Request From States for Removal of Gasoline Volatility Waiver

<RULE> ENVIRONMENTAL PROTECTION AGENCY <CFR>40 CFR Part 1090</CFR> <DEPDOC>[EPA-HQ-OAR-2022-0513; FRL-9845-02-OAR]</DEPDOC> <RIN>RIN 2060-AV73</RIN> <SUBJECT>Request From States for Removal of Gasoline Volatility Waiver</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Environmental Protection Agency (EPA). <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> Pursuant to provisions specified by the Clean Air Act (CAA), the Governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin submitted petitions requesting that EPA remove the 1-pound per square inch (psi) Reid vapor pressure (RVP) waiver for summer gasoline-ethanol blended fuels containing 10 percent ethanol (E10). EPA is acting on those petitions by removing the 1-psi waiver in those States effective April 28, 2025. This action also finalizes regulatory amendments to implement the removal of the 1-psi waiver for E10 in those States, as well as a regulatory process by which a State may request to reinstate the 1-psi waiver. Finally, consistent with a decision issued by the United States Court of Appeals for the D.C. Circuit on July 2, 2021, this action removes regulations that extended the 1-psi waiver to gasoline-ethanol blends between 10 and 15 percent ethanol (E15). </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This rule is effective on April 29, 2024. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> EPA has established a docket for this action under Docket ID No. EPA-HQ-OAR-2022-0513. All documents in the docket are listed on the <E T="03">https://www.regulations.gov</E> website. Although listed in the index, some information is not publicly available, <E T="03">e.g.,</E> confidential business information (CBI) or other information whose disclosure is restricted by statute. Certain other material is not available on the internet and will be publicly available only in hard copy form. Publicly available docket materials are available electronically through <E T="03">https://www.regulations.gov.</E> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> For questions regarding this action, contact Lauren Michaels, Office of Transportation and Air Quality, Compliance Division, Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105; telephone number: (734) 214-4640; email address: <E T="03">michaels.lauren@epa.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Does this action apply to me?</HD> Entities potentially affected by this final rule are those involved with the production, distribution, and sale of transportation fuels, including gasoline and diesel fuel. Potentially affected categories include: <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,16,r100"> <TTITLE> </TTITLE> <CHED H="1">Category</CHED> <CHED H="1">Examples of potentially affected entities</CHED> <ROW> <ENT I="01">Industry</ENT> <ENT>211130</ENT> <ENT>Natural gas liquids extraction and fractionation.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>221210</ENT> <ENT>Natural gas production and distribution.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>324110</ENT> <ENT>Petroleum refineries (including importers).</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>325110</ENT> <ENT>Butane and pentane manufacturers.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>325193</ENT> <ENT>Ethyl alcohol manufacturing.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>325199</ENT> <ENT>Manufacturers of gasoline additives.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>424710</ENT> <ENT>Petroleum bulk stations and terminals.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>424720</ENT> <ENT>Petroleum and petroleum products wholesalers.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>447110, 447190</ENT> <ENT>Fuel retailers.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>454310</ENT> <ENT>Other fuel dealers.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>486910</ENT> <ENT>Natural gas liquids pipelines, refined petroleum products pipelines.</ENT> </ROW> <ROW> <ENT I="01">Industry</ENT> <ENT>493190</ENT> <ENT>Other warehousing and storage—bulk petroleum storage.