# PLACER COUNTY

AIR POLLUTION CONTROL DISTRICT



# STAFF REPORT

RULE 21 4

TRANSFER OF GASOLINE INTO VEHICLE FUEL

TANKS

PROPOSED AMENDMENTS

FEBRUARY 21, 2013PROPOSED AMENDMENT OF

Rule 214 Transfer of Gasoline into Vehicle Fuel Tanks

Staff Report

Executive Summary

The purpose of this amendment of the Placer County Air Pollution District’s (“District”) Rule 214, Transfer

of Gasoline into Vehicle Fuel Tanks

, is to address comments from the U.S. E nvironmental P rotection Agency (EP A ) , to make minor changes which make the rule easier to read, and to standardize the rule into the current rule format used by the District.

Discussion

The control of gasoline emissions from the fueling infrastructure in California is a major program area of the California Air Resources Board (ARB) . State concerns with gasoline vapor emissions are twofold; health risk from breathing benzene which is a component of gasoline, and the release of Reactive Organic Compounds which contribute to ozone formation in the atmosphere. Since the ARB adopt ed

rule s for gasoline emissions in 1974 they have continually promulgat ed new and revised regulations which set the design and operating specifications for equipment used in the gasoline fuel ing infrastructure in the state. The most recent changes to ARB rules, a long with exemptions to the U.S. EPA requirements

on vapor recovery

, were the reason for changes to the District’s rule in 2009.

T he transfer of fuel is categorized into two processes:

**•** Phase I vapor recovery is the transfer of gasoline from a tank truck to the facility storage tank (implemented through District Rule 213, Gasoline Transfer into Stationary Storage Containers );

and

**•** Phase II vapor recovery is the transfer of gasoline from the facility storage tank into a vehicle (implemented through District Rule 214, Transfer of Gasoline into Vehicle Fuel Tanks ).

O n April 9, 2009, the District Board approved resolution #09

- 04 which revised Rule 214, Transfer of

Gasoline into Vehicle Fuel Tanks

. The revisions provided ex empt ions to non

- retail gasoline dispensing

facilities from the vapor recovery requirements in which 95% or more of the vehicles refueled are On

Board Refueling Vapor Recovery (ORVR) equipped . T he exemption also included retail and non

- retail

facilities that refuel Fle xible Fuel Vehicles operating on ethanol

- gasoline blend (E85) that are already equipped with ORVR. (Flexible fuel dispensers serve only Flexible Fuel Vehicles.) These vehicles are

newer and equipped with onboard systems

– ORVR, to collect gasoline vapors d uring refueling.

T he resolution au thorized and directed the Air Pollution Control Officer to submit th e adopted rule for approval as a revision of the State Implementation Plan ( SIP ) . The rule w as sent to the California Air Resources Board, April 29, 2009, to be forwarde d to the U.S. EPA, on September 15, 2009, for inclusion

into the District’s SIP.

In early 2012, the U.S. EPA contacted the District to discuss three areas of concern before the rule could

be r ecommended for approval. The se areas of concern were no t part of the changes adopted

. It should be noted that this rule was last revised on October 19, 1993, and was approved into the SIP on April 30,

1997.

Discussion of Proposed Rule 214 Changes

This dis cussion section is divided into three parts. The first discusses the standardizing of the rule into the current rule format used by the District. The second address es the U.S. EPA’s areas of concern. The third discusses the changes made to the rule for cla rity and simplicity

.Rule 21 4

, TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS Staff Report Board Date: February 21 , 2013

2 of 6

1. Standardized Rule Format

Over the last 15 years, as s taff have rewritten or been required to adopt new D istrict rules, the

rules have been restructured into a new rule format. Rule 214 has been rewritten in this new

format. The rule is divided into four sections, General (100), Definitions (200), Standards (300),

Administrative and Requirements (400). This new rule format makes it easier to read and

understand. Exhibit 1 shows the old rule with notations on where each section is in the new rule format, if it was removed and strikeouts, where specific language was changed

. Exhibit 2 shows the strikeout version of rule in its entirety.

