SACRAMENTO METROPOLITAN 

AIR QUALITY MANAGEMENT DISTRICT 

STAFF REPORT 

RULE 448 – GASOLINE TRANSFER INTO STATIONARY STORAGE CONTAINERS 

RULE 449 – TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS 

January 23, 2009 

Prepared by: Jeffery Yang 

Assistant Air Quality Engineer

Reviewed by: Kevin J. Williams, Ph.D. 

 Program Coordinator 

 Aleta Kennard 

Program Supervisor

Approved by: Brigette Tollstrup 

Division Manager 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 2 

BACKGROUND

Ground level ozone is a secondary pollutant formed from photochemical reactions of nitrogen 

oxides (NOx) and volatile organic compounds (VOCs) in the presence of sunlight. Ozone is a 

strong irritant that adversely affects human health and damages crops and other environmental 

resources. As documented by the U.S. Environmental Protection Agency (EPA) in the most 

recent Criteria Document for ozone (U.S. EPA 2006), both short-term and long-term exposure to 

ozone can irritate and damage the human respiratory system, resulting in: 

• decreased lung function; 

• development and aggravation of asthma; 

• increased risk of cardiovascular problems such as heart attacks and strokes; 

• increased hospitalizations and emergency room visits; and 

• premature deaths. 

The District is currently designated as a nonattainment area for both the state and federal ozone 

standards. Since VOCs are a precursor to ozone, one of the strategies to control ozone 

pollution is to reduce VOC emissions from existing stationary sources. 

Gasoline transfer operations emit VOC when gasoline vapor in the vessel being filled is 

displaced by the liquid gasoline. Gasoline vapors also contain benzene and other toxic 

chemicals. Rule 448, Gasoline Transfer into Stationary Storage Containers, controls VOC 

emissions from the transfer of gasoline from delivery vessels into stationary storage tanks or 

mobile fuelers (Phase I transfers). Rule 449, Transfer of Gasoline into Vehicle Fuel Tanks, 

controls VOC emissions from the transfer of gasoline from stationary storage tanks and mobile 

fuelers into vehicle fuel tanks (Phase II transfers). 

Rules 448 and 449 were first adopted by the District on February 5, 1975. Rule 448 was last 

amended on February 2, 1995, and Rule 449 was last amended on September 26, 2002. 

These latest amended rules have been incorporated into the State Implementation Plan. 

Staff is proposing to amend Rules 448 and 449 to: 

• Maintain consistency with state regulations for vapor recovery systems, including the 

Enhanced Vapor Recovery (EVR) regulations adopted by the California Air Resources 

Board (CARB); 

• Incorporate “all feasible measure” requirements from rules adopted by the San Joaquin 

Valley Unified Air Pollution Control District (SJVUAPCD) and the South Coast Air Quality 

Management District (SCAQMD); 

• Provide an exemption from Phase II vapor recovery requirements for the dispensing of 

E85, a petroleum distillate/alcohol blend, into flexible fuel vehicles; and 

• Provide an exemption from Phase II vapor recovery requirements for non-retail gasoline 

dispensing facilities in which 100% of the vehicles refueled are equipped with Onboard 

Refueling Vapor Recovery (ORVR). 

LEGAL MANDATES

Federal Mandates: The District is designated as a nonattainment area for the federal 8-hour 

ozone standard (69 FR 23858, April 30, 2004). Section 182(b)(3) of the federal Clean Air Act 

requires the District to require vapor recovery systems on gasoline dispensing operations. 

Sections 172(c)(1) and 182(b)(2) require the District to adopt Reasonably Available Control 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 3 

Technology (RACT) for ozone precursors, including RACT for all major sources of VOC and all 

source categories for which EPA has promulgated a Control Techniques Guidelines (CTG) 

document. EPA promulgated a CTG for gasoline service stations in November, 1975. 

Rules 448 and 449 satisfy the federal mandates for vapor recovery and RACT. 

State Mandates:

Serious Nonattainment Plan Requirements: The District is designated as a serious 

nonattainment area for the state ozone standard. The California Clean Air Act requires areas 

with this designation to adopt control measures required in sections 40913, 40914, and 40919 

of the California Health and Safety Code (HSC): 

• HSC Section 40913 requires districts to develop a plan to achieve California’s ambient 

air quality standards by the earliest practicable date. 

• HSC Section 40914(b)(2) requires every nonattainment district which cannot achieve a 

reduction of 5% or more per year in district wide emissions to include in their state 

attainment plans “every feasible measure” to reduce the emissions of nonattainment 

pollutants and their precursors. SJVUAPCD Rules 4621 and 4622 and SCAQMD Rule 

461 were reviewed for “feasible measures.” The proposed amendments will be 

equivalent to the requirements in SJVUAPCD Rule 4621 and 4622 and SCAQMD Rule 

461. 

• HSC Section 40919(a)(3) requires districts with serious nonattainment for ozone to 

adopt Best Available Retrofit Control Technology (BARCT) for all existing permitted 

sources. The proposed amendments will meet the BARCT requirement. 

Transport Mitigation Emission Control Requirements: Title 17, Section 70600 of the California 

Code of Regulations (CCR) requires that districts within the areas of origin of transported air 

pollutants, as identified in section 70500(c), include sufficient emission control measures 

(including “all feasible measures” and BARCT) in their attainment plans for ozone to mitigate the 

impact of pollution sources within their jurisdictions on ozone concentrations in downwind areas 

commensurate with the level of contribution. An upwind district shall comply with the transport 

mitigation planning and implementation requirements set forth in this section regardless of its 

attainment status, unless the upwind district complies with the requirements of section 70601. 

Benzene Airborne Toxic Control Measure (ATCM) for Retail Service Stations: Title 17 CCR 

Section 93101 requires CARB-certified Phase I and Phase II vapor recovery systems at retail 

service stations. The proposed amendments are in compliance with the Benzene ATCM 

because the ORVR exemption is only applicable to non-retail gasoline dispensing facilities. 

CARB Executive Order G-70-212 states that Phase II vapor recovery systems are not yet 

certified for the dispensing of E85, and that E85 facilities may continue to operate without Phase 

II vapor recovery until such time as CARB may certify Phase II vapor recovery systems for use 

with E85. The proposed E85 exemption for Rule 449 will also expire when CARB certifies a 

Phase II vapor recovery system for the dispensing of E85. 

The proposed amendments are based on all feasible control measures and BARCT 

requirements, and therefore comply with the state mandates. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 4 

ENHANCED VAPOR RECOVERY (EVR) 

State law (California Health and Safety Code, Division 26, Part 4, Chapter 3, Article 5) requires 

control of gasoline vapor emissions. Section 41954 requires CARB to adopt performance 

standards for certifying vapor recovery systems. Section 41954(g)(1) prohibits local districts 

from establishing performance standards stricter than those adopted by CARB. 

CARB first adopted performance standards for vapor recovery systems in 1975. On April 1, 

2001, CARB’s regulation to implement EVR (Title 17, California Code of Regulations, Section 

94011) took effect. The deadline for Phase I vapor recovery systems to be certified to the new 

standards was April 1, 2005. By April 1, 2009, all Phase II vapor recovery systems at gasoline 

dispensing facilities with underground storage tanks must meet the new standards. 

An EVR regulation (Title 17, California Code of Regulations, Section 94016) for gasoline 

dispensing facilities with aboveground storage tanks took effect on July 12, 2008. Facilities with 

aboveground storage tanks will have until July 12, 2012 to meet these new requirements. 

Staff’s proposed amendments are consistent with the EVR regulations and associated 

certification and test procedures. 

FEDERAL AND STATE GUIDANCE ON PHASE II EXEMPTIONS 

EPA began phasing in Onboard Refueling Vapor Recovery (ORVR) requirements for new light 

duty vehicles (passenger cars), light duty trucks, medium duty vehicles, and light heavy duty 

trucks in 1998 (40 CFR Part 86). By 2000, 100% of the new passenger cars sold were required 

to be equipped with ORVR. Phase-in of ORVR was completed by 2003 for new light duty trucks 

and by 2006 for medium duty vehicles and light heavy duty trucks. 

