[Federal Register: October 25, 2007 (Volume 72, Number 206)]
[Rules and Regulations]
[Page 60570-60583]
[DOCID:fr25oc07-15]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2003-0010 FRL-8487-2]
RIN 2060-AK02

Regulation of Fuels and Fuel Additives: Modification of Baselines
for Gasoline Produced or Imported for Use in Hawaii, Alaska and U.S.
Territories

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This final rule allows refiners and importers who produce or
import conventional gasoline for use in Alaska, Hawaii, the
Commonwealth of Puerto Rico and the Virgin Islands the option to change
the way in which they calculate emissions from such gasoline for
purposes of establishing their conventional gasoline anti-dumping and
toxics performance baselines and determining compliance with their
baselines.
    Specifically, this final rule allows refiners and importers of
gasoline sold for use in these areas to petition EPA to modify their
baselines to replace the anti-dumping statutory baseline with the
single seasonal statutory baseline that is most appropriate to the
regional climate, and to use the seasonal component of the Complex
Model that is most appropriate to the regional climate to calculate
individual baselines and annual average emissions. The rule allows
refiners and importers to petition EPA to use the summer statutory
baseline and the summer Complex Model for all baseline and compliance
calculations for conventional gasoline produced or imported for use in
Hawaii, Puerto Rico and the Virgin Islands, and allows refiners and
importers to petition EPA to use the winter statutory baseline and the
winter Complex Model for all baseline and compliance calculations for
conventional gasoline produced or imported for use in Alaska. EPA is
taking this action to address certain inconsistencies in the fuels
regulations which may have significant unintended negative impacts on
refiners and importers who produce or import gasoline for these areas.

DATES: This final rule is effective on November 26, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-HQ-OAR-2003-0010. All documents in the docket are listed on the
http://www.regulations.gov web site. 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, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically through http://www.regulations.gov
 or in hard copy at the Air and Radiation Docket,

EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington,
DC. 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<PHONE_NUMBER>, and the telephone number for the
Air and Radiation Docket is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Marilyn Bennett, Transportation and
Regional Programs Division, Office of Transportation and Air Quality
(6406J), Environmental Protection Agency, 1200 Pennsylvania Avenue,
NW., Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax
number:<PHONE_NUMBER>; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does This Action Apply to Me?

    Entities potentially affected by this action include those involved
with the production and importation of conventional gasoline motor
fuel. Regulated categories and entities affected by this action
include:

------------------------------------------------------------------------
                                                         Examples of
          Category              NAICS    SIC codes       potentially
                              codes \a\     \b\       regulated parties
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Industry....................     324110       2911  Petroleum Refiners,
                                                     Importers.
------------------------------------------------------------------------
\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) system code.

    This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that EPA is now aware
could be potentially regulated by this action. Other types of entities
not listed in the table could also be regulated. To determine whether
your entity is regulated by this action, you should carefully examine
the applicability criteria of Part 80, subparts D, E, F and J of title
40 of the Code of Federal Regulations. If you have any question
regarding applicability of this action to a particular entity, consult
the person in the preceding FOR FURTHER INFORMATION CONTACT section
above.

B. Outline of This Preamble

I. General Information
II. Anti-Dumping Compliance
III. Mobile Source Air Toxics Rule (MSAT) Compliance
IV. Comments on the NPRM
V. Final Rule
VI. Environmental Effects of This Action
VII. Public Participation
VIII. Statutory and Executive Order Reviews
IX. Statutory Provisions and Legal Authority

II. Anti-Dumping Compliance

A. Background

1. The Anti-Dumping Requirements
    Section 211(k) of the Clean Air Act (``CAA'' or ``Act'') requires
EPA to establish standards for cleaner burning reformulated gasoline
(RFG) to be used in specified ozone nonattainment areas. The Act also
requires EPA to establish requirements for non-RFG, or conventional
gasoline, designed to prevent refiners from ``dumping'' into
conventional gasoline the dirty gasoline components that are removed
when RFG is produced. The requirements for conventional gasoline are
called ``anti-dumping'' requirements. To be in compliance with these
requirements, the exhaust toxics and nitrogen oxides (NOX)
emissions performance of a refinery's or importer's conventional
gasoline must be no dirtier than the refinery's or importer's 1990
exhaust toxics and NOX emissions performance, on an annual
average basis.
    The anti-dumping regulations require refiners to calculate the
exhaust toxics and NOX emissions performance of gasoline
using a predictive model, called the Complex Model. See 40 CFR 80.45.
The Complex Model has a summer version and a winter version.\1\ For the
same fuel composition (based on those fuel parameters evaluated in the
Complex Model), the winter Complex Model predicts significantly higher
emissions of exhaust toxics and NOX than the summer Complex
Model, on a mg/mile basis.
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    \1\ The summer Complex Model is based on data reflecting the
performance of gasoline sold in the summer; i.e., gasoline with
lower RVP to comply with volatility requirements at 40 CFR 80.27 and
which is typical of summer climatic conditions. The winter Complex
Model is a modified version of the summer model which sets the RVP
at 8.7 psi and adjusts for winter climate conditions. A detailed
discussion of the development of the summer and winter versions of
the Complex Model is included in the Final Regulatory Impact
Analysis for Reformulated Gasoline (December 13, 1993). Public
Docket No. A-92-12.
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    The anti-dumping regulations require refineries and importers of
conventional gasoline to comply with an established baseline for
exhaust toxics and NOX. The baseline is either an
``individual baseline'' or the ``anti-dumping statutory baseline.'' An
individual baseline is based on the average performance of the gasoline
that the individual refinery or importer produced or imported during
the calendar year 1990. The anti-dumping statutory baseline is based on
the average quality of gasoline sold throughout the United States
during 1990. The anti-dumping statutory baseline applies to refineries
and importers that are unable to calculate an individual baseline based
on 1990 gasoline performance. If a refinery or importer has an
individual baseline, gasoline production during a given annual
averaging period, up to the refinery's or importer's 1990 production or
import volume, must be no ``dirtier'' than the refinery's or importer's
individual 1990 baseline for exhaust toxics and NOX.
Gasoline produced or imported during the annual averaging period in
excess of the refinery's or importer's 1990 gasoline production or
import volume must be no dirtier than the anti-dumping statutory
baseline for exhaust toxics and NOX. For refineries and
importers that do not have an individual baseline, all gasoline
produced or imported during the annual averaging period must meet the
anti-dumping statutory baseline for exhaust toxics and NOX.
    To comply with the anti-dumping requirements, each refinery and
importer must evaluate the overall quality of the conventional gasoline
that it produces or imports during each annual averaging period and
compare it to the refinery's or importer's baseline (individual 1990
baseline or anti-dumping statutory baseline, as appropriate). So long
as the conventional gasoline produced or imported has overall
emissions, as calculated by the Complex Model, that are no worse than
the performance reflected in the refinery's or importer's baseline, the
refinery or importer is in compliance with EPA's anti-dumping
requirements.
    The anti-dumping statutory baseline includes both summertime and
wintertime seasonal components. The anti-dumping statutory baseline,
which approximates the average emissions of gasoline sold in the U.S.
in 1990, is the volume-weighted average of the summertime and
wintertime 1990 baseline gasoline emissions, as calculated using the
appropriate seasonal version of the Complex Model. See 59 FR 7793
(February 16, 1994).\2\
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    \2\ For a discussion of the methodology used in determining the
anti-dumping statutory baseline, see 56 FR 31179 (July 9, 1991).
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2. Calculating Individual Baselines and Annual Average Emissions
    A refinery's or importer's individual 1990 baseline is calculated
using the summer version of the Complex Model to assess the performance
of the refinery's or importer's 1990 summer gasoline and the winter
version of the Complex Model to assess the

