, the summary health
        With regard to emissions from                                           in Appendix I located at the end of                                   hazard information in IRIS may be used
     alternative-fueled vehicles, most of the                                   Chapter 2 of the TSD. Data for other                                  in evaluating potential public health
     compounds included in the exhaust are                                      vehicle and engine types (e.g., light-duty                            risks from environmental contaminants.
     included on our list of MSATs (e.g.,                                       diesel engines and nonroad diesel                                     IRIS also lists compounds for which the
     formaldehyde, acetaldehyde). It should                                     engines) either do not exist or are                                   Agency has reviewed currently available
     be noted that, depending on the fuel                                       outdated (more than 10 years old) and
                                                                                                                                                      information and concluded that (1)
     used, these vehicles may also emit                                         thus are judged not to be representative
                                                                                                                                                      there are insufficient data to calculate
     unburned ethanol and methanol.                                             of current emissions. However, it is
        EPA compared the lists of compounds                                                                                                           an RfC or RfD for the noncancer hazard
                                                                                unlikely that the lack of recent data for
     emitted from motor vehicles with lists                                                                                                           potentially posed by the compound(s),
                                                                                these particular vehicle and engine
     or sources of information on toxic                                                                                                               and/or (2) there is an absence of
                                                                                types would lead us to overlook
     substances other than IRIS to determine                                    compounds that should be included on                                  sufficient information to identify a
     the reasonableness of the MSAT list.                                       our list of MSATs, because the                                        cancer hazard.
     Based on this comparison, we requested                                     combustion processes for these missing                                   Before a substance is listed on the
     comments on the possible addition of                                       vehicle and engine types are similar to                               IRIS database, it goes through a
     propionaldehyde and 2,2,4-                                                 those for the vehicle and engine types                                thorough scientific evaluation. This
     trimethylpentane to the MSAT list. We                                      for which we do have data.                                            consensus and review process, managed
     are not adding these compounds to the                                                                                                            by EPA’s Office of Research and
     MSAT list at this time due to the                                          2. Using IRIS to Identify Pollutants With
                                                                                                                                                      Development (ORD), consists of (1) an
     absence of an Agency consensus view as                                     Potential Serious Adverse Health Effects
                                                                                                                                                      annual Federal Register announcement
     expressed on IRIS regarding the adverse                                       The Integrated Risk Information                                    of the IRIS agenda and a call for
     health effects of these compounds. The                                     System (IRIS) is an EPA database of                                   scientific information from the public
     MSAT list will be re-evaluated in the                                      scientific information that contains the                              on the selected chemical substances, (2)
     future as new information is acquired                                      Agency consensus scientific positions                                 a search of the current literature, (3)
     about emissions and/or health effects for                                  on the potential serious adverse health                               development of health assessment and
     any mobile source pollutant.                                               effects that may result from lifetime                                 draft IRIS summaries, (4) internal EPA
     Compounds may be added to or                                               (chronic) exposure to substances found                                peer review, (5) external peer review, (6)
     removed from the list in future                                            in the environment.6 IRIS currently                                   Agency consensus review and
     rulemaking notices.                                                        provides health effects information on                                management approval within EPA, (7)
                                                                                over 500 specific chemical compounds.                                 preparation of final IRIS summaries and
     1. Identifying Pollutants Emitted From                                        IRIS contains chemical-specific
     Mobile Sources                                                                                                                                   supporting documents, and (8) entry of
                                                                                summaries of qualitative and
                                                                                                                                                      summaries and supporting documents
        In identifying a list of MSAT, EPA                                      quantitative health information. IRIS
                                                                                                                                                      into the IRIS database.
     first searched for lists of compounds                                      information may include the reference
     from all available databases and recent                                    concentration (RfC) for noncancer                                     C. List of Mobile Source Air Toxics
     (i.e., ten years old or less) studies that                                 health effects resulting from chronic
     speciated the emissions from motor                                         inhalation exposure, the reference dose                                  In our notice of proposed rulemaking
     vehicles and their fuels. Many toxic air                                   (RfD) for noncancer health effects                                    we listed 21 MSATs. We received
     pollutants are hydrocarbons (HCs) by                                       resulting from chronic oral exposure,                                 comments on six proposed MSATs as
     their chemical nature and thus will be                                     and the carcinogen assessment for both                                well as other compounds. We are
     identified only if the HCs are chemically                                  oral and inhalation exposure. The RfC                                 finalizing this list of 21 compounds, but
     separated (speciated). In addition, the                                    or RfD is an estimate (with uncertainty                               we have changed the listing for diesel
     compounds that comprise the                                                spanning perhaps an order of magnitude                                exhaust to diesel particulate matter and
     particulate phase of mobile source                                         or more) of a daily exposure to the                                   diesel exhaust organic gases. A
     emissions must also be chemically                                          human population (including sensitive                                 discussion of the comments received on
     speciated. Many test programs that                                         subgroups) that is likely to be without                               the proposed MSAT list is provided
     characterize vehicle emissions identify                                    appreciable risk of deleterious                                       below and the MSAT list is provided in
     only total hydrocarbons and particulate                                    noncancer effects during a lifetime.                                  Table II–1.

                                                           TABLE II–1.—LIST OF MOBILE SOURCE AIR TOXICS (MSATS)
                                                                                  Diesel Particulate Matter + Diesel Exhaust
                              Acetaldehyde                                                                                                                                MTBE
                                                                                       Organic Gases (DPM + DEOG)

     Acrolein ...............................................................   Ethylbenzene ...................................................      Naphthalene.
     Arsenic Compounds 1 .........................................              Formaldehyde ..................................................       Nickel Compounds. 1
     Benzene .............................................................      n-Hexane ..........................................................   POM.3
     1,3-Butadiene .....................................................        Lead Compounds 1 ..........................................           Styrene.


       6 EPA IRIS Database, http://www.epa.gov/iris/

     intro.htm


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     17236                  Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

                                            TABLE II–1.—LIST OF MOBILE SOURCE AIR TOXICS (MSATS)—Continued
                                                                             Diesel Particulate Matter + Diesel Exhaust
                             Acetaldehyde                                                                                                                  MTBE
                                                                                  Organic Gases (DPM + DEOG)

     Chromium Compounds 1 ....................................             Manganese Compounds 1 ................................      Toluene.
     Dioxin/Furans 2 ...................................................   Mercury Compounds 1 .....................................   Xylene.
        1 Although the different metal compounds generally differ in their toxicity, the onroad mobile source inventory contains emissions estimates for
     total metal compounds (i.e., the sum of all forms).
        2 This entry refers to two large groups of chlorinated compounds. In assessing their cancer risks, their quantitative potencies are usually de-
     rived from that of the most toxic, 2,3,7,8-tetrachlorodibenzodioxin.
        3 Polycyclic Organic Matter includes organic compounds with more than one benzene ring, and which have a boiling point greater than or
     equal to 100 degrees centigrade. A group of seven polynuclear aromatic hydrocarbons, which have been identified by EPA as probable human
     carcinogens, (benz(a)anthracene, benzo(b)fluoranthene, benzo(k)fluoranthene, benzo(a)pyrene, chrysene, 7,12-dimethylbenz(a)anthracene, and
     indeno(1,2,3-cd)pyrene) are used here as surrogates for the larger group of POM compounds.


        By comparing the lists of compounds                                CO which are subject to National                            with exposure to metal emissions from
     identified in the motor vehicle emission                              Ambient Air Quality Standards), (3) the                     mobile sources, identification of the
     databases and studies with the toxic                                  more precise listing provides Federal                       specific forms of the metals emitted
     compounds listed in IRIS, we identified                               and State government, industry, and                         would be important.
     21 compounds. Each of these pollutants                                public interest groups an ability to focus                     With regard to emissions from
     are known, probable, or possible human                                on the components of diesel exhaust                         alternative-fueled vehicles, most of the
     carcinogens (Group A, B or C) and/or                                  that pose a potential concern for public                    compounds included in the exhaust are
     pollutants for which the Agency has                                   health, and (4) this focus provides                         included on our list of MSATs (e.g.,
     calculated an RfC or RfD.7 We therefore                               specific targets for emissions reductions                   formaldehyde, acetaldehyde). It should
     consider each of these compounds to be                                should future analysis indicate that                        be noted that, depending on the fuel
     MSATs.                                                                additional controls are necessary.                          used, these vehicles may also emit
        In response to public comments we                                     Regarding the listing of metals, we                      unburned ethanol and methanol. Low
     are changing the way we list diesel                                   have chosen to list the entire group of                     level ethanol mixtures (10% ethanol
     exhaust as an MSAT. We believe a                                      metal compounds if any compound of                          and 90% gasoline) are widely used in
     better approach is to list diesel                                     the metal has been detected in motor                        the United States. Higher level ethanol
     particulate matter and diesel exhaust                                 vehicle exhaust and any compound of                         mixtures (e.g., 85% ethanol) are used as
     organic gases (DPM + DEOG) as the                                     the metal is listed in IRIS as potentially                  alternative fuel sources in a small
     MSAT. This listing approach is more                                   causing adverse human health effects.                       number of flexible fuel vehicles. There
     precise about the components of diesel                                Literature values report only the total                     is a paucity of data on potential
     exhaust expected to contribute to the                                 amount of the metal compound                                inhalation effects of ethanol, and the
     observed cancer and noncancer health                                  identified and not the specific form of                     compound is not listed in IRIS. One
     effects and provides a framework for                                  the metal being emitted in motor vehicle                    commenter responded to our request for
     developing regulatory control strategies.                             exhaust. For example, chromium (Cr)                         comment on the addition of ethanol to
        Currently available science, while                                 can be emitted from combustion sources                      the list of MSATs based on the presence
     suggesting an important role for the                                  in different forms, the most toxic of                       of ethanol in alternative fuels and stated
     particulate phase component of diesel                                 which is Cr+6. In the literature, the form                  that ethanol should not be listed as an
     exhaust, does not attribute the serious                               of Cr emissions from mobile sources are                     MSAT. At this time EPA is not
     cancer and noncancer health effects                                   unidentified. In our list of MSAT, we                       including ethanol in the list of MSATs
     independently to diesel particulate                                   therefore list chromium compounds                           because we do not have an Agency
     matter separate from the organic gas                                  generally, and do not attempt to list                       consensus view as expressed on IRIS
     phase components. Therefore, this                                     specific forms of these metals because                      regarding the potential adverse health
     listing approach does not constitute two                              we lack metal speciation information.                       effects associated with exposure to
     separate MSAT listings but a single                                   When we assess the range of potential                       ethanol. The Agency is continuing
     listing meant to capture the collection of                            health impacts associated with exposure                     toxicity testing and risk assessment of
     emissions potentially responsible for the                             to chromium compounds, we consider                          potential adverse health effects resulting
     cancer and noncancer health effects                                   the health effects associated with all                      from exposure to this compound. We
     related to diesel exhaust.                                            forms of the compound for which we                          will reassess available information
        While this listing departs slightly                                have health effects information. For                        regarding potential health effects of
     from the approach described above, we                                 chromium, the most toxic form in IRIS                       exposure to ethanol when we evaluate
     believe this is reasonable because (1)                                is Cr+6; hence the health impacts                           whether additional controls are
     there are several nontoxic components                                 described for chromium compounds                            appropriate in 2003.
     of diesel exhaust (e.g., water vapor,                                 refer to these most serious effects even                       We did not include methanol on our
     nitrogen, oxygen) that we are excluding                               though it is highly unlikely that all                       proposed list of MSAT because it was
     from the listing, (2) this listing includes                           motor vehicle emissions are Cr+6. EPA                       not identified in our analysis of
     the components of diesel exhaust that                                 believes this listing approach is a                         speciated emissions from motor
     are likely to contribute to either the                                reasonable, health-protective way to                        vehicles. Instead, in the NPRM, we
     cancer or the noncancer hazard (with                                  handle the uncertainty surrounding                          requested comment on whether
     the exception of the gaseous phase                                    motor vehicle emissions of metals.                          methanol and ethanol, by virtue of their
     criteria pollutants such as NOX, SO2 and                              Moreover, it is consistent with Congress’                   use in alternative fuel vehicles, should
       7 A further discussion of the potential cancer and
                                                                           list of HAP for stationary sources in                       be included on the list.
     noncancer risks, and other dose-response
                                                                           Section 112(b) of the Act. At the same                         During the comment period, one
     information for each MSAT can be found in Chapter                     time we recognize that to accurately                        commenter directed EPA to studies that
     3 of the TSD.                                                         assess the actual health risks associated                   identify methanol as an emissions


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                                17237

     product of motor vehicles burning                       information to reassess the possible                  2007 heavy-duty engine rule) will
     reformulated gasoline. This commenter                   inclusion of these compounds in the list              reduce benzene emissions by 73
     suggested that further research needed                  of MSATs when we evaluate whether                     percent, formaldehyde emissions by 76
     to be conducted to determine whether                    additional controls are appropriate in                percent, 1,3-butadiene emissions by 72
     methanol should be added to the list of                 2003.                                                 percent, and acetaldehyde emissions by
     MSAT. Recently submitted comments                                                                             67 percent from 1990 levels. Under
                                                             III. How Are Motor Vehicle Emission
     echoed the need to conduct further                                                                            these same controls we project on-
                                                             Control Programs Reducing MSAT
     research and requested more time to                                                                           highway diesel PM emissions will be
                                                             Emissions?
     consider the addition of methanol to the                                                                      reduced by 94 percent by 2020, as
     MSAT list.                                                 In the previous section we identified              compared with 1990 levels. Nonroad
        In order to provide a full opportunity               the 21 MSATs. We now turn to an                       engines and equipment also contribute
     for public comment and to respond to                    evaluation of how our various mobile                  substantially to levels of MSAT
     these comments in more detail, we will                  source control programs will affect the               emissions and have only in recent years
     address the addition of methanol to the                 inventories of these air toxics.                      been subject to emission standards.
     MSAT list in a separate rulemaking. We                     The data and information available on              Since nonroad engines are not subject to
     believe it is reasonable to defer making                emissions of these 21 MSATs vary                      the same stringent controls as on-
     a decision on listing methanol until                    considerably. While we have baseline                  highway vehicles, the reductions from
     after today’s rulemaking, because listing               inventory data for all of the MSATs                   these sources are more moderate than
     in today’s rulemaking would not result                  except naphthalene, we do not have                    those for on-highway sources.
     in additional controls. The existing                    inventory projections for all of them.                  The discussion in this section consists
     motor vehicle VOC controls will reduce                  Therefore, we are examining the                       of two parts. First, we describe current
     emissions of methanol along with other                  projected impacts of our current and                  inventories of MSAT emissions. Next,
     gaseous toxics and fuel controls will                   proposed mobile source control                        we describe how our on-highway
     need to be considered in subsequent                     programs by groupings of air toxics. We               emission control programs will reduce
     rulemakings. As part of the future notice               do have specific projections of future                these inventories. Interested readers
     addressing addition of methanol to our                  emissions for five gaseous toxics                     should refer to Chapter 4 of our TSD for
     list of MSAT, we will also evaluate                     (benzene, formaldehyde, 1,3-butadiene,                more detailed information about the
     possible controls in accordance with                    acetaldehyde, MTBE) and for diesel PM                 methodology we used to compile these
     section 202(l)(2) as appropriate.                       (as the surrogate for DPM + DEOG) and                 inventories and the results of our
        In the notice of proposed rulemaking                 we present these in this section. We do               analysis. We consider the impacts of our
     we compared lists of emitted                            not have emissions projections for the                nonroad engine control programs on
     compounds to four lists of toxic air                    remaining gaseous toxics (acrolein,                   MSAT emissions in Section VI of this
     pollutants to confirm that our MSAT list                POM, styrene, toluene, xylene,                        preamble.
     was reasonable. The four lists of toxic                 ethylbenzene, naphthalene, and n-
     air pollutants we used were: the Clean                  hexane) but, because these compounds                  A. Baseline Inventories
     Air Act (CAA) Section 112(b) list of                    are part of VOCs, we believe it is                      We developed inventory estimates for
     hazardous air pollutants; California EPA                reasonable to utilize VOC emissions                   several gaseous MSATs (acetaldehyde,
     (CalEPA) list of toxic air contaminants                 inventory projections to estimate the                 benzene, 1,3-butadiene, formaldehyde,
     (TAC); U.S. Department of Health and                    expected impact of our control programs               MTBE) and also for diesel PM as part of
     Human Service Agency for Toxic                          on these other gaseous MSATs. Finally,                the 1999 study, ‘‘Analysis of the Impacts
     Substances and Disease Registry                         we also do not have emissions inventory               of Control Programs on Motor Vehicle
     (ATSDR) list of Minimal Risk Levels                     projections for the metals on the MSAT                Toxic Emissions and Exposure in Urban
     (MRLs); and International Agency for                    list (arsenic compounds, chromium                     Areas and Nationwide,’’ (hereafter
     Research on Cancer (IARC) monographs                    compounds, mercury compounds,                         referred to as the 1999 EPA Motor
     on cancer. Comparing these four lists                   nickel compounds, manganese                           Vehicle Air Toxics Study, or the 1999
     against the emissions speciation studies                compounds, and lead compounds) or for                 Study).8 The pollutants examined in the
     and databases, we identified two                        dioxins/furans. While metal emissions                 1999 Study were chosen because we
     additional compounds not included on                    and dioxin/furans emissions are                       had adequate data to perform a rigorous
     our list of MSATs—propionaldehyde                       associated with particles and it is                   modeling analysis for those pollutants.
     and 2,2,4-trimethylpentane. Comments                    possible that some of these compounds                 The 1999 Study examined the impact of
     we received on these compounds                          track PM emissions to some extent, we                 a variety of parameters including fuel
     suggested either that (1) further study                 do not have good data on these                        properties, emission control
     was needed to determine the potential                   relationships. Therefore, we are not                  technologies, and type of in-use
     for adverse health effects or that (2) both             presenting emission projections for                   operation on the 1990 and 1996
     compounds should be added to the list                   these compounds in this action. We                    emissions inventories for these six
     of MSATs based on their presence in the                 believe this is reasonable because the                pollutants. The 1990 baseline represents
     CAA section 112(b) HAP list, or due to                  mobile source contribution to metals                  estimated emissions before any of the
     the presence of these compounds on the                  inventories is small and comes                        programs added by the1990 Clean Air
     emissions lists.                                        primarily from engine wear and                        Act Amendments were implemented.
        At this time EPA is not including                    impurities in engine oil, or from fuel                The 1996 estimates reflect toxics
     propionaldehyde or 2,2,4-                               additives.                                            emissions with some of the new Clean
     trimethylpentane in the list of MSATs                      As we describe in the following                    Air Act programs in place, such as
     because we do not have an Agency                        discussion, there have been and will                  Phase 1 of the RFG program. Note that
     consensus view as expressed on IRIS                     continue to be significant reductions in
     regarding the potential adverse health                  MSAT emissions as a result of our                       8 Analysis of the Impacts of Control Programs on

     effects associated with exposure to these               mobile source regulations. By 2020, we                Motor Vehicles Toxics Emissions and Exposure in
                                                                                                                   Urban Areas and Nationwide (Volumes 1 and 2),
     pollutants. EPA assessments of these                    project on-highway emission control                   November 1999. EPA420–R–99–029/030. This
     compounds have been proposed and we                     programs (up to and including our Tier                report can be accessed at http://www.epa.gov/otaq/
     will use all currently available                        2 control program and our proposed                    toxics.htm.



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     since completion of the 1999 Study, we                                    improvements made with regard to                                         should also be noted that these
     have updated our estimates of diesel PM                                   heavy-duty engine modeling). Our                                         estimates are only for on-highway
     emissions and our estimates of toxics                                     updated baseline toxics inventory                                        vehicles.
     emissions from heavy-engines (as part of                                  estimates are presented in Table III–1. It

                          TABLE III–1.—ANNUAL EMISSIONS FROM ON-HIGHWAY VEHICLES FOR SELECTED AIR POLLUTANTS
                                                                                                [Short tons per year] a

                                Compound                                                              1990 Emissions                                                       1996 Emissions b

     1,3-Butadiene .....................................................        36,000 ..............................................................    24,000
     Acetaldehyde ......................................................        41,000 ..............................................................    31,000
     Benzene .............................................................      257,000 ............................................................     171,000
     Formaldehyde .....................................................         139,000 ............................................................     93,000
     Diesel PM ...........................................................      235,000 c ..........................................................     182,000
     MTBE ..................................................................    55,000 ..............................................................    67,000
        a In
           this notice we report emissions in terms of short tons as opposed to metric tons.
        b The 1996 estimates are based on updated inventories taking into consideration the proposed 2007 and later model year heavy-duty engine
     standards.
       c For 1990, we used diesel PM estimates from EPA’s Trends Report.




        The 1996 National Toxics Inventory                                     included on the list of 112(b) hazardous                                 fires). Between the 1999 EPA Motor
     (NTI) prepared in connection with the                                     air pollutants, which is the focus of the                                Vehicle Air Toxics Study and the 1996
     Agency’s NATA activities also contains                                    1996 NTI, DPM + DEOG estimates were                                      NTI, we have baseline inventory data for
     emission estimates for 1,3-butadiene,                                     not compiled in the 1996 NTI.                                            all of the 21 MSATs except
     acetaldehyde, benzene, formaldehyde                                          The 1996 NTI also contains 1996                                       naphthalene.10 (For DPM + DEOG, we
     and MTBE. The 1996 NTI emission                                           emissions estimates for several other                                    do not have inventory data on the DEOG
     estimates for these compounds differ                                      MSATs, and includes data for nonroad 9                                   portion. For this analysis, we are using
     slightly from those generated in the                                      as well as on-highway sources. We                                        DPM as a surrogate for DPM + DEOG.)
     1999 EPA Motor Vehicle Air Toxics                                         present these data in Table III–2. We                                    While good baseline data exist for many
     Study, due to revisions made to the NTI                                   also indicate the on-highway and                                         of the MSATs, they do not exist for all.
     based on updated vehicle miles traveled                                   nonroad percentages of the national                                      As noted earlier, we plan to conduct
     (VMT) information provided by a                                           inventories for these MSATs (the total                                   additional research in coordination with
     number of states, minor changes to the                                    national inventories include emissions                                   other toxics research activities that are
     emissions model used (the MOBTOX                                          from on-highway and nonroad mobile                                       ongoing in the Agency to improve our
     model), and revised heavy-duty                                            sources, major and area stationary                                       characterization of toxics emission from
     information. Since DPM + DEOG is not                                      sources, and other sources such as forest                                mobile sources.

            TABLE III–2.—1996 ON-HIGHWAY AND NONROAD EMISSION INVENTORIES OF SOME MSATS FROM THE 1996 NTI
                                                                                                        [Short tons]

                                                                                                       On-Highway                                       Nonroad                     Mobile Sources

                                       Compound                                                                  Percent of                                 Percent of                          Percent of
                                                                                                Tons           Total National               Tons          Total National         Tons         Total National
                                                                                                                Emmissions                                 Emmissions                          Emmissions

     1,3-Butadiene a .................................................................          23,500                          42           9,900                       18      33,400                   60
     Acetaldehyde a .................................................................           28,700                          29          40,800                       41      69,500                   70
     Acrolein a ..........................................................................       5,000                          16           7,400                       23      12,400                   39
     Arsenic Compounds a ......................................................                    0.25                       0.06            2.01                     0.51        2.26                 0.57
     Benzene a .........................................................................       168,200                          48          98,700                       28     266,900                   76
     Chromium Compounds a ..................................................                         14                        1.2              35                        3           49                 4.2
     Dioxins/Furans a, b .............................................................          0.0001                         0.2            N.A.                     N.A.      0.0001                  0.2
     Ethylbenzene ...................................................................           80,800                          47          62,200                       37     143,000                   84
     Formaldehyde a ................................................................            83,000                          24          86,400                       25     169,400                   49
     Lead Compounds a ..........................................................                     19                        0.8             546                     21.8         565                 22.6
     Manganese Compounds a ................................................                         5.8                        0.2            35.5                      1.3         41.3                 1.5
     Mercury Compounds a .....................................................                      0.2                        0.1              6.6                     4.1          6.8                 4.2
     MTBE ...............................................................................       65,100                          47          53,900                       39     119,000                   86
     n-Hexane ..........................................................................        63,300                          26          43,600                       18     106,600                   44
     Naphthalene .....................................................................             N.A.                       N.A.            N.A.                     N.A.         N.A.                N.A.
     Nickel Compounds a .........................................................                  10.7                        0.9            92.8                      7.6       103.5                  8.5
     POM (as sum of 7 PAH) a ...............................................                       42.0                          4            19.3                        2        61.3                    6
     Styrene .............................................................................      16,300                          33           3,500                        7      19,800                   40
     Toluene ............................................................................      549,900                          51         252,200                       23     802,100                   74

       9 The nonroad inventory in the 1996 NTI includes                        include aircraft except where otherwise noted. It                          10 Naphthalene emissions are not reported in the

     emissions data for aircraft, commercial marine                            should be noted that the NONROAD model, on                               1996 NTI separately from 16–PAH. See Chapter 3
     vessel, locomotives, and other nonroad engines.                           which the estimates for nonroad engines other than                       of the TSD for the explanation of the linkage
     Note that under the Clean Air Act definition,                             locomotive, commercial marine vessels, and aircraft                      between diesel exhaust and diesel PM.
     nonroad vehicles do not include aircraft. For                             are based, is still draft, and the emissions estimates
     convenience, in this action the term ‘‘nonroad’’ will                     based on this model are subject to change.



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                              Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                                         17239

          TABLE III–2.—1996 ON-HIGHWAY AND NONROAD EMISSION INVENTORIES OF SOME MSATS FROM THE 1996 NTI—
                                                     Continued
                                                                                                    [Short tons]

                                                                                                    On-Highway                       Nonroad                    Mobile Sources

                                       Compound                                                            Percent of                       Percent of                   Percent of
                                                                                             Tons        Total National       Tons        Total National      Tons     Total National
                                                                                                          Emmissions                       Emmissions                   Emmissions

     Xylene ..............................................................................   311,000                     43   258,400                   36   569,400               79
        a These  compounds are also on the list of urban HAPs for the Integrated Urban Air Toxics Strategy.
        b Mass  given in tons of TEQ (toxic equivalency quotient). The EPA Office of Research and Development (ORD) has recently developed an in-
     ventory for dioxin and dioxin-like compounds using different methods than those used in the 1996 NTI. For 1995, the EPA–ORD estimate of on-
     highway emissions of dioxin compounds is 0.00005 tons TEQ, comprising 1.5 percent of the national inventory in that year. (The TEQ rates the
     toxicity of each dioxin and furan relative to that of 2,3,7,8–TCDD, which is assigned a TEQ of 1.0.)