On December 12, 2006, EPA issued a memorandum (included in Appendix C) to provide 

guidance concerning the removal of Phase II vapor recovery systems in situations where 

widespread use of ORVR is demonstrated. Under Section 202(a)(6) of the federal Clean Air 

Act, EPA may waive the vapor recovery requirements in areas where the agency has 

determined that ORVR is in widespread use throughout the motor vehicle fleet. Specifically, the 

guidance suggests that EPA may approve the removal of Phase II vapor recovery requirements 

in the following circumstances: 

• Initial fueling of new vehicles at automobile assembly plants where 95% or more of the 

vehicle are equipped with ORVR 

• Refueling of rental cars at rental car facilities, where 95% or more of the vehicles are 

equipped with ORVR 

• Refueling of flexible fuel vehicles at E85 dispensing pumps 

A follow-up memorandum (included in Appendix C), issued by EPA on November 28, 2007, 

expanded the circumstances under which Phase II vapor recovery requirements may be 

removed to include corporate or commercial fleets where 95% or more of the vehicles are 

equipped with ORVR. In addition, CARB Executive Officer James Goldstene sent a letter 

(included in Appendix C) on February 20, 2008, to all California districts, encouraging them to 

revise their vapor recovery rules to incorporate exemptions for ORVR fleets and E85. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 5 

A vapor recovery system that meets the Phase II standards and specifications, including InStation Diagnostics, was not certified for use on E85 dispensing facilities by the operative date 

of the EVR regulations. On July 16, 2008, CARB issued Executive Order G-70-212 (included in 

Appendix C), which allows E85 dispensing facilities to continue to operate without Phase II 

vapor recovery until such time as CARB may certify Phase II vapor recovery systems for use 

with E85. This executive order was based on EPA’s guidance letters authorizing districts to 

amend their rules to exempt E85 because these gasoline dispensing facilities are expected to 

refuel fleets where 95% or more of the vehicles are equipped with ORVR. 

SUMMARY OF RULE AMENDMENTS

The significant proposed amendments are summarized below. Other changes are proposed to 

maintain consistency with state regulations and certification procedures. A detailed list of 

changes, including amendments proposed to be consistent with State regulations, is 

incorporated in Appendix A. 

Rule 448

Currently, Rule 448 requires a CARB-certified vapor recovery system to be used when 

transferring gasoline into a stationary storage container with a capacity of 250 gallons or more. 

The proposed amendments will lower the applicability of this requirement to include transfer of 

gasoline into a mobile fueler with a capacity of 120 gallons or more, and expand the 

requirements to include vapor recovery for “switch loading.” Switch loading is the transfer of 

diesel fuel into a container that previously contained gasoline, a process that expels gasoline 

vapor from the container being filled. The expanded vapor recovery requirements are 

consistent with feasible requirements in SJVUAPCD Rule 4621 and SCAQMD Rule 461. 

Staff is proposing to divide the vapor recovery requirements of Section 301 into three 

subsections to incorporate requirements that are unique to underground storage tanks, 

aboveground storage tanks, and mobile fuelers, and to establish more specific requirements for 

gasoline delivery vessels. The proposed requirements are consistent with feasible 

requirements in SJVUAPCD Rule 4621 and SCAQMD Rule 461, and are consistent with current 

CARB certification requirements. 

Staff is proposing to require the use of a vapor recovery system during “pump-out,” which is 

when gasoline is transferred out of a stationary tank or mobile fueler into a stationary tank or 

delivery vessel. This requirement closes a loophole that exists in the current versions of Rules 

448 and 449, and is consistent with SCAQMD Rule 461. Staff is also proposing to implement 

work practices that will assist in reducing excess emissions from spillage when gasoline is 

pumped out of vehicle fuel tanks. 

Currently, Rule 448 does not require the owner/operator of gasoline dispensing facilities to 

perform maintenance inspections on the Phase I vapor recovery system. Staff is proposing to 

implement an inspection program for the owner/operator of the dispensing facility to inspect the 

Phase I system after receiving a fuel delivery. Should multiple deliveries be made to a given 

tank in a single day, the owner/operator is only required to inspect a storage tank’s Phase I 

system once per day. Staff believes the Phase I systems are most susceptible to damage when 

receiving deliveries. The list of items to be inspected is consistent with SDAPCD Rule 61.3.1, 

SJVUAPCD Rule 4621, and SCAQMD Rule 461. The inspection frequency most closely 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 6 

matches SDAPCD Rule 61.3.1, which requires inspections at frequencies ranging from weekly 

to monthly. 

The proposed amendments include a requirement that 3 months after the date of adoption, 

installers/contractors who install or alter vapor recovery systems must be certified by the 

International Code Council (ICC) for Vapor Recovery System Installation and Repair, and if 

required by the Executive Order, certified by the system manufacturer; maintain the valid ICC 

certification; and have on site proof of all required certifications. This requirement is consistent 

with SJVUAPCD Rule 4621 and SCAQMD Rule 461 

The ICC certification test for Vapor Recovery System Testing and Repair is not yet available. 

Staff is proposing a requirement that 3 months after the certification test becomes available, 

testers who perform required performance or recertification tests be certified by the International 

Code Council (ICC) for Vapor Recovery System Testing and Repair. Staff is also proposing 

that, if required by the Executive Order, testers be certified by the system manufacturer; 

maintain the valid ICC certification; and have on site proof of all required certifications. This 

requirement is consistent with SJVUAPCD Rule 4621 and SCAQMD Rule 461. 

Staff also included a list of required performance and reverification tests, unless other tests are 

specified in the applicable CARB Executive Orders. This list is consistent with SJVUAPCD Rule 

4621 and SCAQMD Rule 461. Staff is proposing that reverification tests be performed annually, 

or more frequently as required by the applicable CARB Executive Order. Most facilities are 

already performing these tests annually as a permit requirement. However, approximately 20 

facilities with aboveground storage tanks and only Phase I vapor recovery systems are 

expected to be impacted by this requirement. 

Lastly, the amendments for Rule 448 include a recordkeeping requirement for performance and 

reverification tests results and maintenance inspection and repair records. Owner/operators are 

to retain records onsite for a period not less than 3 years (5 years for Title V sources) and make 

them available for review upon request. This requirement is consistent with Rule 449, SDAPCD 

Rule 61.3.1, SJVUAPCD Rule 4621, and SCAQMD Rule 461. 

Rule 449

Staff is proposing two exemptions from the Phase II vapor recovery requirements. First, the 

dispensing of E85 would be exempt from the rule until CARB certifies Phase II vapor recovery 

systems for dispensing E85. This exemption is consistent with CARB Executive Order G-70-

212, as well as federal guidance. 

Second, the dispensing of gasoline for non-retail facilities where 100% of the vehicles refueled 

are equipped with ORVR would be exempt from the rule requirements, provided that the owner 

or operator meets recordkeeping requirements and submits an application pursuant to Rule 

201- GENERAL PERMIT REQUIREMENTS for an Authority to Construct and Permit to Operate 

the gasoline dispensing facility and agrees to comply with the following conditions: 

• No fuel shall be dispensed into a vehicle that is not owned or under direct control of the 

operator, except for a vehicle being used in an emergency; 

• No fuel shall be dispensed into a vehicle not equipped with an ORVR system, except for 

a vehicle being used in an emergency. 

• The gasoline dispensing facility shall use nozzles that are part of a CARB certified vapor 

recovery system, except that the vapor return line shall be sealed off. This ensures that 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 7 

the nozzles meet CARB performance standards for liquid retention, nozzle spitting, and 

post-refueling drips. 

Although the EPA guidance allows exemptions for as low as 95%, there is a potential emissions 

increase for the 5% vehicles that are not equipped with ORVR. Therefore, the proposed 100% 

ORVR exemption was chosen. This level is also consistent with the exemptions in SJVUAPCD 

Rule 4622 and SCAQMD Rule 461. 

An additional exemption included in the amendments provides owners/operators the flexibility to 

perform minor, routine work on Phase II components, such as replacing any defective nozzles, 

hoses and breakaways with new or CARB certified re-manufactured components of the same 

make and model, or alternatives specifically identified in the latest applicable CARB Executive 

Order, without being ICC certified as an installer/contractor. 

Currently, Rule 449 requires a CARB-certified vapor recovery system to be used when 

transferring gasoline from a storage container with a capacity of 250 gallons or more into a 

vehicle fuel tank with a capacity of 5 gallons or more. The proposed amendments will lower the 

applicability of this requirement to include transfer of gasoline from a mobile fueler with a 

capacity of 120 gallons or more into a vehicle fuel tank with a capacity of 5 gallons or more. 

