United States Air and Radiation EPA420-F-01-031
Environmental Protection October 2001
Agency
svEPA Mobile Source Air
Toxics (MSAT) Rule
Questions And Answers
@9 Printed on Recycled
Paper
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EPA420-F-01-031
October 2001
Air (IVISAT)
205 2001
Assessment and Standards Division
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
NOTICE
This technical report does not necessarily represent final EPA decisions or positions.
It is intended to present technical analysis of issues using data that are currently available.
The purpose in the release of such reports is to facilitate the exchange of
technical information and to inform the public of technical developments which
may form the basis for a final EPA decision, position, or regulatory action.
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Assessment and Standards Division
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
Mobile Source Air Toxics (MSAT) Rule Questions And Answers
June 20, 2001
The following are responses to questions received by the Environmental Protection Agency
("EPA" or the "Agency") concerning the Mobile Source Air Toxics ("MSAT"or "Toxics") Rule
published in the Federal Register on March 29, 2001 (66 FR 17230).
Regulated parties may use this document to aid in achieving compliance with the MSAT
regulations. However, this document does not in any way alter the requirements of these
regulations. While the answers provided in this document represent the Agency's interpretation
and general plans for implementation of the regulations at this time, some of the responses may
change as additional information becomes available or as the Agency further considers certain
issues.
This guidance document does not establish or change legal rights or obligations. It does not
establish binding rules or requirements and is not fully determinative of the issues addressed.
Agency decisions in any particular case will be made by applying the law and regulations on the
basis of specific facts and actual action.
While we have attempted to include answers to all questions received, the necessity for policy
decisions and/or resource constraints may have prevented the inclusion of certain questions.
Questions not answered in this document may be answered in a subsequent document.
MSAT Rule Questions and Answers
1. Question: The toxics standard in the anti-dumping program for conventional gasoline (CG) is
an exhaust toxics standard, not a total toxics standard. The reformulated gasoline (RFG)
program includes a total toxics standard. Based on several statements in the Preamble for the
MSAT final rule, it appears that the Agency clearly intends the Subpart J toxics standard for CG
to remain an exhaust toxics standard. The regulations, however, do not clearly specify that the
Subpart J CG toxics standard is an exhaust toxics standard.
Answer: Throughout the regulations at Subpart J, we used the term "toxics" in the generic sense,
and refer separately to the requirements for conventional gasoline and to the requirements for
reformulated gasoline and RBOB, combined. The anti-backsliding provisions are intended to
apply to the toxics performance standards applicable to the specific type of gasoline. Thus, the
standard for conventional gasoline applies to exhaust toxics emissions, in mg/mile, and the
standard for reformulated gasoline and RBOB applies to total toxics, in percent reduction.
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2. Question: In § 80.915(a)(3), what does "All consecutive and non-consecutive batch toxics
measurements" mean?
Answer: The intent of the phrase "All consecutive and non-consecutive batch toxics
measurements" at § 80.915(a)(3) was to instruct the refiner or importer that all data during the
baseline period must be included in the baseline determination.
3. Question: On page 17250 of the preamble, EPA states: "Because this data is already required
to demonstrate compliance with RFG and anti-dumping requirements, a refiner must simply
submit the same information found in its original submittals of its RFG and anti-dumping
reports." The 1998 and 1999 toxics calculations were reported based on Phase I of the Complex
Model. The regulations require that Phase II of the Complex Model be used.
Answer: The procedure listed in the regulations should be followed. See 40 CFR § 80.915(d).
All 1998 and 1999 batch toxics values (as applicable for RFG or CG) should be determined using
the Phase n Complex Model.
4. Question: Should Gasoline Treated as Blendstock (GTAB) be included in the baseline
determination?
Answer: Yes, GTAB should be included in the baseline determination to the same extent it was
used in determining compliance with the RFG or anti-dumping requirements.
5. Question: Should Oxygenated Fuels Program Reformulated Gasoline (OPRG) be included in
the baseline determination?
Answer: Yes, OPRG should be included in the baseline determination because it is considered
RFG.
6. Question: In one of the baseline years, we were not in compliance with our anti-dumping
baseline requirement. How do we handle this in calculating our individual baseline?
Answer: If a refinery's or importer's anti-dumping standard was not met during one (or more) of
the baseline years under this rule (i.e., 1998, 1999, 2000), then the refinery's or importer's anti-
dumping toxics standard should be used as the toxics value for all batches produced in the year(s)
the anti-dumping standard was not met.
7. Question: How should the compliance margin be used in calculating the baseline toxics
value?