        The above inventory data reflect                                       such as large generators, do operate on                  comply with the hydrocarbon and
     certain interesting characteristics of                                    diesel fuel. Because there are relatively                particulate standards (e.g., more
     mobile source air toxics emissions.                                       few stationary sources that operate on                   efficient catalytic converters), we expect
     First, mobile sources account for the                                     diesel fuel, we believe that diesel PM                   air toxics to be reduced as well. Since
     majority of the national inventory of                                     from stationary sources is relatively                    1990, we have developed a number of
     three of the gaseous MSATs that are                                       small compared to diesel PM from                         programs to address exhaust and
     included on the urban HAP list. These                                     mobile sources. (However, for this                       evaporative hydrocarbon emissions and
     three are 1,3-butadiene (60 percent),                                     analysis we have not generated an                        PM emissions. Some of the key
     acetaldehyde (70 percent), and benzene                                    estimate of diesel PM from stationary                    programs are the Tier 1 and NLEV
     (76 percent). Mobile sources account for                                  sources.) As shown in Table III–1,                       standards for light-duty vehicles and
     39 percent of the national inventory of                                   above, we estimate that 1996 on-                         trucks; enhanced evaporative emissions
     acrolein, and 49 percent of the national                                  highway diesel PM emissions are                          standards; the supplemental federal test
     inventory of formaldehyde, two other                                      approximately 182,000 tons. We                           procedures (SFTP); urban bus standards;
     gaseous urban HAPs. All of these                                          estimate that 1996 nonroad diesel PM                     and heavy-duty diesel and gasoline
     MSATs are formed as part of the                                           emissions are approximately 346,000                      standards for the 2004/2005 time frame.
     combustion process except for benzene,                                    tons, as discussed in Section VI of this                    • Recent motor vehicle/fuel control
     which is also released through                                            notice.12                                                initiatives. Two of our recent initiatives
     evaporative emissions from gasoline.                                                                                               to control emissions from motor
        Second, with regard to the other                                       B. Impacts of Motor Vehicle Emission                     vehicles and their fuels are the Tier 2
     MSATs that are included on the urban                                      Controls on Emission Inventories                         control program and our proposed 2007
     HAP list, the mobile source contribution                                  1. Description of Emission Control                       heavy-duty engine rule. Together these
     generally is small (arsenic compounds,                                    Programs                                                 two initiatives define a set of
     chromium compounds, manganese                                                Many of the programs that we have                     comprehensive standards for light-duty
     compounds, mercury compounds,                                             put in place since the passage of the                    and heavy-duty motor vehicles and their
     nickel compounds, POM, and dioxins/                                       1990 Clean Air Act Amendments to                         fuels. In both of these initiatives, we
     furans). The sole exception is lead                                       achieve attainment of the National                       treat vehicles and fuels as a system. The
     compounds. Mobile sources contribute                                      Ambient Air Quality Standards                            Tier 2 control program establishes
     23 percent to national inventories of                                     (NAAQS) for ozone, PM and CO have                        stringent tailpipe and evaporative
     lead compound emissions, due                                              also reduced MSAT emissions. For                         emission standards for light-duty
     primarily to nonroad sources and, more                                    example, measures to control                             vehicles and a reduction in sulfur levels
     specifically, to the use of a lead-additive                                                                                        in gasoline fuel beginning in 2004. The
                                                                               hydrocarbons from motor vehicles are
     package used to boost the octane of                                                                                                proposed 2007 heavy-duty engine rule
                                                                               also effective in controlling gaseous
     aviation gasoline.11 The mobile source                                                                                             would establish stringent exhaust
                                                                               toxics. In addition, certain programs
     contribution to the other metals on the                                                                                            emission standards for heavy-duty
                                                                               address air toxics directly, such as the
     urban HAP list comes primarily from                                                                                                engines and vehicles for the 2007 model
                                                                               RFG program and the gasoline lead
     engine wear, some fuel additives, or                                                                                               year as well as reductions in diesel fuel
                                                                               phase-out. In this section we briefly
     impurities in engine oil.                                                                                                          sulfur levels starting in 2006.
                                                                               describe several categories of mobile
        With regard to the gaseous MSATs                                                                                                   • Limits on gasoline volatility.
     that are not included on the urban HAP                                    source emission control measures that
                                                                                                                                        Volatility is a measure of how easily a
     list (ethylbenzene, MTBE, n-hexane,                                       have helped reduce inventories of these
                                                                                                                                        liquid evaporates. As described earlier,
     toluene, and xylene), mobile source                                       harmful compounds. These programs
                                                                                                                                        some toxics such as benzene are present
     contributions are high because of the                                     include:
                                                                                  • More stringent vehicle standards                    in gasoline and get into the air when
     presence of these compounds in                                                                                                     gasoline evaporates. We imposed limits
                                                                               and test procedures. The 1990 Clean Air
     gasoline.                                                                                                                          on gasoline volatility in the early 1990s
        In addition, mobile sources account                                    Act Amendments set specific emission
                                                                               standards for hydrocarbons and for PM.                   to control evaporative emissions of both
     for almost all diesel PM emissions. A                                                                                              hydrocarbon and toxic compounds
     limited number of stationary sources,                                     Air toxics are present in both of these
                                                                               pollutant categories. As vehicle                         (most air toxics are hydrocarbons, so
                                                                               manufacturers develop technologies to                    programs designed to reduce
        11 Aviation gasoline is used by a relatively small
                                                                                                                                        hydrocarbon emissions also reduce air
     number of aircraft, those with piston engines,
     which are generally used for personal                                       12 It should be noted that the nonroad diesel PM       toxics).
     transportation, sightseeing, crop dusting, and                            emissions estimate is based on the draft NONROAD            • Reformulated gasoline. The 1990
     similar activities.                                                       model and is subject to change.                          Clean Air Act Amendments required


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     17240             Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

     reformulated gasoline to be introduced                  a. Overview of Inventory Sources                      the MSAT listed as DPM and DEOG.
     in the nation’s most polluted cities                       We developed inventory projections                 Where we have data regarding specific
     beginning in 1995. From 1995 through                    that reflect our current and proposed                 constituents in the diesel exhaust
     1999, these gasolines were required to                  control programs, described above, for                organic gas phase we present that
     provide a minimum 16.5 percent                          five gaseous MSATs, for VOC, and for                  information.
     reduction in air toxics emissions over                                                                           Our VOC and diesel PM emission
                                                             diesel PM for the years 2007 and 2020.
     typical 1990 gasolines, increasing to a                                                                       estimates are derived from several
                                                             The inventory projections for the five
     21.5 percent minimum reduction                                                                                sources. The 1996 and later values are
                                                             gaseous toxics are based on the 1999
     beginning in the year 2000. The air                                                                           based on updated modeling that factors
                                                             EPA Motor Vehicle Air Toxics Study,
     toxics reductions have been achieved                                                                          in the impact of the proposed 2007
                                                             updated to incorporate a variety of new
     mainly by further reducing gasoline                                                                           heavy duty engine standards. The 1990
                                                             information on on-highway vehicles.
     volatility and by reducing the benzene,                    The 1999 Study estimated on-                       VOC emission estimate is based on the
     aromatics, sulfur, and olefin content of                                                                      1999 EPA Motor Vehicle Air Toxics
                                                             highway motor vehicle air toxics
     the gasoline.                                                                                                 Study,13 and the 1990 diesel PM is from
                                                             emissions for ten urban areas (Atlanta,
        • Phase-out of lead in gasoline. One                                                                       EPA’s Trends Report.14
                                                             Chicago, Denver, Houston, Minneapolis,
     of the first programs to control toxic                                                                           We are not reporting inventory trends
                                                             New York City, Philadelphia, Phoenix,                 for the metals on our list of MSATs
     emissions from motor vehicles was the
                                                             Spokane, and St. Louis) and 16                        (arsenic compounds, chromium
     removal of lead from gasoline.
                                                             geographic regions. These areas were                  compounds, mercury compounds,
     Beginning in the mid-1970s, unleaded
                                                             selected to reflect the range of potential            nickel compounds, manganese
     gasoline was phased in to replace
                                                             fuels, temperatures, and I/M programs                 compounds, and lead compounds) or for
     leaded gasoline. The phase-out of
                                                             observed in the United States. Every                  dioxins/furans because we do not have
     leaded gasoline was completed January
                                                             county in the country was then                        good data on these relationships at this
     1, 1996 when lead was banned from
     motor vehicle gasoline. The removal of                  ‘‘mapped’’ to one of these modeled areas              time. Metals in mobile source exhaust
     lead from gasoline has essentially                      or regions. Mapping was done based on                 can come from fuel, fuel additives,
     eliminated on-highway mobile source                     a combination of geographic proximity,                engine oil, engine oil additives, or
     emissions of this highly toxic substance.               I/M program, and fuel control programs.               engine wear. Formation of dioxin and
        • Ensuring emissions are controlled                  The estimation methodology used in the                furans requires a source of chlorine.
     throughout the vehicle’s life. Many of                  1999 Study was similar to that used in                Thus, while metal emissions and
     our vehicle standards require                           our original 1993 Motor Vehicle Related               dioxin/furan emissions are associated
     certification of new engines and                        Air Toxics Study. In our approach, the                with particles and it is possible that
     vehicles, but ensuring continued                        MOBILE model is used to generate total                some of these compounds track PM
     performance of emission controls can be                 organic gas (TOG) emissions from on-                  emissions to some extent, there are a
     difficult. The Clean Air Act establishes                highway motor vehicles by vehicle class               number of other factors that contribute
     several programs to make sure vehicle                   and model year. Toxics fractions,                     to emissions, and we do not have good
     emission controls are functioning                       developed as a percentage of the toxic                data on these relationships.
     properly in actual use. These programs                  compound of interest contained in TOG                    We did receive one comment
     include requirements for periodic                       emissions, are then applied to the                    regarding inputs to the emission
     emission inspections (I/M, or inspection                MOBILE-based TOG emission rates                       inventory modeling performed for the
     and maintenance programs) and for                       (reported in grams per mile) to arrive at             NPRM. The National Petrochemical and
     computerized on-board diagnostic                        toxics emission rates (reported in grams              Refiners Association (NPRA)
     systems that alert drivers and mechanics                per mile or milligrams per mile). For                 commented that the vehicle miles
     to malfunctioning emission controls.                    light-duty vehicles, information                      traveled (VMT) growth rates for heavy-
        We encourage the interested reader to                developed for the Complex Model was                   duty vehicles, which were based on
     refer to Chapter 1 of our TSD for more                  used to develop these relationships.                  1998 estimates from the Energy
     detailed information about these                        These toxics fractions are developed as               Information Agency (EIA), were too
     programs.                                               a function of vehicle class (e.g., light-             high. In support of their comments,
                                                             duty, heavy-duty), fuel type (e.g.,                   NPRA submitted EIA’s 1999 estimates
     2. Emission Reductions From Control                     gasoline or diesel), fuel composition,                which were lower than those from 1998
     Programs                                                and technology type (e.g., non-catalyst,              used by EPA. For the inventory
        We expect the mobile source                          catalyst).                                            projections contained in today’s action,
     emissions control programs described                       We do not have detailed emissions                  we have retained the same growth rates
     above to have beneficial impacts on                     data for gaseous MSATs other than the                 used in the NPRM analysis. Based on
     national inventories of MSATs. The                      five gaseous MSATs examined in the                    discussions with EIA, we believe the
     remainder of this section summarizes                    1999 Study. However, we expect the                    2000 growth estimates will be higher
     our MSAT inventory projections. First,                  trend for other gaseous MSATs,                        than both the 1999 estimates NPRA
     we present an overview of the                           including acrolein, POM, styrene,                     referenced and the 1998 estimates we
     methodologies used to project future                    xylene, toluene, ethylbenzene,                        used in the NPRM analysis.15 However,
     emissions inventories. Next, we present                 naphthalene, and n-hexane, to follow
     the results of our inventory projections.               that of VOC, since all of these                          13 The analysis methodology is described in a

     We encourage interested readers to refer                compounds are VOCs. We recognize                      memorandum from Meredith Weatherby, Eastern
                                                                                                                   Research Group, to Rich Cook, EPA, entitled
     to Chapter 4 of our TSD for a more                      that some gaseous MSATs may not                       ‘‘Estimating of 1990 VOC and TOG Emissions’’ in
     detailed discussion of these projections                decrease at the same rate as VOCs                     EPA Air Docket A–2000–12.
     and how we developed them. The                          overall. Without having more detailed                    14 EPA, 2000. National Air Pollution Emission

     inventory projections in this section are               emission data for each of the MSATs,                  Trends, 1900–1998 (March 2000). Office of Air
     for on-highway vehicles only.                           however, we are unable to project how                 Quality Planning and Standards, Research Triangle
                                                                                                                   Park, NC. Report No. 454/R–00–002.
     Projections of nonroad MSAT emissions                   those rates may differ. Because we do                    15 ‘‘Early Release of the Annual Energy Outlook
     are included in Section VI of this                      not have emissions data for DEOG, we                  2001,’’ available at www.eia.doe.gov/oaif/aeo/
     preamble.                                               are using diesel PM as the surrogate for              earlyrelease/index.html, Energy Information



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                              Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                                                        17241

     because the final 2000 numbers are not                                     b. Emission Reductions                                             heavy-duty engine standards. The 1996
     yet available from EIA, we are retaining                                                                                                      inventories presented in Table III–3 are
     the use of the growth rates used in the                                      Table III–3 presents the annual                                  slightly higher than the 1996 inventories
     NPRM as a more reasonable estimate                                         emission projections for on-highway                                presented in Table III–2 because the
     than the 1999 growth estimates.                                            vehicles for five gaseous toxics, VOC,                             estimates of heavy-duty vehicle VMT
                                                                                and diesel PM with our current on-                                 have been updated and improved since
                                                                                highway control programs and the                                   the VMT estimates for the 1996 NTI
                                                                                proposed 2007 and later model year                                 were prepared.

                                          TABLE III–3.—ANNUAL EMMISSIONS INVENTORIES FROM ON-HIGHWAY VEHICLES a
                                                                                             [Thousand short tons per year]

                                                           Compound                                                                    1990            1996               2007            2020

     1,3 Butadiene ...........................................................................................................                36                24               12               10
     Acetaldehyde ...........................................................................................................                 41                31               17               13
     Benzene ...................................................................................................................             257               171               89               68
     Formaldehyde ..........................................................................................................                 139                93               43               34
     Diesel PM ................................................................................................................              235               182               85               15
     MTBE b .....................................................................................................................             55                67               26               18
     VOC .........................................................................................................................         7,585             4,933            3,028            2,153
        a Includes
                 the impact of our current on-highway control programs and the proposed 2007 and later model year heavy-duty engine standards.
        b These
              estimates do not include consideration of EPA’s examination of options to phase down or otherwise control the use of MTBE under the
     Toxic Substances Control Act, or legislative authority that EPA has asked Congress to provide the Agency to address MTBE use in gasoline.


       Table III–4 summarizes the percent                                       diesel PM from 1990 and 1996 levels in                             proposed 2007 and later model year
     reductions we expect in on-highway                                         2007 and 2020 as a result of our current                           heavy-duty engine standards.
     emissions of gaseous MSATs, VOC, and                                       on-highway control programs and the

                                                        TABLE III–4.—REDUCTIONS IN ON-HIGHWAY VEHICLE EMISSIONS a
                                                                                                                                         Reduction in 2007                 Reduction in 2020
                                                           Compound                                                                  From 1990       From 1996         From 1990        From 1996
                                                                                                                                      (Percent)       (Percent)         (Percent)        (Percent)

     1,3 Butadiene ...........................................................................................................                67               50                  72            57
     Acetaldehyde ...........................................................................................................                 58               46                  67            57
     Benzene ...................................................................................................................              65               48                  73            60
     Formaldehyde ..........................................................................................................                  69               54                  76            64
     Diesel PM ................................................................................................................               64               53                  94            92
     MTBE b .....................................................................................................................             52               61                  67            73
     VOC .........................................................................................................................            60               39                  72            56
        a Includes
                 the impact of our current on-highway control programs and the proposed 2007 and later model year heavy-duty engine standards.
        b These
              estimates do not include consideration of EPA’s examination of options to phase down or otherwise control the use of MTBE under the
     Toxic Substances Control Act, or legislative authority that EPA has asked Congress to provide the Agency to address MTBE use in gasoline.


        The results of this analysis show that                                  IV. Evaluation of Additional Motor                                 impact of our most recent efforts to
     on-highway emissions of the five                                           Vehicle-Based Controls                                             control VOCs, and the possibility of
     gaseous MSATs examined are expected                                                                                                           additional control. The Technical
                                                                                  We are not establishing new standards
     to decline by 67 to 76 percent by 2020                                                                                                        Support Document contains additional
                                                                                for motor vehicles in this rulemaking to
     from 1990 levels with our existing and                                                                                                        information.
                                                                                control MSAT emissions. Based on the
     proposed control programs. For some                                        information available to the Agency at                               It is important to note that while we
     gaseous MSATs, the reductions are even                                     this time, we have determined that our                             are not adopting new vehicle-based
     greater. Likewise, VOC inventories from                                    proposed and current control programs                              controls in this rulemaking, we will
     on-highway vehicles are projected to                                       for VOC and diesel PM emissions from                               continue to consider the need for, and
     decrease by 72 percent between 1990                                        motor vehicles will achieve the greatest                           feasibility of, vehicle-based controls in
     and 2020 and we assume that other                                          degree of MSAT control that is feasible                            the future and as part of our Technical
     gaseous toxics would decrease by                                           when cost and other relevant factors are                           Analysis Plan. As we have in the past,
     approximately 72 percent as well.                                          considered. This section summarizes                                we will also continue to look for
     Finally, diesel PM emissions are                                           our rationale for this determination,                              opportunities to control MSAT
     projected to decline by 94 percent by                                      including the relationship between                                 emissions in conjunction with other
     2020 from 1990 levels.                                                     EPA’s vehicle-based control programs                               pollutants (e.g., NOX, SO2, VOC). Most
                                                                                and the control of MSATs (especially for                           of the vehicle-based comments focused
                                                                                those programs established after the                               on these types of controls. These
                                                                                1990 Clean Air Act Amendments), the


     Administration, downloaded from EIA web site on
     December 12, 2000.


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     17242                    Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

     comments are addressed in the                                            emissions are only a significant issue for              categories that we regulate: ‘‘light-duty’’
     Response To Comments document.                                           gasoline-fueled vehicles (or vehicles                   (vehicles 8,500 pounds gross vehicle
                                                                              using volatile alternative fuels).                      weight rating (GVWR) or less) and
     A. MSATs and Motor Vehicle-Based
                                                                              Evaporative and refueling emissions are                 ‘‘heavy-duty’’ (vehicles above 8,500
     Controls
                                                                              controlled by eliminating sources of                    pounds GVWR).16 Within these light-
       The majority of gaseous MSATs are                                      potential liquid and vapor leaks within                 duty and heavy-duty categories, we
     hydrocarbons that are primarily the                                      the vehicle fuel system and venting any                 further distinguish vehicles and
     result of incomplete combustion of                                       vapors to an activated carbon canister or               sometimes establish different emission
     petroleum fuels. Since a small amount                                    similar device. Activated carbon                        limits based on vehicle size or other
     of raw fuel passes through the engine                                    effectively adsorbs most hydrocarbon                    factors.
     unburned, MSATs present in the fuel                                      compounds, including the common
     are also emitted in the exhaust. In either                                                                                       B. Vehicle-Based Standards To Reduce
                                                                              evaporative-related MSATs.
     case, the technologies used to reduce                                                                                            MSATs From Light-Duty Vehicles
                                                                                 Particulate matter emissions from
     exhaust hydrocarbons also reduce the                                     motor vehicles are primarily composed                      Before we began regulating
     hydrocarbon species listed as MSATs.                                     of partially burned carbon and                          automobile exhaust, vehicles typically
     This is true whether control is achieved                                 hydrocarbons from the fuel and engine                   emitted more than 9 grams per mile
     through engine or component                                              oil, and to a lesser degree, metals and                 (gpm) HC in exhaust emissions. Our HC
     modifications, add-on devices, or the                                    other inorganic compounds from                          emission standards in the 1970s and
     use of aftertreatment devices such as                                    contaminants or additives in the fuel or                1980s cut these levels by more than an
     oxidation or three-way catalysts. We are                                 engine oil, or products of engine wear                  order of magnitude, to 0.41 gpm in
     not aware of vehicle or engine                                           in the oil. Since our PM exhaust                        1980. In 1991, we finalized Tier 1
     technologies that selectively reduce                                     emission standards apply without                        controls for light-duty vehicles and
     MSATs without reducing other                                             regard to the source of the PM,                         light-duty trucks to be phased in from
     hydrocarbons to a similar degree.                                        manufacturers must account for all of                   1994 to 1996 (56 FR 25724). In 1998, we
       The other major source of                                              these emissions. Manufacturers have                     developed an innovative, voluntary
     hydrocarbon emissions from motor                                         significantly reduced PM emissions                      nationwide program to make new cars,
     vehicles is fuel vapors. These emissions                                 associated with unburned fuel and                       called National Low Emission Vehicles
     occur when components of the liquid                                      engine oil through combustion system                    (NLEV), significantly cleaner than Tier 1
     fuel (gasoline or diesel) evaporate when                                 and engine modifications. In some                       cars (63 FR 926). The NLEV program
     on board the vehicle. The emissions are                                  cases, they have also achieved                          went into effect in the Northeast states
     normally separated into refueling                                        reductions using aftertreatment.                        in 1999 and will go into effect in the rest
     emissions and evaporative emissions                                         To understand the relationship                       of the country in 2001. Table IV–1
     (hot soak, diurnal, and running losses).                                 between the Agency’s current emission                   illustrates the declining HC exhaust
     The nature and amount of potential                                       control program for on-highway                          standards through the NLEV program.17
     MSATs associated with fuel vapors                                        vehicles and the control of MSATs, it is                Also shown in the table are the number
     depend primarily on the fuel                                             important to first understand the                       of miles for which the standards apply,
     composition and the temperatures                                         structure and scope of our current                      which has increased with time. Thus
     involved. Gasoline is volatile and                                       emission control programs. EPA’s                        manufacturers need to make their
     evaporates at normal ambient                                             emission control program for on-                        emission control systems more durable
     temperatures, while diesel fuel is                                       highway vehicles has historically been                  and reliable over a longer period of
     relatively non-volatile. Thus evaporative                                divided into two broad vehicle/engine                   time.

                           TABLE IV–1.—HYDROCARBON (HC) EXHAUST EMISSION STANDARDS FOR LIGHT-DUTY VEHICLES
                                                                                                      [GPM]

                                             Year                                                  1972                  1975           1980               1994             2001

     Standard ...............................................................................            3.4                  1.5            0.41              a 0.31           b 0.09

     Applicability (Miles) ..............................................................             50,000               50,000          50,000            100,000          120,000
            1994 standard is a nonmethane hydrocarbon (NMHC) standard.
        a The
        b The2001 standard is a nonmethane organic gas (NMOG) standard. This standard will be replaced by the new multi-level Tier 2 NMOG
     standards, but the average standard level should remain at approximately 0.09 gpm.


        In December 1999, the Agency                                          to maintain its effectiveness, nationwide               when fully implemented, all vehicles
     finalized the Tier 2/sulfur rule                                         gasoline sulfur requirements were also                  designed for passenger use will have to
     establishing light-duty requirements                                     put into place. The Tier 2 program                      meet the stringent new emission
     that will be phased-in beginning with                                    begins in 2004 for passenger cars and                   standards.
     the 2004 model year. These                                               light LDTs (LDTs up to 6,000 pounds                       The Tier 2 program is designed to
     requirements phase-in a set of tailpipe                                  GVWR), while an interim program                         focus on reducing the ozone and
     emission standards that will, for the first                              begins in 2004 for heavy LDTs (LDTs                     particulate matter air quality impact of
     time, apply the same standards to                                        over 6,000 pounds GVWR). For heavy                      these vehicles. Ozone reductions will be
     passenger cars, light-duty trucks (LDTs),                                LDTs and MDPVs (medium-duty                             achieved through control of nitrogen
     and larger passenger vehicles. To enable                                 passenger vehicles), the Tier 2 standards               oxides and non-methane hydrocarbons.
     the very clean Tier 2 vehicle emission                                   will be phased in beginning in 2008,                    As discussed above, it is the control of
     control technology to be introduced and                                  with full compliance in 2009. Thus,                     HC through the NMOG standards that
       16 EPA recently created the new category of                            includes passenger vehicles 8,500–10,000 pounds           17 Our programs achieve VOC reductions through

     ‘‘medium-duty passenger vehicles’’ (MDPVs) that                          GVWR.                                                   standards that limit HC, NMHC, or NMOG.



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                            Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                                                        17243

     results in the control of the gaseous                                achieve significant reductions in                                 controls may achieve a greater degree of
     toxics. The Tier 2 rule also established                             formaldehyde emissions.                                           control of MSATs, which are generally
     stringent PM standards. Control of PM                                   In order to meet strict Tier 2 standards                       larger and heavier than many other
     emissions will occur through reductions                              on a fleet-wide average, manufacturers                            gasoline components. Under these
     in gasoline sulfur and the use of                                    will have to use a combination of                                 requirements, it is likely that
     aftertreatment for diesel vehicles.                                  sophisticated calibration changes and                             manufacturers will also need to upgrade
     Because all Tier 2 standards are fuel                                emission system hardware                                          materials and both increase the
     neutral, the PM standards apply to both                              modifications to increase and maintain                            reliability of fuel/vapor hose
     gasoline and diesel vehicles.                                        high control system efficiency. They                              connections and fittings and reduce the
        The Tier 2 standards will reduce new                              will be challenged to maintain tight air-                         number used in the system. We have
     vehicle NOX levels to an average of 0.07                             fuel control and improved catalyst                                also finalized on-board refueling vapor
     grams per mile. The NMOG standards                                   performance, especially achieving better                          recovery (ORVR) requirements for light-
     vary depending on which of the various                               catalyst thermal management.                                      duty gasoline vehicles (59 FR 16262,
     ‘‘bins’’ (i.e., certification categories) the                        Minimizing the time necessary for the                             April 6, 1994). ORVR is a nationwide
     manufacturers choose to use in                                       catalyst to reach its operating                                   program for capturing refueling
     complying with the average NOX                                       temperature will be especially critical,                          emissions by collecting vapors from the
     standard. However, we expect                                         since the vast majority of emissions                              vehicle gas tank and storing them in the
     significant reductions in NMOG                                       occur in the minute or less which passes                          vehicle during refueling. The fuel
     emissions from these vehicles as a result                            before the catalyst ‘‘lights off.’’ Many                          vapors are then purged into the engine
     of the more stringent NMOG standards                                 manufacturers are going to have to                                air intake to be burned while the vehicle
     in the bins and the need to select bins                              depend more on the precious metal                                 is being driven.
     to meet the NOX average. When fully                                  palladium for oxidation of NMOG and
     phased-in, we expect fleet average                                   CO emissions, as well as the reduction                               Taken as a whole, the Tier 2 program
     NMOG levels at or below the 0.09 g/mi                                of NOX. Palladium is more tolerant to                             presents the manufacturers with
     level. This will represent a 99 percent                              high temperatures and will enable                                 significant challenges in the coming
     reduction from uncontrolled pre-1970                                 manufacturers to increase catalyst                                years. It will require the use of hardware
     levels. Since these controls should be at                            efficiency in a broad range of in-use                             and emission control techniques and
     least as effective at reducing MSATs,                                conditions. These technologies will be                            strategies not used in the fleet today.
     these standards should also reduce                                   highly effective at reducing MSATs,                               Bringing essentially all passenger
     MSATs to a similar extent from                                       including benzene and formaldehyde.                               vehicles under the same emission
     uncontrolled levels.                                                    Our existing regulations also contain                          control program regardless of their size,
        The Tier 2 rule also finalized                                    test procedures to measure evaporative                            weight, and application is a major
     formaldehyde standards that harmonize                                hydrocarbon emissions during a                                    engineering challenge. While there may
     federal standards with the California’s                              simulated parking event (diurnal                                  be other prototype technologies on the
     LEV II program. Section 202(l)(2) of the                             emissions) and immediately following a                            horizon which could potentially reduce
     Clean Air Act instructs the Agency to                                drive (hot soak emissions). In 1993, we                           cold-start emissions and therefore air
     promulgate regulations that, at a                                    finalized more stringent evaporative                              toxics, we have concluded that it would
     minimum, apply to emissions of                                       emission test procedures which apply to                           not be appropriate to set tighter
     benzene and formaldehyde. We believe                                 light-duty and heavy-duty gasoline                                standards in this FRM based on these
     that the shift to a toxics emissions                                 vehicles. That rule also addressed fuel                           prototype technologies. We are not
     performance requirement will limit                                   spitback and spillage during refueling.                           convinced that these technologies
     emissions of these two pollutants. In                                These procedures were fully phased in                             would be feasible and cost effective on
     response to comments, we also                                        by 1999 (58 FR 16002). The Tier 2 rule                            a fleet-wide basis in the near future.
     considered setting more stringent                                    included even more stringent                                      This is discussed in more detail in
     vehicle-based formaldehyde standards                                 requirements. The Tier 2 evaporative                              Chapter 6 of the TSD.
     in this FRM. However, since we are not                               standards represent, for most vehicles,                           C. Vehicle-Based Standards To Reduce
     aware of any technology that could                                   more than a 50-percent reduction in                               MSATs From Heavy-Duty Engines
     specifically reduce formaldehyde                                     diurnal plus hot soak standards from
     emissions, we have no confidence that                                those that will be in effect in the years                            Table IV–2 summarizes the
     more stringent vehicle or engine                                     immediately preceding Tier 2                                      hydrocarbon and PM standards for
     formaldehyde standards would be                                      implementation. These standards                                   heavy-duty engines. Also shown in the
     feasible. Nevertheless, we remain                                    should achieve similar reductions in                              table are estimates of emission rates
     confident that the combination of our                                gaseous MSATs. In fact, since the                                 from uncontrolled engines. In addition,
     Toxics Performance Standard, Tier 2                                  activated carbon used to capture                                  the standards in our recently proposed
     formaldehyde standards and Tier 2                                    evaporative emissions preferentially                              2007 heavy-duty rulemaking are also
     NMOG standards described above will                                  adsorbs larger organic molecules, these                           shown in the table.18

                            TABLE IV–2.—HC AND PM EXHAUST EMISSIONS AND STANDARDS FOR HEAVY-DUTY ENGINES
                                                                                                             Gasoline (Otto-Cycle)                                   Diesel

                                                                                                                   Exhaust HC                     Exhaust HC                     Exhaust PM

     Uncontrolled Emissions ...........................................................................      10–13 g/bhp-hr ..........      4 g/bhp-hr ..................   0.7 g/bhp-hr.
     Current Standards ...................................................................................   1.1 g/bhp-hr a .............   1.3 g/bhp-hr ...............    0.10 g/bhp-hr.
     2004/5 Standards ....................................................................................   0.25 g/bhp-hr b ...........    0.4 g/bhp-hr c .............    0.10 g/bhp-hr.



       18 65   FR 35429, June 2, 2000.



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                TABLE IV–2.—HC AND PM EXHAUST EMISSIONS AND STANDARDS FOR HEAVY-DUTY ENGINES—Continued
                                                                                                       Gasoline (Otto-Cycle)                                Diesel

                                                                                                             Exhaust HC                    Exhaust HC                   Exhaust PM

     Proposed 2007 Standards .......................................................................   0.14 g/bhp-hr .............   0.14 g/bhp-hr .............   0.01 g/bhp-hr.
       a Currentstandard is 1.9 g/bhp-hr for Otto-cycle vehicles over 14,000 GVWR.
       b Standard was set as a 2005 NMHC+NO standard; level shown is estimated equivalent NMHC standard.
                                                 X
       c Standard is a 2004 NMHC+NO standard; level shown is estimated equivalent NMHC standard.
                                       X




        With regard to exhaust emission                               development, but it would also reduce                          section 202(a) as well as 202(l)(2) and
     standards, the proposed 2007 heavy-                              sulfate PM emissions .                                         therefore defers to the technical
     duty engine standards would reduce                                  We have recently extended our                               decisions made in that rulemaking.
     hydrocarbon emissions to levels                                  onboard diagnostic (OBD) requirements
                                                                                                                                     D. Conclusions Regarding Vehicle-Based
     approaching 0.1 g/bhp-hr for both                                to heavy-duty gasoline engines up to
                                                                                                                                     Standards
     gasoline and diesel. This would result                           14,000 pounds GVWR (65 FR 59896,
     in a significant reduction even when                             October 6, 2000). These OBD provisions                            We are not establishing new standards
     compared to the 2004 standards.                                  require that vehicle manufacturers                             for motor vehicles in this rulemaking to
     Similarly, the new exhaust PM standard                           install dashboard indicators that alert                        control MSAT emissions. We believe
     for heavy-duty diesel engines is                                 drivers to the need for emission-related                       our decision in this regard is
     stringent. This standard (0.01 g/bhp-hr)                         maintenance, and electronic monitors                           appropriate given the information
     is a 90-percent reduction from current                           that store codes in the vehicle’s                              currently available. We are also
     standards which are currently being                              computer to assist mechanics in the                            confident that our existing programs
     achieved with significant combustion                             diagnosis and repair of the malfunction.                       (and proposed programs, if finalized)
     chamber and engine modifications.                                As some of the commenters noted,                               will continue to achieve very significant
     Achieving a 0.01 g/bhp-hr standard will                          requiring that all highway vehicles                            reductions in MSAT emissions.
     require the use of catalyzed PM traps.                           incorporate these OBD systems will                                The Tier 2 program represents a
     This technology will also result in HC                           ensure good control of in-use emissions,                       comprehensive, integrated package of
     emission reductions. It is further worth                         including MSAT emissions. We are in                            exhaust, evaporative, and fuel quality
     noting that the proposed 2007 standards                          the process of developing a proposal                           standards. The Tier 2 program will
     include provisions for a closed                                  that would address OBD provisions for                          achieve significant reductions in
     crankcase for turbocharged diesel                                all other heavy-duty vehicles.                                 NMHC, NOX, and PM emissions from all
     engines. Crankcase emissions from these                             We have also proposed in the 2007                           light-duty vehicles in the program.
     engines are a significant source of                              rulemaking more stringent evaporative                          These reductions will include
     MSATs (PM and hydrocarbons) that has                             standards, which will force even further                       reductions in MSATs. Emission control
     previously remained uncontrolled.                                refinements in fuel/vapor systems.                             in the Tier 2 program will be based on
        For chassis-certified gasoline-powered                        Beginning in 2005, onboard refueling                           the widespread implementation of
     heavy-duty vehicles, EPA proposed that                           vapor control will be required for all                         advanced catalyst and related control
     beginning in 2007 they meet exhaust                              heavy-duty gasoline-powered vehicles                           system technology. The standards are
     hydrocarbon standards of similar                                 (65 FR 59896, October 6, 2000). This                           very stringent and will require
     stringency to those discussed above for                          would reduce emissions by 95 percent                           manufacturers to make full use of nearly
     Tier 2. These include hydrocarbon                                from current uncontrolled levels. In                           all available emission control
     standards of 0.195 g/mi for vehicles of                          addition, as part of the proposed 2007                         technologies. To illustrate this point, it
     8,500–10,000 lbs GVWR and 0.23 g/mi                              rulemaking, EPA proposed to reduce                             is worth noting that about 80 percent of
     for vehicles of 10,001–14,000 lbs                                evaporative emission standards by 50                           all remaining emissions from a well-
     GVWR.                                                            percent over current standards. Both                           maintained Tier 2 vehicle will occur in
        Fuel quality changes will enable                              refueling controls and further                                 the first 60 seconds of operation, before
     gasoline and diesel-powered vehicles/                            evaporative controls will reduce                               the catalyst ‘‘lights-off.’’ Manufacturers
     engines to meet the more stringent                               evaporative emissions of air toxics from                       will have to optimize both their cold-
     standards over their full life. As part of                       heavy-duty vehicles even further.                              start strategies and the efficiency of
     the Tier 2 rule, EPA promulgated                                    The proposed rulemaking for 2007                            warmed systems to achieve the Tier 2
     provisions limiting gasoline sulfur                              heavy-duty engine and vehicle                                  levels. Compliance with the Tier 2
     levels to 30 ppm average and 80 ppm                              standards contains extensive analysis                          standards will require the application of
     cap. This program phases in beginning                            and discussion of the technological                            emission technology not widely used in
     in 2004, and will enable a new                                   feasibility of potential HC and PM                             the light-duty fleet today and in some
     generation of vehicle emission control                           emission controls for heavy-duty                               cases the use of technological
     for heavy-duty gasoline vehicles and                             engines. That draft analysis                                   approaches still under development.
     also improve the emission performance                            demonstrated EPA’s belief at the time of                       Based on the information available to
     of the current fleet. Sulfur is a fuel                           the proposal that those heavy-duty                             the Agency at this time, we believe that
     contaminant, and controlling sulfur will                         standards would be the greatest degree                         the technologies that will be applied to
     also reduce sulfate PM emissions. The                            of emission reduction achievable                               meet the Tier 2 requirements provide
     2007 heavy-duty proposal mentioned                               through the application of technology                          the greatest achievable reductions in
     above also includes provisions that                              that will be available considering costs                       emissions of air toxics as well,
     would greatly reduce the sulfur content                          and other relevant factors. EPA believes                       considering costs and other relevant
     of current on-highway diesel fuel. Not                           that the proposed rule to establish 2007                       factors.
     only would this reduction enable the                             model year standards for heavy-duty                               The existing emission control
     emission control technology now under                            diesel engines satisfies the criteria in                       program for heavy-duty engines and