2. U.S. EPA’s Areas of Concern

In discussions with the U.S. EPA, the rule referenced Section 419 54 of the California Health and Safety Code in what was Section A of the old rule format. U.S. EP A staff st a ted that referencing this section does not adequately address three issues that are of concern and which are noted

below. District staff made the fo llowing changes and additions. The reference to the California Health and Safety Code section was removed.

a

. “Rule 214 should cite CCR 94006 as a reference for the vapor recovery system defects”. The following language

, shown in italics

, has been added

.

Section 200 Definitions:

204 M ajor D efect : Any defect that meets the criteria of California Code of Regulations, Title 17, Division III, Chapter 1, Subchapter 8, Article 1, Section 94006 and is listed on CARB’s Vapor Recovery Equipment Defects (VRED) li st or is specified within the Executive Order certifying the vapor recovery system.

205 Minor Defect : A defect in an y gasoline dispensing equipment which renders the equipment out of good working order but which does not constitute a major defect.

Section 300 Standards:

301.2 The equipment is operated and maintained without any major defects.

304 MAINTENANCE AND REPAIRS

304.1 Major Defect: No person shall operate any CARB certified vapor recovery system or any portion thereof, or CARB certified vapor recovery equipment that has a major defect.

304.1.1 Upon the identification of any major defect, the owner or operator shall tag "Out

- of

- Order" all dispensing equipment for which vapor recovery has been impaired.

304.1.2 Except during active repair activity, the “Out of Order” tag on the tagged equipment shall be rendered inoperable and the tag(s) shall not be removed until the equipment has been repaired, replaced, or adjusted as necessary.

304.2 Minor Defect: The owner/operator shall repair or replace any vapor recovery component or equipment having a minor defect within seven days, pursuant to Section 41960.2(e) of the California Health and Safety Code.Rule 21 4

, TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS Staff Report Board Date: February 21 , 2013

3 of 6

b. “Rule 214 should prohibit operation of a Phase II vapor recovery equipment that has liqu id leaks, vapor leaks, fails to pass tests, or contains CCR 94006 defects that substantially impair effectiveness of vapor recovery equipment. Without such language a CARB certified vapor recovery system could operate with leaks or defects.” The following language

, in italics, has been added.

Section 300 Standards :

301.1.1 The vapor recovery system is operating in accordance with the applicable CARB Executive Orders, the manufacturer's specifications, and is maintained to be leak free, vapor tight, and in good working order; and

c. “Rule 214 should require that Phase II systems have a warning posted to prohibit topping

- off, which may cause spillage of gasoline. Such requirement is found under CCR 41960.4 but is not referenced or provided in Rule 214.” The requirement is found under California Health and Safety Code 41960.4, not the CCR. The following language

, in

italics

, has been added.

Section 300 Standards:

302 POS TING OF OPERATING INSTRUCTIONS: Each gasoline dispensing facility utilizing a Phase II system shall conspicuously post operating instructions for the system in the gasoline dispensing area. The instructions shall clearly describe how to fuel vehicles correctly with vapor recovery nozzle s utilized at the station and shall include a warning that repeated attempts to continue dispensing, after the system having indicated that the vehicle fuel tank is full (topping off), is prohibited, and may result in spillage or recirculation of gasoline pursuant to California Health and Safety Code Section 41960.4.

3. Clarity and Simplicity Changes

With the changing of the rule into the new format, staff reviewed all sections and has made the following changes, thereby making the rule more clear and simple.

Sections Added

The following , shown in italics

, were added :

Section 100 General. A new section on applicability was added.

101 APPLICABILITY: The provisions of this rule shall apply to the transfer of gasoline from any stationary storage tank into any motor vehicle fuel tank.

Section 200 Definitions. The following definition was added.

201 CARB CERTIFIED: A vapor recovery system equipment, or any component thereof, for which the CARB has evaluated its performance and issued a valid Executive Order pursuant to California Health and Safety Code Section 41954. Each component of a system that is a separate CARB certified item cannot be replaced with a non

- certified item or other items that are not certified for use with the particular system. Except for qualified repairs, a CARB certified component shall be as supplied by the qualified manufacturer. A rebuilt component shall not be de emed as CARB certified unless the person who rebuilds the component is authorized by CARB to rebuild the designated CARB certified component.Rule 21 4

, TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS Staff Report Board Date: February 21 , 2013

4 of 6

Section 300 Standards. The following sections were added.

