### Technical Support Document

For

Texas Low Emission Diesel Fuel Rule Revisions March 6, 2013

Sandra Rennie

The Texas Low-Emission Diesel Fuel program was initially approved on November 14, 2001 (66 FR 57196). It was revised on April 6, 2005 ( 70 FR 17321), October 6, 2005 (70 FR 58325), and October 24, 2008 (73 FR 63378).

The current SIP approved state regulations for Texas Low Emission Diesel (TxLED) under Chapter 114 require that all diesel fuel as defined under §114.6(7) that is sold or supplied for use in a compression-ignition engine operating in any of th e 110 central and eastern Texas counties listed in §114.319(b) must comply with the specifications for aromatic hydrocarbons and cetane number as listed in §114.312 or one of the other compliance options liste d under this section. This regulation includes all

diesel used as fuel for on-road motor vehicles and non-road equipment. The TxLED regulations also apply to marine distillate fuels, i. e., Marine Distillate fuel X (DMX), Marine Distillate fuel A (DMA), and Marine Gas Oil (MGO), when these marine distil late fuels are used in the 1997 Houston-GalvestonBrazoria (HGB) ozone nonattainment area counties of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Wa ller. Diesel fuel producers are al so allowed to produce TxLED in

accordance with an alternative emission reduction plan (AERP) as specified under §114.318. TxLED producers and importers are require d to register with the TCEQ as specified under §114.314 and to submit quarterly reports to the TCEQ as sp ecified under §114.316. There are 112 producers and importers currently registered under the TxLED program, as of the adoption da te. The total nitrogen oxides (NO

x 

### ) emission reduction benefit from TxLED in 2018 from all 110 counties currently regulated is estimated to be approximately 5.62 tons per da y (tpd) from on-road vehicle use and 7.54 tpd from non-road equipment use. The estimated NO

x 

### emission reduction benefit in 2018 from TxLED marine diesel in the 1997 eight county HGB ozone nona ttainment area is approximately 0.89 tpd.

Texas submitted revisions to the Texas Low Emission Diesel Fuel rules in a letter dated September 19, 2012. The rulemaking, adopted Augus t 22, 2012, revises definiti ons; establishes new designated alternative limits for TxLED fuel propert ies; removes expired regi stration requirements and establishes new registration requirements for iden tifying production and impor t facilities; revises approval procedures for alternative diesel fuel formul ations; specifies that the approvals of all additivebased alternative diesel fuel formulations will be s ubject to revocation if the composition of the additive is found to be altered; allows all alternative diesel formulations approved by the TCEQ prior to April 1, 2012, to remain in effect; revises reporting require ments to include production and import facility data; requires alternative emission reduc tion plans using the Unified Mode l to determine compliance each calendar quarter; removes expired early gasoline su lfur reduction credits pr ovisions; and makes other clarifying changes as needed for accuracy and consistency.

Analysis of the Adopted Rule Revisions in Chapter 114

§114.6 Definitions. The following changes in the defi nitions are all approvable because they do not relax the approved SIP.
§114.6. Low Emission Fuel Definitions. Unless specifically defined in Texas Health and Safety Code , Chapter 382, also known as the Texas Clean Air Act (TCAA), or in the rules of the commission, the terms used in this subchapter have the meanings commonly ascribed to them in the field of air pollution control. In addition to the terms that are defined by TCAA, §3.2, and§ 101.1 of this title (relating toDefinitions), the [following ] words and terms specified in this section, when used in Subchapter H of this chapter (relating to Low Emission Fuels), have the [following ] meanings as defined in this section, un less the context clearly indicates otherwise.



### (1) Additive- revises the definition so it does not refer to a “motor vehicle fuel” system because the term motor vehicle fuel is being repealed. Instea d it refers to gasoline or diesel fuel, which are terms already defined in this secti on. This revision is approvable.
1) Additive·· Any substance that is intentionally added to gasoline or diesel fuel for the purpose of producing a gasoline or diesel fuel in compliance with the requirements of Subchapter H of this chapter [including any added to a motor vehicle fuel system, and that is not intentionally removed prior to sale or use and ] that is:



### (A) Minor language changes for clarific ation. This revision is approvable.

( A) a registered additive with the United States En vironmental Protection Agency (EPA) in accordance with 40 Code of Federal Regulations (CFR) Part 79 (relating to Registration of Fuels and Fuel Additives) ; or



### (B) Removes language from the SIP-approved rule that refers to substances added for the purpose of reducing exhaust emissions, leaving only the criteria of being exempt from EPA registration. The adopted language is a change from what was proposed, but did substantively revise this s ubsection. By removing this language, the rule clearly no longer regulates biodiesel as an additiv e to TxLED. Biodiesel does not reduce exhaust emissions, however a biodiesel blend must still be made with a TxLED that meets the requirements in 114.312 (Low Emission Diesel Standards). The rule was

revised to accommodate/allow the use of bi odiesel to meet Federal Renewable Fuel Standard obligations. This revision is approvable. See further explanation under 114.315(d).
(B) added to gasoline or diesel for the purpose of reduc ing exhaust emissions from motor vehicles

or non

- road equipment and is exempted from the EPA registration requirements in accordance with 40 CFR [Code of Federal Regulations ] Part 79.



### (2) Barrel – no change
Barrel--A unit of measure equal to 42 United States galIons.



### (3) bulk plant – removes the reference to motor vehicle fuel and replaces it with references to gasoline or diesel fuel as needed for consiste ncy and clarity. This revi sion is approvable.

Bulk plant--An intermediate gasoline or diesel [motor vehicle ] fuel distribution facility where gasoline or diesel fuel is stored and then transported for delivery to a bulk purchaser/consumer or retail fuel dispensing facility [ delivery of motor

vehicle fuel to and from the facility is soley by truck or pipeline ].

(4) 

### Bulk purchaser/consumer - removes the reference to motor vehicle fuel and replaces it with references to gasoline or diesel fuel as needed for consistency and clarity.
Bulk purchaser/consumer--A person who purchases or otherwise obtains gasoline or diesel [motor vehicle ] fuel in bulk and then dispenses it into the fuel tanks of motor vehicles owned or operated by the person

.



### (5) Common carrier – no change
Common carrier--A person engaged in the transportation of goods or products of another person for compensation and is available to the public for hire.



### (6) Designated alternative limits - repeals the definition as needed for consistency with the adopted new §114.313, which we find can be approved (below). This revision is approvable. In the new 114.313 the DAL is defined differently fr om what was in this definition.Desig n ated alte rn ative limits

-- An alternative specification limit for a sp ecific fuel standa rd, which is ass igned by a producer or importer to a final bland of lo w emission diesel fuel (LED) in accordance with §114.313 o f this title (relating to Designated Alternative Limits).]



### (7) Diesel fuel– renumbers this to (6). Clarifies the de finition to say it is a middle distillate fuel used in compression-ignition in ternal combustion engines. Th is revision is approvable.

[7 ] (6) Diesel fuel--Any middle distillate fuel used in compression-ignition internal combustion engines that is commonly or commercially known, sold, or represented as:



### (A) Removes the phrase “except for lubricity” keeping the reference to ASTM D975 intact, and changes “and” to “or”. The s econd choice under (B) is marine distillate fuel X (DMX), which is used in a diffe rent application. These changes are approvable.

( A) Grade No. 1-D or Grade No. 2-D di esel fuel, in accordance with the active version of American Society for Testing and Materials (ASTM) D975 (Standard Specification for Diesel Fu el Oils) [except for lubricity ]; or [and ]



### (B) No change.
(B) Marine Distillate fuel X (DMX), Marine Distillate fuel A (DMA), or Marine Gas Oil (MGO) diesel fuel in accordance with the active version of the International Organization for Standa rdization (ISO) 8217 Specifications of Marine

Fuels.



### (8) Final blend – Renumbers this to (7). Clarifies the definition by rewriting using the same or similar terms. This revision is approvable.

[8 ] (7) Final blend--A distinct quantity of [low emissio n ] diesel fuel [LED ] that is introduced into commerce as low emission diesel fuel (LED) , without further process [alteration, which would tend to affect a regulated specification of LED ].



### (9) Further process – Renumbered this to (8). Clarifies the definition by rewriting and at the same time removing the term motor vehicle fuel and repl acing it with gasoline or diesel as needed for consistency and clarity. Adds a timeframe aspect to the definition by indi cating this takes place prior to the fuel being intr oduced into commerce. This revision is approvable.