This requirement is consistent with feasible requirements in SJVUAPCD Rule 4622 and 

SCAQMD Rule 461. All mobile fuelers currently operating within the District are in compliance 

with the proposed requirement. 

Under the current rule, operators of retail gasoline dispensing facilities must post a sign warning 

patrons that topping off vehicle fuel tanks may result in spillage or recirculation of gasoline. 

Staff proposes to prohibit topping off. This prohibition conforms to EPA Region IX vapor 

recovery guidelines. 

In the current version of Rule 449, the frequency required for gasoline dispensing facilities to 

perform reverification tests is every six or twelve months, depending on the six-month average 

of actual monthly gasoline throughput. Staff believes that this provision is no longer necessary 

due to the improved performance and reliability of Phase II systems as a result of CARB’s 

Enhanced Vapor Recovery Program. Therefore, Staff is proposing to amend this provision so 

that the testing frequency will be annually, or more frequently as required by the applicable 

CARB Executive Order. BAAQMD Rule 8-7 and SDAPCD Rule 61.4.1 require only annual 

testing. SJVUAPCD Rule 4622 requires annual testing except for air-to-liquid ratio or volumeto-liquid ratio on a system with bellows-less nozzles, which is required every six months. (Note: 

The District no longer has any gasoline dispensing facilities using bellows-less nozzles. In 

addition, new Phase II EVR systems certified pursuant to CP-201 are required to have nozzles 

with bellows or mini-boots that form a face seal against the fill pipe.) 

The proposed amendments include a requirement that effective 3 months after the date of 

adoption, installers/contractors who install or alter vapor recovery systems must be certified by 

the International Code Council (ICC) for Vapor Recovery System Installation and Repair, and if 

required by the Executive Order, certified by the system manufacturer; maintain the valid ICC 

certification; and have on site proof of all required certifications. This requirement is consistent 

with SJVUAPCD Rule 4622 and SCAQMD Rule 461. 

The ICC certification test for Vapor Recovery System Testing and Repair is not yet available. 

Staff is proposing a requirement that 3 months after the certification test becomes available, 

testers who perform required performance or recertification tests be certified by the International 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 8 

Code Council (ICC) for Vapor Recovery System Testing and Repair. Staff is also proposing 

that, if required by the Executive Order, testers be certified by the system manufacturer; 

maintain the valid ICC certification; and have on site proof of all required certifications. This 

requirement is consistent with SJVUAPCD Rule 4622 and SCAQMD Rule 461. 

EMISSIONS IMPACT

The 2008 emission inventory for gasoline dispensing operations in Sacramento County, 

including Phase I and Phase II emissions, is shown in the following table. 

EIC Code Description 2008 Annual VOC Emissions 

(tons per year) 

330-374-1100-0000 Gasoline Dispensing Tanks – 

Working Losses 

44 

330-378-1100-0000 Vehicle Refueling – Vapor 

Displacement Losses, Gasoline 

280 

330-376-1100-0000 Gasoline Dispensing Tanks – 

Breathing Losses 

34 

330-380-1100-0000 Vehicle Refueling – Spillage, Gasoline 58 

Total: 416 

The emission inventory takes into account the effect of controls that are already in place. 

Existing vapor recovery standards have reduced VOC emissions by 3,360 tons per year in the 

2008 inventory. These rules achieved the second highest VOC benefit when compared to all 

other district rules (Rule 447, Organic Liquid Loading is the highest). These rules also reduce 

the emissions of benzene and other toxic air contaminants. Even after controls, this is the third 

highest VOC emissions category subject to District control (behind solvents and architectural 

coatings) and is one of the top ten VOC sources in the Sacramento region. 

The proposed amendments improve the maintenance of vapor recovery systems and improve 

the enforceability of existing provisions. There are no additional emission reductions claimed 

from the amendments to Rules 448 and 449 that are proposed for consistency with CARB EVR 

regulations or to improve maintenance and enforceability. No excess emissions are expected 

from the proposed exemptions in Rule 449 for dispensing into 100% ORVR vehicles and E85 

dispensing because ORVR systems on such vehicles provide emission reductions equivalent to 

Phase II vapor recovery. An analysis by NESCAUM (see reference 9) shows that Phase II 

vapor recovery is slightly less effective than ORVR alone. 

SOCIOECONOMIC IMPACT ANALYSIS 

California Health and Safety Code Section 40728.5 requires a district to perform an assessment 

of socioeconomic impacts before adopting, amending or repealing a rule that will significantly 

affect air quality or emission limitations. The District Board is required to actively consider the 

socioeconomic impacts of the proposal and make a good faith effort to minimize adverse 

socioeconomic impacts. HSC Section 40728.5 defines “socioeconomic impact” to mean the 

following: 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 9 

1. The type of industry or business, including small business, affected by the 

proposed rule or rule amendments. 

2. The impact of the proposed rule or rule amendments on employment and the 

economy of the region. 

3. The range of probable costs, including costs to industry or business, including 

small business. 

4. The availability and cost-effectiveness of alternatives to the proposed rule or rule 

amendments. 

5. The emission reduction potential of the rule or regulation. 

6. The necessity of adopting, amending, or repealing the rule or regulation to attain 

state and federal ambient air standards. 

Type of industries or business, including small business, affected by the rule 

amendments: The rule amendments apply to all gasoline dispensing facilities that are required 

to have vapor recovery systems. There are approximately 546 permitted retail and non-retail 

facilities in the District. Installation and maintenance contractors are also affected by these 

amendments. Small businesses include installers/contractors and testers. There are 

approximately 140 contractors for Healy and VST and three contracting firms for VeederRoot, in 

Sacramento County and the surrounding areas. 

Impact of rule amendments on employment and the economy in the District: The 

proposed amendments to the rule are not expected to have any impact on employment or 

economy in the District. EVR upgrades of Phase II vapor recovery systems are already 

required by CARB regulations (17 CCR 94011). 

Range of probable costs of rule amendments: The proposed amendments for both Rules 

448 and 449 include requirements for installers/contractors and testers to obtain certifications 

from the International Code Council, which will cost these parties approximately $75 every two 

years. Many are already certified as a result of certification requirements in other districts. 

Gas station owners are already required to perform daily maintenance inspections of Phase II 

systems under Rule 449. Staff is proposing an additional inspection of Phase I items after 

receiving a fuel delivery under Rule 448. It is estimated that such inspections will require an 

additional 10 minutes per inspection per facility. Assuming a labor rate of $10 per hour, the 

additional cost per facility for performing these inspections is estimated to be $1.67 per 

inspection ($87 per year). Typically, these inspections are already being performed and 

recorded in conjunction with the delivery truck driver, so the cost impact should be minimal. 

Over 96% of gasoline dispensing facilities in the District are equipped with both Phase I and 

Phase II Vapor Recovery Systems, and are already subject to testing and recordkeeping 

requirements under Rule 449. There are 19 facilities that are exempt from Phase II Vapor 

Recovery under Rule 449. Under the proposed amendments to Rule 448, these facilities will be 

required to perform annual reverification tests and maintain records of inspections, tests, 

maintenance, and repairs. It is assumed that 0.5 hours per week will be required to maintain 

the records. At a labor rate of $10 per hour, the additional cost per facility for maintaining the 

records is estimated to be $260 per year. The costs to perform annual reverification tests are 

estimated to be $600. 

Although the proposed amendments will lower the applicability threshold for mobile fuelers to 

units with a capacity of 120 gallons or more, the one mobile fueler within the District is already in 

compliance with the proposed requirements and will not incur any additional costs. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 10 

The proposed exemptions in Rule 449 for E85 dispensing and dispensing to 100% ORVRequipped vehicles will result in a net cost savings to facilities that can use these exemptions to 

avoid the cost of installing and maintaining Phase II vapor recovery systems. ORVR-exempt 

facilities will incur a fee of $634 to modify their permits. The replacement of nozzles costs from 

$1,600 to $9,600. The savings from avoiding an EVR upgrade ranges from $17,000 to $85,000 

including added savings from reduced testing discussed below. 