performance of the refinery's or importer's 1990 winter gasoline. For
purposes of these calculations, the regulations consider summer
gasoline to be gasoline that is subject to EPA's volatility
requirements, and winter gasoline to be gasoline that is not subject to
EPA's volatility requirements. 40 CFR 80.91(e)(2)(ii)(A). Gasoline sold
in Alaska and Hawaii, and in the territories of Puerto Rico and the
Virgin Islands, is not subject to the volatility requirements. See CAA
Section 211(h)(5).\3\ Thus, for purposes of calculating a refinery's or
importer's individual 1990 baseline emissions, none of the gasoline
produced or imported for use in these areas is summer gasoline under
the current regulations. As a result, all of the gasoline produced or
imported for use in these areas was evaluated using the winter Complex
Model for purposes of calculating individual 1990 baseline emissions.
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    \3\ The U.S. territories of Guam, the Commonwealth of the
Northern Mariana Islands and American Samoa also are not subject to
the volatility requirements pursuant to CAA section 211(h)(5);
however, these territories have received exemptions from the anti-
dumping requirements. See 61 FR 53854 (October 16, 1996)(Guam); 62
FR 63853 (December 3, 1997)(Northern Mariana Islands); 65 FR 71067
(November 29, 2000)(American Samoa). Gasoline produced or imported
for use in Guam, the Commonwealth of the Northern Mariana Islands
and American Samoa is also exempt from the Mobile Source Air Toxics
requirements. See 40 CFR 80.820(d). As a result, gasoline produced
or imported for use in these areas is not affected by today's rule.
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    Similarly, to determine annual average emissions for compliance
purposes, each year refineries and importers calculate emissions from
their summer gasoline using the summer Complex Model and emissions from
their winter gasoline using the winter Complex Model. For purposes of
calculating annual average emissions, the regulations specify that
summer gasoline is gasoline that meets the volatility requirements and
winter gasoline is gasoline that does not meet the volatility
requirements. 40 CFR 80.101(g)(5) and (g)(6). Because gasoline produced
or imported for use in Alaska, Hawaii, Puerto Rico and the Virgin
Islands is not subject to the volatility requirements, refineries and
importers currently are required to evaluate all of their gasoline
produced or imported for use in these areas during the annual averaging
period using the winter Complex Model.\4\
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    \4\ Pursuant to a rulemaking on June 9, 1999 (64 FR 30904),
refiners and importers who have Puerto Rico gasoline, or Puerto Rico
and Virgin Islands gasoline, in their individual baseline are
allowed to petition EPA to replace the winter Complex Model with the
summer Complex Model for anti-dumping baseline and compliance
calculations. See 40 CFR 80.93(d) and 80.101(f)(4)(iii) and
(g)(1)(ii)(B).
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    As discussed above, refiners and importers must provide gasoline
that complies with their individual anti-dumping baseline up to their
1990 baseline volume, after which any excess volumes must comply with
the anti-dumping statutory baseline.\5\ Refiners and importers without
an individual baseline must comply with the anti-dumping statutory
baseline for all of the conventional gasoline they produce or import
during each annual averaging period.\6\ This general approach to
compliance applies to both refiners and importers of gasoline sold in
the continental U.S. and refiners and importers of gasoline produced or
imported for use in Alaska, Hawaii, Puerto Rico and the Virgin Islands.
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    \5\ For refineries and importers with individual 1990 baselines
who produce gasoline volumes in excess of their 1990 volume during
an averaging period, the regulations require the use of a specified
``compliance baseline'' equation. 40 CFR 80.101(f). In general, this
equation adjusts the refinery's or importer's individual baseline to
reflect the parameter values of the statutory baseline for that
volume of the refinery's or importer's total annual gasoline
production which is in excess of the refinery's or importer's 1990
baseline volume. This adjusted compliance baseline then is the
refinery's or importer's anti-dumping standard for that annual
averaging period, and the annual average emissions from all
conventional gasoline produced by that refinery or importer during
the annual averaging period must meet that standard.
    \6\ Since most importers are unable to establish an individual
1990 baseline, importers generally are required to comply with the
anti-dumping statutory baseline.
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B. Need for Action

    As discussed above, under the anti-dumping regulations, gasoline
produced or imported in excess of a refinery's or importer's 1990
baseline volume during the annual averaging period must comply with the
anti-dumping statutory baseline. All gasoline produced or imported
during each annual averaging period by refineries and importers who are
unable to establish an individual baseline also must comply with the
anti-dumping statutory baseline. In most cases, use of the anti-dumping
statutory baseline is an appropriate and necessary tool to ensure that
conventional gasoline quality does not degrade in comparison to the
average quality of gasoline sold in 1990. However, for gasoline
produced or imported for use in Alaska, Hawaii, Puerto Rico and the
Virgin Islands that is subject to the anti-dumping statutory baseline,
the current anti-dumping requirements can result in an inconsistent
application of EPA's seasonal Complex Models.
    As discussed above, the anti-dumping statutory baseline is an
estimate of the average quality of all 1990 gasoline. This estimate was
calculated using the summer Complex Model to evaluate ``summer''
gasoline and the winter Complex Model for all other gasoline.
Similarly, for compliance purposes, summer conventional gasoline sold
in the continental United States is evaluated using the summer Complex
Model, and all other conventional gasoline is evaluated using the
winter Complex Model. Thus, for conventional gasoline subject to the
anti-dumping statutory baseline that is sold in the continental U.S.,
we expect there to be general agreement between the seasonal models
used to develop the baseline and the seasonal models used to evaluate
annual compliance. Application of the anti-dumping statutory baseline
for such gasoline provides reasonable assurance that the quality of the
conventional gasoline will not degrade relative to the average quality
of gasoline in 1990.
    Like gasoline produced or imported for use in the continental
United States, gasoline produced or imported for use in Alaska, Hawaii,
Puerto Rico and the Virgin Islands in excess of the refinery's or
importer's 1990 baseline volume of gasoline, and all gasoline produced
or imported for use in these areas by a refiner or importer who does
not have an individual baseline must comply with the anti-dumping
statutory baseline. However, since the annual emissions performance of
all gasoline produced or imported for use in these areas must be
evaluated using only the winter Complex Model, for these areas there is
not an agreement between the seasonal models reflected in the statutory
baseline (which, as discussed above, was developed using both the
summer and winter seasonal models) and the seasonal model used for
calculating annual compliance.\7\ Because the winter Complex Model
predicts higher emissions than the summer Complex Model, in these
situations, the refinery or importer is required to comply with a
standard that, in effect, is more stringent than intended. That is, the
refiner or importer must produce or import gasoline that is actually
cleaner than the average gasoline produced or imported for use

in 1990.\8\ This unintended result can have a significant adverse
economic effect on those refineries and importers whose baselines
include gasoline produced or imported for use in Alaska, Hawaii, Puerto
Rico and the Virgin Islands and who have increased the volume of
gasoline that they produce or import for these areas above their 1990
baseline volumes of gasoline produced or imported for these areas, and
those refineries and importers who are subject to the anti-dumping
statutory baseline for all of their gasoline.
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    \7\ Gasoline produced or imported for Alaska, Hawaii, Puerto
Rico and the Virgin Islands was evaluated using only the winter
Complex Model for purposes of calculating a refinery's or importer's
individual 1990 baseline. Since annual production or imports for
these areas is also evaluated using the winter Complex Model, there
is a general agreement between the seasonal model used to develop
the baseline and the seasonal model used to calculate annual
emissions for gasoline production or imports up to the refinery's or
importer's individual 1990 baseline volume of gasoline produced or
imported for these areas.
    \8\ Because the winter Complex Model predicts higher emissions
for exhaust toxics and NOX than the summer Complex Model,
the average emissions of gasoline produced or imported for use in
Alaska, Hawaii, Puerto Rico and the Virgin Islands during an annual
averaging period, which is evaluated using only the winter Complex
Model, will appear to have higher emissions than that same gasoline
would appear to have if evaluated using the summer Complex Model for
some of the volume of gasoline. If, for example, gasoline produced
or imported for use in these areas has properties identical to the
properties of anti-dumping baseline gasoline, that gasoline (as
evaluated using only the winter Complex Model) will appear to have
higher emissions than anti-dumping baseline gasoline, and would be
deemed out of compliance with the anti-dumping statutory baseline
emissions standard.
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C. NPRM