Answer: The compliance margin value should be included in a toxics baseline determination in
such a manner that its inclusion provides an additional margin of flexibility to comply with the
standard. The technique of including the compliance margin value can vary depending on the
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sign convention applied to the toxics standard, especially in the case of RFG, where toxics
emissions are determined as "percent reductions". For example, the compliance margin value for
RFG is given as -0.7% (§ 80.915(h)(l)). For a refiner or importer whose batch calculations result
in a toxics value of-32% (also known as a 32% reduction), proper inclusion of the compliance
margin would result in a toxics baseline value (per § 80.915 (b)(l)) of-31.3%.
8. Question: Would an equivalent method for calculating the baseline be to use a volume
weighted average of the compliance performance for 1998, 1999 and 2000?
Answer: No, the toxics value of each batch (determined according to the RFG or anti-dumping
requirements, as applicable) must be determined using the appropriate Phase n seasonal
Complex Model, and then the toxics values of all of the batches (separately for RFG/RBOB and
CG) must be volume-weighted together.
9. Question: Under § 80.855 (a) and (b) a refiner or importer must use the default values "if it
cannot determine an applicable toxics value for every batch of gasoline produced or imported for
12 or more consecutive months during January 1, 1998 through December 31, 2000." So if a
refiner produced only one batch over the three-year period and is able to determine the toxics
value, would its baseline be based on that one value, or would the refiner need to have batches
with a toxics determination in each month of a 12 month period in order to use the calculated
baseline?
Answer: Our intent in establishing the default compliance baseline was that it apply to those
refiners or importers with minimal or inconsistent production or importation of gasoline during
the baseline period. By providing threshold criteria in § 80.855 for when a default baseline will
apply, we sought to ensure that individual baselines are developed rigorously, considering
volume, batch frequency, etc. The default compliance baseline provision was not intended to
apply to refiners or importers with continuous gasoline production or supply (import) during the
baseline period. Most refiners will have produced gasoline during every month of a 12-month
period and will have data for every batch of gasoline produced over that period. Thus, the 12-
month requirement in § 80.855 is easily met by these refiners no matter how EPA interprets the
requirement. Importers on the other hand, supply gasoline in many patterns. Some importers
bring in gasoline only seasonally, but they do it every season, and in significant quantity. Other
importers bring in batches regularly throughout the year. Particularly for importers, we were
wary of the possibility of a very small number of batches during the baseline period constituting
a baseline.
We interpret § 80.855 to apply to a refiner or importer which does not have data spanning a 12-
month period between 1998 and 2000 (that is, any 12-month period between 1998 and 2000).
For example, § 80.855 would not apply to an importer that imported two batches - a batch in
January 1999 and a batch in December 1999. Nor would § 80.855 apply if the two batches were
imported in June 1998 and May 1999. However, if the only two batches imported by the
importer were in January 1999 and June 1999, the importer would not have data for batches over
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a 12-month period and would be subject to the default baseline. Likewise, if the two batches are
spread out by more than 12 months (e.g., a batch in January 1999 followed by a January 2000
batch), this would not be considered sufficient to support an individual baseline and the importer
would be subject to the default compliance baseline.
It is important to note that this 12-month requirement is simply a threshold. Once a refiner or
importer satisfies this requirement and determines it is eligible for an individual baseline, it must
include all data on any gasoline produced or imported (for use in the United States, excluding
California gasoline per § 80.845)) during the baseline period (1998-2000).
It is also important to note that a baseline adjustment under § 80.915(g) is only available to those
eligible for an individual baseline; refiners or importers subject to the default compliance
baseline are not eligible for such an adjustment.
10. Question: A party could have activity in every calendar month but not in both RFG and CG.
Does the default baseline apply separately?
Answer: Yes. The baselines should be determined separately. In other words, you should look
only at the CG data in determining whether the minimum data requirements in § 80.915(a)(l) are
satisfied for the CG baseline and only at the sufficiency of the RFG data for the RFG baseline.
Refer to Question 9 for additional discussion on the minimum data requirements of
§ 80.915(a)(l).
11. Question: If the default compliance baseline (under § 80.855) is applicable due to
insufficient data, must the batch information required under § 80.910(c)(5) be submitted?
Answer: Yes. Section 80.910 applies to all refiners and importers, whether or not they are
subject to the default compliance baseline provided in § 80.855. Section § 80.910(c)(2), for
example, specifically addresses the information to be submitted under that paragraph in the event
that a refinery or importer is subject to § 80.855. The information required to be submitted under
§ 80.910(c)(5) will help us to verify that such facilities have correctly determined that the default
baseline is the appropriate baseline for that facility.
12. Question: Two of our refineries produced a few batches of RBOB/RFG over the baseline
period. Is this considered sufficient data for calculating a toxics baseline?
