1 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY NATIONAL VEHICLE AND FUEL EMISSIONS LABORATORY

2565 PLYMOUTH ROAD ANN ARBOR, MI 48105

- 2498

OFFICE OF AIR AND RADIATION

Memorandum

Date: Ap ril 8 , 2013

From: Jeff Herzog, Assess ment and Standards Divisions,

Office of Transportation and Air Quality

To: Docket # EPA

- HQ

- OAR

- 2011

- 0135

Subject: Possible Approach to Fuel Quality Standards for Fuel Used in Flexible

- Fuel

A utomotive Spark

- Ignition Vehicles (FFVs)

FFVs are vehicles that are capable of operating on both gasoline and gasoline blends containing up to 85 volume percent denatured ethanol. FFVs are equipped with the same catalysts to control emissions as are conve ntional gasoline vehicles and hence are subject to the same deleterious effects from fuel sulfur on catalyst efficiency. Whether FFVs are operating on clear gasoline (E0), E85, or any level of ethanol in between, to maintain emission performance the vehic les still need the fuel to meet certain quality specifications, such as the 10

- ppm average gasoline sulfur standard proposed in the Tier 3 Notice of Proposed Rule (NPRM). We anticipate that the volume of higher level ethanol blends used in FFVs may increa se substantially as the volume requirements of the Renewable Fuels Standard (RFS) increase. 1 Public and private initiatives are also currently underway to expand the use of ethanol blender pumps that dispense a variety of ethanol blends for use in FFVs ra nging from E10 to E85. 2 Therefore, it is becoming increasingly important that all fuels used in FFVs, not just gasoline, meet fuel quality standards. Additional regulations to assure that fuels used in FFVs are compatible with vehicle emissions

1 Regulation of Fuel and Fuel Additives: Changes to the Renewable Fuel Standard Program, March 26, 2010, 75 FR 14669.
2 The U.S. Department of Agriculture (U SDA) has a program to assist in the funding for the installation of as many as 10,000 ethanol blender pumps over the next 15 years in rural areas. Growth Energy has a “Blend Your Own Ethanol” program to encourage the installation of ethanol blender pumps that dispense a range of ethanol blend levels for use in flexible fuel vehicles.2

control r equirements will allow for the further expansion of ethanol blended fuels , which is important to satisfying the requirements of the RFS program. For these reasons, we believe it is important that our gasoline quality standards for not just sulfur, but als o benzene, Reid Vapor Pressure (RVP), detergency, and compliance with the interpretive rule defining the phrase “substantially similar” in CAA section 211(f)(1) 3 , (i.e., contain only carbon, hydrogen, oxygen, nitrogen, and sulfur) apply to any fuel used in an FFV. The following sections discuss potential approaches for doing so and how the statutory and regulatory provisions relate to them.

1. Standards for E51

- 83
Historically, “E85” had been used to describe fuel blends containing gasoline and ethanol with a minimum and maximum ethanol content of 68 volume percent and 83 volume percent, respectively. In 2011, ASTM International updated the specification for “E85” to include a reduction in the minimum ethanol concentration to 51 volume percent. 4 As part of t he updated specification, ASTM retired the name “E85” in favor of “ethanol fuel blends for flexible

- fuel automotive spark

- ignition engines.” ASTM took this action because the term “E85” has caused confusion regarding the variability in the ethanol content depending upon seasonal climactic conditions and regional gasoline volatility specifications. For the purposes of this discussion, “E51

- 83” refers to the fuel which meets the ASTM D5798

- 11 specifications.
EPA’s current fuel regulations at 40 CFR Parts 79 and 80 currently do not sufficiently address the fuel quality of E51

- 83. The blend is not considered to be gasoline, and therefore is not subject to registration under Part 79 and the various Part 80 gasoline fuel quality standards and regulations EPA h as established over the years. Nevertheless, there are two requirements that are imposed on E51

- 83. The first is that under Section 211(f) of the CAA, all fuels and fuel additives introduced into commerce must be substantially similar (subsim) to the fue l used to certify vehicles. While the Agency is just now proposing regulatory requirements in the Tier 3 rulemaking for E85 certification test fuel, both EPA and vehicle manufacturers have historically blended E85 certification fuel from denatured fuel et hanol and the gasoline used for certification testing with the addition of small amounts of butane in some cases. Thus for in

- use E51

- 83 to be compliant with the Section 211(f) substantially similar provision, it must have similar chemical and physical ch aracteristics with the fuel used in the emissions certification testing for FFVs. The second requirement on in

- use E51

- 83 pertains to the type of gasoline that is appropriate for use in blending E51

- 83 in RFG areas. The Agency issued guidance which state s that any gasoline or reformulated blendstock for oxygenate blending (RBOB) used to manufacture E51

- 83 must be in compliance with the applicable reformulated gasoline regulations. 5 The Agency believes th at the use of finished gasoline and blendstocks for oxygenate blending (BOBs) as E51

- 83 blendstocks ensures E51

- 83 quality and prevents inappropriate blending components (e.g., chemical wastes, metals, or certain hydrocarbons atypical of gasoline) from being used in the production of E51

- 83. Use of these blendstocks would also help ensure that E51

- 83 meets the necessary sulfur levels we are proposing in the Tier 3 proposed rule. However, the use of only these relatively low

- volatility blendstocks sometimes interferes with expansion of E51

- 83

3 See 73 FR 22277, 22281 (April 25, 2008).
4 ASTM International D5798

- 11, “Standard Specification for Ethanol Fuel Blends for Flexible

- Fuel Automotive Spark

- Ignition Engine s”.
5 Letter to Robert Sydney, Division of Energy Resources, Boston, MA, from James Caldwell, U.S. EPA, February 15, 2006.3

into the mark etplace by preventing blends at the upper range of the allowed ethanol content because such blends could not meet the minimum volatility requirements under ASTM D5798

- 11. Prior to the 2011 update of the ASTM specifications, it was frequently not possible to manufacture “E85” that met both ASTM minimum volatility specifications, and the CAA subsim requirements & EPA guidance regarding the blendstocks that can be used in RFG areas. Using market gasoline, particularly in RFG or low

- RVP areas caused the volat ility to be too low in such instances. Although the ASTM update provided a compliance method for manufacturing E51

- 83 under most circumstances, the result is that less ethanol can be used in FFVs, because the ethanol concentration is forced down from 83 p ercent toward the 51 percent minimum. As a result, some marketers discontinued distributing “E85.” Other marketers began blending in “natural gasoline” or other light hydrocarbon streams, potentially running afoul of the CAA subsim requirements and EPA b lending guidance. 6

To address this situation, we believe that we need to prescribe requirements for E51

- 83 that would enable the continued expansion into the marketplac e . We also believe that E51

- 83 should meet the same sulfur, RVP, and benzene standards otherwise applicable to gasoline as well as the “substantially similar” requirements. By establishing such requirements, we could allow the use of butane and natural gasoline liquids (NGL) to be used to manufacture E51

- 83. 7 Butane is commonly blended int o gasoline and natural gasoline is one of the denaturants specified by ASTM for the manufacture of denatured fuel ethanol (DFE). 8 The use of butane as a blendstock would allow E51

- 83 to be manufactured with sufficient volatility to meet the ASTM specifica tions while maximizing the ethanol content. There are existing regulations governing the use of butane as a gasoline blendstock which might be applied to the use of butane

as a n E51

- 83 blendstock. The use of NGL as an E51

- 83 blendstock would also be usef ul in

ma n ufacturing high

- ethanol content E51

- 83 that meets ASTM minimum volatility specifications particularly at ethanol production facilities where natural gasoline is typically available but butane is currently not available. Since NGL and butane are l ess expensive than gasoline or BOBs, we anticipate that such a change could help to reduce the price of E51

- 83 relative to finished gasoline. 9 We believe that the envisioned approach would ensure E51

- 83 meets the necessary fuel quality requirements as und er our current policies, but with additional flexibility. We would need to consider whether a n absolute limit on the amount of butane or NGL that could be blended into E51

- 83 would be necessary. Such a limit might be needed if there is evidence that buta ne and NGL could come out of solution too rapidly when used at high concentrations as an E85 blendstock.

6 Such natural gasoline was either sourced from natural gas liquids or as a blendstock from a refiner. The higher temperature boili ng components of NGL are sometimes referred to as natural gasoline
7 NGL are components of natural gas that are separated from the gas state in the form of liquids. This separation occurs in a field facility, in a natural gas processing plant, in a natura l gas liquids fractionation facility, or as a result of shipping natural gas by pipeline through absorption, condensation, adsorption, or another method. This discussion is focused on the potential for allowing natural gas liquids for use as an E51

- 83 ble ndstock but potentially could be applied to cover the use of natural gasoline blendstock from refiners.
8 ASTM International D4806

- 1 1(a) , “Standard Specification for Denatured Ethanol for Blending with Gasolines for Use as Automotive Spark

- Ignition Engine Fuel”.
9 In January of 2013, the retail price of E85 was approximately 60 cents per gallon more than regular gasoline on an energy content adjusted basis. AAA Fuel Gauge Report http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com /index.asp

.4

To meet the envisioned fuel quality standards, E51

- 83 producers would have two options. Under the first option, E51

- 83 producers would have to meet si milar requirements to all existing requirements for gasoline refiners. This would mean that their product (E51

- 83) would have to meet the various fuel quality standards and they would have maximum flexibility in how they did so. However, they would be su bject to sampling, testing, and reporting requirements for all batches of E51

- 83 they produce. In recognition of the associated compliance burden of the first option, we also developed a second option that would allow producers of E51

- 83 to reduce their b urden if they only use blendstocks that meet certain specifications. Under either option t he resulting E51

- 83 produced would be required to meet the downstream sulfur, RVP, and a benzene per

- gallon cap standard in order to ensure emission performance over the life of the vehicles that use it. These two options are discussed in the following subsections. Under both of these options, EPA would be acting under its authority in section 211(c) of the CAA. Draft regulatory text to support the implementation o f the two options discussed below is contained in Section 4 of this memorandum.

Under the renewable fuel program in section 211(o) of the CAA, EPA is required to adopt regulations that ensure that transportation fuel used in the United States contains spec ified volumes of different types of renewable fuel. Section 211(o)(1)(L) defines transportation fuel as fuel for use in motor vehicle engines, non

- road vehicles, or nonroad engines (except for ocean going vessels). The EPA regulations that implement thes e requirements specify that refiners and importers of gasoline and diesel fuel are “obligated parties” that incur an annual obligation to use a volume of renewable fuel. This annual volume obligation is specified as a percentage of the gasoline or diesel that they produce or import. 10 To the extent that natural gas liquids (or natural gasoline from refiners) were to be used in significant volumes as an E85 blendstock in the future, it may be appropriate for EPA to amend its RFS regulation to include the bl enders of such blendstocks as an obligated party under the RFS program, and subject to an annual obligation to use a volume of renewable fuel, like refiners and importers of the fossil fuels gasoline and diesel. 11

a. Option 1: Assume Full Responsibilities of a Refiner

Under the first option, the producer of the E51

- 83 would be subject to the same 10 ppm annual average sulfur standard proposed for refiners in the Tier 3 NPRM. The producer would be required to register with EPA and conduct batch testing to demon strate compliance with the proposed 10 ppm standard. As noted earlier, FFVs are equipped with same catalysts to control emissions as are conventional gasoline vehicles and hence are subject to the same deleterious effects from fuel sulfur on catalyst effi ciency.