    In the NPRM, EPA proposed to correct this inconsistency in the
anti-dumping regulations by allowing gasoline produced or imported for
use in Alaska, Hawaii, Puerto Rico and the Virgin Islands to be
compared to a baseline that is seasonally consistent with the
compliance model that is used for purposes of compliance evaluation.
Specifically, EPA proposed the following changes for refiners and
importers who produce or import conventional gasoline for use in
Alaska, Hawaii, Puerto Rico and the Virgin Islands.
    First, EPA proposed to allow refiners and importers to petition EPA
to change their baselines such that any gasoline produced or imported
for use in these areas that is currently subject to the anti-dumping
statutory baseline instead would be subject to the single seasonal
component of the anti-dumping statutory baseline that agrees with the
single seasonal model used for compliance. This approach alleviates the
current inconsistency (as described above) by more accurately comparing
the performance of the refiner's or importer's average 1990 gasoline
with gasoline currently produced.
    Second, EPA proposed that any refiner or importer for whom a
petition to change its baseline has been approved must use the single
seasonal statutory baseline that is most appropriate to the regional
climate for any gasoline that is not subject to an individual 1990
baseline, and use the seasonal component of the Complex Model that is
most appropriate to the regional climate for calculating both 1990
individual baseline emissions and annual average emissions. Thus,
refiners and importers with an approved petition that produce or import
gasoline for use in Hawaii, Puerto Rico and the Virgin Islands would
use the summer statutory baseline component for any gasoline not
subject to an individual baseline, and use the summer Complex Model for
purposes of calculating 1990 individual baseline and annual average
emissions. Refiners and importers with an approved petition that
produce or import gasoline for use in Alaska would use the winter
statutory baseline for any gasoline not subject to an individual
baseline, and use the winter Complex Model for purposes of calculating
1990 individual baseline and annual average emissions. A discussion of
the rationale for these seasonal determinations is contained in the
preamble to the NPRM. See 70 FR 646 (January 4, 2005).
    Under this approach, refiners and importers of gasoline produced or
imported for use in Hawaii, Puerto Rico and the Virgin Islands would
need to establish a separate individual 1990 baseline for gasoline
produced or imported for use in these areas using only the summer
Complex Model. Gasoline produced or imported for use in these areas
would be required to comply with this new individual baseline for
gasoline up to the refinery's or importer's 1990 baseline volume of
gasoline produced or imported for these areas. Gasoline production or
imports in excess of the refinery's or importer's 1990 baseline volume
would be subject to only the summer component of the statutory
baseline. In the case of refiners and importers with an individual 1990
baseline which does not include any gasoline produced or imported for
use in these areas, any gasoline produced or imported for use in these
areas during the annual averaging period would be subject to the
refinery's or importer's individual summer 1990 baseline, and the
summer Complex Model would be used for all compliance calculations.
Such gasoline will not be considered in determining whether a refiner
or importer has produced or imported any incremental gasoline volumes
above the refinery's or importer's 1990 baseline volume.
    Similarly, refiners and importers of gasoline produced or imported
for use in Alaska would need to establish a separate individual 1990
baseline for gasoline produced or imported for use in Alaska using only
the winter Complex Model. Gasoline produced or imported for use in
Alaska would be required to comply with this individual baseline up to
the refinery's or importer's 1990 baseline volume of Alaska gasoline.
Gasoline produced or imported for use in Alaska in excess of the
refinery's or importer's 1990 baseline volume of Alaska gasoline would
be subject to only the winter component of the statutory baseline.
Refiners and importers of gasoline produced or imported for use in
Alaska would continue to use the winter Complex Model for all
compliance calculations for Alaska gasoline. In the case of refineries
and importers with an individual 1990 baseline that does not include
any gasoline produced or imported for use in Alaska, any gasoline
produced or imported for use in Alaska during the annual averaging
period would be subject to the refinery's or importer's individual
winter 1990 baseline, and the winter Complex Model would be used for
all compliance calculations. Such gasoline will not be considered in
determining whether a refiner or importer has produced or imported any
incremental gasoline volumes above the refinery's or importer's 1990
baseline volume.
    To implement the changes described above, EPA proposed to modify
the individual baseline submission provisions at Sec.  80.93(d) to
allow refineries and importers that produce or import gasoline for use
in Hawaii, Puerto Rico and the Virgin Islands the option to petition
EPA to recalculate the emissions of their 1990 conventional gasoline
produced or imported for use in these areas using the summer Complex
Model.\9\ For refiners and importers who produced or imported gasoline
in 1990 for use in both the continental U.S. and an affected area, this
would require the calculation of a separate 1990 individual baseline
for gasoline produced or imported for use in these areas, and
recalculation of the refiner's or importer's current anti-dumping
baseline (which would continue to be used for compliance

purposes for gasoline produced or imported for other areas) to reflect
the subtraction of baseline gasoline produced or imported for use in
Hawaii, Puerto Rico and the Virgin Islands.\10\ As discussed above,
under the current regulations, the winter Complex Model is required to
be used to evaluate Alaska gasoline for purposes of establishing the
individual 1990 baseline and for determining annual average compliance.
Since the winter Complex Model is the appropriate seasonal model for
Alaska, we did not propose to change this requirement, however, we did
propose to clarify this requirement in the baseline submission
provisions in Sec.  80.93(d). Under the proposal, refiners and
importers who produced or imported gasoline in 1990 for use in both the
continental U.S. and Alaska would be required to calculate a separate
baseline for Alaska gasoline and recalculate their current anti-dumping
baseline for use with other gasoline to reflect the subtraction of 1990
baseline Alaska gasoline. EPA also proposed to revise the anti-dumping
compliance baseline provisions at Sec.  80.101(f)(3) and (f)(4)(iii).
EPA proposed a new (f)(3) which establishes compliance baselines for
refiners and importers with 1990 individual baselines that did not
include any gasoline produced or imported for use in the affected
areas. As discussed above, for these refiners and importers, any
conventional gasoline produced or imported for use in the affected
areas would be subject to the refiner's or importer's appropriate
seasonal individual baseline. EPA proposed to revise Sec.
80.101(f)(4)(iii) to provide equations for calculating a compliance
baseline for refiners and importers with individual 1990 baselines that
have approved petitions and that produce or import gasoline for use in
one or more of the affected areas.
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    \9\ As discussed in footnote 4 above, in a final rule dated June
9, 1999 (64 FR 30904), EPA modified the anti-dumping regulations to
allow refiners and importers who have Puerto Rico gasoline, or
Puerto Rico and Virgin Islands gasoline, in their 1990 baseline to
petition EPA to replace the winter Complex Model with the summer
Complex Model for purposes of compliance calculations. Today's rule
does not substantively change the provisions for Puerto Rico
gasoline promulgated on June 9, 1999. Rather, today's rule extends
the use of the summer only Complex Model to Puerto Rico gasoline
produced or imported by refiners and importers that do not have
individual baselines and those that have an individual baseline but
do not have any Puerto Rico gasoline, or Puerto Rico and Virgin
Islands gasoline, in their baselines.
    \10\ For refineries and importers with individual baselines that
produce or import gasoline for the continental U.S. as well as
Alaska, Hawaii, Puerto Rico or the Virgin Islands, the approach in
today's rule likely would result in a reduction of the total volume
of gasoline that currently would be subject to the anti-dumping
statutory baseline, since gasoline produced or imported for Alaska,
Hawaii, Puerto Rico or the Virgin Islands in excess of the
refinery's or importer's baseline volume of gasoline for these areas
would no longer be included in the volume of gasoline subject to the
anti-dumping statutory baseline. This may have an impact on the
refinery's or importer's compliance baseline for the annual
averaging period.
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    The proposed modifications of the baseline submission provisions at
Sec.  80.93(d) also would allow refiners and importers currently
subject to the anti-dumping statutory baseline for all of their
gasoline (i.e., parties without a 1990 individual baseline) the option
to petition EPA to change their baseline to only the summer component
of the statutory baseline for any conventional gasoline produced or
imported for use in Hawaii, Puerto Rico and the Virgin Islands, and the
winter component of the statutory baseline for any conventional
gasoline produced or imported for use in Alaska. EPA proposed to modify
Sec.  80.101(f)(2) to require such refiners and importers to comply
with the summer statutory baseline component for gasoline produced or
imported for use in Hawaii, Puerto Rico and the Virgin Islands, and the
winter statutory baseline component for gasoline produced or imported
for use in Alaska. In addition, EPA proposed to modify Sec.
80.101(g)(1) to require refiners and importers with approved petitions
under Sec.  80.93(d) to evaluate all of their gasoline produced or
imported for use in Hawaii, Puerto Rico and the Virgin Islands during
the annual averaging period using only the summer Complex Model, and
clarify that gasoline produced or imported for use in Alaska during the
annual averaging period must be evaluated using only the winter Complex
Model.
    A refiner or importer that produces or imports gasoline for Alaska
and also for Hawaii and/or Puerto Rico and/or the Virgin Islands, and
that wishes to change its baseline for all of these areas, would submit
separate petitions, one for Alaska gasoline under Sec.  80.93(d)(1) and
one for Hawaii, Puerto Rico and the Virgin Islands gasoline under Sec.
80.93(d)(2). In this case, the refiner or importer would have two
separate baselines, one for gasoline produced or imported for Alaska,
and one for gasoline produced or imported for Hawaii, Puerto Rico and
the Virgin Islands. Such refiner or importer would also have another
separate baseline for any gasoline produced or imported for the
continental United States.
    In addition to the proposed changes to the anti-dumping regulations
discussed above, EPA proposed conforming changes to Sec. Sec.
80.91(e)(2)(ii)(A), and 80.101(g)(2) and (g)(6) to clarify the summer/
winter distinction with regard to gasoline produced or imported for use
in Alaska, Hawaii, Puerto Rico and the Virgin Islands.
    EPA proposed that the changes would be optional for any refiner or
importer that produces or imports gasoline intended for use in Alaska,
Hawaii, Puerto Rico and the Virgin Islands, and would be limited to
those refiners and importers that petition the Agency for these
changes. However, EPA proposed that a refiner or importer that changes
from the anti-dumping statutory baseline to a single statutory baseline
component must use the appropriate seasonal statutory baseline
component and must use it for all gasoline produced or imported for use
in any of the areas subject to this rule. Such refiner or importer must
use the appropriate seasonal Complex Model for all future calculations.
For example, an importer of Puerto Rico gasoline that petitions EPA to
change from the anti-dumping statutory baseline to a single seasonal
statutory baseline component must change to the summer statutory
baseline component and must use the summer Complex Model for all future
calculations for Puerto Rico gasoline and also for any gasoline the
importer imports into Hawaii and/or the Virgin Islands. Refiners and
importers with approved petitions whose 1990 individual baselines
include gasoline produced or imported for these areas would be required
to recalculate their individual baselines, as described above, and
submit the new baselines with their petition.
    EPA proposed to require refiners and importers that change their
baseline in accordance with the proposed rule to retain documents which
substantiate that gasoline complying with the new baseline, in fact,
was produced or imported for use in the affected area.
    EPA proposed that refiners and importers of gasoline produced or
imported for use in the affected areas who do not petition EPA to
change their baselines would continue to be subject to their current
baselines and would continue to use the Complex Model that is required
for calculating emissions under the current regulations.

