[Federal Register Volume 71, Number 182 (Wednesday, September 20, 2006)]
[Rules and Regulations]
[Pages 54908-54912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7809]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2004-0508; FRL-8221-2]
RIN 2060-AJ71
Control of Air Pollution From New Motor Vehicles; Second
Amendment to the Tier 2/Gasoline Sulfur Regulations
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: This action amends the credit generation provisions of the
Geographic Phase-in Area (GPA) gasoline sulfur program to yield the
correct number of credits for refineries and importers that produce GPA
gasoline and eliminate the generation of windfall credits by refineries
or importers that have gasoline sulfur baselines below 150 ppm sulfur.
In June 2002, we published a Direct Final Rule (DFR) and concurrent
Notice of Proposed Rulemaking (NPRM) to amend certain provisions of the
gasoline sulfur program concerning Geographic Phase-in Area (GPA)
gasoline. Specifically, we replaced the variable standard for GPA
gasoline with a flat standard of 150 parts per million (ppm) sulfur for
the duration of the GPA program. To prevent the generation of windfall
credits by refineries or importers that had gasoline sulfur baselines
below 150 ppm sulfur, we also amended the program's credit generation
provisions. As stated in the preamble to the Direct Final Rule, we
believed that the amendment would result in an equivalent number of
credits generated during the amended GPA program as compared to the
original program described under the Tier 2 final rule. Despite our
intent for the revised calculations to yield the equivalent number of
credits, the amended credit provisions were incorrect as pointed out by
an adverse comment received on the DFR. Based on this adverse comment,
we issued a partial withdrawal notice on August 26, 2002, to withdraw
the amendments to the credit provisions and reinstate the provisions
that were previously in effect. However, we also stated that we would
address the adverse comments in a subsequent final action, this action,
based on the concurrent NPRM.
DATES: This final rule is effective on January 1, 2007.
ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-HQ-OAR-2004-0508. All documents in the docket are listed in the
http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in http://www.regulations.gov or in hard copy at the EPA Docket Center,
EPA/DC, EPA West, Room B102, 1301 Constitution Ave., NW., Washington,
DC. This Docket Facility is open from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal holidays. The Docket telephone number
is (202) 566-1742. The Public Reading Room is open from 8:30 a.m. to
4:30 p.m., Monday through Friday, excluding legal holidays. The
telephone number for the Public Reading Room is (202) 566-1744.
Note: The EPA Docket Center suffered damage due to flooding
during the last week of June 2006. The Docket Center is continuing
to operate. However, during the cleanup, there will be temporary
changes to Docket Center telephone numbers, addresses, and hours of
operation for people who wish to visit the Public Reading Room to
view documents. Consult EPA's Federal Register notice at 71 FR 38147
(July 5, 2006) or the EPA Web site at http://www.epa.gov/epahome/dockets.htm for current information on docket status, locations and
telephone numbers.
FOR FURTHER INFORMATION CONTACT: Mary Manners, Compliance and
Innovative Strategies Division, U.S. EPA, National Vehicle and Fuels
Emission Laboratory, 2000 Traverwood, Ann Arbor, MI 48105; telephone
(734) 214-4873, fax (734) 214-4053, e-mail [email protected].
SUPPLEMENTARY INFORMATION:
Does This Action Apply to Me?
This action will affect you if you produce gasoline. The table
below gives an example of entities that may have to comply with the
regulations. However, since this is only an example, you should
carefully examine these and other existing regulations in Title 40 Part
80 of the Code of Federal Regulations (CFR). If you have any questions,
please call the person listed in the FOR FURTHER INFORMATION CONTACT
section above.
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NAICS codes Examples of potentially
Category \a\ SIC codes \b\ regulated entities
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Industry...................................... 324110 2911 Petroleum refiners.
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\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) System.