Consistent with the Tier 3 proposal, E51

- 83 would have to meet the maximum RVP standards currently applicable for E0 gasoline from May 1 through September 15. 12 Under the Tier 3 proposal, FFVs would be designed with the same evaporative control equ ipment that is used on conventional gasoline vehicles and certified on gasoline with 9 psi RVP. Therefore, we

10 40 CFR 80.1405(c), 80.1406
11 This would also be the case to the extent that natural gasoline blendstocks from refiners and importers were to be used as an E85 blendstock.
12 See 40 CFR 80.27(a)(2) regarding the RVP requirements that in convent ional gasoline areas and 40 CFR 80.41 regarding the requirements that apply in reformulated gasoline areas.5

believe that subjecting E51

- 83 to the maximum RVP standards applicable to E0 gasoline would be needed to ensure that such equipment functions pro perly in controlling vehicle evaporative emissions.

We could also consider adopting the minimum RVP specifications established by ASTM for E51

- 83 throughout the year. Minimum volatility standards for gasoline have not been necessary since in

- use gasolin e is always well above the minimum necessary for proper vehicle operation. However, this has not been the case for in

- use E85. A substantial number of samples of “E85” were found to be noncompliant with the minimum ASTM volatility specifications, which c ould lead to increased exhaust emissions in

- use. 13 ASTM set minimum volatility specifications on E51

- 83 for safety reasons and to ensure adequate startability and drivability which are critical for exhaust emission performance. 14 Since rapid engine start

- u p, warm

- up, and driveability is extremely important for vehicles to comply with the proposed Tier 3 exhaust emission standards, it may be important that EPA also impose minimum volatility standards for E51

- 83.

Refiners and importers of gasoline are subjec t to a 0.62 volume percent annual average and 1.30 volume percent maximum average benzene standard in any averaging period. 15 It is important to control the benzene content of all of the blendstocks used in gasoline. For this reason, we are requesting com ments in the Tier 3 NPRM regarding whether EPA should adopt benzene standards for denatured fuel ethanol that are similar to those in place in the State of California. 16 The same public health concerns that necessitate the control the benzene content of
ga soline apply to E51

- 83. Therefore, EPA believes it would be appropriate to implement benzene standards for E51

- 83. However, given the virtual lack of benzene in ethanol, there is no need for the benzene standard for E51

- 83 to be as high as the standard f or gasoline and therefore no need to impose the additional regulatory requirements associated with an average standard. Consequently, we believe it may be possible to set the benzene standard for E51

- 83 at a 0.20 volume percent cap or even lower without i mposing any burden rather than implementing an average annual benzene standard similar to that for gasoline. This would allow us to prevent the blending of inappropriate batches of hydrocarbon blendstocks (e.g., solvents and waste streams) into E51

- 83 in the distribution system.

It is also important to ensure the fuel quality parameters other than sulfur, benzene, and RVP are adequately controlled in E51

- 83 blends. For gasoline, this is accomplished through compliance with the interpretive rule defining the phrase “substantially similar” in CAA section 211(f)(1). 17 We believe that it is appropriate to explicitly apply the relevant specifications that were considered when issuing the “substantially similar” definition to E51

- 83. These requirements are int ended to prevent the introduction of atypical elements into the fuel system

13 National 2010

- 2011 Survey of E85: CRC Project E

- 85

- 2, Teresa Allman, NREL/TP

- 5400

- 52905, December 2011.
14 Meeting the ASTM minimum volatility requ irements for E51

- 83 ensures that the vapor phase in fuel storage tanks is too rich to be flammable.
15 40 CFR 80.1230(a).
16 California Code of Regulations, Title 13, Section 2262.9, “Requirements Regarding Denatured Ethanol Intended For Use as a Blend Comp onent in California Gasoline” specifies a 10 ppm maximum sulfur content, 0.06 volume % maximum benzene content, 1.7 volume % maximum aromatic content, 0.5 volume % maximum olefin content for denatured fuel ethanol.
17 See 73 FR 22277, 22281 (April 25, 2008 ).6

that could degrade the performance of the emissions control system. This is equally important for flex

- fuel vehicles as it is for conventional gasoline vehicles. Hence, we would require that E51

- 83 must be composed solely of carbon, hydrogen, nitrogen, oxygen, and sulfur, which is consistent with the composition of fuels used to certify FFVs.

a. Option 2: Treatment as a Blender

Due to the limitations in being able to add ethanol a t the refinery and distribute ethanol blends through the fuel distribution system, in the early 1990s EPA developed a special set of regulations and guidance that apply to entities who are deemed to be refiners only because they blend ethanol into gasoline at terminals. These regulations allowed such downstream oxygenate blenders to be exempt from much of the regulatory burden otherwise placed on refiners while still ensuring the fuel quality standards are being met in use. Were it not for these downstrea m oxygenate blender provisions, the batch sampling, testing, and reporting burden that otherwise apply to refiners would have precluded ethanol blending to make E10. Ethanol is blended with gasoline to manufacture E10 as the fuel is being loaded in tank t rucks at terminals for delivery to fuel retailers. Testing each truck load would be too costly and logisti cally impractical

. 18

Since batches of E51

- 83 are also typically manufactured as the fuel is delivered into tank trucks, sampling, testing and reportin g for all of the requisite parameters for all batches under option 1 could likewise be prohibitively expensive and logistically impractical. Numerous downstream entities such as terminals and bulk plants would be subjected to all of the fuel requirements for refiners. This could be both overly burdensome for industry and present an untenable compliance assurance challenge to EPA. Therefore, we have developed an alternative approach that could allow producers of E51

- 83 to avoid much of the burden while st ill ensuring that the fuel blends meet the necessary standards. This is similar to EPA’s current oxygenate blender requirements applicable to gasoline, and to the current guidance regarding the use of certain blendstocks to manufacture E51

- 83 in RFG areas but with additional flexibility as described below.

Under this option, E51

- 83 manufacturers would be required to use gasoline (RFG in RFG areas, RFG or CG in non

- RFG areas), gasoline blendstocks (RBOB in RFG areas, RBOB or CBOB in non

- RFG areas), and den atured fuel ethanol (DFE), which are all currently allowed to today, but also would be permitted to use natural gas liquids (NGL) and butane if they were produced to certain standards. The E51

- 83 producer would need to use only these blendstocks and have records, such as product transfer documents (PTDs) indicating that the gasoline, BOB, DFE, or other product was produced subject to the applicable standards. E51

- 83 manufacturers under this option would be considered “E51

- 83 blenders”. The use of NGL or butane that does not meet the specifications and quality control requirements discussed below in sections 1.i. and 1.ii., or other nonapproved blendstocks in the production of E51

- 83 would mean that the manufacturer of E51

- 83 would need to comply with the requirements under option 1.

18 For example, detaining tank trucks at terminals awaiting the results of testing could introduce unacceptable delay into the fuel distribution system.7

Under this option the finished E51

- 83 would be subject to the proposed downstream sulfur cap for gasoline of either 65 ppm or 95 ppm. 19 Based on the sulfur specifications for the blendstocks of the E51

- 83 blend (as discussed below), however, we believe that the actual sulfur content would be at or below 10 ppm on average. 20 Similarly, the blendstock specifications would ensure that in

- use benzene levels for E51

- 83 would be well below the per

- gallon cap of 0.20 volume percent o r less discussed in option 1. For this reason, testing of the final blend for sulfur and benzene would not be necessary.

Under this second option there would be additional recordkeeping requirements. Producers of E51

- 83 would need to maintain PTDs as e vidence that only blendstocks meeting the envisioned specifications have been used. They would also have to perform standard quality assurance activities that downstream parties typically conduct to meet their affirmative defenses to presumptive liability when EPA discovers a violation of fuel quality standards. For blenders that use only gasoline, BOB’s, and DFE to produce E51

- 83, demonstration of compliance with the maximum RVP standard under consideration could be accomplished by retention of PTDs for the blendstocks. This is because the gasoline/BOBs used would be in compliance with the maximum RVP standard due to the existing RVP requirements for gasoline, and all ethanol blends from E51 through E83 would have a lower RVP than that of the gasoline or BOB used due to ethanol blending characteristics. 21 If NGL and/or butane were used to manufacture E51

- 83, demonstration of compliance with a maximum RVP requirement could not be accomplished merely by retention of PTDs. In this situation, E51

- 83 blenders would still need to sample and test the RVP of each batch of E51

- 83 to ensure compliance with a maximum RVP standard.

However, it may be possible to avoid sampling and testing for RVP as well. RVP models exist that could perhaps be developed further to avoid the need for sampling and testing for RVP when NGL or butane were used, but they are not yet applicable to these blends. 22 Were they to be developed, then the E51

- 83 producer would not need to sample and test for RVP, but they would need to know the RVP of all the blendstocks used, which means PTDs for the blendstocks would need to contain this information. 23 The E51

- 83 producer would also have to report the calculated RVP of the E51

- 83 on its PTD. It is common practice for NGL producers to test the RVP of each batch of NGL they produce in order to grade their product. As a result, requiring the RVP to be reported on PTDs for NGL should not represent a significant additional burden. It may be possible to use an assumed RVP of 2.5 psi for DFE since we believe that the actual RVP of different batches of DFE may not vary significantly. 24 Likewise, we believe that it may be appropriate to use an assumed RVP of 52 for butane if a model could be used to predict the impact of butane blending on RVP.

