ILLINOIS POLLUTION CONTROL EOARL)

February

1,

1996

IN THE MATTER

OF:

15

 ROP PLAN: CLEAN-UP PART

I

)

 R96-2

?JNENDMENTS

TO

 35 ILL. ADM. CODE

)

 (Rulemaking

 Air)

219.585(a)

AND

219.APPENDIX E

Adopted Rule.

 Final Action.

OPINION

AND

ORDER OF THE BOARD

 (by R.C.

 Flemal):

This matter comes before the Board upon

 a petition for

rulemaking filed by the Illinois Environmental Protection Agency

(Agency).

 The Agency requests that the Board make two amendments

to its air emissions regulations applicable

 in the Metro-East

St.

Louis area

 (Madison,

 Monroe, and St. Clair Counties).

The

principal amendnient establishes a uniform annual date of

June

 1 upon which all regulated gasoline facilities must comply

with 7.2 psi Reid vapor pressure

 (RVP)

 gasoline requirements;

currently the June

 1 date applies to retail outlets and wholesale

purchaser—consumer facilities, whereas the date applicable to

other facilities

 (i.e.,

 refiners, distributors, bulk terminals)

is May 1.

 The second proposed amendment is

 a housekeeping matter

that corrects an error in the identification number of

 a marine

terminal at 35 Ill. Adm.

 Code 2l9.Appendix E.

The Board’s responsibility in this matter arises from the

Environmental Protection Act

 (Act)

 (415 ILCS 5/1

 et seq.

 (1994))

The Board is charged therein

to “determine,

 define and implement

the environmental

 control standards applicable

 in the State of

Illinois!!

 (415 ILCS 5/5(b)).

 More generally,

 the Board’s

rulemaking charge

 is based on the system of

 checks

 and balances

integral to Illinois environmental governance:

 the Board bears

responsibility for the rulemaking and principal adjudicatory

functions;

 the Agency has primary responsibility for

administration of the Act and the Board’s regulations,

 including

the regulations today proposed for amendment.

Today the Board adopts the Agency’s proposed rules

 for final

action and sends them to the Administrative Code Division of the

Office of Secretary of State for publication and assignment of an

effective date pursuant to Section 5 of the Illinois

Administrative Procedure Act

 (5 ILCS 100/5—40(d)

 (1994)).

PROCEDURAL HISTORY

The Agency filed its petition on September

6,

 1995.

The petition was accompanied by a motion to expedite decision.

The Board granted the motion and additionally on September 21,

 1995 adopted the Agency’s proposal for first notice.

 First

notice publication occurred at 19

Illinois Register

14267

(October 13,

 1995)

Hearings were held before hearing officer Audrey Lozuk-

Lawless on October

 25, 1995 in Springfield,

 Illinois, and on

October 26,

 1995 in Edwardsville,

 Illinois.

 At both hearings the

Agency presented testimony in support of its proposal.

 Testimony

in support of the proposal was also received from Amoco Oil

Company and the Illinois Environmental Regulatory Group.

 Shell

Oil Company filed the only public comment and supported the

proposed rulemaking to provide consistency with the USEPA

regulations.

By order of December

7,

 1995 the Board adopted the proposal

for second notice.

 The matter was accordingly filed with the

Joint Committee on Administrative Rules

 (JCAR)

 On January 23,

1996 JCAR voted no objection to adoption of the proposal.

The Board observes that the amendment regarding the 7.2 psi

RVP compliance date has been before the Board on

 a prior occasion

as the subject of an emergency rule adopted by the Board in

February

19951

 ; the emergency rule was

 in effect for the 1995

ozone season.

 Today’s action is,

 in effect,

 adoption of that

rule on

 a permanent basis.

The Agency contends,

 as it did in the emergency rule

proceeding, that the uniform June

 1 compliance date

 “is

appropriate at this time in view of the need for consistency

between the Board’s rules and USEPA’s regulations”

 (Motion at

¶3),

 and that the “change should be accomplished as quickly as

possible to address concerns of enforceability of the current

rule”

 (Id.)

 In the Matter of: Emergency Rule Amending 7.2 psi Reid Vapor

Pressure Requirement in the Metro—East Area,

 35 Ill. Adm. Code

219.585(a),

 R95-lO,

 adopted by Board order of February 23,

 1995,

effective March

10,

 1995.

3

NATURE OF TODAY’S RULES

Section 182(b) (1) of the Clean Air Act,

 as amended in 1990,

requires all moderate and above ozone nonattainment areas to

achieve a 15

 reduction of 1990 emissions of volatile organic

material

 (VOM)

 by 1996.