Currently, Rule 449 requires gasoline dispensing facilities to perform reverification tests every 

six months if the six month average monthly gasoline throughput is 100,000 gallons or more. 

Under the proposed amendment, these facilities will be required to test annually, unless more 

frequent testing is required by the CARB Executive Order. The cost savings of reducing the 

frequency of reverification tests from every six months to annual, per facility, ranges from 

$1,100 to $4,500 for tester fees and $1,268 for District source test fees. 

The costs and cost savings are presented in the following table. 

Item Costs 

Phase I only, aboveground storage tanks 

Annual Phase I testing $600/yr 

Maintenance Records $260/yr 

Phase I inspections $87/yr 

District Source Test Fee $1,268/yr 

Facilities using ORVR exemption 

Permit modification $634 

EVR certified nozzles $1,600 - $9,600 

Phase I inspections $87/yr 

Phase II EVR upgrade $17,000 - $85,000 savings 

Phase II annual testing $1,100 - $4,500/yr savings 

District Source Test Fee $1,268/yr savings 

Facilities using E85 exemption 

Phase I inspections $87/yr 

Phase II EVR upgrade $17,000 - $85,000 savings 

Phase II annual testing $1,100 - $4,500/yr savings 

District Source Test Fee $1,268/yr savings 

Facilities ≥ 100,000 gal/month throughput 

Phase I inspections $87/yr 

Phase II annual testing $1,100 - $4,500/yr savings 

District Source Test Fee $1,268/yr savings 

Installers/contractors and testers 

ICC certification $75 every two years 

Availability and cost-effectiveness of alternatives: Although there are fewer constraints on 

the proposed exemptions, monitoring, and recordkeeping requirements, Staff cannot include 

more stringent vapor recovery standards than those being proposed because HSC Section 

41954(g)(1) prevents districts from adopting or enforcing performance standards for vapor 

recovery systems that are stricter than those adopted by CARB. The adoption of less stringent 

vapor recovery standards would conflict with the state Benzene ATCM for Retail Service 

Stations (17 CCR 93101). 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 11 

Staff is constrained in the selection of alternatives by two additional considerations. First, Rules 

448 and 449 have been approved by EPA into the State Implementation Plan (SIP). Second, 

Staff has determined that adoption of requirements less stringent than CARB’s EVR regulations 

would not satisfy the District’s obligations to implement RACT under Clean Air Act Sections 

172(c)(1) and 182(b)(2), and to implement BARCT under HSC Section 40919(a)(4). 

One alternative to the proposed amendments is not to amend the current rules or not to adopt 

specific provisions. If this alternative were selected, the rule would not include measures 

(demonstrated to be feasible in other districts) to improve compliance and reduce emissions. 

HSC Section 40914(b)(2) requires the District to adopt “all feasible measures.” The proposed 

amendments include feasible measures that have been adopted by the SCAQMD, SJVUAPCD, 

and SDAPCD. 

In Rule 448, these feasible measures include: expanded applicability to mobile fuelers with a 

capacity of 120 gallons or more; separate requirements for underground tanks, aboveground 

tanks, and mobile fuelers; more specific requirements for delivery vessels; prohibition of sale; 

maintenance inspections; and ICC certification of installers/contractors and testers. In Rule 

449, these feasible measures include: expanded applicability to mobile fuelers with a capacity of 

120 gallons or more; prohibition of sale; and ICC certification of installers/contractors and 

testers. The additional costs to affected parties are minimal, as discussed in the preceding 

section, Range of Probable Costs. 

The proposed ORVR exemption in Rule 449 is for non-retail dispensing facilities in which 100% 

of the vehicles being refueled are equipped with ORVR, consistent with the South Coast and 

San Joaquin district rules. Although EPA guidance allows exemptions for dispensing facilities in 

which 95% or more of the vehicles are equipped with ORVR, selection of the 95% alternative 

could potentially increase overall emissions. A simplified analysis shows that the refueling 

emissions from a facility in which 5% of the vehicles are not ORVR-equipped would be 95% 

greater if Phase II controls are not used than for the same facility using Phase II controls. 

Staff has proposed a requirement in Rule 448 to prohibit the use of equipment with major 

defects listed on the VRED list. This requirement conforms to EPA Region IX guidelines, and if 

it were not included, would result in a disapproval of the rule when it is submitted for inclusion in 

the SIP. 

Emission reduction potential: The proposed amendments improve the maintenance of vapor 

recovery systems and improve the enforceability of existing provisions. There are no additional 

emission reductions claimed with the amendments to Rules 448 and 449. No excess emissions 

are expected from the proposed exemptions in Rule 449 for dispensing into 100% ORVR 

vehicles and E85 dispensing because ORVR systems on such vehicles provide emission 

reductions equivalent to Phase II vapor recovery 

Necessity of adopting, amending, or repealing: Staff finds that the proposed amendments to 

the gasoline dispensing rules are necessary to: 

• Maintain consistency with state regulations for vapor recovery systems, including the 

Enhanced Vapor Recovery regulations adopted by the California Air Resources Board 

(CARB); 

• Incorporate “all feasible measure” requirements from rules adopted by the San Joaquin 

Valley Unified Air Pollution Control District (SJVUAPCD) and the South Coast Air Quality 

Management District (SCAQMD); 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 12 

• Provide an exemption from Phase II vapor recovery requirements for the dispensing of 

E85, a petroleum distillate/alcohol blend, into flexible fuel vehicles; and 

• Provide an exemption from Phase II vapor recovery requirements for non-retail gasoline 

dispensing facilities in which 100% of the vehicles refueled are equipped with Onboard 

Refueling Vapor Recovery (ORVR). 

ENVIRONMENTAL REVIEW AND COMPLIANCE

Staff finds that the proposed rules are exempt from the California Environmental Quality Act as 

an action by a regulatory agency for protection of the environment (Class 8 Categorical 

Exemption, Section 15308 State CEQA Guidelines) and because 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 (Section 15061(b)(3), State CEQA Guidelines). 

California Public Resources Code (Section 21159) requires an environmental analysis of the 

reasonably foreseeable methods of compliance. The proposed rules will not increase emissions 

and will not cause any other significant adverse effects on the environment; therefore Staff has 

concluded that no environmental impacts will be caused by compliance with the proposed rules. 

FINDINGS

The California Health and Safety Code, Division 26, Air Resources, requires local Districts to 

comply with a rule adoption protocol as set forth in Section 40727 of the Code. This section has 

been revised through legislative mandate to contain six findings that the District must make 

when developing, amending, or repealing a rule. These findings, effective January 1, 1992, and 

their definitions are listed in the table below. 

Rule 448

FINDING FINDING DETERMINATION 

Authority: The District must find that a provision 

of law or of a state or federal regulation permits or 

requires the District to adopt, amend, or repeal 

the rule. 

The District is authorized to amend Rule 448 by 

Health and Safety Code Sections 40001, 40702, 

40716, 41010, and 41013. [Health and Safety 

Code Section 40727(b)(2)]. 

Necessity: The District must find that the 

rulemaking demonstrates a need exists for the 

rule, or for its amendment or repeal. 

The amendments are necessary to maintain 

consistency with CARB regulations, including 

Enhanced Vapor Recovery, and to incorporate “all 

feasible measures.” [Health and Safety Code 

Section 40727(b)(1)]. 

Clarity: The District must find that the rule is 

written or displayed so that its meaning can be 

easily understood by the persons directly affected 

by it. 

Staff has reviewed the proposed rule amendments 

and determined that they can be easily understood 

by the affected industry. In addition, the record 

contains no evidence that the persons directly 

affected by the rule cannot understand it. [Health 

and Safety Code Section 40727(b)(3)]. 

Consistency: The rule is in harmony with, and 

not in conflict with or contradictory to, existing 

statutes, court decisions, or state or federal 

regulations. 

The proposed rule amendments do not conflict 

with and are not contradictory to, existing statutes, 

court decisions, or state or federal regulations. 

[Health and Safety Code Section 40727(b)(4)]. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 13 

FINDING FINDING DETERMINATION 

Non-Duplication: The District must find that 

either: 1) The rule does not impose the same 

requirements as an existing state or federal 

regulation; or (2) that the duplicative requirements 

are necessary or proper to execute the powers 

and duties granted to, and imposed upon the 

District. 

