ILLINOIS POLLUTION CONTROL BOARD
November
8, 1990
IN THE MATTER OF:
)
R88—30(B)
LIMITS TO THE VOLATILITY
)
(Rulemaking)
OF GASOLINE
)
PROPOSED RULE.
SECOND NOTICE
OPINION AND ORDER OF THE BOARD
(by J.D.
Dumelle):
On July 19,
1990 the Board proposed for First Notice a
rulemaking to limit the volatility of gasoline sold in
Illinois.
The R88—30 subdocket
(B) proposal would limit gasoline
sold
in Illinois during the summer
(i.e., June
1 to September
15)
to 9.0 pounds per square inch
(psi) Reid Vapor Pressure
(RVP).
The Board ordered that an Economic Impact Study
(EcIS)
be
undertaken by the Department of Energy and Natural Resources
(DENR).
The EcIS was delivered
to the Board by DENR on June
27,
1990.
The Board today adopts
the subdocket
(B) proposal, with
modifications noted below,
for Second Notice and directs its
submission to the Joint Committee on Administrative Rules
(JCAR).
The subdocket
(B) proposal was published in the Illinois
Register on August
10,
1990,
14
Ill. Reg.
12697,
thereby
beginning a forty—five
(45) day public comment period.
Public
hearing was scheduled for September 17, 1990.
Four
(4) public
comments were submitted prior
to hearing.
Hearing was conducted
on September 17,
1990 at which four
(4) organizations presented
testimony.
Four
(4) post—hearing comments were submitted.
PROCEDURAL HISTORY
The Board
first notes
that regulations pertaining
to
gasoline volatility were introduced in December of 1988.
The
proposal was subsequently split
into two dockets
(A)
and
(B)II.
While docket
(A) did proceed to Final Adoption,
the Board was
forced to undertake an emergency rulemaking effective only for
the July and August of
1990 due to some late—filed language from
the USEPA, the acceptance of which was necessary for federal
approval.
That
is, docket
(A) as
a finalized version was
unenforceable because the language contained
in the regulation
did not comport with federal requirements and therefore could
not
be adopted as a revision to the State Implementation Plan
(SIP).
Consequently, an emergency rule was promulgated.
This
rule adopted the necessary federal language and therefore
regulated the gasoline volatility requirements in Illinois for
the summer of 1990.
Since the inception of the Board proposal
in January of
1989, Federal rules regarding gasoline volatility have been
116—133
—2—
finalized.
These provisions mandate that as of June 1,
1992,
gasoline sold at retail in Illinois will be limited to
a
volatility standard of
9.0 psi.
These provisions are applicable
from June
1 to September 15 for 1992 and each year thereafter.
As a result,
the State of Illinois
is
in a position whereby
gasoline volatility in the summer of 1991
is currently left
unregulated with the exception of the Phase
I
standard of
10.5
psi.
In large measure, this is why the Board went to First
Notice prior to any merit hearings.
As the First Notice Order
stated:
The Board initiates this proposal
at this time
to begin the rulemaking process pursuant to
the Administrative Procedure Act
as well as
to
allow the potentially affected parties
sufficient
time to argue substantive issues
and possibly adjust to new standards.
(R88—30(B), Board Order, July
19,
1990,
Pg.
1)
In short, the Board was concerned that
a rule be
in place
for the summer of
1991.
Further,
the Board desired to formulate
a rulemaking
in which all of the participants would have an
opportunity to voice
their concerns and recommendations.
Finally,
the Board initiated this rule on July 19,
1990 so that
industry would be allowed sufficient lead time in order to comply
with the prospect of new regulations
should they be adopted.
HEALTH EFFECTS
At the outset
the Board notes that
it adopts those
determinations made regarding health and environmental effects
in
docket
(A)
as well as the emergency
rule.
Put another way,
it
remains the Board’s determination that ozone pollution is one of
the nation’s most serious and complex air pollution problems.
Ozone
is
a photochemical oxidant and the major component of
smog.
Unlike other pollutants, ozone
is not emitted directly
into the atmosphere but
is formed through chemical reactions
among precursor emissions
(volatile organic compounds or VOCs,
nitrogen oxides,
carbon monoxide and other compounds)
in the
presence of sunlight.
The rate of ozone production is increased
when atmospheric temperatures are warmer.
Scientific data has demonstrated the effect high levels of
ozone have on the general public.
