United States Environmental Protection Agency Air and Radiation EPA420-F-99-033 August 1999 Office of Mobile Sources v>EPA Regulatory Update Extension of California Enforcement Exemptions for Reformulated Gasoline The Environmental Protection Agency (EPA) has issued a Notice of Proposed Rulemaking and Direct Final Rule to continue to exempt refiners, importers, and blenders of gasoline subject to the State of California's Phase 2 reformulated gasoline regulations from certain enforcement provisions in the Federal Phase II reformulated gasoline program. This rulemaking will reduce regulatory overlap for refiners, importers, and blenders of California reformulated gasoline, without sacrificing any environmental benefits. Background EPA exempted California refiners, importers, and blenders from certain enforcement requirements of the Federal Phase I reformulated gasoline program because California and Federal Phase I reformulated gasoline would yield equivalent emissions benefits and because the California program would be adequately enforced. Phase I, and the California enforcement exemptions, will expire on December 31, 1999. On January 1, 2000, the Federal Phase II reformulated gasoline program will begin. Phase II reformulated gasoline is similar to Phase I reformu- lated gasoline, but will result in additional air quality benefits. Printed on Recycled Paper ------- Extension of Exemption EPA reviewed an equivalency demonstration, submitted by the Western States Petroleum Association (WSPA), that demonstrates that California Phase 2 reformulated gasoline will yield equivalent emissions benefits to Federal Phase II gasoline. Furthermore, we believe that California will continue to actively pursue enforcement of its Phase 2 reformulated gasoline requirements. Therefore, EPA is issuing an Notice of Proposed Rulemaking and Direct Final Rule to extend the California enforcement exemptions to the Federal Phase II reformulated gasoline program. This extension will reduce burdens and compliance costs associated with the overlap of Federal and California regulations. Health and Environmental Benefits RFG reduces VOC and NOx emissions from vehicles. RFG also reduces toxic emissions, including benzene, a known human carcinogen. RFG con- tains less of the ingredients that contribute to ozone and air toxics than regular gasoline, and therefore reduces the exposure of the U.S. public overall to harmful air pollution. California Phase 2 reformulated gasoline is expected to have equivalent emissions benefits to Federal Phase II reformulated gasoline. Therefore, this extension maintains and continues the public health and environ- mental benefits associated with the Federal Phase II reformulated gaso- line program. Impacts of Recent Events in California On March 26, 1999, California Governor Gray Davis issued an Execu- tive Order directing the phase out of MTBE. However, since California refiners must still supply gasoline in Federal RFG areas that complies with the Federal oxygen requirement, the appropriateness of extending the enforcement exemptions is preserved. California refiners may use any of a number of legal oxygenates to meet the Federal oxygen require- ment. 2 ------- On April 12, 1999, Governor Davis submitted a letter to EPA Adminis- trator Carol Browner, requesting that EPA grant a waiver from the Federal 2.0 weight percent oxygen for all Federal RFG areas in Califor- nia. This request is currently being evaluated by EPA and is outside the scope of this Direct Final Rule. This rulemaking is based upon a finding that the emissions benefits of current California Phase 2 gasoline and Federal Phase II RFG are equivalent and that all Federal content stan- dards, including the 2.0 weight percent oxygen standard, will be com- plied with. Because an equivalency determination can only be based on current or known regulatory requirements, it is important to remember that if California amends its current reformulated gasoline regulations (or issues new regulations), EPA will re-examine the regulations to deter- mine whether it is appropriate to continue these enforcement exemp- tions. For More Information Additional documents on this rulemaking are available electronically from the EPA Internet server at: http://www.epa.gov/oms/ For further information, please contact Anne Pastorkovich at: U.S. Environmental Protection Agency Office of Mobile Sources (6405J) 401 M Street SW Washington, DC 20460 202-564-8987 3 ------- |