Air Plan Approval; Kentucky; Removal of Stage II Gasoline Vapor Recovery Program |
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V. Anne Heard
Environmental Protection Agency
3 July 2017
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)]
[Proposed Rules]
[Pages 30809-30812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13858]
[[Page 30809]]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R04-OAR-2017-0014; FRL-9964-33-Region 4]
Air Plan Approval; Kentucky; Removal of Stage II Gasoline Vapor
Recovery Program
AGENCY: Environmental Protection Agency.
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve changes to the Kentucky State Implementation Plan (SIP)
submitted by the Commonwealth of Kentucky through its Energy and
Environment Cabinet (EEC) on November 10, 2016, for the Louisville
Metro Air Pollution Control District (District). This SIP revision
seeks to remove Stage II vapor control requirements for new and
upgraded gasoline dispensing facilities and allow for the
decommissioning of existing Stage II equipment in Jefferson County,
Kentucky. EPA has preliminarily determined that Kentucky's November 10,
2016, SIP revision is approvable because it is consistent with the
Clean Air Act (CAA or Act).
DATES: Written comments must be received on or before August 2, 2017.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2017-0014 at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. 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, 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: Kelly Sheckler, Air Regulatory
Management Section, Air Planning and Implementation Branch, Air,
Pesticides and Toxics Management Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia
30303-8960. Ms. Sheckler's phone number is (404) 562-9222. She can also
be reached via electronic mail at sheckler.kelly@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Background for Federal Stage II Requirements
Stage I vapor recovery is a type of emission control system that
captures gasoline vapors that are released when gasoline is delivered
to a storage tank. The vapors are returned to the tank truck as the
storage tank is being filled with fuel, rather than released to the
ambient air. 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 and capture the refueling
fuel vapors at the gasoline pump nozzle. The system carries the vapors
back to the underground storage tank at the gasoline dispensing
facility 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.
Under section 182(b)(3) of the CAA, each state was required to
submit a SIP revision to implement Stage II for all ozone nonattainment
areas classified as moderate, serious, severe, or extreme, primarily
for the control of volatile organic compounds (VOC)--a precursor to
ozone formation.\1\ However, section 202(a)(6) of the CAA states that
the section 182(b)(3) Stage II requirements for moderate ozone
nonattainment areas shall not apply after the promulgation of ORVR
standards.\2\ ORVR standards were promulgated by EPA on April 6, 1994.
See 59 FR 16262 and 40 CFR parts 86, 88, and 600. As a result, the CAA
no longer requires moderate areas to impose Stage II controls under
section 182(b)(3), and such areas were able to submit SIP revisions, in
compliance with section 110(l) of the CAA, to remove Stage II
requirements from their SIPs. EPA's policy memoranda related to ORVR,
dated March 9, 1993, and June 23, 1993, provide further guidance on
removing Stage II requirements from certain areas. The policy
memorandum dated March 9, 1993, states that ``[w]hen onboard rules are
promulgated, a State may withdraw its Stage II rules for moderate areas
from the SIP (or from consideration as a SIP revision) consistent with
its obligations under sections 182(b)(3) and 202(a)(6), so long as
withdrawal will not interfere with any other applicable requirement of
the Act.'' \3\
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\1\ Section 182(b)(3) states that each State in which all or
part of an ozone nonattainment area classified as moderate or above
shall, with respect to that area, submit a SIP revision requiring
owners or operators of gasoline dispensing systems to install and
operate vapor recovery equipment at their facilities. Specifically,
the CAA specifies that the Stage II requirements must apply to any
facility that dispenses more than 10,000 gallons of gasoline per
month or, in the case of an independent small business marketer
(ISBM), as defined in section 324 of the CAA, any facility that
dispenses more than 50,000 gallons of gasoline per month.
