in-20260812-IR-326260269FNA: LOW REID VAPOR PRESSURE REQUIREMENTS

TITLE 326 AIR POLLUTION CONTROL DIVISION Notice of First Public Comment Period LSA Document #26-269 LOW REID VAPOR PRESSURE REQUIREMENTS PURPOSE OF NOTICE The Indiana Department of Environmental Management (IDEM) is soliciting public comment on repealing rules at 326 IAC 13-3 concerning low Reid vapor pressure fuel requirements in Clark and Floyd counties. ADDITIONAL DOCUMENTS Regulatory Analysis: 20260812-IR-326260269RAA Notice of Public Hearing: 20260812-IR-326260269PHA CITATIONS AFFECTED: 326 IAC 13-3 AUTHORITY: IC 13-17-3 OVERVIEW Basic Purpose and Background The Clean Air Act (CAA) requires that the United States Environmental Protection Agency (U.S. EPA) set primary and secondary National Ambient Air Quality Standards (NAAQS) for the six criteria air pollutants considered harmful to public health and the environment. These pollutants are carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter, and sulfur dioxide. Each county in Indiana is classified, or designated, as being in attainment if air quality monitoring or modeling indicates that the area meets the NAAQS. IDEM's office of air quality monitors air quality data for each county in Indiana as part of its state implementation plan (SIP) and tracks whether these areas are in attainment or nonattainment for each of the six NAAQS criteria air pollutants. Clark and Floyd counties in Indiana, which are part of the Louisville, KY-IN area, are currently classified as attainment in the SIP for all air quality standards. The Indiana portion of the Louisville area was redesignated from nonattainment to attainment for the 2015 8-hour ozone standard on July 5, 2022. However, the Kentucky portion of the Louisville, KY-IN area is currently classified as nonattainment under the 2015 8-hour ozone standard. Reid vapor pressure (RVP) is a common measure of, and general overall term for, a gasoline's evaporation characteristics, or volatility. U.S. EPA regulates the RVP of gasoline sold during the summer ozone season in an effort to reduce evaporative emissions of volatile organic compounds (VOC) from the gasoline, which largely contribute to ground-level ozone, and to decrease the effects of ozone-related health problems. Section 211(h) of the CAA sets gasoline RVP limits that may not exceed 9.0 pounds per square inch (psi) during the summer season. Under Section 182 of the CAA, U.S. EPA required all ozone nonattainment areas to submit a reasonable further progress (RFP) plan to achieve a 15% reduction of 1990 year VOC emissions by 1996. Indiana's Clark and Floyd counties were classified as moderate nonattainment under the 1-hour ozone standard and were therefore subject to this requirement. In order to achieve a 15% reduction of VOC emissions, the state could choose between different reasonable control measures. The best options for these reductions included either lowering the RVP of gasoline to 7.8 psi in Clark and Floyd counties or choosing an opt-in to the federal Reformulated Gasoline (RFG) program, pursuant to Section 211(k)(6) of the CAA. RFG is a type of gasoline that is blended to meet stricter performance standards for cleaner burning and is typically used in areas with higher levels of ozone pollution. Kentucky chose to address its 15% RFP plan requirements by opting into the federal RFG control measure for their 1-hour ozone standard SIP in 1995. 59 FR 38453 (July 28, 1994). However, for Indiana, the RFG program could not be implemented into its SIP in time to qualify as a control measure that would help Clark and Floyd counties meet the 15% RFP plan requirements by 1996. Consequently, the state incorporated low Reid vapor pressure (LRVP), which describes a reduction in summer fuel requirements as compared to a previously determined level, into its SIP as a control measure to address the 15% RFP plan for the 1-hour ozone standard in 1995. 61 FR 4895 (Feb. 9, 1996); 68 FR 42978 (Jul. 21, 2003). As part of Indiana's LRVP requirements, U.S. EPA determined that RFG is a compliant and suitable fuel to meet these standards because it achieves a slightly higher level of emission reductions than gasoline with a 7.8 psi RVP. Additionally, because the Kentucky portion of the Louisville, KY-IN area accounts for most of the fuel consumption in the market, and Clark and Floyd counties in Indiana account for a smaller portion, refineries opt to deliver only RFG to the metro area, rather than supply two different fuel types to the same region. Therefore, RFG has historically been the only type of summer fuel distributed to the Louisville, KY-IN area. On February 28, 2025, the state of Kentucky petitioned U.S. EPA to opt out of the federal RFG program, with the stipulation of equivalent emissions reductions to be achieved by 2027. Kentucky also provided supplemental technical information with their petition that gave emission reduction estimates in support of their request. On February 26, 2026, U.S. EPA approved Kentucky's opt-out petition, with an effective date of May 27, 2026. 