Answer: See Question 9 regarding minimum data requirements.
13. Question: A refinery that had not previously produced RFG may choose to do so in the
future. Its 1998-2000 baseline RFG volume will be zero. Will future RFG production be based
on an incremental volume production basis (i.e., the new RFG production is subject to existing
RFG standards) or is the refinery judged as incapable of establishing a 1998-2000 RFG baseline
and therefore subject to the new default RFG standard (not based on environmental need nor
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cost-effectiveness)?
Answer: Refineries in operation during 1998-2000 that did not make one or the other type of
gasoline (reformulated or conventional) are subject to the default baseline for the type of gasoline
they did not produce. As we explained in the preamble to the final rule, "For those refineries or
importers that are unable to establish a volume baseline for 1998 to 2000 either because they
were not operating during that period, or did not exist as a refining or importing facility, the
applicable standard shall be the 1998-2000 national average toxics performance for RFG and
CG." 66 FR 17230, 17249 (March 29, 2001). We explained further that, "[A] refiner or
importer which did not produce or import one or more types of gasoline (either RFG or CG)
during the baseline period but who produces or imports that type of gasoline after December 31,
2000 will have the applicable default toxics anti-backsliding baseline . . . ." 66 FR at 17521.
Thus, a refinery which, during 1998-2000, produced RFG and/or RBOB but insufficiently per the
requirements at § 80.855 (see Question 9)) or begins the production of reformulated gasoline
after December 31, 2000, will be subject to the default RFG toxics baseline for its reformulated
gasoline.
14. Question: § 80.815(c)(2) calls for complying with subpart J on an aggregate basis consistent
with subpart E. Does this then apply to RFG as well as conventional gasoline?
Answer: No. The regulations at Subpart E (Anti-Dumping), including the provisions in 40 CFR
§ 80.101(h) allowing refiners to comply on an aggregate basis, apply only to conventional
gasoline, unless otherwise referenced. During the period 1995-1997, when refiners and
importers could opt to use the "simple model" to determine compliance with the reformulated
gasoline requirements, the annual average standards applicable to reformulated gasoline for
sulfur, olefins and T90 were required to be met on the same basis as the aggregate chosen for
conventional gasoline. 40 CFR § 80.41(h)(2)(iii). This option to comply with the simple model
RFG standards on an aggregate basis, however, is no longer available. RFG must now meet the
Phase II complex model standards and there are no aggregation provisions applicable to these
standards.
15. Question: A refinery that had not previously produced RFG may choose to do so in the
future. If the refinery was part of an aggregation group wherein other refineries produced RFG in
1998-2000 and therefore are capable of determining a refinery-specific RFG standard, is the
refinery that produced only conventional gasoline in 1998-2000 now subject to the RFG standard
set by other refineries in its aggregate, by the existing RFG standards, or by the new default RFG
standard?
Answer: As indicated in Question 14, aggregation provisions do not apply to reformulated
gasoline. As a result, if a refinery is part of an aggregate for anti-dumping purposes, it will not
change the baseline applicable to RFG produced at the refinery whether the refinery produced
RFG during the baseline period or not.
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16. Question: My company chose to aggregate all refineries for the purposes of Subpart E. One
of these refineries was permanently shutdown in January of 2001. How should this refinery be
factored into the toxics baseline?
Answer: Every facility of a company must have its own individual baseline (be it a unique
individual baseline or the default baseline). For this rule, as for the anti-dumping program, to
determine the aggregated standard for your refineries, the individual facility baselines are
volume-weighted together to form the aggregate baseline. Also, as required for the anti-dumping
program, when a facility is sold or shutdown, its contribution to the aggregate compliance
standard is removed. Thus, in this case, the aggregate baseline would exclude the shutdown
refinery's baseline.
17. Question: What is the process for getting a baseline adjustment?
Answer: The baseline adjustment provision at § 80.915(g) specifies the procedure and general
requirements for submitting a toxics baseline adjustment petition. A refinery or importer which
is eligible for an individual baseline under this rule must submit the petition with its baseline
submittal. The petition must include the unadjusted and adjusted baseline fuel parameters,
applicable toxics values and volumes. The petition must also include "[a] narrative describing
how the circumstances during 1998-2000 materially affected the baseline toxics value . . . ." 40
CFR § 80.915(g)(2)(ii). The narrative must include an appropriate description, including the
reasoning underlying the adjustment, and the calculations used to determine the adjusted values.
Because the reasons a refiner or importer may petition for a baseline adjustment under this rule
may vary widely, we will evaluate all petitions for a toxics baseline adjustment on a case-by-case
basis, with significant interaction between EPA and the petitioner.
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