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       on the catalytic converter due to the higher sulfur levels are, in many cases, reversible.
       Additionally, these reduced benefits are acceptable due to the pristine air quality, the
       fact that gasoline quality will not change as enforcement discretion is in place, and the
       cost and difficulty of consistently acquiring Tier 2 compliant gasoline.
       Key Elements of the Direct Final Rule

           •  This rule relieves the Territories of the burden of complying with the Tier 2
             gasoline sulfur requirement. It is impractical to supply the Territories with Tier
             2 compliant gasoline because they are thousands of miles away from the U.S.
             mainland and they lack refining capability. The Territories currently receive the
             majority of their gasoline from Singapore and Australia.

           •  This rule also provides related flexibilities to the Territories for complying with the
             Tier 2 vehicle emission standards. Vehicles in the Territories will not likely be able
             to comply with the Tier 2 vehicle emission standards if tested in-use because
             gasoline with Tier 2 sulfur levels is necessary for a vehicle to meet theTier 2
             standards. The flexibilities allow additional preconditioning prior to conducting
             exhaust emissions tests and special on-board diagnostic (OBD) system
             considerations to account for higher levels of sulfur present in the gasoline.
       Background
       TheTier 2 rule was published on February 10, 2000 (65 Fed. Reg. 6697) and instituted
       a comprehensive regulatory program designed to significantly reduce the emissions
       from new passenger cars and light trucks. These reductions provide for cleaner air and
       greater public health protection, primarily by reducing ozone and particulate matter
       pollution. The program treats vehicles and fuels as a system, combining requirements
       for much cleaner vehicles with requirements for much lower levels of sulfur in gasoline.
       The program phases in a single set of tailpipe emission standards that apply to all
       passenger cars,  light trucks, and larger passenger vehicles operated on any fuel. To
       enable the very clean Tier 2 vehicle emission control technology to be introduced and to
       maintain its  effectiveness, we also require reduced gasoline sulfur levels. The reduction
       in sulfur levels contributes directly to cleaner air in addition to its beneficial  effects on
       vehicle emission control systems. These standards currently apply to the U.S.  Pacific
       Island Territories-American Samoa, Guam, and C.N.M.I.. However, the Territories have
       received enforcement discretion to allow gasoline with sulfur levels in excess of theTier
       2 requirements to be distributed and sold.

       Pursuant to  Section 325(a)(1) of the Clean Air Act, the  HonorableTogiolaTulafono,
       Governor of American Samoa,  petitioned EPA to exempt all persons in American
       Samoa from theTier 2 gasoline sulfur requirements promulgated by the EPA pursuant
       to Section 211(c)(1) of the Clean Air Act and set forth at 40 C.F.R. Part 80, Subpart



Tier 2 Partial Exemption for U.S. Pacific Island Territories

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       H ("Gasoline Sulfur Regulations"). According to the petition, compliance with these
       requirements in American Samoa is unreasonable due to the unique geographical,
       meteorological and economic factors of the Territory.

       Representatives of the Governors of Guam and C.N.M.I,  have also filed a request for
       exemption from the Tier 2 gasoline sulfur standards. These requests reference the
       American Samoa petition which provides justification  primarily on economic grounds.
       Public Participation Opportunities
       This rule is being released as a Direct Final Rule because we view it as a non-
       controversial action and anticipate no adverse comment. However, comments can be
       submitted under a  parallel Notice of Proposed Rulemaking. Comments will be accepted
       for 30 days beginning when this proposal is published in the  Federal Register. All
       comments should  be identified by Docket No. EPA-HQ-OAR-2006-0363 and submitted
       by one of the following methods:

       •  Internet: www.regulations.gov
       •  E-mail: A-and-R-Docket@epa.gov
       •  Mail:
             U.S. Environmental Protection Agency
             Air and Radiation Docket and Information Center (6102T)
             1200 Pennsylvania Avenue NW
             Washington, DC 20460
       •  Hand Delivery:
             EPA West Building
             EPA Docket Center (Room 3340)
             1301  Constitution  Avenue NW
             Washington, DC
       For More Information
       You can access the rule and related documents on EPAs Office of Transportation and Air
       Quality (OTAQ) Web site at:

             www.epa.gov/tier2/amendments.htm

       For further information on this Direct Final Rule, please contact Sean Hillson at:

             U.S. Environmental Protection Agency
             Office of Transportation and Air Quality
             2000Traverwood  Drive
             Ann Arbor, Ml 48105
             734-214-4789
             E-mail: hillson.sean@epa.gov
Tier 2 Partial Exemption for U.S. Pacific Island Territories

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