The proposed rule amendments do not impose the 

same requirements as any federal regulation. 

Some of the rule requirements duplicate state 

regulations in Sections 94011, 94014, and 94016 

of Title 17 of the California Code of Regulations. 

Staff has included these duplicative requirements 

for completeness and has found that they are 

necessary and proper to execute the powers and 

duties granted to and imposed upon the District. 

[HSC Section 40727(b)(5)]. 

Reference: The District must refer to any statute, 

court decision, or other provision of law that the 

District implements, interprets, or makes specific 

by adopting, amending or repealing the rule. 

Federal Clean Air Act sections 182(b)(3), 

172(c)(1), and 182(b)(2); California Health and 

Safety Code Sections 40913, 40914(b)(2), 

40919(a)(3), and 41950. [Health and Safety Code 

Section 40727(b)(6)]. 

Additional Informational Requirements (Health 

and Safety Code Section 40727.2): In complying 

with HSC Section 40727.2, the District must 

identify all federal requirements and District rules 

that apply to the same equipment or source type 

as the proposed rule or amendments. 

Sources subject to this rule are also subject to 

District Rule 202, New Source Review, including 

the requirement for Best Available Control 

Technology (BACT). For major sources, BACT is 

also a federal requirement. A summary of these 

requirements is included in Appendix B. 

Rule 449

FINDING FINDING DETERMINATION 

Authority: The District must find that a provision 

of law or of a state or federal regulation permits or 

requires the District to adopt, amend, or repeal 

the rule. 

The District is authorized to amend Rule 449 by 

Health and Safety Code Sections 40001, 40702, 

40716, 41010, and 41013. [Health and Safety 

Code Section 40727(b)(2)]. 

Necessity: The District must find that the 

rulemaking demonstrates a need exists for the 

rule, or for its amendment or repeal. 

The amendments are necessary to maintain 

consistency with CARB regulations, including 

Enhanced Vapor Recovery; to incorporate “all 

feasible measures”; and to provide an exemption 

from Phase II vapor recovery for the dispensing of 

E85 and the refueling of 100% ORVR-equipped 

vehicles at non-retail facilities. [Health and Safety 

Code Section 40727(b)(1)]. 

Clarity: The District must find that the rule is 

written or displayed so that its meaning can be 

easily understood by the persons directly affected 

by it. 

Staff has reviewed the proposed rule amendments 

and determined that they can be easily understood 

by the affected industry. In addition, the record 

contains no evidence that the persons directly 

affected by the rule cannot understand it. [Health 

and Safety Code Section 40727(b)(3)]. 

Consistency: The rule is in harmony with, and 

not in conflict with or contradictory to, existing 

statutes, court decisions, or state or federal 

regulations. 

The proposed rule amendments do not conflict 

with and are not contradictory to, existing statutes, 

court decisions, or state or federal regulations. 

[Health and Safety Code Section 40727(b)(4)]. 

Non-Duplication: The District must find that 

either: 1) The rule does not impose the same 

requirements as an existing state or federal 

regulation; or (2) that the duplicative requirements 

are necessary or proper to execute the powers 

The proposed rule amendments do not impose the 

same requirements as any federal regulation. 

Some of the rule requirements duplicate state 

regulations in Sections 94011 and 94016 of Title 

17 of the California Code of Regulations. Staff has 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 14 

FINDING FINDING DETERMINATION 

and duties granted to, and imposed upon the 

District. 

included these duplicative requirements for 

completeness and has found that they are 

necessary and proper to execute the powers and 

duties granted to and imposed upon the District. 

[HSC Section 40727(b)(5)]. 

Reference: The District must refer to any statute, 

court decision, or other provision of law that the 

District implements, interprets, or makes specific 

by adopting, amending or repealing the rule. 

Federal Clean Air Act sections 182(b)(3), 

172(c)(1), and 182(b)(2); California Health and 

Safety Code Sections 40913, 40914(b)(2), 

40919(a)(3), and 41950. [Health and Safety Code 

Section 40727(b)(6)]. 

Additional Informational Requirements (Health 

and Safety Code Section 40727.2): In complying 

with HSC Section 40727.2, the District must 

identify all federal requirements and District rules 

that apply to the same equipment or source type 

as the proposed rule or amendments. 

Sources subject to this rule are also subject to 

District Rule 202, New Source Review, including 

the requirement for Best Available Control 

Technology (BACT). For major sources, BACT is 

also a federal requirement. A summary of these 

requirements is included in Appendix B. 

REFERENCES 

1. Air Resources Board. Draft Letter from James Goldstene, Executive Officer to All Local Air 

District Air Pollution Control Officers, February 20, 2008. 

2. United States EPA. Memorandum: Removal of Stage II Vapor Recovery in Situations 

Where Widespread Use of Onboard Refueling Vapor Recovery is Demonstrated, December 

12, 2006. 

3. United States EPA. Memorandum: Removal of Stage II Vapor Recovery from Refueling of 

Corporate Fleets. November 28, 2007. 

4. South Coast AQMD, Final Staff Report for: Proposed Amended Rule 461 – Gasoline 

Transfer and Dispensing, February, 2008. 

5. San Joaquin Valley Unified APCD, Final Draft Staff Report for Revised Proposed 

Amendments to Rule 4622 – Gasoline Transfer into Motor Vehicle Fuel Tanks, December, 

2007. 

6. San Diego APCD, Final Draft Rule 61.4.1- Transfer of Gasoline From Stationary 

Underground Storage Tanks Into Vehicle Fuel Tanks, March 2008. 

7. San Diego APCD, Final Draft Rule 61.3.1- Transfer of Gasoline into Stationary Underground 

Storage Tank, March 2006. 

8. Bay Area AQMD, Final Draft Staff Report for Proposed Amendments to Regulation 8, Rule 7 

– Gasoline Dispensing Facilities. October, 2002. 

9. Skelton, E., and Rector, L., Northeast States for Coordinated Air Use Management 

(NESCAUM), “Onboard Refueling Vapor Recovery Systems Analysis of Widespread Use,” 

August 20, 2007. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 15 

APPENDIX A 

LIST OF CHANGES TO RULE 448

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

101 Same Revised to reflect added requirements for transfers from delivery vessels 

and vehicle fuel tanks into stationary storage containers and delivery 

vessels as well as pump-out from any stationary storage container, 

mobile fueler, or vehicle fuel tank. 

N/A 102 Sets the applicability to the transfer of gasoline or switch loading from 

any delivery vessel into any stationary storage container with a capacity 

≥ 250 gallons or mobile fueler with a capacity ≥ 120 gallons. The rule 

also applies to “pump-out” of stationary storage tanks, mobile fuelers, or 

vehicle fuel tanks. 

N/A 202 Added definition of CARB as the California Air Resources Board. 

N/A 203 Added definition of CARB Certified, consistent with SCAQMD Rule 461. 

N/A 204 Added definition of Delivery Vessel, consistent with Rule 449 – 

TRANSFER OF GASOLINE INTO VEHICLE FUEL TANKS. 

N/A 205 Added definition of Dry Break, consistent with SCAQMD Rule 461. 

N/A 206 Added definition of Executive Order, consistent with SDAPCD Rule 

61.3.1. 

202 N/A Eliminated definition of Existing Vapor Recovery System. This definition 

is no longer needed. 

203 207 Revised definition of Gasoline to include petroleum distillate/alcohol 

blend, consistent with SDAPCD Rule 61.3.1. 

N/A 208 Added definition of Gasoline Dispensing Facility, consistent with 

SCAQMD Rule 461. 

204 209 Section renumbered. 

N/A 210 Added definition of Installer/Contractor similar to SCAQMD Rule 461, but 

including “repair” and “replacement” for completeness. 

205 211 Section renumbered. 

N/A 212 Added definition of Mobile Fueler, consistent with SJVUAPCD Rule 

4621. 

206 N/A Eliminated definition of New Vapor Recovery System. This definition is 

no longer needed. 

207 213 Section renumbered. 

N/A 214 Added definition of Rebuild/Rebuilt, consistent with SCAQMD Rule 461. 

N/A 215 Added definition of Spill Container, consistent with SCAQMD Rule 461. 

208 216 Section renumbered. 

N/A 217 Added definition of Switch Loading, consistent with SJVUAPCD Rule 

4621. 