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                          17245

     vehicles has already achieved major                     comments on the fuels aspects of this                  on the refining industry. Some have
     reductions in MSAT emissions . New                      rulemaking.                                            claimed that a refinery-specific
     more stringent emission standards for                                                                          performance requirement is inherently
                                                             A. Form of the Rule
     heavy-duty engines will take effect in                                                                         unfair because those refineries that have
     2004 and 2005. We have also proposed                    1. What Is the Form of the Rule EPA Is                 overcomplied to the greatest extent will
     a further initiative that would require                 Promulgating Today?                                    receive the most stringent new baseline
     additional control of heavy-duty                           We are finalizing new toxics                        requirement. We recognize generally
     vehicle/engine emissions (65 FR 35430,                  emissions performance requirements                     that setting standards based on current
     June 2, 2000). This would establish new                 (TPR) for gasoline. This anti-backsliding              production may appear to penalize
     heavy-duty engine and vehicle emission                  program will require, beginning with                   those who have voluntarily
     standards beginning with model year                     calendar year 2002, that a refinery’s or               overcomplied. In fact, there is at least
     2007. The 2007 rulemaking is being                      importer’s annual average total toxics                 one refinery that has sought and
     finalized separately in a broader                       emissions performance, as predicted by                 received Agency recognition for its
     rulemaking that addresses the                           the Complex Model, for its baseline                    efforts to voluntarily overcomply with
     complicated implementation issues                       production volume of reformulated                      existing requirements.
     associated with proposed emission                       gasoline (RFG) not exceed its 1998–2000                   The Agency recognizes as a general
     standards. In developing a final rule that              baseline RFG total toxics emissions                    matter the importance of providing
     would establish these standards, the                    performance. Likewise for conventional                 appropriate incentives for the regulated
     Agency intends to adopt standards that                  gasoline (CG), this rule will require that             community to take actions consistent
     would result in the greatest achievable                 the exhaust toxics emissions                           with improving the environment.
     reductions in emissions of air toxics as                performance of a refinery’s or importer’s              However, in this case, we believe that
     well, considering costs and other                       baseline production volume of CG not                   setting refinery-specific standards is the
     relevant factors.                                       exceed its 1998–2000 baseline exhaust                  most appropriate and equitable
                                                             toxics emissions performance for CG.                   approach to ensuring that emissions do
        We have also made significant
                                                                The 1998–2000 baseline RFG or CG                    not increase above current levels. As we
     progress in the area of in-use operation.
                                                             toxics emissions performance value is                  explained in the NPRM, we believe that
     To address the malmaintenance issue,
                                                             the average performance of the gasoline                these refineries that have overcomplied
     we have established OBD requirements
                                                             produced at the refinery (or imported)                 have done so primarily because it was
     for manufacturers (both light-duty and
                                                             over the three year period 1998 through                economically advantageous. In most
     heavy-duty). To address both the
                                                             2000. Emission values are determined                   cases, the financial incentive to
     malmaintenance and tampering issues,
                                                             using the Complex Model,19 and                         overcomply is due to proximity to a
     we are working with states to develop
                                                             compliance with the program is                         market for chemical benzene. If the
     and optimize inspection and
                                                             determined separately for RFG and CG.                  Agency were to establish a single,
     maintenance (I/M) programs that
                                                             We have included in our program a                      nationwide standard, commenters could
     monitor the emission performance of in-                                                                        legitimately characterize such an action
     use vehicles. Historically, these                       number of compliance flexibilities, such
                                                             as a deficit and credit carryforward, and              as penalizing those refineries that are
     programs have relied on tailpipe testing                                                                       not located near petrochemical markets.
     to identify high-emitting vehicles.                     a compliance margin, to offset
                                                             unexpected or unusual variances in the                 Since each refinery is unique in terms
     However, these programs have begun to                                                                          of construction and location, any single
     rely more on the OBD systems to                         gasoline quality of a refinery (or
                                                             importer). We believe that these                       standard will create varying degrees of
     identify the high-emitting vehicles, as                                                                        challenges. Faced with a situation
     well as the cause of the emission                       provisions will help to ensure that this
                                                             program does not require new capital                   where a significant number of refineries
     problem. We are also investigating ways                                                                        have overcomplied with existing
     in which we could encourage the use of                  investments or changes in refinery
                                                             operations, and thus will not pose an                  standards, the Agency has sought to
     new emission controls on older                                                                                 craft a rule that represents the greatest
     vehicles. As described in the Response                  additional burden on refiners. Were this
                                                                                                                    degree of emission reductions
     to Comments, these are not being                        program to require new investments in
                                                                                                                    achievable considering costs. The
     finalized in this FRM.                                  the refining sector, we would be
                                                                                                                    regulation that we finalize today
                                                             concerned that it would impose an
     V. Evaluation of Additional Fuel-Based                                                                         achieves these goals.
                                                             economic burden on refiners that would
     Controls                                                be inconsistent with our finding that an               2. Why Did EPA Change From the
       The previous section evaluated motor                  anti-backsliding program at negligible                 Proposed Benzene Fuel Content Form of
     vehicle controls in the context of mobile               cost is the most stringent program that                the Rule to the TPR?
     source air toxics (MSATs). The primary                  we can justify in the near term.                          In the Notice of Proposed
     purpose of this section is to discuss the                  The current rule is designed to avoid               Rulemaking, we proposed a benzene
     fuel program being promulgated today.                   increases in toxic emissions from                      content requirement in order to capture
     We discuss the form of the rule, major                  gasoline while imposing the least cost                 the significant amount of
     areas of comment including our                            19 The Complex Model is a regulatory tool for
                                                                                                                    overcompliance above and beyond the
     response and final decisions on those                   estimating emissions for the reformulated gasoline
                                                                                                                    requirements of the federal reformulated
     aspects, and the details of the fuels                   and anti-dumping programs. The Complex Model           gasoline and anti-dumping programs.
     program. We also discuss why we are                     inputs are eight specified fuel parameters: benzene,   Average benzene levels in 1998 and
     not at this time considering other fuel                 oxygen content (by oxygenate type), sulfur, Reid       1999 were 0.66 volume percent for RFG
                                                             Vapor Pressure, aromatics, olefins and the percents
     controls as a means of reducing MSATs.                  evaporated at 200°F and 300°F (E200 and E300).
                                                                                                                    and 1.11 volume percent for
     The details of our technical analyses of                Complex Model outputs are the estimated                conventional gasoline. These national
     these fuel issues can be found in                       emissions (VOC, toxics, NOX) resulting from the        average benzene levels are significantly
     Chapter 7 of the Technical Support                      fuel parameters specified. The Complex Model also      below current requirement of 0.95
                                                             calculates percent reductions of the input slate of
     Document (TSD). The Response to                         fuel parameters and resulting emissions compared
                                                                                                                    volume percent for RFG and average
     Comments Document contains our                          to a base set of fuel parameters and resulting base    conventional gasoline baselines of 1.3
     responses to all of the relevant                        emissions.                                             volume. Benzene emissions account for


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     roughly 70% of motor vehicle air toxics                 expected environmental performance                    Evaluation of a Toxics Performance
     (i.e., benzene, formaldehyde,                           and its potential cost to industry.                   Requirement
     acetaldehyde, 1,3-butadiene and POM).                   Section 112(k) of the Clean Air Act                      There are several advantages for
        The Agency asked for comment on                      identifies five toxic air pollutants                  adopting a toxics performance
     two other forms of the rule: benzene                    related to gasoline—benzene, 1,3-                     requirement. It allows for a more
     emissions performance and toxics                        butadiene, acetaldehyde, formaldehyde                 comprehensive approach to capping air
     emissions performance. The Agency did                   and POM. Benzene emissions are about                  toxics emissions at current levels. By
     not propose a toxics performance form                   70 percent of the total mass of these                 focusing on the five toxic compounds
     because of concerns that capping the                    toxics, but all of these toxics are known             modeled by the Complex Model instead
     total mass of toxics would allow                        or probable human carcinogens and                     of only benzene, the mass emissions of
     benzene emissions to potentially
                                                             pose a risk to public health and welfare.             air toxics placed under anti-backsliding
     increase if other air toxics declined.
                                                             Benzene emissions are a function of                   constraints is substantially increased.
     However, subsequent refinery modeling
                                                             benzene fuel content, but other                       Also, by focusing on emissions instead
     showed that benzene emissions would
                                                             components in the fuel also influence                 of fuel content, the new rule will
     be unlikely to increase in the future
                                                             benzene emissions, such as total                      establish an appropriate performance
     following implementation of RFG Phase
     II and Tier 2 low sulfur gasoline                       aromatics, sulfur, and Reid Vapor                     requirement while simultaneously
     standards, and the proposed low sulfur                  Pressure. Controlling the benzene                     providing some additional flexibility to
     diesel standards. We viewed a benzene                   content of RFG and CG would in effect                 regulated entities. Finally, it offers
     emissions requirement as tantamount to                  control only a portion of the benzene                 broader protection to public health
     a benzene content requirement, but                      emissions, which in turn are only a                   because all five toxics included in the
     more difficult to quantify and enforce                  portion of total toxic emissions. The                 toxics performance requirement are
     because there is not currently such a                   Agency is concerned ultimately with                   known or probable human carcinogens.
     rule in effect.                                         reducing ambient concentrations and                      Section 202(l)(2) of the Clean Air Act
        We received a significant number of                  exposure to air toxics.                               instructs the Agency to promulgate
     comments on this proposal during the                                                                          regulations that, at a minimum, apply to
                                                                The costs related to a benzene content             emissions of benzene and
     public hearing and in written comments                  standard were calculated using a
     submitted to the Agency. In general,                                                                          formaldehyde. The shift to a toxics
                                                             refinery model. The Agency found that                 emissions performance requirement will
     commenters from the petroleum
                                                             a benzene content standard would                      limit emissions of these two pollutants
     industry stated that there are significant
     costs associated with the benzene                       impose aggregate annual costs                         along with emissions of 1,3-butadiene,
     content form of the rule. These same                    (including amortized capital and all the              POM and acetaldehyde. Thus, while
     commenters pointed out that there was                   operating costs) of $74 million for                   refiners will have the ability to adjust
     little environmental benefit to the                     refineries in PADDs I, II, and III. On a              fuel parameters in ways that will
     proposed requirements to justify their                  per gallon basis, the annual cost of the              increase the emissions of one or more of
     costs. Others commented that the                        proposed benzene content standard was                 these pollutants, any such increase must
     Agency’s concern about benzene                          predicted to be 0.0702 c/gal. Since                   be offset by reductions in the emissions
     emissions would be better served by a                   gasoline production in PADDs I, II, and               of the other pollutants.
     performance requirement since there is                  III represents about 91% of the national                 All of the pollutants covered by the
     expected to be upward pressure on                       gasoline supply without California                    toxics performance control are
     aromatics due to future environmental                   refiners, if we extrapolate this cost to              carcinogens. The nationwide
     regulations and capping benzene fuel                    the rest of the U.S., the aggregate cost              inventories and ambient concentrations
     content will not prevent increases in                   would be approximately $81 million for                of all of these five pollutants are heavily
     fuel aromatics. Several commenters                      the nation. California gasoline                       influenced by motor vehicle emissions.
     found that the rule did not go far                      production is not included in this cost               Without today’s anti-backsliding
     enough to protect public health and                     analysis because this regulation does                 program, the current standards would
     welfare from the potential risk from                    not apply to California gasoline.                     leave room for toxics emissions from
     mobile source air toxics.                                                                                     gasoline-fueled motor vehicles to
                                                                It is important to note that there are             increase by 70,000 tons per year (based
        In response to these comments, and                   some advantages related to fuel content
     based on refinery modeling performed                                                                          on 1996 inventory levels) as described
                                                             standards. Compliance and enforcement                 in the Technical Support Document.
     for this rulemaking, the Agency will
                                                             are aided by the ability to test the fuel             This would amount to a 14% increase,
     finalize a toxics performance
                                                             rather than relying on estimates derived              on average, in RFG areas, and a 18%
     requirement instead of a benzene
                                                             from a model. A fuel content standard                 increase, on average, in CG areas.
     content requirement. The Agency’s
                                                             does not rely on an emissions model                   Capping the overall toxics emissions
     general rationale is twofold: a toxics
                                                             that may not fully estimate emissions                 performance of gasoline to reflect
     performance requirement captures a
     larger amount of the overcompliance                     from the vehicle fleet on the road today              current overcompliance is an
     with the existing standards while                       or in the future. Thus the decision to                appropriate means of addressing the
     imposing less costs on the refining                     shift from a fuel content to an emissions             potential adverse public health impacts
     industry than the proposed benzene                      based requirement in this rule should                 that could occur if this backsliding from
     content requirement. This action is                     not be viewed by the reader as                        current levels were to occur. While we
     consistent with comments received from                  suggesting that the Agency in a general               are not able to quantify the risk to
     the regulated industry and the Agency’s                 sense is no longer interested in controls             public health that would result if
     updated refinery modeling.                              on specific fuel components. It is simply             backsliding were to occur, we believe a
                                                             in this particular case that we found an              precautionary approach is appropriate.
     Evaluation of a Benzene Content                         emissions performance requirement to                  By adopting anti-backsliding controls,
     Standard                                                be superior under a combined                          this precautionary approach will protect
       The Agency evaluated the benzene                      consideration of broader environmental                public health by reducing the potential
     content standard in terms of its                        benefits and lower costs.                             risks to public health from backsliding.


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        The Act also instructs the Agency to                            3. What Are the Benefits of the TPR?                             a toxics emissions performance standard
     take costs into consideration. As stated                                                                                            for RFG, and an anti-backsliding toxics
     previously, numerous petroleum                                        The purpose of today’s action is to                           standard for conventional gasoline
     refineries provided written testimony                              prevent future increases above the
                                                                                                                                         based on 1990 baseline toxics levels for
     that a benzene content requirement                                 current level of air toxic emissions
                                                                                                                                         each refinery. On average, refineries
     would impose significant costs on the                              derived from existing fuel properties.
                                                                        This anti-backsliding measure will                               have overcomplied with the toxics
     industry. The Agency conducted                                                                                                      emissions performance standards for
     refinery modeling for this rule which                              ensure that mass emission rates (in
                                                                        milligrams per mile, mg/mi) of air toxics                        both RFG and CG. Table V–1 compares
     accounted for the impact on refinery                                                                                                the percent reductions required for RFG
     operations and fuel properties of Tier 2                           from motor vehicles do not increase
                                                                        while the Agency gathers additional                              Phase I and the national average CG
     low sulfur gasoline and low sulfur
                                                                        information for a forthcoming                                    mass toxics emissions with actual
     diesel fuel. This modeling analysis,
     discussed in more detail in the TSD,                               rulemaking in 2003–2004.                                         national average performance in 1998,
     found that the costs associated with the                              The Clean Air Act identified five air                         which was the most recent year for
     benzene content requirement were                                   toxics in the federal reformulated                               which complete and accurate data was
     significantly higher than the costs that                           gasoline program: benzene, 1,3-                                  available. On a national average, greater
     a toxics performance requirement would                             butadiene, formaldehyde, acetaldehyde,                           overcompliance was experienced for
     impose on the industry.                                            and POM. The RFG program established                             RFG than for CG.

                           TABLE V–1.—OVERCOMPLIANCE WITH TOXICS PERFORMANCE STANDARDS FOR RFG AND CG
                                                                                                                                                                                    Percent
                                                                                                                                                                                 difference in
                                                                                                          Phase I Standards                     1998 Average                      emissions
                                                                                                                                                                                   (Percent)

     RFG, Percent Reduction from statutory baseline, ..............................                   16.5% reduction .............      28.1% reduction .............      15%
     Total Toxics Performance (equivalent mg/mi) ....................................                 (45.3 mg/mi) ...................   (38.4 mg/mi) ...................

     CG, Mass Emissions, ..........................................................................   47.3 mg/mi a ...................   44.7 mg/mi .....................   6%
     Exhaust Toxics Performance
       a Volume-weighted          average of refinery-specific standards.


        The 1998 average values were based                              reaction to unforeseen future                                    announced, on March, 2000, the
     on volume-weighted toxics performance                              circumstances.                                                   Administration’s legislative principles
     values for batch reports for all refineries                                                                                         for protecting drinking water supplies,
                                                                        4. What Are the Costs of the TPR?
     in the U.S. which produced gasoline in                                                                                              preserving clean air benefit and
     1998. The data available to us at this                               In conjunction with this rulemaking,                           promoting renewable fuels and urged
     time does not allow us to account for                              we analyzed refinery modeling results                            Congress to take action consistent with
     the impact of imports on these                                     for gasoline production regions in the                           these principles. These actions were
     nationwide average values. The values                              Atlantic and Gulf Coasts, specifically                           based initially on recommendations of
     in Table V–1 differ slightly from those                            PADDs 20 I and III. This modeling                                EPA’s Blue Ribbon Panel on Oxygenates
     in the NPRM because we excluded                                    analysis used the average regional                               in Gasoline.
     noncomplying refineries from the                                   gasoline fuel properties produced in                               The Agency recognizes that the use of
     analysis and volume-weighted only                                  1999 to quantify the emissions
                                                                                                                                         MTBE does have an impact on
     actual emissions in units of mg/mi                                 performance of gasoline in these regions
                                                                                                                                         emissions of toxic air pollutants from
     instead of percent change values for                               in 1999. The refinery modeling also
                                                                                                                                         motor vehicles. The Blue Ribbon Panel
     each refinery.                                                     predicted the likely regional fuel
                                                                                                                                         found that present toxic emission
                                                                        properties after refineries modified their
        Overcompliance with RFG standards                                                                                                performance of RFG can be attributed, to
                                                                        operations to comply with the future
     resulted in substantial toxics reductions                                                                                           some degree, to the use of oxygenates.
                                                                        requirements for Phase II RFG, Tier 2
     beyond what was required by law. We                                                                                                 Further, the Panel recommended that
                                                                        low sulfur gasoline, and proposed low
     have estimated reductions in the total                                                                                              any future change in the use of MTBE
                                                                        sulfur diesel fuel (hereafter future fuel
     toxics inventories due to                                          regulations). The Agency applied the                             in gasoline should ‘‘ensure that there is
     overcompliance of 70 thousand tons in                              Complex Model to evaluate the                                    no loss of current air quality
     1996 and 40 thousand tons in 2007,                                 projected emissions performance of the                           benefits.’’ 21 The anti-backsliding nature
     using the inventories from the 1999 EPA                            predicted gasoline properties in these                           of this rulemaking is consistent with the
     Motor Vehicle Air Toxics Study (see                                regions. The reader should refer to the                          Panel’s recommendations. Should the
     TSD). While we do not believe that                                 TSD which accompanies this rule for                              Agency take action in the future to limit
     refiners are likely to increase their                              more detailed discussion of the refinery                         the amount of MTBE in fuel, its impact
     toxics content in the absence of this                              modeling.                                                        on emissions of air toxics—and the
     regulation, it is nonetheless important to                           The Agency is currently pursuing a                             potential for additional costs due to
     ensure that these benefits are                                     separate rulemaking under the Toxic                              today’s action—would be carefully
     maintained in the event of unforeseen                              Substances Control Act (TSCA) to                                 considered. As EPA develops any
     circumstances that may otherwise result                            address the use of MTBE, and thus we                             regulatory actions to address MTBE and
     in backsliding on toxics standards up to                           have deferred consideration of MTBE                              water resource issues, the Agency will
     existing legal limits. Without this                                controls to that rulemaking. Note that                           consider the overall impact on the
     regulation, such backsliding could occur                           the EPA and the United States
                                                                                                                                            21 Achieving Clean Air and Clean Water: The
     if refineries increase benzene or                                  Department of Agriculture jointly
                                                                                                                                         Report of the Blue Ribbon Panel on Oxygenates in
     aromatics to increase octane levels, or if                                                                                          Gasoline, EPA420–R–99–21, September, 1999, at 6–
     they change their refinery operations in                              20 Petroleum    Administration for Defense Districts.         7.


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     refining industry of any such action                    B. Issues and Areas of Comment on                        Because we are promulgating toxics
     and, along with today’s rule, and other                 Non-implementation Related Aspects of                 performance requirements that are
     relevant factors.                                       the Program                                           identical in form to the toxic
        Because the new baseline                                                                                   performance standards already in place,
                                                             1. What Is the Relationship Between the
                                                                                                                   today’s rule does not change the ability
     requirements do not require refiners to                 RFG and Anti-dumping Requirements
                                                                                                                   of States to regulate gasoline
     install new equipment or use new                        and the Toxics Anti-backsliding
                                                                                                                   characteristics or components. As
     technologies beyond what they were                      Requirements?
                                                                                                                   discussed in the NPRM, we believe a
     using in the baseline period (1998–                        The reformulated gasoline program                  toxics performance requirement may not
     2000), this program imposes only                        established a toxics performance                      cause States to be prohibited by section
     negligible costs. This conclusion is                    standard for gasoline used in those                   211(c)(4) of the Act from setting their
     based on our analyses of likely refiner                 metropolitan areas with the worst ozone               own fuel benzene standard. Note that
     behavior based on the expected                          levels. An anti-dumping toxics standard               any such State fuel benzene standard
     requirements in the time frame                          was established for gasoline used in                  could only be set for conventional
     applicable for this rulemaking.                         those areas not required to have RFG                  gasoline because the reformulated
     Unforeseen circumstances could change                   and which did not opt to use RFG. The                 gasoline regulations impose a federal
     a refiner’s actions needed to comply                    anti-dumping toxics standard was                      benzene standard on RFG, thus
     with this rule, which in turn could lead                intended to prevent refineries from                   preempting States from setting a more
     to additional costs depending on their                  shifting certain less desirable fuel                  stringent RFG benzene standard.
     chosen course of action.                                components into the conventional                         EPA recognizes the concerns
                                                             gasoline pool as a result of RFG                      expressed by the petroleum industry
        In contrast, the proposed benzene                    production. The anti-dumping program                  that a patchwork of different state fuel
     content standard was predicted to                       was an anti-backsliding program for                   standards, sometimes referred to as
     impose higher costs while capturing a                   exhaust toxics and NOX relative to the                ‘‘boutique’’ fuels, may increase the
     smaller amount of the existing                          baseline year of that program, 1990.                  likelihood of disruptions in the fuel
     overcompliance with toxic standards.                    Today’s anti-backsliding requirements                 supply. In most situations, EPA believes
     As stated previously, the Agency found                  are in addition to the applicable RFG or              that a uniform national program is the
     that a benzene content standard would                   anti-dumping requirements for gasoline.               best way to protect public health and
     impose aggregate annual costs                           Today we are establishing refinery-                   minimize disruption to the efficiency of
     (including amortized capital and all the                specific toxics performance                           the country’s fuel distribution network.
     operating costs) of $74 million for                     requirements (TPR) for reformulated                   EPA’s general expectation is that States
     refineries in PADDs I, II, and III. On a                and conventional gasoline. A refiner                  will consider these issues in evaluating
     per gallon basis, the annual cost of the                will now have to meet both today’s                    whether adoption of a state fuel program
     proposed benzene content standard was                   toxics requirements and the applicable                would be warranted.
     predicted to be 0.0702 c/gal. Since                     toxics performance for RFG or anti-
                                                             dumping.                                              2. How Are Incremental Production
     gasoline production in PADDs I, II, and                                                                       Volumes of RFG Affected by This Rule?
                                                                In the NPRM, we asked for comment
     III represents about 91% of the national
                                                             on repealing the anti-dumping program.                   In the NPRM, we proposed to apply
     gasoline supply without California                      We received comments from many                        the RFG requirements determined for
     refiners, if we extrapolate this cost to                refiners in support of this                           this final rule to those volumes of RFG
     the rest of the U.S., the aggregate cost                recommendation from the National                      up to the baseline volume of RFG. We
     would be approximately $81 million for                  Petrochemical & Refiners Association                  did not propose to extend the
     the nation. California gasoline                         (NPRA). However, we find that we                      requirements to incremental RFG
     production is not included in this cost                 cannot repeal the anti-dumping                        production volumes, but asked for
     analysis because this regulation does                   program. The anti-dumping program is                  comment on the appropriate
     not apply to California gasoline.                       required by the Clean Air Act and we                  requirements to apply to a refinery’s
        There are limitations to the ability of              cannot ensure that today’s requirements               incremental volume of RFG.
     a refinery model to predict the costs                   and the Tier 2 gasoline sulfur                        Incremental volume of RFG means that
     associated with each refinery. This                     requirements will exactly duplicate the               amount of RFG produced in a calendar
     inherent limitation of refinery modeling                anti-dumping program. For example, the                year above the RFG annual average
                                                             gasoline sulfur standards do not                      baseline (1998–2000) volume of the
     is of particular concern with the
                                                             guarantee that all conventional gasoline              refinery. Based on projections of vehicle
     refinery-specific requirement that is
                                                             will meet the individual NOX                          miles traveled (VMT), RFG demand is
     adopted today. To help ensure that each                 performance standards because some                    expected to increase about 1.5% per
     refinery affected by this rule is faced                 anti-dumping individual baselines have                year.
     with the type of costs estimated by the                 even lower average sulfur levels than                    We sought comment on two
     Agency’s refinery modeling, we                          the gasoline sulfur program will require.             approaches for regulating the
     incorporated several flexibilities into                 Additionally, the flexibilities provided              incremental RFG volume. The first
     the final rule. We have expanded the                    in today’s rule, such as deficit and                  would be to apply the individual
     baseline period from two to three years,                credit carryforward, could cause the                  refinery requirement to the incremental
     provided a one-year carryforward for                    anti-backsliding toxics emissions                     volume, in effect subjecting all of a
     credits and deficits, and adopted                       performance to exceed the anti-dumping                refinery’s annual RFG production to its
     compliance margins for RFG and CG.                      toxics performance requirement in a                   individual baseline under today’s
                                                             given year. Nonetheless, we understand                program. The other would be to apply
                                                             the refiners’ concerns on this issue, and             a non-individual requirement to the
                                                             we will take steps to ensure that the                 incremental volume. This could be a
                                                             compliance process, including any                     national control level based on the
                                                             reporting requirements, is as                         current national average toxics
                                                             streamlined as possible.                              performance of RFG (or some less


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                                17249

     stringent level), but would not be less                 of both CG and RFG, because                           short-term difficulties due to supply or
     stringent than the applicable standard                  incremental volumes are primarily a                   operational problems. We believe these
     under the RFG program.                                  function of growth in demand for                      flexibilities are sufficient to preclude
        Many refiners did not want the                       gasoline, which affects both CG and                   significant negative impacts of this rule
     incremental volume of RFG subject to                    RFG. However, requiring refiners to                   on both small and large refiners.
     any controls (i.e., the individual refinery             meet a more stringent toxics standard
     baseline or the national average                                                                              4. Is This rule Expected to Constrain the
                                                             for these incremental volumes could
     baseline) other than the current                                                                              Potential for Expanded Use of Ethanol
                                                             require additional capital investment
     applicable RFG standards. Some refiners                                                                       in Conventional Gasoline?
                                                             and thereby impose a constraint on
     commented that we should exempt                         incremental gasoline production. As a                    While refinery modeling to answer
     incremental volumes of CG from the                      result, we have decided to exclude                    this particular question has not been
     final requirements as well. DOE pointed                 incremental volumes from our anti-                    performed, the Agency does not believe
     out that future growth in gasoline                      backsliding program for both RFG and                  that the toxics performance requirement
     demand will likely be addressed                         CG.                                                   will constrain the potential for
     through increased imports as well as                       After consideration of these                       expanded use of ethanol in
     greater use of existing FCC units and                   comments on this issue and our analysis               conventional gasoline. If ethanol is used
     reformers, all of which would likely                    of incremental production volumes, we                 in conventional gasoline at ten percent
     increase the toxic emission                             are finalizing a program in which the                 by volume, gasoline components such
     characteristics of all gasoline, be it RFG              toxics performance requirements                       as aromatics, benzene and olefins will
     or CG.                                                  finalized today will not apply to                     be diluted by ten percent, thus lowering
        This rulemaking contains several                     incremental volumes of RFG or CG. Any                 associated toxic emissions. Ethanol does
     unique factual circumstances that bear                  volumes of gasoline that are above a                  have the effect of increasing exhaust
     on this issue. The Agency has a strong                  refinery’s baseline volume will thus be               emissions of acetaldehyde, but
     interest in creating incentives, and not                subject only to the existing toxics                   acetaldehyde contributes only about 6
     creating disincentives, for refiners to                 standards under either the RFG or anti-               percent to the mass of five toxics air
     produce additional barrels of cleaner-                  dumping programs. For RFG,                            pollutants used in the Complex Model
     burning RFG in the future. Placing new                  incremental volumes will remain                       to model toxics performance (benzene,
     constraints on incremental RFG                          subject to the current 21.5 percent                   1,3-butadiene, formaldehyde,
     production may unnecessarily hamper                     standard for total toxics given in 40 CFR             acetaldehyde, and POM).22 Thus even a
     the expanded use of RFG and its                         § 80.41(f). Incremental volumes of CG                 relatively large increase in acetaldehyde
     associated air quality benefits.                        will remain subject to the current CG                 emissions should be offset by a ten
        Gasoline production in the United                    requirements for exhaust toxics                       percent decrease in more than 90
     States is expected to increase by about                 emissions. For those refineries or                    percent of the remainder of toxic
     1.5 percent per year for the next several               importers that are unable to establish a              emissions.
     years. In the few years between                         volume baseline for 1998 to 2000 either
     promulgation of this rule and the                                                                             5. Is Diesel Fuel Control a Part of
                                                             because they were not operating during
     reevaluation in 2003–2004, incremental                                                                        Today’s Regulation?
                                                             that period, or did not exist as a refining
     volumes will only account for a small                   or importing facility, the applicable                    The fuel controls being set in today’s
     fraction of total US gasoline production                standard shall be the 1998–2000                       action are only for gasoline. We are not
     and consumption. Such a small fraction                  national average toxics performance for               setting air toxics requirements for diesel
     is unlikely to have a material effect on                RFG and CG. We believe this approach                  fuels because, unlike for gasoline, we do
     the anti-backsliding goal of this rule.                 ensures that increasing gasoline demand               not have data that would allow us to
        Moreover, to determine the potential                 can be addressed without requiring                    correlate individual diesel fuel
     effect of excluding incremental volumes                 additional toxics reductions that might               properties with toxics emissions. We do
     from this regulation, we investigated the               not be achievable under Section                       not have a model to explore the toxics
     historical impact of volume increases on                202(l)(2) in the near-term.                           impacts of different diesel fuel
     fuel benzene content for RFG and CG.                                                                          formulations and therefore, a diesel fuel
     Pool-average benzene levels in CG did                   3. Does This Rule Contain Any Small                   reformulation program, similar to the
     not show a statistically significant                    Refiner Provisions?                                   reformulated gasoline program, is not a
     increase. While pool-average RFG did                       We did not have a SBREFA panel for                 viable toxics control option. We intend
     show a statistically significant increase               this rule because we believe this rule                to include research on diesel fuel-
     when production volume increased, the                   will not have a significant impact on a               related air toxics in our Technical
     increase was small—on the order of an                   substantial number of small refiners. At              Analysis Plan.
     increase of 0.005 benzene volume                        the same time, however, we are
     percent per 1 percent total volume.                     sensitive to small refiner concerns about             C. What Are the Components of the
     Thus the incremental volume exclusion                   their ability to meet these anti-                     Anti-backsliding Toxics Performance
     is unlikely to have a material impact on                backsliding requirements. Nevertheless,               Program?
     air toxic emissions from gasoline. See                  we believe that no small refiner                      1. Start Date
     the Technical Support Document for                      provisions are needed in this rule for
                                                                                                                      We are finalizing the January 1, 2002,
     details.                                                two reasons. First, because this is an
                                                                                                                   program start date as proposed. Because
        While our analysis focused only on                   anti-backsliding measure, refiners are
                                                                                                                   this is an anti-backsliding program, lead
     fuel benzene content, there is some                     not expected to have to install new
                                                                                                                   time is not needed to install hardware
     reason to believe that other changes in                 equipment or change their operations to
                                                                                                                   or make operational changes. Thus,
     fuel properties associated with                         comply with the requirements. Second,
                                                                                                                   beginning with the 2002 calendar year,
     incremental volumes (e.g., increases in                 we included a number of flexibilities in
                                                                                                                   a refinery’s or importer’s annual average
     sulfur and olefins) may contribute to                   this program, such as deficit and credit
     some toxics emissions. These                            carryforward, and a compliance margin.                  22 The estimated acetaldehyde contribution of 6.4
     incremental volumes could affect both                   These flexibilities will help those small             percent was based on a Complex Model output from
     the fuel properties and toxics emissions                refiners that may experience temporary                1998 production of CG.