Additionally, the CAA specifies the deadlines by which certain
facilities must comply with the Stage II requirements. For
facilities that are not owned or operated by an ISBM, these
deadlines, calculated from the time of State adoption of the Stage
II requirements, are: (1) 6 months for facilities for which
construction began after November 15, 1990, (2) 1 year for
facilities that dispense greater than 100,000 gallons of gasoline
per month, and (3) by November 15, 1994, for all other facilities.
For ISBMs, section 324(a) of the CAA provides the following three-
year phase-in period: (1) 33 percent of the facilities owned by an
ISBM by the end of the first year after the regulations take effect;
(2) 66 percent of such facilities by the end of the second year; and
(3) 100 percent of such facilities after the third year.
\2\ ORVR is a system employed on gasoline-powered highway motor
vehicles to capture gasoline vapors displaced from a vehicle fuel
tank during refueling events. These systems are required under
section 202(a)(6) of the CAA, and implementation of these
requirements began in the 1998 model year. Currently, they are used
on all gasoline-powered passenger cars, light trucks and complete
heavy trucks of less than 14,000 pounds GVWR. ORVR systems typically
employ a liquid file neck seal to block vapor escape to the
atmosphere and otherwise share many components with the vehicles'
evaporative emission control system including the onboard diagnostic
system sensors.
\3\ Memorandum from John S. Seitz, Director, Office of Air
Quality Planning and Standards, to EPA Regional Air Directors,
Impact of the Recent Onboard Decision on Stage II Requirements in
Moderate Areas (March 9, 1993), available at: http://www.epa.gov/ttn/naaqs/aqmguide/collection/cp2/19930309_seitz_onboard_impact_stage2_.pdf.
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CAA section 202(a)(6) also provides discretionary authority to the
EPA Administrator to, by rule, revise or waive the section 182(b)(3)
Stage II requirement for serious, severe, and extreme ozone
nonattainment areas after the Administrator determines that ORVR is in
widespread use throughout the motor vehicle fleet. On May 16, 2012, in
a rulemaking entitled ``Air Quality: Widespread Use for Onboard
Refueling Vapor Recovery and Stage II Waiver,'' EPA determined that
ORVR technology is in widespread use throughout the motor vehicle fleet
for
[[Page 30810]]
purposes of controlling motor vehicle refueling emissions. See 77 FR
28772. By that action, EPA waived the requirement for states to
implement Stage II gasoline vapor recovery systems at gasoline
dispensing facilities in nonattainment areas classified as serious and
above for the ozone NAAQS. Effective May 16, 2012, states implementing
mandatory Stage II programs under section 182(b)(3) of the CAA were
allowed to submit SIP revisions to remove this program. See 40 CFR
51.126(b).\4\ On April 7, 2012, EPA released the guidance entitled
``Guidance on Removing Stage II Gasoline Vapor Control Programs from
State Implementation Plans and Assessing Comparable Measures'' for
states to consider in preparing their SIP revisions to remove existing
Stage II programs from state implementation plans.\5\
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\4\ As noted above, EPA found, pursuant to CAA section
202(a)(6), that ORVR systems are in widespread use in the motor
vehicle fleet and waived the CAA section 182(b)(3) Stage II vapor
recovery requirement for serious and higher ozone nonattainment
areas on May 16, 2012. Thus, in its implementation rule for the 2008
ozone NAAQS, EPA removed the section 182(b)(3) Stage II requirement
from the list of applicable requirements in 40 CFR 51.1100(o). See
80 FR 12264 for additional information.
\5\ This guidance document is available at: http://www.epa.gov/groundlevelozone/pdfs/20120807guidance.pdf.