N/A 218 Added definition of Tester as any person who conducts performance or 

reverification tests as required by this rule or by a CARB Executive 

Order. 

N/A 219 Added definition of Vapor Recovery Equipment Defects (VRED) List as a 

list of defects identified by CARB and incorporated by reference into Title 

17, CCR Section 94006. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 16 

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

209 220 Added definition of vapor tight for delivery vessels, consistent with 

Health and Safety Code Section 41962(h) and CARB CP-204. 

Revised the definition of vapor tight for all other operations to a 

concentration less than 10,000 ppm as methane (not propane) above 

background, consistent with SCAQMD Rule 461, SJVUAPCD Rule 

4621, and District Rule 447 – ORGANIC LIQUID LOADING. 

301 Same Revised section to include switch loading, replace “tank truck or trailer” 

with “delivery vessel”, and include requirements for mobile fuelers with 

capacities ≥ 120 gallons. 

301.1 Same Revised section to require CARB certified Phase I vapor recovery for 

underground storage tanks and changed efficiency to 98%, consistent 

with CARB CP-201. Moved applicable requirements from Section 303 

and revised to be consistent with SCAQMD Rule 461. 

301.2 Same Added section to require CARB certified Phase I vapor recovery for 

aboveground storage tanks with an efficiency of 95%. Moved applicable 

requirements from Section 303 and revised to be consistent with 

SCAQMD Rule 461. 

N/A 301.3 Added section to require CARB certified Phase I vapor recovery for 

mobile fuelers with an efficiency of 95%. Moved applicable 

requirements from Section 303 and revised to be consistent with 

SCAQMD Rule 461. 

302 Same Revised section to include requirements for delivery vessels, other than 

mobile fuelers (which are now covered under Section 301.3) to be CARB 

certified and comply with equipment and maintenance requirements, 

consistent with SCAQMD Rule 461. 

303 N/A Deleted Other Equipment Requirements for stationary storage 

containers, which are now covered in Sections 301.1 and 301.2. 

304 303 Revised minimum pressure and vacuum settings, consistent with CARB 

CP-201 and CP-206. 

N/A 304 Added a prohibition of sale and marking/identification requirements, 

consistent with HSC Sections 41854(f) and 41960.2(b). 

N/A 305.1 Added new requirement that no person shall perform or allow a pumpout of a stationary storage container or mobile fueler, unless using a 

vapor recovery system capable of returning the displaced vapors to the 

storage container being pumped out. This requirement closes a 

loophole that exists in the current versions of Rule 448 and 449, and is 

consistent with SCAQMD Rule 461. 

N/A 305.2 Added a work practice requirement to prevent excessive spillage of 

liquid when pumping out vehicle fuel tanks. 

N/A 306 Added new requirement that owner/operators of gasoline dispensing 

facilities shall perform maintenance inspections after receiving a fuel 

delivery to maintain the vapor recovery system in good working order. 

Added provisions, consistent with Rule 449, regarding tagging, removal 

from service, and repair of defective components. 

N/A 307 Added provision, consistent with Rule 449 and HSC Section 41960.2(d), 

prohibiting the use of a vapor recovery system or component with a 

major defect on the VRED list. This provision is necessary for SIP 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 17 

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

approval, per EPA Region IX guidance. 

400 Same Revised section, Rule 448 now includes administrative requirements. 

N/A 401 Added new requirement that effective 3 months after date of adoption, 

Installers/Contractors must be ICC certified, and, if required by 

Executive Order, manufacturer certified. Testers must be certified by 3 

months after a certification test is available. Also must maintain proof of 

certification on site, consistent with SCAQMD Rule 461 and SJVUAPCD 

Rule 4621. 

N/A 402 Added Notification of Testing provision, consistent with Rule 449. 

N/A 403 Added Test Requirements section to list all performance and 

reverification tests required to pass successfully by the facility. 

500 Same Revised section to update test methods to the most current approved 

versions. 

501.1 Same Revised section to update ASTM method reference to the most recent 

version. 

501.2 Same Added separate method, CARB CP-204.3, for determining leak tightness 

for delivery vessels, consistent with Health and Safety Code Section 

41962(h) and CARB CP-204. All other operations use EPA Method 21 

to determine vapor tightness. 

N/A 501.3 – 

501.6 

Added list of applicable test methods for performance and reverification 

tests. 

N/A 501.7 Added to reference additional or complementary test methods of the 

applicable CARB Executive Orders. 

N/A 501.8 To clarify enforceability, added paragraph stating that where multiple test 

methods are specified, a violation established by any one of the test 

methods constitutes a violation of the rule. 

N/A 502 Added Recordkeeping requirement for facilities to maintain records onsite for a period not less than 3 years (5 years for Title V sources) and 

make available for review upon request, including but not limited to: 

performance and reverification test results, maintenance and repair 

records, and maintenance inspection reports. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 18 

LIST OF CHANGES TO RULE 449 

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

111 N/A Eliminated exemption for Odd Fill Configuration, which is no longer 

necessary because there aren’t any configurations that can’t 

comply. 

112 111 Section renumbered. 

113 112 Section renumbered. 

N/A 113 Added exemption from Phase II vapor recovery requirement for E85 

dispensing, consistent with CARB Executive Order G-70-212 and 

federal guidance. 

N/A 114 Added exemption from Phase II vapor recovery requirement for nonretail gasoline dispensing facilities refueling 100% ORVR-equipped 

vehicles, consistent CARB and federal guidance, SJVUAPCD Rule 

4622 and SCAQMD Rule 461. 

N/A 115 Added exemption from ICC certification for owners/operators and 

their direct employees when replacing nozzles, hoses and 

breakaways with new or CARB certified re-manufactured 

components. 

N/A 202 Added definition of CARB as the California Air Resources Board. 

N/A 203 Added definition of CARB Certified, consistent with SCAQMD Rule 

461. 

202 204 Added “trailer, or rail car” to the definition of delivery vessel. 

N/A 205 Added definition for E85, consistent with SCAQMD Rule 461, with 

reference to the definition in Title 13, CCR Section 2292.4. 

203 206 Section renumbered. 

204 207 Section renumbered. 

N/A 208 Added definition of Executive Order, consistent with SDAPCD Rule 

61.3.1. 

205 N/A Eliminated definition of Existing Vapor Recovery System. This 

definition is no longer needed. 

206 209 Revised definition of Gasoline to include petroleum distillate/alcohol 

blend, consistent with SDAPCD Rule 61.4.1. 

207 210 Revised to replace the term “intermediate fueller” with “mobile 

fueler.” 

208 211 Section renumbered. 

N/A 212 Added definition of Installer/contractor similar to SCAQMD Rule 461, 

but including “repair” and “replacement” for completeness. 

209 N/A Eliminated definition of Intermediate Fueller, which is no longer 

used. 

210 213 Section renumbered. 

N/A 214 Added definition of Mobile Fueler, consistent with SJVUAPCD Rule 

4622. 

211 215 Revised to reference definition in Section 415 of the California 

Vehicle Code. 

212 N/A Eliminated definition of New Vapor Recovery System. This 

definition is no longer needed because the requirements for all 

systems, new or existing, are now the same. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 19 

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

N/A 216 Added definition of ORVR, consistent with SDAPCD Rule 61.4.1 

N/A 217 Added definition of Owner/Operator, consistent with SCAQMD Rule 

461. 

N/A 218 Added definition of Rebuild/Rebuilt, consistent with SCAQMD Rule 

461. 

N/A 219 Added definition of Retail Gasoline Dispensing Facility, consistent 

with SJVUAPCD Rule 4622. 

213 220 Section renumbered. 

N/A 221 Added definition of Summer Fuel, consistent with SDAPCD Rule 

61.4.1. This definition is now used in the Standards section. 

N/A 222 Added definition of Tester as any person who conducts performance 

or reverification tests as required by Rule 449 or by a CARB 

Executive Order. 

N/A 223 Added definition of Topping Off, consistent with SDAPCD Rule 

61.4.1. 

N/A 224 Added definition of Vapor Recovery Equipment Defects (VRED) List 

as a list of defects identified by CARB and incorporated by reference 

into Title 17, CCR Section 94006. 

214 225 Revised “as propane” to “as methane” to correct error in previous 

version of the rule. 