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     toxic emissions performance,                            expect significant differences, on                    CG standard as its toxics emission
     determined separately for RFG and CG,                   average, between a baseline established               performance value for gasoline
     cannot exceed its baseline toxics                       using the 2-year averaging approach and               produced that year in its baseline
     emissions performance, determined                       one developed using the 3-year                        determination.
     over the three years 1998–2000. The                     approach. However, we believe that for                   Baselines must be submitted no later
     first report associated with today’s rule               an individual refinery, the 3-year                    than June 30, 2001. Though we
     will be due February 28, 2003, the same                 averaging approach provides that                      proposed to notify refiners of their
     date as the reformulated gasoline and                   refinery with a more robust baseline.                 toxics baselines within 120 days of
     anti-dumping reports are due for                        Finally, given that this rule does not                submittal, after further consideration we
     calendar year 2002.                                     require any capital improvements or                   are modifying this provision slightly
                                                             operational changes by refiners to                    from the proposal: we will notify
     2. Separate Compliance Determination
                                                             achieve its goals, and since refiners will            refiners and importers of their baseline
     for RFG and CG
                                                             have the 2000 data, we believe this data              approvals by October 31, 2001, or
        As discussed in the NPRM, our                        should be included in the baseline                    within 4 months of submittal,
     proposal to keep compliance separate                    determination.                                        whichever is later.
     for RFG and CG under this program is                      We are requiring that refiners and
     consistent with the current treatment of                importers submit to us information                    4. Baseline Adjustment
     these two fuel types in the RFG and                     which establishes separate TPR                           In response to the proposed benzene
     anti-dumping programs. Separate                         baselines for their RFG and CG. For                   content requirement, one commenter
     compliance determinations for RFG and                   RFG, the applicable TPR baseline is                   suggested that a refiner that has a low
     CG ensure that one pool is not made                     total toxics emissions, calculated as a               baseline benzene level (because it
     cleaner at the expense of the other. No                 percent reduction from the statutory                  produced benzene for the petrochemical
     supporting arguments for combining the                  baseline. For CG, the applicable TPR                  market during the baseline period)
     pools were provided in the comments.                    baseline is exhaust toxics emissions, in              should be able to increase its baseline
     Thus, we are finalizing this provision as               mg/mile. Both baselines are determined                benzene level to some minimum
     proposed.                                               using the Complex Model. These forms                  benzene level which would be set by
     3. Baseline Development and Submittal                   of the TPR are consistent in form with                EPA. Because we have switched to a
                                                             the existing toxic emission requirements              TPR for this final rule, this regulation
        We proposed a two-year baseline                      of the reformulated gasoline and anti-
     period, 1998–1999, and requested                                                                              does not directly affect on fuel benzene
                                                             dumping programs.                                     content. Nonetheless, we can address
     comment on this and other baseline                        The baseline submittal must contain
     period options. There were many                                                                               the issue raised by the commenter since
                                                             the batch report number and volume of
     comments on this issue. Many                                                                                  it is relevant, in a broad sense, to the
                                                             each batch (or composite) of gasoline
     commenters expressed concern about                                                                            baseline setting process.
                                                             produced or imported in 1998, 1999 and
     refinery fluctuations during a given time               2000. Additionally, the refiner or                       In general, we do not believe that EPA
     period which could cause a baseline not                 importer must determine and report the                should allow baselines established
     to reflect typical operations. Many                     applicable toxics emission performance                under this rule to be adjusted because
     commenters suggested that we should                     level of each batch by evaluating the                 of refining or marketing decisions of the
     provide flexibility in the baseline setting             measured fuel parameters of each batch                refiner. It is our belief that, in general
     process. Several individual refiners and                in the appropriate seasonal version of                (and absent refinery disasters or other
     one industry commenter suggested                        the Phase II Complex Model. Because                   similar, critical events), during the
     lengthening the baseline period to                      this data is already required to                      baseline period, every refinery was
     encompass more refinery operational                     demonstrate compliance with RFG and                   operating to maximize profits,
     fluctuations, thus establishing a more                  anti-dumping requirements, a refiner                  considering its crude slate, operating
     accurate baseline that is true to normal                must simply submit the same                           units, product mix, marketing plan, etc.
     operations.                                             information found in its original                     With regard to refineries that achieved
        In the final rule, we are finalizing a               submittals of its RFG and anti-dumping                low emissions levels due to benzene
     three year baseline period,                             reports. Submissions of these baselines               extraction, we do not believe there is
     encompassing the years 1998, 1999 and                   will be very similar to the streamlined               any basis for expecting the benzene
     2000. This baseline period, which is one                electronic process which has been                     market to change in such a way that
     year longer than the baseline period we                 implemented for Tier 2 gasoline sulfur                warrants setting a minimum toxics
     proposed, provides baseline values                      baseline submissions. The Agency will                 performance level. In fact, projections of
     which are truer to a refinery’s ‘‘normal’’              handle the toxics baselines under                     the benzene market suggest continued
     operating mode. Though two                              today’s program in a manner consistent                growth (see TSD).
     commenters opposed inclusion of 2000                    with the submissions and associated                      In addition, because we are
     because it was a transition year (from                  guidance for Tier 2 sulfur baseline                   promulgating a TPR, which is a function
     Phase 1 to Phase 2 RFG requirements)                    submissions.                                          of all of the fuel parameters evaluated
     and, according to these commenters, not                   Finally, all of the toxics emissions                by the Complex Model, and not a single
     representative of refinery operations                   performance of RFG and CG produced                    fuel parameter requirement (like a fuel
     over time, we believe that including                    over the 3-year baseline time period                  benzene content requirement), it is not
     2000, precisely because it is a Phase II                must be volume-weighted to determine                  clear how we would set such a
     RFG year, improves the baseline                         the baseline toxic emission performance               minimum toxics emission level to
     because it adds data to the baseline                    levels for RFG and CG. The average                    account for changes in the
     determination which is the most recent                  annual volume over the 3-year baseline                petrochemical market. We would have
     available. Including 2000 also helps to                 time period must also be reported. A                  to consider each of the eight Complex
     further offset (by virtue of a 3-year                   refinery which exceeded (that is, was                 Model fuel parameters separately, and
     average versus a 2-year average) the                    out of compliance) with the applicable                this would be complicated by the fact
     effects of unit turnarounds at the                      toxics standard in any of the baseline                that the fuel parameters’ effects on
     refinery. At the same time, we do not                   years must use the applicable RFG or                  toxics emissions vary considerably.


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        Nonetheless, we are allowing a refiner               were compared against their respective                importer’s compliance determination. A
     to petition EPA for a permanent                         regulatory limits. A statistical analysis             foreign refiner with both an individual
     adjustment of its TPR baseline. Refiners                was performed to quantify the                         anti-dumping baseline and an
     requesting such an adjustment must                      difference between the regulatory                     individual toxics anti-backsliding
     demonstrate how circumstances during                    standard and the actual emissions                     baseline must make a single designation
     1998–2000 materially affected the                       characteristics of the fuel. This                     for the batch. In other words, if the
     baseline toxics determination. Because                  difference is commonly referred to as a               foreign refiner includes that batch in its
     we believe that the deficit and credit                  ‘‘compliance cushion.’’ A more detailed               own anti-dumping compliance
     carryforward, compliance margin, and                    discussion of the methodology used to                 determination, it is also included in its
     inclusion of a third baseline year                      determine the values of the compliance                anti-backsliding compliance
     sufficiently consider and minimize the                  margins associated with today’s rule is               determination. In this way, foreign
     potential compliance burden for those                   located in the TSD.                                   refiners are treated in the same manner
     refiners that experience unusual                           The compliance margin we                           as domestic refiners, and the potential
     refinery operational issues, we expect                  determined for RFG toxics performance                 compliance confusion surrounding
     that the number of baseline adjustments                 is 0.7%. Thus, for example, if refinery               different designations on a single batch
     will be small. Baseline adjustments will                X has a volume-weighted RFG total                     are avoided.
     likely be limited to those refineries that              toxics performance during 1998–2000 of
                                                             ¥29.6% (percent change from the                       7. Default Baseline and Applicability
     experienced unexpected operational
     problems during the baseline period                     statutory baseline), without a                           The default toxics anti-backsliding
     which could not have been avoided                       compliance margin ¥29.6% is its anti-                 baseline is the set of values used by a
     through due diligence and planning.                     backsliding requirement. With a                       regulated party that has insufficient data
                                                             compliance margin of 0.7%, refinery X’s               from which to establish a unique
     5. Compliance Margin                                    anti-backsliding requirement becomes                  individual anti-backsliding baseline. In
        A compliance margin refers to the                    ¥28.9%, that is, its requirement                      the proposal, we discussed that a refiner
     cushion refiners typically included in                  becomes slightly less stringent as a                  or importer with less than 12
     their fuel production to ensure that their              result of including the compliance                    consecutive months of applicable data
     fuel will meet compliance requirements                  margin. Thus, under this program,                     during the baseline period would have
     over a 12-month period. Without such a                  refinery X’s RFG must have an annual                  the default anti-backsliding baseline as
     cushion, the refiner could fall into                    average total toxics emissions reduction              its individual baseline under this
     noncompliance due to minor                              from the statutory baseline of at least               program. We are finalizing this
     operational problems. Compliance                        28.9%.                                                provision as proposed. Additionally, a
     margins are most important to a refiner                    EPA determined a compliance margin                 refiner or importer which did not
     when trying to meet a per-gallon                        of 2.5 mg/mile for CG. Thus for refinery              produce or import one or more types of
     requirement, but can also be useful for                 Y with a volume-weighted CG exhaust                   gasoline (either RFG or CG) during the
     meeting averaging requirements, for                     toxics performance during 1998–2000 of                baseline period but who produces or
     example, to account for test method                     105.0 mg/mile, including the                          imports that type of gasoline after
     variability, or other factors that might                compliance margin increases its CG                    December 31, 2000 will have the
     affect a refiner’s ability to comply.                   anti-backsliding toxics requirement to                applicable default toxics anti-
        Though we did not propose to include                 107.5 mg/mile. Thus, for refinery Y’s                 backsliding baseline; it will be subject to
     a compliance margin on the fuel                         CG, its annual average exhaust toxics                 the default toxics baseline plus the
     benzene content requirement in our                      emissions must be no greater than 107.5               compliance margin for that type of
     NPRM, additional information gleaned                    mg/mile.                                              gasoline.
     from refinery modeling and comments                                                                              The default baseline consists of a
     has led us to include a compliance                      6. Foreign Refiner Provisions                         reformulated gasoline total toxics
     margin on the TPR being finalized                          Under the anti-dumping program,                    emissions performance value (measured
     today. Though refinery modeling shows                   foreign refiners are allowed to develop               as a percent reduction from statutory
     that post-2004 RFG total toxics and CG                  an individual baseline representing the               baseline) and a conventional gasoline
     exhaust toxics emissions in PADDs I                     quality and quantity of gasoline they                 exhaust toxics emissions performance
     and III will, on average, be lower than                 shipped to the U.S. in 1990. Those that               value (measured in mg/mile). The final
     during the baseline period, the                         develop an individual baseline can                    default baseline will be the average of
     difference is not large enough to ensure                designate each batch of gasoline                      all of the reported applicable (i.e., RFG
     that refiners won’t have to go beyond                   destined for the U.S. as subject to their             or CG) toxics emissions performance
     what our anti-backsliding requirements                  individual requirement or, by default, as             values over the baseline period 1998
     strictly call for. Also, at this time, we do            subject to the importer’s anti-dumping                through 2000. However, since the 2000
     not know whether the lower toxics                       requirement, which in most cases is the               annual compliance reports are not due
     emissions predicted by refinery                         statutory baseline.                                   from refiners and others to EPA until
     modeling is true of gasoline in the other                  A similar provision is included in this            February 2001, we will not be able to
     PADDs. Thus we believe that a                           rule. Under this rule, a foreign refiner              determine a default set of baseline
     compliance margin is needed to ensure                   may develop a toxics anti-backsliding                 values which corresponds to our
     that this rule is achievable in the near                baseline for gasoline it sent to the U.S.             baseline period (1998–2000) until later
     term.                                                   during the baseline period (1998–2000)                in 2001. At that time, we will issue the
        We are instituting separate                          if it already has an individual anti-                 final default baseline.
     compliance margins for RFG and CG                       dumping baseline or is simultaneously                    At this time, we have calculated draft
     because of the different format in which                developing such a baseline. For                       default baseline values based on 1998–
     compliance with the applicable                          compliance purposes, it may then                      1999 RFG and CG reports; these interim
     requirement is determined. EPA                          designate, on a batch-by-batch basis,                 default baseline values are 26.01%
     examined batch data from selected                       whether that gasoline will be subject to              (reduction from statutory baseline) for
     refineries in 1998. The toxic emission                  its individual anti-backsliding                       RFG and 92.14 mg/mile for CG,
     properties of each batch of RFG and CG                  requirement or will be included in the                representing compliance under the


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     Phase II Complex Model. As discussed                    overcompliance will be creditable for                 economic benefit from the waiver; and
     in the TSD, we do not expect the final                  purposes of a credit carryforward only                that it will meet its toxics anti-
     default baseline to be significantly                    to the extent that it is overcompliance               backsliding requirements as
     different from these values. Until the                  beyond the compliance margin. The                     expeditiously as possible. The refiner
     final default baseline is issued by EPA,                overcompliance credits may not be                     must also show that it will be unable to
     the draft default baseline values plus the              traded to another company, and they                   meet its toxics anti-backsliding
     compliance margins discussed above                      expire at the end of the next calendar                requirements even considering the
     (26.71% reduction from statutory                        year.                                                 deficit and credit carryforward
     baseline for RFG and 94.64 mg/mile for                     We have provided refiners with                     flexibility provisions included in
     CG) are the requirements for those                      compliance flexibility in several                     today’s program.
     subject to the default baseline under this              forms—deficit and credit carryforward,
     Subpart. Even though the default                        a compliance margin, and extended                     10. California Gasoline
     baseline represents only two of the three               baseline time period. In the NPRM, we
     baseline years, we believe it is                        discussed the possibility of including                   We are not requiring gasoline
     sufficient, in the absence of the 2000                  another flexibility in the form of a credit           intended for and actually used 23 in
     information, for two reasons. First, the                trading program. Comments about this                  California to be included in a refinery’s
     three year baseline period was                          option were mixed. Some refiners                      or importer’s compliance determination
     designated to better capture normal                     supported such a program, and offered                 under today’s rule. This action is
     operations at a refinery. In most cases,                other suggestions to enhance or clarify               consistent with other Agency actions on
     there are no normal operations to                       the program. At least one refiner did not             similar fuel issues. California gasoline is
     capture for an entity subject to the                    support such a program, saying it would               exempt from the recently promulgated
     default baseline. Second, we do not                     provide an unfair competitive                         federal gasoline sulfur requirements,
     expect a baseline determined using 1998                 advantage. Other industry commenters                  and while subject to the RFG and anti-
     through 2000 data to be significantly                   were unsure of the actual                             dumping provisions, California
     different from a baseline determined                    implementation and feasibility of the                 refineries have been exempted from
     using 1998 through 1999 data.                           program, given the unequal baselines                  several of the enforcement and
                                                             among refiners. Because of these                      compliance mechanisms of those
     8. Compliance Period and Deficit and                    implementation, feasibility and anti-                 programs.
     Credit Carryforward                                     competitive concerns, and because of                     Most of the gasoline used in
        In the proposal, we discussed                        the many other compliance flexibilities
     compliance periods of varying length                                                                          California is produced by California
                                                             provided in today’s program, we are not
     different from the proposed single                                                                            refineries which are subject to the
                                                             including a credit program as part of
     calendar year compliance period.                                                                              California Cleaner Burning Gasoline
                                                             this rulemaking.
     Refiners who commented on this issue                                                                          (CBG) requirements. The current (Phase
     supported either a one-year compliance                  9. Hardship Provisions                                2) set of CBG requirements began in
     period with deficit carryforward or a                      We are adopting a provision                        1996 and runs through 2002; beginning
     two-year compliance period. As                          permitting a refiner to seek a temporary              in 2003, the California Phase 3 gasoline
     discussed in the NPRM, a one-year                       waiver from the toxics anti-backsliding               requirements take effect. In 1998, under
     compliance period is consistent with                    requirements in certain circumstances.                the 0.8 vol% Phase 2 benzene standard,
     the compliance periods of other gasoline                Such a waiver will be granted at EPA’s                California refineries averaged 0.57
     programs (and thus represents minimal                   discretion. Under this provision, a                   vol%. For almost every fuel parameter,
     additional reporting burden for refiners                refiner may seek permission to exceed                 including benzene and aromatics, the
     and importers), and it is short enough                  its toxics anti-backsliding requirements              Phase 3 standards are more stringent
     that temporal variations in toxics                      based on the refiner’s inability to meet              than the Phase 2 standards. Given the
     emissions are minimized. For these                      these requirements because of extreme                 benzene overcompliance in 1998, and
     reasons, we are finalizing a one-year                   and unusual circumstances outside of                  the upcoming more stringent Phase 3
     compliance period as proposed.                          the refiner’s control that could not have             standards, it is likely that toxics
        We do realize, however, that even for                been avoided through the exercise of                  emissions under Phase 3 will not be
     an anti-backsliding program, unusual                    due diligence. This provision is similar              greater than toxics emissions under
     situations can happen which can                         to a provision in EPA’s RFG and                       Phase 2. Thus, we do not expect
     significantly affect refinery operations,               gasoline sulfur regulations. It is                    California refineries, on average, to
     and which could cause the refinery to                   intended to provide refiners limited                  backslide relative to their 1998–2000
     be out of compliance with its                           relief in unanticipated circumstances                 average toxic emission level.
     requirement. To this end, we proposed                   that cannot be reasonably foreseen at                 Additionally, given the compliance
     and are finalizing a one year deficit                   this time or in the near future. The                  margin we are including in today’s rule,
     carryforward. This will allow a refinery                conditions for obtaining such a waiver                it is highly unlikely that any backsliding
     to exceed its anti-backsliding toxics                   are similar to those in the RFG                       would exceed the combination of the
     requirement for one year. In the next                   regulations. These conditions are                     actual 1998–2000 baseline plus the
     year, it must make up the deficit as well               necessary and appropriate to ensure that              compliance margin.
     as be in compliance for that year.                      any waivers granted are limited in
     Additionally, though not proposed, we                   scope, and that a refiner does not gain                  Given this exemption for California
     are also including a one year credit                    an economic benefit from a waiver.                    gasoline, gasoline intended for use in
     carryforward. Under this provision, a                   Therefore, a refiner seeking a waiver                 California must be segregated from all
     refinery producing gasoline that is                     must show that the waiver is in the                   other gasoline.
     cleaner than required by its toxics anti-               public interest; that the refiner was not
                                                                                                                     23 By limiting the exemption to California
     backsliding requirement may use the                     able to avoid the nonconformity; that it
                                                                                                                   gasoline ‘‘actually used’’ in California, we generally
     overcompliance to cover any deficit in                  will make up, where practicable, the air              mean to limit where the gasoline is dispensed. We
     the following year. Because we are also                 quality detriment associated with the                 do not intend to restrict the state in which the
     providing a TPR compliance margin,                      waiver, that it will pay back any                     gasoline is actually combusted.



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     11. Territories                                         which reflect the greatest degree of                  term. We are not ready, however, to
        Though in the NPRM we did not                        emissions reductions achievable                       address these long-term controls in this
     discuss the applicability of this rule to               through the application of technology                 rulemaking. We need to collect the
     the American territories of Guam,                       that will be available, taking into                   information outlined in our Technical
     American Samoa and the Northern                         consideration existing motor vehicle                  Analysis Plan (see Section V), so that we
                                                             standards, the availability and costs of              can assess the costs and benefits of
     Mariana Islands, we have recently
                                                             the technology, and noise, energy and                 potential fuel controls. This information
     exempted gasoline for these areas from
                                                             safety factors. Today’s rule adopts an                will allow us to more accurately
     several requirements, including
                                                             anti-backsliding requirement that EPA                 consider the impact of our recently
     compliance with the anti-dumping
                                                             believes is appropriate under section                 promulgated, or proposed, fuel sulfur
     program. These areas are a significant
                                                             202(l)(2) as a near-term control, that is,            controls and assess how toxics controls
     distance from any gasoline producers,
                                                             a control that can be implemented and                 can be incorporated. As part of the
     and in the case of the anti-dumping
                                                             take effect within a year or two. We are              Technical Analysis Plan we will also
     requirements, could only be serviced
                                                             not adopting long-term controls (i.e.,                collect information, which is currently
     with complying gasoline at a significant
                                                             controls that require longer lead time to             lacking, on the availability and
     cost. Additionally, the air quality in                  implement) at this time because we lack               feasibility of further controls and the
     these areas is pristine, and gasoline                   the information necessary to assess                   risk posed to public health and welfare
     consumption is low, such that no                        appropriate long-term controls. We                    by air toxic hot spots.
     human health or environmental                           believe it will be important to address                  Based on our conclusion that the anti-
     detriment is expected from the                          the appropriateness of MSAT controls                  backsliding controls are reasonable
     exemption.                                              in the context of compliance with other               controls for the near-term, the fact that
        Likewise for today’s rule, requiring                 significant environmental regulations                 we lack information suggesting further
     gasoline destined for these areas to be                 (discussed below).                                    controls are appropriate in near-term,
     included in a refinery’s or importer’s                     Today’s rule addresses toxics                      and the fact that we are not ready to
     compliance determination would be of                    emissions from fuels in the near-term.                address long-term controls in this
     little value for several reasons. First, the            The rule will cap the toxics performance              rulemaking, we conclude that today’s
     same conventional gasoline cost and                     levels of gasoline beginning in 2002.                 anti-backsliding requirement satisfies
     supply issues discussed above would                     Adopting an anti-backsliding program is               the criteria of section 202(l)(2).
     apply. In addition to transportation                    a reasonable control on toxics emissions                 Section 202(l)(2) directs EPA to adopt
     costs, it is very expensive for a refinery              from fuels. The technology to maintain                toxics controls and from time to time
     to produce small batches of complying                   the current toxics performance of                     review and revise those controls.
     gasoline. Also, most of the refineries                  gasoline produced at each refinery is                 Today’s rule adopts near-term controls
     that produce gasoline for these areas are               already available and continued                       and puts EPA on a schedule to review,
     foreign refineries which have not                       compliance will not be costly even with               and if appropriate, revise those controls
     chosen to pursue individual baselines in                implementation of our recently adopted                in accordance with the criteria in
     other rules (e.g., the anti-dumping or                  sulfur controls (see discussion in                    202(l)(2). We note that the Agency has
     gasoline sulfur rules), and are not likely              Section V, and in Chapter 7 of the                    not prejudged the outcome of our 2003–
     to pursue an individual baseline for                    Technical Support Document).                          2004 rulemaking, and will evaluate the
     today’s rule. Thus, because of the                         We do not believe, however, that we                sufficiency of the controls and whether
     Agency’s precedent for exempting                        could reasonably adopt further controls               there is a need for additional controls
     gasoline to these areas from certain fuel               to be implemented in this near-term                   based on the information available at
     regulations, and because of the lack of                 time frame. First, the lead time is too               that time. We believe this two-step
     environmental harm from exempting                       short to allow for investments and                    approach is the most reasonable means
     such gasoline, we are exempting the                     upgrading of refinery equipment in any                to address toxics in the near-term in the
     gasoline sent to these areas from the                   significant manner. Second, we have                   face of incomplete information and the
     requirements of this rule.                              recently adopted, or proposed to adopt,               significant changes underway at many
                                                             two regulations that will achieve very                refineries across the country.
     12. Gasoline Excluded
                                                             significant emissions reductions by                      As discussed in the NPRM, a number
       In addition to California gasoline and                setting tight limits on the sulfur content            of other MSATs such as acrolein,
     gasoline that is used in the U.S.                       of fuels used in on-highway vehicles. To              styrene, dioxin/furans, xylene, toluene,
     territories, we are also exempting                      comply with these new regulations,                    ethylbenzene, naphthalene, and hexane
     certain other gasoline from the                         industry is already planning and                      are not controlled by the RFG or anti-
     requirements of this rule. We proposed                  investing in capital improvements and                 dumping programs. We do not currently
     to exempt gasoline used in certain                      pursuing the necessary permitting to                  have sufficient information on how
     circumstances, including racing                         upgrade their refineries. While we lack               changes in fuel properties affect
     gasoline and gasoline used for research,                the information to fully assess the costs             emissions of these compounds, and thus
     development and testing. These                          and benefits of further controls in the               we cannot estimate the costs associated
     categories are the same categories for                  2002 time frame, we have serious                      with controlling these compounds in
     which gasoline is exempt from the                       concerns that further toxics controls in              fuels.
     applicable regulations of other                         the 2002 time frame could interfere with                 Motor vehicle emissions of metals are
     programs, including the RFG and anti-                   refiners’ planning and affect their ability           being addressed in other actions. Metals
     dumping programs and gasoline sulfur.                   to meet our recently promulgated, or                  generally arise from contaminants in
     We are finalizing these exempt gasoline                 proposed, sulfur standards.                           lube oils. The recent proposed rule on
     categories as proposed.                                    Even though today’s rule focuses on                heavy-duty engines and vehicles
                                                             near-term options for controlling toxic               beginning in model year 2007 also
     D. Why Isn’t EPA Adopting Other Fuel                    emissions from fuels, we plan to                      proposes controls on the use of used oil
     Controls To Control MSATs?                              evaluate in our future rulemaking                     as a diesel fuel additive/extender.
       Section 202(l)(2) requires EPA to                     whether additional controls will be                      We are not controlling MTBE
     adopt regulations that contain standards                needed or appropriate in the longer                   emissions in this rulemaking. The


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     primary mechanism for controlling                        of nonroad sources in the proposal.                   study the contribution of nonroad
     MTBE emissions would be to limit the                     First, several commenters stated that our             engines to air pollution which may
     use of MTBE in gasoline. The Agency is                   emission projections for the nonroad                  reasonably be anticipated to endanger
     currently pursuing a separate                            category show that our current programs               public health or welfare, and to regulate
     rulemaking under the Toxic Substances                    are effective at reducing toxics from                 them if warranted. The focus of the 1990
     Control Act (TSCA) to consider phasing                   nonroad sources. These commenters                     Amendments was on the criteria
     down or eliminating the use of MTBE,                     argued that we do not need to do                      pollutants and their implications for
     and thus we have deferred                                anything further to reduce toxics                     meeting the national ambient air quality
     consideration of MTBE controls to that                   emissions from nonroad mobile sources.                standards (NAAQS). Due to the variety
     rulemaking. Note that the EPA and the                    A second group of commenters pointed                  of nonroad engine and equipment types
     United States Department of Agriculture                  out that the nonroad toxic inventories                and sizes, combustion processes, uses,
     jointly announced, on March, 2000, the                   clearly argue for further controls on                 and potential for emissions reductions,
     Administration’s legislative principles                  nonroad sources, and that we should                   we placed nonroad engines into several
     for protecting drinking water supplies,                  include such controls in the final rule.              categories. These categories include
     preserving clean air benefit and                         We believe that we need to gather                     land-based diesel engines (e.g., farm and
     promoting renewable fuels and urged                      additional information on nonroad                     construction equipment), small land-
     Congress to take action consistent with                  toxics emissions before we can make an                based spark-ignition (SI) engines (e.g.,
     these principles.                                        informed decision regarding future                    lawn and garden equipment, string
       Finally, as discussed in Section V. B                  actions, and are thus not including                   trimmers), large land-based SI engines
     above, there is insufficient data at this                additional nonroad controls in today’s                (e.g., forklifts, airport ground service
     time to allow us to quantify how                         action. Further, we are not required to               equipment), marine engines (including
     changes in individual diesel fuel                        set toxic emissions standards for                     diesel and SI, propulsion and auxiliary,
     properties would affect emissions of                     nonroad sources under section 202(l)(2)               commercial and recreational),
     compounds such as aldehydes, dioxins/                    of the Act.                                           locomotives, aircraft, and recreational
     furans, and POM. As a result, we cannot                                                                        vehicles (large land-based spark ignition
     specify how refiners might change their                  A. Nonroad MSAT Baseline Inventories
                                                                                                                    engines used in off-road motorcycles,
     operations or what capital equipment                        We previously presented the 1996                   ‘‘all terrain’’ vehicles and snowmobiles).
     they might need to install in order to                   baseline inventories for several key                  Brief summaries of our current and
     reformulate their diesel fuel, and thus                  nonroad MSAT emissions in Table III–                  anticipated programs for these nonroad
     we cannot estimate costs associated                      2. This nonroad MSAT data was taken                   categories follow. More detailed
     with this type of control.                               from the 1996 National Toxics Inventory               descriptions are contained in Chapter
                                                              (NTI). In general, the data show that                 Eight of the TSD for this rule.
     VI. Nonroad Sources of MSAT                              nonroad vehicles tend to be significant
     Emissions                                                                                                         • Land-based diesel engines. Land-
                                                              contributors of those same MSAT                       based nonroad diesel engines include
       In this section, we will look at MSAT                  emissions for which motor vehicles are                engines used in agricultural and
     emissions from nonroad mobile                            also significant contributors, such as                construction equipment, as well as
     sources.24 First, we will briefly review                 benzene, formaldehyde, and                            many other applications (excluding
     the nonroad MSAT emission inventories                    acetaldehyde. For some MSAT                           locomotives, mining equipment, and
     that were presented in Section III. Next,                emissions, the nonroad inventories are                marine engines). Under our Tier 1
     we will discuss how the current                          comparable to, or even higher than,                   standards phased in beginning in 1996,
     nonroad emission control programs are                    those for on-highway vehicles. Nonroad                NOX reductions of over 30 percent were
     expected to reduce these nonroad                         vehicles contribute as much as 39                     required of new land-based nonroad
     inventories, as well as briefly touch                    percent of the national inventory of                  diesel engines greater than 50
     upon the expected benefits from our                      some MSAT emissions, such as                          horsepower (hp).25 Standards applicable
     new actions targeting the control of                     acetaldehyde and MTBE, and contribute                 to engines under 50 hp took effect for
     emissions from currently unregulated                     significantly to the national inventories             the first time in 1999. We have
     nonroad categories.                                      of several others, including 1,3-                     completed a second set of standards
       We are looking at nonroad MSAT                         butadiene, acrolein, benzene,                         (Tier 2) which will be phased in from
     emissions separately from motor vehicle                  formaldehyde, lead compounds, n-                      2001 through 2006 and will require
     MSAT emissions primarily because our                     hexane, toluene and xylene.                           further NOX reductions, as well as
     understanding of nonroad MSAT                               Comparing the 1996 estimates of on-                reductions in diesel PM emissions. Still
     emissions is much more limited. This                     highway vehicle VOC and diesel PM                     more stringent NOX standards for
     section ends with a discussion of the                    emissions in Table III–3 to the nonroad               engines over 50 hp (Tier 3) have been
     current gaps in our data that we will                    VOC and diesel PM numbers presented                   adopted and will be phased in from
     need to fill before we can                               later in this section (Tables VI–3 and                2006 through 2008. When fully phased
     comprehensively assess the need for,                     VI–4), we see that the nonroad VOC                    in, these Tier 2 and Tier 3 regulations
     and appropriateness of, programs                         inventory in 1996 was almost 75 percent               are projected to result in 50 percent
     intended to further reduce nonroad                       of the on-highway inventory and the                   reductions in VOC and 40 percent
     MSAT emissions.                                          nonroad diesel PM inventory for the
       We received two general types of                                                                             reductions in diesel PM beyond the Tier
                                                              same year was roughly twice that for on-              1 regulations.26 Finally, we intend to
     comments in response to our discussion                   highway diesel PM.                                    consider the control of sulfur in
        24 ‘‘Nonroad’’ is a term that covers a diverse        B. Impacts of Current Nonroad Mobile                  nonroad diesel fuel as part of our Tier
     collection of engines, vehicles and equipment, as        Source Emission Control Strategies                    3 technology review. This would allow
     described in detail later in this section. The terms                                                           more effective diesel PM control
     ‘‘off-road’’ and ‘‘off-highway’’ are sometimes used      1. Description of the Emission Control                technologies such as catalysts to be
     interchangeably with nonroad. Section 202(l)             Programs
     instructs the Agency to address emissions from
     motor vehicles, which do not include nonroad              Section 213 of the Clean Air Act                       25 59   FR 31306, June 17, 1994.
     vehicles or engines.                                     Amendments of 1990 directed us to                       26 63   FR 56968, October 23, 1998.



