6o
Modification of Fuels Regulations
Regarding Baselines for Conventional
Gasoline Produced or Imported for
Use in Hawaii, Alaska, and U.S.
Territories
The U.S. Environmental Protection Agency is finalizing modifica-
tions to fuels regulations to allow refiners and importers of con-
ventional gasoline produced or imported for use in Hawaii, Alaska,
Puerto Rico, and the U.S. Virgin Islands to petition EPA to change
the way in which they calculate emissions from such gasoline. These
calculations are for purposes of demonstrating compliance with the
Reformulated Gasoline (REG) program's anti-dumping requirements
and the toxics emissions performance requirements under the Mobile
Source Air Toxics program. We are taking this action to address cer-
tain inconsistencies in the regulations. These inconsistencies might
have the effect of requiring these refiners and importers to produce or
import gasoline that is cleaner than that required under the Clean Air
Act and that is required of refiners and importers of gasoline produced
or imported for use in other parts of the country.
Background
The Clean Air Act requires EPA to establish rules requiring that gasoline sold in
certain areas be reformulated to reduce vehicle emissions of toxic and ozone-forming
compounds. The law also requires EPA to establish rules that would ensure that non-
REG, known as "conventional gasoline," used in the rest of the country does not
create more pollutants than gasoline produced or imported in 1990. EPA published
regulations for the certification and enforcement of REG, and regulations for
conventional gasoline, in February 1994. In March 2001, EPA published the MSAT
rule, which placed additional controls on air-toxics emissions for all gasoline.
This final rule modifies the 1994 anti-dumping and 2001 MSAT regulations to allow
refiners and importers that produce or import conventional gasoline for use in Ha-
waii, Alaska, Puerto Rico, and the U.S. Virgin Islands to change the way that they
calculate emissions from such gasoline for purposes of figuring their anti-dumping
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
EPA420-F-07-061
October 2007
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and MSAT baselines and evaluating annual average emissions. Under the current regulations, in
certain situations, refiners and importers that produce or import conventional gasoline for use in
these areas are required to comply with a baseline emissions standard that was calculated using
a different model than that required for calculating annual average emissions. As a result, some
conventional gasoline produced or imported for use in these areas is subject to an inappropriate
standard. This final rule addresses this inconsistency by allowing these refiners and importers
the option to change their baselines to ones that were calculated using the same model as that
required for tabulating annual average emissions.
How will the regulations affect industry?
This final rule provides an alternative compliance method for refiners and importers of con-
ventional gasoline produced or imported for use in Hawaii, Alaska, Puerto Rico, and the U.S.
Virgin Islands that, under the current regulations, are required to produce or import gasoline
that is actually cleaner than that required under the Clean Air Act. This rule will result in lower
compliance costs and greater flexibility for these companies.
What are the health and environmental benefits?
This final rule provides an alternative compliance method for affected parties without
compromising the environmental goals of the RFG program. Under this rule, even if all of
the affected parties choose the new compliance method, the goals of the RFG program's anti-
dumping regulations and the toxics emissions performance requirements under the MSAT rule
would be met.
Where can I find more information?
You can access documents related to the RFG anti-dumping provisions at:
www. epa. go v/otaq/rfg_regs .htm
and the toxics performance provisions at:
www. epa. go v/otaq/toxics .htm
For more information on this rule, please contact Marilyn Bennett at:
bennett.marilyn@epa.gov
202-343-9624
or
Marilyn Bennett
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
Mailcode 6406J
1200 Pennsylvania Ave., NW
Washington, DC 20460
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