 In Illinois,

 the chicago and Metro-East

areas are classified as “severe” and “moderate” nonattainment for

ozone, respectively, and as such are subject to the 15

 reduction

requirement.

 Illinois has met its 15

 reduction obligations by

designing a

15

 Rate of Progress

 (ROP)

 plan, which included

adoption of

 a series of regulations designed to decrease VOM

 emissions.

 The ROP provisions are incorporated into Illinois’

State Implementation Plan

 (SIP)

 for the control of ozone.

One of

the 15

 POP provisions

is

 a requirement that only low

volatility gasoline be sold during the ozone season.

Low

volatility gasoline evaporates less readily, and hence

 is less

prone to generating emissions of VOM.

The Board adopted low volatility gasoline regulations for

the Metro—East area in docket R94—12,

 In the Matter of:

15

ROP

Plan Control Measures for VON Emissions

 Part

 I: Pressure/Vacuum

Relief Valves and 7.2 RVP

 (September

15,

 1994)

 “Low volatility”

gasoline,

 as defined for the Metro-East

 area,

 is gasoline with a

Reid. vapor pressure not exceeding 7.2 pounds per square inch

(psi), with some latitude provided for ethanol blends.

 (see 35

Ill. Adm.

 Code 219.585(b)

and

 (c).)

 The definition of what

constitutes low volatility gasoline is not at issue in the

instant matter.

What is at issue is the annual “regulatory control period”

during which the low volatility gasoline regulations are in

effect.

 The regulatory control period consists of that annual

period during which

 “no person shall

 sell,

 offer for sale,

dispense,

 supply, offer for supply,

 or transport for use in

Illinois” gasoline that is other than low volatility gasoline.

(see

.35

Ill.

Adm.

 Code 219.585(a).)

 As currently crafted,

the

regulatory control period is bifurcated, with a period extending

from June

 1 to September

 15 applicable to retail outlets and

wholesale purchaser-consumer facilities,

 and a period from May

1

to September 15 for “all other facilities”.

 (Id.)

 The “other

facilities” include refiners, distributors,

 and bulk terminals

(collectively as “supply facilities”)

Thus the existing regulations require that supply facilities

comply with the low volatility gasoline regulations each year at

a date that is

 a month earlier than the retail and consumer

facilities they service.

 Today’s action removes this

bifurcation,

 thereby establishing the same regulatory control

period of June

1

 to September 15 for all affected facilities.

It is important to note that removal of the current

bifurcated regulatory control period under

 Illinois law is not

equivalent

 to removal of all volatility limitations during the

month of May.

 Rather, the result is return to volatility limits

prescribed by the United States Environmental Protection Agency

 (USEPA)

 under federal law.

USEPA regulates gasoline volatility under Section 211(h)

of

the Clean Air Act.

 As part of that authority, USEPA has

specified maximum gasoline volatility limits for various non-

attainment areas; these apply unless a lower volatility limit is

adopted within a SIP.

 For the Metro-East area during the month

of May the USEPA—specified volatility limit

 is 9.0 psi RVP.

(Federal Register,

 Vol.

55,

No.

 212,

 June 11,

 1990,

p.

 23867.)

Thus,

 the consequence of today’s action is equivalent to raising

the May limitation for supply facilities from 7.2 to 9.0 psi

gasoline.

JUSTIFICATION

The justification that the Agency presents for today’s

action is essentially the same as the justification that the

Board found compelling

 in adopting the identical amendments as an

emergency rule in February 1995 under docket R95-10.

 That is,

the amendment eases an economic hardship without detriment to the

environment and air quality.

Hardship

In adopting the emergency rule

in

R95-10,

 the Board

specifically identified three areas of hardship:

1)

 for the

refiners, acceleration of production schedules

 to supply lower

volatility gasoline

 for only one small

 area

of

 a larger market

 area;

2)

 for pipelines,

 the need to ship

 a separate,

 low RVP to

the Illinois market during the month of May; and

3)

 for gasoline

distributors,

 the shortening

 of time to blend down their tanks

from higher volatility winter gasoline and the resulting

 rise of

the risk of being out of compliance.

 (R95-lO

 slip op.

 at p.

5,

February 23,

 1995.)

 The Agency asserts

 in the instant matter

that each of these areas of hardship remains.

 (Statement of

Reasons at p.

3;

 Exh.

#1

 at p.

4.)

Some portion

 of this hardship results

 from the

 fact that

the

Metro-East area is part of the larger St. Louis metropolitan area

and market.