Outline of This Preamble
I. Electronic Availability
II. Background
A. Refinery/Importer Annual Average GPA Standard and Credit
Generation Under the Tier 2 Final Rule
B. Refinery/Importer Annual Average GPA Standard and Credit
Generation Under the June 2002 Direct Final Rule
III. What Is EPA Finalizing Under This Action?
IV. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health & Safety Risks
[[Page 54909]]
H. Executive Order 13211: Actions That Significantly Affect
Energy Supply, Distribution, or Use
I. National Technology Transfer Advancement Act
J. Congressional Review Act
I. Electronic Availability
Today's action is available electronically on the date of
publication from EPA's Federal Register Internet Web site listed below.
Electronic copies of this preamble, regulatory language, and other
documents associated with today's final rule are available from the EPA
Office of Transportation and Air Quality Web site, listed below,
shortly after the rule is signed by the Administrator. These services
are free of charge, except any cost that you already incur for
connecting to the Internet.
EPA Federal Register Web site: http://www.epa.gov/fedrgstr/EPA-AIR/
(either select a desired date or use the Search feature).
EPA Office of Transportation and Air Quality Web site: http://www.epa.gov/otaq/ (look in What's New or under specific rulemaking
topic).
Please note that due to differences between the software used to
develop the documents and the software into which the documents may be
downloaded, changes in format, page length, etc., may occur.
II. Background
Under a direct final rule (DFR) published in the Federal Register
on June 12, 2002 (67 FR 40169), we eliminated the anti-backsliding
provision for the annual average sulfur standard for Geographic Phase-
in Area (GPA) gasoline. Specifically, we replaced the variable average
standard for GPA gasoline \1\ with a flat average standard of 150 ppm
sulfur for 2004 through the duration of the GPA program.\2\ To prevent
the generation of windfall credits by refineries that had gasoline
sulfur baselines below 150 ppm sulfur, we also amended the credit
generation provisions for the duration of the GPA program (Sec.
80.310). As stated in the preamble to the direct final rule, we
believed that the amendment to Sec. 80.310 would result in an
equivalent number of credits generated during the amended GPA program
as compared to the original program under the Tier 2 final rule (65 FR
6698, February 10, 2000), even though the average standard for GPA
gasoline was changed to 150 ppm sulfur.
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\1\ The anti-backsliding requirement was defined for the average
standard for GPA gasoline as the least of (1) 150 ppm, (2), the
refinery's or importer's 1997/1998 average gasoline sulfur level,
calculated in accordance with section 80.295, plus 30 ppm, or (3)
the lowest average sulfur level for any year in which the refinery
generated allotments or credits under sections 80.275(a) or 80.305
plus 30 ppm, not to exceed 150 ppm.
\2\ Under the Tier 2 final rule (65 FR 6698, February 10, 2000),
the GPA program lasted from 2004 through 2006. However, the highway
diesel final rule (66 FR 5002, January 18, 2001) allowed a two year
extension of the GPA program in exchange for full compliance with
the 15 ppm ultra-low sulfur diesel fuel standard by June 1, 2006.
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However, one commenter on the DFR indicated that the amendment to
Sec. 80.310 would change the manner in which a refinery or importer of
GPA gasoline would generate gasoline sulfur credits beginning in 2004.
Specifically, the commenter stated that the amendments to Sec. Sec.
80.310(a) and 80.310(b) would cause the credit baselines for its
refineries to be reduced from 150 ppm to lower sulfur levels. The
commenter also indicated that the changes to Sec. 80.310(d) would
require a refinery to reduce sulfur levels by at least 10 percent from
its baseline before credits could be generated. The commenter stated
that it would be adversely impacted by these changes since the amended
rule would require it to invest capital dollars earlier than it had
currently planned at its refineries in order to generate credits. The
commenter stated that the combined effect of these changes would be
detrimental because the number of credits that it could generate would
be significantly reduced. The commenter indicated that it would be
negatively impacted by this credit generation limitation since its
ability to defer capital expenditures would be limited.