303 PROHIBITION OF SALE: A person shall not supply, of fer for sale, sell, install or allow the installation of any new or rebuilt vapor recovery system or any of its components, unless the system and component are CARB certified. Each vapor recovery system and its components shall be clearly and permanently m arked with the qualified manufacturer’s name and model number as certified by CARB. In addition, any qualified manufacturer who rebuilds a component shall also clearly and permanently mark the corresponding information on the component.

Section 400 Admin istrative Requirements. The following section was added.

401 TEST METHODS: Test methods for compliance testing for this rule shall be conducted in accordance with the following test methods.

401.1 Determination of 2 Inch WC Static Pressure Performance of Vapor Recovery Systems of Dispensing Facilities (static pressure (leak decay)) test: CARB Test

Procedure TP

- 201.3, TP

- 201.3B, or TP

- 206.3, as applicable.

401.2 Dynamic back pressure test: CARB Test Procedure TP

- 201.4.

401.3 Determination of Liquid Rem oval of Phase II Vapor Recovery Systems of Dispensing Facilities: CARB Test Procedure TP

- 201.6.

401.4 Gasoline Liquid Retention in Nozzles and Hoses: CARB Test Procedure TP

201.2E.

401.5 Determination of Static Pressure Performance of the (Franklin Fueli ng Systems) Healy Clean Air Separator: CARB Test Procedure in Executive Orders VR

- 201

and VR

- 202 Series and VR

- 203 and VR

- 204 Series and VR

- 209 Series.

401.6 Vapor to Liquid Volume Ratio CARB Test Procedure in Executive Orders VR

- 201

and VR

- 202 Series.

401.7 Nozzle Bag Test Procedure: CARB Test Procedure in Executive Orders VR

- 201

and VR

- 202 Series and VR

- 203 and VR

- 204 Series.

401.8 Veeder

- Root ISD Operability Test: CARB Test Procedure in Executive Orders

VR

- 201 and VR

- 202 Series.

401.9 FFS INCON ISD Operability Test: CARB Test Procedure in Executive Orders

VR

- 201 and VR

- 202 Series.

401.10 Liquid Condensate Trap Compliance Procedure: CARB Test Procedure in

Executive Orders VR

- 201 and VR

- 202 Series and VR

- 203 and VR

- 204 Series.

401.11 Healy VP1000 Vac uum Pump Test: Test Procedure in the Installation and Operation Manual for CARB Executive Orders VR

- 201 and VR

- 202 Series.

401.12 Liquid Removal Test Procedure: Test Procedure in the Executive Orders VR

- 203

and VR

- 204 Series.

401.13 VST ECS; Hydrocarbon Sensor Verification Test Procedure: Test Procedure in

the Executive Orders VR

- 203 and VR

- 204 Series.Rule 21 4

, TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS Staff Report Board Date: February 21 , 2013

5 of 6

401.14 VST ECS; Determination of Processor Activation Pressure: Test Procedure in the

Executive Orders VR

- 203 and VR

- 204 Series.

401.15 Veeder

- Root; Vapor Pressure Sensor Verification Test Procedure: Test

Procedure in the Executive Orders VR

- 203 and VR

- 204 Series.

401.16 Veeder

- Root Vapor Polisher; Operability Test Procedure: Test Procedure in the

Executive Orders VR

- 203 and VR

- 204 Series.

401.17 Veeder

- R oot Vapor Polisher; Hydrocarbon Emissions Verification

Test Procedure: Test Procedure in the Executive Orders VR

- 203 and VR

- 204
Series.

401.18 Hirt VCS 100 Processor with Indicator Panel Operability Test Procedure: Test

Procedure in the Executive Orders V R

- 203 and VR

- 204 Series, VR 205 Series,

and VR

- 207 and VR

- 208 Series.