Ozone severely affects
individuals with chronic heart,
lung, and circulatory system
diseases.
Otherwise healthy individuals who exercise while ozone
levels are high can experience reduced functioning of the lungs,
leading to chest pains, coughing, wheezing,
and pulmonary
congestion.
In addition to the health effects, ozone has been
estimated to cause two to three billion dollars worth of crop
116—134
—3—
damage nationally each year.
Also,
because the Chicago area has
exceeded the ozone standard repeatedly, USEPA has imposed a
construction ban on the Chicago non-attainment area which
prohibits the construction or modification of major air pollution
sources and thus restricts the economic development of the
Chicagoland area.
ECONOMIC IMPACT
STUDY
(EcIS)
As mentioned above,
DENR submitted its EcIS on June 27,
1990.
The main purpose of the EcIS was to explore whether
a 9.0
psi standard in Illinois would be economically or technically
unreasonable, or pose an economic hardship in terms of supplying
gasoline to Illinois.
DENR concluded that a reduction from 9.5
psi
to 9.0 psi would result in a statewide reduction of
approximately fifty—six
(56)
tons per day
(TPD) of volatile
organic compounds (VOC).
DENR estimated the cost of
this
reduction to be approximately 1.5 cents per gallon.
At hearing
these figures were undisputed by any participant.
ISSUES PRESENTED AT HEARING
The first presentation came from Cheryl Newton,
a
representative from the USEPA.
The USEPA was supportive of both
the industry and the Board in their efforts
to reduce VOC
emissions
in order to achieve the national ozone ambient air
quality standard.
In spite
of the fact that the emergency rule
promulgated by the Board was only enforceable from August
17 to
the 31st in 1990,
evidence gathered by federal samplers indicated
that the petroleum industry had adhered to the regulation
throughout the control period.
According
to USEPA,
the majority
of samples not only met the state’s 9.5 psi standard,
but much of
the fuel tested was below 9.0 psi as well.
Only two violations
were detected and both were traced to a distributor who had
violated the federal RVP limit before.
(R.
at 12—13).
Primarily due
to the health benefits associated with the
reduction of VOC compounds,
the USEPA recommended that the Board
adopt a future control period of May
1 to September 15.
Yet
USEPA also stated
—
both
in oral testimony and
in public comment
form
-
that enforcement regarding retail outlets and other end
users should be delayed until June 1st.
Not only would this make
the state and federal rules consistent, but
it will reduce any
undue burden on the end-users.
Finally the USEPA recommended
that the Board should adopt
the 0.3 psi testing tolerance which
was included in phase two of the federal
rule.
Next to testify was Maggie Robbins,
representing the
proponent of this rulemaking,
the Chicago Lung Association
(CLA).
In its brief testimony the CLA encouraged
the Board to
move ahead with this proposal.
The CLA also submitted a gasoline
industry newsletter
(P.C.
#69) which indicates that several
116—135
—4—
petroleum companies nationwide are currently marketing
reformulated gasolines which are low in volatility
in very
tight
markets
(R.
at
17).
The CLA pointed out that these marketing
strategies do not conform to ASTM distribution areas
nor do they
correlate to pipeline distribution areas.
In retort,
the
representatives from the petroleum companies pointed out that
these were special marketing strategies which were not required
by law.
As such,
if spot shortages or other unforeseen events
occurred, those companies participating in those marketing
strategies could alter their course without the fear of any
enforcement action.
The last to testify were Daniel Moenter and David Sykuta,
representing the Illinois Petroleum Council
(IPC).
IPC
is
concerned that a 9.0 psi standard would pose a series of
distribution problems for petroleum companies.
They are not as
concerned about the 9.0 psi standard per se~rather,
their
worries stem from the fact that neighboring states
—
under phase
I of the federal
rule
—
will have psi rates of
10.5 and 9.5.
(R.
at 35).
Missouri,
for instance, will be set at 9.5 psi whereas
states such as Michigan and Wisconsin will
be at
a 10.5 psi rate
during the control period proposed for Illinois
in the summer of
1991.
Should
the proposal
be adopted, then,
Illinois would have
a lower psi standard than all of the adjacent states.
The IPC points out that because the reductions that have
already taken place constitute an 80
reduction in VOC emissions
(this analysis assumes a
9.5 psi standard),
to place such an
imposition on them to further
reduce in light of the incremental
gain
is not warranted.
That is,
“the vast majority of the air
quality benefits have already been achieved under the current
Docket A and 9.5 standard”.