 In the Missouri part of the metropolitan area,

5

pursuant to federal law,

 supply facilities are not required to

comply with the 7.2 psi gasoline requirements unti.l June

1;

during May the federal standard of 9.0 psi applies.

 Thus, Metro-

East supply facilities,

 if they wish to compete in the full~

metropolitan market, must during the month of May accommodate two

dirrerent gasoline volatility laws.

The Agency has undertaken an analysis of the economic effect

caused by the difference in regulations in the two parts of the

metropolitan area,

 and observes:

Revising the bulk supplier compliance date from May

1

to June

 1, would delay the need for the more expensive,

lower volatility gasoline by a month.

 In order to

determine the monthly amount of fuel sold in the Metro-S

East area,

 statewide gasoline and ethanol-blended

gasoline sales

 figures for 1990, were estimated for

1996 using gasoline sales growth figures from the

Illinois Department of Transportation

 (“IDOT”)

 Total

gasoline and ethanol-blend sales

 in the Metro-East area

were estimated by apportioning statewide sales to the

three-county area based on the areas fraction of

statewide vehicle miles traveled.

 Using these IDOT-

supplied figures,

it

 is estimated that approximately

23,600,000 gallons of gasoline and ethanol-blended

gasoline would be sold in May 1996.

 Applying the

 1 to

2 cent per gallon cost increase estimate,

 contained in

the TSD

 technical

 support document

 for R94-l2,

for

the lower volatility fuel,

 gasoline suppliers will save

between $236,000 and $472,000 through the compliance

date change to June 1.

 (Exh.

#1

 at p.

 4-5.)

Environmental/Air Quality Impact

The Board in adopting the emergency rule in R95-10 was

persuaded that changing the regulatory control period would have

little environmental effect.

 (ROE-b

 slip op.

 at p.

4,

 February

23,

 1995.)

 Again,

 the Board is presented in the instant matter

with the same argument:

If the May 1 Illinois supplier compliance date were

changed to June

1,

 the current USEPA

 9.0 psi RVP May

standard would still be in effect.

 Ther~fore,no

increase in VON emissions would occur.

 (Exh.

 #1 at p.

5.)

One measure of the impact today’s rule will have on air

quality is the impact it will have on Illinois’

 inventory of

emission reductions, and hence ability to comply with the Clean

6

Air Act’s requirement to produce emission reductions.

 The Agency

addresses this point thusly:

From an emission reduction point of view,

 changing the

compliance date to June

 1 would result in only a small

loss of potential VOM emissions reductions.

 The Agency

estimated in the TSD for R95-10 that the amount of

emission reductions which would have been obtained from

affected gasoline storage terminals and bulk storage

plants during the month of May is approximately 0.27

TPD

 tons

 per day.

 However,

the

 15 Percent ROP plan

7.2 psi RVP gasoline emissions reduction credit of 8.55

TPD,

 contained in the TSD for docket R94-12, should not

 be reduced because the ROP plan reduction is based on

calculation methodologies which incorporate both

driving patterns and meteorological conditions

representative of summer

 (June through August)

conditions.

 (Exh.

 ~b at p.

5.)

CORRECTION AMENDMENT

In addition to the issue of the regulatory control period

for low volatility gasoline,

 the Board also adopts today the

Agency’s recommendation to correct an error regarding the

identification number for the Clark Oil Company,

 as found in 35

Ill. Adm.

 Code 2l9.Appendix E.

 The correction changes the number

from 197800AAA to 119O5OAAA.

The Clark Oil Company terminal is subject to the Marine

Vessel Loading rules.

 These rules were adopted by the Board in

docket R94-b5,

 In the Matter of:

15

 ROP Plan Control Measures

for VOM Emissions

 Part

 II Marine Vessel Loading: Amendments

35

Ill. Adm.

 Code Parts 211,

 218 and 219

 (october 20,

 1994)

The

incorrect identification number was adopted at that time.

CONCLUSION

The Board finds that the record before us justifies adoption

of the rule changes proposed by the Agency.

 Accordingly,

we

today adopt those changes.

ORDER

The Board directs that the following amendments be submitted

to the Secretary of State for final notice pursuant to Section

5-

40 of the Illinois Administrative Procedure Act.