401.19 Veeder

- Root; ISD Vapor Flow Meter Operability Test Procedure: Test Procedure

in the Executive Orders VR

- 203 and VR

- 204 Series.

401.20 INCON ISD System Vapor Flow Meter Operability Test Procedure Test

Procedure in the Executive Orders VR

- 207 and VR

- 208 Series.

401.21 INCON ISD System Vapor Pressure Sensor Verification Test Procedure Test

Procedure in the Executive Orders VR

- 207 and VR

- 208 Series.

401.22 Only calibrated equipment meeting the calibration range and intervals specified by CARB and the equipment manufacturer shall be used to conduct any performance or reverification test.

401.23 Those vapor recovery systems whose CARB Executive orders specify different

tests to be performed instead of, or in addition to, the referenced test methods, or
which, by their design, preclude the use of the referenced test methods, shall be
tested in accordance with the test procedures specified in the applicable CARB

Executive Order s or their equivalents as approved by the APCO.

401.24 Multiple Test Methods: When more than one test method or set of test
methods is specified for any testing, a violation of any requirement of this rule
established by any one of the specified test me thods or set of test methods shall

constitute a violation of this rule.

Sections Removed

In addition to the removal of the reference California Health and Safety Code Section 41954 as discussed above, the following t wo sections from the old rule wer e remo ved

.

“ Section B: Any gasoline dispensing system subject to this Rule, installed after June 19, 1978 shall comply with the provisions of this Rule at the time of installation. ”

S taff believes that it is un likely that there is a gasoline dispensing system installed before June 19, 1978

, that is not already under permit. If one was found, it would be required to be brought up

to current standards; th erefore this section is not necessary and w as removed.Rule 21 4

, TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS Staff Report Board Date: February 21 , 2013

6 of 6

Section C: Gasoline dispensing equipment used to compl y with the provisions of this Rule shall comply with all applicable safety, fire, weights and measures, and other applicable codes and/or regulations.

The District does not have jurisdiction over another agency’s requirements, thus this section has

been r emoved.

Fiscal Impact

The amendment of Rule 21 4 will not have a fiscal impact on those sites required to install Phase II vapor recovery. The changes that are being made are not going to have to change the way the District has been administering this rule.

Outreach

Agency Outreach: On December 6, 2012, District staff forwarded copies of the rul e to both the U.S. EPA

and CARB for comment. On January 8, 2013, the District received a response from CARB that they had

no comments. The U.S. EPA sent their response on January 11, 2013, comment ing on the test method language in Section 400. District staff has worked with the U.S. EPA staff and believe we have addressed

their comment.

Public Outreach: A public notice was published in the Auburn Journal on January 20, 2013

, 30 days in

advance of the public hearing . Post cards were sent out to affect ed gasoline sources notifying them of the rule changes. The rule along with the draft staff report was available on the District website’s home page.

No publi c comments on the proposed amendment of Rule 214 have been received.

Analysis and Findings

The following Analysis and the subsequent Findings are intended to address the requirements set forth in the Health and Safety Code relating to the adoption of a new or amended District Rule, as well as other State

statutes referenced herein.

Cost

- Effectiveness of a Control Measure

California Health & Safety Code (H&S) Section 40703 requires a District to consider and make public “the

cost

- effect iveness of a cont rol measure”. The changes to this rule are already a requirement by state regulations. Th is does not change how the rule is administered. The changes into the District’s sta ndardized

rule format allowed for simplification in which sections no longer needed were eliminated and clarifying language was added

.

Socioeconomic Impact

H&S Section 40728, in relevant part, requires the Board to consider the socioeconomic impact of any new rule if air quality or emission limits are significantly affected. However, D istricts with a population of less than 500,000 persons are exempted fr om the socioeconomic analysis. In 2011, the population of Placer County was approximately 35 7 ,000 persons. Therefore, the District is not required to consider the socioeconomic impacts of the proposed rule amendment.