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II. Kentucky's Stage II Requirements for Jefferson County
On November 6, 1991, EPA designated and classified Jefferson County
and portions for Bullitt and Oldham Counties in Kentucky (hereinafter
referred to as the ``Kentucky portion of the Louisville Area'' or
``Area'') as part of the five-county area in and around the Louisville,
KY-IN, area as a moderate nonattainment area for the 1-hour ozone
NAAQS.\6\ See 56 FR 56694, 56765. As mentioned above, the ``moderate''
classification triggered various statutory requirements for this Area,
including the requirement pursuant to section 182(b)(3) of the CAA for
the Area to require all owners and operators of gasoline dispensing
systems to install and operate a system for gasoline vapor recovery of
emissions from the fueling of motor vehicles known as ``Stage II.'' \7\
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\6\ The other counties in this nonattainment area were Clark and
Floyd Counties in Indiana. See 56 FR 56755.
\7\ As discussed above, Stage II is a system designed to capture
displaced vapors that emerge from inside a vehicle's fuel tank when
gasoline is dispensed into the tank. There are two basic types of
Stage II systems, the balance type and the vacuum assist type.
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On March 4, 1993, the Commonwealth of Kentucky, on behalf of
Jefferson County, submitted a SIP revision to address the Stage II
requirements for the Kentucky portion of the Louisville Area. EPA
approved that SIP revision, containing Jefferson County Regulation
6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles
(Stage II Vapor Recovery and Control Systems), in a notice published on
March 6, 1996. See 61 FR 8873. Louisville's Stage II rule, as currently
incorporated into the SIP, requires that Stage II systems be tested and
certified to meet a 95 percent emission reduction efficiency by using a
system approved by the California Air Resources Board. The rule
requires sources to verify proper installation and function of Stage II
equipment through use of a liquid blockage test and a leak test prior
to system operation and every five years or upon major modification of
a facility (i.e., 75 percent or more equipment change). Louisville also
established an inspection program consistent with that described in
EPA's Stage II guidance and has established procedures for enforcing
violations of the Stage II requirements.
On March 30, 2001, Kentucky submitted to EPA a request to
redesignate the Kentucky portion of the Louisville Area to attainment
for the 1-hour ozone standard and an associated maintenance plan. The
maintenance plan, as required under section 175A of the CAA, showed
that nitrogen oxides and VOC emissions in the Area would remain below
the 1999 ``attainment year'' levels through the greater than ten-year
period from 1999-2012. In making these projections, Kentucky factored
in the emissions benefit of the Area's Stage II program, thereby
maintaining this program as an active part of its 1-hour ozone SIP. The
redesignation request and maintenance plan were approved by EPA,
effective November 23, 2001. See 66 FR 53665.
Subsequently, Bullitt, Jefferson and Oldham counties in Kentucky
(or portions thereof) were designated nonattainment as a part of a
larger bi-state nonattainment area which included Kentucky and Indiana
counties in and around the Louisville Area for the 1997 8-hour ozone
standard.\8\ On July 5, 2007, the Area (i.e., the Kentucky portion of
the bi-state Louisville Area) was redesignated to attainment of the
1997 8-hour ozone NAAQS. See 72 FR 36601.\9\ The Lousiville Area is
attaining the 2008 ozone NAAQS.
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\8\ No counties in and around the Louisville Area were
designated nonattainment for the 2008 8-hour ozone NAAQS.
\9\ A technical amendment for the approval of the redesignation
request and maintenance plan was subsequently published on August
24, 2007. See 72 FR 48558.
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III. Analysis of the Commonwealth's Submittal
On November 10, 2016, the Commonwealth of Kentucky submitted a
revision for the Jefferson County portion of the Kentucky SIP to EPA
seeking modifications of the Stage II requirements in the Kentucky
portion of the Louisville Area. Specifically, it seeks the removal of
Jefferson County Regulation 6.40, Standards of Performance for Gasoline
Transfer to Motor Vehicles (Stage II Vapor Recovery and Control
Systems) from the Kentucky SIP. These modifications would remove Stage
II vapor control requirements for new and upgraded gasoline dispensing
facilities in the Louisville Area and allow for the decommissioning of
existing Stage II equipment.
