ILLINOIS POLLUTION CONTROL BOARD
January 10,
1991
IN THE
MATTER
OF:
)
R88—30(B)
LIMITS TO THE VOLATILITY
)
(Rulemaking)
OF GASOLINE
)
ADOPTED RULE.
FINAL ORDER
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 had earlier 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.
On July 19,
1990 the Board proposed this
rulemaking for First Notice and
it was published in the Illinois
Register on August
10, 1990,
14
Ill.
Reg.
12697.
On September 11,
1990 a hearing was conducted regarding the
feasibility of docket
(B).
Due
to the participation of the
petroleum industry,
the USEPA, and the Chicago Lung Association,
certain additions as well as alterations were made to docket
(B).
These were adopted by the Board and proposed for Second
Notice on November 8, 1990.
The rule was sent to the Joint
Committee on Administrative Rules
(JCAR)
and the Board made some
minor language adjustments to conform to that agency’s
requirements.
JCAR
met and discussed this rulemaking at its
January
9, 1991 meeting and subsequently issued a Certificate of
No Objection.
Accordingly,
the Board today moves to adopt this
rulemaking.
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).
While docket
(A) did proceed to Final Adoption, the Board was
forced to undertake a later 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.
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.
118—81
—2—
Since the formal inception of the Board proposal in January
of 1989, Federal rules regarding gasoline volatility have been
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 Federal 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)
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
118—82
—3—
congestion.
In addition to the health effects, ozone has been
estimated to cause two to three billion dollars worth of crop
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 6-
county 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 legally 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 TJSEPA 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,
it stated.
Finally the USEPA
recommended that the Board adopt the 0.3 psi testing tolerance
which was included in Phase
2 of the federal rule.
Next to testify was Maggie Robbins, representing the
proponent of this rulemaking,
the Chicago Lung Association
118—83
—4—
(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
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 reply,
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
RVP
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 an
additional burden 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).
118—84
—5—
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
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 psi 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
118—85
—6—
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.
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 greatly
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
result 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
is
members 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).
tJSEPA and DENR estimate this cost to be between 1.1 and
1.5 cents per gallon.
118—86
—7—
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
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 which is an excess of 10,000,000 gallons of
gasoline.
In short,
the Board does not view this as incremental
or minor reduction in VOC emissions, 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 Board hereby adopts the following amendments to 35
Ill.
Adm. Code 215.
The Board directs the Clerk to submit the adopted
amendments to the Administrative Code Division of the Secretary
of State’s Office.
Further, the Board directs the Agency to expedite submittal
of these amendments to the USEPA as a SIP revision.
With the
regulatory control period for 1991 scheduled to begin June 1,
the
Agency must file the submittal, and USEPA must approve the rule
as a SIP revision before that date.
The Agency is therefore
ordered to submit this rule to USEPA on an expedited basis.
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.
118—87
—8—
PART 215
ORGANIC MATERIAL EMISSION STANDARDS
AND
LIMITATIONS
SUBPART
1:
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
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 ~ti~y~ June
1 to Attg~~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 975 9.0 psi
(6575 62.1 kPa)
during the regulatory control perT6~in 199e1 end eee~t
year thereaf~eronly.
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 D4177;
3)
Sampling procedures
for Fuel Volatility,
40 CFR 80
Appendix D.
118—88
—9—
e)
The Reid vapor pressure of gasoline shall be measured in
accordance with either ~ee~ method AS~MB3~9or 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.
Per gaso~4~rte
-
oxyge~ath
b3~endswh~eheonthin wa~er—ex~raethbieoxygena+~ee7
the
Reid vapor prees~ree~te*i~be meeet~redi~e~ng
the dry
method ~ee~ For ~urposes of enforcement of the Reid
vapor pressure limitations set forth in subsections
(b)
and
(ci,
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.
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
Cd),
(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 pursuant
to Section 110
of the Clean Air Act (42 U.S.C.A 7410).
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 (i.e.,
the “Grabner”
test, ASTM Emergency Standards 14 and 15, approved
February 6,
1990;
this incorporation includes no later
editions or amendments.) 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:
118—89
—10—
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.
fl
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.
I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control
Board, hereby certifLthat the a
ye Opinion and Order was
adopted on the
/~‘~-‘
day of
_____________,
1991
by
a vote
of
________________.
Control Board
118—90