III. Mobile Source Air Toxics Rule (MSAT) Compliance

A. Background

    The Mobile Source Air Toxics (MSAT) rule published on March 29,
2001, contains provisions which require refiners and importers to
determine a baseline and compliance value for air toxics. See 40 CFR
part 80, subpart J. A refiner, for each refinery, and an importer must
identify the appropriate toxics performance baseline for its
conventional gasoline and its reformulated gasoline. The refiner or
importer must then demonstrate compliance with each applicable baseline
on an annual average basis using the Complex Model.
    Under the MSAT toxics performance rule, refiners, for each
refinery, and importers are required to produce or import gasoline that
is no dirtier than the gasoline they produced or imported during the
baseline period, 1998 through 2000. Accordingly, refiners and

importers are required to establish an individual toxics baseline,
separately for RFG and conventional gasoline, based on the average
toxics performance of their gasoline during the baseline period.
Refiners and importers are also required to establish a total baseline
volume based on their volume of gasoline production during the baseline
period. If a refinery or importer did not have sufficient production or
imports during the baseline period to calculate an average toxics
performance for their gasoline, they are subject to a default toxic
baseline established by EPA. Refineries or importers subject to the
default baseline do not have an MSAT baseline volume.
    Compliance with the MSAT toxics performance requirements is
determined on an annual average basis. The gasoline produced or
imported during the annual averaging period can be no more polluting
than the refiner's or importer's baseline level for that type of
gasoline (RFG or conventional). For RFG, total toxics emissions are
evaluated, and toxics performance is reported as a percent reduction
from the statutory baseline. For conventional gasoline, only exhaust
toxics emissions are evaluated, and toxics performance is reported in
mg/mile. Any volume produced or imported in excess of a refiner's or
importer's individual baseline volume can be no more polluting than the
RFG toxics standard, or the refiner's or importer's conventional
gasoline anti-dumping toxics baseline level, as applicable.

B. NPRM

    EPA proposed to modify the MSAT toxics performance requirements in
a manner that is consistent with the changes that were proposed for the
conventional gasoline anti-dumping program. The changes to the MSAT
requirements are necessary because, generally, the MSAT toxics
performance provisions applicable to conventional gasoline are of the
same form as the anti-dumping provisions, and because such changes are
needed to maintain agreement between methods used to establish
baselines and those used to evaluate gasoline performance for purposes
of compliance. Thus, we proposed to require a refiner or importer that
submits a petition under the anti-dumping program as described in the
NPRM to also petition for a separate or modified MSAT baseline
applicable to gasoline produced or imported into Alaska and/or Hawaii,
Puerto Rico, and the Virgin Islands.
    EPA proposed the following MSAT baseline and compliance
determinations for refiners and importers who submit petitions under
this rule for gasoline produced or imported for use in Alaska and/or
Hawaii, Puerto Rico and the Virgin Islands.
    Affected parties who did not produce or import any gasoline during
the baseline period (1998-2000), may petition EPA to have the
appropriate seasonal MSAT conventional gasoline default baseline for
gasoline produced or imported for use in Alaska and/or Hawaii, Puerto
Rico, and the Virgin Islands, and use the appropriate seasonal version
of the Complex Model for evaluating gasoline produced or imported for
these areas. Such parties would be subject to the annual MSAT
conventional gasoline default baseline for all other gasoline produced
or imported (i.e., gasoline for use in the continental U.S.)
    Affected parties who produced gasoline during the baseline period,
but who did not produce or import gasoline for Alaska and/or Hawaii,
Puerto Rico, or the Virgin Islands during the baseline period, may
petition EPA to have the appropriate individual refinery or importer
conventional gasoline seasonal MSAT baseline for these areas, and
evaluate any gasoline produced or imported for use in these areas using
the appropriate seasonal Complex Model. Such gasoline will not be
considered in determining whether a refiner or importer has produced or
imported any incremental gasoline volumes above the refiner's or
importer's MSAT baseline volume.
    Affected parties who only produced or imported gasoline for Alaska
and/or Hawaii, Puerto Rico, or the Virgin Islands during the baseline
period may petition EPA for a revised MSAT baseline using the
appropriate seasonal version of the Complex Model, and use the
appropriate seasonal version of the Complex Model for all compliance
determinations for such gasoline. Gasoline produced or imported for use
in these areas up to the refiner's or importer's MSAT baseline volume
would be subject to the refiner's or importer's seasonally appropriate
MSAT baseline. Any incremental volumes above the baseline volume would
be subject to the refiner's or importer's appropriate seasonal anti-
dumping baseline. Any gasoline produced or imported for use in the
continental U.S. would be subject to the annual MSAT conventional
gasoline default baseline.
    Affected parties who produced or imported gasoline during the
baseline period for use in the continental U.S. and for use in Alaska
and/or Hawaii, Puerto Rico, or the Virgin Islands may petition EPA to
have a separate, seasonally appropriate MSAT baseline and a separate
MSAT baseline volume for gasoline produced or imported for use in
Alaska and/or Hawaii, Puerto Rico, and the Virgin Islands. Such
refiners or importers must then use the appropriate seasonal component
of the Complex Model to evaluate gasoline sold in these areas.
Additionally, such refiners must establish a separate annual baseline
and baseline volume for all other gasoline, which must be evaluated
using the annual Complex Model.
    Under the current regulations, refiners and importers who produce
or import gasoline for use in Alaska, and/or Hawaii, Puerto Rico or the
Virgin Islands who are subject to the MSAT default baseline are, in
fact, required to produce or import gasoline that is cleaner than the
national annual average during the MSAT baseline period. This is
because the MSAT default baseline was determined using both seasonal
components of the Complex Model, while parties in the affected areas
are required to evaluate their gasoline using only the winter Complex
Model (which, as discussed above, gives higher emission values for the
same gasoline than if the gasoline were evaluated using both seasonal
components of the model). EPA proposed to correct this inconsistency
while continuing to require such parties to produce or import gasoline
that is no more polluting than the average gasoline during the MSAT
baseline period, as required under the MSAT rule. Similarly, parties
with individual MSAT baselines will continue to meet the requirements
under the MSAT rule for gasoline produced or imported up to their
baseline volume, without being required to produce or import gasoline
that is cleaner than their average gasoline during the MSAT baseline
period.
    For parties with an individual MSAT baseline who produce or import
gasoline in excess of their MSAT baseline volume, the MSAT regulations
require the excess volume to meet the refiner's or importer's standard
under the anti-dumping rule (i.e., excess volume may not be more
polluting than the refiner's or importer's individual anti-dumping
baseline level). Therefore, EPA proposed that gasoline produced or
imported in excess of the MSAT baseline volume be subject to the anti-
dumping baseline that is established for purposes of anti-dumping
compliance under today's rule.
    To implement the changes described above, EPA proposed appropriate
modifications to Sec. Sec.  80.825, 80.850, 80.855, 80.910 and 80.915
of subpart J.

