Air Plan Approval; Indiana; Removal of Stage II Gasoline Vapor Recovery Requirements |
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Robert A. Kaplan
Environmental Protection Agency
25 February 2016
[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)]
[Proposed Rules]
[Pages 9391-9395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03894]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R05-OAR-2015-0315; FRL-9942-73-Region 5]
Air Plan Approval; Indiana; Removal of Stage II Gasoline Vapor
Recovery Requirements
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve, as a revision to the State Implementation Plan (SIP), a
submittal by the Indiana Department of Environmental Management (IDEM)
on April 27, 2015 and September 10, 2015. The submittal concerns the
state's Stage II vapor recovery (Stage II) program for Clark and Floyd
counties in southern Indiana as part of the Louisville, Kentucky ozone
nonattainment area, and Lake and Porter counties in northwest Indiana
as part of the Chicago ozone nonattainment area. The submittal removes
Stage II requirements from both nonattainment areas, as a component of
the Indiana ozone SIP. The submittal also includes a demonstration
under the Clean Air Act (CAA) that addresses emission impacts
associated with the removal of the Stage II program.
DATES: Comments must be received on or before March 28, 2016.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2015-0315 at http://www.regulations.gov or via email to
blakley.pamela@epa.gov. For comments submitted at Regulations.gov,
follow the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed from Regulations.gov. For either
manner of submission, EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e. on the web, cloud, or other file sharing
system). For additional submission methods, please contact the person
[[Page 9392]]
identified in the FOR FURTHER INFORMATION CONTACT section. For the full
EPA public comment policy, information about CBI or multimedia
submissions, and general guidance on making effective comments, please
visit http://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Mobile Source
Program Manager, Control Strategies Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson
Boulevard, Chicago, Illinois 60604, (312) 886-6061,
acevedo.francisco@epa.gov.
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA. This supplementary information
section is arranged as follows:
I. Background
II. What changes have been made to the Indiana Stage II Vapor
Recovery Program?
III. What is EPA's analysis of the state's submittal?
IV. What action is EPA proposing to take?
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews
I. Background
Stage II and onboard refueling vapor recovery (ORVR) are two types
of emission control systems that capture fuel vapors from vehicle gas
tanks during refueling. Stage II systems are specifically installed at
gasoline dispensing facilities (GDF) and capture the refueling fuel
vapors at the gasoline pump nozzle. The system carries the vapors back
to the underground storage tank at the GDF to prevent the vapors from
escaping to the atmosphere. ORVR systems are carbon canisters installed
directly on automobiles to capture the fuel vapors evacuated from the
gasoline tank before they reach the nozzle. The fuel vapors captured in
the carbon canisters are then combusted in the engine when the
automobile is in operation.
Both Stage II and ORVR were required by the 1990 Amendments to the
CAA under sections 182(b)(3) and 202(a)(6), respectively. In some
areas, Stage II has been in place for over 25 years. It was not,
however, widely implemented by the states until the early to mid-1990s
as a result of the CAA requirements for ``moderate,'' ``serious,''
``severe,'' and ``extreme'' ozone nonattainment areas, classified under
section 181 of the CAA, and for states in the Northeast Ozone Transport
Region (OTR) under section 184(b)(2) of the CAA.
Under section 202(a)(6) of the CAA, Congress required EPA to
promulgate regulations for ORVR for light-duty vehicles (passenger
cars). EPA adopted these requirements in 1994, at which point moderate
ozone nonattainment areas were no longer subject to the section
182(b)(3) Stage II requirement. See 59 FR 16262 (April 6, 1994).