19 In the Tier 3 proposal, we requested comment on whether to adopt a 65ppm downstream sulfur cap or to maintain the current 95ppm cap.
20 Blenders could receive occasional batches of gasoline or gasoline blendstocks for oxygenate blending (BOBs) that are near the 65 or 95 downstream sulfur cap proposed in the Tier 3 NPRM for use in the manufacture of E 51

- 83.
21 SAE International Technical Paper Series 2007

- 01

- 4006, “ A Model for Estimating the Vapor Pressures of Commingled Ethanol Fuels, Sam R. Reddy, General Motors Research and Development Center.
22 SAE International Technical Paper Series 2007

- 01

- 40 06, “ A Model for Estimating the Vapor Pressures of Commingled Ethanol Fuels, Sam R. Reddy, General Motors Research and Development Center.
23 Following is an example of such a PTD for NGL: Natural gasoline liquids. Meets EPA standards for natural gas l iquids for use by an E51

- 83 blender. Cannot be sold as gasoline, RBOB, or CBOB EPA. RVP = fill in value
24 The limitation on the maximum allowed denaturant content of DFE of 2.5 volume percent proposed in the Tier 3 would limit the variability in the RVP of DFE.8

Even w hen it is not possible to eliminate the need to sample and test for RVP, it may be possible to limit the amount of testing required. The RVP of E51

- 83 batches at a given blend ratio remains essentially constant if the same grades of gasoline, BOBs, or NGL are used. Given this, stakeholders suggested that it might be sufficient to accept less frequent than per

- batch testing as long as the same batches of gasoline, gasoline BOBs, or NGL are used to manufacture E51

- 83. The approach is based on the procedure s industry follows to ensure compliance with gasoline RVP requirements during the time when gasoline RVP levels are phased down in preparation for lower summertime volatility requirements. Under this approach, after RVP tests had been conducted on two con secutive batches of E51

- 83 at a given ethanol blend ratio which show compliance, the frequency of RVP testing could be reduced to once every other day until different gasoline, BOBs, or NGL were added to the storage tank used to produce E51

- 83. To further ensure compliance, one test per shift (every 8 hours) might be required if a test showed a compliance margin with the RVP standard 0.5 RVP or less. 25 Less frequent than per batch RVP testing could only be possible if the hydrocarbon blendstock used to pro duce E51

- 83 was drawn from a single storage tank that was well mixed to ensure uniform blendstock composition throughout the tank. Per batch testing would also be required if butane was used to manufacture E51

- 83.

We would also need to consider whether the delivery of a new batch of DFE to a storage tank used to produce E51

- 83 would necessitate a return to more frequent RVP testing for E51

- 83 production batches. Such an approach would be appropriate if the RVP of different batches of DFE varies substan tially. We do not believe that this would be the case. The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Treasury Department requires that denatured fuel ethanol contain a minimum of 1.96 volume percent denaturant. The Tier 3 NPRM includes a proposal to limit the maximum denaturant content of DFE to 2 volume percent . If this proposal is finalized, the variability in the denaturant content of DFE would be 0.54 volume percent given rounding . Given the proposal in the Tier 3 NPRM to limit the denaturants that can be used to manufacture DFE to NGL, gasoline, and BOBs, and the narrow range in denaturant concentration, we believe that the RVP of different batches DFE would not vary substantially. Therefore, we currently do not believe that deliv eries of new batches of DFE into the storage tank used to produce E51

- 83 would necessitate a return to per batch testing.

i. Standards for Butane for use by Blenders to Produce E51

- 83

There are different specifications and quality control requirements for commercial versus

non

- commercial grade butane blended into gasoline today. 26 The specifications and quality control requirements that we are considering for butane used to produce E51

- 83 would parallel those for butane blended into gasoline. The following specifications would apply to non

commercial grade butane that is used as a blendstock to produce E51

- 83 under option 2 : maximum 10 ppm sulfur, maximum 0.03 volume percent benzene, maximum 10.0 volume percent olefins, and maximu m 2.0 volume percent aromat ics. If commercial grade butane is used, it would have to meet: maximum 10 ppm sulfur, maximum 0.03 vo lume percent benzene, maximum 1 .0 volume percent olefins, and maximu m 2.0 volume percent aromatics. The standards for benzene, olefins, and aromatics un der consideration for butane blended into E51

- 83

25 The “compliance margin” refers to the difference between the test result and the standard.
26 40 CFR 80.82.9

are the same as the current standards for butane blended into gasoline. 27 The current sulfur level for butane blended into gasoline is capped at 30 ppm, which reflects the current Tier 2 refinery average sul fur standard. 28 The Tier 3 NPRM proposes to lower the butane sulfur cap to 10 ppm to be consistent with the proposed 10

- ppm refinery average sulfur standard. No registration or other requirements for manufacturers of butane blendstocks would be needed giv en the relatively simple composition of butane and the successful application of the current requirements for butane blended into gasoline. However, similar to the requirements for blenders of butane into gasoline, producers of E51

- 83 who choose to use n on

- commercial grade butane to manufacture E51

- 83 would be required to conduct a quality assurance program by sampling and testing the butane obtained from each separate butane supplier in order to demonstrate that the butane meets the standards. 29

ii. Standard

s for Natural Gas Liquids for use by Blenders to Produce E51

- 83

Production of E51

- 83 under option 2 using NGL blendstocks would require that the NGL blendstock, like butane, meet a 10

- ppm per

- gallon sulfur cap. Data on current sulfur levels of NGL is not readily available. The lim ited data available to EPA indicates that NGL sulfur levels vary considerably, with some batches below 10 ppm sulfur and others substantially in excess of 10 ppm. 30 To the extent that NGL would be used as a gasoline blendstock in the future, a portion of the NGL pool may need to be desulfurized to meet the proposed 10 ppm gasoline sulfur standard in the Tier 3 NPRM or a portion of the NGL pool that is already less that 10 ppm sulfur would need to be segregated. Such a low

- sulfur g rade of NGL could then be used in the manufacture of E51

- 83 as well as by refiners that produce gasoline.

It may be possible to consider a higher sulfur standard for NGL used to produce E51

- 83 if other assurances can be provided to ensure that the E51

- 83 blender meets the sulfur standard on average. However, requiring blenders to demonstrate compliance with a 10 ppm average sulfur standard might necessitate sulfur testing at the blender level that the approach under option 2 seeks to avoid. Additional q uality data on current NGL batches would be useful in helping to consider whether a higher sulfur specification for NGL might facilitate the use of NGL as an E51

- 83 blendstock while meeting our E51

- 83 fuel quality goals. NGL fuel quality data would also b e useful in helping to determine what additional NGL quality specifications may be appropriate. The limited data we have available on the benzene content of NGL show samples with as high as 2 volume percent benzene, indicating that that regulatory control of benzene would be needed. Similar to the envisioned 0.20 volume percent benzene cap for butane, we would look to implement a 0.20 volume percent benzene c ap standard for NGL rather than an average standard in order to simplify the regulatory requiremen ts. If olefin and aromatic

27 Industry worked with EPA to develop the specifications for non

- commercial grade and commercial grade butane contained in the Tier 2 pro gram. Butane produced from natural gas processing plants typically meets the standards for commercial

- grade butane, and butane produced from refineries typically meets the standards for commercial

grade butane. The current standards for commercial

- grade butane blended into gasoline are as follows: maximum 30 ppm sulfur, maximum 0.03 volume percent benzene, maximum 1 volume percent olefins, and maximum 2 volume percent aromatics. 40 CFR 80.82.
28 40 CFR 80.195.
29 Other affirmative defenses to presumptive liability would also apply to when both noncommercial grade and commercial grade butane was used.
30 Specifics regarding these data were claimed as confidential business information by the companies that provided the data to EPA.10

specifications are necessary, we would consider specifications based on those for non

commercial grade butane. 31 The NGL for use in E51

- 83 would also have to be composed only of carbon hydrogen, nitrogen, oxygen, and sulfur purs uant to the earlier discussion on substantially similar definition, under section 211(f). Since NGL properties from different sources can vary widely, under option 2, we may also need to consider restricting the sourc es of NGL to natural gas liquids fract ionation facilities and natural gas processing plants to ensure an appropriate level of quality control . We understand that the quality of NGL produced from condensation in pipelines may be more subject to potential contamination (e.g. with residual polyc hlorinated biphenyl (PCB ) that was previously used as a lubricant). 32 Hence, it may be necessary to implement additional quality controls for such NGL. Due to the greater potential for variability in the composition of natural gas liquids (NGL), we would need to require registration and batch testing requirements for producers of NGL that is used to manufacture E51

- 83. As with butane, we would need to consider whether an absolute limit on the amount of NGL that could be used as an E85 blendstock if there is evidence that NGL could come out of solution too rapidly when used at high concentrations as an E85 blendstock.

2. Standards for Mid

- Level Ethanol Blends (E16

- 50)

As discussed earlier, whether FFVs are operating on clear gasoline (E0), E85, or any level of ethanol in between, to maintain emission performance these vehicles need the fuel to meet certain quality specifications. For this reason, we believe it is important that mid

- level ethanol blends meet the same standards that apply to E0

- E15 gasoline.

O ur various standards for gasoline apply to any fuel sold for use in motor vehicles, which is commonly or commercially known or sold as gasoline. In the fuel and fuel additive (F&FA) registration program, the gasoline family includes fuels composed of at l east 50 percent clear gasoline by volume. 33 As a result, mid

- level ethanol blends of E16

- 50 are logically viewed as gasoline blends and are cur ren t l y subject to gasoline standards. However, such fuels currently can only be used in FFVs. Therefore, there are two s eparate options for specifying standards that apply to E16

- 50 blends. First, we could treat E16

- 50 (and any other fuel blend that is at least 50% gasoline) as gasoline under our regulations and clarify that gasoline means any blend that contains 50 percent or more gasoline. The draft regulations at § 80.1606 clarifies this existing approach to implementing our regulations. Under this approach, all of the Clean Air Act provisions that apply to gasoline, such as section 211(h) of the CAA with respe ct to the regulation of RVP, and EPA’s regulations of gasoline such as those under section 211(c) with respect to the regulation of other fuel parameters. Fuels designated as motor vehicle gasoline are subject to the fuel and fuel additives (F&FA) registr ation program pursuant to the requirements of 40 CFR Part 79. Hence, under this approach E16

- E50 blends would be required to register under the F&FA program and be subject to the associated heath effects testing requirements prior to their introduction in to commerce.
Alternatively, we could treat E16

- 50 as an alternative fuel used in FFVs. This would be a deviation from our existing regulations, but could be done under our existing 211(c) authority.

31 The specifications for n on

- commercial grade butane are located at 40 CFR 80.82.
32 Polychlorinated Biphenyls (PCBs); Reassessment of Use Authorizations

, http://yosemite.epa.gov/opei/rulegate.nsf/byRIN/2070

- AJ38
33 40 CFR 79.56(e)(1)(i).11

Section 211(h) applies to the control of gasoline RVP. Hence, under this option we would be acting under the authority of 211(c) to enact RVP control for E16

- 50. We would take the same approach for E16

- 50 as discussed above for E51

- 83 with respect to sulfur, benzene, RVP standards, and substantially si milar requirements under section 211(f). Under such an approach, the draft regulations written to address E51

- 83 might be modified to cover E16

- 50 blends by replacing “E51”with “E16”. Draft regulations focused only on implementing control of the sulfur c ontent of E16

- 50 are contained in Section 4 of this memorandum. Given that E16

- E50 would not be considered gasoline under this approach, and as such not subject to the F&FA registration requirements, we would need to consider designating these blends as r equiring such registration and testing. Should EPA grant a waiver in the future to allow an ethanol blend greater than E15 to be used in conventional gasoline vehicles, that blend would no longer be considered an alternative fuel and would be subject to t he suite of EPA regulatory requirements that apply to gasoline.