(R. at p.
29).
The IPC further stated that if the Board disagrees and
adopts
the 9.0 psi standard,
then it should only apply
to the
months of July and August.
While insisting that the distribution’
problems would
remain,
IPC maintained that the shorter control
period would reduce their burden.
For example,
the
IPC stated
that
in order
to prepare for
a two month control period at the
retail level, preparations would have to be made beforehand and a
trailing effect would occur.
Thus higher volume outlets would be
selling lower volatility fuel earlier than July 1st while those
markets which did not turn over their product as rapidly would
still be selling lower volatility gasoline after the regulatory
timeframe had expired.
The IPC came
to the conclusion that this
essentially creates a three and a half month program under the
current regulation
docket
(A)).
(R. at 28—29).
In addition,
IPC requested some alterations
in section
215.585(g).
Essentially
this language would serve
as a catalyst
for adopting new tests to measure gasoline volatility without the
burden of going through an entire rulemaking process.
The
116—136
—5—
testing methods currently
in place are the so—called “dry
tests”.
Under these
tests, the volatility measurements are
subject
to variations of up to 0.5 and testing must be undertaken
in laboratory settings.
The IPC, upon information and belief,
has been led to believe that the USEPA will be adopting a new
test called the
“Granbner”
test.
This measurement
is not only
accurate, but can be done
in the field and
is thus more
convenient as well as cheaper.
At hearing the representative from USEPA committed to
screening this concept through headquarters.
As a result,
the
USEPA submitted a public comment endorsing the use of
this
language
(P.C.
#73).
Accordingly the Board has inserted this
provision
in docket
(B).
POST-HEARING COMMENTS
While the Illinois Environmental Protection Agency (Agency)
did not participate at hearing,
it did submit a public comment.
(P.C.
#76).
The Agency determined that the projections
of the
CLA as well as the DENR
in regards to VOC reductions were
underestimated.
The Agency correctly points out that the DENR’s
study analyzed the reductions that a 9.0 psi standard
Docket
(B)
would achieve relative to
a 9.5 psi standard Docket
(A).
Yet that 9.5 psi standard as articulated in the emergency rule
has since expired and docket
(A)
is federally unacceptable as a
SIP revision, leaving only the Phase
I federal rule of 10.5
psi.
As such,
the correct barometer would be any savings against
the federal standard.
The Agency estimates this reduction to be
303 TPD.
(P.C.
#76).
The Agency found DENR’s estimated cost of 1.5 cents per
gallon to be within reason.
It noted that the USEPA estimate
contained
in the June 11 Federal Register under the Phase
II RVP
rules was 1.1 cents per gallon.
Also noteworthy was the fact
that the USEPA had determined two economic benefits to lower RVP
fuel:
“fuels economy credit” and “evaporative recovery
credit”.
The former occurs because lowering RVP requires
refiners
to substitute components for butane which have greater
energy density and thus allow the consumer
to purchase fewer
gallons of gasoline for the same amount of travel.
The latter
occurs when a portion of
the lower RVP fuel does not evaporate
and therefore allows consumers to purchase less.
(P.C.
#76 at
19).
Finally, the Agency requests that the Board’s proposal
in
docket
(B)
be limited to 1991 only.
The Agency documents the
cost of enforcing such
a program and notes
that the federal
program will be
in place as of
1992.
In short
the Agency submits
that docket
(B)
should be adopted as a one—year
rule,
thereby
maximizing the reduction
in VOC emissions and minimizing
the
State’s long term efforts
of enforcing duplicative regulation
with no additional emission reduction benefit.
116—137
—6—
DISCUSSION
Given all of the evidence, the Board finds that
implementation of the federal standard (9.0 psi)
for the period
of June 1st to September 15th in 1991
is economically reasonable
and technically feasible.
Equally significant,
it
is
environmentally desirable.
There is little doubt
that such a rule will impact petroleum
distributors and
refineries.
Yet the same can be said of the
Emergency Rule
in 1990 as well as the Federal Phase II plan.
Indeed, the industry stated that they were sending 9.0 psi
gasoline in order
to meet the 9.5 psi goal of docket
(A).
In terms of
control period,
the three and
a half month
version put forth in docket
(B)
is directly related to the time
period
in which evaporation from gasoline sources occur.
The
Chicago area has had ozone violations
in June and September as
well as July and August.
The federal Phase
II program is a
codification of this knowledge.