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     applied to nonroad engines and                          this category of marine engine, but have              nonroad MSAT emissions because most
     vehicles.                                               begun developing them.32                              gasoline-fueled nonroad vehicles are
        • Small land-based SI engines. Small                    • Locomotives. Our regulations for                 fueled with the same gasoline used in
     land-based spark-ignition engines at or                 locomotives and locomotive engines                    on-highway vehicles. An exception to
     below 25 hp are used primarily in lawn                  consist of three tiers of standards,                  this is lead in aviation gasoline.
     and garden equipment such as lawn                       applicable depending on the date a                    Aviation gasoline is a high octane fuel
                                                             locomotive is originally                              used in a relatively small number of
     mowers, string trimmers, chain saws,
                                                             manufactured.33 The first set of                      aircraft (those with piston engines).
     lawn and garden tractors, and other
                                                             standards (Tier 0) applies to                         Such aircraft are generally used for
     similar equipment. Our Phase 1
                                                             locomotives and locomotive engines                    personal transportation, sightseeing,
     emission controls for these engines took                                                                      crop dusting, and similar activities.
                                                             originally manufactured from 1973
     effect beginning in 1997 and are                                                                                As just discussed, most of our fuel
                                                             through 2001, any time they are
     projected to result in a roughly 32                                                                           controls aimed at gasoline cover both
                                                             manufactured or remanufactured.34 The
     percent reduction in VOC emissions.27                                                                         on-highway and nonroad vehicle fuel.
                                                             second set of standards (Tier 1) applies
     We recently completed Phase 2                           to locomotives and locomotive engines                 The same is not true for diesel fuel. We
     regulations for these engines which,                    manufactured from 2002 through 2004.                  have regulations in place that will
     when fully phased in, are projected to                  The third set of standards (Tier 2)                   control the sulfur levels in on-highway
     result in additional reductions in                      applies to locomotives manufactured in                diesel fuel and have proposed to reduce
     combined HC and NOX beyond the                          2005 and later. While the Tier 0 and                  these levels further. These controls,
     Phase 1 levels of 60 percent for                        Tier 1 regulations are primarily                      however, do not apply to nonroad diesel
     nonhandheld engines and 70 percent for                  intended to reduce NOX emissions, the                 fuel. Prior to the sulfur controls for on-
     handheld engines.28                                     Tier 2 regulations are projected to result            highway diesel fuel, which took effect
        • Large land-based SI engines. We do                 in 50 percent reductions in VOC and                   in October of 1993, there was no
     not currently have emission standards                   diesel PM from unregulated levels, as                 distinction between nonroad and on-
     in place for SI engines above 25 hp used                well as additional NOX reductions                     highway diesel fuel.36 We are evaluating
     in commercial applications. Such                        beyond the Tier 0 and Tier 1                          the need for controlling sulfur in
     engines are used in a variety of                        regulations.                                          nonroad diesel fuel, in order to allow
     industrial equipment such as forklifts,                    • Aircraft. A variety of emission                  more effective diesel PM control
     airport ground service equipment,                       regulations have been applied to                      technologies such as catalysts to be
     generators and compressors. We are                      commercial gas turbine aircraft engines,              applied to nonroad engines and
                                                             beginning with limits on smoke and fuel               vehicles.
     currently developing an emission
     control program for these engines.29                    venting in 1974. In 1984, limits were                 2. Emission Reductions From Current
        • Marine engines. Due to the wide                    placed on the amount of unburned HC                   Programs
     variety of marine engine types and                      that gas turbine engines can emit per                    The nonroad mobile source control
     applications we have split these engines                landing and takeoff cycle. Most recently              programs just summarized are expected
                                                             (1997), we adopted the existing                       to result in reductions of national
     into three general categories for
                                                             International Civil Aviation                          inventories of MSAT emissions from
     regulatory purposes. The first category
                                                             Organization (ICAO) NOX and CO                        nonroad engines. This section
     consists of gasoline outboard and
                                                             emission regulations for gas turbine                  summarizes our estimates of nonroad
     personal watercraft engines. Our
                                                             engines. None of these actions has                    MSAT inventories into the future, based
     standards for these engines took effect
                                                             resulted in significant emissions                     on the nonroad emission control
     in 1998 and become increasingly
                                                             reductions, but rather have largely                   programs we currently have in place.
     stringent over a nine year phase-in
                                                             served to prevent increases in aircraft               Interested readers are encouraged to
     period, they are ultimately projected to
                                                             emissions. We continue to explore ways                refer to our TSD for a more detailed
     result in a 75-percent reduction in
                                                             to reduce emissions from aircraft                     discussion of these projections. The
     VOC.30 The second category consists of
                                                             throughout the nation.                                discussion in this section consists of
     commercial diesel marine engines. This                     • Recreational Vehicles. Large land-
     includes diesel engines up to 30 liters                                                                       three parts. First, we discuss the
                                                             based spark ignition engines used in                  inventories of four gaseous MSAT
     per cylinder in size used in a variety of               recreational vehicles include
     commercial marine applications. Our                                                                           emissions: benzene, formaldehyde,
                                                             snowmobiles, off-road motorcycles and                 acetaldehyde and 1,3-butadiene.
     emission standards for these engines                    ‘‘all terrain’’ vehicles, and are presently
     take effect in 2004 and are similar to our                                                                    Second, we discuss nonroad VOC
                                                             unregulated. We are currently                         emissions inventories as a surrogate for
     standards for land-based nonroad diesel                 developing emission regulations for
     engines.31 These regulations are                                                                              the other nonroad gaseous MSAT
                                                             recreational vehicles.35                              emissions. Finally, we discuss the trend
     projected to ultimately result in VOC                      In addition to the above engine-based
     reductions of 13 percent and diesel PM                                                                        in nonroad diesel PM emissions.
                                                             emission control programs, fuel controls                 We are not reporting inventory trends
     reductions of 26 percent for engines                    will also reduce emissions of air toxics
     subject to the standards. The last                                                                            for the metals on our list of MSATs
                                                             from nonroad engines. For example,                    (arsenic compounds, chromium
     category consists of both gasoline and                  restrictions on gasoline formulation (the
     diesel recreational sterndrive and                                                                            compounds, mercury compounds,
                                                             removal of lead, limits on gasoline                   nickel compounds, manganese
     inboard engines. We do not currently                    volatility and reformulated gasoline                  compounds, and lead compounds) or for
     have emission regulations in place for                  standards) are projected to reduce                    dioxin/furans. Metals in mobile source
       27 60
                                                                                                                   exhaust can come from fuel, fuel
            FR 34582, July 3, 1995.                            32 65 FR 76797, December 7, 2000.
       28 64FR 15208, March 30, 1999 and 65 FR 24267,          33 63
                                                                                                                   additives, engine oil, engine oil
                                                                     FR 18978, April 16, 1998.
     April 25, 2000.                                           34 Locomotives are typically overhauled to ‘‘as
                                                                                                                   additives, or engine wear. Formation of
      29 65 FR 76797, December 7, 2000.
                                                             new’’ condition every four to eight years in a        dioxin and furans requires a source of
      30 61 FR 52088, October 4, 1996.                       process known as remanufacturing.
      31 64 FR 73300, December 29, 1999.                       35 65 FR 76797, December 7, 2000.                     36 55   FR 34120, August 21, 1990.



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     chlorine. Thus, while metal emissions                                      1996 NTI study.37 The 1990 estimates                                   inventory of that specific MSAT
     and dioxins/furans emissions are                                           were derived by applying a ratio of                                    indirectly. The 2007 and 2020 MSAT
     associated with particles and it is                                        nationwide 1990 to 1996 VOC                                            estimates were derived from the draft
     possible that these compounds track PM                                     inventories from the draft NONROAD                                     NONROAD model, with the toxic
     emissions to some extent, there are a                                      model to the 1996 NTI numbers.38 Toxic                                 fractions applied to the nationwide
     number of other factors that contribute                                    fractions represent the fraction of total                              NONROAD VOC results. Toxic fractions
     to emission levels and we do not have                                      VOC that a given MSAT makes up. The                                    were applied separately to the various
     good data on these relationships.                                          toxic fractions were derived from                                      sources of nonroad emissions (e.g.,
       a. Benzene, Acetaldehyde,                                                speciated emissions data on different                                  diesel, gasoline, two-stroke, four-stroke,
     Formaldehyde, and 1,3-Butadiene.                                           engines and come from a variety of                                     exhaust, evaporative) in the NONROAD
     Table VI–1 shows our estimates of the                                      studies which are discussed in Chapter
                                                                                                                                                       model. We then summed the toxic
     nonroad emissions of these four gaseous                                    2 of the TSD. By knowing the total VOC
                                                                                                                                                       emissions from the various sources of
     MSATs. These estimates were based on                                       inventory and the toxic fraction for a
     the 1996 inventories contained in the                                      given MSAT, we can estimate the                                        nonroad emissions.

     TABLE VI–1.—ANNUAL EMISSIONS FOR BENZENE, ACETALDEHYDE, FORMALDEHYDE, AND 1,3-BUTADIENE FROM NONROAD
                                                     SOURCESa
                                                                                            [Thousand short tons per year]

                                                                                                                                             1990            1996              2007            2020
                                                             Compound                                                                      Emissions       Emissions         Emissions       Emissions

     Benzene .........................................................................................................................          100.2              98.7            75.4              69
     Acetaldehyde .................................................................................................................              37.7              40.8            26.3              20
     Formaldehyde ................................................................................................................               79.2              86.4            53.8              40.7
     1,3-Butadiene .................................................................................................................              9.4               9.9             8.8               7.8
       a The draft NONROAD model is a model we are developing to project emissions inventories from nonroad mobile sources. Because this is a
     draft model and subject to future revisions, the inventories derived from the draft NONROAD model and presented here are subject to change.


       Table VI–2 summarizes the percent                                        reductions expected from our existing                                  on-highway vehicles presented in
     reductions from 1990 and 1996 levels                                       nonroad control programs are                                           Section III.
     represented by the inventories in Table                                    significant, although not as substantial
     VI–1. This table shows that the                                            as the reductions of these pollutants for

        TABLE VI–2.—PERCENT EMISSION REDUCTIONS FOR BENZENE, ACETALDEHYDE, FORMALDEHYDE, AND 1,3-BUTADIENE
                                             FROM NONROAD SOURCES
                                                                                                                                               Reduction in 2007                Reduction in 2020
                                                                                                                                                  (percent)                        (percent)
                                                              Compound                                                                     From 1990        From 1996        From 1990       From 1996

     Benzene ...........................................................................................................................            25                  24             31                30
     Acetaldehyde ...................................................................................................................               30                  36             47                51
     Formaldehyde ..................................................................................................................                32                  38             49                53
     1,3-Butadiene ...................................................................................................................               7                  11             18                21



       b. VOCs. With the exception of the                                       track VOC reductions. In reality,                                      locomotive and diesel marine
     four MSATs shown in Table VI–1, we                                         however, as can be seen from Table VI–                                 inventories developed in support of our
     cannot estimate emissions from nonroad                                     2, some gaseous MSAT emissions may                                     regulations for those categories, and
     mobile sources for the other gaseous                                       not decrease at the same rate as VOCs                                  with aircraft emission inventories from
     MSAT emissions because we do not                                           overall. Without having more detailed                                  the National Air Pollutant Emissions
     have toxic fraction information for the                                    emission data for each of the MSAT                                     Trends, 1900–1996 report. The results of
     other gaseous MSAT emissions.                                              emissions, however, we are unable to                                   this analysis, presented in Table VI–3,
     Therefore, to estimate projected                                           offer any insights on how those rates                                  show that VOC inventories are projected
     inventory impacts from our current                                         may differ.                                                            to decrease approximately 44 percent
     nonroad mobile source emission control                                        Our VOC emission inventories were                                   between 1996 and 2020 due to existing
     programs, we use VOC inventories. We                                       developed using the draft NONROAD                                      nonroad mobile source emission control
     believe this is appropriate because the                                    model. Because the draft NONROAD                                       programs. Comparing the results of this
     gaseous MSAT emissions are                                                 model does not include locomotives,                                    analysis with Tables III–3 and III–4, we
     constituents of total VOC emissions. By                                    commercial marine diesel engines, or                                   see that expected nonroad VOC
     using VOC emissions as a surrogate, we                                     aircraft, we supplemented the draft                                    reductions are not as dramatic as those
     are assuming that MSAT emissions                                           NONROAD model inventories with the                                     projected for on-highway vehicles, with

       37 It should be noted that these estimates do not                        here differ slightly from those shown in Table III–                    nonroad mobile sources. Because this is a draft
     include locomotives, aircraft or commercial marine                         2.                                                                     model and subject to future revisions, the
     diesel engines. Thus, the 1996 estimates shown                                38 The draft NONROAD model is a model we are                        inventories derived from the draft NONROAD
                                                                                developing to project emissions inventories from                       model and presented here are subject to change.



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     nonroad and on-highway VOC                                              sophisticated as those used to control                                  MSAT reductions (assuming, as
     inventories expected to be very similar                                 on-highway emissions. This analysis,                                    previously discussed, that gaseous
     by 2020. This is not surprising because                                 however, shows that our existing                                        MSAT emissions track VOC reductions).
     the technologies available to reduce                                    nonroad emission control programs will
     nonroad emissions are not as                                            nonetheless result in significant gaseous

                                                    TABLE VI–3.—ANNUAL VOC EMISSIONS FROM NONROAD SOURCES
                                                                             Year                                                                                   1996           2007       2020

     Million short tons per year .............................................................................................................................   3.6           2.2        2.0
     Cumulative Percent Reduction from 1996 ....................................................................................................                 * * *         39%        44%



       c. Diesel PM. We estimated the                                        expect that nonroad diesel PM emission                                    As was previously mentioned, we are
     nonroad PM inventories using the draft                                  inventories will begin to increase due to                               considering Tier 3 diesel PM standards
     NONROAD model. We are using diesel                                      expected growth in the populations of                                   for land-based nonroad diesel engines.
     PM as a surrogate for diesel PM and                                     nonroad vehicles and equipment.                                         We believe that any specific new
     diesel exhaust organic gases (DPM +                                     Comparing Table VI–4 to Table III–3 we                                  requirements for nonroad diesel PM we
     DEOG). As explained earlier, because                                    see that, while the nonroad diesel PM                                   might propose would need to be
     the draft NONROAD model does not                                        inventory is roughly twice that for on-                                 carefully considered in the context of a
     include locomotives, commercial                                         highway vehicles in 1996, nonroad                                       proposal for nonroad diesel fuel
     marine diesel engines, or aircraft we                                   emissions of diesel PM are expected to                                  standards. This is because of the close
     supplemented the draft NONROAD                                          be about 20 times as great as on-
                                                                                                                                                     interrelationship between fuels and
     model inventories using other sources of                                highway diesel PM emissions by 2020
                                                                                                                                                     engines—the best emission control
     information to cover these emissions.                                   due to the dramatic reductions in on-
     Table VI–4 shows our estimates of                                       highway PM from the application of the                                  solutions may not come through either
     nonroad diesel PM emissions                                             newest technologies and the use of low                                  fuel changes or engine improvements
     inventories. As can be seen, we expect                                  sulfur fuels. These estimates assume                                    alone, but perhaps through an
     nonroad diesel PM emissions to begin to                                 projected reductions from the proposed                                  appropriate balance between the two.
     drop with the implementation of some                                    standards for heavy-duty vehicles in                                    Thus, we are working to formulate
     of our nonroad regulations. However, in                                 2007 and future model years, which are                                  proposals covering both nonroad diesel
     the absence of additional controls, we                                  not yet finalized.                                                      fuel and engines.

                                                      TABLE VI–4.—DIESEL PM EMISSIONS FROM NONROAD SOURCES
                                                                             Year                                                                                   1996           2007       2020

     Thousand short tons per year .......................................................................................................................        345.8         282.8      310.8
     Cumulative Percent Reduction from 1996 ....................................................................................................                 * * *         18%        10%



     C. Gaps in Nonroad Mobile Source Data                                   assess the need for, and the most                                       emissions from on-highway sources,
       There are significant gaps in our data                                appropriate direction of, any future                                    diesel particulate matter and diesel
     on MSAT emissions from nonroad                                          MSAT control program targeted                                           exhaust organic gases (DPM + DEOG),
     engines. As a result of these data gaps,                                specifically at nonroad mobile sources.                                 benzene, 1,3-butadiene, formaldehyde,
     our understanding of nonroad MSAT                                       We intend to use the technical analysis                                 acetaldehyde, and acrolein are likely to
     inventories is less developed than our                                  plan, described in Section VII, to fill                                 present the highest risks to public
     understanding of on-highway vehicle                                     these data gaps.                                                        health and welfare.39 The need to focus
     MSAT emissions. The largest single data                                 VII. Technical Analysis Plan to Address                                 short-term work on these six MSATs has
     gap is in the area of emission factors.                                 Data Gaps and Commitment for Further                                    been highlighted in an Agency
     While we have basic emission factors                                    Rulemaking                                                              screening analysis40 and the States have
     for VOC and PM for most of the nonroad                                                                                                          indicated these pollutants are major
     categories, we have very little VOC                                     A. Technical Analysis Plan to Address
                                                                             Data Gaps                                                               mobile source pollutants of concern.
     speciation data for most classes and                                                                                                            Information that is made available from
     categories of nonroad vehicles and                                         Because of the potential future health                               the work that is now underway in the
     engines which would allow us to use                                     impacts of public exposure to air toxics                                NATA National-Scale Analysis will also
     VOC as a surrogate to estimate                                          from mobile sources we will continue                                    be used to determine priority toxics
     emissions of specific MSAT emissions.                                   our toxics-related research and
     Given the large variety of nonroad                                      activities. Therefore, in addition to
     engine sizes, types and uses, as well as                                today’s controls, we will continue to
                                                                                                                                                       39 EPA may also focus on other MSATs in the
     the likelihood that this variety are                                    evaluate and re-assess the need for, and
                                                                                                                                                     next two years, if new information shows that is
     projected to result in some differences                                 level of controls for both on-highway                                   appropriate.
     in VOC composition, it is important that                                and nonroad sources of air toxics.                                        40 Memo from Brodowicz, P. to Phil Lorang,

     we obtain or develop speciated VOC                                      Among the 21 compounds that EPA has                                     Director Assessment and Modeling Division and
     data specific to each nonroad category                                  identified for inclusion on the list of                                 Chet France, Director Engines Programs and
                                                                                                                                                     Compliance Division. Screening/Ranking Analysis
     in order to more accurately project                                     MSATs, we believe that, considering                                     of the Air Toxic Emissions From Onroad Mobile
     nonroad MSAT inventories. These gaps,                                   single chemical inhalation health                                       Sources to Be Addressed Under Section 202(l)(2).
     too, must be filled in order to accurately                              hazards and exposure to the MSAT                                        August 17, 1999.



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     from mobile sources.41 In addition,                     addition to other sources of nonroad test             population in different
     priorities identified from the NATA                     data to develop better air toxics                     microenvironmental settings. CHAD is a
     National-Scale Analysis will be                         emissions factors for nonroad sources.                more expansive human activity diary
     considered and incorporated as                             Improving estimation of exposures in               data set than others EPA has used in
     appropriate in the Air Toxics Research                  microenvironments. In the past, the                   past exposure assessment, but the
     Strategy (ATRS) currently being                         Agency has used carbon monoxide (CO)                  Agency recognizes that additional field
     developed by EPA’s Office of Research                   measurements outdoors and indoors as                  research may be needed to expand
     and Development (ORD) in a                              a surrogate for estimating the on-                    human activity information for under-
     coordinated effort with the OAR.                        highway mobile source contribution to                 represented demographic groups,
        In conducting this Technical Analysis                air toxics levels from outdoor sources in             particularly in urban areas. EPA will
     Plan, we will address four critical areas               different microenvironments (e.g.,                    update CHAD to take advantage of new
     where there are data gaps. These areas                  inside vehicles, homes, shopping malls,               data that becomes available through
     are:                                                    and office buildings). This approach has              peer-reviewed studies. As CHAD is
        • Developing better air toxics                       limitations. Estimates of the on-highway              updated in the future, EPA will
     emission factors for nonroad sources;                   contribution to air toxics levels in                  incorporate new data into HAPEM4 to
        • Improving estimation of air toxics                 different microenvironments are then                  provide the best reflection of each
     exposures in microenvironments;                         used in conjunction with activity data to             subgroup’s activities and thereby enable
        • Improving consideration of the                     estimate average exposures. A new                     subgroup analysis from which EPA
     range of total public exposures to air                  approach was needed that addressed                    would be likely to gain additional
     toxics; and                                             some of the limitations of the CO                     insights about the potential exposures
        • Increasing our understanding of the                surrogate approach and one that could                 for particular subgroups, including
     effectiveness and costs of vehicle, fuel,               be used to estimate exposures from all                children. The Agency will review the
     and nonroad controls for air toxics.                    outdoor sources. Thus, the Agency                     data to see where special analysis is
        The Agency recognizes the need to                    developed the Hazardous Air Pollutant                 warranted to characterize the subgroups
     conduct additional work and to focus on                 Exposure Model—Version 4 (HAPEM4),                    facing greater risks.
     relevant scientific data to address the                 to estimate microenvironmental                           Improving consideration of the range
     needs we outline in this Technical                      exposures in the National-Scale                       of public exposures. EPA’s analysis to
     Analysis Plan. The issues outlined are                  Assessment of NATA. HAPEM4 utilizes                   date has primarily examined average
     complex and while the work conducted                    peer reviewed, pollutant specific                     levels of exposure (see Chapter 5 of the
     as part of the Technical Analysis Plan                  microenvironmental factors to predict                 TSD and our 1999 Study 42). As part of
     will begin to address the significant data              exposure levels in microenvironments.                 its National Air Toxics Assessment
     gaps, resolution of some aspects of these               The application of these                              (NATA) activities, EPA has also
     issues will require a long-term effort.                 microenvironmental factors in the                     conducted a national-scale air toxics
     This effort will be coordinated across                  NATA National-Scale Assessment is                     analysis to estimate ambient
     the Agency to maximize available                        currently awaiting peer review by the                 concentrations of 33 air toxics identified
     resources.                                              Agency’s Science Advisory Board. After                in the IUATS, plus diesel PM. The
        Developing emission factors for                      that review, EPA’s OAQPS will                         NATA National-Scale Analysis
     nonroad sources. EPA’s Office of                        incorporate applicable comments into                  apportioned the contribution of air
     Transportation and Air Quality (OTAQ)                   HAPEM4 microenvironmental factors                     toxics to ambient concentrations
     has initiated emissions testing of a                    that are needed to provide improved                   between major, area, nonroad mobile,
     comprehensive suite of hydrocarbons                     exposure estimates.                                   and on-highway sources. The NATA
     and inorganic compounds from nonroad                       In addition, EPA will use results of               National Scale Analysis also reported
     diesel engines. These emissions will be                 on-going studies at the Mickey Leland                 distributions of concentrations across
     characterized using steady-state as well                National Urban Air Toxics Research                    census tracts nationally and at the
     as transient test cycles using typical                  Center and in the EPA Office of                       county level. While providing a
     nonroad fuel and low-sulfur nonroad                     Radiation and Indoor Air to evaluate                  significant and informative body of
     fuel. OTAQ has also initiated an effort                 indoor and outdoor concentrations of                  information, these studies do not
     to characterize emissions (including                    gaseous toxics as well as the penetration             address exposures to toxics in hot spot
     speciated hydrocarbons) from in-use                     of toxics from outdoor sources into                   areas. As the Agency has stated in the
     nonroad engines. EPA’s Office of                        indoor spaces. EPA will also utilize data             Integrated Urban Air Toxics Strategy,
     Research and Development (ORD) also                     from new studies planned or underway                  we also want to consider the
     has information available from testing                  (within and outside the Agency) that are              disproportionate impacts of air toxics in
     programs which will be useful to                        designed to fill gaps in current data sets            hot spot areas. Hot spots are generally
     characterize emissions of toxic                         such as personal exposure in                          thought of as areas with elevated
     compounds from certain classes of                       microenvironmental settings (e.g.,                    pollutant levels that could be associated
     gasoline nonroad engines using various                  houses with attached garages,                         with elevated exposures and potentially
     fuels (oxygenated gasoline, reformulated                residences and commercial buildings                   serious health risks. At higher pollutant
     gasoline and conventional gasoline).                    located near heavily-trafficked                       concentrations, the potential for risk
     The Agency will use these data, in                      roadways, bus depots, and delivery                    increases, making it important to
                                                             terminals).                                           characterize the distribution of exposure
        41 EPA’s Office of Transportation and Air Quality       Another important aspect of                        in the population. For example, it
     (OTAQ), which is responsible for the MSATs              considering microenvironmental                        would be important to know how many
     program, will be working in coordination with the
     Office of Air Quality Planning and Standards
                                                             exposures is the amount of time people                people are in the high-end distribution
     (OAPQS), which manages NATA, and the Office of          spend in each microenvironment. To
     Radiation and Indoor Air, which is examining            address this issue, HAPEM4 uses the                     42 Analysis of the Impacts of Control Programs on

     issues related to a wide range of indoor air            EPA ORD Consolidated Human Activity                   Motor Vehicles Toxics Emissions and Exposure in
     pollutants. OTAQ will also rely on health effects,                                                            Urban Areas and Nationwide (Volumes 1 and 2),
     exposure, and risk assessment efforts and
                                                             Database (CHAD). CHAD contains                        November 1999. EPA420-R–99–029/030. This
     guidelines of EPA’s Office of Research and              information describing activities of                  report can be accessed at http://www.epa.gov/otaq/
     Development in conducting its program.                  various subgroups in the U.S.                         toxics.htm.