Based on this adverse comment, we issued a partial withdrawal
notice (67 FR 38338, August 26, 2002) to withdraw the amendments to
Sec. 80.310(a), (b), and (d). In the DFR, we stated that if we
received adverse comment on one or more distinct amendments,
paragraphs, or sections of the direct final rule by July 12, 2002, we
would publish a timely withdrawal in the Federal Register indicating
which provisions would become effective on September 10, 2002, and
which provisions would be withdrawn due to adverse comment. During the
30-day comment period for the rule, we received the adverse comments
discussed above on the amendments to Sec. 80.310(a), (b), and (d). In
the partial withdrawal notice, we withdrew those amendments and
reinstated the provisions that were previously in effect. However, we
also stated that we would address the adverse comments in a subsequent
final action, today's action, based on the Notice of Proposed
Rulemaking that was published concurrently with the DFR.
A. Refinery/Importer Annual Average GPA Standard and Credit Generation
Under the Tier 2 Final Rule
Prior to the June 2002 DFR, a refinery or importer's average sulfur
standard for GPA gasoline would have been, with the anti-backsliding
provisions of the Tier 2 final rule, the least of 150 ppm, the
refinery's 1997-98 sulfur baseline plus 30 ppm, or the level from which
credits were generated plus 30 ppm. A refinery or importer with a
sulfur baseline of 100 ppm, for example, would have had a GPA gasoline
sulfur standard of 130 ppm for the duration of the GPA program (the
refinery or importer's 1997-98 baseline plus 30 ppm), assuming that no
credits were generated prior to 2004. In 2004 and beyond, that refinery
or importer would have generated credits based on the following
equation under Sec. 80.310:
CRa = Va x (Sstd-Sa)
Where:
CRa = Credits generated for the averaging period.
Va = Total annual volume of gasoline produced at a
refinery or imported during the averaging period.
Sstd = The standard for GPA gasoline (least of 150 ppm,
the refinery or importer's 1997-98 sulfur baseline plus 30 ppm, or
the level from which credits were generated plus 30 ppm).
Sa = Actual annual average sulfur level for gasoline
produced at a refinery or imported during the averaging period,
exclusive of any credits.
Using a volume of 100 gallons for simplified calculation purposes
and assuming that the refinery or importer's actual annual gasoline
sulfur level was held at its baseline level of 100 ppm, that refinery
or importer would have generated 3000 ppm-gallon credits [100 gallons x
(130 ppm - 100 ppm)].
B. Refinery/Importer Annual Average GPA Standard and Credit Generation
Under the June 2002 Direct Final Rule
As a result of the June 2002 DFR, a refinery or importer's average
sulfur standard for GPA gasoline would have been a flat standard of 150
ppm. As mentioned above, the DFR also amended the credit generation
provisions (Sec. 80.310) for the duration of the GPA program to
prevent the generation of windfall credits. As a result of the DFR,
that refinery or importer would have generated credits based on the
following equation:
CRa = Va x (SCredit-Sa)
Where:
CRa = Credits generated for the averaging period.
[[Page 54910]]
Va = Total annual volume of gasoline produced at a
refinery or imported during the averaging period.
SCredit = For GPA gasoline, the least of 150 ppm, or the
refinery or importer's 1997-98 sulfur level, or the refinery or
importer's lowest annual average sulfur level for any year from 2000
through 2003 during which the refinery or importer generated credits
or allotments.
Sa = Actual annual average sulfur level for gasoline
produced at a refinery or imported during the averaging period,
exclusive of any credits.
Again using a volume of 100 gallons for simplified calculation
purposes and assuming that the refinery or importer's actual annual
gasoline sulfur level was held at its baseline level of 100 ppm, that
refinery or importer would not generate any credits under the amended
Sec. 80.310 [100 gallons x (100 ppm - 100 ppm) = 0]. Furthermore, the
amendment to Sec. 80.310 specified that refiners and importers of GPA
gasoline may generate credits beginning in 2004 only if the annual
average sulfur level for the gasoline produced or imported during the
annual averaging period is less than 0.90 of the refinery or importer's
1997-98 baseline sulfur level. In this example, the refinery or
importer would not be able to generate credits until it reduced its
gasoline sulfur levels to 90 percent of its baseline, or 90 ppm [0.90 x
100].