Moreover,
it will be the
consumer who ultimately pays the cost.
(R. at 64—65).
But there exist many differences between docket
(A) and
docket
(B).
Unlike docket
(A),
(B)
will contain a test tolerance
of 0.3 psi.
The industry,
therefore, will not have to ship a
product which measures 8.5 psi
in order
to meet the articulated
standard.
In other words,
the Board accepts the notion that
variations exist when attempts are made to measure fuel
volatility.
And given the good faith exhibited by the petroleum
industry throughout
the course of this proceeding,
they should be
given the benefit of the doubt.
In order
to meet the
enforceability standard of 9.3 then,
the industry would have to
ship gasoline with volatility between 8.8 psi and 9.0 psi.
Since
much of the gasoline tested in the summer of
1990 was
in fact
under
9.0 psi, the Board does not forsee this to be an undue
burden.
Another aspect of docket
(B)
is the seemingly staggering
cost of compliance.
The DENR accepted the IPC’s estimate that
it
would have to spend $65 million in order
to. comply with docket
(B).
This amount includes money
that must be spent
in any event
in order to comply with the federal regulations effective
in
1992.
Regardless of
these transitional costs, however,
there
is
no doubt that the consumer ultimately incurs the cost.
(R. at 13—
14).
USEPA and DENR estimate this cost
to be between 1.1 and 1.5
cents per gallon.
Because we are dealing with thousands of tons of VOC
emissions over the course of a summer,
the Board disagrees with
IPC’s assessment that going from 9.5 psi to 9.0 psi increases
costs with only “incremental” benefits.
The Agency estimates
116—138
—7—
that without a Board rule in place the average daily VOC
emissions would be 1430 TPD.
But with a 9.0 psi standard, daily
emissions would be reduced to 1130 TPD.
Over the course of the
regulatory period
(June
1 through September 15),
this represents
a total of 32,421 tons of VOC emissions.
Even by the standards
estimated by DENR,
the difference would represent over 30,000
tons of VOC emissions.
In short,
the Board does not view this as
incremental or minor, especially
in light of the two non—
attainment areas located in this state.
Finally,
the USEPA’s
determination to limit RVP to 9.0 psi
in addition to the test
results obtained over the regulatory period
in 1990 convince the
Board that docket
(B)
is both economically reasonable and
technically feasible for the proposed control period.
ORDER
The proposed amendments are hereby adopted for Second Notice
and the Clerk
is directed to submit the proposal to the Joint
Committee on Administrative Rules.
TITLE 35:
ENVIRONMENTAL PROTECTION
SUBTITLE
B:
AIR POLLUTION
CHAPTER
I:
POLLUTION CONTROL BOARD
SUBCHAPTER c:
EMISSION STANDARDS AND LIMITATIONS FOR
STATIONARY SOURCES
PART 211
DEFINITIONS AND GENERAL PROVISIONS
SUBPART
B:
DEFINITIONS
Section
211.121
Other Definitions
211.122
Definitions
Section 211.122
Definitions
“Transfer Efficiency”:
ratio of the amount
of coating solids
deposited onto
a part or product
to the total amount
of coating
solids used.
PART 215
ORGANIC MATERIAL EMISSION STANDARDS AND LIMITATIONS
SUBPART Y:
GASOLINE DISTRIBUTION
Section
215.581
Bulk Gasoline Plants
215.582
Bulk Gasoline Terminals
215.583
Gasoline Dispensing Facilities
215.584
Gasoline Delivery Vessels
215.585
Gasoline Volatility Standards
116—139
—8—
Section 215.585
Gasoline Volatility Standards
a)
No person shall sell, offer
for sale, dispense, supply,
offer
for supply,
or transport for use in Illinois
gasoline whose Reid vapor pressure exceeds the
applicable limitations set forth
in subsections
(b) and
(c)
during the regulatory control periods,
which shall
be
~y
3 June
1 to
At~t~
3~September
15 for retail
outlets, wholesale purchaser—consumer facilities, and
all other facilities.
b)
The Reid vapor pressure of gasoline,
a measure of its
volatility,
shall not exceed 9~S9.0 psi
(6S--S 62.1 kPa)
during the regulatory control period in l99Gi ~nd
each
year thereafter only.
C)
The Reid vapor pressure of ethanol blend gasolines shall
not exceed the limitations
for gasoline set forth in
subsection
(b)
by more than 1.0 psi
(6.9 kPa).