However, some moderate areas retained Stage II requirements to provide
a control method to comply with rate-of-progress emission reduction
targets. ORVR equipment has been phased in for new passenger vehicles
beginning with model year 1998, and starting in 2001 for light-duty
trucks and most heavy-duty gasoline-powered vehicles. ORVR equipment
has been installed on nearly all new gasoline-powered light-duty
vehicles, light-duty trucks and heavy-duty vehicles since 2006. During
the phase-in of ORVR controls, Stage II has provided volatile organic
compound (VOC) reductions in ozone nonattainment areas and certain
attainment areas of the OTR. Under section 202(a)(6) of the CAA,
Congress recognized that ORVR and Stage II could eventually become
largely redundant technologies, and provided authority to the EPA to
allow states to remove Stage II from their SIPs after EPA finds that
ORVR is in widespread use. On May 16, 2012, EPA determined that ORVR
was in widespread nationwide use for control of gasoline emissions
during refueling of vehicles at GDFs (77 FR 28772).
In 2012, more than 75 percent of gasoline refueling nationwide
occurred with ORVR-equipped vehicles, so Stage II programs have become
largely redundant control systems and Stage II systems achieve an ever
declining emissions benefit as more ORVR-equipped vehicles continue to
enter the on-road motor vehicle fleet.\1\
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\1\ In areas where certain types of vacuum-assist Stage II
systems are used, the differences in operational design
characteristics between ORVR and some configurations of these Stage
II systems result in the reduction of overall control system
efficiency compared to what could have been achieved relative to the
individual control efficiencies of either ORVR or Stage II emissions
from the vehicle fuel tank.
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On that date, EPA also exercised its authority under section
202(a)(6) of the CAA to waive certain Federal statutory requirements
for Stage II at GDFs. This decision exempted all new ozone
nonattainment areas classified serious or above from the requirement to
adopt Stage II control programs. Similarly, any state currently
implementing Stage II programs was authorized to submit SIP revisions
that, once approved by EPA, would allow for the phase-out of Stage II
control systems.
To assist states in the development of SIP revisions to remove
Stage II requirements from their SIPs, EPA issued its ``Guidance on
Removing Stage II Gasoline Vapor Control Programs from State
Implementation Plans and Assessing Comparable Measures'' (EPA-457/B-12-
001) on August 7, 2012. In that document, EPA provided both technical
and policy recommendations to states and local areas on how to develop
and submit and approvable SIP revision seeking to phase out an existing
Stage II program.
II. What changes have been made to the Indiana Stage II Vapor Recovery
Program?
Indiana originally submitted a SIP revision request to EPA on
February 25, 1994, to satisfy the requirements of section 182(b)(3) of
the CAA. The submission applied to Clark and Floyd counties Indiana as
part of the Louisville, Kentucky ozone nonattainment area and Lake and
Porter counties Indian as part of the Chicago ozone nonattainment area.
EPA fully approved Indiana's Stage II program on April 28, 1994 (59 FR
10111), including the program's legal authority and administrative
requirements found in Section 8-4-6 of Title 326 of the Indiana
Administrative Code (326 IAC).
In January 2013, IDEM issued a Nonrule Policy Document, Air-036
(NPD), addressing EPA's May 16, 2012 determination. In the NPD, IDEM
stated that it would not enforce the requirements for Stage II at new
and modified GDFs in Clark, Floyd, Lake and Porter counties. At the
same time Indiana also initiated a rulemaking process to revise its SIP
to remove Stage II requirements for all facilities in Clark, Floyd,
Lake and Porter counties. As part of that process, Indiana completed a
state-specific analysis following EPA's recommended methodology. In
that analysis, Indiana concluded that, during calendar year 2016, ORVR
would be in widespread use in Indiana and that there would no remaining
emissions reduction benefit from Stage II requirements beyond the
benefits from ORVR.
On April 27, 2015 and September 10, 2015, IDEM submitted rules as
SIP revision requests of amendments to 326 IAC 8-4-6 and 326 IAC 8-4-1.
These amendments would remove Stage II requirements from the Indiana
ozone SIP and allow GDFs currently implementing Stage II in the four
program counties to decommission their systems. To support the removal
of the Stage II requirements, the revised rules included copies of 326
IAC 8-4-1 and 326 IAC 8-4-6, as published in the Indiana Register on
March 4, 2015; a summary of state-specific calculations
[[Page 9393]]
based on EPA guidance used to calculate program benefits and
demonstrate widespread use of ORVR in Indiana; and a section 110(l)
demonstration that includes offset emission documentation that
addresses the 2013-2015 period, when Stage II requirements were waived
in Indiana but widespread use of ORVR had not yet occurred.