[(9) ] (8) Further' process·· To perform any alteration to [activity on ] diesel [motor vehicle ] fuel, including distillation, treating with hydrogen, blending, or addition of an [approved ] additive, for the purpose of producing a diesel fuel

in [bringing the motor vehicle fuel into ] compliance with the requirements of Subchapter H, Division 2 of this chapter prior to the diesel fuel being in troduced into commerce as LED

.



### (10) Gasoline – Renumbers this to (9). Clarifies the definition by providing a more generic description and location of the ASTM designation. This rule will not ha ve to be revised every time ASTM D4814 is revised. People will have to us e the most current version of ASTM D4814. This

revision is more stri ngent and approvable.

[10 ] (9) Gasoline--Any fuel that is commonly or commer cially known, sold, or repr esented as gasoline, in

accordance with the active ve rsion of American Societ y for Testing and Materi als (ASTM) D4814 [D4814

- 99 ] (Standard Specification for Automotive Spark-Ignition Engine Fuel) [, dated 1999 ].

(11) 

### Import - Renumbers this to (10). Removes the refere nce to motor vehicle fuel and replaces it with gasoline or diesel as needed for consistenc y and clarity. This re vision is approvable..

[11 ] (10) Import·-The process by which gasoline or diesel [motor vehicle ] fuel is transported into the State of Texas by any means or method whatsoever, including transport via pipeline, railway, truck, motor vehicle, barge, boat, or railway tank car.



### (12) Import facility – Renumbers this to (11). Removes th e references to motor vehicle fuel and replaces them with gasoline or diesel as needed for consistency and clarity. Adds the category of bulk purchaser/consumer for added clarification of u ltimate destination. This revision is approvable.[12 ] (11) Import facility--The stationary gasoline or diesel [motor vehicle ] fuel transfer point wherein the importer takes delivery of imported gasoline or diesel [motor vehicle ] fuel and from which imported gasoline or diesel [motor vehicle ] fuel is transferred into the cargo tank truck, pipeline, or ot her delivery vessel from which the fuel will be delivered to a bu lk plant, bulk purchaser/consumer , or retail fuel dispensing facility.



### (13) Importer – Renumbers this to (12). Removes the refere nce to motor vehicle fuel and replaces it with gasoline or diesel as needed for consiste ncy and clarity. This re vision is approvable.

[13 ] (12) Importer--Any person, except a person acting as a common carrier, who imports gasoline or diesel [motor

vehicle ] fuel.



### (14) Low emission diesel fuel (LED ) – Renumbers this to (13). Removes the subparagraphs (A)-(C), but replaces them with an expanded explanati on in the main paragraph. The reference to 114.312 covers all the conditions previously listed in subp aragraphs (A)-(C). This revision is approvable.

[ 14 ] (13) Low emission diesel fuel (L ED)--Any diesel fuel that conforms to the requirements specified in §§114.312, 114.313, or 114.318 of this title (relating to Low Em ission Diesel Standards; Designated Alternative Limits; or Alternative Emission Reduction Plan, respectively). [: ] [(A) sold, intended for sale, or made available for sale that m ay ultimately be used to power a diesel fueled compression

ignition engine in the counties listed in §114.319 of th is title (relating to Affected Counties and Compliance Dates ;] [(B) that the producer know, or reasonably should know, may ultimately b e used to power a diesel fueled compression ignition engine in counties listed in §114.319 of this title; and ] [(C) compl ies with the standards specified in §114.312 of this title (re lating to Low Emission Diesel Sta n dards).]



### (15) Motor Vehicle – Renumbers this to (14). Clarifies that the engines referred to are internal combustion engines. Expands TCC to read Texas Tr ansportation Code. Update s the citations to the Texas Transportation Code for consis tency. This revision is approvable.

[(15 )] (14) Motor vehicle-Any self-propelled device powered by a gasoline fueled spark-ignition internal combustion engine or a diesel fueled compression-ignition internal combustion engine in or by which a person or property is or may be transported, and is required to be registered under Texas Transportation Code [TTC ], §502.040, excluding vehicles registered under Texas Transportation Code, §502.140 [TTC §502.006(c )].



### (16) Motor vehicle fuel - repeals the definition of motor vehicle fuel . This term is replaced by the terms gasoline or diesel fuel that are defined elsewhere in this lis t of definitions. This revision is approvable.

[(16) Motor vehicle fuel

– any gasoline or diesel fuel used to power gasoline fueled spark

- ignition or diesel fueled compression

- ignition engines .]



### (17) Non-road equipment – Renumbers this to (15). Clarifies th at the engines referred to are internal combustion engines. Updates the citations to the Texas Transportation Code for consistency. This revision is approvable.

[(17) ] (15) Non-road equipment--Any device powered by a gasoline fueled spark-ignition internal combustion engine or a diesel fueled compression-ignition internal combustion engine that is not required to be registered under Texas Transportation Code, §502.040.



### (18) Produce – Renumbers this to (16). Removes the term motor vehicle fuel a nd replaces it with gasoline or diesel fuel as needed for consiste ncy and clarity. Simplifie s the definition while retaining the intent of the original definition. This revi sion is approvable.

[(18 )] (16) Produce--Perform the process to convert liquid compounds [that are not motor vehicle fuel ] into gasoline

or diesel [motor vehicle ] fuel or to further process diesel fuel to create a final blend of LED [, except where a person supplies motor vehicle fuel to a producer who agrees in writing to further process the motor vehicle fuel at the production facility a nd

to be treated as a producer of the motor vehicle fuel, only the final producer shall be deemed for all purposes under Subchapter H of this chapter to be the producer of the motor vehicle fuel ].



### (19) Producer – Renumbers this to (17). Replaces the term motor vehicle fuel with gasoline or diesel as needed for consistency and clarity . This revision is approvable.[(19 )] (17) Producer--Any person who owns, leases, operate s, controls, or supervises a production facility that [and/or ] produces gasoline or diesel [motor vehicle ] fuel.



### (20) Production facility – Renumbers this to (18). Replaces the term motor vehicle fuel with gasoline or diesel as needed for consistency and clarity. This revision is approvable.

[(20) ] (18) Production facility-Any [A ] facility where gasoline or diesel [at which motor vehicle ] fuel is produced or that manufactures liquid fuels by distilling petroleum.



### (21) Retail fuel dispensing outlet – Renumbers this to (19). Adds that this also can include non-road equipment. This revision is approvable.

[(21) ] (19) Retail fuel dispensing outlet - Any establishment where [at which ] gasoline and/or diesel fuel is sold or offered for sale for use in motor vehicles and/or non-road equipment , and the fuel is directly dispensed into the fuel tanks of the motor vehicles and/or non-road equipment using the fuel.



### (22) Supply – Renumbers this to (20). Clar ifies that the fuel be gasolin e or diesel. This revision is approvable.

[(22 )] (20) Supply--To provide or transfer gasoline or diesel fuel to a physically separate facility, vehicle, or transportation system.



### §114.312 Low Emission Diesel Standards. Makes changes needed for accuracy and consistency with the adopted changes to §114.313 and §114.315 which we find we can approve (see below); removes language limiting the acceptance of CARB-approved alternative diesel fuel formulations to only those approved on or before January 18, 2005, in order to allow the use of new alternative diesel fuel formulations approved by CARB in the future; and cites the current effective date of the California diesel fuel regulations relevant to this secti on. The following changes are all approvable because they do not relax the approved SIP.

(a) Renumbering has taken place in which subsections (b) and (c) are renumbered as paragraphs (1) and (2) under (a). The subparagr aphs under (1) [formerly (b)] have been eliminated, and the designated alternative limits are now entirely addressed in new § 114.313. The revision in (a) updates the reference to the correct renumbering scheme.
(a) No person shall sell, offer for sale, supply, or of fer for supply, dispense, tr ansfer, allow the transfer, place, store, or hold any diesel fuel in any stationary ta nk, reservoir or other contai ner in the counties listed in §114.319 of this title (relating to Affected Counties and Compliance Dates)[,] that may ultimately be used to power a diesel fueled compression-ignition internal combustion engine in the affected counties[, ] that does not meet [eithe r] the low emission diesel fuel (LED) standards specified in paragraphs (1) and (2) of this subsection. [of subsections (b) and (c) of this section, or the requirements of subsectio n (f) of this section .] (1) [(b) ] The maximum aromatic hydrocarbon content of LED is 10% by volume per gallon. [; or the LED

has been reported in accordance with all of the requiremen t of §114.313 of this title (relating to Designated Alternative Limits, where: ] [(1) the aromati c hydroca rbon content does not exceed the designated alternative limit (DAL);

and ] [(2) the DAL exceeds 10% by volume, the excess aromatic hydrocarbon cont ent is fully offset in accordance with §114 .313 of this title .] (2) [(c )] The minimum cetane nu mber for LED is 48.