91 FR 10008 (Mar. 2, 2026). Before this approval, IDEM had initiated work to provide technical documentation in support of removing the LRVP control measure for Clark and Floyd counties from 326 IAC 13-3, as well as the state's SIP. U.S. EPA's approval of Kentucky's opt-out petition unexpectedly expedites Indiana's LRVP SIP removal schedule by one year, ahead of the 2027 summer fuel season. Additionally, on March 25, 2026, U.S. EPA, in consultation with the U.S. Department of Energy and in accordance with the CAA, issued a waiver regarding the requirements in 40 CFR § 1090.215 to allow the production and distribution of a single national gasoline pool with 9-15% ethanol content at a common RVP standard of 10 psi. Letter, U.S. EPA, Re: National Fuel Waiver to Create Single National Gasoline Pool (March 25, 2026), available at https://www.epa.gov/system/files/documents/2026-03/national-fuel-waiver-governors-3-25-26.pdf. This action will enable the use of fuels containing up to 10% or 15% ethanol. The 10 psi waiver is effective starting May 1, 2026. Engine and fuel standards have changed multiple times since the LRVP fuel requirement was put in place. As a result, the emission reductions associated with LRVP have declined to the point that reductions are inconsequential today. The Kentucky opt-out petition for RFG demonstrated this issue for a more stringent fuel than LRVP gasoline, which had been used in more than 80% of the Louisville area. Additionally, photochemistry for ozone formation has changed significantly since the early 1990s. Following the serious nonattainment classification of the area in 1990, emission reductions were focused solely on VOCs, and as a result, significant reductions were made over the decade that followed. As Kentucky emphasized in its opt-out petition for RFG, recent photochemical modeling indicates that the Louisville area is now more responsive to reductions in oxides of nitrogen (NOx) as opposed to VOCs. Therefore, the LRVP program for Clark and Floyd counties is obsolete, and the removal of this requirement will not interfere with the area's ability to maintain compliance with the ozone standard and will not result in adverse air quality consequences. Accordingly, this rulemaking repeals 326 IAC 13-3-1, 326 IAC 13-3-2, 326 IAC 13-3-3, 326 IAC 13-3-4, 326 IAC 13-3-5, 326 IAC 13-3-6, and 326 IAC 13-3-7 to remove the LRVP control measure for Clark and Floyd counties. The associated interim rule, published on May 13, 2026 (DIN# 20260513-IR-326260150INA), will temporarily suspend these rule sections until this rulemaking becomes final and effective. The implementation costs of the proposed rule are not expected to exceed the threshold set in IC 4-22-2-22.7(c)(6). IC 13-14-9-4 Identification of Restrictions and Requirements Not Imposed under Federal Law No element of the draft rule imposes either a restriction or a requirement on persons to whom the draft rule applies that is not imposed under federal law. Small Business Assistance Information For purposes of IC 4-22-2-28.1, small businesses affected by this rulemaking may contact the Small Business Regulatory Coordinator: For purposes of IC 4-22-2-28.1, the Small Business Ombudsman designated by IC 5-28-17-6 is: Resources available to regulated entities through the small business ombudsman include the ombudsman's duties stated in IC 5-28-17-6, specifically IC 5-28-17-6(9), investigating and attempting to resolve any matter regarding compliance by a small business with a law, rule, or policy administered by a state agency, either as a party to a proceeding or as a mediator. IDEM established a compliance and technical assistance program (CTAP) under IC 13-28-3. The program provides assistance to small businesses and information regarding compliance with environmental regulations. In accordance with IC 13-28-3 and IC 13-28-5, there is a small business assistance program ombudsman to provide a point of contact for small businesses affected by environmental regulations. Information on CTAP and other resources available can be found at: www.in.gov/idem/ctap. The Small Business Assistance Program Ombudsman is: REQUEST FOR PUBLIC COMMENT IDEM is soliciting public comment on the proposed rule. Comments may be submitted in one of the following ways: COMMENT PERIOD DEADLINE All comments must be postmarked or time-stamped not later than September 11, 2026. The rule, Regulatory Analysis, appendices referenced in the Regulatory Analysis, and materials incorporated by reference (if applicable) are on file at the IDEM Rules Development Branch, Office of Legal Counsel, Indiana Government Center North, 100 North Senate Avenue, Indianapolis, Indiana and are available for public inspection. Copies of the rule, Regulatory Analysis, and appendices referenced in the Regulatory Analysis are available at the IDEM Rules Development Branch office. If IDEM does not receive substantive comments during the public comment period or public hearing, the rule may be adopted with text that is the same as or does not substantially differ from the text of the proposed rule published in this notice. PROPOSED RULE Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Billie Franklin, IDEM Rules Development Section Chief, Indiana Government Center North, 100 North Senate Avenue, Room 1315, Indianapolis, IN 46204-2251, (317) 234-0622, Bfrankli@idem.in.gov