Notwithstanding
this limitation, blenders of
ethanol
blend gasolines whose Reid vapor pressure
is less than
1.0 psi above the base stock gasoline immediately after
blending with ethanol are prohibited from adding butane
or any product that will increase the Reid vapor
pressure of
the blended gasoline.
d)
All sampling of gasoline required pursuant to the
provisions of this Section shall be conducted by one or
more of the following approved methods or procedures
which are incorporated by reference
in Section 215.105.
1)
For manual sampling, ASTM D4057;
2)
For automatic sampling, ASTM D4l77;
3)
Sampling procedures
for Fuel Volatility,
40 CFR 80
Appendix D.
e)
The Reid vapor pressure of gasoline shall be measured
in
accordance with
e4ther
~
Method
ASPM B323 or a
modification of ASTM D323 known as the “dry method” as
set forth in 40 CFR 80, Appendix E, incorporated by
reference in Section 215.105.
For ga~e~4t~e
—
exygerta~e
b~ertdewh~ehee~a4~
w
er—ex~rac~ab~e
exy~erta~e~
the
Re4d
vapor
pre,,t~re~ha~
~e meast~red~
the dry
Method ~ee~ For purposes of enforcement of the Reid
vapor pressure limitations
set forth in subsections
(b)
and
(c),
no enforcement action shall be initiated unless
the Reid vapor pressure measured by the Agency is more
than 0.3 psi (2.1 kPa)
greater
than the applicable
standard.
116—140
—9—
f)
The ethanol content
of ethanol blend gasolines shall be
determined by use of one of the approved testing
methodologies specified
in 40 CFR 80, Appendix F,
incorporated by reference
in Section 215.105.
g)
Any alternate to the sampling or testing methods or
procedures contained in subsections
(d),
(e), and
(f)
must be approved by the Agency, which shall consider
data comparing the performance of the proposed
alternative
to the performance of one or more approved
test methods or procedures.
Such data shall accompany
any request for Agency approval
of any alternate test
procedure.
If the Agency determines that such data
demonstrates that the proposed alternative will achieve
results equivalent
to the approved test methods or will
achieve results equivalent
to the approved test methods
or procedures,
the Agency shall approve the proposed
alternative.
Upon approval
of the alternate sampling
or
test methods or procedures contained
in subsections
(d),
(e), and
(f),
the Agency will submit
the methods or
procedures
to the United States Environmental Protection
Agency (USEPA)
as
a revision to the State plan.
Alternate methods or procedures become effective only
upon approval of the incorporation of the alternate
method or procedure
in the State plan by USEPA, unless
such alternate method or procedure has previously been
approved by USEPA for use
in conjunction with a
federally—promulgated gasoline volatility regulation,
in
which case the alternate method or procedure becomes
effective immediately upon approval by the Agency.
h)
Each refiner
or supplier that distributes gasoline or
ethanol blends shall:
1)
During
the regulatory control period,
state
that
the Reid vapor pressure of all gasoline
or ethanol
blends leaving the refinery or distribution
facility for use
in Illinois complies
with
the Reid
vapor pressure limitations set forth in Section
215.585(b)
and
(c).
Any facility receiving this
gasoline shall be provided with a copy of an
invoice, bill of lading, or other documentation
used
in normal business practice stating that the
Reid vapor pressure of the gasoline complies with
the State Reid vapor pressure standard.
2)
Maintain records for a period of one year on the
Reid vapor pressure, quantity shipped and date of
delivery of any gasoline or ethanol blends
leaving
the refinery or distribution facility for use
in
Illinois.
The Agency shall be provided with copies
of such records
if requested.
116—141
—10—
~j
Each retail outlet and each facility operated by
a
wholesale purchaser—consumer shall,
during the
regulatory control period, maintain records regarding
each delivery of gasoline, which shall include
documentation of compliance with the Reid vapor
pressure, limitations set forth
in Section 215.585
(b)
and
(c), quantity received and date received.
The
Agency shall be provided with copies of such records,
if
requested.
~jJ
This Section is effective for 1991 only.
IT IS SO ORDERED.
J. Anderson and J.C. Marlin concurred.
I, Dorothy M. Gunn,
Clerk of the Illinois Pollution Control
Board,
hereby certify that the
ove Opinion and Order was
adopted on the
9~I
day of
~
,
1990 by a vote
Illinois P llution Control Board
116—14
2