### (b) This subsection was formerly numbered as (d). The term diesel fuel is replaced by “final blend of

LED” which is a needed clarifi cation and is more specific.
[(d )] (b ) Subsection (a) of this section does not apply to a sale, offer for sale, or supply of diesel fuel to a producer where the producer further processes the diesel fuel at the producer's production facility prior to any subsequent sale, offer for sale, or supply of the final blend of LED [diesel fuel ].



### (c) This subsection was formerly numbered as (e). This subsection now cites the current effective

date of the California Diesel fuel re gulations relevant to this section.[(e )] Diesel fuel that has been produced to comply with all specifications for a Certified Diesel Fuel Formulation as approved by an executive order by the California Air Resources Board [on or before January 18, 2005 ] for compliance with California diesel fuel regulations that were in effect as of August 4, 2005 , [October 1, 199 3] except for those approved for small refinery compliance, or diesel fuel that has been produced to meet all specifi cations for diesel fuel under regulations adopted by the California Air Resources Board[, except for those approved for small refinery compliance, ] that were in effect as of [January 18, 2005 ]August 4, 2005 , except for those approved for small refinery compliance, may be used to satisfy the requirements of subsection (a) of this section.



### (d) This subsection was formerly numbered as (f). Th is subsection is rewritten to be consistent with changes made to section 114.312 (as discusse d above) and section 114.315 on Test Methods, which we find we can approve (See below).
(d) [(f) ] Alternative diesel fuel formulations that have been approved by [the producer has demonstrated to the

satisfaction of ] the executive director[, through emissions and performance testing methods ] prescribed in §114.315(c) [and (d) ] of this title (relating to Approved Test Methods)[, as achieving comparable or better reductions in emissions of oxides of nitrogen and particulate matte r]may be used to satisfy the requirements of subsection (a) [subsections (b) and (c) ] of this section. [For alternative diesel fuel formulations that incorpo rate additive systems, the estimated emissions benefits of the alternative diesel fuel formulation may be determined by comparing the emissions and performance characteristics of the alternative diesel fuel with the additive sys versus the emissions and pe rformance characteristics of a diesel fuel without the additive system, ad determined by the testing methods prescribed in §114.315( c) and (d) of this title.]



### §114.313. Designated Alternate Limits. (Repealed)

This SIP-approved section is repealed and replaced by a new §114.313 titled Designated Alternative Limits. See the discussion below regarding the new language in this section. 

### The repealed section focuses on the aromatic hydrocarbon content and how much is be ing produced, imported or transferred into the

covered area. As with the sect ion on registration, the focus has sh ifted from how much to what specifically (in this case) is being introduced into th e covered area. This refocus is logical now that the rule is fully implemented and fuel supplies ar e established in the covered area. We find this approach is no less stringent (alt hough different) than what was in the approved SIP and therefore is approvable. The DAL (as was the whole TxLED rule) was modeled after the California rule originally, so repealing the la nguage and using the more specifi c California rule language is acceptable. This repeal and diversio n do not relax the approved SIP. As the state points out, the goal is to encourage more people to take advantage of this option now that the additive testing program and EPA ETV program are no longer available. These revisions further that goal.

(a) A producer or importer may assign a designated alternative limit (DAL) for aromatic hydrocarbon content to a final blend of low emission diesel fuel (LED) produced or imported by the producer or importer, except for that LED produced in accordance with §114 .312(g) of this title (relating to Low Emission Diesel Standards), if the followin g conditions are met. (1) In no case shall the aromatic hydrocarbon content of the final blend shown by the sample and test conducted in accordance with §114.315 of this title (relating to Approved Test Methods) exceed the assigned DAL. (2) The producer or importer shall notify the executive director of the volume (in barrels) and

the DAL of the final blend. This notifi cation shall be received by the executiv e director before the start of physical

transfer of the LED from th e production or import facility , and in no case less than 12 hours before the producer either completes physical transfer of the final blend. (3) Within 90 days before or after the start of physical transfer of any final blend of LED to which a producer or importer has assigned a DAL e xceeding the limit for aromatic hydrocarbon content specified in §114.312(c) of this title, the producer or importer shall complete physical tr ansfer from the production or import facility of LED in sufficient quantity and w ith a DAL sufficiently below the standard specified in §114.312(c) of this title to offset the volume of aromatic hydrocarbons in the LED reported in excess of the standard. (b) No person shall sell, offer for sale, or supply LED, in a final blend to which a producer or importer has

ass igned a DAL: (1) exceeding the standard specified in §114.312(c) of this title for arom atic hydrocarbon content, where the total volume of the final blend sold, offered for sale, or supplied exceeds the volume reported to theexecutive director in accordance with subsection (a)(2) of this section; nor (2) less than the standard specified in §114.312(c) of this title for aromatic hydrocarbon content, where the total volume of the final blend sold, offered for sale, or supplied is less t han the volume reported to the

executive director in accordance with subsection (a)(2) of this section. (c) Whenever the final blend of a producer or importer includes volumes of diesel fuel the producer or importer has produced or imported, and volumes it has not produced or imported, the producer's or importer's DAL shall apply only to the volume of diesel fuel the producer or importer has produced or imported. In such a case, the producer or importer shall report to the executiv e director in accordance w ith subsection (a)(2) of this section, both the volume of diesel fuel produced or imported and the total volume of the final blend.



### §114.313 Designated Alternative Limits.

In the repeal and replacement, the sec tion title is changed to replace the wo rd alternate with alternative. A new §114.313 is adopted that establishes designated alternativ e limits that have the same fuel property limits as currently specified in the California Code of Regulations at 13 CCR §2282(h)(1) to provide additional flexibility to the TxLED program while ensuring equivalent emission reductions. The following changes are all approvable because th ey do not relax the approved SIP. The approved SIP already contains requi rements that allow any CARB diesel to qualify as a TxLED at 114.312(c). Therefore, to restate th e California limits in the Texa s SIP is no less stringent.

§114.313. Designated Alternative Limits. (a) Diesel fuel that has been produced to meet all of the desi gnated alternative limits specified in subsection (b) of this sec tion may be used to satisfy the low emission diesel fuel (LED) requi rements specified In §114.312(a) of this title (relating to Low Emission Diesel Standards). (b) The designated alternative limits per gallon of LED are set forth in paragraphs (1)-(6) of this subsection: (1) An aromatic hydrocarbon content of no greater than 21.0% by weight; (2) A polycyclic aromatic hydrocarbon content of no greater than 3.5% by weight; (3) An American Petroleum Institute gravity index of no less than 36.9; (4) A cetane number of no less than 53; (5) A nitrogen content of no greater than 500 parts per million by weight (ppmw); and (6) A sulfur content of no greater than 15 ppmw. (c) Compliance with the designated alternative limits specified in subsection (b) of this section must be determined by the tes t methods specified in §114. 315(a) of this title (relating to Approved Test Methods).



### §114.314 Registration of Diesel Pro ducers and Importers. Expired registration requirements are removed. This section now requires all new producer s and importers to regist er by no later than 45 days after the first date that they begin to pr ovide TxLED to the affect ed counties. It requires producers and importers to provide information on each production facility and import facility from which TxLED is produced or imported, and makes ot her clarifying changes as needed to enhance and simplify the registration process. The following changes are all approvable because they do not relax the approved SIP.

(a) The verb tense is changed from past tense to present tense. The subsection is rewritten to broaden the applicabil ity of the registration requirement to in clude transfer and storage of diesel

fuel in the affected counties and to specify the type of use of the fuel (to power a diesel fueled compression-ignition internal combustion engine). The applicability date of “on or before April 1, 2005” is removed and the registration deadline is changed from before May 1, 2005, to no later than 45 days after the first date that the fuel is available for use. Th is revision is approvable.
(a) Each producer and importer that sells, offers for sale, supp lies, offers to supply, dispen ses, transfers, allows the transfer, places, stores, or holds any diesel fuel in any stationary tank, reservoir, or other container in the affected counti es listed in §114.319 of this title (relating to Affected Counties an d Compliance Dates) that may ultimately be used to power a diesel fueled compression-ignition internal combus tion engine in the affected counties listed in § 114.319 of this title shall register with the executive director by no later than 45 days after the first date the diesel fuel from its production facility orimport facility is made available for use in the affected counties listed in § 114.319 of this title. [sold, offered for sale, supplie d, or offered for supply diesel fuel from its production facility or import facility that may have been used in counties

listed in § 114.319 of this title (relating to Affected Counties and Compliance Dates) on or before April 1, 2005, shall register

with the executive directory by May 1, 2005 ].