California Environmental Quality Act (CEQA)

Proposed amended Rule 21 4 is not an activity that may cause a direct or reasonably foreseeable indirect physical effect in the environment therefore not considered a “project”, a s defined by Section 21065 of the California Public Resource Code and Section 15378(b)(4)&(5) of the CEQA guide lines.Rule 21 4

, TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS Staff Report Board Date: February 21 , 2013

7 of 6

According to the above conclusion, Staff finds that the proposed rule is exempt from the California Environmental Quality Act (CEQA) because 1) it can be seen with certainty that there is no possibility that the activity in question may have a significant adverse effect on the environment (CEQA Guidelines §15061(b ) ( 3)) and 2) it is an action by a regulatory agency for protection of the environment (Class 8 Categorical Exem ption, CEQA Guidelines §15308). A CEQA analysis is therefore not necessary.

Findings

A. Necessity

– The amendment of Rule 21 4 is necessary in order to address and incorporate concerns noted by the U.S. EPA. These cha nges provide clarity and some simplifying that makes the rule easier to understand. It does not change how the District has administered the requirements under this rule.

B. Authority

– California Health and Safety Code, Sections 40702, 41511, and 42303 a re provisions of law that provide the District with the authority to adopt this amended Rule.

C. Clarity

– There is no indication, at this time, that the proposed Rule is written in such a manner that persons affected by the Rule cannot easily understand them.

D. Consistency

– The regulation is in harmony with, and not in conflict with or contradictory to, existing statutes, court decisions, or state or federal regulations.

E. Non

- duplication

– The regulation does not impose the same requirements as an existing state or federal regulation.

F. Reference

– All statutes, court decisions, and other provisions of law used by PCAPCD in interpreting t his regulation are incorporated into this analysi s and this finding by reference.April 9, 2009

Rules and Regulations 214

- 1 Placer County APCD 

### Exhibit 1

RULE 214 TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS

Adopted 06

- 19

- 79

(Amended 04

- 21

- 81, 10

- 19

- 93, 04

- 09

- 09)

A. A person shall not transfer or permit the transfer of gasoline from a stationary storage container subject to the provisions of RULE 213 (3.1) into any motor vehicle fuel tank of greater than 5 gallons capacity unless such transfer is made through a fill nozzle which directs the gasoline vapors dis placed by the transfer through the fill nozzle to a system, CARB, certified for installation by the California Air Resources Board (CARB), that will prevent at least 95 percent by weight of such gasoline vapors from entering the atmosphere. A vapor recover y system must be certified by the CARB pursuant to Section 41954 of the Health and Safety Code.

B. Any gasoline dispensing system subject to this Rule, installed after June 19, 1978 shall comply with the provisions of this Rule at the time of installation.

C. Gasoline dispensing equipment used to comply with the provisions of this Rule shall comply with all applicable safety, fire, weights and measures, and other applicable codes and/or regulations.

D. 1. For the purposes of this Rule, the term "gasoline" is defined as any petroleum distillate having a
Reid vapor pressure of 4 four pounds or greater.

2. For the purposes of this Rule, "motor vehicle" is defined as any vehicle registered with the California Department of Motor Vehicles.

E. Exemptions

1. Transfer of gasoline from any storage tank into a vehicle fuel tank is exempt from Section (A) at any non

- retail motor vehicle fueling facility where 95 percent of vehicles refueled are equipped with Onboard Refueling Vapor Recovery provided that the Phase II vapor recovery system, if previously installed, has been properly removed in a manner approved in writing by the Air Pollution Control Officer.

a. To qualify for this exemption, the gasoline dispenser(s) must be owned and operated by the owner of the vehicle fleet and exclusively dedicated to fueling the

fleet.

b. An operator claiming this exemption shall keep a record of the make, model, model year, and vehicle identification number of all vehicles refueled at the gasoline dispensing operation. These records shall be maintained on the premises for at least five calendar years with a submittal of quarterly records to the Air District in order to demonstrate annual compliance with 95% ORVR. In lieu of refueling records, the Air Pollution Control Officer may approve an alternative method for verifying or ensuring that only vehicles equipped with Onboard Refueling Vapor