IV. Comments on the NPRM

    Comments on the NPRM were generally very favorable. One commenter
suggested that we clarify the regulations regarding the effective date
for petitions granted under the rule, and that we clarify whether there
is a deadline for submitting a petition. In the NPRM we proposed that
the baseline and compliance method changes in today's rule would become
effective beginning with the annual averaging period in which a
refiner's or importer's petition is granted. As a result, a petition
may be submitted at any time during an annual averaging period. Once a
petition is granted, the new method for determining compliance with the
anti-dumping and air toxics requirements will apply beginning with the
annual averaging period in which the petition was granted, and will
continue to apply in each annual averaging period thereafter. As
discussed in the NPRM, once a petition has been granted, the refinery
or importer will not be able to revert back to its original baseline.
The new baseline will apply to the refinery regardless of ownership;
i.e., if a refinery obtains a new baseline under today's rule, the new
baseline will apply to the refinery even if the refinery is
subsequently sold to another refiner. We have added language in the
final rule to clarify when a petition may be submitted and the
effective date of an approved petition.
    Another commenter believes that the default toxics baselines in
Sec.  80.855(b)(2) (i.e., the seasonal default toxics baselines
applicable to parties with approved petitions under Sec.  80.93(d))
should apply only to refiners that submit petitions under Sec.
80.93(d) after this rule is finalized. A refiner who previously
received approval to use the summer Complex Model under Sec.  80.93(d),
and who was unable to establish an individual toxics baseline under the
MSAT rule, currently is subject to the conventional gasoline MSAT
default toxics baseline. The rule as proposed would apply a more
stringent default toxics baseline (i.e., seasonal default baseline) to
such a refiner, which, the commenter believes, would impose a burden on
the refiner that was not anticipated at the time the refiner applied
for use of the summer Complex Model under Sec.  80.93(d).
    The default baselines in Sec.  80.855(b)(2) are the average
seasonal toxics levels during the MSAT baseline years calculated using
the appropriate seasonal Complex Model. As discussed above, where a
refiner uses a seasonal Complex Model for annual average compliance
calculations, we believe it is appropriate for the refiner to also be
subject to the appropriate seasonal default baseline. A refiner with a
previously approved baseline change under Sec.  80.93(d) (which as
noted above applies to refiners who produce gasoline for use in Puerto
Rico) uses the summer Complex Model for calculating its annual average
toxics emissions. Therefore, we believe it is appropriate for the
summer MSAT default baseline in Sec.  80.855(b)(2)(ii) to apply to such
a refiner. However, since refiners with previously approved petitions
under Sec.  80.93(d) have been using the conventional gasoline default
toxics baseline under the current regulations, we believe that the
summer default baseline in Sec.  80.855(b)(2)(ii) should only apply to
such refiners prospectively, and that such refiners should be afforded
the opportunity to withdraw their petitions under Sec.  80.93(d). As a
result, we have included provisions in the final rule which specify
that the appropriate seasonal default toxics baseline would apply to
any refiner with a previously approved petition under Sec.  80.93(d)
beginning with the 2008 annual averaging period, and that any such
refiner may petition EPA to withdraw approval of its petition under
Sec.  80.93(d) beginning with the 2008 annual averaging period.
Although these provisions were not included in the NPRM, we believe
they are necessary in order to clarify the application of the
provisions in Sec.  80.855(b)(2) with regard to parties with previously
approved petitions, and are a logical outgrowth of the proposal to
apply the seasonal default toxics baselines in Sec.  80.855(b)(2) to
any refiner with a previously approved petition under Sec.  80.93(d).
    Another commenter suggested that we clarify that a refiner or
importer that produces or imports gasoline for Alaska and also for
Hawaii, and/or Puerto Rico and/or the Virgin Islands would have two
separate baselines and baseline volumes under today's rule, one for
gasoline produced or imported for Alaska, and one for gasoline produced
or imported for Hawaii, Puerto Rico and the Virgin Islands. We have
added language to clarify this in today's final rule.
    One commenter suggested that we clarify the requirements for new
refineries or importers in the final rule. As discussed above, the rule
provides an alternative to the existing regulatory baseline and
compliance requirements for gasoline produced or imported for use in
Alaska, Hawaii, Puerto Rico and the Virgin Islands. Any new refinery or
importer (which would not have an individual anti-dumping or MSAT
baseline) would be subject to the anti-dumping statutory and MSAT
default baselines, unless the refiner or importer petitions EPA under
the provisions of today's rule to have the appropriate seasonal anti-
dumping and MSAT baselines and seasonal Complex Model apply. We have
added a provision to clarify the regulations in this regard.
    One commenter requested that we make certain references to Sec.
80.93(d) in the regulations more specific with regard to the
subparagraphs being referenced. We have made these changes in today's
final rule.

V. Final Rule

    With the exceptions noted above and minor editorial changes,
today's rule finalizes the provisions in the NPRM as proposed.
    Although the current anti-dumping and MSAT toxics performance
requirements will be superseded by more stringent mobile source
emissions controls by 2011, we believe it is appropriate to provide
this relief to the affected parties at this time in order to address
the inequity caused by the inconsistencies in the current regulations
and to avoid any gasoline supply problems that may result from this
inequity.

VI. Environmental Effects of This Action

    As discussed in the NPRM, we believe that allowing refiners and
importers to change their baselines in accordance with today's rule
will not undermine the environmental goals of the anti-dumping program
(i.e., to ensure that conventional gasoline will be no dirtier than
1990 gasoline), or the MSAT toxics performance rule (i.e., to ensure
that gasoline, RFG and conventional, will be no dirtier than gasoline
during the MSAT baseline years.) The changes in today's rule will not
result in gasoline with exhaust toxics or NOX emissions that
are greater than conventional gasoline in these areas, or nationwide,
compared to 1990 levels, or toxics emissions that are greater than
gasoline in these areas, or nationwide, compared to the MSAT baseline
years. Today's rule provides an alternative compliance method for
refiners and importers who, under the current regulations, are required
to produce or import gasoline for use in the affected areas that is
actually cleaner than that required under the anti-dumping and MSAT
programs. As a result, even if all of these affected parties choose the
new compliance method, the goals of the anti-dumping and MSAT programs
would be met. To the extent that parties choose to retain their current

compliance method, there would continue to be an added environmental
benefit above and beyond that specifically required to meet the goals
of these programs.

VII. Public Participation

    In the NPRM, we requested comment on the need to take this action
and the proposed changes to the regulations. We have reviewed and
considered all comments. The comments and EPA's responses to the
comments are discussed above.

VIII. 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

    The information collection requirements in this rule will be
submitted for approval to the Office of Management and Budget (OMB)
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The
information collection requirements are not enforceable until OMB
approves them.
    This final rule addresses certain adverse impacts on refiners and
importers of conventional gasoline under the current fuels regulations,
and provides refiners and importers with additional flexibility to
comply with the regulations. The flexibility afforded under this rule
is optional. Modest information collection requirements in the form of
a one-time only petition to EPA and minimal recordkeeping requirements
are required of those refiners who wish to avail themselves of the
flexibility provided in this rule.
    The estimated hour burden for this rule is 20 hours per petition.
The estimated number of petitions is 10. The estimated cost burden for
the petition is $70 per hour. The total estimated cost for each
respondent is $1,400. The total estimated cost for all respondents is
$14,000. We do not anticipate that any burdens will be associated with
the additional recordkeeping requirements, since the information
required to be retained normally is included on business documents
retained by refiners and importers.
    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. When this ICR is
approved by OMB, the Agency will publish a technical amendment to 40
CFR part 9 in the Federal Register to display the OMB control number
for the approved information collection requirements contained in this
final rule.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
    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 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, I certify that this action will not have a significant
economic impact on a substantial number of small entities. In
determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the proposed rule on small entities.'' 5 U.S.C.
Sections 603 and 604. Thus, an agency may conclude that a rule will not
have a significant economic impact on a substantial number of small
entities if the rule relieves regulatory burden, or otherwise has a
positive economic effect on all of the small entities subject to the
rule.
    This final rule provides provisions intended to address existing
adverse economic impacts of the current rule on certain refiners and
importers while continuing to promote successful implementation of the
requirements for conventional gasoline. Specifically, this rule
provides all affected refiners and importers, including small refiners
and importers, options for evaluating the emissions of conventional
gasoline, which will have the effect of relieving regulatory burden. We
have therefore concluded that today's final rule will relieve
regulatory burden for all affected small entities.

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 section 202 of the UMRA, EPA
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 in any
one year. Before promulgating an EPA rule for which a written statement
is needed, section 205 of the UMRA generally requires EPA to identify
and 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 section 205
do not apply when they are inconsistent with applicable law. Moreover,
section 205 allows EPA to adopt an alternative other than the least
costly, most cost-effective or least burdensome alternative if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted. Before EPA establishes any regulatory
requirements that may significantly or uniquely affect small
governments, including tribal governments, it must have developed under
section 203 of the UMRA a small government agency plan. The plan must
provide for notifying potentially

affected small governments, enabling officials of affected small
governments to have meaningful and timely input in the development of
EPA regulatory proposals with significant Federal intergovernmental
mandates, and informing, educating, and advising small governments on
compliance with the regulatory requirements.
    Today's final rule contains no Federal mandates (under the
regulatory provisions of Title II of the UMRA) for State, local or
tribal governments or the private sector. EPA has determined that this
rule does not contain a Federal mandate that may result in expenditures
of $100 million or more for State, local, and tribal governments, in
the aggregate, or the private sector in any one year that will result
in expenditures of $100 million or more. This rule affects gasoline
refiners and importers of conventional gasoline by providing optional
provisions for evaluating the emissions of conventional gasoline in
certain situations. This rule will have the effect of reducing the
burden of the conventional gasoline regulations on these regulated
parties. Thus, today's rule is not subject to the requirements of
sections 202 and 205 of the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA 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.''
    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. This rule provides options for
evaluating the emissions of conventional gasoline. The requirements of
the rule will be enforced by the federal government at the national
level. Thus, Executive Order 13132 does not apply to 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 does not have
tribal implications. It will not have substantial direct effects on
tribal governments, on the relationship between the Federal government
and Indian tribes, or on the distribution of power and responsibilities
between the Federal government and Indian tribes, as specified in
Executive Order 13175. Today's action finalizes certain modifications
to the federal requirements for conventional gasoline, and does not
impose any enforceable duties on communities of Indian tribal
governments. Thus, Executive Order 13175 does not apply to this rule.