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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                          17259

     of exposure and whether they have                       nonroad sources. This additional                       take final action on the proposal by July
     additional susceptibilities (e.g., the                  analysis of control options will include               1, 2004. The regulation adopted today
     elderly, young, or those exposed to                     the feasibility of requiring retrofit of               establishes a rulemaking schedule for
     other chemicals beyond MSATs) and                       both highway and nonroad heavy-duty                    exercise of EPA’s discretionary
     what factors place them at high risk                    diesel engines with emissions controls                 authority under section 202(l)(2), which
     (e.g., proximity to sources). States and                for air toxics.                                        directs EPA to ‘‘from time to time
     local air pollution control agencies have                  In each of these four areas of                      revise’’ regulations under that provision.
     raised the hot spots issue as a major                   investigation, EPA will work                              We are also stating in section 80.825
     concern that needs to be addressed in a                 collaboratively with industry                          that the Agency intends to evaluate
     comprehensive air toxics risk                           representatives, manufacturers of                      emissions and potential strategies
     characterization.43                                     emissions control technology, State and                relating to HAPs from nonroad engines
        To improve our ability to characterize               local agencies, environmental groups,                  and vehicles. This is consistent with the
     MSAT exposures to highly exposed                        and other stakeholders. In keeping with                commitment, expressed in the preamble
     subpopulations requires better                          this approach, the Agency plans to hold                of the NPRM, to address emissions from
     information regarding ambient                           at least three technical workshops with                nonroad as well as on-highway vehicles.
     concentrations of MSATs in hot spot                     all interested stakeholders to consider:               The preamble discussion in the NPRM
     areas and appropriate                                      • Improvements EPA should make to                   explained that as part of the rulemaking
     microenvironmental factor values for                    existing models and integration of                     envisioned under the proposed section
     high-exposure microenvironments. EPA                    emission, concentration and exposure                   80.825, EPA would reexamine the
     is developing local-scale emissions and                 models to enable the Agency to better                  controls available for reducing toxics
     dispersion models for mobile sources to                 assess the risks from air toxics from all              emitted from on-highway and nonroad
     better inform the Agency and the public                 sources;                                               vehicles and equipment, and their fuels
     about potential hot spots. In addition,                    • Ways to address the significance of               (see preamble, 65 FR at 48091). The
     EPA is conducting spatially refined                     the hot spot issue; 45 and                             review would consider whether controls
     urban area modeling (including mobile                      • Future vehicle, fuel, and nonroad                 that reduce emissions from nonroad
     sources).                                               control technologies for reducing air                  sources were appropriate under the Act.
        Field sampling studies funded by the                 toxics.                                                EPA intends to review the regulations of
     Mickey Leland National Urban Air                           The results of the Technical Analysis               various categories of nonroad engines
     Toxics Research Center and ambient                      Plan, workshops, and other efforts to                  and equipment, and to consider controls
     monitoring being conducted by States                    improve our understanding of air toxics                for those pollutants and categories of
     and local entities will provide                         risks will provide the basis for any                   new nonroad engines that EPA
     information that will be used to support                future rulemaking, as discussed below.                 determines are appropriate. Controls on
     real-world characterizations of a few                   B. Commitment for Further Rulemaking                   all types of nonroad vehicles and
     typical hot spot areas. These field                                                                            equipment, or pollutants may not be
                                                               EPA is including a regulatory                        warranted. In deciding what pollutants
     measurements will also provide
                                                             provision in section 80.825 that                       and categories of engines or equipment
     information regarding the distributions
                                                             establishes a schedule for a future                    to include in any proposal, EPA intends
     of microenvironmental concentrations
                                                             rulemaking to promulgate any                           to consider a variety of factors such as
     and therefore, exposures. EPA will also
                                                             additional vehicle and fuel controls that              cost, risk to public health, available
     work with the State and local air
                                                             EPA determines are appropriate under                   technology, as well as any other
     pollution control agencies to ensure that
                                                             section 202(l)(2). This rulemaking will                appropriate factors.
     the results of air toxics monitoring data               reassess the standards in place at the
     analyses and urban monitoring pilot                                                                               Several commenters urged EPA not to
                                                             time using the information collected                   include a commitment to a future
     projects underway omission year are                     through the Technical Analysis Plan
     considered in EPA’s development of                                                                             rulemaking in the regulations. These
                                                             described above and other activities                   commenters argued that it was
     mobile source air toxics exposure and                   related to mobile sources and air toxics.
     risk analyses.44                                                                                               premature to commit to a rulemaking
                                                             The standards that are being                           before EPA had completed the
        Increasing our understanding of the
                                                             promulgated by EPA in today’s final                    Technical Analysis Plan and that a
     effectiveness and costs of vehicle, fuel,
                                                             rule will remain in effect unless                      future rulemaking could be a waste of
     and nonroad air toxics controls. The
                                                             modified by this or other future                       resources if EPA determines no further
     Agency intends to conduct additional
                                                             rulemaking. EPA commits to issue a                     controls are appropriate. Several
     analysis on additional controls for
                                                             proposed rule by July 1, 2003, and to                  commenters also questioned EPA’s
     motor vehicles, fuels, and nonroad
     engines that could lower air toxics                                                                            authority to commit future
                                                               45 This workshop will include ways to
     emissions cost-effectively in a reliable                                                                       administrations to such a rulemaking.
                                                             characterize the geographic variability and
     and predictable manner. For DPM +                       exposure/risk impacts of mobile source emissions,      EPA continues to believe the regulatory
     DEOG, benzene, 1,3-butadiene,                           considering both the ubiquitous ambient impact as      commitment in section 80.825 is
     formaldehyde, acetaldehyde, and                         well as potential hot spots. Geographic variability    reasonable and entirely within EPA’s
                                                             includes the observed elevated urban area ambient      authority.
     acrolein, the Agency will analyze a                     concentrations of mobile source air toxics, peak
     variety of control options, and re-                     ambient concentrations adjacent to roadways in
                                                                                                                       Other commenters supported EPA’s
     evaluate previously considered control                  urban and rural areas, and the elevated, mobile        commitment to future rulemaking, but
     options, for both on-highway and                        source-dependent emissions impacts (for example,       encouraged EPA to extend that
                                                             waste transfer station operations and bus, marine,     commitment to include a periodic
                                                             aircraft, and locomotive terminal operations).
       43 STAPPA/ALAPCO and NESCAUM raised this
                                                             Exposure variability includes recognition of factors
                                                                                                                    review of mobile source toxics controls.
     concern at an conference on mobile source air           that lead to different levels of human exposure,       They believe that EPA should review
     toxics that the Health Effects Institute managed for    such as commuting, or living in a residence with       the appropriateness of additional
     EPA in February 2000.                                   an attached garage. While this workshop will focus     controls every three years. At this time,
       44 EPA will characterize the exposure risks of air    on methods to understand the range of exposures
     toxics in future analysis in the manner prescribed      to mobile source emissions, methods to characterize
                                                                                                                    we do not believe it is necessary to
     in the Agency’s Guidance for Risk Characterization,     additional sources of toxics exposure will also be     make such a formal commitment.
     February 1995.                                          examined.                                              However, the Act allows us to review


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     and from time to time revise air toxics                   Pursuant to the terms of Executive                  C. Paperwork Reduction Act
     standards for mobile sources. Therefore,                Order 12866, it has been determined                      The information collection
     in addition to today’s controls, we will                that this rule is a ‘‘significant regulatory          requirements in this rule have been
     continue to evaluate and re-assess the                  action’’ because it raises novel legal or             submitted for approval to the Office of
     need for, and level of controls for both                policy issues. Accordingly, this rule was             Management and Budget (OMB) under
     on-highway and nonroad sources of air                   submitted to OMB for review. Any                      the Paperwork Reduction Act, 44 U.S.C.
     toxics as described above.                              written comments from OMB on today’s                  3501 et seq. An Information Collection
                                                             action and any responses from EPA to                  Request (ICR) document has been
     VIII. Public Participation
                                                             OMB comments are in the public docket                 prepared by EPA and a copy may be
       A wide variety of interested parties                  for this rulemaking.
     participated in the rulemaking process                                                                        obtained from Sandy Farmer, Collection
     that culminated with this final rule. The               B. Regulatory Flexibility Analysis.                   Strategies Division; U.S. Environmental
     formal comment period and a public                         EPA has determined that it is not                  Protection Agency (2822); 1200
     hearing associated with the NPRM                        necessary to prepare a regulatory                     Pennsylvania Ave., NW, Washington,
     provided additional opportunities for                   flexibility analysis in connection with               DC 20460 or by calling (202) 260–2740.
     public input. EPA also met with a                       this final rule. EPA has also determined              The information requirements are not
     variety of stakeholders, including                      that this rule will not have a significant            enforceable until OMB approves them.
     environmental and public health                         impact on a substantial number of small                  Under this rulemaking, refiners and
     organizations, oil company                              entities. Small entities include                      importers are required to determine and
     representatives, auto company                           businesses, small not-for-profit                      submit to EPA a toxics baseline based
     representatives, and states at various                  enterprises, and small governmental                   on the quality of the gasoline produced
     points in the process.                                  jurisdictions. Of the approximately 146               or imported between 1998 and 2000,
       We have prepared a detailed                           petroleum refiners that currently                     inclusive. The toxics baseline is a one-
     Response to Comments document that                      produce gasoline in the U.S., about 15                time submission. Additionally, at the
     describes the comments received on the                  meet the Small Business Administration                end of each calendar year beginning
     NPRM and presents our response to                       (SBA) definition of a small business.                 with 2002, refiners and importers are
     each of these comments. The Response                    According to SBA guidelines, a                        required to submit certain information
     to Comments document is available in                    petroleum refining company must have                  to EPA under this rule. The types of
     the docket of this rule and on the Office               fewer than 1500 employees to qualify as               information and other requirements
     of Transportation and Air Quality                       an SBA small business.                                associated with these submissions is
     Internet toxics page (http://                              After considering the economic                     presented below.
     www.epa.gov/otaq/toxics.htm).                           impacts of today’s final rule on small                   The data that is used in determining
     Comments and our response are also                      entities, EPA has concluded that this                 the toxics baseline is gasoline batch
     included throughout this preamble for                   action will not have a significant                    information which the refiner or
     several key issues.                                     economic impact on a substantial                      importer already has, and has submitted
                                                             number of small entities. As a result of              (or will submit in the case of 2000 data)
     IX. Administrative Requirements                                                                               to EPA per the reformulated gasoline
                                                             the toxics performance standard being
     A. Administrative Designation and                       finalized today, all refiners will be                 and anti-dumping programs’
     Regulatory Analysis                                     required to maintain current levels of                requirements. Thus, there is no
        Under Executive Order 12866 (58 FR                   overcompliance with RFG and anti-                     requirement under this rule to collect
     51735, October 4, 1993), the Agency                     dumping toxic emission performance                    additional information; refiners and
     must determine whether the regulatory                   requirements. Because the standards                   importers use the information they
     action is ‘‘significant’’ and therefore                 finalized in this action are not                      already have (gasoline batch quality and
     subject to review by the Office of                      technology-forcing, we believe that all               volumes) to determine the baseline for
     Management and Budget (OMB) and the                     refiners, including small refiners will               this rule, a straightforward and
     requirements of this Executive Order.                   not be required to adjust their current               uncomplicated calculation.
     The Executive Order defines a                           refining practices in any unique way to                  In addition to the one-time toxics
     ‘‘significant regulatory action’’ as any                meet the toxics performance standard.                 baseline determination and submission,
     regulatory action that is likely to result              Chapter 7 of the TSD supports this                    refiners and importers are required to
     in a rule that may:                                     conclusion and we believe that any                    calculate annually and submit to EPA
        • Have an annual effect on the                       future costs that may be incurred by any              the following, separately for
     economy of $100 million or more or                      refiner to comply with this program will              reformulated and conventional gasoline:
     adversely affect in a material way the                  be negligible.                                           (1) The annual average toxics value.
     economy, a sector of the economy,                          Although this final rule will not have             This value is the average quality of all
     productivity, competition, jobs, the                    a significant economic impact on a                    of the batches of gasoline produced or
     environment, public health or safety, or                substantial number of small entities,                 imported during the year and is based
     State, Local, or Tribal governments or                  EPA nonetheless has tried to reduce the               on the volume and toxics quality of each
     communities;                                            impact of this rule on small entities. We             batch (volume weighted combination of
        • Create a serious inconsistency or                  have included a number of flexibilities               each batch’s toxic value).
     otherwise interfere with an action taken                in this program such as deficit and                      (2) The annual volume. This is the
     or planned by another agency;                           credit carryforward that are available to             sum of all of the batch volumes of
        • Materially alter the budgetary                     all refineries to meet the requirements               gasoline produced or imported during
     impact of entitlements, grants, user fees,              finalized in today’s action. We believe               the year.
     or loan programs, or the rights and                     these flexibilities are sufficient to                    (3) The incremental volume. This is
     obligations of recipients thereof; or                   address any unforseen burdens that any                the difference between a refiner’s or
        • Raise novel legal or policy issues                 refiner, including a small refiner, may               importer’s 1998–2000 baseline volume
     arising out of legal mandates, the                      face, and therefore, no unique                        and the annual volume (see above).
     President’s priorities, or the principles               provisions or flexibilities need to be                Only positive incremental volumes (that
     set forth in the Executive Order.                       finalized for small refiners.                         is, when the annual volume exceeds the


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                            17261

     1998–2000 volume) are used in the                       recordkeeping and reporting                              Administrator publishes with the final
     compliance baseline calculation (see                    requirements for the RFG and anti-                       rule an explanation why that alternative
     below).                                                 dumping rules. While we believe that                     was not adopted.
        (4) The compliance baseline. This                    the minimal amount of additional data                       Before we establish any regulatory
     annual calculation is the standard for                  required by this rulemaking does not                     requirement that may significantly or
     this rule, and is the value to which the                pose significant additional information                  uniquely affect small governments,
     annual average toxics value (see above)                 collection burden on refiners,46 we have                 including tribal governments, we must
     is compared. Factors in this calculation                submitted revisions to the RFG and anti-                 develop, under section 203 of the
     are the baseline quality and volume (as                 dumping Information Collection                           UMRA, a small government agency
     determined in the one-time baseline                     Requests (ICRs).                                         plan. The plan must provide for
     submission, plus a compliance margin                      An Agency may not conduct or                           notifying potentially affected small
     which has been set by EPA), and the                     sponsor, and a person is not required to                 governments, enabling officials of
     incremental volume (see above).                         respond to a collection of information                   affected small governments to have
        The annual average toxics value for                  unless it displays a currently valid OMB                 meaningful and timely input in the
     each type of gasoline (reformulated,                    control number. The OMB control                          development of our regulatory proposals
     conventional) is essentially the same                   numbers for EPA’s regulations are listed                 with significant federal
     determination refiners and importers                    in 40 CFR part 9 and 48 CFR Chapter                      intergovernmental mandates. The plan
     must make for the reformulated gasoline                 15. The OMB control number(s) for the                    must also provide for informing,
     and anti-dumping programs. The annual                   information collection requirements in                   educating, and advising small
     average toxics value determination is                   this rule will be listed in an amendment                 governments on compliance with the
     made using the toxics values calculated                 to 40 CFR part 9 in a subsequent                         regulatory requirements.
     for each reformulated gasoline and                      Federal Register document after OMB                         EPA has determined that this rule
     conventional gasoline batch in                          approves the ICR.                                        does not contain a federal mandate that
     accordance with the reformulated                                                                                 may result in expenditures of $100
     gasoline and anti-dumping program                       D. Intergovernmental Relations                           million or more for State, Local, or
     requirements. No new data is required                   1. Unfunded Mandates Reform Act                          Tribal governments, in the aggregate, or
     to be collected for this rule. The annual                  Title II of the Unfunded Mandates
                                                                                                                      for the private sector in any one year.
     volume is also part of the reporting                                                                             The anti-backsliding standard that is
                                                             Reform Act of 1995 (UMRA), Public
     requirements of those two programs.                                                                              being finalized in today’s action,
                                                             Law 104–4, establishes requirements for
     Only the incremental volume                                                                                      consisting of a ‘‘cannot exceed’’ toxics
                                                             Federal agencies to assess the effects of
     determination and the compliance                                                                                 performance standard which is based in
                                                             their regulatory action on state, local,
     baseline determination are new                                                                                   average annual production in 1998–
                                                             and tribal governments and the private
     requirements due to this rule. These                                                                             2000, will not require refiners to install
                                                             sector. Under section 202 of the UMRA,
     latter two determinations require                                                                                capital equipment or make substantial
                                                             EPA generally must prepare a written
     minimal calculation time. Additionally,                                                                          changes to their operations in order to
                                                             statement, including a cost-benefit
     all information required to be submitted                                                                         comply. The rule imposes no
                                                             analysis, for proposed and final rules
     annually under this anti-backsliding                                                                             enforceable duties on State, Local, or
     program will be submitted at the same                   with ‘‘Federal mandates’’ that may                       Tribal governmental entities and
     time and on the same forms as the                       result in expenditures by state, local,                  nothing in the rule would significantly
     annually required information under the                 and tribal governments, in the aggregate,                or uniquely affect small governments.
     reformulated gasoline and anti-dumping                  or by the private sector, of $100 million                Thus, today’s rule is not subject to the
     programs.                                               or more in any one year. Before                          requirements of section 202 and 205 of
        Refiners and importers are also                      promulgating an EPA rule for which a                     UMRA.
     required to annually submit attest                      written statement is needed, section 205
     engagements (independent comparison                     of the UMRA generally requires EPA to                    2. Executive Order 13132 (Federalism)
     and calculation of reported values and                  identify and consider a reasonable                          Executive Order 13132, entitled
     related information submitted by                        number of regulatory alternatives and                    ‘‘Federalism’’ (64 FR 43255, August 10,
     refiners and importers in accordance                    adopt the least costly, most cost-                       1999), requires EPA to develop an
     with the reformulated gasoline and anti-                effective or least burdensome alternative                accountable process to ensure
     dumping requirements). Attest                           that achieves the objectives of the rule.                ‘‘meaningful and timely input by State
     engagements are also required for this                  The provisions of section 205 do not                     and local officials in the development of
     anti-backsliding rule. The information                  apply when they are inconsistent with                    regulatory policies that have federalism
     the independent auditor must consider                   applicable law. Moreover, section 205                    implications.’’ ‘‘Policies that have
     includes the refiner’s or importer’s                    allows EPA to adopt an alternative other                 federalism implications’’ is defined in
     baseline toxics value, annual average                   than the least costly, most cost-effective               the Executive Order to include
     toxics value, baseline volume,                          or least burdensome alternative if the                   regulations that have ‘‘substantial direct
     incremental volume and compliance                                                                                effects on the States, on the relationship
                                                               46 Burden means the total time, effort, or financial
     baseline. This addition (on top of the                                                                           between the national government and
                                                             resources expended by persons to generate,
     attest engagement requirements for the                  maintain, retain, or disclose or provide information     the States, or on the distribution of
     reformulated gasoline and anti-dumping                  to or for a Federal agency. This includes the time       power and responsibilities among the
     program attest engagement                               needed to review instructions; develop, acquire,         various levels of government.’’
     requirements) is expected to require                    install, and utilize technology and systems for the         The proposed rule has no federalism
                                                             purposes of collecting, validating, and verifying
     minimal additional resources.                           information, processing and maintaining
                                                                                                                      implications, as specified in Executive
        In summary, we believe that the                      information, and disclosing and providing                Order 13132. The standards finalized in
     additional data required by this                        information; adjust the existing ways to comply          today’s action do not change the
     rulemaking will require minimum effort                  with any previously applicable instructions and          existing form of the gasoline toxics
                                                             requirements; train personnel to be able to respond
     to prepare and submit, and can be                       to a collection of information; search data sources;
                                                                                                                      standard and therefore do not change
     submitted with the same data                            complete and review the collection of information;       the states’s rights with respect to
     submission forms pursuant to the                        and transmit or otherwise disclose the information.      gasoline air toxics controls. The


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     proposed standards will impose no                       to do so would be inconsistent with                   Business Regulatory Enforcement
     direct compliance costs on states. Thus,                applicable law or otherwise impractical.              Fairness Act of 1996, generally provides
     Executive Order 13132 does not apply                    Voluntary consensus standards are                     that before a rule may take effect, the
     to this rule.                                           technical standards (e.g., materials                  agency promulgating the rule must
        EPA consulted with state and local                   specifications, test methods, sampling                submit a rule report, which includes a
     officials in the process of developing the              procedures, business practices) that are              copy of the rule, to each House of the
     proposed regulation to permit them to                   developed or adopted by voluntary                     Congress and to the Comptroller General
     have meaningful and timely input into                   consensus standards bodies. The                       of the United States. EPA will submit a
     its development. In the spirit of                       NTTAA directs EPA to provide                          report containing this rule and other
     Executive Order 13132, and consistent                   Congress, through OMB, explanations                   required information to the U.S. Senate,
     with EPA policy to promote                              when the Agency decides not to use                    the U.S. House of Representatives, and
     communications between EPA and State                    available and applicable voluntary                    the Comptroller General of the United
     and local governments, EPA specifically                 consensus standards.                                  States prior to publication of this rule in
     solicits comment on this proposed rule                    This rule references technical                      the Federal Register. A major rule
     from State and local officials.                         standards adopted by the Agency                       cannot take effect until 60 days after it
                                                             through previous rulemakings. No new                  is published in the Federal Register.
     3. Executive Order 13084: Consultation
                                                             technical standards are established in                This rule is not a ‘‘major rule’’ as
     and Coordination With Indian Tribal
                                                             today’s rule. The standards referenced                defined by 5 U.S.C. 804(2). This rule
     Governments
                                                             in today’s rule involve the measurement               will be effective on May 29, 2001.
        Under Executive Order 13084, EPA                     of gasoline fuel parameters. The
     may not issue a regulation that is not                  measurement standards for gasoline fuel               X. Statutory Provisions and Legal
     required by statute, that significantly or              parameters referenced in today’s rule                 Authority
     uniquely affects the communities of                     are government-unique standards that                     The statutory authority for the fuels
     Indian tribal governments, and that                     were developed by the Agency through                  controls in today’s final rule can be
     imposes substantial direct compliance                   previous rulemakings. These standards                 found in sections 202 and 211(c) of the
     costs on those communities, unless the                  have served the Agency’s emissions                    Clean Air Act (CAA), as amended.
     Federal government provides the funds                   control goals well since their                        Additional support for the procedural
     necessary to pay the direct compliance                  implementation and have been well                     and enforcement-related aspects of the
     costs incurred by the tribal                            accepted by industry.                                 fuel controls in today’s rule, including
     governments, or EPA consults with
                                                             F. Executive Order 13045: Children’s                  the recordkeeping requirements, come
     those governments. If EPA complies by
                                                             Health Protection                                     from sections 114(a) and 301(a) of the
     consulting, Executive Order 13084
                                                                                                                   CAA.
     requires EPA to provide to the Office of                   Executive Order 13045: ‘‘Protection of
     Management and Budget, in a separately                  Children from Environmental Health                    List of Subjects
     identified section of the preamble to the               Risks and Safety Risks’’ (62 FR 19885,
                                                                                                                   40 CFR Part 80
     rule, a description of the extent of EPA’s              April 23, 1997) applies to any rule that:
     prior consultation with representatives                 (1) is determined to be economically                    Environmental protection, Fuel
     of affected tribal governments, a                       significant as defined under Executive                additives, Gasoline, Imports,
     summary of the nature of their concerns,                Order 12866, and (2) concerns an                      Incorporation by reference, Labeling,
     and a statement supporting the need to                  environmental health or safety risk that              Motor vehicle pollution, Penalties,
     issue the regulation. In addition,                      EPA has reason to believe may have a                  Reporting and recordkeeping
     Executive Order 13084 requires EPA to                   disproportionate effect on children. If               requirements.
     develop an effective process permitting                 the regulatory action meets both criteria,            40 CFR Part 86
     elected officials and other                             the Agency must evaluate the
     representatives of Indian tribal                        environmental health or safety effects of               Environmental protection,
     governments ‘‘to provide meaningful                     the planned rule on children, and                     Administrative practice and procedure,
     and timely input in the development of                  explain why the planned regulation is                 Confidential business information,
     regulatory policies on matters that                     preferable to other potentially effective             Labeling, Motor vehicle pollution,
     significantly or uniquely affect their                  and reasonably feasible alternatives                  Penalties, Reporting and recordkeeping
     communities.’’                                          considered by the Agency.                             requirements.
        Today’s rule does not create any                        This rule is not subject to the                      Dated: December 20, 2000.
     mandates or impose any obligations on                   Executive Order because it is not an                  Carol M. Browner,
     State, Local, or Tribal governments, and                economically significant regulatory                   Administrator.
     thus does not significantly or uniquely                 action as defined by Executive Order
     affect the communities of Indian tribal                 12866. In addition, data that provide a                 For the reasons set forth in the
     governments. Accordingly, the                           direct insight into the question of                   preamble, parts 80 and 86 of title 40 of
     requirements of section 3(b) of                         greater susceptibility in children are                the Code of Federal Regulations are
     Executive Order 13084 do not apply to                   lacking. Nevertheless, EPA believes that              amended as follows:
     this rule.                                              it is important to develop a better
                                                             understanding of the effects on public                PART 80—REGULATION OF FUELS
     E. National Technology Transfer and                                                                           AND FUEL ADDITIVES
                                                             health, including on children’s health,
     Advancement Act
                                                             of the MSATs identified in today’s rule.                1. The authority citation for part 80 is
       As noted in the proposed rule, section                Accordingly, EPA intends to address
     12(d) of the National Technology                                                                              revised to read as follows:
                                                             children’s health issues as part of its
     Transfer and Advancement Act of 1995                    Technical Analysis Plan.                                Authority: 42 U.S.C. 7414, 7521(l), 7545
     (NTTAA), Public Law 104–113, section                                                                          and 7601(a).
     12(d) (15 U.S.C. 272 note), directs EPA                 G. Congressional Review Act                             2. Section § 80.2 is amended by
     to use voluntary consensus standards                      The Congressional Review Act, 5                     revising paragraph (d) to read as
     (VCS) in its regulatory activities unless               U.S.C. 801 et seq., as added by the Small             follows:


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                            17263

     § 80.2   Definitions.                                   the Office of the Federal Register, 800               80.1020 [Reserved]
     *     *     *     *     *                               North Capitol Street, NW, Suite 700,                  80.1025 What penalties apply under this
       (d) Previously certified gasoline, or                 Washington, DC.                                           subpart?
     PCG, means gasoline or RBOB that                          4. Section 80.81 is amended by                      Provisions for Foreign Refiners With
     previously has been included in a batch                 revising paragraph (a) to read as follows:            Individual Toxics Baselines
     for purposes of complying with the                                                                            80.1030 What are the requirements for
     standards in Subparts D, E, H, and J of                 § 80.81 Enforcement exemptions for                        gasoline produced at foreign refineries
                                                             California gasoline.
     this part, as appropriate.                                                                                        having individual refiner toxics
                                                               (a) The requirements of subparts D, E,                  baselines?
     *     *     *     *     *
                                                             F and J of this part are modified in
       3. Section § 80.46 is amended by                                                                            Attest Engagements
                                                             accordance with the provisions
     revising paragraphs (e) and (h) to read                 contained in this section in the case of              80.1035 What are the attest engagement
     as follows:                                             California gasoline.                                      requirements for gasoline toxics
                                                                                                                       compliance applicable to refiners and
     § 80.46 Measurement of reformulated                     *     *     *     *     *                                 importers?
     gasoline fuel parameters.                                 5. Subpart J is added to part 80 to read            80.1040 [Reserved]
     *      *     *    *     *                               as follows:
                                                                                                                   Additional Rulemaking
        (e) Benzene. (1) Benzene content shall               Subpart J—Gasoline Toxics
     be determined using ASTM standard                                                                             80.1045 What additional rulemaking will
                                                             General Information                                       EPA conduct?
     method D–3606–99, entitled ‘‘Standard
     Test Method for Determination of                        Sec.
                                                             80.800–80.805 [Reserved]
                                                                                                                   Subpart J—Gasoline Toxics
     Benzene and Toluene in Finished Motor
     and Aviation Gasoline by Gas                            80.810 Who shall register with EPA under              General Information
                                                                  the gasoline toxics program?
     Chromatography’’; except that
                                                                                                                   § 80.800–80.805     [Reserved]
        (2) Instrument parameters shall be                   Gasoline Toxics Performance Requirements
     adjusted to ensure complete resolution                  80.815 What are the gasoline toxics                   § 80.810 Who shall register with EPA
     of the benzene, ethanol and methanol                        performance requirements for refiners             under the gasoline toxics program?
     peaks because ethanol and methanol                          and importers?                                       (a) Refiners and importers who are
     may cause interference with ASTM                        80.820 What gasoline is subject to the toxics
                                                                 performance requirements of this
                                                                                                                   registered by EPA under § 80.76 are
     standard method D–3606–99 when                                                                                deemed to be registered for purposes of
                                                                 subpart?
     present.                                                80.825 How is the refinery or importer                this subpart.
     *      *     *    *     *                                   annual average toxics value determined?              (b) Refiners and importers subject to
        (h) Incorporations by reference.                     80.830 What requirements apply to                     the standards in § 80.815 who are not
     ASTM standard methods D 2622–98                             oxygenate blenders?                               registered by EPA under § 80.76 shall
     ‘‘Standard Test Method for Sulfur in                    80.835 What requirements apply to butane              provide to EPA the information required
     Petroleum Products by Wavelength                            blenders?                                         by § 80.76 by October 1, 2001, or not
                                                             80.840 [Reserved]
     Dispersive X-ray Fluorescence                           80.845 What requirements apply to                     later than three months in advance of
     Spectrometry,’’ D 3246–96 ‘‘Standard                        California gasoline?                              the first date that such person produces
     Test Method for Sulfur in Petroleum Gas                 80.850 How is the compliance baseline                 or imports gasoline, whichever is later.
     by Oxidative Microcoulometry,’’ D                           determined?
                                                             80.855 What is the compliance baseline for            Gasoline Toxics Performance
     3606–99 ‘‘Standard Test Method for
                                                                 refineries or importers with insufficient         Requirements
     Determination of Benzene and Toluene
     in Finished Motor and Aviation                              data?
                                                                                                                   § 80.815 What are the gasoline toxics
                                                             80.860–80.905 [Reserved]
     Gasoline by Gas Chromatography,’’ D                                                                           performance requirements for refiners and
     1319–99 ‘‘Standard Test Method for                      Baseline Determination                                importers?
     Hydrocarbon Types in Liquid Petroleum                   80.910 How does a refiner or importer                   (a)(1) The gasoline toxics performance
     Products by Fluorescent Indicator                           apply for a toxics baseline?                      requirements of this subpart require that
     Adsorption,’’ D 4815–99 ‘‘Standard Test                 80.915 How are the baseline toxics value              the annual average toxics value of a
     Method for Determination of MTBE,                           and the baseline toxics volume                    refinery or importer be compared to that
     ETBE, TAME, DIPE, tertiary-Amyl                             determined?
                                                                                                                   refinery’s or importer’s compliance
                                                             80.920–80.980 [Reserved]
     Alcohol and C1 to C4 Alcohols in                                                                              baseline, where compliance has been
     Gasoline by Gas Chromatography,’’ and                   Recordkeeping and Reporting Requirements              achieved if—
     D 86–90 ‘‘Standard Test Method for                      80.985 What records shall be kept?                      (i) For conventional gasoline, the
     Distillation of Petroleum Products,’’                   80.990 What are the toxics reporting                  annual average toxics value is less than
     with the exception of the degrees                           requirements?                                     or equal to the compliance baseline;
     Fahrenheit figures in Table 9 of D 86–                  Exemptions                                              (ii) For reformulated gasoline and
     90, are incorporated by reference. These                                                                      RBOB, combined, the annual average
                                                             80.995 What if a refiner or importer is
     incorporations by reference were                            unable to produce gasoline conforming             toxics value is greater than or equal to
     approved by the Director of the Federal                     to the requirements of this subpart?              the compliance baseline.
     Register in accordance with 5 U.S.C.                    80.1000 What are the requirements for                   (A) Refineries that only produce
     552(a) and 1 CFR part 51. Copies may                        obtaining an exemption for gasoline used          RBOB and importers that only import
     be obtained from the American Society                       for research, development or testing              RBOB shall treat RBOB as reformulated
     for Testing and Materials, 100 Barr                         purposes?                                         gasoline for the purposes of determining
     Harbor Dr., West Conshohocken, PA                       Violation Provisions                                  compliance with the requirements of
     19428. Copies may be inspected at the                   80.1005 What acts are prohibited under the
                                                                                                                   this subpart.
     Air Docket Section (LE–131), room M–                        gasoline toxics program?                            (B) Refineries that produce both RFG
     1500, U.S. Environmental Protection                     80.1010 [Reserved]                                    and RBOB and importers that import
     Agency, Docket No. A–97–03, 401 M                       80.1015 Who is liable for violations under            both RFG and RBOB must combine any
     Street, SW, Washington, DC 20460, or at                     the gasoline toxics program?                      RFG and RBOB qualities and volumes


