United States              Air and Radiation         EPA420-F-98-038
                   Environmental Protection                          September 1998
                   Agency

                   Office of Mobile Sources
&EPA        Regulatory
                   Announcement
                   Final Rule to Allow Former
                   Nonattainment Areas to Opt Into the
                   Federal Reformulated Gasoline
                   Program
                   The US. Environmental Protection Agency (EPA) revised the
                   reformulated gasoline RFG regulations to allow states to opt into the
                   federal RFG program for any area designated as an ozone
                   nonattainment area as of November 15, 1990, or any time later. This
                   rule encompasses all areas previously classified as marginal,
                   moderate, serious or severe ozone nonattainment areas, as well as
                   those areas currently or previously classified as transitional,
                   submarginal, no data or incomplete data ozone nonattainment areas.
                   States can use this additional option to help achieve cleaner air.
                   Overview of Final Rule
                   The Clean Air Act requires EPA to establish standards for cleaner burn-
                   ing RFG to be used in specified ozone nonattainment areas. The Act also
                   provides that other ozone nonattainment areas, classified as marginal,
                   moderate, serious, or severe may be included in the RFG program upon
                   application of the governor of the state in which the area is located.  This
                   final rule will expand this provision to allow states to opt into the RFG
                   program for areas which had been previously classified as marginal,
                   moderate, serious, or severe for ozone, but were subsequently redesig-
                   nated to attainment. This final rule will also allow states to opt into the
                   reformulated gasoline program for those areas that are currently or were
                   previously classified as transitional, sub-marginal or incomplete data
                   ozone nonattainment areas. This will provide additional flexibility to the
                   states to ensure continued compliance with the National Ambient Air
                   Quality Standards for ozone in  these areas.
                                                           > Printed on Recycled Paper

-------
         and

RFG protects health and the environment by reducing harmful vehicle
emissions of ozone-forming compounds and air toxics. RFG produces 15
to 17 percent less pollution than conventional gasoline. Therefore, there
will be less smog-forming ground-level ozone to damage sensitive lung
tissue and make it harder for the lungs to function. Ozone exposure is
especially dangerous to children, the elderly, and people with lung
diseases like asthma, bronchitis, and emphysema.

Air toxics from tailpipe emissions or gasoline vapors also can be harm-
ful. Some of the toxic compounds in gasoline (e.g., benzene) and com-
pounds created when gasoline is burned in the engine are known or
believed to  cause cancer. RFG is produced with smaller amounts of
benzene than in previous gasolines,  so there is less to get into the air
around us.
This final rule will expand the number of areas eligible to opt into the
federal RFG program and thereby provide these health and environmen-
tal benefits to the citizens of those areas.
This final rule will affect any state with a former nonattainment area by
providing the state the opportunity to opt into the federal RFG program
for that area. It will also affect areas currently in nonattainment that, for
various reasons, have not been classified as marginal, moderate, serious,
or severe ozone nonattainment areas (i.e., submarginal, transitional, and
incomplete and no data ozone nonattainment areas). Currently, there are
approximately 45 such redesignated areas, and approximately 35 transi-
tional, incomplete and no data ozone nonattainment areas, located in
approximately ten states. One sub-marginal area exists. There are also
several pending redesignation applications. It is difficult to estimate how
many redesignated areas will opt into the RFG program, but several areas
have expressed interest in having the option to use RFG.

-------
        on

If the governor of a state submits a petition to EPA to opt in a former
nonattainment area to the RFG program, EPA would provide notice and
an opportunity for public comment through a complete rulemaking
process before establishing a start date for the use of RFG in that area.
Refiners, importers, and oxygenate blenders who produce or import RFG
for use in areas which opt into the RFG program as a result of this rule
will be subject to the requirements of the RFG program for gasoline sold
in the areas that have opted in. The RFG regulations require the sale of
RFG in areas covered by the program, and also impose certain require-
ments on refiners, importers, and oxygenate blenders of RFG, such as
sampling and testing,  registration, record keeping, reporting, product
transfer documentation, compliance surveys, and attest engagements.
However, it is anticipated that refiners, importers, and oxygenate blenders
who elect to produce or import RFG for use in such opt-in areas will be
companies which currently produce or import RFG for use in existing
RFG covered areas. The RFG regulations require distributors of RFG in
covered areas to perform quality assurance testing, provide product
transfer documents to downstream parties, and retain records of product
transfers and any sampling and testing performed. Retail gasoline sta-
tions are required to retain product transfer documents for five years.
For Further
Additional documents on the RFG program are available electronically
from the EPA Internet server at:

    http ://www. epa.gov/om s/rfg.htm

For further information on this rulemaking, please contact Karen Smith
at:

    U.S. Environmental Protection Agency
    Office of Mobile Sources (6406J)
    401M Street SW
    Washington, DC 20460
    202-564-9674

-------