III. What is EPA's analysis of the state's submittal?
Revisions to SIP-approved control measures must meet the
requirements of section 110(l) of the CAA in order to be approved by
EPA. Section 110(l) states:
``The Administrator shall not approve a revision of a plan if the
revision would interfere with any applicable requirement concerning
attainment and reasonable further progress (as defined in section 171),
or any other applicable requirement of this Act.''
EPA evaluates each section 110(l) non-interference demonstration on
a case-by-case basis considering the circumstances of each SIP
revision. EPA interprets section 110(l) to apply to all requirements of
the CAA and to all areas of the country, whether attainment,
nonattainment, unclassifiable, or maintenance for one or more of the
six criteria pollutants. EPA also interprets section 110(l) to require
a demonstration addressing all criteria pollutants whose emissions and/
or ambient concentrations may change as a result of the SIP revision.
The degree of analysis focused on any particular national ambient air
quality standards (NAAQS) in a non-interference demonstration varies
depending on the nature of the emissions associated with the proposed
SIP revision.
In the absence of an attainment demonstration, to demonstrate no
interference with any applicable NAAQS or requirement of the CAA under
section 110(l), EPA believes it is appropriate to allow states to
substitute equivalent emissions reductions to compensate for any change
to a SIP-approved program, as long as actual emissions in the air are
not increased. ``Equivalent'' emissions reductions mean reductions
which are equal to or greater than those reductions achieved by the
control measure approved in the SIP. To show that compensating
emissions reductions are equivalent, modeling or adequate justification
must be provided. The compensating, equivalent reductions must
represent actual, new emissions reductions achieved in a
contemporaneous time frame to the change of the existing SIP control
measure, in order to preserve the status quo level of emissions in the
air. In addition to being contemporaneous, the equivalent emissions
reductions must also be permanent, enforceable, quantifiable, and
surplus to be approved into the SIP.
The implementation of the Stage II program in Indiana has resulted
in reductions of VOC emissions. VOCs contribute to the formation of
ground-level ozone. Thus the potential increase in VOC needs to be
offset with equivalent (or greater) emissions reductions from another
control measure in order to demonstrate non-interference with the 8-
hour ozone NAAQS. The Indiana Stage II SIP revision includes a 110(l)
demonstration for both areas that uses equivalent emissions reductions
to compensate for emission reduction losses between 2013 and 2015
resulting from the removal of Stage II systems at a number of GDFs
before ORVR is in widespread use as allowed by Indiana's NPD. IDEM has
calculated that by 2016, ORVR will be in widespread use in both areas
and the absence of the Indiana Stage II program after 2016 would not
result in a net VOC emissions increase compared to the continued
utilization of this emissions control technology. The emission
reduction losses resulting from removing Stage II before 2016 are
transitional and relatively small since ORVR-equipped vehicles will
continue to phase into the fleet over the coming years. IDEM's
calculation indicates a maximum potential loss of 0.02317 tons per
summer day (tpsd) in Lake and Porter counties and 0.00408 tpsd in Clark
and Floyd counties from 2013 through 2015.
For Lake and Porter Counties, IDEM is proposing the use of VOC
emission reductions associated with the shutdown of the State Line
Energy Generating Plant (State Line Energy) formerly located in Lake
County, Indiana to offset the 0.02317 tpsd increase in those counties.