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     17264             Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

     for the purposes of determining                            (2) Toxics credits may be used to                    (e) Gasoline exempt per § 80.995.
     compliance with the requirements of                     offset a toxics deficit in the calendar                 (f) Gasoline exempt per § 80.1000.
     this subpart.                                           year following the year the credits are
                                                                                                                   § 80.825 How is the refinery or importer
       (2) The requirements under this                       generated, provided the following                     annual average toxics value determined?
     paragraph (a) shall be met by the                       criteria are met:
     importer for all imported gasoline,                        (i) Reformulated gasoline toxics                     (a) The refinery or importer annual
     except gasoline imported as Certified                                                                         average toxics value is calculated as
                                                             credits are only to be used to offset a
                                                                                                                   follows:
     Toxics-FRGAS under § 80.1030.                           reformulated gasoline toxics deficit;
       (b) The gasoline toxics requirements                  conventional gasoline credits are only to                                    n
     of this subpart apply separately for each
     of the following types of gasoline
                                                             be used to offset a conventional gasoline
                                                             toxics deficit.
                                                                                                                                        ∑ (Vi × Ti )
                                                                                                                                         i =1
     produced at a refinery or imported:                        (ii) A refiner only offsets a toxics                             Ta =            n
       (1) Reformulated gasoline and RBOB,
     combined;
                                                             deficit at a refinery with toxics credits
                                                             generated by that refinery.
                                                                                                                                                ∑ Vi
                                                                                                                                                i =1
       (2) Conventional gasoline.                               (iii) Credits generated on an aggregate
       (c) Compliance baseline. (1) The                                                                            Where:
                                                             basis may only be used to offset a deficit
     compliance baseline of a refinery or                                                                          Ta = The refinery or importer annual
                                                             calculated on an aggregate basis.
     importer is determined in accordance                       (iv) Credits used to offset a deficit                    average toxics value, as applicable.
     with § 80.915 or § 80.855, as applicable.                                                                     Vi = The volume of applicable gasoline
                                                             from the previous year may not also be
       (2) Refiners who have chosen, under                                                                               produced or imported in batch i.
                                                             carried forward to the following year.                Ti = The toxics value of batch i.
     subpart E of this part, to comply with                  Credits in excess of those used to offset             n = The number of batches of gasoline
     the requirements of subpart E of this                   a deficit from the previous year may be                     produced or imported during the
     part on an aggregate basis, shall comply                used to offset a deficit in the following                   averaging period.
     with the requirements of this subpart on                year.                                                 i = Individual batch of gasoline
     the same aggregate basis.                                  (v) Only toxics credits generated                        produced or imported during the
       (d) Compliance determination. (1)                     under this subpart may be used to offset                    averaging period.
     The gasoline toxics performance                         a toxics deficit created under this                      (b) The calculation specified in
     requirements of this subpart apply to                   subpart.                                              paragraph (a) of this section shall be
     gasoline produced at a refinery or
                                                             § 80.820 What gasoline is subject to the              made separately for each type of
     imported by an importer during each
                                                             toxics performance requirements of this               gasoline specified at § 80.815(b).
     calendar year starting January 1, 2002.                                                                          (c) The toxics value, Ti, of each batch
                                                             subpart?
     The averaging period is January 1                                                                             of gasoline is determined using the
     through December 31 of each year.                          For the purpose of this subpart, all
                                                             reformulated gasoline, conventional                   Phase II Complex Model specified at
       (2) The annual average toxics value is                                                                      § 80.45.
     calculated in accordance with § 80.825.                 gasoline and RBOB, collectively called
                                                                                                                      (1) The toxics value, Ti, of each batch
       (e) Deficit carryforward. (1) A refinery              ‘‘gasoline’’ unless otherwise specified, is
                                                                                                                   of reformulated gasoline or RBOB, and
     or importer creates a toxics deficit,                   subject to the requirements under this
                                                                                                                   the annual average toxics value, Ta, for
     separately for reformulated gasoline and                subpart, as applicable, with the
                                                                                                                   reformulated gasoline and RBOB,
     conventional gasoline, for a given                      following exceptions:
                                                                                                                   combined, under this subpart are in
     averaging period, when—                                    (a) Gasoline that is used to fuel
                                                                                                                   percent reduction from the statutory
       (i) For conventional gasoline, its                    aircraft, racing vehicles or racing boats
                                                                                                                   baseline described in § 80.45(b) and
     annual average toxics value is greater                  that are used only in sanctioned racing
                                                                                                                   volumes are in gallons.
     than the compliance baseline;                           events, provided that:                                   (2) The toxics value, Ti, of each batch
       (ii) For reformulated gasoline and                       (1) Product transfer documents                     of conventional gasoline, and the annual
     RBOB, combined, the annual average                      associated with such gasoline, and any                average toxics value, Ta, for
     toxics value is less than the compliance                pump stand from which such gasoline                   conventional gasoline under this
     baseline.                                               is dispensed, identify the gasoline either            subpart are in milligrams per mile (mg/
       (2) In the calendar year following the                as gasoline that is restricted for use in             mile) and volumes are in gallons.
     year the toxics deficit is created, the                 aircraft, or as gasoline that is restricted              (d) All refinery or importer annual
     refinery or importer shall:                             for use in racing motor vehicles or                   average toxics value calculations shall
       (i) Achieve compliance with the                       racing boats that are used only in                    be conducted to two decimal places.
     refinery or importer toxics performance                 sanctioned racing events;                                (e) A refiner or importer may include
     requirement specified in paragraph (a)                     (2) The gasoline is completely                     oxygenate added downstream from the
     of this section; and                                    segregated from all other gasoline                    refinery or import facility when
       (ii) Generate additional toxics credits               throughout production, distribution and               calculating the toxics value, provided
     sufficient to offset the toxics deficit of              sale to the ultimate consumer; and                    the following requirements are met:
     the previous year.                                         (3) The gasoline is not made available                (1) For oxygenate added to
       (f) Credit carryforward. (1) A refinery               for use as motor vehicle gasoline, or                 conventional gasoline, the refiner or
     or importer generates toxics credits,                   dispensed for use in motor vehicles,                  importer shall comply with the
     separately for reformulated gasoline and                except for motor vehicles used only in                requirements of § 80.101(d)(4)(ii).
     conventional gasoline, for a given                      sanctioned racing events.                                (2) For oxygenate added to RBOB, the
     averaging period, when—                                    (b) Gasoline that is exported for sale             refiner or importer shall comply with
       (i) For conventional gasoline, its                    outside the U.S.                                      the requirements of § 80.69(a).
     annual average toxics value is less than                   (c) Gasoline designated as California                 (f) Gasoline excluded. Refiners and
     the compliance baseline;                                gasoline under § 80.845, and used in                  importers shall exclude from
       (ii) For reformulated gasoline and                    California.                                           compliance calculations all of the
     RBOB, combined, the annual average                         (d) Gasoline used in American Samoa,               following:
     toxics value is greater than the                        Guam and the Commonwealth of the                         (1) Gasoline that was not produced at
     compliance baseline.                                    Northern Mariana Islands.                             the refinery;


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       (2) In the case of an importer, gasoline                               TBase × VBase + TExist × Vinc         § 80.860–80.905     [Reserved]
     that was imported as Certified Toxics-                        TCBase =
                                                                                      VBase + Vinc                  Baseline Determination
     FRGAS under § 80.1030;
       (3) Blending stocks transferred to                    Where:                                                 § 80.910 How does a refiner or importer
     others;                                                                                                        apply for a toxics baseline?
       (4) Gasoline that has been included in                TCBase = Compliance baseline toxics
                                                                  value.                                               (a) A refiner or importer shall submit
     the compliance calculations for another                                                                        an application to EPA which includes
     refinery or importer; and                               TBase = Baseline toxics value for the
                                                                                                                    the information required under
       (5) Gasoline exempted from standards                       refinery or importer, calculated
                                                                                                                    paragraph (c) of this section no later
     under § 80.820.                                              according to § 80.915(b)(1).
                                                                                                                    than June 30, 2001 or 3 months prior to
                                                             VBase = Baseline volume for the refinery               the first introduction of gasoline into
     § 80.830 What requirements apply to
     oxygenate blenders?
                                                                  or importer, calculated according to              commerce from the refinery or by the
                                                                  § 80.915(b)(2).                                   importer, whichever is later.
       Oxygenate blenders who blend
     oxygenate into gasoline downstream of                   TExist = Existing toxics standard, per                    (b) The toxics baseline request shall
     the refinery that produced the gasoline                      paragraph (b) of this section.                    be sent to: U.S. EPA, Attn: Toxics
     or the import facility where the gasoline               Vinc = Volume of gasoline produced                     Program (6406J), 401 M Street SW,
     was imported are not subject to the                          during the averaging period in                    Washington, DC 20460. For commercial
     requirements of this subpart applicable                      excess of VBase.                                  (non-postal) delivery: U.S. EPA, Attn:
     to refiners for this gasoline.                            (b) The value of existing toxics                     Toxics Program, 501 3rd Street NW,
                                                             standard, TExist, is equal to:                         Washington, DC 20001.
     § 80.835 What requirements apply to                                                                               (c) The toxics baseline application
     butane blenders?                                          (1) 21.5 percent, for reformulated                   shall include the following information:
       Butane blenders who blend butane                      gasoline and RBOB, combined;                              (1) A listing of the names and
     into gasoline downstream of the refinery                  (2) The refinery’s or importer’s anti-               addresses of all refineries owned by the
     that produced the gasoline or the import                dumping compliance baseline value for                  company for which the refiner is
     facility where the gasoline was imported                exhaust toxics, in mg/mi, per                          applying for a toxics baseline, or the
     are not subject to the requirements of                  § 80.101(f), for conventional gasoline.                name and address of the importer
     this subpart applicable to refiners for                   (c) If the refinery or importer                      applying for a toxics baseline.
     this gasoline.                                          produced less gasoline during the                         (2) For each refinery and importer—
                                                             compliance period than its baseline                       (i) The baseline toxics value for each
     § 80.840   [Reserved]                                   volume VBase, the value of Vinc will be                type of gasoline, per § 80.815(b),
     § 80.845 What requirements apply to                     zero.                                                  calculated in accordance with § 80.915;
     California gasoline?                                                                                              (ii) The baseline toxics volume for
                                                             § 80.855 What is the compliance baseline               each type of gasoline, per § 80.815(b),
        (a) Definition. For purposes of this                 for refineries or importers with insufficient
     subpart ‘‘California gasoline’’ means any                                                                      calculated in accordance with § 80.915;
                                                             data?                                                     (iii) For those with insufficient data
     gasoline designated by the refiner or
                                                                (a) A refinery or importer shall use the            pursuant to § 80.855, a statement that
     importer as for use in California.
        (b) California gasoline exemption.                   methodology specified in this section                  the refinery’s or importer’s baseline
     California gasoline that complies with                  for determining a compliance baseline if               toxics value is the default compliance
     all the requirements of this section is                 it cannot determine an applicable toxics               baseline specified at § 80.855(b), and
     exempt from all other provisions of this                value for every batch of gasoline                      that its baseline toxics volume is zero.
     subpart.                                                produced or imported for 12 or more                       (3) A letter signed by the president,
        (c) Requirements for California                      consecutive months during January 1,                   chief operating or chief executive
     gasoline. (1) Each batch of California                  1998 through December 31, 2000.                        officer, of the company, or his/her
     gasoline shall be designated as such by                    (b)(1) A refinery or importer that                  delegate, stating that the information
     its refiner or importer.                                cannot determine an applicable toxics                  contained in the toxics baseline
        (2) [Reserved]                                       value on every batch of gasoline                       determination is true to the best of his/
        (3) Designated California gasoline                   produced or imported for 12 or more                    her knowledge.
     must ultimately be used in the State of                 consecutive months during the period                      (4) Name, address, phone number,
     California and not used elsewhere.                      January 1, 1998 through December 31,                   facsimile number and E-mail address of
        (4) In the case of California gasoline               2000 or a refinery or importer that did                a company contact person.
     produced outside the State of California,               not produce or import reformulated                        (5) The following information for each
     the transferors and transferees shall                   gasoline and/or RBOB (combined) or                     batch of gasoline produced or imported
     meet the product transfer document                      conventional gasoline or both during the               during the period 1998–2000, separately
     requirements under § 80.81(g).                          period between January 1, 1998 and                     for each type of gasoline listed at
        (5) Gasoline that is ultimately used in              December 31, 2000, inclusive, shall                    § 80.815(b):
     any part of the United States outside of                have the following as its compliance                      (i) Batch number assigned to the batch
     the State of California shall comply with               baseline for the purposes of this subpart:             under § 80.65(d) or § 80.101(i);
     the standards and requirements of this                                                                            (ii) Volume; and
                                                                (i) For conventional gasoline, 94.64                   (iii) Applicable toxics value
     subpart, regardless of any designation as               mg/mile.
     California gasoline.                                                                                           determined as specified at § 80.915(c).
                                                                (ii) For reformulated gasoline, 26.71                  (d) Foreign refiners shall follow the
     § 80.850 How is the compliance baseline                 percent reduction from statutory                       procedures specified in § 80.1030(b) to
     determined?                                             baseline.                                              establish individual toxics baseline
       (a) The compliance baseline to which                     (2) By October 31, 2001, EPA will                   values for a foreign refinery.
     annual average toxics values are                        revise by regulation the default baseline                 (e) By October 31, 2001, or 4 months
     compared according to § 80.815(a) is                    values specified in paragraph (b)(1) of                after the submission date, whichever is
     calculated according to the following                   this section to reflect the final 1998–                later, EPA will notify the submitter of
     equation:                                               2000 average toxics values.                            approval of its toxics baseline.


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     17266             Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

       (f) If at any time the baseline                                                     n                         (ii) A narrative describing how the
     submitted in accordance with the                                                     ∑ Vi                     circumstances during 1998–2000
     requirements of this section is                                                      i =1                     materially affected the baseline toxics
                                                                               Vbase =
     determined to be incorrect, the                                                           Y                   value calculated under paragraph (a) of
     corrected baseline applies ab initio and                Where:                                                this section. The narrative shall also
     the annual average toxics requirements                  Vbase = Baseline toxics volume.                       describe and show the calculations, and
     are deemed to be those applicable under                 Vi = Volume of gasoline batch i                       the reasoning supporting the
     the corrected information.                                    produced or imported between                    calculations, used to determine the
                                                                   January 1, 1998 and December 31,                adjusted values.
     § 80.915 How are the baseline toxics value
                                                                   2000, inclusive.                                  (h) The compliance margin, M, that
     and baseline toxics volume determined?
                                                             i = Individual batch of gasoline                      will be added to the toxics baseline
        (a)(1) A refinery or importer shall use                    produced or imported between                    calculated according to paragraph (a) of
     the methodology specified in this                             January 1, 1998 and December 31,                this section shall be equal to:
     section for determining a baseline toxics                     2000, inclusive.                                  (1) ¥0.7% for reformulated gasoline
     value if it can determine an applicable                 n = Total number of batches of gasoline               or RBOB;
     toxics value for every batch of gasoline                      produced or imported between                      (2) 2.5 mg/mile for conventional
     produced or imported for 12 or more                           January 1, 1998 and December 31,                gasoline.
     consecutive months during January 1,                          2000, inclusive.
     1998 through December 31, 2000.                         Y = Number of years between 1998 and                  § 80.920–80.980     [Reserved]
        (2) The determination in paragraph                         2000, inclusive, during some or all             Recordkeeping and Reporting
     (a)(1) of this section is made separately                     of which the refinery produced, or              Requirements
     for each type of gasoline listed at                           the importer imported, gasoline.
     § 80.815(b) produced or imported                           (c) The calculation specified in                   § 80.985   What records shall be kept?
     between January 1, 1998 and December                    paragraph (b) of this section shall be                   (a) The recordkeeping requirements
     31, 2000, inclusive.                                    made separately for each type of                      specified under § 80.74 applicable to
        (3) All consecutive and non-                         gasoline listed at § 80.815(b).                       refiners and importers of reformulated
     consecutive batch toxics measurements                      (d) The toxics value, Ti, of each batch            gasoline, RBOB and/or conventional
     between January 1, 1998 and December                    of gasoline is determined using the                   gasoline apply under this subpart,
     31, 2000, inclusive, are to be included                 Phase II Complex Model specified at                   however, duplicate records are not
     in the baseline determination, unless                   § 80.45.                                              required.
     the refinery or importer petitions EPA to                  (1) The toxics value, Ti, of each batch               (b) Additional records that refiners
     exclude such data on the basis of data                  of reformulated gasoline or RBOB, and                 and importers shall keep. Beginning
     quality, per § 80.91(d)(6), and receives                the baseline toxics value, TBase, for                 January 1, 2002, any refiner for each of
     permission from EPA to exclude such                     reformulated gasoline and RBOB,                       its refineries, and any importer for the
     data.                                                   combined, under this subpart are in                   gasoline it imports, shall keep records
        (b)(1) A refinery’s or importer’s                    percent reduction from the statutory                  that include the following information:
     baseline toxics value is calculated using               baseline defined in 40 CFR 80.45(b) and                  (1) The calculations used to determine
     the following equation:                                 volumes are in gallons.                               the applicable compliance baseline
                                                                (2) The toxics value, Ti, of each batch            under § 80.915.
                          n                                  of conventional gasoline, and the
                                                                                                                      (2) The calculations used to determine
                         ∑ (Vi × Ti )                        baseline toxics value, TBase, for
                                                             conventional gasoline under this
                                                                                                                   compliance with the applicable toxics
                         i =1
               TBase =           n
                                           +M                subpart are in milligrams per mile (mg/
                                                                                                                   requirements per § 80.815.

                                ∑ Vi
                                                                                                                      (3) A copy of all reports submitted to
                                                             mile) and volumes are in gallons.
                                                                (e) All refinery or importer baseline              EPA under § 80.990, however, duplicate
                                i =1                                                                               records are not required.
                                                             toxics value calculations shall be
     Where:                                                  conducted to two decimal places.                         (c) Additional records importers shall
     TBase = Baseline toxics value.                             (f) Any refinery for which oxygenate               keep. Any importer shall keep records
     Vi = Volume of gasoline batch i                         blended downstream was included in                    that identify and verify the source of
          produced or imported between                       compliance calculations for 1998–2000,                each batch of Certified Toxics-FRGAS
          January 1, 1998 and December 31,                   pursuant to § 80.65 or § 80.101(d)(4),                and Non-Certified Toxics-FRGAS
          2000, inclusive.                                   shall include this oxygenate in the                   imported and demonstrate compliance
     Ti = Toxics value of gasoline batch i                   baseline calculations for toxics value                with the requirements for importers
          produced or imported between                       under paragraph (a) of this section.                  under § 80.1030(o).
          January 1, 1998 and December 31,                      (g) Baseline adjustment. (1) A toxics                 (d) Length of time records shall be
          2000, inclusive.                                   baseline determined differently than                  kept. The records required in this
                                                             described in paragraphs (a) through (e)               section shall be kept for five years from
     i = Individual batch of gasoline
                                                             of this section may be allowed upon                   the date they were created.
          produced or imported between
                                                             petition by the refiner or importer and                  (e) Make records available to EPA. On
          January 1, 1998 and December 31,
                                                             approval by the Administrator or                      request by EPA the records required in
          2000, inclusive.
                                                             designee. The petition must be included               paragraphs (a), (b) and (c) of this section
     n = Total number of batches of gasoline                                                                       shall be provided to the Administrator’s
          produced or imported between                       with the baseline submittal under
                                                             § 80.910.                                             authorized representative. For records
          January 1, 1998 and December 31,                                                                         that are electronically generated or
                                                                (2) A toxics baseline adjustment
          2000, inclusive.                                                                                         maintained the equipment and software
                                                             petition shall, at minimum, be
     M = Compliance margin.                                  accompanied by:                                       necessary to read the records shall be
        (2) A refinery’s or importer’s baseline                 (i) Unadjusted and adjusted baseline               made available, or upon approval by
     toxics volume is calculated using the                   fuel parameters, applicable toxics                    EPA, electronic records shall be
     following equation:                                     values, and volumes; and                              converted to paper documents which


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     shall be provided to the Administrator’s                § 80.1000 What are the requirements for               requirements during any averaging
     authorized representative.                              obtaining an exemption for gasoline used              period, is subject to a separate day of
                                                             for research, development or testing                  violation for each and every day in the
     § 80.990 What are the toxics reporting                  purposes?                                             averaging period.
     requirements?                                             Gasoline used for research,                           (c) Any person liable under
       Beginning with the 2002 averaging                     development or testing purposes is                    § 80.1015(b) for failure to meet, or
     period, and continuing for each                         exempt from the requirements of this                  causing a failure to meet, a provision of
                                                             subpart if it is exempted for these                   this subpart is liable for a separate day
     averaging period thereafter, any refiner
                                                             purposes under the reformulated and                   of violation for each and every day such
     or importer shall submit to EPA the
                                                             conventional gasoline programs, as                    provision remains unfulfilled.
     information required in this section, and
                                                             applicable.
     such other information as EPA may                                                                             Provisions for Foreign Refiners With
     require.                                                Violation Provisions                                  Individual Toxics Baselines
       (a) Refiner and importer annual                       § 80.1005 What acts are prohibited under              § 80.1030 What are the requirements for
     reports. Any refiner, for each of its                   the gasoline toxics program?                          gasoline produced at foreign refineries
     refineries and/or aggregate(s) of                          No person shall:                                   having individual refiner toxics baselines?
     refineries, and any importer for the                       (a) Averaging violation. Produce or                   (a) Definitions. (1) A foreign refinery
     gasoline it imports, shall:                             import gasoline subject to this subpart               is a refinery that is located outside the
       (1) Include in its reformulated                       that does not comply with the                         United States, the Commonwealth of
     gasoline toxics emissions performance                   applicable toxics requirement under                   Puerto Rico, the Virgin Islands, Guam,
     averaging report per § 80.75(e) the                     § 80.815.                                             American Samoa, and the
     compliance baseline and incremental                        (b) Causing an averaging use                       Commonwealth of the Northern Mariana
                                                             violation. Cause another person to                    Islands (collectively referred to in this
     volume, Vinc, for its reformulated
                                                             commit an act in violation of paragraph               section as ‘‘the United States’’).
     gasoline and RBOB, combined, per                                                                                 (2) A foreign refiner is a person who
     § 80.850.                                               (a) of this section.
                                                                                                                   meets the definition of refiner under
       (2) Include in its conventional                       § 80.1010    [Reserved]                               § 80.2(i) for a foreign refinery.
     gasoline report per § 80.105 the                        § 80.1015 Who is liable for violations
                                                                                                                      (3) Toxics-FRGAS means gasoline
     compliance baseline and incremental                     under the gasoline toxics program?                    produced at a foreign refinery that has
     volume, Vinc, for its conventional                                                                            been assigned an individual refinery
                                                                (a) Persons liable for violations of
     gasoline per § 80.850.                                                                                        toxics baseline under § 80.915 and that
                                                             prohibited acts—(1) Averaging
       (3) Exclude Certified Toxics-FRGAS                                                                          is imported into the U.S.
                                                             violation. Any person who violates                       (4) Non-Toxics-FRGAS means
     under § 80.1030, if an importer.                        § 80.1005(a) is liable for the violation.             gasoline that is produced at a foreign
       (b) Additional reporting requirements                    (2) Causing an averaging violation.
                                                                                                                   refinery that has not been assigned an
     for importers. Any importer shall report                Any person who causes another party to
                                                                                                                   individual refinery toxics baseline,
     the following information for Toxics-                   violate § 80.1005(a), is liable for a
                                                                                                                   gasoline produced at a foreign refinery
     FRGAS imported during the averaging                     violation of § 80.1005(b).
                                                                                                                   with an individual refinery toxics
                                                                (3) Parent corporation liability. Any
     period:                                                                                                       baseline that is not imported into the
                                                             parent corporation is liable for any
       (1) The EPA refiner and refinery                                                                            United States, and gasoline produced at
                                                             violations of this subpart that are
     registration numbers of each foreign                                                                          a foreign refinery with an individual
                                                             committed by any of its wholly-owned
     refiner and refinery where the Certified                                                                      toxics baseline during a year when the
                                                             subsidiaries.
     Toxics-FRGAS was produced; and                                                                                foreign refiner has opted to not
                                                                (b) Persons liable for failure to meet
                                                                                                                   participate in the Toxics-FRGAS
       (2) The total gallons of Certified                    other provisions of this subpart. (1) Any
                                                                                                                   program under paragraph (c)(3) of this
     Toxics-FRGAS and Non-Certified                          person who fails to meet a provision of
                                                                                                                   section.
     Toxics-FRGAS imported from each                         this subpart not addressed in paragraph                  (5) Certified Toxics-FRGAS means
     foreign refiner and refinery.                           (a) of this section is liable for a violation         Toxics-FRGAS the foreign refiner
                                                             of that provision.                                    intends to include in the foreign
     Exemptions                                                 (2) Any person who causes another
                                                                                                                   refinery’s toxics compliance
                                                             party to fail to meet a requirement of
     § 80.995 What if a refiner or importer is                                                                     calculations under § 80.825, and does
                                                             this subpart not addressed in paragraph
     unable to produce gasoline conforming to                                                                      include in these compliance
                                                             (a) of this section, is liable for causing
     the requirements of this subpart?                                                                             calculations when reported to EPA.
                                                             a violation of that provision.                           (6) Non-Certified Toxics-FRGAS
       In appropriate extreme and unusual                                                                          means Toxics-FRGAS that is not
     circumstances (e.g., natural disaster or                § 80.1020    [Reserved]
                                                                                                                   Certified Toxics-FRGAS.
     Act of God) which are clearly outside                   § 80.1025    What penalties apply under this             (b) Baseline establishment. Any
     the control of the refiner or importer                  subpart?                                              foreign refiner may submit a petition to
     and which could not have been avoided                     (a) Any person liable for a violation               the Administrator for an individual
     by the exercise of prudence, diligence,                 under § 80.1015 is subject to civil                   refinery toxics baseline pursuant to
     and due care, EPA may permit a refiner                  penalties as specified in sections 205                § 80.915 for all gasoline that was
     or importer, for a brief period, to not                 and 211(d) of the Clean Air Act for                   produced at the foreign refinery and
     meet the requirements of this subpart,                  every day of each such violation and the              imported into the United States between
     separately for reformulated gasoline                    amount of economic benefit or savings                 January 1, 1998 and December 31, 2000.
     (and RBOB, combined) and                                resulting from each violation.                           (1) The refiner shall follow the
     conventional gasoline, provided the                       (b) Any person liable under                         procedures specified in §§ 80.91
     refiner or importer meets all the criteria,             § 80.1015(a) for a violation of the                   through 80.93 to establish an anti-
     requirements and conditions contained                   applicable toxics requirements or                     dumping baseline, if it does not already
     in § 80.73 (a) through (e).                             causing another party to violate the                  have such a baseline.