### (b) This subsection is deleted and the text following is renumbered. The deleted text is no longer relevant because it ties an activity to a date that has passed. Registra tion timing requirements are adequately covered in revised subsection (a). This deleted text was relevant when the rule was adopted and not fully implemented. Now that the rule is fully implemented, the deleted text is no longer meaningful or necessary.
[(b) Each producer or importer that did no t begin to sell, offer for sale, supply or offer to supply diesel fuel from its production facility or import facility that may ultimately be used in counties listed in § 114.319 of this title until after April 1, 2005, shall register with the executive director at least 30 days prior to the first date the diesel fuel is to be made available for

use in the listed counties ].



### (c) This subsection is renumbered to (b). The s ubparagraphs (1)-(5) contain updated requirements

for what must be included in the registration information. Pa ragraph (1) now requires basic contact information about the producer or importe r. The concept in former paragraph (3) now appears in paragraph (2). Former paragraph (2), which required a statement of the number of barrels imported in the previous 12 months, is deleted because the full implementation of the program has made this requirement moot. Paragr aph (3) now requires basic contact information about the production or import facility. Formerparagraph (4) is deleted because it crossreferences to a past date in former §114.319(c)(1 ) that is no longer relevant. The substance of former paragraph (5) is now moved to paragrap h (4). The concept in paragraph (6) is now moved to paragraph (5) and contains improved sp ecificity concerning the applicability of the requirement.
(b) [(c) ] Registration must be submitted on forms prescribed by the executive director and must include, at a minimum, the information specified in paragraphs (1) - (5) of this subsection: (1) the legal business name of the producer or importer, mailing address, agency assigned customer reference number, and contact information for the produc er or importer, or their authorized representative; [a signed statement indicating whether the producer or importer does or does not intend to produce or import low emission diesel for

use in the counties listed in § 114.31 9 of this title on or after October 1, 2005] ;- (2) a statement of the estimated total number of barre ls of low emission diesel fuel that the producer or importer is planning to produce or import in the 12 months following the date of registration that the producer or importer intends to sell, offer for sale, supply, or offer to supply from its production facility or import facility [total number of barrels of diesel fuel produced or imported in the 12 months prior to the date of registration that the pr oducer or importer sold, offered for sale, supplied, or offered for supply from its production facility or import facility that was intended ] for use in the counties listed in §114.319 of this title; (3) the physical address, agency assigned regulated entity reference number, and contact information for each production facility or im port facility that is used to pr oduce or import diesel fuel that may be sold, offered for sale, supplied, or offered for supply [if appropriate, a statement of the estimated t otal number of barrels of low emission diesel that the producer or importer is planning to produce or import in the 12 months following the compliance date listed in §114.319(c)(1) of this title that the producer or importer intends to sell, offer for sale , supply, or offer to supply from its production facility or import facility ] for use in the affected counties listed in §114.319 of this title; [(4) if appropriate, a statement of the estimated total number of barrels of diesel fuel that the producer o r importer is planning to produce or import under an alternativ e emission reduction plan under §114.318 of this title (relating to Alternative Emission Reduction Plan) in the 12 month following the compliance date listed in 114§.319(c)(1) of this title tha t the producer or importer intends to sell, offer for sale, supply , or offer to supply from its production facility or import f acility for use in the counties listed 1§14.319 of this title; ] (4) [(5 )] any other information determined by the executive director to be necessary to identify the persons responsible for [determine ] the adequacy of diesel supply in the affected counties; and (5) [(6 )] a signed statement of consent by the registrant th at the executive director is permitted to collect samples and access documentation and records at any production facility or import facility used to produce or import diesel fuel that may ultimately be used to pow er a diesel fueled compression-ignition in ternal combustion engine in the counties listed in § 114.319 of this title

.

### (d) This subsection is renumbered to (c).
(c)[(d )] The executive director shall maintain a listin g of all registered producers and importers.



### §114.315 Approved Test Methods. This section is amended to remove the supplementary test methods for viscosity and flash point in su bsection (a); to remove the alte rnative diesel formulation test procedures in subsection (c) and the option for tes ting alternative diesel fuel formulations through EPA's ETV program, which EPA has discontinued, in subsection (d). Alternative diesel fuel formulations will only be approved through the provision currently specified under subsection §114.312(d) for using the EPA's Unified Model. It spec ifies that the approvals of all additive-based alternative diesel fuel formulations approved prior to April 1, 2012, and thereaf ter, will be subject to revocation if the composition of the additive is found to be altered; and it adds a subsection (e) to allow all alternative diesel formulations approved by the TCEQ prior to April 1, 2012, to remain in effect. The following changes are all approvable because they do not relax the approved SIP.

(a) The revisions make non-substantive changes to th is paragraph for consistency. Paragraphs (5) and (6) have been deleted. These paragraphs contained the supplementary test methods for viscosity and flash point and were deleted in order to be consis tent with deletions in 114.315(c), discussed below. Removing the supplementary te st methods for viscosity and flashpoint that were in paragraphs (5) and (6) does not weaken the SIP because these test methods, plus those for aromatic hydrocarbons, polycyclic aromatic hydrocarbons, nitrogen content and gravity index, are listed as alternatives to the test met hods and procedures specif ied in the active version of ASTM D975, which is part of the approved SIP. Paragraph (7) is then renumbered to paragraph (5).
(a) Compliance with the diesel fuel content requirements of this division must be determined by applying the appropriate test methods and procedures specified in the active version of American Society for Testing and Materials (ASTM) D975 (Standard Specification for Diesel Fuel Oils), or by applying the [the following ] supplementary test methods and procedures specified in paragr aphs (1) – (5) of this subsection , as appropriate. (1) The aromatic hydrocarbon content may be determined by the active version of ASTM Test Method D5186 (Standard Test Method for Determination of Aromatic Content and Polynuclear Aromatic Content of Diesel Fuels and Aviation Turbine Fuels by Supercritical Fluid Chromatography). The following correlation equation must be used to convert the supercritical flui d chromatography (SFC) results in mass percent to volume percent: aromatic hydrocarbons expressed in percent by volume = 0.916 x (aromatic hydrocarbons expressed in percent by weight) +

1.33. (2) The polycyclic aromatic hydrocarbon (also referred to as polynuclear aromatic hydrocarbons or PAH) content may be determined by the active version of ASTM Test Me thod D5186 (Standard Test Method for Determination of Aromatic Content and Polynuclear Aromatic Content of Diesel Fuels and Aviation Turbine Fuels by Supercritical Fluid Chromatography). The correlation equation specified in paragraph (1) of this subsection must be used to convert the SFC results in mass percent to volume percent. (3) The nitrogen content may be determined by the active version of ASTM Test Method D4629 (Standard Test Method for Trace Nitrogen in Liquid Petroleum Hydrocarbons by SyringeIInlet Oxidative Combustion and Chemiluminescence Detection). (4) The American Petroleum Institute (API) gravity index may be determined by the active version of ASTM Test Method D287 (Standard Test Method for API Gravity of Crude Petroleum and Petroleum Products (Hydrometer Method)). [(5) The viscosity may be determined by the active version of ASTM Test Method D445 (Standard Test Method for Kinematic Viscosity of Transparent and Opaque Liquids (the Calculation o f Dynamic Viscosity)). (6) The flashpoint may be determined by the active versio n of ASTM Test Method D93 (Standard Test Methods for

Flash

- Point by Pesky

- Martens Closed Cup Tester). ] (5) [(7) ] The distillation temperatures may be determined by the active version of ASTM Test Method D86 (Standard Test Method for Distillation of Petroleum Products at Atmospheric Pressure).



### (b) No change.(b) Modifications to the testing methods and procedures in this section may be approved by the executive director after consultation with and agreement by the Unite d States Environmental Pr otection Agency (EPA).