EPA's primary consideration for determining the approvability of
the Commonwealth of Kentucky's request is whether this requested action
complies with section 110(l) of the CAA.\10\ Section 110(l) requires
that a revision to the SIP not interfere with any applicable
requirement concerning attainment and reasonable further progress (as
defined in section 171), or any other applicable requirement of the
Act. EPA evaluates each section 110(l) noninterference demonstration on
a case-by-case basis, considering the circumstances of each SIP
revision. EPA interprets 110(l) as applying to all NAAQS that are in
effect, including those that have been promulgated, but for which the
EPA has not yet made designations. The degree of analysis focused on
any particular NAAQS in a noninterference demonstration varies
depending on the nature of the emissions associated with the proposed
SIP revision. EPA's analysis of Kentucky's November 10, 2016, SIP
revision pursuant to section 110(l) is provided below.
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\10\ In addition to a 110(l) noninterference demonstration, CAA
section 193 is a general savings clause that can prohibit removing a
control measure entirely if it was adopted in a nonattainment area
by order, settlement agreement, or plan in effect before the 1990
CAA amendments. Because Kentucky's Stage II rule was not included in
the SIP before the 1990 CAA amendments, section 193 of the CAA does
not apply.
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In its November 10, 2016, SIP revision, Kentucky used EPA's
guidance entitled ``Guidance on Removing Stage II Gasoline Vapor
Control Programs from State Implementation Plans and Assessing
Comparable Measures'' to conduct a series of calculations to determine
the potential impact on air quality of removing the Stage II
[[Page 30811]]
program.\11\ The 110(l) noninterference demonstration for the Kentucky
portion of the Louisville Area focused on VOC emissions because, as
mentioned above, Stage II requirements affect VOC emissions and because
VOC emissions are a precursor for ozone formation. The results of
Kentucky's analysis are provided in the table below.
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\11\ EPA, Guidance on Removing Stage II Gasoline Vapor Control
Programs from State Implementation Plans and Assessing Comparable
Measures, EPA-457/B-12-001 (Aug. 7, 2012), available at https://www.epa.gov/ozone-pollution/ozone-stage-two-vapor-recovery-rule-and-guidance. This guidance document notes that ``the potential emission
control losses from removing Stage II VRS are transitional and
relatively small. ORVR-equipped vehicles will continue to phase in
to the fleet over the coming years and will exceed 80 percent of all
highway gasoline vehicles and 85 percent of all gasoline dispensed
during 2015. As the number of these ORVR-equipped vehicles increase,
the control attributed to Stage II VRS will decrease even further,
and the potential foregone Stage II VOC emission reductions are
generally expected to be no more than one percent of the VOC
inventory in the area.''
Table 1--VOC Emissions Difference Between Stage II VRS in Place and
Removed
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VOC emissions
Year (tons per day)
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2013................................................... 5.11
2014................................................... 3.10
2015................................................... 1.41
2016................................................... 0.06
2017................................................... -1.21
2018................................................... -2.24
2019................................................... -3.11
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Table 1 shows that the removal of Stage II vapor recovery systems
in the Kentucky portion of the Louisville Area starting in 2017 would
have resulted and will result in a VOC emission decrease. If instead
Stage II requirements are kept in place, VOC emissions will decrease by
less, and it will be less beneficial to air quality in the Kentucky
portion of the Louisville Area to keep Stage II systems in
operation.\12\
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\12\ The emissions-reduction disbenefit associated with
continued implementation of Stage II requirements is due to the
incompatibility of some Stage II and ORVR systems. Compatibility
problems can result in an increase in emissions from the underground
storage tank (UST) vent pipe and other system fugitive emissions
related to the refueling of ORVR vehicles with some types of vacuum
assist-type Stage II systems. This occurs during refueling an ORVR
vehicle when the vacuum assist system draws fresh air into the UST
rather than an air vapor mixture from the vehicle fuel tank. Vapor
flow from the vehicle fuel tank is blocked by the liquid seal in the
fill pipe which forms at a level deeper in the fill pipe than can be
reached by the end of the nozzle spout. The fresh air drawn into the
UST enhances gasoline evaporation in the UST which increases
pressure in the UST. Unless it is lost as a fugitive emission, any
tank pressure in excess of the rating of the pressure/vacuum valve
is vented to the atmosphere over the course of a day. See EPA,
Guidance on Removing Stage II Gasoline Vapor Control Programs from
State Implementation Plans and Assessing Comparable Measures, EPA-
457/B-12-001 (Aug. 7, 2012), available at: https://www.epa.gov/ozone-pollution/ozone-stage-two-vapor-recovery-rule-and-guidance.
