BARCLAYS OFFICIAL CALIFORNIA CODE OF

REGULATIONS

TITLE 13. MOTOR VEHICLES

DIVISION 3. AIR RESOURCES BOARD

CHAPTER 5. STANDARDS FOR MOTOR

VEHICLE FUELS

ARTICLE 1. STANDARDS FOR GASOLINE

SUBARTICLE 2. STANDARDS FOR GASOLINE

SOLD BEGINNING MARCH 1, 1996

This database is current through 12/26/08, Register

2008, No. 52

§ 2265.5. Alternative Emission Reduction Plan (AERP).

(a) Applicability. This section shall apply to a producer

or importer that produces gasoline that elects to use an

AERP or to a third party that elects to use a third party

AERP when all of the following conditions are satisfied:

(1) In the case of a third party AERP, the third party has

a contract or agreement to offset, in whole or in part,

the elevated emissions associated with permeation from

the producer's or importer's gasoline.

(2) With regard to a batch of gasoline that does not meet

the criteria for approval in the applicable Predictive

Model Procedures, immediately prior to producing or

importing that batch, the producer or importer has reported its gasoline as a PM alternative gasoline formulation pursuant to section 2265(a),

(3) But for the elevated emissions associated with permeation, the PM alternative specifications would have

met the criteria for approval in the applicable Predictive

Model Procedures,

(4) All measures to correct the emissions associated

with permeation would result in an economic hardship

to the producer or importer and the benefit in allowing

the producer or importer to use an alternative emission

reduction plan is not outweighed by the public interest

in enforcing the applicable Predictive Model Procedures,

(5) The producer or importer is not subject to any outstanding requirements to provide offsets at the same

production facility or import facility pursuant to section

2264(c), and

(6) All AERPs and third party AERPs sunset on December 31, 2011, unless the producer or importer, or the

third party in the case of a third party AERP, requests in

writing, and the Executive Officer approves in advance,

an extension of the AERP or third party AERP for up to

one additional year.

(b) Requirements.

(1) Where the producer or importer that produces gasoline has reported its final blend of gasoline as a flat limit

formulation pursuant to section 2264.2(b), averaging

limit formulation pursuant to section 2264.2(a), PM alternative gasoline formulation pursuant to section

2265(a), or test-certified alternative gasoline formulation pursuant to section 2266(c), compliance with a valid AERP or third party AERP shall constitute compliance with the requirements of section 2262.3(b),

2262.3(c), 2265, or 2266, respectively.

(2) An AERP or third party AERP application demonstrating compliance with this subsection shall contain at

a minimum all of the following information:

(A) The company name, address, phone number, and

contact information,

(B) The producer's or importer's name, batch name,

number or other identification, grade of California gasoline, and other information that uniquely identify the

California gasoline subject to the AERP or third party

AERP,

(C) An explanation describing why the producer or

importer cannot eliminate the emissions associated with

permeation by reformulation or reprocessing its gasoline,

(D) The total emissions of oxides of nitrogen (NOx),

total ozone forming potential, and potency-weighted

13 CA ADC § 2265.5 Page 1

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
toxics that would be associated with the use of California gasoline were the producer or importer to eliminate

the emissions associated with permeation from its gasoline,

(E) Documentation, calculations, emissions test data,

or other information that establishes the amount of

NOx, total ozone forming potential, and potencyweighted toxics associated with the producer's or importer's gasoline,

(F) The emission reduction strategy(ies) for the

AERP or third party AERP and the date(s) that the offsets will accrue and expire for each strategy,

(G) The producer's or importer's market share for the

fuel produced under the AERP or third party AERP,

(H) Demonstration that the emission reduction

strategy(ies) in the AERP or third party AERP will result in equivalent or better emission benefits for NOx,

total ozone forming potential, and potency-weighted

toxics than would be achieved through elimination of

emissions associated with permeation from the gasoline

for the same affected region and for the period the

AERP or third party AERP will be in effect, during and

outside the RVP regulatory control periods in section

2262.4(b)(2),

(I) Demonstration that the emission reductions are

achieved in the general region where the fuel is sold,

(J) The proposed recordkeeping, reporting, monitoring, and testing procedures that the producer or importer

plans to use to demonstrate continued compliance with

the AERP or third party AERP and achievement of each

increment of progress toward compliance,

(K) Adequate enforcement provisions,

(L)The projected volume of each final blend of California gasoline subject to the AERP or third party

AERP during the period the AERP or third party AERP

will be in effect,

(M) The period that the AERP or third party AERP

will be in effect,

(N) A compliance plan that includes increments of

progress (specific events and dates) that describe periodic, measurable steps toward compliance during the

proposed period of the AERP or third party AERP,

(O) The date by which the producer or importer plans

to discontinue using the AERP or third party AERP,

(P) A statement, signed by a legal representative for

the producer or importer that all information submitted

with the AERP or third party AERP application is true

and correct,

(Q) The producer's or importer's agreement to be

bound by the terms of the AERP or third party AERP,

and

(R) In the case of a third party AERP, all of the

above including all of the following:

1. The third party's name, address, phone number,

and contact information,

2. Documentation of the contract or agreement

between the third party and the producer or importer,

3. Documentation of the amount of NOx, total ozone

forming potential, and potency-weighted toxics

(reported as tons/day and percentage of the total tons/

day) from the producer's or importer's gasoline that will

be offset by the third party AERP,

4. A list of all AERPs and third party AERPs that

currently apply to the producer or importer,

5. A statement, signed by a legal representative for

the third party that all information submitted with the

third party AERP application is true and correct, and

6. The third party's agreement to be bound by the

terms of the third party AERP.

(3) Emission reduction calculations demonstrating equivalence between the AERP or third party AERP and

elimination of the emissions associated with permeation

from the gasoline shall only include NOx, total ozone

forming potential, and potency-weighted toxics emissions from California gasoline sold or supplied in Cali13 CA ADC § 2265.5 Page 2

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
fornia.

(4) A producer or importer wishing to participate in an

AERP may include one or more production facilities or

import facilities, but the producer or importer shall only

include such facilities that the producer or importer

owns or operates under their direct control. A third

party wishing to participate in a third party AERP may

include one or more production facilities or import facilities, but the third party shall only include such facilities with which the third party has a contract or agreement to offset emissions associated with permeation.

(5) The emission reduction associated with the AERP or

third party AERP must be from combustion related

sources or gasoline related sources.

(6) AERPs and third party AERPs may include, but are

not limited to:

(A) Vehicle scrappage,

(B) Offsetting emissions with lower emitting diesel

fuel batches,

(C) Incentive grants for cleaner-than-required engines, equipment and other sources of pollution providing early or extra emission reductions.

(7) Emission reductions included in an AERP or third

party AERP shall not include reductions that are otherwise required by any local, State, or federal rule, regulation, or statute, or that are achieved or estimated from

equipment not located within the region associated with

the AERP or third party AERP, or that are claimed under section 2265.1, or that are claimed under another

program, such as the Voluntary Accelerated Vehicle

Retirement or Carl Moyer program, or the result of

standard business practices that the producer or importer would have done without the AERP or third party

AERP.

(8) The producer or importer subject to an approved

AERP or third party AERP shall maintain all records required to verify compliance with the provisions of the

AERP or third party AERP in a manner and form specified by the Executive Officer in the approved AERP

or third party AERP. Required records may include, but

are not limited to, volume of California gasoline sold,

offered, or supplied to which the AERP or third party

AERP applies, and/or emissions test results. Such records shall be retained for a period of not less than five

(5) years and shall be submitted to the Executive Officer within 20 days in the manner specified in the approved AERP or third party AERP and upon request by

the Executive Officer.

(9) Prior to selling, offering, or supplying a batch of

California gasoline with emissions associated with permeation, the producer or importer shall first have established sufficient offsets for the applicable emissions associated with permeation. With the exception of offsets

from vehicle scrappage and incentive grants for cleanerthan-required engines, equipment and other sources of

pollution, offsets shall expire at midnight on the day

they accrued.

(c) Application Process.

(1) Applications for an AERP or third party AERP shall

be submitted in writing to the Executive Officer for

evaluation.

(2) The application shall be accompanied by a fee of

$6,700.00 to cover the costs of processing the AERP or

third party AERP application. If the applicant withdraws the application before the 30-day first comment

period, $4,100.00 of the fee shall be refunded.

(3) The Executive Officer shall make available for public review all documents pertaining to an AERP or third

party AERP application.

(4) The Executive Officer will send a notice to subscribers of the Fuels listserv that a person has requested

the Executive Officer consider a request for an AERP or

third party AERP. The Executive Officer shall also

provide a copy of all such documents to each person

who has requested copies of the documents. Collectively, those persons on the Fuels listserv and those persons who have requested copies of the documents shall

be treated as interested parties.

(5) After an AERP or third party AERP application has

13 CA ADC § 2265.5 Page 3

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
been received and deemed complete, the Executive Officer shall provide a 30-day public comment period to

receive comments on any element of the AERP or third

party AERP application. Any public comment addressing whether the Executive Officer should approve or

disapprove the AERP or third party AERP application

shall be based on the contents and merits of the application. No comment received by the Executive Officer

after the 30-day period will be considered. The Executive Officer shall send to subscribers of the Fuels listserv, and mail to those interested parties who have requested copies by mail, of the following:

(A) The identity of the applicant producer(s) or importer(s);

(B) The start and end dates for the 30-day comment

period;

(C) The address of the AERP internet site where the

application is posted; and.