3. Gasoline Deposit Control Requirements for E51

- 83 and E16

- 50

The current deposit control regulations require that the gasoline portion of E51

- 83 and E16

- 50 must contain a certified deposit cont rol additive at a concentration at least as great as that used during gasoline deposit control additive certification testing (referred to as the Lowest Additive Concentration or LAC). 34 The addition of ethanol to gasoline additized at the LAC to produce E 51

- 83 and E16

- 50 results in an additive concentration that is lower than the LAC. EPA is not aware of data on the deposit control needs of FFVs that operate on E51

- 83 and E16

- 50. It is unclear the extent to which the current requirements are effective in aiding the control of deposits in FFV engine and fuel supply systems that result from the use of E51

- 83 and E16

- 50. Stakeholders have stated that as additive concentration diminishes due to dilution with DFE, there is a point where the presence of a depo sit control additive ceases to be benefic ial and can actually contribute to deposit formation. In light of this, it may be appropriate to remove the requirement that the gasoline portion of E51

- 83 and perhaps E16

- 50 must contain a deposit control additive until the specific deposit control needs of these blends can be evaluated. Thus, detergency may be the one gasoline standard that would not be extended to E16

- 83 blends, at least at first. Were we to remove the current requirement, changes to the volume tric additive reconciliation (VAR) provisions of the program that are used by additive blenders to demonstrate that they have used at least the LAC would also be needed. Such changes would reflect that gasoline used in the manufacture of E51

- 83 (and poten tially E16

- E50) would be excluded from the determination of compliance with the VAR requirements.

4. Draft Regulatory Text

To provide a clear understanding of what standards for E16

- 83 might entail and what the implications might be, we have developed the fol lowing draft regulatory text regarding the discussed sulfur requirements. These draft regulatory provisions would be in addition to the proposed regulatory text in the Tier 3 NPRM. The changes in addition to the proposed regulatory text in the Tier 3 NP RM are indicated in redline and strikeout text

. Note that the numbering of the amendments is that contained in t he Tier 3 proposal and that the sections that would remain unchanged have not been reproduced here.

34 40 CFR 80.161(a)(3).12

For the reasons set forth in the preamble, part 80 of title 40, chapter 1 of the Code of Federal Regulations is amended as follows:

Part 80

- REGULATION OF FUEL AND FUEL ADDITIVES

1. The authority citation for part 80 continues to read as follows: Authority: 42 U.S.C., 7414, 7521(l), 7545, and 7601 (a).

2. Section 80.2 is amended by:

a. Revising paragraph (d). b. Revising paragraph (w).

c. Revising paragraph (z). d. Adding paragraphs (vvv), (www), (xxx), (yyy), (zzz), and (aaaa)

, (bbbb), (cccc), (dddd) and ( eeee )

.
§ 80.2 Definitions.

* * * * *

(d ) Previously certified gasoline , or PCG

, means gasoline, RBOB or CBOB that previously has been included in a batch of gasoline for purposes of complying with the standards of 40 CFR p art 80 that apply to refiners and importers.

* * * * * (w) Cetane Index or “Calculated cetane index” is a number representing the ignition properties of diesel fuel oils from API gravity and mid

- boiling point, as determined by ASTM International standard method D976

- 06(2011), entitled, “Standard Test Method for Calculated Ceta ne Index of Distillate Fuels”, approved October 1, 2011. ASTM International test method D976

- 06(2011) is incorporated by reference. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) an d 1 CFR part 51. Copies may be obtained from ASTM International, 100 Barr Harbor Dr., West Conshohocken, PA 19428

- 2959. Copies may be inspected at the Air Docket, EPA/DC, EPA West, Room B102, 1301 Constitution Ave., NW, Washington, D.C., or at the Nation al Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202

- 741

- 6030 or go to: http://www.archiv es.gov/federal_register/code_of_federal_regulations/ibr_locations.html

.

* * * * * (z) Aromatic content is the aromatic hydrocarbon content in volume percent as determined by ASTM International standard test method D1319

- 10, entitled, “Standard Test Metho d for Hydrocarbon Types in Liquid Petroleum Products by Fluorescent Indicator Adsorption”, approved May 1, 2010. ASTM International test method D1319

- 10 is incorporated by reference. This incorporation by reference was approved by the Director of the Fed eral Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies may be obtained from ASTM International, 100 Barr Harbor Dr., West Conshohocken, PA 19428

- 2959. Copies may be inspected at the Air Docket, EPA/DC, EPA West, Room B102, 1301 Consti tution Ave., NW,13

Washington, D.C., or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202

- 741

- 6030 or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html

.

* * * * * (vvv) Denatured Fuel Ethanol (DFE) means a n alcohol of the chemical formula C 2 H 6 O which contains a denaturant to make it unfit for human consumption, that is used as an additive in gasoline or as a component in the manufacture of E51

- 83 , and that meets the requirements of 40 CFR 80.1610

.
(www) Oxygenate manufacturer means any person who owns, leases, operates, controls,

or supervises an oxygenate production facility.

(xxx) Oxygenate Production F acility means any facility where oxygenate is produced.

(yyy) CBOB means gasoline blendstock that becomes conventional gasoline solely upon the addition of oxygenate.

(zzz) Natural Gas Liquids (NGL) means the components of natural gas (primarily propane, butane, pentane, hexane, and heptane ) that are separated from the gas state in the form of liqu ids in a natural gas liquids fractionation production facility

, or in a natural gas pro cessing plant , or in a natural gas pipeline

. The higher temperature boiling components of NGL are is sometimes also referred to as “ natural gasoline ”

.
(aaaa) Natural Gas means a mixture of hydrocarbon gases that occurs with petroleum deposits, principall y methane together with varying quantities of ethane, propane, butane, and other gases.

( cccc ) E51

- 83 means the fuel for use in ethanol fueled flexible fuel vehicles that meets the requirements in ASTM D5798

- 11 Standard Specification for Ethanol Fuel Bl ends for Flexible

- Fuel Automotive Spark

- I gnition Engines”, and the requirements in this subpart.

(dddd) E51

- 83 production facility means any facility, including but not limited to, a plant, tanker truck, or vessel where E51

- 83 is produced, including any f acility at which blendstocks are combined to produce E51

- 83 , or at which blendstock is added to E51

- 83

.
( eeee ) E51

- 83 Blender means any person who owns, leases, operates, controls, or supervises a n E51

- 83 production faci lity that produces E51

- 83 in compli ance with the requirements of §80.1611

.
( ffff ) E51

- 83 Refiner means any person who owns, leases, operates, controls, or supervises a n E51

- 83 production facility that produces E51

- 83 by means other than those described in §80.1611.

37. A new Subpart O is added to part 80 to read as follows:14

Subpart O

— Gasoline Sulfur

§80.1600 Definitions for subpart O. §80.1601 Fuels subject to the provisions of this subpart. §80.1602 Implementation dates for refiners and importers. §80.1603 Gasoline sulfur standards for refiners and importers. §80.1604 Gasoline and E51

- 83 sulfur standards and requirements for parties downstream of

refiners and importers. §80.1605 Deficit carry

- forward for refiners and importers. §80.1606 [Reserved] Standards and requirements for E16

- 50. § 80.1607 Gasoline sulfur standards and requirements for transmix processors and transmix

blenders. §80.1608 [Reserved] Standards and requirements for E51

- 83. §80.1609 Blender r R equirements for gasoline oxygenate blenders

. §80.1610 Standards and requirements for producers of denatured fuel ethanol and other

oxygenates for use by gasoline oxygenate blenders , and E51

- 83 blenders

. §80.1611

— 80.1612 [Reserved] §80.161 1 Blended E51

- 83 requirements. §80.1612 Standards and requirements for natural gas liquids blendsto ck used by E51

- 83

blenders. §80.1613 Standards and other requirements for manufacturers and blenders of g asoline

additive s used in gasoline and E51

- 83 manufacturer s and blenders

. §80.1614 [Reserved] §80.1615 Credit generation. §80.1616 Credit use and trans fer. §80.1617

— 80.1619 [Reserved] §80.1620 Small refiner definition. §80.1621 Small volume refinery definition. §80.1622 Approval for small refiner and small volume refinery status. §80.1623

— 80.1624 [Reserved] §80.1625 Hardship provisions. §80.1626

— 80.1629 [Reserved] §80.1630 Sampling and testing requirements. §80.1631 Sample retention requirements. §80.1632

— 80.1639 [Reserved] §80.1640 Standards and requirements that apply to refiners producing gasoline by blending

blendstocks into previously certified gasol ine (PCG). §80.1641 Alternative sulfur standards and requirements that apply to importers who

transport gasoline by truck. §80.1642

— 80.1649 [Reserved] §80.1650 Registration. §80.1651 Product transfer document requirements. §80.1652 Reporting requirements. §80.1653 Recordkeeping. §80.1654 California gasoline requirements. §80.1655 National security exemptions.15

§80.1656 Exemptions for gasoline used for research, development, or testing purposes. §80.1657 [Reserved] §80.1658 Requirements for gasoline for use i n American Samoa, Guam, and the

Commonwealth of the Northern Mariana Islands. §80.1659 [Reserved] §80.1660 Prohibited acts. § 80.16 61 What evidence may be used to determine compliance with the prohibitions and

requirements of this subpart and liability for violations of this subpart? § 80.16 62 Liability for violations under subpart O

. §80.1663 Defenses for a violation of a prohibited act under subpart O. §80.1664 [Reserved] §80.1665 Penalties. §80.1666 Additional requirements for foreign small refiners and fo reign small volume

refineries. §80.1667 Attest engagement requirements. §80.1668

— 80.1674 [Reserved] §80.1675 Incorporation by reference.

§80. 16 01 Fuels subject to the provisions of this subpart.

(a) For the purposes of this subpart, the following fuel s are subject to the standards and requirements of this subpart:

(1) Reformulated and conventional gasoline and RBOB, and CBOB (collectively called “gasoline” unless otherwise specified).

(2) Any blendstock (not including oxygenates) blended with PCG, a s defined in §80.2(d), subject to the provisions of §80.1640.

(3) Oxygenates blended with gasoline, RBOB, or CBOB.