III. What Is EPA Finalizing Under This Action?
Today's final rule does not further amend the refinery/importer
annual average standard for GPA gasoline. That is, the standard
continues to be 150 ppm for the duration of the GPA program. However,
today's final rule does amend the credit generation provisions of Sec.
80.310 by adding 30 ppm to the Scredit variable, as shown below.
Today's final rule also amends Sec. Sec. 80.285 and 80.415 to make
them consistent with Sec. 80.310. These amendments will yield the
correct number of credits generated in that the number of credits
generated will be equivalent to the number of credits generated under
Sec. 80.310 of the Tier 2 final rule. While these amendments apply to
credits generated beginning in 2004, these amendments will not be
effective until January 1, 2007 and will not be applied retroactively.
Specifically, under today's final rule, a refinery or importer will
generate credits based on the following equation:
CRa = Va x (SCredit-Sa)
Where:
CRa = Credits generated for the averaging period.
Va = Total annual volume of gasoline produced at a
refinery or imported during the averaging period.
SCredit = For GPA gasoline, the least of 150 ppm, or the
refinery's or importer's 1997-98 sulfur level plus 30 ppm, or the
refinery's lowest annual average sulfur level for any year from 2000
through 2003 during which the refinery generated credits or
allotments plus 30 ppm.
Sa = Actual annual average sulfur level for gasoline
produced at a refinery or imported during the averaging period,
exclusive of any credits.
Again using a volume of 100 gallons for simplified calculation
purposes and assuming that the refinery or importer's actual annual
gasoline sulfur level is held at its baseline level of 100 ppm, that
refinery or importer will generate 3000 ppm-gallon credits under
today's final rule [100 gallons x (130 ppm-100 ppm) = 3000].
IV. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
This action is not a ``significant regulatory action'' under the
terms of Executive Order (EO) 12866 (58 FR 51735, October 4, 1993) and
is therefore not subject to review under the EO.
B. Paperwork Reduction Act
This action does not impose an information collection burden under
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.
This action specifically amends the regulations pertaining to the
calculation of GPA gasoline sulfur credits to yield the correct number
of credits for refineries and importers that produce GPA gasoline and
to eliminate the generation of windfall credits by refineries or
importers that have gasoline sulfur baselines below 150 ppm sulfur.
This action is of limited impact in that it only applies to GPA
gasoline and only for 2007 and 2008; it does not impose any new
information collection requirements on the regulated entities.
Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.
An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9.
C. Regulatory Flexibility Act
EPA has determined that it is not necessary to prepare a regulatory
flexibility analysis in connection with this final rule.
For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's (SBA) regulations at 13 CFR
121.201; (2) a small governmental jurisdiction that is a government of
a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
After considering the economic impacts of today's final rule on
small entities, EPA has concluded that this action will not have a
significant economic impact on a substantial number of small entities.
Today's action does not apply to or affect small refiners or any other
small entity.
As stated above, today's action amends the credit generation
provisions of the GPA gasoline sulfur program to yield the correct
number of credits for GPA gasoline and eliminate the generation of
windfall credits by refineries or importers that have gasoline sulfur
baselines below 150 ppm sulfur.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments, and the private sector. Under Sec. 202 of the UMRA, We
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, and tribal governments, in
the aggregate, or to the private sector, of $100 million or more for
any single year. Before promulgating a rule for which a written
statement is needed, Sec. 205 of the UMRA generally requires us to
identify and
[[Page 54911]]
consider a reasonable number of regulatory alternatives and adopt the
least costly, most cost-effective, or least burdensome alternative that
achieves the objectives of the rule. The provisions of Sec. 205 do not
apply when they are inconsistent with applicable law. Moreover, Sec.
205 allows us to adopt an alternative that is not the least costly,
most cost-effective, or least burdensome alternative if we provide an
explanation in the final rule of why such an alternative was adopted.