(D) Where and how to submit comments.

The Executive Officer shall post on the AERP internet site, send to subscribers of the Fuels listserv, and

mail to those interested parties who have requested copies by mail, notification of public comments received

during the 30-day comment period.

(6) The Executive Officer may hold a public hearing to

accept public comments or decide the merits of the application.

(7) Final Action.

After the public comment period ends, the Executive

Officer may take final action to either approve or deny

the AERP or third party AERP application. The Executive Officer shall notify the applicant, post on the ARB

internet site, send to subscribers of the Fuels listserv,

and mail to those interested parties who have requested

copies by mail, of the final action.

(8) Notification to the Executive Officer of Changes to

information in the AERP or third party AERP application. The applicant shall notify the Executive Officer in

writing within 30 days upon learning of any information

that would alter any information provided in the AERP

or third party AERP application.

(d) Revocation or Modification of an Approved AERP

or third party AERP.

(1) With 30-days written notice to the producer or importer, or in the case of a third party AERP, the third

party, the Executive Officer may revoke or modify, as

needed, an approved AERP or third party AERP in any

of the following situations:

(A) There has been more than one violation of the approved AERP or third party AERP,

(B) The Executive Officer has reason to believe that

an approved AERP or third party AERP has been granted that no longer meets the criteria or requirements for

an AERP or third party AERP,

(C) The producer or importer, or in the case of a third

party AERP the third party, demonstrates that it can no

longer comply with the requirements of the approved

AERP or third party AERP in its current form,

(D) The producer or importer, or in the case of a third

party AERP the third party, demonstrates to the satisfaction of the Executive Officer that 1. the continuation

of the AERP or third party AERP will result in economic hardship to the producer or importer, or in the case of

a third party AERP, the third party, 2. the producer or

importer, or in the case of a third party AERP the third

party, submits a substitute plan in accordance with section 2265.5(c) to offset any emissions not otherwise offset by the AERP or third party AERP, and 3. the Executive Officer approves the substitute plan, or

(E) The producer's or importer's facility modifications and/or other means of eliminating emissions associated with permeation from its gasoline have been

completed.

(2) The Executive Officer shall notify the applicant,

post on the AERP internet site, send to subscribers of

the Fuels listserv, and mail to those interested parties

who have requested copies by mail, of a revocation or

13 CA ADC § 2265.5 Page 4

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
modification of an approved AERP or third party

AERP.

(3) Any violations incurred pursuant to subsection (e)

shall not be cancelled or in any way affected by the subsequent cancellation or modification of an AERP or

third party AERP.

(e) Additional prohibitions.

(1) No person may sell, offer, or supply California gasoline that creates emissions associated with permeation

unless the producer or importer, or in the case of a third

party AERP, the third party has first been notified in

writing by the Executive Officer that the AERP or third

party AERP application has been approved.

(2) Failure to meet any requirement of this section or

any condition of an approved AERP or third party

AERP shall constitute a single, separate violation of this

article for each day until such requirement or condition

is satisfied.

(3) False reporting of any information contained in an

AERP or third party AERP application, or any supporting documentation or amendments thereto, shall constitute a single, separate violation of the requirements of

this article for each day that the approved AERP or

third party AERP is in effect.

(4) Any net exceedance at any given time, taking into

consideration the amount of offsets and the gasoline

produced under the AERP or third party AERP, of NOx,

total ozone forming potential, or potency-weighted toxics during the period the AERP or third party AERP is

in effect shall constitute a single, separate violation of

the requirements of this article for each day the California gasoline subject to the AERP or third party AERP is

sold, supplied, or offered in California.

(5) Any of the following actions shall each constitute a

single, separate violation of the requirements of this article for each day after the applicable deadline until the

requirement or condition is satisfied:

(A) Failure to report data or failure to report data accurately in writing to the Executive Officer when required by this section or the approved AERP or third

party AERP;

(B) False reporting of any information submitted to

the Executive Officer for determining compliance with

the AERP or third party AERP;

(C) Failure to completely offset emissions, pursuant

to any offset reconciliation requirements in the AERP or

third party AERP, during the period the AERP or third

party AERP is in effect;

(D) Sale, supply, or offer of volumes of California

gasoline which purportedly complies with the AERP or

third party AERP in excess of the approved AERP or

third party AERP.

(6) Offsets shall not include offsets or other reductions

that are otherwise required by any local, State, or federal rule, regulation, or statute, or that are achieved or estimated from California gasoline not produced in the

same air basin as the gasoline associated with the AERP

or third party AERP, or that are claimed under section

2265.1.

(f) A cause of action against the producer, importer, or

third party under this section shall be deemed to accrue

on the date(s) when the records establishing a violation

of the AERP or third party AERP are received by the

Executive Officer.

(g) Transferability. Rights to use, or protection under,

the AERP or third party AERP are nontransferable, unless such transfer is approved in writing by the Executive Officer.