(4) E51

- 83

(b) For the purposes of this subpart, the following fuels are not subject to the standards and requirements of this subpart:

(1) Gasoline that is used to fuel aircraft, racing vehicles or racing boats that are used only in sanctioned racing events, provided that:

(i) Product transfer documents associated with such gasoline, and any pump stand from which such gasoline is dispen sed, identify the gasoline either as gasoline that is restricted for use in aircraft, or as gasoline that is restricted for use in racing motor vehicles or racing boats that are used only in sanctioned racing events;16

(ii) The gasoline is completely segreg ated from all other gasoline throughout production, distribution and sale to the ultimate consumer; and

(iii) The gasoline is not made available for use as motor vehicle gasoline, or dispensed for use in motor vehicles, except for motor vehicles used only in sanctioned racing events.

(2) California gasoline as defined in §80.1600 subject to the provisions of §80.1654.

(3) Gasoline that is exported for sale and use outside the U.S.

(4) Exempt fuels under §§80.1655 (national security exemptions), 80.1656 (gasoline used for research, development, or testing purposes), and 80.1658 (gasoline used in American Samoa, Guam, and the Northern Mariana Islands).

§80. 16 04 Gasoline and E51

- 83 s ulfur standards and requirements for parties downstream of refiners and im porters.

(a) The sulfur standard for gasoline and E51

- 83 at any downstream location shall be determined in accordance with the provisions of this section. A downstream location is any point in the gasoline and E51

- 83 distribution system downstream from r efineries and import facilities, including, but not limited to, facilities of any of the following parties:

(1) Distributors.

(2) Carriers.

(3) Oxygenate blenders.

(4) Retailers.

(5) Wholesale purchaser

- consumers.

(b) Except as otherwise provided in this subpart O, the sulfur content of gasoline and E51

- 83 at any downstream location shall not exceed 95 ppm, on a per

- gallon basis, beginning January 1, 2017.

§80.1606 [Reserved] S tanda rds and requirements for E16

- 50.

(a) The sulfur content of E16

- 50 at any location must comply with the requirements of §80.1604.

(b) Beginning November 1, 2017, only the following blendstocks may be used to manufacture E16

- 50:

(1) Gasoline or blendstocks for oxygenate blending that met the sulfur content requirements of §8 0.1603.17

(2) Oxygenate that meets the sulfur requirements of §80.1610.

(3) E51

- 83 that meets the sulfur requirements of §80.1608.

§80.1608 [Reserved] S tanda rds and requirements for E51

- 83.

(a) The standards and requirements in paragraph (b) of this sectio n apply to E51

- 83 manufactured by a party that qualifies as an E51

- 83 blender under § 80.1611. Parties that manufacture E51

- 83 that do not meet the requirements of an E51

- 83 blender are subject to all of the requirements applicable to a refiner in this sub part including those in paragraph (c) of this section.

(b) E51

- 83 manufactured by a party that qualifies as an E51

- 83 blender must satisfy the requirements of this section.

(1) Each batch must comply with the same downstream cap on maximum sulfur content specified for gasoline in §80.1603(a)(2).

(2) The benzene content of each batch must not be greater than 0.20 volume percent.

(3) Each batch must be composed only of carbon, hydrogen, nitrogen, oxygen, and sulfur.

(4) The Reid vapor pressure of each batch of E51

- 83 must comply with the same standards applicable for gasoline in §80.1627(a)(2).

(i) Parties that use only denatured fuel ethanol that meets the requirements of §80.1610, gasoline that meets the requirements of this subpart, and gasoline blendsto cks for oxygenate blending that meet the requirements of this subpart to produce E51

- 83 may demonstrate compliance with the Reid vapor pressure requirements in this section by retaining the product transfer documents for these blendstocks for 5 years and m aking them available to EPA upon request.

(ii) Parties that use butane and/or natural gas liquids in the manufacture of E51

- 83 must demonstrate compliance with the Reid vapor pressure requirements of this section by testing in accordance with the require ments of §80.1630.

(c) E51

- 83 manufactured by a party that does not qualify as an E51

- 83 blender under § 80.1611 must satisfy the requirements in this paragraph (c) of this section in addition to the other requirements for a refiner under this subpart

(1) R egistration . A producer of E51

- 83 must register with EPA pursuant to the requirements of § 80.76.

(2) E51

- 83 Composition . A producer of E51

- 83 must attest that the E51

- 83 it produces is composed solely of carbon, hydrogen, nitrogen, oxygen, and sulfur.18

(3 ) Benzene Standard . The benzene content of each production batch of E51

- 83 must not exceed 0.20 volume percent as determined in accordance with the test requirements at §80.1632.

(4) Average sulfur standard . The volume weighted average sulfur content of ba tches of E51

- 83 produced during a calendar year must meet the requirements specified for gasoline in §80.1603(a)(1).

(5) Per batch sulfur cap. Each batch of E51

- 83 must meet the maximum sulfur content specifications applicable to a gasoline refiner at §80 .1603(a)(2).

(6) R eid vapor pressure standard . The Reid vapor pressure of each batch of E51

- 83 must comply with the same standards applicable for gasoline in §80.1627(a)(2). Demonstration of compliance with the RVP requirements must be determined by testi ng in accordance with the test requirements at §80.1630.

§80. 16 10 S tanda rds and requirements for producers of denatured fuel ethanol and other oxygenates for use by gasoline oxygenate blenders

. Beginning January 1, 2017, producers of denatured fuel ethano l (DFE) or other oxygenates for

use by oxygenate blenders under § 80.1609 and E51

- 83 blenders under § 80.1611 must comply with the following requirements:

(a) Standards.

(1) The sulfur content must not be greater than 10 ppm as determined in accordance wit h the test requirements of §80.1630.

(2) The DFE or other oxygenate must be composed solely of carbon, hydrogen, nitrogen, oxygen and sulfur.

(3) In the case of DFE, only gasoline, RBOB, CBOB, or natural gas liquids may be used as denaturants.

(4) The concentration of all denaturants used in DFE is limited to a maximum of 2.5 volume percent.

(b) Registration . Unless registered under § 80.1450, the producer of DFE or other oxygenate must register with EPA pursuant to the requirements of § 80.1650.

( c ) PTDs

. The producer of DFE or other oxygenate must initiate a PTD for each batch of DFE or other oxygenate that it ships from its facility which contains the statement in either paragraph (c)(1) or (c)(2) of this section, as applicable.

(1) For DFE, “M eets EPA standards for denatured fuel ethanol for use in gasoline and E51

- 83 ”; or19

(2) For oxygenates other than DFE, “Meets EPA standards for motor fuel oxygenates for use in gasoline and E51

- 83 ”

(3) PTDs that are complaint with the requirements in para graph (c) of this section must be transferred from each party transferring oxygenate to each party that receives oxygenate through to the oxygenate blender.

(d) Every batch of oxygenate produ ced or imported at oxygenate production or import facility shal l be assigned a number (the “batch number”), consis ting of the EPA

- assigned oxygenate producer or importer registration number, the EPA facility registration number, the last two digits of the year in which the batch was produced, and a unique number for t he batch, beginning with the number one for the first batch produced or imported each calendar year and each subsequent batch during the calendar year being assigned the next sequential number ( e.g. , 4321

– 54321

– 95

– 000001, 4321

– 543321

– 95

– 000002, etc.)

§§ 80.1611

— 80.1612 [Reserved] Blended E51

- 83 requirements.

A manufacturer of E51

- 83 who satisfies the requirements in this section is subject to the requirements and prohibitions applicable to downstream parties and the prohibition specified in §80. 1660. Su ch an E51

- 83 blender must only use only the following blendstocks to produce E51

- 83:

(a) Gasoline that meets the requirements of this subpart. In reformulated gasoline areas, only reformulated gasoline may be used.

(b) Gasoline blendstocks for oxygenate b lending that meets the requirements of this subpart. In reformulated gasoline areas, only reformulated blendstock for oxygenate blending may be used.

(c) Denatured fuel ethanol that meets the requirements of §80.1610.

(d) Natural gas liquids that meet the requirements of §80.1612.

(e) Butane that either meets the requirements for commercial grade butane in §80.82(c) or the requirements for noncommercial grade butane in §80.82(d). If non

- commercial grade butane is used, the E51

- 83 blender must conduct a qu ality assurance program that meets the requirements of §80.82(b)(1)(i) and (ii).

§80.1612 S tanda rds and requirements for natural gas liquids blendstock used by E51

- 83 blenders.

(a) A producer or importer of NGL for use in the manufacture of E51

- 83 by bl enders under § 80.1611 must satisfy the requirements in this paragraph.

(1) Registration

. Register with EPA pursuant to the requirements of § 80.1650.20

(2) NGL Composit i on

. Certify that the NGL it produces is composed solely of carbon, hydrogen, nitrogen, o xygen, and sulfur.

(3) Sulfur standard

. Demonstrate that the sulfur content of each production batch of NGL is not greater than 10 ppm as determined in accordance with the test requirements at §80.1630.

(4) Benzene Stand ar d

. Demonstrate that the benze ne content of each production batch of NGL is not greater than 0.03 volume percent as determined in accordance with the test requirements at §80.1630.

(5) Sources of natural gas liquids

. Certify that the NGL was derived solely of from natural gas liquids fraction ation facilities and natural gas proces sing plants

. (6) PTDs

. Initiate a PTD for each batch of NGL which states: “Meets EPA standards for natural gas liquids for use by an E51

- 83 blender. Cannot be sold as gasoline, RBOB, or CBOB.”.

(7) Every bat ch of NGL produ ced or imported at an NGL production or import facility shall be assigned a number (the “batch number”), consis ting of the EPA

- assigned NGL producer or importer registration number, the EPA facility registration number, the last two digits o f the year in which the batch was produced, and a unique number for the batch, beginning with the number one for the first batch produced or imported each calendar year and each subsequent batch during the calendar year being assigned the next sequential n umber ( e.g. , 4321

– 54321

– 95

– 000001, 4321

– 543321

– 95

– 000002, etc.)

(b ) NGL and E51

- 83 made from NGL can not be sold as gasoline or E16 or be commingled with gasoline or E16

- 50 and subsequently sold as gasoline or E16

- 50.

§ 80.1613 Standards and other require ments for gasoline additive manufacturers and blenders of additives used in gasoline and E51

- 83

.

Gasoline additive m M anufacturers and blenders of additives used in gasoline and E51

- 83 must meet the following requirements:

(a) Gasoline a A dditive manufactu rers, as defined in §79.2(f), must meet the following requirements:

(1)(i) Except as otherwise provided, this section applies to any additive, as defined in §79.2(e), manufactured for use in gasoline or E51

- 83 that is not an oxygenate compound, and tha t is sold for use at a concentration of less than 1.0% by volume.

(ii) Oxygenate compound additives subject to the 10 ppm per

- gallon sulfur standard and the requirements of §80.1610 are not subject to the provisions of this section except for the provisi ons of paragraph (b)(1) of this section.21

(2) The additive must contribute no more than 3 ppm on a per gallon basis to the sulfur content of gasoline or E51

- 83 when used at the maximum recommended treatment rate.