7

TITLE 35:

 ENVIRONMENTAL PROTECTION

SUBTITLE B:

 AIR POLLUTION

CHAPTER

I:

 POLLUTION CONTROL BOARD

SUBCHAPTER

c:

 EMISSIONS

STANDARDS

AND LIMITATIONS FOR STATIONARY SOURCES

PART

219

ORGANIC MATERIAL EMISSION STANDARDS AND

LIMITATIONS FOR THE METRO EAST AREA

SUBPART

Y:

 GASOLINE DISTRIBUTION

Section 219.585

 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) below during the regulatory control periods, which

shall be June

 1 to September

 15 for retail outlets and

wholesale purchaser consumer facilities and from May

1

to September 15 for all other facilities.

b)

 The Reid vapor pressure of gasoline,

 a measure of its

volatility, shall not exceed 7.2 psi

 (49.68

 kPa)

 during

the regulatory control period in 1995 and each year

thereafter.

c)

 The Reid vapor pressure of ethanol blend gasolines

having at least nine percent

(9)

 but not more than ten

percent

 (10)

 ethyl alcohol by volume of the blended

mixture,

 shall not exceed the limitations for gasoline

set forth in subsection

(b)

 of this Section 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 in

accordance with the procedures contained.in 40 CFR Part

80, Appendix D,

 Sampling Procedures for Fuel

Volatility, which are incorporated by reference in

Section 219.112 of this Part.

8

e)

 The Reid vapor pressure of gasoline shall be measured

in accordance with the procedures contained in “Tests

for Determining Reid Vapor Pressure

 (RVP)

 of Gasoline

and Gasoline-Oxygenate Blends’1 as set forth in

 40 CFR

80, Appendix E,

 incorporated by reference in

35

 III.

Adm. Code 219.112 of this Part.

f)

 The ethanol content of ethanol blend gasolines shall be

 determined by use of one of the approved testing

methodologies specified in

 40 CFR Part

 80, Appendix F,

incorporated by reference in 35 Ill. Adm. Code 219.112

of this Part.

g)

 Any alternate to the sampling or testing methods

or

procedures contained in subsections

 (d),

 (e),

and

(f)

of this Section 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.

h)

 Recordkeeping and reporting:

1)

 Each refiner or supplier that distributes gasoline

or ethanol blends shall:

A)

 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 35 Ill. Adm.

 Code

219.585(b)

and

(c)

 of this Part.

 Any source

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.

B)

 Maintain records for a period of three years

on the Reid vapor pressure,

 quantity shipped

9

and date of delivery of any gasoline or

ethanol

blends

leaving

the

refinery

distribution facility for use in Illinois.

The Agency shall be provided with copies of

such records if requested.

2)

 Records and reports required by subsections

(h) (2) (A) and

 (h) (2) (B) below shall be made

available to the Agency upon request.

 During the

regulatory

control

period,

the

owner

operator

gasoline

dispensing

operation

subject

this

Section shall:

A)

 Retain 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

as

provided in subsection

 (h) (1) (A)

 above; and

B)

 Maintain records for a period of three years

on the Reid vapor pressure,

 quantity received

and date of delivery of any gasoline or

ethanol blends arriving at the gasoline

operation.

(Source:

 Amended at 19 Ill. Reg.

 effective

Section 2l9.Appendix

E:

 List of Affected Marine Terminals

The following table identifies the expected volatile organic

material

 (VON)

 emission reductions,

 in pounds per day in 1996,

from the control of the marine vessel loading of gasoline and

crude oil from the listed sources,

 their successors,

 and assigns.

Such reduction of VOM emissions must occur after November 1990

and may not include reductions resulting from compliance with any

federally required controls or from any measures

 included in any

State Implementation Plan adopted by the State of Illinois

to

satisfy any other Clean Air Act requirement.

Facility

 Permit#

 Reduction

Phillips Pipeline

Co.

73040515014

10

Facility

ID

 # 163O2OAAB

Clark Oil and Refining Corp.

72110678053

468

Facility ID

#

 b97800A2’~A119O5OAAA

10

Marathon Pipe Line Co.

Facility ID

 ft 1b9O5OAAF

Conoco Pipe Line Co.

 Facility ID

 ft 1b9O5OAAK

Shell Oil Co.

Facility ID

 ft 1b9O9OAAA

Amoco Distribution Center

Facility ID

 ft 119115AAY

73021451001

73031095011

87120058128

73020080007

2,417

2,759

7,554

10,443

(Source:

 Amended at 19

 Ill.

 Reg.

 effective

IT

 IS SO ORDERED.

Board Member J.

 Theodore Meyer flissented.

I,

 Dorothy M.

 Gunn,

 Clerk of the Illinois Pollution Control

Board, hereby certify that the abov

adopted on the

/.‘~

 day of

 ~~opii~ioxi~nion

 and order was

vote of

1996,

Dorothy M. #lnn,

 Clerk

Illinois P~l1utionControl Board