Before we establish any regulatory requirement that may
significantly or uniquely affect small governments, including tribal
governments, we must develop a small government plan pursuant to Sec.
203 of the UMRA. Such a plan must provide for notifying potentially
affected small governments, and enabling officials of affected small
governments to have meaningful and timely input in the development of
our regulatory proposals with significant Federal intergovernmental
mandates. The plan must also provide for informing, educating, and
advising small governments on compliance with the regulatory
requirements.
This rule contains no Federal mandates for State, local, or tribal
governments as defined by the provisions of Title II of the UMRA. The
rule imposes no enforceable duties on any of these governmental
entities. Nothing in the rule will significantly or uniquely affect
small governments.
We have determined that this rule does not contain a Federal
mandate that may result in estimated expenditures of more than $100
million to the private sector in any single year. This action has the
net effect of amending 40 CFR 80.285, 80.310, and 80.415 to correct the
credit generation provisions for GPA gasoline. Therefore, the
requirements of the Unfunded Mandates Act do not apply to this action.
E. Executive Order 13132: Federalism
Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires us to develop an accountable process to ensure
``Meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.''
Under section 6 of Executive Order 13132, we may not issue a
regulation that has federalism implications, that imposes substantial
direct compliance costs, and that is not required by statute, unless
the Federal government provides the funds necessary to pay the direct
compliance costs incurred by State and local governments, or we consult
with State and local officials early in the process of developing the
proposed regulation. We also may not issue a regulation that has
federalism implications and that preempts State law, unless the Agency
consults with State and local officials early in the process of
developing the proposed regulation.
Section 4 of the Executive Order contains additional requirements
for rules that preempt State or local law, even if those rules do not
have federalism implications (i.e., the rules will not have substantial
direct effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government). Those
requirements include providing all affected State and local officials
notice and an opportunity for appropriate participation in the
development of the regulation. If the preemption is not based on
express or implied statutory authority, we also must consult, to the
extent practicable, with appropriate State and local officials
regarding the conflict between State law and federally protected
interests within the agency's area of regulatory responsibility.
This final rule does not have federalism implications. It will not
have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in Executive Order 13132. The requirements of the rule
will be enforced by the Federal government at the national level. Thus,
the requirements of section 6 of the Executive Order do not apply to
this rule. Although section 6 of Executive Order 13132 does not apply
to this rule, we did consult with State and local officials in
developing this rule.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' This final rule corrects the
credit generation provisions for GPA gasoline under the Tier 2 program.
This final rule does not have tribal implications, as specified in
Executive Order 13175.
G. Executive Order 13045: Protection of Children From Environmental
Health & Safety Risks
Executive Order 13045, ``Protection of Children from Environmental
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies
to any rule that (1) is determined to be ``economically significant''
as defined under Executive Order 12866, and (2) concerns an
environmental health or safety risk that we have reason to believe may
have a disproportionate effect on children. If the regulatory action
meets both criteria, section 5-501 of the Order directs us to evaluate
the environmental health or safety effects of the planned rule on
children, and explain why the planned regulation is preferable to other
potentially effective and reasonably feasible alternatives considered
by us.
This rule is not subject to the Executive Order because it is not
an economically significant regulatory action as defined by Executive
Order 12866. Furthermore, this rule does not concern an environmental
health or safety risk that we have reason to believe may have a
disproportionate effect on children.
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This rule is not subject to Executive Order 13211, ``Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use'' (66 FR 28355, May 22, 2001) because it is not a
significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (NTTAA), 12(d) of Public Law 104-113, directs us to use
voluntary consensus standards in our regulatory activities unless it
would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (e.g., materials
specifications, test methods, sampling procedures, and business
practices) developed or adopted by voluntary consensus standards
bodies. The NTTAA directs us to provide Congress, through OMB,
explanations when we decide not to use available and applicable
voluntary consensus standards.