(3) The additive manufacturer must mainta in records of its additive production quality control activities which demonstrates that the sulfur content of additive production batches complies with the sulfur requirement in paragraph (a)(1) of this section and make these records available upon reques t.

(4) The maximum treatment rate on the product transfer document for the additive must state all the following:

(i) The maximum registered concentration.

(ii) The maximum allowed treatment rate which corresponds to the maximum registered concentratio n. The maximum allowed concentration must comply with the requirements in paragraph (a)(2) of this section.

(b) The following provisions apply to parties who are downstream of the gasoline refiner or importer and who blend additives to gasoline, RBOB or CBOB and who are not refiners.

(1) On any occasion where the additive blender is solely acting as an oxygenate blender, as defined in §80.2(mm), it is subject to the prohibition in §80.1660(e) and the downstream gasoline sulfur standard of §80.1604(b).

( 2) On any occasion where an additive blender blends an additive (subject to the requirements of §80.1613(a)) at a concentration of less than 1.0% by volume, it is subject to the prohibition in §80.1660(f) and the downstream gasoline sulfur standard of §80. 1604(b).

(3) On any occasion where an additive blender blends an additive at a concentration of 1.0% by volume or greater, it is a fuel manufacturer as defined in §79.2(d), and is subject to all the provisions that apply to refiners under this subpart O.

§ 80.16 50 Registration.

The following registration requirements apply under this subpart:

(a) Registration with the Administrator of EPA is required for any:

(1) Gasoline refiner or importer having any refinery or import facility subject to the gasolin e sulfur standards under this subpart O.

(2) Oxygenate producer or importer having any oxygenate production facility or import facility subject to the oxygenate sulfur standards under §80.1610 unless already registered under §80.1450.22

(3) Oxygenate blend er who has any oxygenate blending facility that blends oxygenate into RBOB where the resulting gasoline is subject to the gasoline sulfur standards under this subpart O.

(b) Registration dates.

(1) Any gasoline refiner or importer required to register shall do so by March 31, 2013, or at least thirty days in advance of the first date that such person will produce or import reformulated gasoline, conventional gasoline, RBOB, or CBOB, whichever is later.

(2) Any oxygenate producer or importer required t o register shall do so by December 1, 2017, or at least thirty days in advance of the first date that such person will produce or import oxygenate, whichever is later.

(3) Any oxygenate blender required to register shall do so by March 31, 2013, or at lea st thirty days in advance of the first date that such person will blend oxygenate into RBOB, whichever is later.

(c) Refiner registration.

(1) Registration shall be on forms prescribed by the Administrator, and shall include all the following information :

(i) The name, business address, contact name, e

- mail address, and telephone number of the refiner.

(ii) For each separate refinery, the facility name, physical location, contact name, e

- mail address, telephone number, and type of facility.

(iii) For e ach separate refinery:

(A) Whether records are kept on

- site or off

- site of the refinery.

(B) If records are kept off

- site, the primary off

- site storage facility name, physical location, contact name, e

- mail address, and telephone number.

(iv) For each s eparate refinery that produces reformulated gasoline and/or RBOB, the name, address, contact name, e

- mail address, and telephone number of the independent laboratory used to meet the independent analysis requirements of §80.65(f).

(2) EPA will supply a co mpany registration number to each refiner, and a facility registration number for each refinery that is identified. These registration numbers shall be used in all reports to the Administrator.

(3) Updates to registration.23

(i) Any refiner shall submit up dated registration information to the Administrator within thirty days of any occasion when the registration information previously supplied becomes incomplete or inaccurate; except that

(ii) EPA must be notified in writing of any change in designated ind ependent laboratory under paragraph (a)(1)(iv) of this section at least thirty days in advance of such change.

(d) Gasoline importer registration.

(1) Registration shall be on forms prescribed by the Administrator, and shall include all the following inf

ormation:

(i) The name, business address, contact name, e

- mail address, and telephone number of the importer.

(ii) For each importer’s operations in a single PADD:

(A) Whether records are kept on

- site at the registered address or off

- site.

(B) If recor ds are kept off

- site, the primary off

- site storage facility name, physical location, contact name, e

- mail address, and telephone number.

(C) For importers that import reformulated gasoline and/or RBOB, the name, address, contact name and telephone number of the independent laboratory used to meet the independent analysis requirements of §80.65(f).

(2) EPA will supply a company registration number to each importer. This registration number shall be used in all reports to the Administrator.

(3) Updates to registration.

(i) Any importer shall submit updated registration information to the Administrator within thirty days of any occasion when the registration information previously supplied becomes incomplete or inaccurate; except that

(ii) EPA must be not ified in writing of any change in designated independent laboratory under paragraph (d)(1)(ii)(C) of this section at least thirty days in advance of such change.

(e) Oxygenate producer registration.

(1) Registration shall be on forms prescribed by the Ad ministrator, and shall include all the following information:

(i) The name, business address, contact name, e

- mail address, and telephone number of the oxygenate producer.24

(ii) For each separate oxygenate production facility, the facility name, physical location, contact name, telephone number, and type of facility.

(iii) For each separate oxygenate production facility:

(A) Whether records are kept on

- site or off

- site of the refinery.

(B) If records are kept off

- site, the primary off

- site storage facil ity name, physical location, contact name, and telephone number.

(2) EPA will supply a company registration number to each oxygenate producer, and a facility registration number for each oxygenate production facility that is identified. These registratio n numbers or those provided under §80.1450 shall be used in all reports to the Administrator.

(3) Updates to registration. Any oxygenate producer shall submit updated registration information to the Administrator within thirty days of any occasion when t he registration information previously supplied becomes incomplete or inaccurate.

(f) Oxygenate importer registration.

(1) Registration shall be on forms prescribed by the Administrator, and shall include all the following information:

(i) The name, bus iness address, contact name, and e

- mail address, telephone number of the importer.

(ii) For each importer’s operations in a single PADD:

(A) Whether records are kept on

- site at the registered address or off

- site.

(B) If records are kept off

- site, the pr imary off

- site storage facility name, physical location, contact name, e

- mail address, and telephone number.

(2) EPA will supply a company registration number to each importer. This registration number shall be used in all reports to the Administrator.

(g) Oxygenate blender registration.

(1) Registration shall be on forms prescribed by the Administrator, and shall include all the following information:

(i) The name, business address, contact name, and e

- mail address, telephone number of the oxygenate b lender.25

(ii) For each separate oxygenate blending facility, the facility name, physical location, contact name, telephone number, and type of facility.

(iii) For each separate oxygenate blending facility:

(A) Whether records are kept on

- site or off

- site of the refinery.

(B) If records are kept off

- site, the primary off

- site storage facility name, physical location, contact name, e

- mail address, and telephone number.

(2) EPA will supply a company registration number to each oxygenate blender, and a faci lity registration number for each oxygenate blending facility that is identified. These registration numbers or those provided under §80.1450 shall be used in all reports to the Administrator.

(3) Updates to registration. Any oxygenate producer shall su bmit updated registration information to the Administrator within thirty days of any occasion when the registration information previously supplied becomes incomplete or inaccurate.

(h) E51

- 83 manufacturers that do not meet the requirements of an E51

- 83 bl ender pursuant to §80.1611 and manufactures of natural gas liquids for use in the production of E51

- 83 must provide EPA all the following information if such information has not already been provided under the provisions of this part 80:

(1) Any person req uired to register shall do so at least thirty days in advance of the first date that such person will produce or import E51

- 83 or natural gas liquids for use in the production of E51

- 83 whichever is later.

(2) Registration shall be on forms prescribed by t he Administrator, and shall include all the following information:

(i) The name, business address, contact name, and telephone number of the producer or importer of E51

- 83 or natural gas liquids for use in the production of E51

- 83.

(ii) For each separate p roduction facility of E51

- 83 or natural gas liquids for use in the production of E51

- 83, the facility name, physical location, contact name, telephone number, and type of facility.

(iii) For each separate production facility, import facility, and/or for ea ch importer's operations in a single PADD, all of the following:

(A) Whether records are kept on

- site or off

- site of the production facility, or in the case of importers, the registered address.

(B) If records are kept off

- site, the primary off

- site storag e facility name, physical location, contact name, and telephone number.26

(4) EPA will supply a registration number to each producer and importer of E51

- 83 or natural gas liquids for use in the production of E51

- 83, and a facility registration number for

eac h production or import facility that is identified, which shall be used in all reports to the Administrator.

(5)(i) Any pr oducer or importer of E51

- 83 or natural gas liquids for use in the production of E51

- 83 shall submit updated registration information to the Administrator within thirty days of any occasion when the registration information previously supplied becomes incomplete or inaccurate.

(ii) Reserved

(6) Entity registration.

(i) Registration shall be on forms prescribed by the Administrator, and s hall include the name, business address, contact name, telephone number, e

- mail address, and type of production, importation, or distribution activity or activities engaged in by the entity.

(ii) Registration shall include the information required under pa ragraph (c) of this section for each facility owned or operated by the entity that delivers or receives custody of gasoline.

§ 80.16 51 Product transfer document requirements.

(a) On each occasion that any person transfers custody or title to any gasoline, RBOB, CBOB, or oxygenate , natural gas liquids for use by an E51

- 83 blender, E16

- 50, or E51

- 83 other than when gasoline , E16

- 50, or E51

- 83 is sold or dispensed for use in motor vehicles at a retail outlet or wholesale purchaser

- consumer facility, the trans feror shall provide to the transferee documents which include all the following information:

(1) The name and address of the transferor.

(2) The name and address of the transferee.

(3) The volume of gasoline, RBOB, CBOB, or oxygenate

, natural gas liquid for use by an E51

- 83 blender E16

- 50, or E51

- 83 which is being transferred.

(4) The location of the gasoline, RBOB, CBOB, or oxygenate , natural gas liquid for use by an E51

- 83 blender, E16

- 50, or E51

- 83 at the time of the transfer.

(5) The date of the tr ansfer.

(b) On each occasion when any person transfers custody or title to any gasoline for export or with an exemption under §§80.1654, 80.1655, 80.1656, and/or 80.1658

, any of the following statements must be included on the product transfer document:27

(1) For gasoline with a national security exemption under §80.1655, “This gasoline is for use in vehicles , engines, or equipment under an EPA

- approved national security exemption only.”

. (2) For gasoline with a research, development, or testing exemption under §80.1656, “This gasoline is for research, development, or testing purposes only.”

. (3) For gasoline for use in American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands under §80.1658, “This is gasoline for use only in Guam, America n Samoa, or the Northern Mariana Islands.”.

(4) For gasoline for export purposes, “ This gasoline is for export only.”.

(5) For gasoline for racing purposes, “This gasoline is for racing purposes only.”.