(h) Notification of final blends associated with an

AERP or third party AERP

(1) Except as otherwise provided, for each final blend,

the producer or importer shall notify the Executive Officer in writing, for receipt by the Executive Officer before the start of physical transfer of the gasoline from

the production facility or import facility, and in no case

less than 12 hours before the producer or importer either

completes physical transfer or commingles the final

blend, with the following information:

13 CA ADC § 2265.5 Page 5

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
(A) The company name, address, phone number, and

contact information,

(B) The production facility or import facility name,

batch name, number, or other identification, the blend

identity, grade of California gasoline, the location (with

sufficient specificity to allow ARB inspectors to locate

and sample the gasoline; this shall include, but is not

limited to, the name of the facility, address, and identification of the tank), and other information that

uniquely identifies the California gasoline subject to the

AERP or third party AERP,

(C) The estimated volume (in barrels),

(D) The identity of the AERP or third party AERP,

which was approved by the Executive Officer and the

NOx, total ozone forming potential, and potencyweighted toxics emission limits stated in that plan,

(E) The PM alternative specifications for RVP, sulfur

content, benzene content, aromatics content, olefins

content, T50, T90, and oxygen content,

(F) Documentation, calculations, emissions test data,

and other information that establishes the amount of

NOx, total ozone forming potential, and potencyweighted toxics associated with the final blend of California gasoline to which the AERP or third party AERP

applies,

(G) A statement, signed by a legal representative for

the producer or importer that all information submitted

with the notification is true and correct, and

(H) Within 24 hours after the start of the physical

transfer, the date and time of the start of physical transfer from the production facility or import facility.

(2) A producer or importer may report an actual volume

that is less than the estimated volume, as long as notification of the actual volume is received by the Executive Officer no later than 48 hours after completion of

the physical transfer of the final blend from the production facility or import facility. If notification of the actual volume is not timely received by the Executive Officer, the reported estimated volume shall be deemed

the reported actual volume. If the actual volume is larger than initially estimated, the producer or importer

shall revise the reported estimated volume by notifying

the Executive Officer no later than 24 hours after completion of the physical transfer of the final blend from

the production facility or import facility.

(i) Notification of permeation offsets

(1) Vehicle scrappage. The producer or importer shall

notify the Executive Officer in writing as provided in

the AERP or third party AERP with all documentation,

calculations, emissions test data, and other information

that establishes the amount of NOx, total ozone forming

potential, and potency-weighted toxics associated with

the vehicle scrappage and the date(s) the offsets accrued.

(2) Fuels. Except as otherwise provided, the producer or

importer shall notify the Executive Officer in writing as

provided in the AERP or third party AERP, for receipt

by the Executive Officer before the start of physical

transfer of the gasoline from the production facility or

import facility, and in no case less than 12 hours before

the producer or importer either completes physical

transfer or commingles the final blend, with the information in subsection (h)(1) as they relate to other batches

of California gasoline or diesel fuel used to offset the

emissions associated with permeation.

(3) Incentive grants. The producer or importer shall notify the Executive Officer in writing as provided in the

AERP or third party AERP with all documentation, calculations, emissions test data, and other information that

establishes the amount of NOx, total ozone forming potential, and potency-weighted toxics associated with the

incentive grants for cleaner-than-required engines,

equipment and other sources of pollution providing

early or extra emission reductions and the date(s) the

offsets accrued.

(4) Other reduction strategies. The producer or importer

shall notify the Executive Officer in writing as provided

in the AERP or third party AERP with all documentation, calculations, emissions test data, and other information that establishes the amount of NOx, total ozone

13 CA ADC § 2265.5 Page 6

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
forming potential, and potency-weighted toxics associated with the reduction strategy and the date(s) the offsets accrued.

<General Materials (GM) - References, Annotations, or

Tables>

Note: Authority cited: Sections 39600, 39601, 43013,

43013.1, 43018 and 43101, Health and Safety Code;

and Western Oil and Gas Ass'n. v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975). Reference: Sections 39000, 39001, 39002,

39003, 39010, 39500, 39515, 39516, 41511, 43000,

43013, 43013.1, 43016, 43018 and 43101, Health and

Safety Code; and Western Oil and Gas Ass'n. v. Orange

County Air Pollution Control District, 14 Cal.3d 411,

121 Cal.Rptr. 249 (1975).

HISTORY

1. New section filed 8-29-2008; operative 8-29-2008 pursuant to Government

Code section 11343.4 (Register 2008, No. 35).

13 CCR § 2265.5, 13 CA ADC § 2265.5

13 CA ADC § 2265.5

END OF DOCUMENT

13 CA ADC § 2265.5 Page 7

13 CCR § 2265.5

Cal. Admin. Code tit. 13, § 2265.5

© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.