### (c) This subsection has major changes because th e test methodologies included for testing an

alternative fuel formulation have been remove d and the substance of subsection (d) has been moved to subsection (c). 1 

### The deleted portions of subsection (c) are not presented here because they are extensive. Please refer to the state’ s proposal for the deleted portions. The approval and review process in subsection (c ) resulted in fiscal and staff resource challenges for the TCEQ. The TCEQ needed to validate the emissions testing data and to physically observe the emissions testing performed for approval, at a cost to the TCEQ of approximately $20,000 per application.

The revisions remove the alternative diesel fuel formulation test procedures in subsection (c) and the option previously under subs ection (d) for allowing the testi ng of these formulations through EPA’s Environmental Technology Verification (ETV) Program, which EPA has discontinued. No new alternative fuel formulations will be ap proved through the state’s testing program, and existing alternative fuel formulations are gr andfathered under new s ubsection (e) discussed below. The approval option in revised subsectio n (c) (previously in subsection (d)), which specifies criteria for using the Unified Model that EPA developed specifically for the TxLED program, is now the State’s only method for approving alternative diesel formulations. Acceptance of alternative diesel formulati ons approved by CARB as allowed under §114.312(e) is also permitted. The State’s elimination of test methodologies does not interfere with attainment and reasonable further progre ss of the NAAQS or any other applicable requirement of the CAA because the criteria for TCEQ appr oval in the revised requirement are adequate to prevent interference. Further, th e deleted test methodologies are not required by the Clean Air Act or other Federal regulations. The revisions greatly lessen the TCEQ's fiscal and staff resource needs in the physical testing aspect s of the alternative diesel formulation approval process. The revisions will likewise conserve EPA resources because we play an integral role in the state’s approval process. EPA retains a conc urrent role in the a pproval of any future alternative fuel formulation that may be presente d to the state for approval. These revisions are approvable.

In place of the testing program, new language allows the state to approve an alternative diesel fuel formulation under new 114.312(d) [formerly numbered subsection 114.312(f)]. Subsection (c) has new paragraphs (1)-(3) and new subparagraphs (3)(A) and (B). These s ubparagraphs delineate criteria for fuel performance that must be met to be approved by the state. These criteria are defined by EPA’s Unified Model that can be used to refine an alternative formulation of TxLED.
(c) The executive director, upon application, may approve alte rnative diesel fuel formulat ions as prescribed under § 114.312(d ) [(f )] of this title (relating to Low Emission Diesel Standards) that may be used to satisfy the low emission diesel fuel (LED) requirements specified in §114. 312(a) of this title if the applicant has demonstrated to the satisfaction of the

executive director and the EPA in accordance with the procedures specified in para graph (1) of this subsection that the

alternative diesel fuel formul ation will achieve equivalent or better reductions in emissions of nitrogen oxides (NO X ) [in

accordance with the following procedures ]. (1) The applicant shall submit documentation demonstrating that the applicable fuel properties of the

alternative diesel fuel formula tion demonstrate at least a 5.5% reduction in NO X , emissions from on-road diesel fuel for the year 2007, and at least a 6.2% reduction in NO X , emissions from non-road diesel fuel, using the Unified Model as described in the EPA staff discussion document, Strategies and Issues in Correlating Diesel Fuel Properties with Emissions, Publication Number EPA420-P-01-001, published July 2001.

1 Note that in addition to NO X , subsection (d) previously pertained to emissions of particulate matter (PM). The original TxLED program contained sulfur standards, which regulated sulfur dioxide (SO 2 ) and PM. However, EPA approved the removal of the sulfur standard in 2005 (70 FR 58325) because the federal ultra-low sulfur diesel standards adequately reduce sulfur in diesel fuels. Therefore, remova l of the reference to PM is appropriate an d consistent with the current SIP-approved TxLED requirements.(2) For alternative diesel fuel fo rmulations that achieve emission redu ctions as demonstrated in accordance with the criteria specified in paragraph (1) of this subsectio n, the applicant shall provide documentation to the executive director upon application that includes the cetane number, aromatic hydrocarbon content, specific gravity, and the temperature corresponding to the 50% point on the distillation curve in degrees Fahrenheit (T 50 ) of the alternative diesel fuel formulation for which the applicant is re questing approval as determined in accord ance with the test methods and procedures specified in subsection (a) of this section. (3) If the alternative diesel fuel formulation has been demonstrated to the satisfaction of the executive director and the EPA to achieve comparable or better reductions in emissions of NO X in accordance with paragraph (1) of this subsection, then the executive director ma y issue a notice of approval indicating that the alternative diesel fuel formulation may be used to satisfy the LED requir ements of §114.312(a) of this title. (A) The approval notification must identify the specifications of the alternative diesel fuel formulation as approved under this subsection by listing the cetane number, aromatic hydrocarbon content, specific gravity, and the temperature corresponding to the 50% point on the distillation curve in degrees Fahrenheit (T 50 ) of the alternativediesel fuel formulation as documented in paragraph (2) of this subsection. (B) The approval notification must assign an identification number to the specific approved

alternative diesel fuel formulation.


### That the final blends of alternative fuel form ulations no longer must be sampled and tested under 114.315(c), makes sense because the testing provisions have been removed from the rule. No new alternative fuel formulations will be approved through the state’s testing program, and existing

alternative fuel formulations are grandfathered under this rule change. Those formulations approved by CARB or refined using the EPA Unified Mode l will be considered TxLED without further testing, and will be approvabl e under 114.315(c) and (d).

(d) Subsection (d) has been completely rewritten. The documentation requirements previously

set out in this subsection are now cove red in subsection (c) discussed above. Revised subsection (d) is devoted to discussing how approval of an alternative fuel formula tion can be revoked by the executive

director if it is found that the form ulation has been altered so that it no longer matches the formulation as it was previously approved. The de leted language in paragraphs 1-4 is not shown here. Please refer to the state’s proposal for th ose deleted paragraphs.
(d) Approval of any additive-based alternative diesel fuel fo rmulation as prescribed under this section prior to April 1, 2012, and thereafter is subject to revocation if the execu tive director determines that the composition of the additive component of the approved alternative dies el fuel formulation has been altered so that it no longer matches the composition of the additive as originally approved. If the executive direct or revokes the approval of an additive-based alternative diesel formulation, producers using the alternative diesel formulati on to satisfy the LED requirements of § 114.312(a) of this title must discontinue all use of the alternative diesel formulation within 45 days of the date of revocation. [Notwithstanding subsection (c) of this section, the executive director, upon app lication, may approve the altern ative diesel fuel formulation s as prescribed under 114.312(f) of this title that may be used to satisfy the requirements of 114.312(b) and (c) of this title of the applicant has demonstrated to the satisfaction of the execu tive director and the EPA that the formulation will achieve comparable or better reductions in emissio ns of NOx and PM .]



### EPA commented that the only provision to remove an additive from the approved list is if the manufacturer changes the formulation. We asked th e TCEQ to explain how this change would be determined. In the response to comments section, the state says, The TCEQ can periodically request the EPA pr ovide copies of the most current EPA fuel additive registration letters for all of the ad ditives used in the TCEQ-approved alternative diesel formations to determine if any changes have been made to their additive compositions. The approval notifications of all TCEQ-approved alternative diesel fuel formulations specify the EPA fuel additive registration number and additive name as registered with the EPA in

accordance with 40 CFR Part 79 for the additive used in the emissions testing of the approved formulation. Any change to the chemical compos ition of a registered fuel additive requires the additive manufacturer to notify the EPA with th e changes. If the EPA determines the changes are significant, the altered fuel additive will be required to have a new registration with the EPA, which will result in a new registration nu mber being issued for the altered additive.

### Consequently, since the original additive specification in the TCEQ-issued approval notification would no longer be valid, the TCEQ would then have justification to revoke the approval of the alternative diesel fuel formulation. The commission made no changes to the rules in response to this comment. 

### The approved SIP had no specific language a ddressing revocation. The SIP depended on the language in 114.312(a) as the primary compliance mechanism. While the TCEQ’s response to EPA’s comment does not explain what would prompt the TCEQ to request copies of the most

current EPA fuel additive registration letters, this revocation provision is more stringent than the approved SIP.