(6) For California gasoline, pursuant to §80.1654, “California gasoline.”.

(c) On each occasion when any person transfers custody or title to any gasoline additive intended to be used at less than 1 volume percent, other than when gasoline is sold or dispensed for use in motor vehicles at a retail outlet or wholesale purchaser

- consumer facility, the transferor shall provide to the transferee documents which include information on the maximum recommended treatment level.

(d) On each occasion when any person transfers natural gas liquids for use by an E51

- 83 blender, the transferor shall provide transfer documents which state “ Meets EPA standards for natural gas liquids for use by an E51

- 83 blender. Cannot be sold as gasoline, RBOB, or CBOB ”.

(e) On each occasion when any person transfers E51

- 83 other tha n when it is sold or dispensed for use in motor vehicles at a retail outlet or wholesale purchaser

- consumer facility, the transferor shall provide to the t ransferee documents which state :”E51

- 83”.

(f) On each occasion when any person transfers E16

- 50 othe r than when gasoline is sold or dispensed for use in motor vehicles at a retail outlet or wholesale purchaser

- consumer facility, the transferor shall provide to the t ransferee documents which state :”E16

- 50”.

§ 80.16 52 Reporting requirements.

Beginning w ith the 2017 averaging period or the first year credits are generated under §80.1615 (whichever is earlier), and continuing for each averaging period thereafter, any refiner or importer, any E51

- 83 refiner or importer

, and any oxygenate producer or importer , and any producer or importer of natural gas liquids for use by an E51

- 83 blender , shall submit to EPA annual reports that contain the information required in this section, and any other information as EPA may require.

(a) Refiner and importer a A nnual r eports. Any refiner, for each of its refineries, an y E51

- 83 refiner for each of its E51

- 83 production facilities, any producer of natural gaso line liquids for28

E51

- 83 blending for each of its production facilities, and any importer for the gasoline

, E51

- 83

, or natural gas liquids for E51

- 83 blending that it imports, shall submit a report for each calendar year averaging period that includes all the following information:

(1) T he EPA importer, or refiner and refinery facility registration numbers.

(2) The average standard under §80.1603, reported to two (2) decimal places.

(3) The total volume of gasoline produced or imported, reported to the nearest whole number.

(4) The annual average sulfur level of the gasoline produced or imported, reported to two (2 ) decimal places.

(5) The annual average sulfur level after inclusion of any credits, reported to two (2) decimal places.

(6) Separately provided information for credits, and separately by year of creation, as follows:

(i) The number of credits at the b eginning of the averaging period, reported to the nearest whole number.

(ii) The number of credits generated, reported to the nearest whole number.

(iii) The number of credits used, reported to the nearest whole number.

(iv) If any credits were obtained from or transferred to other parties; and for each other party, its name and EPA refiner or importer registration number, and the number of credits obtained from or transferred to the other party.

(v) The number of credits that expired at the end of the averaging period, reported to the nearest whole number.

(vi) The number of credits that will carry over into the subsequent averaging period, reported to the nearest whole number.

(7) For each batch of gasoline produced or imported during the averaging p eriod, all of the following:

(i) The batch number assigned under §80.65(d)(3); except that if composite samples of conventional gasoline representing multiple batches produced subsequent to December 31, 2003, are tested under §80.101(i)(2) for anti

- dumpin g compliance purposes, for purposes of this subpart a separate batch number must be assigned to each batch using the batch numbering procedures under §80.65(d)(3).29

(ii) The date the batch was produced.

(iii) The volume of the batch, reported to the neare st whole number.

(iv) The sulfur content of the batch, reported to two (2) decimal places, along with identification of the test method used to determine the sulfur content of the batch, as determined under §80.1630.

(8) The total volume of E51

- 83 produce d or imported, reported to the nearest whole number.

(9) The annual average sulfur level of the E51

- 83 produced or imported, reported to two (2) decimal places. Gasoline sulfur credits may not be used to determine compliance with the average sulfur standa rd for E51

- 83 under §80.1608(c),

(11) Certification that all batches of E51

- 83 produced or imported were compliant with the requirements of §80.1608(c).

(12) The total volume of natural gas liquids for use by E51

- 83 blenders produced or imported, report ed to the nearest whole number

(13) Certification that all batches of natural gas liquids for use by E51

- 83 blenders were compliant with the requirements of §80.1612.

( 14 8 ) All values measured or calculated pursuant to the requirements of this paragraph (a ) shall be in accordance with the rounding procedure specified in §80.9.

( 15 9 ) When submitting reports under this paragraph (a) from January 1, 2017 through December 31, 2019, any importer shall exclude Certified Sulfur

- FRGAS.

(b) Additional reporting re quirements for importers. From January 1, 2017 through December 31, 2019, importers shall report all of the following information for Sulfur

- FRGAS imported during an annual averaging period:

(1) The EPA refiner and refinery registration numbers of each f oreign refiner and refinery where the Certified Sulfur

- FRGAS was produced.

(2) The total gallons of Certified Sulfur

- FRGAS and Non

- Certified Sulfur

- FRGAS imported from each foreign refiner and refinery, reported to one (1) decimal place.

(c) Oxygenate pr oducer reports. On an annual basis, the producer of DFE or other oxygenate must submit a summary report to EPA which includes all of the following:

(1) The facility identification information provided pursuant to §80.1650.

(2) The total volume of all ba tches of DFE and other oxygenate produced.30

(3) An attestation that all of the batches of DFE and other oxygenate produced during the compliance period were in compliance with the requirements of this subpart.

(d) Report submission. Any annual report req uired under this section shall be:

(1) Signed and certified as meeting all of the applicable requirements of this subpart by the owner or a responsible corporate officer of the refiner or importer; and

(2) Submitted to EPA no later than the last day of F ebruary for the prior calendar year averaging period.

(e) Attest reports. Attest reports for refiner and importer attest engagements required under §80.1667 shall be submitted to the Administrator by March 31, 2013 of each year for the prior calendar yea r averaging period.

§ 80.16 53 Recordkeeping.

(a) Records that must be kept for gasoline

. Beginning January 1, 2017 or January 1 of the first year that credits are generated, any person who produces, imports, sells, offers for sale, dispenses, distribute s, supplies, offers for supply, stores, or transports gasoline, shall keep records that contain all of the following information:

(1) The product transfer document information required under §80.1651.

(2) All of the following information for any sampling and testing for sulfur content required under this subpart O:

(i) The location, date, time, and storage tank or truck identification for each sample collected.

(ii) The name and title of the person who collected the sample and the person who performed t he test.

(iii) The results of the test as originally printed by the testing apparatus, or where no printed result is produced, the results as originally recorded by the person who performed the
test.

(iv) Any record that contains a test result for the sa mple that is not identical to the result recorded under paragraph (a)(2)(iii) of this section.

(v) The test methodology used.

(b) Additional records that refiners and importers of gasoline must keep. Beginning January 1, 2014, or January 1 of the first year credits are generated under §80.1615, whichever is earlier, any refiner for each of its refineries and any importer for the gasoline it imports, shall keep records that include all of the following information:31

(1) For each batch of gasoline produced or imported:

(i) The batch volume.

(ii) The batch number assigned under §80.65(d)(3) and the appropriate designation under paragraph (b)(1)(iv) of this section; except that for composite samples of conventional gasoline representing multiple batches , t hat are tested under §80.101(i)(2) for purposes of this subpart, a separate batch number must be assigned to each batch using the batch numbering procedures under §80.65(d)(3).

(iii) The date of production or importation.

(iv) If appropriate, the designa tion of the batch as California gasoline under §80.1654, exempt gasoline for national security purposes under §80.1655, exempt gasoline for research and development under §80.1656, or for export outside the United States.

(v) The test methodology used.

( 2) Information regarding credits, separately kept according to the year of creation; and for credit generation or use starting in 2014. Information shall be kept separately for different types of credits generated under §80.1615:

(i) The number of credit s in the refiner's or importer's possession at the beginning of the averaging period.

(ii) The number of credits generated.

(iii) The number of credits used.

(iv) If any credits were obtained from or transferred to other parties, all the following for

e ach other party:

(A) The party’s name.

(B) The party’s EPA refiner or importer registration number.

(C) The number of credits obtained from, or transferred to, the party.

(v) The number of credits that expired at the end of the averaging period.

(vi) The number of credits in the refiner's or importer's possession that will carry over into the subsequent averaging period.

(vii) Contracts or other commercial documents that establish each transfer of credits from the transferor to the transferee.32

(3) Th e calculations used to determine compliance with the applicable sulfur average standards of §80.1603, or §80.1604.

(4) The calculations used to determine the number of credits generated under §80.1615.

(5) A copy of all reports submitted to EPA under §80 .1652.

(6) In the case of parties who process transmix, records of any sampling and testing required under §80.1607.

(c) Additional records importers of gasoline must keep. Any importer shall keep records that identify and verify the source of each batc h of certified Sulfur

- FRGAS and non

- certified Sulfur

- FRGAS imported and demonstrate compliance with the requirements for importers under §80.1666.

(d) Records that producers of denatured fuel ethanol and other oxygenates must keep

.
(1) The date each bat ch was produced.

(2) The batch volume and an identification of the test methodology used.

(3) The test results on the sulfur content of each batch and the test methodology used.

(4) The volume percent denaturant used in each batch if the oxygenate is denatured fuel ethanol.

(5) The type and source of the denaturant used in each batch if the oxygenate if denatured fuel ethanol.

(e) Records that parties that take custody of oxygenates must keep. All parties that take custody of oxygenate from the ox ygenate producer through to the oxygenate blender must keep a copy of the product transfer document for each batch of oxygenate.

(f) Length of time records must be kept. The records required under this subpart O shall be kept for five years from the date they were created; except in the following cases:

(1) Transfers of credits. Except as provided in paragraph (f)(2) of this section, records relating to credit transfers shall be kept by the transferor for 5 years from the date the credits are transferre d; and shall be kept by the transferee for 5 years from the date the credits were transferred, used, or terminated, whichever is later.

(2) Early credits.

(i) Where the party generating the credits does not transfer the credits, records must be kept for 5 years from the date of creation, use, or termination, whichever is later.33

(ii) Where early credits are transferred, records relating to such credits shall be kept by the transferor for 5 years from the date the credits are transferred; and shall be kept by the transferee for 5 years from the date the credits were transferred, used, or terminated, whichever is later.

(g) Make records available to EPA. On request by EPA the records required in this section shall be provided to the Administrator's authori zed representative. For records that are electronically generated or maintained, the equipment and software necessary to read the records shall be made available; or, if requested by EPA, electronic records shall be converted to paper documents which shal l be provided to the Administrator's authorized representative.

(h) Records that producers and importers of natural gas liquids for use in the production of E51

- 83 must keep.

(1) The product transfer document information required under §80.1651.