Reco very are refueled at such facility. New Section 301

New Section 202

New Section 102.2.1 New Section 102.2.1 Removed Removed

New Section 204

New Section 102.2April 9, 2009

Rules and Regulations 214

- 2 Placer County APCD 2. Transfer of E85 from any storage tank into a Flexible Fuel Vehicle fuel tank at any retail

service station or non

- retail motor vehicle fueling facility is exempt from Section (A). E85

is defined as a petroleum distillate/alcohol blend having a Reid vapor pressure of 4.0 pounds per square inch or greater and meeting the requirements of Title 13 California Code of Regulations, Section 2250 et seq., and as further defined in Title 12 California

Code of Regulations Section 2250(b) and containing a minimum 15 percent of petroleum distillate and a maximum 85 percent of ethyl alcohol.

3. The provisions of Section (A) shall not be subject to non

- retail gasoline dispensing

facilities located in that part of Placer County east of Range 8, Mount Diablo Base and

Meridian. New Section 102.1 New Section 102.3April 9, 2009 Rules and Regulations 214

- 1 Placer County APCD 

### EXHIBIT 2

RULE 214 TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS

Adopted 06

- 19

- 79 (Amended 04

- 21

- 81 , 10

- 19

- 93

, 04

- 09

- 09 )

A. A person shall not transfer or permit the transfer of gasoline from a stationary storage container subject to the provisions of RULE 213( 3.1 ) into any motor vehicle fuel tank of greater than 5 gallons capacity unless such transfer is made through a fill nozzle which directs the gasoline vapors displaced by th e transfer through the fill nozzle to a system, certified for installation by the California Air

Resources Board (CARB) , that will prevent at least 95 percent by weight of such gasoline vapors from entering the atmosphere. A vapor recovery system must be

c ertified by the CARB pursuant to Section 41954 of the Health and Safety Code.

B. Any gasoline dispensing system subject to this Rule, installed after June 19, 1978 shall comply with the provisions of this Rule at the time of installation.

C

. Gasoline dispensing equipment used to comply with the provisions of this Rule shall comply with all applicable safety, fire, weights and measures, and other applicable codes and/or regulations.

D

. 1. For the purposes of this Rule, the term "gasoline" is defined as any petroleum distillate having a Reid vapor pressure of 4 pounds or greater.

2. For the purposes of this Rule, "motor vehicle" is defined as any vehicle registered with the California Department of Motor Vehicles.

E

. Exemptions

1. Transfer of gasoline from any storage tank into a vehicle fuel tank is exempt from Section (A) at any non

- retail motor vehicle fueling facility

where 95 percent of vehicles refueled are equipped with Onboard Refueling Vapor Recovery provided that the Phase II vapor recovery system, if previously installed, has been properly removed in a manner approved in writing by the Air Pollution Control Officer.

a. To qualify for this exemption, the gasoline dispenser(s) must be owned and operated by the owner of the veh icle fleet and exclusively dedicated to fueling the fleet.

b. An operator claiming this exemption shall keep a record of the make, model, model year, and vehicle identification number of all vehiclesApril 9, 2009 Placer County APCD 214

- 2 Rules and Regulations 

### refueled at the gasoline dispensing operation. These recor ds shall be maintained on the premises for at least five calendar years with a submittal of quarterly records to the Air District in order to

demonstrate annual compliance with 95% ORVR. In lieu of refueling records, the Air Pollution Control Officer may a pprove an alternative method for verifying or ensuring that only vehicles equipped with Onboard Refueling Vapor Recovery are refueled at such facility.

2. Transfer of E85 from any storage tank into a Flexible Fuel Vehicle fuel tank at any retail service station or non

- retail motor vehicle fueling facility is exempt from Section (A)

. E85 is defined as a petroleum distillate/alcohol blend having a Reid vapor pressure of 4.0 pounds per square inch or greater and meeting the requirements of Title 13 Californi a Code of Regulations, Section 2250 et seq., and as further defined in Title 12 California Code of Regulations Section 2250(b) and containing a minimum 15 percent of petroleum distillate and a maximum 85 percent of ethyl

alcohol.

3. The provisions of Section (A) shall not be subject to non

- retail gasoline dispensing facilities located in that part of Placer County east of Range 8,

Mount Diablo Base and Meridian.