As a result of these revisions, the biodiesel blen ds are no longer regulated. Biodiesel is no longer

considered a fuel additive because it is not intent ionally added to diesel fuel for the purpose of producing a diesel fuel in compliance with the requi rements of Subchapter H (Low Emission Fuels), so

a biodiesel blend is not considered an alternative fuel formulation. A ll biodiesel blends must be made using a TxLED diesel fuel, so there may be less of an impact from blending biodiesel into diesel fuel to meet federal renewable fuel standard obligations. TCEQ believes that the market share of biodiesel

blends in the affected area is still not large enough to have a si gnificant impact, if any, on the emission reductions expected from revising this progr am. The total projec ted nitrogen oxides (NO X 

### ) emission

reduction benefit from TxLED in 2018 from all 110 c ounties currently regulated is estimated to be approximately 5.62 tons per day (tpd) from on-road vehicle use and 7.54 tpd from non-road equipment

use. The estimated NO X 

### emission reduction benefit in 2018 from Tx LED marine diesel use in the eightcounty HGB ozone nonattainment area is approxim ately 0.89 tpd. Past projections of emission reductions did not take into account higher NO X 

### from biodiesel blends because of 1) the small portion of the market that they comprised, and 2) the required use of a NO X 

### reducing additive with blends higher than B-5. So, there is no comparison against the 2018 numbers to determine backsliding. The state will be submitting new attainment demonstration SIPs fo r the Houston-Galveston-Brazoria and Dallas-Fort Worth areas in response to the recent designation of these areas to nonattainment under the 2008 ozone

standard. The state will be held accountable for reducing any increa se in emissions that may occur by the decision to not regulate biodiese l as an additive in TxLED as the biodiesel blend market increases along with the Renewable Fuel Standard obligation. For these reasons, these re visions are approvable.

(e) This new subsection grandfathers all alternative fuel formulati ons approved before April 1, 2012. This is a reasonable and necessary addition to the section now that the testing program has ended. This revision is approvable.
(e) All alternative diesel fuel formulations approved by the executive director as prescribed under this section prior to April 1, 2012, may continue to be used to comply with the provisions specified in this division.



### §114.316 Monitoring Recordkeeping, and Reporting Requ irements. Revisions to this section make clarifying changes to the reporti ng requirements as needed for accuracy and consistency with the proposed changes to §§114.313 - 114.315 and 114.318; a nd specifies the sampling and analysis requirements for specific fuel properties for TxLED produced under §§114.312(a), (e), and (f), 114.313, and 114.318. The following changes are all ap provable because they do not relax the approved SIP.

(a) Language is added to this subsect ion to clarify this section’s ap plicability. This revision is approvable.
(a) Every producer or importer that has elected to sell, offe r for sale, supply, or offer for supply low emission diesel fuel (LED) produced at its produc tion facility or imported from its import facility in compliance with the requirements specified in §§114.312,.114.313, or 114. 318 of this title (relating to Low Emission Diesel Standards;Designated Alternative Limits; Altern ative Emission Reduction Plan, respectively) that may ultimately beused in counties listed in§ 114.319 of this title (relating to Affected Counties and Compliance Dates) is subject to the applicable requirements of this section.



### (b) This subsection is rewritten for clarity and to be consistent with the changes made to §§ 

### 114.312, 114.313, 114.318. This revision is approvable.
(b) Each producer or importer of LED [All records relating to low emission diesel (LED) sampling ] must keep

records that declare or demonstr ate that each final blend of LED [ contain a statement declaring whether the aromatic hydrocarbon content of the sample ] conforms to the basic LED standards [standard] as specified in §114.312(a ) [(b )] of this title [relating to Low Emission Diesel Standards) ], to the [a] designatedalternative limits as specified in [limit (DAL) in accordance with ] § 114.313 of this title [relating to De signated Alternative Limits )], to the specifications of a Certified Diesel Fuel Formulation or a diesel fuel [a limit ] as accepted under §114.312(c ) [(e) ] of this title, [or whether the diesel fuel conforms ] to an alternative diesel fuel formulation as approved under §114.312(d ) [(f )] of this title, or to an alternative emission reduction plan as approved under§ 114.318 of this title.



### (c) This subsection is rewritten for clarity and now incorporates the substance of the deleted language from subsections (d) a nd (e) discussed below. A cross -reference to the deleted test methodologies in §114.315(c) has been removed for consistency. New paragraphs (1)-(6) specify what parameters must be tested for and how they are to be tested. Paragraphs (7) and (8) were part of the approved SIP but were numbere d differently. Paragra ph (7) is rewritten for clarity. Paragraph (8) has minor word ch anges for the purpose of clarification.
(c) Each producer or importer of LED [a diesel fuel that conforms to 114.312(a)

- (e) of th is title ] shall collect and analyze [sample and test for the aromatic hydrocarbon content and mi nimum cetane number in each final blend of LED that the producer or importer has produced or imported, by collecting and analyzing ] a representative sample of each final blend of LED produced at its production facility or imported from its import facility for the fuel pr operties specified in paragraphs (l) - (5) of this subsection [diesel fuel taken using the methodologies specified in 114. 3 15 of this title (re lating to Approved Test Methods) ]. (1) The aromatic hydrocarbon content and cetane number must be analyzed for LED produced or imported in accordance with § 114.312(a) of this title usin g the test methods specified in §114.315(a) of this title (relating to Approve d Test Methods), (2) The aromatic hydrocarbon content, cetane number, and/or any other appropriate components specified in the applicable California diesel fuel regulations or the executive order issued by the California Air Resources Board (CARB) must be analyzed for LED produced or imported in acc ordance with §114.312(c) of this title using the test methods specified in § 114.315(a) of this title and if approp riate, the test methods as listed in the executive order issued by CARB. (3) The appropriate components of the alternative diesel fuel formulation as listed in the approval notification issued by the executive director under§ 114.315 of this title must be analyzed for LED produced or imported in accordance with § 114.312(d) of this title using the methodologies specified in§ I14.315(a) of th is title and if appropriate, t he test methods as listed in the approval notification. (4) The aromatic hydrocarbon content, polycyclic aromatic hydrocarbon content, American Petroleum Institute (API) gravity index, cetane number, nitrogen content, and sulfur content must be analyzed for LED produced or imported in accordance with § 114.313 of this title using the test methods specified in §114.315(a) of this title. (5) The aromatic hydrocarbon content, cetane number, specific gravity, and the temperature corresponding to the 50% point on the distillation curve in degrees Fahrenheit (T 50 ) must be analyzed for LE D produced in accordance with§ 114.318(b)(l) of this title using the test methods specified in §114.315(a) of this title. (6) If the final blend of LED required to be analyzed in paragraphs (2) and (3) of this subsection is produced at a production facility with the use of an additive as it is being loaded directly to tanks, pipelines, tank ships, railway tank cars, tank trailers, or fuel delivery trucks, the producer or importer may satisfy the sampling requirements of this subsection by recording the volume of additive and the volume of diesel additized in each final blend of LED as it is produced at the production facility. The analysis of the volume tric record must demonstrate that sufficient additive was added to the final blend of LED to maintain the appropriate additiv e concentration per gallon as listed in the approval notification issued by the executive director or in the executive order issued by the CARB. (7) The producer or importer shall maintain[fo r two years from the date of each sampling ,] records showing the sample date, identity of the final blend sampled, identity of the container or other vessel sampled, volume of the final blend sampled [v olume ], and the fuel properties of each sample as analy zed in accordance with paragraphs (1)- (6) of this subsection as appropriate, for two years from the date each sample was collected [aromatic hydro c ar b on content and

minimum cetane number ]. (8) All LED [diesel fuel ] produced by the producer at its production facilities or imported by the importer from its import facilities and not tested [as LED ] by the producer or importer as required by this subsection [se c tio n ] will bedeemed to exceed the standards specified in §114.312 of this title, unless the producer or importer demonstrates that the LED [diesel fuel ] meets those standards and limits.



