Newsletter

Presidential Exemption: NESHAP for the Gasoline Distribution Source Category and NSPS for Bulk Gasoline Terminals

To whom it may concern at the U.S. Environmental Protection Agency,

The International Liquid Terminals Association (ILTA) is writing to express that affected sources in the Gasoline Distribution source category, 40 CFR 63 Subparts R and BBBBBB, may have urgent reason to seek Presidential Exemption from certain emission standards and monitoring provisions of these subparts.

Founded in 1974, ILTA represents 70 companies operating liquid terminals in all 50 states and in over 40 countries. Terminals provide essential logistics services, support domestic and international trade, and foster the readiness of the United States armed forces by making fuels and liquid products available throughout the world—products such as petroleum fuels, aviation fuels, petrochemical products, chemicals, asphalt, alternative fuels like ethanol, and beyond. In particular, the U.S. gasoline distribution industry comprises a vast infrastructure network that moves finished gasoline and other liquid fuels from petroleum refineries to end markets, including government, commercial and industrial facilities, and retail fueling stations.

A strong gasoline distribution industry delivers affordable energy to America and ensures liquid fuels are available wherever they are needed.

Many of the same infrastructure assets that deliver gasoline also deliver jet fuel to military and commercial air facilities, and diesel to America’s farms, food producers and manufacturing facilities. Reliable access to gasoline and other fuels is crucial for maintaining operational readiness and ensuring military bases can function independently, especially in times of crisis. Our national security relies on the services and logistical support that the bulk liquid storage industry brings to the nation’s energy supply chain.

On May 8, 2024, EPA issued a final rule entitled National Emission Standards for Hazardous Air Pollutants: Gasoline Distribution Technology Reviews and New Source Performance Standards Review for Bulk Gasoline Terminals (89 Fed. Reg. 39304) (May 8, 2024) (“Gasoline Distribution Rule”). This rulemaking includes significant changes to two National Emission Standards for Hazardous Air Pollutants (NESHAP) for the gasoline distribution industry, viz., Subpart R for major sources of Hazardous Air Pollutants (HAP) and Subpart BBBBBB for area sources. The rulemaking also comprises one New Source Performance Standard (NSPS), Subpart XXa, for gasoline loading racks and associated equipment at the bulk gasoline terminal segment of this industry. The NESHAP subparts rely on the NSPS Subpart XXa provisions for emissions monitoring requirements for loading racks.

Download a copy of the full letter below.

President Donald Trump clearly stated the importance of energy to our nation’s prosperity through several executive orders, including Executive Order 14154 (Unleashing American Energy) and Executive Order 14156 (Declaring a National Energy Emergency). Liquid terminals in the United States are exactly the type of infrastructure that will help deliver American energy (and other critical materials) to the marketplace and support the goal articulated in EO 14154 of restoring American prosperity.

The following are a few examples of how ILTA members’ operations can support the vision for energy security and economic growth.

• EO 14154 – “It is the policy of the United States to protect the United States’ economic and national security and military preparedness by ensuring that an abundant supply of reliable energy is readily accessible in every State and territory of the Nation.”

ILTA Perspective: ILTA members operate over 2,000 terminals across all 50 states, providing critical infrastructure for transporting energy, agricultural goods, chemicals, and more. These materials can be raw inputs essential for U.S. manufacturing or finished goods destined for domestic consumption or export. Simply put, you cannot make an abundant supply of reliable energy available in all 50 states without a robust terminal network.

• EO 14156 – “The integrity and expansion of our Nation’s energy infrastructure—from coast to coast—is an immediate and pressing priority for the protection of the United States’ national and economic security.”

ILTA Perspective: ILTA members can help support the integrity and expansion of the nation’s energy infrastructure by providing more capacity to store and distribute liquid commodities in more locations. We look forward to working with the Trump administration to ensure that regulatory requirements imposed on terminals are aligned with the integrity.

• EO 14156 – “The United States’ insufficient energy production, transportation, refining, and generation constitutes an unusual and extraordinary threat to our Nation’s economy, national security, and foreign policy.”

ILTA Perspective: Liquid terminals form an integral part of the “circulatory system” of America’s economy, without which producers and consumers cannot efficiently be connected. The United States needs a resilient terminal industry to ensure there is an unencumbered flow of liquid commodities, including crude oil to refineries, finished gasoline to the market, and petrochemicals to countless American manufacturers. We believe our nation’s terminals play a pivotal role in alleviating threats to the nation’s economy, national security, and foreign policy, consistent with the President’s EO 14156.

Download a copy of the full letter below.

California Air Resource Board:

The International Liquid Terminals Association (ILTA) appreciates the opportunity to provide comments on the California Air Resource Board’s (“CARB”) California Corporate Greenhouse Gas Reporting Program, and writes specifically in response to CARB’s implementation question(1)(d):

Should entities that sell energy, or other goods and services, into California through a separate market, like the energy imbalance market or extended day ahead market, be covered?

We write to strongly discourage CARB from including such entities under the definition of entities that “do[] business in California” as including them raises serious constitutional concerns. Specifically, a definition that included these entities would create significant Due Process concerns, as well as violate the Commerce Clause and notions of federalism by attempting to subject out-of-state entities to this law based on actions that have no or at best only a theoretical nexus to the State of California. CARB must adopt a reasonable definition of “doing business” in California in order to provide a clear and workable definition to regulated entities and to ensure its climate disclosure implementation rules are on sound legal footing.

Attached below is a copy of the full comments.

Simone currently serves as the Air Compliance Manager for Hartree Partners, where she brings over a decade of experience in the terminal industry, specifically focusing on environmental compliance. ILTA welcomes Simone as the new co-chair of the Environment Subcommittee, and we look forward to her insightful contributions. 

Recently, we had the privilege of interviewing Simone to discuss her impact on the industry and involvement with ILTA.

The future investments and development of the renewable fuels sector face some uncertainty. Earlier this year, the Department of the Treasury (Treasury) released guidance on the Clean Fuels Production Credit (Sec. 45Z), a tax credit that consolidates and replaces previous credits for biodiesel, renewable diesel, alternative fuels, and sustainable aviation fuel. The recently issued guidance marks an important step toward implementing the credit and supporting the future development of renewable fuels markets.