N/A 226 Added definition of Winter Fuel, consistent with SDAPCD Rule 

64.4.1. This definition is now used in the Standards section. 

301 Same Revised section to require CARB certified vapor recovery systems 

for mobile fuelers with a capacity ≥ 120 gallons, consistent with 

SCAQMD Rule 461 and SJVUAPCD Rule 4622. 

N/A 301.1 Added section for vapor recovery systems using summer fuel to 

have 95% control efficiency by weight and mass emission factor not 

exceeding 0.38 pounds of vapors per 1,000 gallons of gasoline, 

consistent with CARB CP-201. The mass emission factor is not 

included in Rule 448 because it is equivalent to the efficiency for 

both summer and winter fuel. 

N/A 301.2 Added section for vapor recovery systems using winter fuel to have 

95% control efficiency by weight or mass emission factor not 

exceeding 0.38 pounds of vapors per 1,000 gallons of gasoline, 

consistent with CARB CP-201. The mass emission factor is not 

included in Rule 448 because it is equivalent to the efficiency for 

both summer and winter fuel. 

302 Same Revised section to include mobile fuelers, consistent with SCAQMD 

Rule 461 and SJVUAPCD Rule 4622. 

302.1 Same Revised section to include Executive Orders, consistent with 

SCAQMD Rule 461. 

302.2 Same Revised to include reference to the VRED List. 

303.1 Same Removed past effective date. 

303.2 Same Revised to include reference to the VRED List. Deleted requirement 

to shutdown for a defect not on the VRED List, as this requirement 

was in conflict with Section 41960.2(e) of the California Health and 

Safety Code. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 20 

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

304 Same Revised to include reference to the VRED List and change authority 

from APCO to operator shall mark system or component “Out of 

Order”. 

305 Same Revised section to include prohibition of topping off vehicle fuel 

tanks to prevent excess emissions. This prohibition is consistent 

with SJVUAPCD Rule 4622, SDAPCD Rule 61.4.1, and EPA Region 

IX guidance. 

N/A 307 Added a prohibition of sale and marking/identification requirements, 

consistent with HSC Sections 41854(f) and 41960.2(b). 

N/A 308 Added section requiring the owner/operator of a non-retail GDF 

claiming the 100% ORVR exemption to modify the facility permit to 

include conditions require the facility to: 1) not dispense fuel into a 

vehicle that is not owned or under the direct control of the operator, 

except for a vehicle being used in an emergency, 2) not dispense 

fuel into a vehicle not equipped with an ORVR system, except for a 

vehicle being used in an emergency, and 3) use nozzles that are 

part of a CARB certified vapor recovery system, except that the 

vapor return line shall be sealed off. These requirements are 

consistent with SCAQMD Rule 461. 

401 N/A Eliminated Compliance Schedule because these dates have 

passed. 

402 401 Section renumbered. 

402.2 401.2 Revised section title to Initial Tests, and clarified that these tests are 

required within 30 days of completion or modification of any vapor 

recovery system. 

402.3 401.3 Revised section title to Testing Frequency, and changed frequency 

for facilities to pass reverification tests annually, or more frequently 

as required by the applicable CARB Executive Order. 

N/A 402 Added new requirement, effective 3 months after date of adoption, 

Installers/Contractors must be ICC certified, and, if required by 

Executive Order, manufacturer certified. Testers must be 

manufacturer certified if required by Executive Order, and 3 months 

after certification test is available must be ICC certified for Testing 

and Repair. Also must maintain proof of certification on site, 

consistent with SCAQMD Rule 461 and SJVUAPCD Rule 4622. 

403.1 – 

403.2 

Same Revised section to include IOM and CP-206 requirements. 

501.1 Same Revised section to update ASTM method reference to the most 

recent version. 

501.2 Same Revised to remove TP-204.3 for vapor tightness because this 

method does not measure organic compound concentrations. 

501.3 Same Revised section to include TP-206.3. 

501.4 Same Corrected typographical error by changing TP-201 to TP-201.4. 

N/A 501.8 Added section requiring different or additional test methods if 

specified in the applicable Executive Order, consistent with 

SJVUAPCD Rule 4622. 

N/A 501.9 To clarify enforceability, added paragraph stating that where multiple 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 21 

EXISTING 

SECTION 

NUMBER 

NEW 

SECTION 

NUMBER 

PROPOSED CHANGES 

test methods are specified, a violation established by any one of the 

test methods constitutes a violation of the rule. 

502 Same Revised to require keeping records on-site and making them 

available to the APCO immediately upon request. 

502.2 Same Revised to include reference to the VRED List. 

502.3 Same Revised to delete paragraph (d) because it duplicated paragraph (b).

N/A 503 Added section to require recordkeeping for facilities claiming the 

100% ORVR exemption, consistent with SCAQMD Rule 461. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 22 

Appendix B-1 

California HSC Section 40727.2 Matrix 

Proposed Rule 448- Gasoline Transfer into Stationary Storage Containers 

Comparative Requirements 

Elements of 

comparison 

Specific 

Provisions Proposed Rule 448 Best Available Control 

Technology (BACT) 

Exemptions Implements of Husbandry 10 lbs VOC per day 

Emission 

Limits 

Emission 

Reductions 

CARB certified vapor 

recovery system with a 

minimum volumetric efficiency 

of 98% for underground 

tanks, 95% for aboveground 

tanks, and 95% for mobile 

fuelers. 

CARB certified vapor 

recovery equipment that 

achieves at least 95% 

efficiency 

Testing 

Equipment must 

be in proper 

operating order 

Require annual testing of all 

stations to ensure that 

equipment is operating in 

accordance with CARB 

certification 

Equipment must operate in 

accordance with CARB 

certification and Executive 

Orders without a 

substantial defect 

Recordkeeping Three years (five years for 

Title V sources) 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 23 

Appendix B-2 

California HSC Section 40727.2 Matrix 

Proposed Rule 449-Transfer of Gasoline into Vehicle Fuel Tanks 

Comparative Requirements Elements of 

comparison 

Specific 

Provisions 

Proposed Rule 449 Best Available Control 

Technology (BACT) 

Exemptions 

• E85 

• 100% ORVR facilities 

• Emergency motor 

vehicles 

• Implements of 

Husbandry 

• Six month average 

gasoline throughput of 

less than 100,000 

gallons exempt from 

maintenance 

inspections on 

weekends and 

holidays 

10 lbs VOC per day 

Emission Limits Emission 

Reductions 

CARB certified vapor 

recovery system with 

minimum 95% efficiency by 

weight 

CARB certified vapor 

recovery equipment that 

achieves at least 95% 

efficiency 

Testing 

Equipment must 

be in proper 

operating order 

Require annual testing of 

all stations to ensure that 

equipment is operating in 

accordance with CARB 

certification 

Equipment must operate in 

accordance with CARB 

certification and Executive 

Orders without a 

substantial defect 

Recordkeeping Three years (five years for 

Title V sources) 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 24 

APPENDIX C 

CARB and EPA Letters Regarding Phase II Exemptions 











State of California 

AIR RESOURCES BOARD 

EXECUTIVE ORDER G-70-212 

Modification of the Operative and Effective Dates Relating to the Finding 

that EVR Phase II Vapor Recovery Systems, Including In-Station 

Diagnostics, Are Not Certified for Use on Dispensing Facilities that Refuel 

Vehicles with a Fuel Blend of 85 Percent Ethanol and 15 Percent Gasoline 

(E85)

WHEREAS, the California Air Resources Board (ARB) has established, pursuant 

to California Health and Safety Code sections 25290.1.2, 39600, 39601 and 

41954, certification procedures for systems designed for the control of gasoline 

vapor emissions during motor vehicle fueling operations (Phase II EVR vapor 

recovery systems) in its CP-201, Certification Procedure for Vapor Recovery 

Systems at Gasoline Dispensing Facilities (Certification Procedure) as last 

amended May 25, 2006, incorporated by reference in title 17, California Code of 

Regulations, section 94011; 

WHEREAS, ARB has determined, after consulting with industry and local air 

quality management and air pollution control districts (districts), that the number of 

E85 (85 percent ethanol and 15 percent gasoline) dispensing facilities will 

increase throughout California; 

WHEREAS, ARB has determined, E85 fuel is considered gasoline as the term is 

defined in D-200 Definitions for Vapor Recovery Procedures as last amended 

on May 25, 2006, incorporated by reference in title 17, California Code of 

Regulations, section 94010; 

WHEREAS, District vapor recovery rules and regulations may require the use of 

Phase II vapor recovery systems at gasoline dispensing facilities, including those 

dispensing E85; 

WHEREAS, section 2.4.4 of CP-201 allows the Executive Officer to change the 

operative and effective dates of new performance standards and specifications 

when certified systems meeting the applicable standards and specifications are 

not certified by the operative dates specified in Table 2-1 of CP-201; 

WHEREAS, a vapor recovery system that meets the Phase II standards and 

specifications, including In-Station Diagnostics, was not certified for use on E85 

dispensing facilities by the operative date in Table 2-1 of CP-201; and 

WHEREAS, ARB and the U.S. Environmental Protection Agency have issued 

guidance letters authorizing districts to amend their rules to exempt E85 

dispensing facilities from Phase II vapor recovery requirements because such 
-2-

facilities are expected to refuel vehicle fleets where 95 percent of the vehicles are

equipped with on-board refueling vapor recovery (ORVR), a vehicle based

system.