### (d) This subsection is a major rewrite. The subjec t of deleted language (sam pling and testing) is now covered in 114.316(c) discussed above. The new language addresses the obligation of the producer or importer to provide records when th e executive director asks for them. This language came from previously approved, and now revised subsection (f). This revision is approvable.
(d) A producer or importer subject to the requirements of this division shall provide to the executive director any records required to be maintained by the producer or importe r in accordance with this secti on within 15 days of a written request from the executive director, if the request is received before expira tion of the period during which the records are required to be maintained. Whenever a producer or importer fails to provide records regarding a final blend of LED in accordance with the requir ements of this section, the final blend of LED will be presumed to have been sold by the producer or importer in violation of the standards specified In §114.312 of this title, to which the producer or importer has elected to be subject. [Each producer or importer of diesel fuel that conforms to 114.312(f) of this title shall sample and test for the appropriate components of the a lternative diesel fuel formulation as listed in the approval notification issued by the executive director under 114.315(c) or (d) of this title in each final blend of LED that the producer or importer has produced or imported, by collecting and analyzing a representative sample of diesel fuel taken from the final blend, using the methodologies specified in 114.315 of this title. If a producer or importer blends the diesel fuel components of the approve d

alternative diesel fuel fo rmulation to produce a fin al blend of LED directly to pipelines , tank ships, railway tank cars, or trucks and trailers, the loading(s) must be sampled and tested for the appropriate components of the alternative diesel fuel

f ormulation as approved by the executive director by the p rod uc er or importer or authorized cont ractor at a rate of one sample and test per 250,000 gallons of LED produced. The producer or importer shall maintain records showing the sample date, identity of blend sampled, container or other vessel sampled, final blend volume and the content of the appropriate fuel

components for two years from the date of each sampling. All diesel fuel produced by the producer or imported by the importer and not tested as LED by the producer or importer as required by this secti on will be deemed to exceed the standards specified in 114.312 of this title, unless the producer or importer demonstrates that the diesel fuel meets those

standards and limits. ]



### (e) This subsection has been completely rewritten. Subsection (e) previously contained sampling and testing requirements for diesel fuel formulations containing additive systems. Testing such formulations is now covered by the revised subsection (c) discussed above. The deleted language is not shown here. Plea se refer to the state’s proposal for the deletions. Language in the new subsection (e) came from previously ap proved, but now revised subsection (g). This requirement has been revised, as shown below fo r purposes of clarification. This revision is approvable.

(e) [(g )] All parties in the distribution chain (i.e., pr oducers, importers, bulk plants, common carriers , [producer, importer, terminals, pipelines, truckers, rail carriers ] and retail fuel dispensing outlets) that supply diesel fuel subject to the requirements specified in [provisions of ] § 114.312 of this title that may ultimately be used in counties listed in §114.319 of this title shall maintain copies or records of product transfer documents for a minimum of two years and shall upon request, make such copi es or records available to representa tives of the commission, United States Environmental Protection Agency, or local air pollution agency having jurisdiction in the area. The product transfer documents must contain, at a minimum, the [following ] information specified in paragraphs (1) -(7) of this

subsection : (1) the date of transfer; (2) the name and address of the transferor; (3) the name and address of the transferee; (4) in the case of transferors or transferees who are producers or importers, the registration number of those persons as assigncd by the commission under §114.314 of this title (relating to Registration of Diesel Producers and Importers); (5) the volume of dies el fuel being transferred; (6) the location of the diesel fuel at the time of transfer; and (7) one of the [following ] certification statements specified in subparagraphs (A), (B), or (C) of this paragraph , as appropriate: (A) "This product is Texas low emission diesel and may be used as fuel for diesel engines in any Texas county requiring the use of low emission diesel fuel."; or(B) "This product may not be used as fuel for diesel engines in any Texas county requiring the use of low emission diesel fuel without further processing.''; or (C) "This product has been produced under a TCEQ approved alternative emission reduction plan and may be used as fuel for diesel engines in any Texas county requiring the use of low emission diesel fuel."



### (f) Language in this subsection was moved from previously approved, but now deleted subsection (i). The submittal revises this language, as shown below. New para graphs (1)-(3) are crafted from some SIP-approved language being deleted in subsection (k). Th ese revisions are approvable.
(f)[(i )] Each producer or importer of LED subject to subsection (a) of this section [electing to sell, offer for sale, supply, or offer to s upply LED in accordance with 114.312 of this title ] shall provide a quarterly summation report to the executive director no later than the 45th day following the end of each [the ] calendar quarter and must maintain a record of the information submitted in the quarterly report for two years from the date of each report . The quarterly report must be submitted on forms prescribed by the executive director and must include [provide ], at a minimum, the information specified in paragraphs (1) - (3) of this subsec tion for each of the producer 's production facilities or for each of the importer's impor t
facilities: [the information re quired to be collected by subsections (c)

– (e), and (h) of this section and a reconciliation of the quarter’s transactions relative to the requirements of subsection (c)

– (e), and (h) of this section Updates or revisions to

estimated transaction volumes r equired by subsections (c)

– (e) of this section must be included in this report .] (l) the total volume of LED produced or imported during the calendar quarter that is subject to the requirements of this section, and if the volume of LED required to be reported in this paragr aph was produced with the use of an additive, the total volume of additive used to produce the LED must also be included In the quarterly report; (2) a reconciliation of the records required in subsectio n (c)(7) of this section fo r each sample collected and analyzed during the calendar quarter; and (3) any other information determined by the executiv e director to be necessary to demonstrate that the producer or importer has produced or imported LED that has satisfied the requirements specified in §§114.312, 114.313, or

114.318 of this title.



### (g) This subsection contains other SIP-approved language moved from now deleted subsection (j). A CARB date is updated. Revisions to this s ubsection are shown below and are approvable.
(g) [(j) ] Each producer or importer electing to sell, offe r for sale, supply, or offer to supply LED in

accordance with [under ] §114.312(c) [e ] of this title shall provide to the executive director, as applicable, a copy of the executive order issued by the CARB [C alifornia Air Resources Board (CARB) ] for the Certified Diesel Fuel Formulation used to produce the LED or documentation demonstrating that the LED has been produced to meet all specifications for diesel fuel under regulations adopted by the CARB, except for those approved for small refinery compliance, that were in effect as of August 4 [January 18 ], 2005[, and shall comply ) wi th the r e quire m ents o f subsections (c) and (h) o f this section using the fuel specifications for aromatic hydrocarbon and cetane set by this executive order or regulations ].



### (h) This subsection is deleted. The record rete ntion and information required is captured in subsection (d) and other rewritten subsections of this section. (i) This subsection is deleted a nd some language moved to (f). (j) This subsection is deleted and some language moved to (g). (k) This subsection is deleted with some of the language incor porated into (f). No stringency has been lost in th e revision to this section. Language is moved to other subsections and/or rewritten to capture the requirements de leted in other sections. These revisions are approvable.

§114.317 Exemptions to Low Emission Diesel Requireme nts. Revisions make clarifying changes as needed for accuracy and consistency with the adopted changes to §114.316 and §114.319. The following changes are all approvable because they do not relax the approved SIP.

(a) Wording is added for clarificati on. These revisions are approvable.

( a) Any diesel fuel subject to the low emission diesel (LED ) requirements specified in §114.312 of this title (relating to Low Emission Diesel Standards) that is either in a research, development, or test status; or is sold to petroleum, automobile, engine, or component manufacturers for research, development, or test purposes; or any diesel fuel to be used by, or under the control of, petr oleum, additive, automobile, engine, or component manufacturers for research,development, or test purposes, is exempted from the provisions of this division (relating to Low Emission Diesel), provided that: (1) the diesel fuel is kept segregated from non-exempt product, and the person possessing the product maintains documentation identifying the produc t as research, development, or testing fu el, as applicable, and stating that it i s to be used only for research, development, or testing purposes; and (2) the diesel fuel is not sold, dispensed, or transferred, or offered for sale, dispensing, or transfer from a retail fuel dispensing facility. It shall also not be sold, dispen sed, or transferred, or offere d for sale, dispensing, or tran sfer from a wholesale purchase r-consumer facility, unless such facility is associat ed with fuel, automotive, or engine research, development, or testing.



### (b) Wording is added for clarificati on. These revisions are approvable.
(b) Any diesel fuel subject to the LED requirements specified in § 114.312 of this title that is refined, sold, dispensed, transferred, or offered for sale, dispensing, or trru1sfer as competition racing fuel is exempted from the provisions of this division, provided that: (1) the fuel is kept segregated from non-exempt fuel, and the party possessing the fuel for the purposes of refining, selling, dispensing, transferring, or offering for sale, dispensing, or transfer as competition racing fuel maintains documentation identifying the product as racing fuel, restricted for non-highway use in competition racing motor vehicles or engines; (2) each pump stand at a regulated fac ility, from which the fuel is dispensed, is labeled with the applicable fuel identification and use restrictions described in paragraph (1) of this subsection; and (3) the fuel is not sold, dispensed, transferred, or offered for sale, dispensing, or transfer for highway use in

a motor vehicle.