Thus, as ORVR technology is phased in, the amount of emission
control that is gained through Stage II systems decreases.
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The affected sources covered by the Kentucky portion of the
Louisville Area portion of Kentucky's Stage II vapor recovery
requirements are sources of VOC. Other criteria pollutants (carbon
monoxide, sulfur dioxide, nitrogen dioxide, particulate matter, and
lead) are not emitted by gasoline dispensing facilities and will not be
affected by the removal of Stage II controls.
The proposed revisions to Jefferson County Regulation 6.40,
Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage
II Vapor Recovery and Control Systems), include that gasoline
dispensing facilities located in the Kentucky portion of the Louisville
Area shall decommission and remove the systems no later than December
31, 2018. Kentucky noted in its submission that the decommissioning
procedures in the revised version of Jefferson County Regulation 6.40,
Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage
II Vapor Recovery and Control Systems, follow Petroleum Equipment
Institute (PEI) guidance, ``Recommended Practices for Installation and
Testing of Vapor Recovery Systems at Vehicle Refueling Sites,'' PEI/
RP300-09.
EPA is proposing to determine that Kentucky's technical analysis is
consistent with EPA's guidance on removing Stage II requirements from a
SIP, including as it relates to the decommissioning and phasing out of
the Stage II requirements for the Kentucky portion of the Louisville
Area. EPA is also making the preliminary determination that Kentucky's
SIP revision is consistent with the CAA and with EPA's regulations
related to removal of Stage II requirements from the SIP, and that
these changes will not interfere with any applicable requirement
concerning attainment or any other applicable requirement of the CAA,
and therefore satisfy section 110(l).
IV. Incorporation by Reference
In this rule, 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 Jefferson County Regulation 6.40, Standards of Performance
for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and
Control Systems), effective May 18, 2016. EPA has made, and will
continue to make, these materials generally available through
www.regulations.gov and/or at the EPA Region 4 office (please contact
the person identified in the FOR FURTHER INFORMATION CONTACT section of
this preamble for more information).
V. Proposed Action
EPA is proposing to approve the Commonwealth of Kentucky's November
10, 2016, SIP revision that changes the Louisville Area's Stage II
rule, Jefferson County Regulation 6.40, Standards of Performance for
Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and
Control Systems), to allow for the removal of the Stage II requirement
and the orderly decommissioning of Stage II equipment. EPA is proposing
this approval because the Agency has made the preliminary determination
that the Commonwealth of Kentucky's November 10, 2016, SIP revision
related to the Louisville Area's Stage II rule is consistent with the
CAA and with EPA's regulations and guidance.
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 Act and applicable
federal regulations. See 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
proposed action merely proposes to approve state law as meeting federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this proposed 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
[[Page 30812]]
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 as specified by
Executive Order 13175 (65 FR 67249, November 9, 2000), nor will it
impose substantial direct costs on tribal governments or preempt tribal
law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Nitrogen dioxide, Ozone, Reporting and recordkeeping
requirements, Volatile organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: June 15, 2017.
V. Anne Heard,
Acting Regional Administrator, Region 4.
[FR Doc. 2017-13858 Filed 6-30-17; 8:45 am]
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