[[Page 54912]]
This action does not involve technical standards. Therefore, EPA
did not consider the use of any voluntary consensus standards.
J. Congressional Review Act
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2). This rule will be effective January 1, 2007.
List of Subjects in 40 CFR Part 80
Environmental protection, Fuel additives, Gasoline, Imports,
Labeling, Motor vehicle pollution, Penalties, Reporting and
recordkeeping requirements.
Dated: September 14, 2006.
Stephen L. Johnson,
Administrator.
0
For the reasons set forth in the preamble, title 40, Chapter 1 of the
Code of Federal Regulations is amended as follows:
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7545 and 7601(a).
0
2. Section 80.285 is amended by revising paragraph (b)(1)(ii) to read
as follows:
Sec. 80.285 Who may generate credits under the ABT program?
* * * * *
(b) * * *
(1) * * *
(ii) Refiners and importers of gasoline designated as GPA gasoline
under Sec. 80.219, using the least of 150.00 ppm, or the refinery's or
importer's 1997-98 baseline calculated under Sec. 80.295 plus 30.00
ppm, or the refinery's lowest annual average sulfur level for any year
from 2000 through 2003 during which the refinery generated credits or
allotments plus 30.00 ppm (for any party generating credits under both
paragraphs (b)(1)(i) of this section and this paragraph (b)(1)(ii),
such credits must be calculated separately); or
* * * * *
0
3. Section 80.310 is amended by revising paragraphs (a) and (b) to read
as follows:
Sec. 80.310 How are credits generated beginning in 2004?
(a) A refiner for any refinery, or an importer, may generate
credits in 2004 and thereafter if the annual average sulfur level for
gasoline produced or imported for the averaging period is less than
30.00 ppm; or, for refiners that are subject to the small refiner
standards in Sec. 80.240, the small refiner annual average sulfur
standard applicable to that refinery; or, for refiners and importers
subject to the GPA standards in Sec. 80.216, the least of 150.00 ppm,
or the refinery's or importer's 1997-1998 sulfur level calculated under
Sec. 80.295 plus 30.00 ppm, or the refinery's lowest annual average
sulfur level for any year from 2000 through 2003 during which the
refinery generated credits or allotments plus 30.00 ppm.
(b) Credits are calculated as follows:
CRa = Va x (SCredit - Sa)
Where:
CRa = Credits generated for the averaging period.
Va = Total annual volume of gasoline produced at a
refinery or imported during the averaging period.
SCredit = 30.00 ppm; or the sulfur standard for a small
refinery established under Sec. 80.240; or, for gasoline designated
as GPA gasoline under Sec. 80.219, the least of 150.00 ppm, or the
refinery's or importer's 1997-1998 sulfur level calculated under
Sec. 80.295 plus 30.00 ppm, or the refinery's lowest annual average
sulfur level for any year from 2000 through 2003 during which the
refinery generated credits or allotments plus 30.00 ppm.
Sa = Actual annual average sulfur level, calculated in
accordance with the provisions of Sec. 80.205, for gasoline
produced at a refinery or imported during the averaging period,
exclusive of any credits.
* * * * *
0
4. Section 80.415 is amended by revising paragraph (a)(2)(iii) to read
as follows:
Sec. 80.415 What are the attest engagement requirements for gasoline
sulfur compliance applicable to refiners and importers?
* * * * *
(a) * * *
(2) * * *
(iii) If the annual average sulfur level for any year in which
credits were generated for 2000 through 2003 was less than the baseline
level under paragraph (a)(1) of this section, for small refiners report
as a finding the lowest annual sulfur level as the new baseline value
for purposes of establishing the small refiner standards under Sec.
80.240, and for GPA gasoline report as a finding the lowest annual
sulfur level plus 30.00 ppm as the new sulfur level for purposes of
credit generation under Sec. 80.310, if lower than 150.00 ppm.
* * * * *
[FR Doc. 06-7809 Filed 9-19-06; 8:45 am]
BILLING CODE 6560-50-P