State Line ceased operations in March 31, 2012 and its operating permit
has been revoked. The expiration and revocation of this source's permit
enables the state to use the VOC emission credits associated with this
facility for other purposes under the SIP and makes such credits
permanent and enforceable. Using the last three full years of
operations (2009-2011) State Line Energy averaged 0.215 tpsd of VOC of
emissions offsets. Table 1 shows the increase of emissions associated
with the removal of Stage II systems at facilities in Lake and Porter
counties, as well as offset emissions associated with State Line
Energy. In the table, the number of facilities removing Stage II
equipment for 2013 represents the actual number of facilities that
sought an exemption from implementing the Stage II requirements. For
2014 and 2015, the number of facilities removing Stage II equipment is
a conservative estimate.\2\
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\2\ The actual number of facilities expected to remove Stage II
equipment during this timeframe believed to be less, thus resulting
in lower emissions increase.
Table 1--Lake and Porter Counties Offset Analysis
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State Line
Number of Emissions Emissions Energy offsets
facilities factor VOC increase VOC VOC tons/avg. Offset greater
Year removing Stage tons/ facility/ tons/avg. summer day than increase?
II avg. summer summer day (avg. of 2009-
day 2011)
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2013........................... 6 0.000944006 0.005664035 0.215 Yes.
2014........................... 12 0.000654335 0.007852014 0.215 Yes.
2015........................... 24 0.000402349 0.009656365 0.215 Yes.
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As illustrated in Table 1, and documented in Indiana's SIP
revision, for Lake and Porter counties, for each year prior to the
widespread use of ORVR in Indiana (2016), the VOC emissions increase
associated with the removal of Stage II systems is more than offset by
the VOC emission reductions
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attributed to the permanent closure of the State Line Energy facility.
For Clark and Floyd counties, IDEM is proposing the use of offsets
generated by the Architectural and Industrial Maintenance (AIM)
coatings rule adopted by Indiana at 326 IAC 8-14. Indiana's AIM
coatings rule goes above and beyond the Federal AIM rule by adopting a
rule that is similar to the Ozone Transport Commission (OTC) model
rule. According to a 2006 Lake Michigan Air Directors Consortium
(LADCO) white paper, the OTC model rule provides a 31% to 48.4%
(depending on the AIM coatings category) reduction in VOC emissions
compared to uncontrolled 2002 base case emissions while the Federal AIM
rule alone only provides a 20% reduction compared to base case.
The Indiana AIM rule was approved into the SIP on August 30, 2012
(77 FR 52606). Indiana was not required to adopt an AIM coatings rule
but did so as a multi-state effort to help reduce ozone levels at the
regional level. Indiana did not adopt the AIM rule to comply with any
Indiana SIP planning requirements and has not taken credit for it in
air quality plans, nor has it been included in maintenance year
horizons or rate of further progress (RFP) inventories. Therefore,
these SIP approved AIM limits can be used as offsets for other
purposes, such as this SIP revision. Offsets of 0.234 tpsd of VOC are
available based on calculations derived using the 2011 National
Emissions Inventory data. Table 2 shows the increase of VOC emission
associated with the removal of Stage II systems at facilities in Clark
and Floyd between 2013 and 2015, as well as offset emissions associated
with AIM coatings. In the table, the number of facilities removing
Stage II equipment for 2013 represents the actual number of facilities
that have sought an exemption from implementing the Stage II
requirements. For 2014 and 2015, the number of facilities removing
Stage II equipment is a conservative estimate.
Table 2--Clark and Floyd Counties Offset Analysis
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AIM Coatings
Number of Emissions Emissions offsets VOC
facilities factor VOC increase VOC tons/avg. Offset greater
Year removing Stage tons/ facility/ tons/avg. summer day than increase?
II avg. summer summer day (avg. of 2009-
day 2011)
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2013........................... 0 0.000659923 0.0 0.292 Yes.
2014........................... 4 0.000457424 0.001829695 0.292 Yes.
2015........................... 8 0.000281269 0.002250149 0.292 Yes.
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As illustrated in Table 2, and documented in Indiana's SIP
revision, for Clark and Floyd counties, for each year prior to the
widespread use of ORVR in Indiana (2016), the VOC emissions increase
associated with the removal of Stage II systems is more than offset by
the VOC emission reductions attributed to reductions in AIM coatings
emissions. For both the Clark and Floyd counties and Lake and Porter
counties analyses, Indiana is requesting to use only the portion of the
emissions offsets necessary to offset the emissions increase due to the
removal of Stage II systems before Indiana's 2016 widespread use
timeframe. Indiana retains the right to utilize any remaining emissions
offsets in the future.