NOW, THEREFORE, IT IS HEREBY ORDERED that E85 dispensing facilities

may continue to operate without Phase II vapor recovery until such time as ARB

may certify Phase II vapor recovery systems for use with E85.

Executed at Sacramento, California, this
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 38 

APPENDIX D 

Public Comments 

Public Workshop Comments (January 13, 2009) 

 Participants: Karen Carney Mike Krempely 

 George Contos June Livingston 

 Kaled Cuaresma Rick Mandella 

 Mike Davirro Ian Moorhead 

 Tam Dinh Jeff Rivard 

 Larry Gregory Dirk Ruinard 

 George Julian Wayne Todd 

Comment #1: What does the EVR upgrade consist of? 

Response: EVR upgrade refers to the replacement of an older Phase II vapor 

recovery system with a new system that has been certified to CARB’s 

most recent standards. State regulations require these new EVR 

systems to be in place by April 1, 2009 for facilities with underground 

storage tanks. Facilities with aboveground storage tanks will need to 

perform EVR upgrades by July of 2012. District permits are required 

before installing or modifying the vapor recovery systems. 

Comment #2: For public agencies with key control fleets, do we need to submit any 

documentation or paperwork to get the ORVR exemption? 

 

Response: Yes. As stated in Rule 449 section 308, non-retail dispensing facilities 

claiming this exemption shall submit an application pursuant to Rule 201 

– GENERAL PERMIT REQUIREMENTS for an Authority to Construct and 

Permit to Operate the facility, agreeing to comply with the conditions for 

exemption and the recordkeeping requirements. 

Comment #3: For facilities going for the ORVR exemption, can we keep the current 

Phase II nozzle? 

Response: Rule 449 Section 308 requires the nozzles to be part of a CARB certified 

vapor recovery system, except that the vapor return line shall be sealed 

off. If your current nozzles are no longer CARB certified, they will have to 

be replaced. 

Comment #4: For the ORVR exemption, do we need to submit an application prior to 

April 1? 

Response: Yes. Please see the response to Comment #2 above. Otherwise, the 

facility must have an EVR Phase II system in place by April 1, 2009. 

Comment #5: Where do we get the applications? 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 39 

Response: Applications can be picked up at the District, mailed out upon request, or 

downloaded from the District website: 

http://www.airquality.org/permits/forms/appforms.shtml

Comment #6: How do we document the inspection after each fuel drop? 

Response: Inspection log formatting is at the discretion of the source. Staff is open to 

working with affected sources to develop checklists where needed. 

Comment #7: What is the reason for the inspection after each fuel drop if we conduct 

daily inspections? 

Response: Daily inspections are required as part of Phase II systems maintenance. 

Staff believes the Phase I systems are most susceptible to damage when 

receiving deliveries. However, Staff has changed the language in Section 

306.1 of Rule 448 such that only one inspection is required for each day 

that fuel is delivered. If you already perform daily inspections, you are 

complying with the proposed requirement (assuming the required 

elements are included in your inspections). 

Comment #8: When is the effective date of the rule amendments? 

Response: Staff has scheduled the proposed rules to be considered for adoption by 

the Board of Directors at a public hearing on February 26, 2009. Unless, 

otherwise specified, the rule amendments will take effect immediately 

upon rule adoption. The exceptions are section 401 of Rule 448 and 

Section 402 of Rule 449, which contain specific timelines for ICC 

certification requirements, and section 403.3 of Rule 448, which specifies 

when annual testing requirements begin. 

Comment #9: When do we know that the proposed amendments to the rules have been 

adopted? 

Response: The public is welcome to attend the February adoption hearing to witness 

firsthand. If adopted, the District website will be updated to reflect the 

Board’s decision. 

Comment #10: The proposed amendment does not specify that an application is 

required. Is an application required? 

Response: Please see the response to Comment #2 above. 

Comment #11: What happens if the rule passes but the permits have not been modified 

yet? 

Response: Assuming that the District Board adopts the ORVR exemption as 

proposed, the District will not take enforcement action if the application for 

ORVR exemption is submitted before April 1, 2009 and a permit is 

subsequently granted. 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 40 

Comment #12: What if you already have a Phase II system and you want to use an 

exemption? 

Response: If you are an E85 facility, you can keep your Phase II system in place or 

remove it. If you are ORVR exempt, you will need to apply for a permit 

modification and use CARB certified nozzles with the vapor return line 

sealed off. 

Written Comments 

Andrew Steckel, United States Environmental Protection Agency (December 23, 2008) 

Comment #1: We have completed a preliminary review of the draft rules and have 

identified no significant concerns. 

Alex Krichevsky, California Air Resources Board (December 29, 2008) 

Comment #1: Rule 448 - We have no comments on this rule. 

 

Comment #2: Rule 449 – Section 301.1: Table 4-1 in ARB Vapor Recovery 

Certification Procedure CP-201 requires 95% by weight control efficiency 

and an emission factor < 0.38 lb/1000 gal for summer fuel. Therefore, we 

recommend to change this section to read as follows: 

 

 For summer fuel, a gasoline vapor control efficiency of at least 95% by 

weight or and a mass emission factor not exceeding 0.38 pounds of 

gasoline vapors per 1,000 gallons of gasoline dispensed. 

Response: Staff agrees and has revised the rule accordingly. 

Comment #3: Rule 449 – Section 301.2: Table 4-1 in ARB Vapor Recovery 

Certification Procedure CP-201 requires 95% by weight control efficiency 

or an emission factor < 0.38 lb/1000 gal for winter fuel. Therefore, we 

recommend to change this section to read as follows: 

For winter fuel, a gasoline vapor control efficiency of at least 95% by 

weight and or a mass emission factor not exceeding 0.38 pounds of 

gasoline vapors per 1,000 gallons of gasoline dispensed. 

 

Response: Staff agrees and has revised the rule accordingly. 

Karen Carney, County of Sacramento (January 15, 2009)

Comment #1: Rule 448 Section 306.1, regarding maintenance inspections, how will the 

owner/operator be able to verify: If the spill containment drain valve is 

vapor tight? If the poppet valve is damaged? Should we actually 

compress it to see? If the submerged fill pipe is missing or damaged? 

Response: The maintenance inspections proposed for Rule 448, Section 306.1, are 

intended to be primarily visual inspections that do not require the use of 

testing equipment. Staff has changed the proposed requirement for drain 
Staff Report 

Rules 448 and 449 

January 23, 2009, Page 41 

valves from “vapor tight” to “seating properly” so that the use of testing 

equipment is not required. 

Spill containers that contain debris should have the debris removed if 

gasoline is present in the spill container, the drain valve should be 

opened to let the gasoline drain into the tank. When not in use, the drain 

valve should be closed. Inspect for any visual damage or the presence of 

vapor leaks when the drain valve is closed. 

Poppet valves should be inspected visually for obvious mechanical 

damage and to ensure that the valve is not stuck in an open position, that 

it is seated properly, and there is no sign of vapor leaks. 

The presence or absence of the submerged fill pipe can be seen through 

a visual inspection of the liquid adapter. The fill tube should be round and 

free from deformities. 

The District’s compliance assistance staff is available to help educate 

facilities on specific procedures.