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        (2) In making determinations for                        (A) Apply to an entire calendar year               compliance calculations under § 80.825
     foreign refinery baselines, EPA will                    averaging period, and apply to all                    for the refinery that produced the
     consider all information supplied by a                  gasoline produced during the calendar                 Toxics-FRGAS.
     foreign refiner, and in addition may rely               year at the foreign refinery that is used                (ii) The verification shall be made part
     on any and all appropriate assumptions                  in the United States; and                             of the product transfer documents for
     necessary to make such determinations.                     (B) Remain in effect for each                      the Toxics-FRGAS.
        (3)(i) Where a foreign refiner submits               succeeding calendar year averaging                       (e) Transfers of Toxics-FRGAS to non-
     a petition that is incomplete or                        period, unless and until the foreign                  United States markets. The foreign
     inadequate to establish an accurate                     refiner notifies EPA of a termination of              refiner is responsible to ensure that all
     toxics baseline, and the refiner fails to               the election. The change in election                  gasoline classified as Toxics-FRGAS is
     cure this defect after a request for more               shall take effect at the beginning of the             imported into the United States. A
     information, EPA will not assign an                     next calendar year.                                   foreign refiner may remove the Toxics-
     individual refinery toxics baseline.                       (4) In the case of information required            FRGAS classification, and the gasoline
        (ii) If a foreign refiner does not                   under this section which would                        need not be imported into the United
     already have an anti-dumping                            duplicate information submitted in                    States, but only if:
     individual baseline per § 80.94, and if                 accordance with § 80.94, the refiner may                 (1)(i) The foreign refiner excludes:
     pursuant to § 80.94(b)(5) EPA does not                  indicate that such information is also                   (A) The volume of gasoline from the
     assign an individual anti-dumping                       submitted in accordance with the                      refinery’s compliance calculations
     baseline, EPA will also not assign an                   requirements of this section. Duplicate               under § 80.825; and
     individual refinery toxics baseline.                    submissions are not required.                            (B) In the case of Certified Toxics-
        (c) General requirements for foreign                    (d) Designation, product transfer                  FRGAS, the volume and toxics value of
     refiners with individual refinery toxics                documents, and foreign refiner                        the gasoline from the compliance
     baselines. A foreign refiner of a refinery              certification. (1) Any foreign refiner of a           calculations under § 80.825.
     that has been assigned an individual                    foreign refinery that has been assigned                  (ii) The exclusions under paragraph
     toxics baseline according to § 80.915                   an individual toxics baseline shall                   (e)(1)(i) of this section shall be on the
     shall designate all gasoline produced at                designate each batch of Toxics-FRGAS                  basis of the toxics value and volumes
     the foreign refinery that is exported to                as such at the time the gasoline is                   determined under paragraph (f) of this
     the United States as either Certified                   produced, unless the refiner has elected              section; and
     Toxics-FRGAS or as Non-Certified                        to classify no gasoline exported to the                  (2) The foreign refiner obtains
     Toxics-FRGAS, except as provided in                     United States as Toxics-FRGAS under                   sufficient evidence in the form of
     paragraph (c)(3) of this section.                       paragraph (c)(3)(i) of this section.                  documentation that the gasoline was not
        (1) In the case of Certified Toxics-                    (2) On each occasion when any                      imported into the United States.
     FRGAS, the foreign refiner shall meet all               person transfers custody or title to any                 (f) Load port independent sampling,
     provisions that apply to refiners under                 Toxics-FRGAS prior to its being                       testing and refinery identification. (1)
     this subpart J.                                         imported into the United States, it shall             On each occasion Toxics-FRGAS is
        (2) In the case of Non-Certified                     include the following information as                  loaded onto a vessel for transport to the
     Toxics-FRGAS, the foreign refiner shall                 part of the product transfer document                 United States a foreign refiner shall
     meet all the following provisions,                      information in this section:                          have an independent third party:
     except the foreign refiner shall use the                   (i) Identification of the gasoline as                 (i) Inspect the vessel prior to loading
     name Non-Certified Toxics-FRGAS                         Certified Toxics-FRGAS or as Non-                     and determine the volume of any tank
     instead of the names ‘‘reformulated                     Certified Toxics-FRGAS; and                           bottoms;
     gasoline’’ or ‘‘RBOB’’ wherever they                       (ii) The name and EPA refinery                        (ii) Determine the volume of Toxics-
     appear in the following provisions:                     registration number of the refinery                   FRGAS loaded onto the vessel
        (i) The designation requirements in                  where the Toxics-FRGAS was produced.                  (exclusive of any tank bottoms present
     this section.                                              (3) On each occasion when Toxics-                  before vessel loading);
        (ii) The recordkeeping requirements                  FRGAS is loaded onto a vessel or other                   (iii) Obtain the EPA-assigned
     under § 80.985.                                         transportation mode for transport to the              registration number of the foreign
        (iii) The reporting requirements in                  United States, the foreign refiner shall              refinery;
     § 80.990 and this section.                              prepare a written verification for each                  (iv) Determine the name and country
        (iv) The product transfer document                   batch of the Toxics-FRGAS that meets                  of registration of the vessel used to
     requirements in this section.                           the following requirements:                           transport the Toxics-FRGAS to the
        (v) The prohibitions in this section                    (i) The verification shall include the             United States; and
     and § 80.1005.                                          report of the independent third party                    (v) Determine the date and time the
        (vi) The independent audit                           under paragraph (f) of this section, and              vessel departs the port serving the
     requirements under § 80.1035,                           the following additional information:                 foreign refinery.
     paragraph (h) of this section, §§ 80.125                   (A) The name and EPA registration                     (2) On each occasion Certified Toxics-
     through 80.127, § 80.128(a), (b), (c), (g)              number of the refinery that produced                  FRGAS is loaded onto a vessel for
     through (i), and § 80.130.                              the Toxics-FRGAS;                                     transport to the United States a foreign
        (3)(i) Any foreign refiner that has been                (B) The identification of the gasoline             refiner shall have an independent third
     assigned an individual toxics baseline                  as Certified Toxics-FRGAS or Non-                     party:
     for a foreign refinery under § 80.915                   Certified Toxics-FRGAS;                                  (i) Collect a representative sample of
     may elect to classify no gasoline                          (C) The volume of Toxics-FRGAS                     the Certified Toxics-FRGAS from each
     imported into the United States as                      being transported, in gallons;                        vessel compartment subsequent to
     Toxics-FRGAS, provided the foreign                         (D) In the case of Certified Toxics-               loading on the vessel and prior to
     refiner notifies EPA of the election no                 FRGAS:                                                departure of the vessel from the port
     later than November 1 of the prior                         (1) The toxics value as determined                 serving the foreign refinery;
     calendar year.                                          under paragraph (f) of this section; and                 (ii) Prepare a volume-weighted vessel
        (ii) An election under paragraph                        (2) A declaration that the Toxics-                 composite sample from the
     (c)(3)(i) of this section shall:                        FRGAS is being included in the                        compartment samples, and determine


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                         17269

     the value for toxics using the                          paragraph (g)(2)(i) of this section are met           paragraph (f) of this section, and of the
     methodology specified in § 80.730 by:                   at the first United States port of entry,             United States importer under paragraph
        (A) The third party analyzing the                    the requirements of paragraph (g)(2) of               (o) of this section.
     sample; or                                              this section do not apply at subsequent                  (A) Agree the information in these
        (B) The third party observing the                    ports of entry if the United States                   reports with regard to vessel
     foreign refiner analyze the sample;                     importer obtains a certification from the             identification, gasoline volumes and test
        (iii) Review original documents that                 vessel owner, that meets the                          results.
     reflect movement and storage of the                     requirements of paragraph (s) of this                    (B) Identify, and report as a finding,
     Certified Toxics-FRGAS from the                         section, that the vessel has not loaded               each occasion the load port and port of
     refinery to the load port, and from this                any gasoline or blendstock between the                entry parameter and volume results
     review determine:                                       first United States port of entry and the             differ by more than the amounts
        (A) The refinery at which the Toxics-                subsequent port of entry.                             allowed in paragraph (g) of this section,
     FRGAS was produced; and                                    (2)(i) The requirements of this                    and determine whether the foreign
        (B) That the Toxics-FRGAS remained                   paragraph (g)(2) apply if:                            refiner adjusted its refinery calculations
     segregated from:                                           (A) The temperature-corrected                      as required in paragraph (g) of this
        (1) Non-Toxics-FRGAS and Non-                        volumes determined at the port of entry               section.
     Certified Toxics-FRGAS; and                             and at the load port differ by more than                 (ii) Obtain the documents used by the
        (2) Other Certified Toxics-FRGAS                     one percent; or                                       independent third party to determine
     produced at a different refinery.                          (B) The toxics value determined at the             transportation and storage of the
        (3) The independent third party shall                port of entry is higher than the toxics               Certified Toxics-FRGAS from the
     submit a report:                                        value determined at the load port, and                refinery to the load port, under
        (i) To the foreign refiner containing                the amount of this difference is greater              paragraph (f) of this section. Obtain tank
     the information required under                          than the reproducibility amount                       activity records for any storage tank
     paragraphs (f)(1) and (2) of this section,              specified for the port of entry test result           where the Certified Toxics-FRGAS is
     to accompany the product transfer                       by the American Society of Testing and                stored, and pipeline activity records for
     documents for the vessel; and                           Materials (ASTM).                                     any pipeline used to transport the
        (ii) To the Administrator containing                    (ii) The United States importer and                Certified Toxics-FRGAS, prior to being
     the information required under                          the foreign refiner shall treat the                   loaded onto the vessel. Use these
     paragraphs (f)(1) and (2) of this section,              gasoline as Non-Certified Toxics-                     records to determine whether the
     within thirty days following the date of                FRGAS, and the foreign refiner shall                  Certified Toxics-FRGAS was produced
     the independent third party’s                           exclude the gasoline volume and                       at the refinery that is the subject of the
     inspection. This report shall include a                 properties from its gasoline toxics                   attest engagement, and whether the
     description of the method used to                       compliance calculations under § 80.825.               Certified Toxics-FRGAS was mixed with
     determine the identity of the refinery at                  (h) Attest requirements. The following             any Non-Certified Toxics-FRGAS, Non-
     which the gasoline was produced,                        additional procedures shall be carried                Toxics-FRGAS, or any Certified Toxics-
     assurance that the gasoline remained                    out by any foreign refiner of Toxics-                 FRGAS produced at a different refinery.
     segregated as specified in paragraph                    FRGAS as part of the applicable attest                   (5) Select a sample from the list of
     (n)(1) of this section, and a description               engagement for each foreign refinery                  vessels identified in paragraph (h)(3) of
     of the gasoline’s movement and storage                  under § 80.1035:                                      this section used to transport Certified
     between production at the source                           (1) The inventory reconciliation                   and Non-Certified Toxics-FRGAS, in
     refinery and vessel loading.                            analysis under § 80.128(b) and the                    accordance with the guidelines in
        (4) The independent third party shall:               tender analysis under § 80.128(c) shall               § 80.127, and for each vessel selected
        (i) Be approved in advance by EPA,                   include Non-Toxics-FRGAS in addition                  perform the following:
     based on a demonstration of ability to                  to the gasoline types listed in                          (i) Obtain a commercial document of
     perform the procedures required in this                 § 80.128(b) and (c).                                  general circulation that lists vessel
     paragraph (f);                                             (2) Obtain separate listings of all                arrivals and departures, and that
        (ii) Be independent under the criteria               tenders of Certified Toxics-FRGAS, and                includes the port and date of departure
     specified in § 80.65(e)(2)(iii); and                    of Non-Certified Toxics-FRGAS. Agree                  of the vessel, and the port of entry and
        (iii) Sign a commitment that contains                the total volume of tenders from the                  date of arrival of the vessel.
     the provisions specified in paragraph (i)               listings to the gasoline inventory                       (ii) Agree the vessel’s departure and
     of this section with regard to activities,              reconciliation analysis in § 80.128(b),               arrival locations and dates from the
     facilities and documents relevant to                    and to the volumes determined by the                  independent third party and United
     compliance with the requirements of                     third party under paragraph (f)(1) of this            States importer reports to the
     this paragraph (f).                                     section.                                              information contained in the
        (g) Comparison of load port and port                    (3) For each tender under paragraph                commercial document.
     of entry testing. (1)(i) Except as                      (h)(2) of this section where the gasoline                (6) Obtain separate listings of all
     described in paragraph (g)(1)(ii) of this               is loaded onto a marine vessel, report as             tenders of Non-Toxics-FRGAS, and
     section, any foreign refiner and any                    a finding the name and country of                     perform the following:
     United States importer of Certified                     registration of each vessel, and the                     (i) Agree the total volume of tenders
     Toxics-FRGAS shall compare the results                  volumes of Toxics-FRGAS loaded onto                   from the listings to the gasoline
     from the load port testing under                        each vessel.                                          inventory reconciliation analysis in
     paragraph (f) of this section, with the                    (4) Select a sample from the list of               § 80.128(b).
     port of entry testing as reported under                 vessels identified in paragraph (h)(3) of                (ii) Obtain a separate listing of the
     paragraph (o) of this section, for the                  this section used to transport Certified              tenders under this paragraph (h)(6)
     volume of gasoline and the toxics value.                Toxics-FRGAS, in accordance with the                  where the gasoline is loaded onto a
        (ii) Where a vessel transporting                     guidelines in § 80.127, and for each                  marine vessel. Select a sample from this
     Certified Toxics-FRGAS off loads this                   vessel selected perform the following:                listing in accordance with the
     gasoline at more than one United States                    (i) Obtain the report of the                       guidelines in § 80.127, and obtain a
     port of entry, and the conditions of                    independent third party, under                        commercial document of general


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     circulation that lists vessel arrivals and              produced at the foreign refinery during               subject to criminal liability for
     departures, and that includes the port                  the period January 1, 1998 through the                violations of this section, section
     and date of departure and the ports and                 date of the refinery baseline petition or             113(c)(2) of the CAA, 42 U.S.C.
     dates where the gasoline was off loaded                 through the date of the inspection or                 7413(c)(2), 18 U.S.C. 1001 and all other
     for the selected vessels. Determine and                 audit if a baseline petition has not been             applicable provisions and shall be
     report as a finding the country where                   approved, and any work papers related                 subject to the provisions thereof.
     the gasoline was off loaded for each                    to refinery baseline establishment;                      (4) United States substantive and
     vessel selected.                                          (B) The volume and toxics value of                  procedural laws shall apply to any civil
        (7) In order to complete the                         Toxics-FRGAS;                                         or criminal enforcement action against
     requirements of this paragraph (h) an                     (C) The proper classification of                    the foreign refiner or any employee of
     auditor shall:                                          gasoline as being Toxics-FRGAS or as                  the foreign refiner related to the
        (i) Be independent of the foreign                    not being Toxics-FRGAS, or as Certified               provisions of this section.
     refiner;                                                Toxics-FRGAS or as Non-Certified                         (5) Submitting a petition for an
        (ii) Be licensed as a Certified Public               Toxics-FRGAS;                                         individual refinery toxics baseline,
     Accountant in the United States and a                     (D) Transfers of title or custody to                producing and exporting gasoline under
     citizen of the United States, or be                     Toxics-FRGAS;                                         an individual refinery toxics baseline,
     approved in advance by EPA based on                       (E) Sampling and testing of Toxics-                 and all other actions to comply with the
     a demonstration of ability to perform the               FRGAS;                                                requirements of this subpart J relating to
     procedures required in §§ 80.125                          (F) Work performed and reports                      the establishment and use of an
     through 80.130 and this paragraph (h);                  prepared by independent third parties                 individual refinery toxics baseline
     and                                                     and by independent auditors under the                 constitute actions or activities that
        (iii) Sign a commitment that contains                requirements of this section and                      satisfy the provisions of 28 U.S.C.
     the provisions specified in paragraph (i)               § 80.1035 including work papers; and                  1605(a)(2), but solely with respect to
     of this section with regard to activities                 (G) Reports prepared for submission                 actions instituted against the foreign
     and documents relevant to compliance                    to EPA, and any work papers related to                refiner, its agents and employees in any
     with the requirements of §§ 80.125                      such reports.                                         court or other tribunal in the United
     through 80.130, § 80.1035 and this                        (vi) Inspections and audits by EPA                  States for conduct that violates the
     paragraph (h).                                          may include taking samples of gasoline                requirements applicable to the foreign
        (i) Foreign refiner commitments. Any                 or blendstock, and interviewing                       refiner under this subpart J, including
     foreign refiner shall commit to and                     employees.                                            conduct that violates Title 18 U.S.C.
     comply with the provisions contained                      (vii) Any employee of the foreign                   section 1001 and Clean Air Act section
     in this paragraph (i) as a condition to                 refiner will be made available for                    113(c)(2).
     being assigned an individual refinery                   interview by the EPA inspector or                        (6) The foreign refiner, or its agents or
     toxics baseline.                                        auditor, on request, within a reasonable              employees, will not seek to detain or to
        (1) Any United States Environmental                  time period.                                          impose civil or criminal remedies
     Protection Agency inspector or auditor                    (viii) English language translations of             against EPA inspectors or auditors,
     will be given full, complete and                        any documents will be provided to an                  whether EPA employees or EPA
     immediate access to conduct                             EPA inspector or auditor, on request,                 contractors, for actions performed
     inspections and audits of the foreign                   within 10 working days.                               within the scope of EPA employment
     refinery.                                                 (ix) English language interpreters will             related to the provisions of this section.
        (i) Inspections and audits may be                    be provided to accompany EPA                             (7) The commitment required by this
     either announced in advance by EPA, or                  inspectors and auditors, on request.                  paragraph (i) shall be signed by the
     unannounced.                                              (2) An agent for service of process                 owner or president of the foreign refiner
        (ii) Access will be provided to any                  located in the District of Columbia will              business.
     location where:                                         be named, and service on this agent                      (8) In any case where Toxics-FRGAS
        (A) Gasoline is produced;                            constitutes service on and personal and               produced at a foreign refinery is stored
        (B) Documents related to refinery                    subject matter jurisdiction in the United             or transported by another company
     operations are kept;                                    States over the foreign refiner or any                between the refinery and the vessel that
        (C) Gasoline or blendstock samples                   employee of the foreign refiner for any               transports the Toxics-FRGAS to the
     are tested or stored; and                               action by EPA or otherwise by the                     United States, the foreign refiner shall
        (D) Toxics-FRGAS is stored or                        United States related to the                          obtain from each such other company a
     transported between the foreign refinery                requirements of this subpart J.                       commitment that meets the
     and the United States, including storage                  (3) A foreign refiner shall be subject              requirements specified in paragraphs
     tanks, vessels and pipelines.                           to civil liability for violations of this             (i)(1) through (7) of this section, and
        (iii) Inspections and audits may be by               section, sections 114, 202(l), 211, and               these commitments shall be included in
     EPA employees or contractors to EPA.                    301(a) of the Clean Air Act, as amended               the foreign refiner’s baseline petition.
        (iv) Any documents requested that are                (42 U.S.C. 7414, 7521(l), 7545 and                       (j) Sovereign immunity. By submitting
     related to matters covered by                           7601(a)), and all other applicable laws               a petition for an individual foreign
     inspections and audits will be provided                 or regulations and shall be subject to the            refinery baseline under this section, or
     to an EPA inspector or auditor on                       provisions thereof. The Administrator                 by producing and exporting gasoline to
     request.                                                may assess a penalty against a foreign                the United States under an individual
        (v) Inspections and audits by EPA                    refiner for any violation of this section             refinery toxics baseline under this
     may include review and copying of any                   by a foreign refiner, in the manner set               section, the foreign refiner, its agents
     documents related to:                                   forth in sections 205(c) of the CAA, 42               and employees, without exception,
        (A) Refinery baseline establishment,                 U.S.C. 7524(c) or commence a civil                    become subject to the full operation of
     including the volume and toxics value,                  action against a foreign refiner to assess            the administrative and judicial
     and transfers of title or custody, of any               and recover a civil penalty in the                    enforcement powers and provisions of
     gasoline or blendstocks, whether                        manner set forth in section 205(b) of the             the United States without limitation
     Toxics-FRGAS or Non-toxics-FRGAS,                       CAA, 42 U.S.C. 7524(b). A FR shall be                 based on sovereign immunity, with


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     respect to actions instituted against the                  (ii) Be provided by a corporate surety             FRGAS under paragraph (g) of this
     foreign refiner, its agents and employees               that is listed in the United States                   section.
     in any court or other tribunal in the                   Department of Treasury Circular 570                      (3) For each gasoline batch classified
     United States for conduct that violates                 ‘‘Companies Holding Certificates of                   as Toxics-FRGAS, any United States
     the requirements applicable to the                      Authority as Acceptable Sureties on                   importer shall perform the following
     foreign refiner under this subpart J,                   Federal Bonds’; and                                   procedures:
     including conduct that violates Title 18                   (iii) Include a commitment that the                   (i) In the case of both Certified and
     U.S.C. section 1001 and Clean Air Act                   bond will remain in effect for at least               Non-Certified Toxics-FRGAS, have an
     section 113(c)(2).                                      five (5) years following the end of latest            independent third party:
        (k) Bond posting. Any foreign refiner                averaging period that the foreign refiner                (A) Determine the volume of gasoline
     shall meet the requirements of this                     produces gasoline pursuant to the                     in the vessel;
     paragraph (k) as a condition to being                   requirements of this subpart J.                          (B) Use the foreign refiner’s Toxics-
     assigned an individual refinery toxics                     (5) On any occasion a foreign refiner              FRGAS certification to determine the
     baseline.                                               bond is used to satisfy any judgment or               name and EPA-assigned registration
        (1) The foreign refiner shall annually               other obligation, the foreign refiner shall           number of the foreign refinery that
     post a bond of the amount calculated                    increase the bond to cover the amount                 produced the Toxics-FRGAS;
     using the following equation:                           used within 90 days of the date the                      (C) Determine the name and country
     Bond = G × $ 0.01 ¥ BondCG                              bond is used.                                         of registration of the vessel used to
     Where:                                                     (6) The bond is used for payment of,               transport the Toxics-FRGAS to the
                                                             not in lieu of, any obligation arising                United States; and
     Bond = amount of the bond in U. S.                                                                               (D) Determine the date and time the
           dollars.                                          under any judgment, order, assessment
                                                             or settlement agreement. Nothing herein               vessel arrives at the United States port
     G = the largest volume of gasoline                                                                            of entry.
           produced at the foreign refinery and              is intended to waive any portion of any
                                                             obligation except what portion is                        (ii) In the case of Certified Toxics-
           exported to the United States, in                                                                       FRGAS, have an independent third
           gallons, during a single calendar                 actually paid by use of funds from the
                                                             bond.                                                 party:
           year among the five preceding                                                                              (A) Collect a representative sample
           calendar years.                                      (l) [Reserved]
                                                                                                                   from each vessel compartment
     BondCG = amount of bond currently                          (m) English language reports. Any
                                                                                                                   subsequent to the vessel’s arrival at the
           posted by the refinery pursuant to                report or other document submitted to
                                                                                                                   United States port of entry and prior to
           § 80.94.                                          EPA by a foreign refiner shall be in
                                                                                                                   off loading any gasoline from the vessel;
        (2) Bonds shall be posted by:                        English language, or shall include an
                                                                                                                      (B) Prepare a volume-weighted vessel
        (i) Paying the amount of the bond to                 English language translation.
                                                                                                                   composite sample from the
     the Treasurer of the United States;                        (n) Prohibitions. (1) No person may
                                                                                                                   compartment samples; and
        (ii) Obtaining a bond in the proper                  combine Certified Toxics-FRGAS with                      (C) Determine the toxics value using
     amount from a third party surety agent                  any Non-Certified Toxics-FRGAS or                     the methodologies specified in § 80.730,
     that is payable to satisfy United States                Non-Toxics-FRGAS, and no person may                   by:
     administrative or judicial judgments                    combine Certified Toxics-FRGAS with                      (1) The third party analyzing the
     against the foreign refiner, provided                   any Certified Toxics-FRGAS produced                   sample; or
     EPA agrees in advance as to the third                   at a different refinery, until the importer              (2) The third party observing the
     party and the nature of the surety                      has met all the requirements of                       importer analyze the sample.
     agreement; or                                           paragraph (o) of this section, except as                 (4) Any importer shall submit reports
        (iii) An alternative commitment that                 provided in paragraph (e) of this                     within thirty days following the date
     results in assets of an appropriate                     section.                                              any vessel transporting Toxics-FRGAS
     liquidity and value being readily                          (2) No foreign refiner or other person             arrives at the United States port of entry:
     available to the United States, provided                may cause another person to commit an                    (i) To the Administrator containing
     EPA agrees in advance as to the                         action prohibited in paragraph (n)(1) of              the information determined under
     alternative commitment.                                 this section, or that otherwise violates              paragraph (o)(3) of this section; and
        (3) If the bond amount for a foreign                 the requirements of this section.                        (ii) To the foreign refiner containing
     refinery increases, the foreign refiner                    (o) United States importer                         the information determined under
     shall increase the bond to cover the                    requirements. Any United States                       paragraph (o)(3)(ii) of this section.
     shortfall within 90 days of the date the                importer shall meet the following                        (5) Any United States importer shall
     bond amount changes. If the bond                        requirements:                                         meet the requirements specified in
     amount decreases, the foreign refiner                      (1) Each batch of imported gasoline                § 80.815 for any imported gasoline that
     may reduce the amount of the bond                       shall be classified by the importer as                is not classified as Certified Toxics-
     beginning 90 days after the date the                    being Toxics-FRGAS or as Non-Toxics-                  FRGAS under paragraph (o)(2) of this
     bond amount changes.                                    FRGAS, and each batch classified as                   section.
        (4) Bonds posted under this paragraph                Toxics-FRGAS shall be further classified                 (p) Truck Imports of Certified Toxics-
     (k) shall:                                              as Certified Toxics-FRGAS or as Non-                  FRGAS produced at a Refinery (1) Any
        (i) Be used to satisfy any judicial or               Certified Toxics-FRGAS.                               refiner whose Certified Toxics-FRGAS is
     administrative judgment, order,                            (2) Gasoline shall be classified as                transported into the United States by
     assessment or payment under a judicial                  Certified Toxics-FRGAS or as Non-                     truck may petition EPA to use
     or administrative settlement agreement                  Certified Toxics-FRGAS according to                   alternative procedures to meet the
     that results from an administrative or                  the designation by the foreign refiner if             following requirements:
     judicial enforcement action for conduct                 this designation is supported by product                 (i) Certification under paragraph (d)(5)
     in violation of this subpart J, including               transfer documents prepared by the                    of this section;
     where such conduct violates Title 18                    foreign refiner as required in paragraph                 (ii) Load port and port of entry
     U.S.C. section 1001 and Clean Air Act                   (d) of this section, unless the gasoline is           sampling and testing under paragraphs
     section 113(c)(2);                                      classified as Non-Certified Toxics-                   (f) and (g) of this section;


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     17272             Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations

        (iii) Attest under paragraph (h) of this             using an individual refinery baseline                 reasonable and appropriate steps to verify the
     section; and                                            before EPA has approved the baseline,                 accuracy thereof.
        (iv) Importer testing under paragraph                provided that:                                           I affirm that I have read and understand the
                                                                (i) A baseline petition has been                   provisions of 40 CFR Part 80, subpart J,
     (o)(3) of this section.
                                                                                                                   including 40 CFR 80.1030 [insert name of
        (2) These alternative procedures shall               submitted as required in paragraph (b)                foreign refiner]. Pursuant to Clean Air Act
     ensure Certified Toxics-FRGAS remains                   of this section;                                      section 113(c) and Title 18, United States
     segregated from Non-Certified Toxics-                      (ii) EPA has made a provisional                    Code, section 1001, the penalty for furnishing
     FRGAS and from Non-Toxics-FRGAS                         finding that the baseline petition is                 false, incomplete or misleading information
     until it is imported into the United                    complete;                                             in this certification or submission is a fine of
     States. The petition will be evaluated                     (iii) The foreign refiner has made the             up to $10,000, and/or imprisonment for up
     based on whether it adequately                          commitments required in paragraph (i)                 to five years.
     addresses the following:                                of this section;                                      Attest Engagements
        (i) Provisions for monitoring pipeline                  (iv) The persons who will meet the
     shipments, if applicable, from the                      independent third party and                           § 80.1035 What are the attest engagement
     refinery, that ensure segregation of                    independent attest requirements for the               requirements for gasoline toxics
                                                             foreign refinery have made the                        compliance applicable to refiners and
     Certified Toxics-FRGAS from that
                                                             commitments required in paragraphs                    importers?
     refinery from all other gasoline;
        (ii) Contracts with any terminals and/               (f)(3)(iii) and (h)(7)(iii) of this section;             In addition to the requirements for
     or pipelines that receive and/or                        and                                                   attest engagements that apply to refiners
     transport Certified Toxics-FRGAS, that                     (v) The foreign refiner has met the                and importers under §§ 80.125 through
     prohibit the commingling of Certified                   bond requirements of paragraph (k) of                 80.130, and § 80.1030, the attest
     Toxics-FRGAS with any of the                            this section.                                         engagements for refiners and importers
     following:                                                 (2) In any case where a foreign refiner            applicable to this subpart J shall include
        (A) Other Certified Toxics-FRGAS                     uses an individual refinery baseline                  the following procedures and
     from other refineries.                                  before final approval under paragraph                 requirements each year, which should
        (B) All Non-Certified Toxics-FRGAS.                  (r)(1) of this section, and the foreign               be applied separately to reformulated
        (C) All Non-Toxics-FRGAS;                            refinery baseline values that ultimately              gasoline (and RBOB, combined) and
        (iii) Procedures for obtaining and                   are approved by EPA are more stringent                conventional gasoline:
     reviewing truck loading records and                     than the early baseline values used by                   (a) Obtain the EPA toxics baseline
     United States import documents for                      the foreign refiner, the foreign refiner              approval letter for the refinery to
     Certified Toxics-FRGAS to ensure that                   shall recalculate its compliance, ab                  determine the refinery’s applicable
     such gasoline is only loaded into trucks                initio, using the baseline values                     baseline toxics value and baseline toxics
     making deliveries to the United States;                 approved by EPA, and the foreign                      volume under § 80.915.
        (iv) Attest procedures to be conducted               refiner shall be liable for any resulting                (b) Obtain a written representation
     annually by an independent third party                  violation of the gasoline toxics                      from the company representative stating
     that review loading records and import                  requirements.                                         the toxics value(s) that the company
     documents based on volume                                  (s) Additional requirements for                    used as its baseline(s) and agree that
                                                             petitions, reports and certificates. Any              number to paragraph (a) of this section.
     reconciliation, or other criteria, to
                                                             petition for a refinery baseline under                   (c) Obtain and read a copy of the
     confirm that all Certified Toxics-FRGAS
                                                             § 80.915, any alternative procedures                  refinery’s or importer’s annual toxics
     remains segregated throughout the                                                                             reports per §§ 1A80.75(e) and 80.105
     distribution system and is only loaded                  under paragraph (r) of this section, any
                                                                                                                   filed with EPA for the year to determine
     into trucks for import into the United                  report or other submission required by
                                                                                                                   the compliance baseline and
     States.                                                 paragraph (c), (f)(2), or (i) of this section,
                                                                                                                   incremental volume.
        (3) The petition required by this                    and any certification under paragraph                    (d) Agree the yearly volume of
     section shall be submitted to EPA along                 (d)(3) of this section shall be:                      gasoline reported to EPA in the toxics
     with the application for small refiner                     (1) Submitted in accordance with
                                                                                                                   reports with the inventory
     status and individual refinery toxics                   procedures specified by the
                                                                                                                   reconciliation analysis under § 80.128.
     baseline and standards under § 80.240                   Administrator, including use of any                      (e) Calculate the annual average toxics
     and this section.                                       forms that may be specified by the                    value level for each type of gasoline
        (q) Withdrawal or suspension of a                    Administrator.                                        specified at § 80.815(b) and agree the
     foreign refinery’s baseline. EPA may                       (2) Be signed by the president or                  applicable values with the values
     withdraw or suspend a baseline that has                 owner of the foreign refiner company, or              reported to EPA.
     been assigned to a foreign refinery                     by that person’s immediate designee,                     (f) Calculate the difference between
     where:                                                  and shall contain the following                       the yearly volume of gasoline reported
        (1) A foreign refiner fails to meet any              declaration:                                          to EPA and the baseline volume, if
     requirement of this section;                               I hereby certify: (1) That I have actual           applicable, to determine the yearly
        (2) A foreign government fails to                    authority to sign on behalf of and to bind            incremental volume and agree that
     allow EPA inspections as provided in                    [insert name of foreign refiner] with regard to       value with the value reported to EPA.
     paragraph (i)(1) of this section;                       all statements contained herein; (2) that I am           (g) Calculate the compliance baseline
        (3) A foreign refiner asserts a claim of,            aware that the information contained herein           per § 80.850, and agree that value with
     or a right to claim, sovereign immunity                 is being certified, or submitted to the United
                                                                                                                   the value reported to EPA.
     in an action to enforce the requirements                States Environmental Protection Agency,
     in this subpart J; or                                   under the requirements of 40 CFR Part 80,             § 80.1040    [Reserved]
                                                             subpart J, and that the information is material
        (4) A foreign refiner fails to pay a civil                                                                 Additional Rulemaking
                                                             for determining compliance under these
     or criminal penalty that is not satisfied               regulations; and (3) that I have read and
     using the foreign refiner bond specified                understand the information being certified or         § 80.1045 What additional rulemaking will
     in paragraph (k) of this section.                       submitted, and this information is true,              EPA conduct?
        (r) Early use of a foreign refinery                  complete and correct to the best of my                 No later than July 1, 2003, the
     baseline. (1) A foreign refiner may begin               knowledge and belief after I have taken               Administrator shall propose any


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                       Federal Register / Vol. 66, No. 61 / Thursday, March 29, 2001 / Rules and Regulations                                          17273

     requirements to control hazardous air                   strategies relating to hazardous air                    Authority: 42 U.S.C. 7401–7521(l) and
     pollutants from motor vehicles and                      pollutants from nonroad engines and                   7521(m)–7671q.
     motor vehicle fuels that the                            vehicles.                                             [FR Doc. 01–37 Filed 3–28–01; 8:45 am]
     Administrator determines are                                                                                  BILLING CODE 6560–50–P
     appropriate pursuant to section 202(l)(2)               PART 86—CONTROL OF EMISSIONS
     of the Act. The Administrator will take                 FROM NEW AND IN–USE HIGHWAY
     final action on such proposal no later                  VEHICLES AND ENGINES
     than July 1, 2004. During this
     rulemaking, EPA also intends to                           1. The authority citation for part 86 is
     evaluate emissions and potential                        revised to read as follows:




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