</ENT> </ROW> <TNOTE> <SU>1</SU>  North American Industry Classification System (NAICS). </TNOTE> </GPOTABLE> This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this action. This table lists the types of entities that EPA is now aware could potentially be affected by this action. Other types of entities not listed in the table could also be affected. To determine whether your entity would be affected by this action, you should carefully examine the applicability criteria in 40 CFR part 1090. If you have any questions regarding the applicability of this action to a particular entity, consult the person listed in the <E T="02">FOR FURTHER INFORMATION CONTACT</E> section. <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <FP SOURCE="FP-2">I. Executive Summary</FP> <FP SOURCE="FP-2">II. Volatility Control Background and History</FP> <FP SOURCE="FP-2">III. Statutory Authority and Provisions To Remove the 1-psi Waiver</FP> <FP SOURCE="FP-2">IV. Petitions for Removal of the 1-psi Waiver and Supporting Documentation</FP> <FP SOURCE="FP1-2">A. Petition Background and History</FP> <FP SOURCE="FP1-2">B. Evaluation of Petitions for Removal of the 1-psi Waiver</FP> <FP SOURCE="FP-2">V. Fuel System Impacts</FP> <FP SOURCE="FP1-2">A. Production</FP> <FP SOURCE="FP1-2">B. Distribution</FP> <FP SOURCE="FP1-2">C. Retail Operations</FP> <FP SOURCE="FP-2">VI. Implementation and Effective Date</FP> <FP SOURCE="FP1-2">A. Statutory Provisions</FP> <FP SOURCE="FP1-2">B. Finding of Insufficient Supply for 2024 and Renewal of Extension of Effective Date</FP> <FP SOURCE="FP-2">VII. Cost and Price Impacts</FP> <FP SOURCE="FP-2"> VIII. Associated Regulatory Provisions </FP> <FP SOURCE="FP1-2">A. New Designation and Associated PTD Language</FP> <FP SOURCE="FP1-2">B. Regulatory Reinstatement Mechanism</FP> <FP SOURCE="FP-2">IX. Removal of the 1-psi Waiver for E15</FP> <FP SOURCE="FP1-2">A. Background</FP> <FP SOURCE="FP1-2">B. Affected Provisions</FP> <FP SOURCE="FP-2">X. Statutory and Executive Order Reviews</FP> <FP SOURCE="FP1-2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 14094: Modernizing Regulatory Review</FP> <FP SOURCE="FP1-2">B. Paperwork Reduction Act (PRA)</FP> <FP SOURCE="FP1-2">C. Regulatory Flexibility Act (RFA)</FP> <FP SOURCE="FP1-2">D. Unfunded Mandates Reform Act (UMRA)</FP> <FP SOURCE="FP1-2">E. Executive Order 13132: Federalism</FP> <FP SOURCE="FP1-2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</FP> <FP SOURCE="FP1-2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</FP> <FP SOURCE="FP1-2">H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use</FP> <FP SOURCE="FP1-2">I. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR Part 51</FP> <FP SOURCE="FP1-2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</FP> <FP SOURCE="FP1-2">K. Congressional Review Act (CRA)</FP> </EXTRACT> <HD SOURCE="HD1">I. Executive Summary</HD> In this action, EPA is responding to petitions from eight State Governors to remove the 1-psi (pound per square inch) waiver for gasoline-ethanol blends containing 10 percent ethanol (E10). The Governors made their requests pursuant to Clean Air Act (CAA) section 211(h)(5), which provides that EPA shall remove the 1-psi waiver by regulation upon a demonstration by a Governor that the 1-psi waiver increases emissions in their State. After review of the modeling results presented by the Governors in their petitions, on March 6, 2023, EPA proposed to remove the 1-psi waiver with an effective date of April 28, 2024—and sought comment on delaying the effective date to April 28, 2025—in the following eight States: Illinois, Iowa, Nebraska, Minnesota, Missouri, Ohio, South Dakota, and Wisconsin. <SU>1</SU> <FTREF/> On March 21, 2023, EPA held a public hearing on the proposal, at which various perspectives on the proposed action were presented, and subsequently many comments were submitted to EPA on the proposed action. After the close of the public comment period, EPA also received numerous petitions to delay the proposed effective date of the removal of the 1-psi waiver. <SU>2</SU> <FTREF/> Following review of public comments on the proposal and the extension petitions received, in this action EPA is removing the 1-psi waiver and instead applying the 9.0 psi RVP (Reid Vapor Pressure) standard under CAA section 211(h)(1) effective April 28, 2025, in the following eight States: Illinois, Iowa, Nebraska, Minnesota, Missouri, Ohio, South Dakota, and Wisconsin. <FTNT> <SU>1</SU>  88 FR 13758. </FTNT> <FTNT> <SU>2</SU>  We refer to these petitions as “extension petitions” throughout this preamble. </FTNT> Throughout this document we discuss key comments provided by stakeholders on the proposal and provide our response. Additional detail is provided in the Response to Comments (RTC) document and Technical Support Document (TSD)  <SU>3</SU> <FTREF/> for this action. <FTNT> <SU>3</SU>  “Request From States for Removal of Gasoline Volatility Waiver: Technical Support Document and Cost Analysis,” available in the docket for this action. </FTNT> <HD SOURCE="HD1">II. Volatility Control Background and History</HD> EPA first took regulatory action to control the volatility of gasoline in 1987. <SU>4</SU> <FTREF/> Because higher gasol ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 122k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━