Based on the use of permanent, enforceable, contemporaneous,
surplus emissions reductions achieved through the shutdown of the
previously permitted State Line Energy facility in Lake and Porter
counties and the offsets from VOC reductions in AIM coatings emissions
in Clark and Floyd counties, EPA believes that the removal of the
Indiana Stage II program does not interfere with southeast Indiana's
ability to demonstrate compliance with the 8-hour ozone NAAQS.
EPA also examined whether the removal of Stage II program
requirements in both areas will interfere with attainment of other air
quality standards. Lake and Porter counties are designated attainment
for all standards other than ozone, including sulfur dioxide and
nitrogen dioxide. Clark and Floyd counties are designated attainment
for all standards other than ozone and particulate matter.\3\ EPA has
no reason to believe that the removal of the Stage II program in
Indiana will cause the areas to become nonattainment for any of these
pollutants. In addition, EPA believes that removing the Stage II
program requirements in Indiana will not interfere with the areas'
ability to meet any other CAA requirement.
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\3\ Clark and Floyd counties are currently designated
nonattainment for the 1997 Annual fine particulate matter
(PM2.5) standard. While VOC is one of the precursors for
particulate matter (NAAQS) formation, studies have indicated that in
the southeast which includes the Louisville, KY ozone nonattainment
area, emissions of direct PM2.5 and the precursor sulfur
oxides are more significant to ambient summertime PM2.5
concentrations than emissions of nitrogen oxides and anthropogenic
VOC. See. E.g., Journal of Environmental Engineering--Quantifying
the sources of ozone, fine particulate matter, and regional haze in
the Southeastern United States (June 24, 2009), available at: http://www.journals.elsevier.com/journal-ofenvironmental-management.
Currently, Clark and Floyd counties are no designated nonattainment
for any of the other criteria pollutants (i.e. sulfur dioxide,
nitrogen dioxide, lead or carbon monoxide) and those pollutants are
not affected by the removal of Stage II requirements.
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Based on the above discussion and the state's section 110(l)
demonstration, EPA believes that removal of the Stage II program will
not interfere with attainment or maintenance of any of the NAAQS in
both the Chicago and Louisville, Kentucky ozone nonattainment areas and
would not interfere with any other applicable requirement of the CAA,
and thus, are approvable under CAA section 110(l).
IV. What action is EPA proposing to take?
EPA is proposing to approve, as a revision to the Indiana ozone
SIP, regulations submitted by IDEM on April 27, 2015 and September 10,
2015. EPA finds that the revisions will not interfere with any
applicable CAA requirement.
V. Incorporation by Reference
In this rulemaking, EPA is proposing to include in a final EPA rule
regulatory text that includes incorporation by reference. In accordance
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by
reference Indiana rules 326 IAC 8-4-1 ``Applicability'' and 326 IAC 8-
4-6 ``Gasoline dispensing facilities'', effective March 5, 2015. EPA
has made, and will continue to make, these documents generally
available through www.regulations.gov and/or at the appropriate EPA
office (see the ADDRESSES section of this preamble for more
information).
[[Page 9395]]
VI. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, the SIP is not approved to apply on any Indian reservation
land or in any other area where EPA or an Indian tribe has demonstrated
that a tribe has jurisdiction. In those areas of Indian country, the
rule does not have tribal implications and will not impose substantial
direct costs on tribal governments or preempt tribal law as specified
by Executive Order 13175 (65 FR 67249, November 9, 2000).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen oxides, Ozone,
Volatile organic compounds.
Dated: February 11, 2016.
Robert A. Kaplan,
Acting Regional Administrator, Region 5.
[FR Doc. 2016-03894 Filed 2-24-16; 8:45 am]
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