### (c) An internal citation is updated to reflect re numbering in other sections. These revisions are approvable.
(c) The owner or operator of a retail fuel dispensing outlet is exempt from all requirements of § 114.316 of this title (relating to Monitoring, Recordkeeping, and Reporting Requirements) except §l14.316(e) [§114.316(g) ] of this title.



### (d) Reworded for clarification. The revisions dele te paragraphs (1) and (2) and incorporate the substance of these paragraphs in subsec tion (d). These revisions are approvable.
(d) Diesel fuel that does not meet the LED requirements of §114.312 of this title [( r elating t o Lo w E missio n Di es el

Standard ) ] is not prohibited from being transferred, placed, stored, and/or held within the affected counties so long as it is not ultimately used[:] [(1 )] to power a diesel fueled compression-ignition internal combustion engine operating in a motor vehicle or in non-road equipment in the counties listed in § 114.319 of this title (relating to Affected Counties and Compliance Dates), except for that used in conjunction with purpos es stated in Subsections (a ) and (b) of this section . [; or ] [(2) to power a diesel fueled compression

- ignition engine in non

- road equipment in the counties listed in 114.319(b) of this title, except for that used in conjunction w ith purposes stated in subsections (a) and (b) of this section

. ]



### §114.318 Alternative Emission Reduction Plan. This se ction is revised to remove the provisions pertaining to the calculation a nd use of early gasoline sulfur reduction credits as a methodology option for alternative emission re duction plan (AERP) compliance; requires AERPs that use the Unified Model to calculate compliance based on the average fuel properties determined each calendar quarter instead of yearly as currently required; and allo ws producers to calculate the average fuel properties used in the Unified Model based on the fuel properties of diesel sold or supplied for use in all affected coun ties instead of specific groups of counties as currently required. The following changes are all approvable be cause they do not relax the approved SIP. (a) Wording is added for clarificati on. These revisions are approvable.
(a) Diesel fuel that is sold, offered for sale, supplied, or offered for supply by a producer who submits an alternative emission reduction plan in accordance with subsection (b) of this section that is approved by the executive director will be considered in compliance w ith the low emission diesel (LED) requirements of§ 114.312(a) of this title (relating to Low Emission Diesel Standards).



### (b) The only AERP now allowed is the use of EPA’ s Unified Model to refine an alternative

formulation. This alternative is a more straight forward subs titution than the on-road and non-

### road emission reduction projects that were previously allowed under this section.. Demonstrating compliance with this method must be done once per quarter rather than annually. It stipulates that the fuel mu st meet emission reduction levels specific for on-road vehicles and non-road equipment. All of para graphs (b)(1-4) and their subpar agraphs are deleted. This is approvable because these methods of compliance are no longer used or allowed, which makes this section more stringent. The deleted paragrap hs are not shown here. Pl ease refer to the state’s proposal for the deleted portions. These revisions are approvable.
(b) The [An ] alternative emission reduction plan must demonstrate, using the Unified Model as described in the United States Environmental Protection Ag ency (EPA) staff discussion document, Strategies and Issues in Correlating Diesel Fuel Properties with Emissions, Publication Number EPA420-P-O1-OO1, published July 2001 , that the average fuel properties of all on-road [emission reductions associated with compliance of thi s division (rel ating to Low Emission Diesel)

that are attributable to the volume o f ] diesel fuel produced in any given calendar quarter that is sold, offered for sale, supplied, or offered for supply by the producer for use in [to ] the affected counties listed in §114.319 [under §114.319(b ) ] of this title (relating to Affected Counties and Compliance Dates) achieve at least a 5.5% reduction in nitrogen oxides (NOXX) emissions for the year 2007; and the average fuel properties of all non-road diesel produced in any given calendar quarter that is sold, offered for sale, supplied, or offered for supply by the producer for use in the affected counties listed in §114 .319

of this title achieve at least a 6.2% reduction in NO X emissions . [each year will be ac hieved t hr ough an equivalent substitute

fuel st rategy i n a ccordance with eithe r one or a combination of the follo wing procedures .]



### (c) This subsection is deleted because it pertains to compliance dates that have already passed and is no longer applicable. This revision is approvable.

(d) This is renumbered as subsection (c). No other change. This re vision is approvable.

(c) [(d ) ] An alternative emission reduction plan must be approv ed by the executive director prior to the use of that plan for compliance with the requirements of this section.



### (e) This is renumbered as subsection (d). No other change. This re vision is approvable.
(d) [(e )] The executive director shall appr ove or disapprove altemative emission reduction plans that have been submitted by producers in accordance with subsection (b ) of this section within 45 days of submittal.



### (f) This is renumbered as subsection (e). A few minor word changes made for clarity and consistency. This revision is approvable.
(e) [(f )] Alternative emission reduction plans submitted to the executive director in acco rdance with subsection (b)

of this section must contain sufficient documentation to va lidate the average diesel fuel properties used to satisfy the requirements specified in [in accordance with ] subsection (b) of this section [ (1) or (2) of this sectio n and, as appropriate, the sulfur prop erties and volumes of the gasoline that is being used to ge nerate credit in accordance with subsection (b)(3) or (4)

of this section ].



### §114.319 Affected Counties and Compliance Dates. The revision removes expired compliance schedules in subsection (c). New s ubstance is added to subsection (d ) to clarify that if the final compliance date of any provision in the section is before the adopti on of the current revision to the section and the compliance dates are not specified in the current revision, then the compliance date is past and all affected persons must be and remain in compliance with the provi sion as of the original compliance date.Other clarifying changes are made as needed for accuracy and consistency within

the section. The following changes are all approvable be cause they do not relax the approved SIP. (a) Some wording added for clarificatio n. This revision is approvable.
(a) All affected [Affec ted ] persons in the counties listed in subsection (b ) of this section shall continue to comply

with [be in complianc e in accordanc e with the sc hedule listed in section (c) of this section with ] §§114,312- 114.317 of this title (relating to Low Emission Diesel Standards; Designated Alternate Limits; Registration of Diesel Producers and Importers; Approved Test Methods; Monito ring, Recordkeeping, and Reporting Requirements; and Exemptions to Low Emission Diesel Requirements) as required by subsection (d) of this section , as applicable, for

any diesel fuel as defined in §ll4.6(6)(a) [under § 11 4.6 (7 )(A) ] of this title (relating to Low Emission FuelDefinitions) that may ultimately be used to power a diesel-fueled compression-ignition internal combustion engine in a motor vehicle or in non-road equipment in any of the counties listed in subsection (b) of this section

.



### (b) Wording added for clarification. The 110 county names in (b)(1)-(4) have not changed and are

not shown here. Please refer to th e state’s proposal for the full list of counties. This revision is approvable.
(b) The [f o ll owing ] counties specified in paragraphs (1)- (4) of this subsection are subject to subsection (a) of this

section:



### (c) The revisions delete the compliance schedules in subsection (c) because the compliance dates have already passed and are no l onger applicable. Revised subs ection (c) applie s the provisions of this rule to marine vessels, as previously required under subsection (d). The deletions of this

subsection are not shown here. Plea se refer to the state’s proposal for the deleted portions. These revisions are approvable.
(c) All affected [Affected ] persons in the counties listed in subsection (b ) of this section shall continue to comply with §§114.312-114.317 of this title as required by subsection (d) of this section, as applicable, for any diesel fuel as defined in §114.6(6)(B) of this title that may ultimately be used to power a diesel-fueled compression-ignition internal combustion engine located on a marine vessel in any of the counties listed in subsection (b)(2) of this section . [subject to subsection (a) of

this section shall be in compliance with this division according to the following schedule :]



### (d) This paragraph is completely rewritten. The s ubstance of deleted language is now covered in 114.319(c) discussed above. The revised subsection describes what constitutes a compliance date where none is given in a specific section.
(d) For all counties affected by this section, the fina l compliance dates for control requirements are given within the subsections relating to counties and compliance schedules for provisions specified in this division if the final compliance date of any provision is after the date of adoption of the current revision to this division. If the compliance date s are not specified for any provision, the compliance date is past and all affected persons must be and remain in compliance with the provision as of the original compliance date . [Affected persons in the counties liste d in subsection (b) of this section shall be in compliance in accordance with th e schedule listed in paragraph (1), (2), or (3) of this subsection with sect ions

114. 312

- 114.317 of this title, as applicable, for any diesel as defined under 114.67 (B) of this title, that may ultimately be used to power a diesel

- fueled compression

- ignition engine located on a marine vessel in any of the coun ties listed in subsection (b)(2) of this section: ]