G. Executive Order 13045: Protection of Children From Environmental
Health and 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 EPA has reason to believe may
have a disproportionate effect on children. If the regulatory action
meets both criteria, the Agency must 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 the Agency.
    EPA interprets Executive Order 13045 as applying only to those
regulatory actions that are based on health or safety risks, such that
the analysis required under section 5-501 of the Order has the
potential to influence the regulation. This final rule is not subject
to Executive Order 13045 because it is not economically significant and
does not establish an environmental standard intended to mitigate
health or safety risks.

H. Executive Order 13211: Acts That Significantly Affect Energy Supply,
Distribution, or Use

    This final 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

    As noted in the proposed rule, Section 12(d) of the National
Technology Transfer and Advancement Act of 1995 (``NTTAA''), Public Law
No. 104-113, section 12(d) (15 U.S.C. 272 note) directs EPA to use
voluntary consensus standards in its regulatory activities unless to do
so 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) that are developed or adopted by voluntary consensus
standards bodies. The NTTAA directs EPA to provide Congress, through
OMB, explanations when the Agency decides not to use available and
applicable voluntary consensus standards.
    This rulemaking 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(a). This rule will be effective on November 26, 2007.

K. Clean Air Act Section 307(d)

    This rule is subject to Section 307(d) of the CAA. Section
307(d)(7)(B) provides that ``[o]nly an objection to a rule or procedure
which was raised with reasonable specificity during the period for
public comment (including any public hearing) may be raised during
judicial review.'' This section also provides a mechanism for the EPA
to convene a proceeding for reconsideration, ``[i]f the person raising
an objection can demonstrate to the EPA

that it was impracticable to raise such objection within [the period
for public comment] or if the grounds for such objection arose after
the period for public comment (but within the time specified for
judicial review) and if such objection is of central relevance to the
outcome of the rule.'' Any person seeking to make such a demonstration
to the EPA should submit a Petition for Reconsideration to the Office
of the Administrator, U.S. EPA, Room 3000, Ariel Rios Building, 1200
Pennsylvania Ave., NW., Washington, DC 20460, with a copy to both the
person(s) listed in the preceding FOR FURTHER INFORMATION CONTACT
section, and the Director of the Air and Radiation Law Office, Office
of General Counsel (Mail Code 2344A), U.S. EPA, 1200 Pennsylvania Ave.,
NW., Washington, DC 20004.

IX. Statutory Provisions and Legal Authority

    The statutory authority for the actions finalized today comes from
section 211(c) and (k) of the CAA (42 U.S.C. 7545(c) and (k)), which
allows us to regulate fuels that either contribute to air pollution
which endangers public health or welfare or which impairs emission
control equipment. Additional support for the procedural aspects of the
fuels controls in today's final rule, including the petition
requirement, comes from sections 114(a) and 301(a) of the CAA (42
U.S.C. 7414(a) and 7601(a)). Today's action is a final rulemaking under
section 307(d) of the CAA (42 U.S.C. 7607(d)).

List of Subjects in 40 CFR Part 80

    Environmental protection, Air pollution control, Fuel additives,
Gasoline, Motor vehicle pollution, Reporting and recordkeeping
requirements.

    Dated: October 18, 2007.
Stephen L. Johnson,
Administrator.

0
For the reasons set out in the preamble, part 80 of title 40 Chapter I
of the Code of Federal Regulations is amended as follows:

PART 80--REGULATION OF FUEL 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).

Subpart E--[Amended]

0
2. Section 80.91 is amended by revising paragraph (e)(2)(ii)(A) to read
as follows:

Sec.  80.91  Individual baseline determination.

* * * * *
    (e) * * *
    (2) * * *
    (ii) * * *
    (A)(1) All gasoline produced to meet EPA's 1990 summertime
volatility requirements shall be considered summer gasoline. All other
gasoline shall be considered winter gasoline, except:
    (2) Gasoline produced or imported for use in Hawaii, the
Commonwealth of Puerto Rico, and the Virgin Islands that is subject to
an approved petition under Sec.  80.93(d)(2) shall be considered summer
gasoline for purposes of paragraph (e) of this section.
* * * * *

0
3. Section 80.93 is amended by revising paragraph (d) to read as
follows:

Sec.  80.93  Individual baseline submission and approval.

* * * * *
    (d) Requirements for a petition applicable to gasoline produced or
imported for use in Alaska, Hawaii, the Commonwealth of Puerto Rico,
and the Virgin Islands. (1)(i) Any refiner for any refinery or importer
with gasoline produced or imported for use in Alaska in its individual
1990 baseline may petition EPA to establish a separate 1990 baseline
for gasoline produced or imported for use in Alaska using the winter
Complex Model, and to use the winter statutory baseline values under
Sec.  80.91(c)(5) for any gasoline produced or imported for use in
Alaska which is in excess of the refinery's or importer's 1990 volume
of gasoline produced or imported for use in Alaska for purposes of
determining the refinery's or importer's compliance baseline under
Sec.  80.101(f)(4).
    (ii) Any refiner for any refinery or importer with an individual
1990 baseline which did not include any gasoline produced or imported
for use in Alaska in 1990 may petition EPA to establish the refinery's
or importer's winter baseline values as the compliance baseline under
Sec.  80.101(f)(3) for gasoline which the refiner or importer produces
or imports for use in Alaska.
    (iii) Any refiner for any refinery or importer subject only to the
anti-dumping statutory baseline under Sec.  80.91(c)(5) may petition
EPA to have the winter statutory baseline values under Sec.
80.91(c)(5) apply instead for purposes of determining the refinery's or
importer's compliance baseline under Sec.  80.101(f)(2) for gasoline
which the refiner or importer produces or imports for use in Alaska.
    (2)(i) Any refiner for any refinery or importer with gasoline
produced or imported for use in Hawaii, and/or the Commonwealth of
Puerto Rico, and/or the Virgin Islands in its individual 1990 baseline
may petition EPA to establish a separate 1990 baseline for gasoline
produced or imported for use in these areas using the summer Complex
Model, and to use the summer statutory baseline values under Sec.
80.91(c)(5) for any gasoline produced or imported for use in these
areas in excess of the refinery's or importer's 1990 volume of gasoline
produced or imported for use in these areas, for purposes of
determining the refinery's or importer's compliance baseline under
Sec.  80.101(f)(4).
    (ii) Any refiner for any refinery or importer with an individual
1990 baseline which did not include any gasoline produced or imported
for use in Hawaii, and/or the Commonwealth of Puerto Rico, and/or the
Virgin Islands in 1990 may petition EPA to establish the refinery's or
importer's summer baseline values as the compliance baseline under
Sec.  80.101(f)(3) for gasoline which the refiner or importer produces
or imports for use in these areas.
    (iii) Any refiner or importer subject only to the anti-dumping
statutory baseline under Sec.  80.91(c)(5) may petition EPA to have the
summer statutory baseline values under Sec.  80.91(c)(5) apply instead
for purposes of determining the refinery's or importer's compliance
baseline under Sec.  80.101(f)(2) for gasoline which the refiner or
importer produces or imports for use in Hawaii, and/or the Commonwealth
of Puerto Rico, and/or the Virgin Islands.
    (iv) Any petition submitted in accordance with paragraphs
(d)(2)(i), (d)(2)(ii) or (d)(2)(iii) of this section shall apply to
gasoline produced or imported for use in all of the areas specified in
the operative paragraphs.
    (3) A petition under paragraphs (d)(1) or (d)(2) of this section
must include the following:
    (i) Identification of the refiner and refinery or importer;
    (ii) EPA company and facility registration numbers issued under
Sec.  80.76;
    (iii) Identification of a contact person; and
    (iv) For petitions submitted under paragraphs (d)(1)(i) and
(d)(2)(i) of this section:
    (A) Revised 1990 individual baseline determination wherein the
baseline for gasoline produced or imported for use in Alaska has been
evaluated using the winter Complex Model, or gasoline produced or
imported for use in Hawaii,