(2) The da te each batch was produced.

(3) The batch volume.

(4) All of the following information for any sampling and testing for sulfur content required under this subpart O:

(i) The location, date, time, and storage tank or truck identification for each sample

co llected.

(ii) The name and title of the person who collected the sample and the person who performed the test.

(iii) The results of the test as originally printed by the testing apparatus, or where no printed result is produced, the results as originally r ecorded by the person who performed the
test.

(iv) Any record that contains a test result for the sample that is not identical to the result recorded under paragraph (a)(2)(iii) of this section.

(v) The test methodology used.

(5) The test results on the be nzene content of each batch and the test methodology used.

(6) The source of each batch of NGL per §80.1612(a)(5).

(i) Records that parties that take custody of NGL for use by E51

- 83 blenders must keep. All parties that take custody of NGL for use by E51

- 83 blenders from the producer or importer through to the E51

- 83 blender must retain records of the product transfer document information required in §80.1651.34

(j) Records that must be kept by producers and importers of E51

- 83 that are subject the requireme nts of a refiner under §80.1608(c).

(1) The product transfer document information required under §80.1651.

(2) The date each batch was produced.

(3) The batch volume.

(4) All of the following information for any sampling and testing for sulfur content
req uired under this subpart O:

(i) The location, date, time, and storage tank or truck identification for each sample collected.

(ii) The name and title of the person who collected the sample and the person who performed the test.

(iii) The results of the tes t as originally printed by the testing apparatus, or where no printed result is produced, the results as originally recorded by the person who performed the
test.

(iv) Any record that contains a test result for the sample that is not identical to the resul t recorded under paragraph (a)(2)(iii) of this section.

(v) The test methodology used.

(5) The test results on the benzene content of each batch and the test methodology used.

(6) The test results on the RVP of each batch and the test methodology used.

(k) Records that must be ke pt by parties that qualify as an E51

- 83 blender under §80.1611

. (1) The product transfer document information required under §80.1651 for the blendstocks used.

(2) The date each batch was produced.

(3) The batch volume.

(4) In case s where butane and/or NGL is used to produce E51

- 83, the test results on the RVP of each batch and the test methodology.

(l) Records that parties that take custody of E51

- 83 must keep. All parties that take custody of E51

- 83 other than when E51

- 83 is sold or dispensed for use in motor vehicles at a retail outlet or wholesale purchaser

- consumer facility, must retain records of the product transfer document information under §80.1651.35

§80. 16 60 Prohibited acts.

No person shall:

(a) Averaging violation. Pr oduce or import gasoline that does not comply with the applicable sulfur average standard under §80.1603. Produce or import E51

- 83 that does not comply with the applicable sulfur average standard under §80.1608(c).

(b) Cap standard violation. Produce, i mport, sell, offer for sale, dispense, supply, offer for supply, store or transport gasoline or oxygenate (including any denaturant) that does not comply with the applicable sulfur cap standards under §80.1603, §80.1604, or §80.1610. Produce, import, sell, offer for sale, dispense, supply, offer for supply, store or transport E16

- 50, E51

- 83, or natural gas liquids for use by E51

- 83 blenders that does not comply with the applicable sulfur cap standards under §80.1604, §80.1606, §80.1608, §80.161 1 , or §80.161 2.

(c) Caus ing an averaging or cap standard violation. Cause another person to commit an act in violation of paragraph (a), (b), (d), (e), (f), (g), or (h) of this section.

(d) Causing violating gasoline , oxygenate, E16

- 50, E51

- 83, or natural gas liquid s for use by E51

- 83 blenders to be in the distribution system. Cause gasoline

, E16

- 50, E51

- 83, or natural gas liquids for use by an oxygenate blender to be in the distribution system which does not comply with an applicable sulfur cap standard under §80.1 603, §80.1604, §80.1608, or §80.1610

, or §80.1612

.
(e) Oxygenate violation. Starting March 1, 2017, blend into gasoline, RBOB, or CBOB

, E16

- 50, or E51

- 83 any oxygenate, including but not limited to denatured ethanol, that has a sulfur content higher than 10 ppm.

(f) Additive blender violation. Unless acting in the capacity of a gasoline refiner or importer under §80.1613, introduce an additive other than an oxygenate compound into gasoline, CBOB, or RBOB

, E16

- 50, or E51

- 83 which contributes more than 3 ppm to the sulfur content of the finished gasoline, CBOB, or RBOB , E16

- 50, or E51

- 83

. (g) Additive manufacturer violation . Cause or contribute to the introduction into commerce of a n gasoline additive intended to be used in gasoline, E16

- 50, or E51

- 83 a t less than 1 volume percent which does not comply with the requirements of §80.1613.

(h) Credit violation. Generate, transfer, or use invalid credits or improperly transfer or use credits.

(i) Benzene cap v iolation for E51

- 83, and natural gas liquids fo r use by E51

- 83 blenders

. Produce or import E51

- 83, or natural gas liquids for use by E51

- 83 blenders that does not comply with the applicable benzene cap standard under §80.1608(c), or §80.1612.36

(j) RVP standard violation for E51

- 83 . Produce or import E 51

- 83 that does not comply with the RVP standard under §80.1608.

( k i ) Failure to meet a requirement

. No person shall fail to meet a requirement that applies to that person under this subpart.

§ 80.16 62 Liability for violations under subpart O

.

The follo wing persons are liable for violations under this subpart:

(a) Persons liable for violations of prohibited acts

.
(1) Averaging violation. Any refiner or importer who violates §80.1608(c)(4) or §80.1660(a) is liable for the violation.

(2) Causing an ave raging violation. Any refiner, importer, distributor, reseller, carrier, retailer, wholesale purchaser

- consumer, or oxygenate blender who causes another party to violate §80.1608(c)(4), or §80.1660(a), is liable for a violation of §80.1660(c).

(3) Cap st andard violation. Any refiner, importer, distributor, reseller, carrier, retailer, wholesale purchaser

- consumer, oxygenate producer, oxygenate blender, E51

- 83 blender, additive manufacturer, or additive blender who owned, leased, operated, controlled or s upervised a facility where a violation of §80.1660(b) occurred, is deemed in violation of §80.1660( c ).

(4) Causing a cap standard violation. Any refiner, importer, distributor, reseller, carrier, retailer, wholesale purchaser

- consumer, oxygenate producer , oxygenate blender, additive manufacturer, or additive blender who produced, imported, sold, offered for sale, dispensed, supplied, offered for supply, stored, transported, or caused the transportation or storage of gasoline

, oxygenate, E16

- 50, or E51

- 83 that violates §80.1660(b), is deemed in violation of §80.1660(c).

(5) Branded refiner/importer liability. Any refiner or importer whose corporate, trade, or brand name, or whose marketing subsidiary’s corporate, trade, or brand name appeared at a facilit y where a violation of §80.1660(b) occurred, is deemed in violation of §80.1660(b).

(6) Causing violating gasoline

, E16

- 50, E51

- 83, or natural gas liquids for use by an E51

- 83 blender to be in the distribution system. Any refiner, importer, distributor, reseller, carrier, oxygenate producer, oxygenate blender, natural gas liquids manufacturer, E51

- 83 blender, additive manufacturer, or additive blender who owned, leased, operated, controlled or supervised a facility from which gasoline

, oxygenate, E16

- 50, E51

- 83, or natural gas liquids for use by an E51

- 83 blender was released into the distribution system which does not comply with an applicable sulfur cap standard or a sulfur averaging standard is deemed in violation of §80.1660(d).37

(7) Carrier causation. In order for a carrier to be liable under paragraph (a)(2), (a)(3), (a)(4), or (a)(6) of this section, EPA must demonstrate, by reasonably specific showing by direct or circumstantial evidence, that the carrier caused the violation.

(8) Oxygenate blende r violation. Any oxygenate blender who violates §80.1660(e) is liable for the violation.

(9) Additive manufacturer violation. Any additive manufacturer who violates §80.1660(g) is deemed liable for the violation.

(10) Additive blender violation . Any additive blender who violates §80.1660(f) is deemed liable for the violation.

(11) Credit violation. Any refiner or importer who violates §80.1660(h) is liable for the violation.

(12) Parent corporation liability. Any parent corporation is liable f or any violations of this subpart that are committed by any of its wholly

- owned subsidiaries.

(13) Joint venture and joint owner liability. Each partner to a joint venture, or each owner of a facility owned by two or more owners, is jointly and severally liable for any violation of this subpart that occurs at the joint venture facility or facility owned by the joint owners, or is committed by the joint venture operation or any of the joint owners of the facility.

(b) Persons liable for failure to meet ot her provisions of this subpart. Any person who:

(1) Fails to comply with a provision of this subpart not addressed in paragraph (a) of this section is liable for a violation of that provision.

(2) Caused another person to fail to meet a requirement of t his subpart not addressed in paragraph (a) of this section, is liable for causing a violation of that provision.

§ 80.16 65 Penalties.

(a) Any person liable for a violation under §80.1662 is subject to civil penalties as specified in section 205 of the Cle an Air Act for every day of each such violation and the amount of economic benefit or savings resulting from each violation.

(b) Any person liable under §80.1662(a)(1) or (2) for a violation of the applicable sulfur averaging standard or causing another p arty to violate that standard during any averaging period, is subject to a separate day of violation for each and every day in the averaging period. Any person liable under §80.1662(a)(11) or §80.1662(b) for a failure to fulfill any requirement for credit generation, transfer, use, banking, or deficit correction, is subject to a separate day of violation for each and every day in the averaging period in which invalid credits are generated or used.38

(c)(1) Any person liable under §80.1662(a)(3) through (a)( 10) for a violation of an applicable sulfur per gallon cap standard under this subpart O or of causing another party to violate a cap standard, is subject to a separate day of violation for each and every day the non

complying gasoline , E16

- 50, or E51

- 83 r emains any place in the gasoline distribution system.

(2) Any person liable under §80.1662(a)(6) for causing gasoline , E16

- 50, or E51

- 83 to be in the distribution system which does not comply with an applicable sulfur cap standard, or a sulfur averaging s tandard, is subject to a separate day of violation for each and every day that the

non

- complying gasoline , E16

- 50, or E51

- 83 remains any place in the gasoline distribution system.

(3) For purposes of paragraph (c) of this section, the length of time the g asoline , E16

- 50, or E51

- 83 in question remained in the gasoline distribution system is deemed to be twenty

- five days, unless a person subject to liability or EPA demonstrates by reasonably specific showings, by direct or circumstantial evidence, that the n on

- complying gasoline , E16

- 50, or E51

- 83 remained in the gasoline distribution system for fewer than or more than twenty

- five days.

(d) Any person liable under §80.1662(b) for failure to meet, or causing a failure to meet, a provision of this subpart is liable for a separate day of violation for each and every day such provision remains unfulfilled.