and/or the Commonwealth of Puerto Rico, and/or the Virgin Islands has
been evaluated using the summer Complex Model, as applicable, with the
calculations clearly and fully described and displayed; and
    (B) Revised 1990 individual baseline determination for gasoline in
the refinery's or importer's original individual 1990 baseline which
was not produced or imported for use in Alaska, and/or Hawaii, and/or
the Commonwealth of Puerto Rico, and/or the Virgin Islands, as
applicable, with the calculations clearly and fully described and
displayed.
    (C) Baseline auditor agreement with the revised baseline values.
    (4) For U.S. Postal delivery, the petition shall be sent to: Attn:
RFG Program, Mailstop 6406J, U.S. Environmental Protection Agency, 1200
Pennsylvania Avenue, NW., Washington, DC 20460. For commercial
delivery: Attn: RFG Program, 6th Floor<PHONE_NUMBER>), U.S.
Environmental Protection Agency, 1310 L St., NW., Washington, DC 20005.
    (5) EPA reserves the right to request additional information. If
such information is not forthcoming in a timely manner, the petition
will not be approved.
    (6) A petition under this section may be submitted at any time
during the annual averaging period. The baseline and compliance methods
approved in a petition submitted under paragraph (d) of this section
shall apply beginning with the annual averaging period in which the
petition was approved and shall continue to apply in each annual
averaging period thereafter. Once a petition has been approved under
this section, the refiner or importer may not revert back to its
original baseline.
    (7) A refiner for any refinery or importer with an approved
petition under paragraph (d)(1) of this section and an approved
petition under paragraph (d)(2) of this section will be subject to a
separate baseline and baseline volume for its gasoline produced or
imported for use in Alaska, and a separate baseline and baseline volume
for its gasoline produced or imported for use in Hawaii, the
Commonwealth of Puerto Rico and the Virgin Islands.
    (8)(i) Any refiner for any refinery or importer must have an
approved petition under paragraph (d)(1) of this section in order to
use the seasonal baseline and seasonal Complex Model, as provided in
paragraph (d)(1) of this section, for gasoline produced or imported for
use in Alaska.
    (ii) Any refiner for any refinery or importer must have an approved
petition under paragraph (d)(2) of this section in order to use the
seasonal baseline and seasonal Complex Model, as provided in paragraph
(d)(2) of this section, for gasoline produced or imported for use in
Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands.
    (iii) Any new refiner or importer without an individual anti-
dumping baseline shall be subject to the annual average anti-dumping
statutory baseline under Sec.  80.91(c)(5) unless the refiner or
importer petitions for and receives approval of use of a seasonal
baseline and seasonal Complex Model under this section.
    (9)(i) The provisions of this paragraph (d) shall apply to any
refiner, for any refinery, or importer that received approval of a
petition under this paragraph (d) prior to November 26, 2007 beginning
with the 2008 annual averaging period.
    (ii) Any refiner, for any refinery, or importer that received
approval of a petition under paragraph (d) of this section prior to
November 26, 2007 may petition EPA to withdraw such approval. Such
petition must be submitted to EPA by December 31, 2007. A withdrawal of
approval under this paragraph is effective beginning with the 2008
annual averaging period and shall remain in effect in each annual
averaging period thereafter.
    (iii) A refiner or importer with an approved withdrawal under
paragraph (d)(9)(i) of this section will be subject to the baseline
which was in effect prior to the effective date of the refiner's or
importer's approved petition under this paragraph (d). Once a refiner
or importer receives approval of a withdrawal of a petition under
paragraph (d)(9)(i) of this section the refiner or importer is
ineligible to receive approval of a change in baseline under this
section.

0
4. Section 80.101 is amended by:
0
a. Revising paragraph (f)(2);
0
b. Adding paragraph (f)(3);
0
c. Revising paragraph (f)(4)(iii);
0
d. Revising paragraph (g)(1)(ii)(B), and adding paragraph
(g)(1)(ii)(C);
0
e. Revising paragraph (g)(2) introductory text, (g)(2)(i), and (g)(6),
to read as follows:

Sec.  80.101  Standards applicable to refiners and importers.

* * * * *
    (f) * * *
    (2)(i) In the case of any refiner for any refinery or importer for
whom the anti-dumping statutory baseline applies under Sec.  80.91, the
anti-dumping statutory baseline for each parameter or emissions
performance shall be the compliance baseline for that refinery or
importer.
    (ii) In the case of any refiner for any refinery or importer that
has received approval of a petition submitted under Sec.
80.93(d)(1)(iii), the compliance baseline for each emissions
performance for that refinery or importer for gasoline produced or
imported for use in Alaska shall be the winter statutory baseline value
under Sec.  80.45(b)(3), Table 5.
    (iii) In the case of any refiner for any refinery or importer that
has received approval of a petition submitted under Sec.
80.93(d)(2)(iii), the compliance baseline for each emissions
performance for that refinery or importer for gasoline produced or
imported for use in Hawaii, the Commonwealth of Puerto Rico, and/or the
Virgin Islands shall be:
    (A) The summer statutory baseline value under Sec.  80.45(b)(3),
Table 5 for NOX.
    (B) The summer statutory baseline value under Sec.  80.45(b)(3),
Table 5 for Toxics less the corresponding value for Benzene under Sec.
80.45(b)(3), Table 4.
    (3)(i) In the case of any refiner for any refinery or importer that
has received approval of a petition submitted under Sec.
80.93(d)(1)(ii), the compliance baseline for each emissions performance
for that refinery or importer for gasoline produced or imported for use
in Alaska shall be the refinery's or importer's winter baseline value
determined under Sec.  80.91.
    (ii) In the case of any refiner for any refinery or importer that
has received approval of a petition submitted under Sec.
80.93(d)(2)(ii), the compliance baseline for each emissions performance
for that refinery or importer for gasoline produced or imported for use
in Hawaii, the Commonwealth of Puerto Rico, and/or the Virgin Islands
shall be the refinery's or importer's summer baseline value determined
under Sec.  80.91.
    (4) * * *
    (iii) Any refiner or importer with an individual baseline that has
received approval of a petition submitted under Sec.  80.93(d) and has
produced or imported gasoline for use in Alaska, Hawaii, the
Commonwealth of Puerto Rico, or the Virgin Islands must calculate the
compliance baseline for each parameter or emissions performance as
follows:

[GRAPHIC] [TIFF OMITTED] TR25OC07.000

If Vj >= V1990j > 0:
[GRAPHIC] [TIFF OMITTED] TR25OC07.001

If Vj < V1990j or V1990j = 0:
CBi,j = Bi,j
Where:

CBi = The compliance baseline for parameter or emissions
performance i
CBi,j = The compliance baseline for parameter or
emissions performance i applicable to the conventional gasoline in
production volume Vj

j is a subscript identifying a portion of gasoline and RBOB produced
or imported as follows:

j=1: Conventional gasoline supplied to Hawaii, the Commonwealth of
Puerto Rico and the Virgin Islands, if gasoline supplied to these
areas is covered by a petition for a separate baseline.
j=2: Conventional gasoline supplied to Alaska, if gasoline supplied
to this area is covered by a petition for a separate baseline.
j=3: Conventional gasoline, reformulated gasoline, RBOB and
California gasoline produced or imported by a refiner or importer,
and not included in portions 1 or 2.
Vj = The averaging period volume for portion j.
Vr = The volume of reformulated gasoline, RBOB and
California gasoline included in V3.
Bi,j = The refiner/importer's individual baseline for
parameter or emissions performance i applicable to the conventional
gasoline in portion j, or the applicable statutory baseline if
assigned in lieu of an individual baseline.
DBi,j = The statutory baseline for parameter or emissions
performance i applicable to the conventional gasoline in portion j
(i.e., the annual or seasonal statutory baseline).
V1990j = The 1990 baseline volume applicable to portion
j.

    (g) * * *
    (1) * * *
    (ii) * * *
    (B) Any refiner for any refinery or importer that has received EPA
approval of a petition submitted in accordance with the provisions of
Sec.  80.93(d)(1) must use the applicable winter complex model under
Sec.  80.45, using an RVP of 8.7 psi, to evaluate its averaging period
gasoline produced or imported for use in Alaska.
    (C) Any refiner for any refinery or importer that has received EPA
approval of a petition submitted in accordance with the provisions of
Sec.  80.93(d)(2) must use the applicable summer complex model under
Sec.  80.45 to evaluate its averaging period gasoline produced or
imported for use in Hawaii, the Commonwealth of Puerto Rico, and the
Virgin Islands.
    (2) In the case of any refiner or importer subject to the anti-
dumping statutory baseline, the summer statutory baseline and/or the
winter statutory baseline, the refiner or importer shall determine
compliance using the following methodology:
    (i) Calculate the compliance total for the averaging period for
sulfur, T-90, olefins, exhaust benzene emissions, exhaust toxics and
exhaust NOX emissions, as applicable, based upon the anti-
dumping statutory baseline value, the summer statutory baseline value,
or the winter statutory baseline value, as applicable, for that
parameter using the formula specified at 80.67.
* * * * *
    (6)(i) The emissions performance of gasoline that has an RVP
greater than the RVP required under Sec.  80.27 (``winter gasoline'')
shall be determined using the applicable winter complex model under
Sec.  80.45, using an RVP of 8.7 psi for compliance calculation
purposes under this subpart E.
    (ii) Except as provided in paragraph (g)(1)(ii) of this section,
the emissions performance of gasoline produced or imported for use in
areas that are not subject to the requirements of Sec.  80.27 shall be
determined using the applicable winter complex model under Sec.  80.45,
using an RVP of 8.7 psi for compliance calculation purposes under this
subpart E.
* * * * *

0
5. Section 80.104 is amended by adding paragraph (a)(2)(xiii) to read
as follows:

Sec.  80.104  Recordkeeping requirements.

* * * * *
    (a) * * *
    (2) * * *
    (xiii) In the case of gasoline subject to an approved petition
under Sec.  80.93(d), documents that reflect that the gasoline was
produced or imported for use in Alaska, Hawaii, the Commonwealth of
Puerto Rico, and the Virgin Islands, as applicable.
* * * * *

Subpart J--[Amended]

0
6. Section 80.825 is amended by revising paragraph (c)(2) to read as
follows:

Sec.  80.825  How is the refinery or importer annual average toxics
value determined?

* * * * *
    (c) * * *
    (2) (i) The toxics value, Ti, of each batch of
conventional gasoline, and the annual average toxics value,
Ta, for conventional gasoline under this subpart are in
milligrams per mile (mg/mile) and volumes are in gallons.
    (ii) Any refiner for any refinery or importer that has received EPA
approval of a petition submitted in accordance with the provisions of
Sec.  80.93(d) shall determine the toxics value, Ti, of each
batch of conventional gasoline produced or imported for use in Alaska,
and/or Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands
in accordance with Sec.  80.101(g)(1)(ii).
* * * * *

0
7. Section 80.850 is amended by revising paragraph (c) and adding
paragraph (d) to read as follows:

Sec.  80.850  How is the compliance baseline determined?

* * * * *
    (c) Any refiner for any refinery or importer with an approved anti-
dumping baseline under Sec.  80.93(d) for gasoline produced or imported
for use in Alaska, and/or Hawaii, the Commonwealth of Puerto Rico, and
the Virgin Islands, and for which a conventional gasoline baseline
toxics value for such gasoline can be determined according to Sec.
80.915(b)(1), shall determine its compliance baseline applicable to
such gasoline according to the following equation:

[GRAPHIC] [TIFF OMITTED] TR25OC07.002

Where:

TCBase = Compliance baseline toxics value.
TBase = Baseline toxics value for the refinery or
importer, calculated according to Sec.  80.915(b)(1) for all
gasoline except gasoline produced or imported for use in Alaska,
Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands.
VBase = Baseline volume for the refinery or importer,
calculated according to Sec.  80.915(b)(2) for all gasoline except
gasoline produced or imported for use in Alaska, Hawaii, the
Commonwealth of Puerto Rico, and the Virgin Islands.
TExist = The refinery's or importer's anti-dumping
compliance baseline value for exhaust toxics, in mg/mi, per Sec.
80.101(f) for all gasoline except gasoline produced or imported for
use in Alaska, Hawaii, the Commonwealth of Puerto Rico, and the
Virgin Islands.
VInc = Volume of gasoline produced or imported, excluding
the volume of gasoline produced or imported for use in Alaska,
Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands
during the averaging period, which is in excess of VBase.
TSBase = Baseline toxics value for the refinery or
importer, calculated according to Sec.  80.915(e)(2)(i) for gasoline
produce or imported for use in Hawaii, the Commonwealth of Puerto
Rico, and the Virgin Islands.
VSBase = Baseline volume for the refinery or importer,
calculated according to Sec.  80.915(e)(2)(ii) for gasoline produce
or imported for use in Hawaii, the Commonwealth of Puerto Rico, and
the Virgin Islands.
TSExist = The refinery's or importer's anti-dumping
compliance baseline value for exhaust toxics, in mg/mi, per Sec.
80.101(f) for gasoline produce or imported for use in Hawaii, the
Commonwealth of Puerto Rico, and the Virgin Islands.
VSInc = Volume of gasoline produced or imported for use
in Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands
during the averaging period which is in excess of VSBase.
TWBase = Baseline toxics value for the refinery or
importer, calculated according to Sec.  80.915(e)(1)(i) for gasoline
produce or imported for use in Alaska.
VWBase = Baseline volume for the refinery or importer,
calculated according to Sec.  80.915(e)(1)(ii) for gasoline produce
or imported for use in Alaska.
TWExist = The refinery's or importer's anti-dumping
compliance baseline value for exhaust toxics, in mg/mi, per Sec.
80.101(f) for gasoline produce or imported for use in Alaska.
VWInc = Volume of gasoline produced or imported for use
in Alaska during the averaging period which is in excess of
VWBase.

    (d) If the refinery or importer produced less gasoline during the
compliance period than its applicable baseline volume, the value of
Vinc, VSInc or VWInc, as applicable,
will be zero.

0
8. Section 80.855 is amended by adding paragraph (b)(2) to read as
follows:

Sec.  80.855  What is the compliance baseline for refineries or
importers with insufficient data?

* * * * *
    (b) * * *
    (2)(i) A refinery or importer that has an approved anti-dumping
baseline under Sec.  80.93(d) for gasoline produced or imported for use
in Alaska, and that cannot determine an applicable toxics value
according to paragraph (b)(1) of this section, shall have the following
as its compliance baseline for the purposes of this subpart: 110.72 mg/
mile.
    (ii) A refinery or importer that has an approved anti-dumping
baseline under Sec.  80.93(d) for gasoline produce or imported for use
in Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands and
that cannot determine an applicable toxics value according to paragraph
(b)(1) of this section, shall have the following as its compliance
baseline for the purposes of this subpart: 77.82 mg/mile.
    (iii) The provisions of this paragraph (b)(2) shall apply to any
refiner, for any refinery, or importer that received approval of a
petition under Sec.  80.93(d) prior to November 26, 2007 beginning with
the 2008 annual averaging period.
    (iv) Any new refiner or importer without a toxics baseline that
produces or imports gasoline for use in Alaska, Hawaii, the
Commonwealth of Puerto Rico or the Virgin Islands shall be subject to
the applicable toxics default baseline under paragraph (b)(1) of this
section unless the refiner or importer petitions for and receives
approval of use of a seasonal baseline and seasonal Complex Model under
Sec.  80.93(d).
* * * * *

0
9. Section 80.910 is amended by revising paragraph (a) to read as
follows:

Sec.  80.910  How does a refiner or importer apply for a toxics
baseline?

    (a)(1) A refiner or importer shall submit an application to EPA
which includes the information required under paragraph (c) of this
section no later than June 30, 2001, or 3 months prior to the first
introduction of gasoline into commerce from the refinery or by the
importer, whichever is later.
    (2) A refiner or importer shall submit an application to EPA for
the purposes of this subpart simultaneously with the submission of a
petition under Sec.  80.93(d).
* * * * *

0
10. Section 80.915 is amended by redesignating paragraphs (e) through
(h) as paragraphs (f) through (i) and adding new paragraph (e) to read
as follows:

Sec.  80.915  How are the baseline toxics value and baseline toxics
volume determined?

* * * * *
    (e)(1)(i) A refiner or importer which is approved for a petition
submitted under Sec.  80.910(a)(2) for gasoline produced or imported
for use in Alaska shall calculate the applicable toxics baseline value
using the following equation:
[GRAPHIC] [TIFF OMITTED] TR25OC07.003

Where:

TWBase = Baseline toxics value for gasoline produced or
imported for use in Alaska.
Vi = Volume of gasoline batch i produced or imported for
use in Alaska between January 1, 1998 and December 31, 2000,
inclusive.
Ti = Toxics value of gasoline batch i produced or
imported for use in Alaska between January 1, 1998 and December 31,
2000, inclusive.
i = Individual batch of gasoline produced or imported for use in
Alaska between January 1, 1998 and December 31, 2000, inclusive.
n = Total number of batches of gasoline produced or imported for use
in Alaska between January 1, 1998 and December 31, 2000, inclusive.
M = Compliance margin.

    (ii) The baseline volume associated with the baseline value
calculated in paragraph (e)(1)(i) of this section shall be calculated
using the methodology in paragraph (b)(2) of this section for the
gasoline described in paragraph (e)(1)(i) of this section.
    (2)(i) A refiner or importer which is approved for a petition
submitted under Sec.  80.910(a)(2) for gasoline produced or imported
for use in Hawaii, the Commonwealth of Puerto Rico, and the Virgin
Islands shall calculate the applicable toxics baseline value using the
following equation:

[GRAPHIC] [TIFF OMITTED] TR25OC07.004

Where:

TSBase = Baseline toxics value for gasoline produced or
imported for use in Hawaii, the Commonwealth of Puerto Rico, and the
Virgin Islands.
Vi = Volume of gasoline batch i produced or imported for
use in Hawaii, the Commonwealth of Puerto Rico, and the Virgin
Islands between January 1, 1998 and December 31, 2000, inclusive.
Ti= Toxics value of gasoline batch i produced or imported
for use in Hawaii, the Commonwealth of Puerto Rico, and the Virgin
Islands between January 1, 1998 and December 31, 2000, inclusive.
i = Individual batch of gasoline produced or imported for
use in Hawaii, the Commonwealth of Puerto Rico, and the Virgin
Islands between January 1, 1998 and December 31, 2000, inclusive.
n = Total number of batches of gasoline produced or imported for use
in Hawaii, the Commonwealth of Puerto Rico, and the Virgin Islands
between January 1, 1998 and December 31, 2000, inclusive.
M = Compliance margin.

    (ii) The baseline volume associated with the baseline value
calculated in paragraph (e)(2)(i) of this section shall be calculated
using the methodology in paragraph (b)(2) of this section for the
gasoline described in paragraph (e)(2)(i) of this section.
* * * * *
 [FR Doc. E7-21061 Filed 10-24-07; 8:45 am]

BILLING CODE 6560-50-P