CaRFG Regulations reflecting amendments Cali fornia Air Resources Board

effective August 29, 2008 

## CALIFORNIA AIR RESOURCES BOARD



## THE CALIFORNIA REFORMULATED GASOLINE

REGULATIONS

Title 13, California Code of Regulations, Sections 2250-2273.5 Reflecting Amendments Effective August 29, 2008CaRFG Regulations reflecting amendments California Air Resources Board

effective August 29,. 2008 i



### CALIFORNIA AIR RESOURCES BOARD



### THE CALIFORNIA REFORMULATED GASOLINE REGULATIONS

Title 13, California Code of Regulations, Sections 2250-2273.5 As of August 29, 2008

NOTE: This is a compilation of California Air Reso urces Board (ARB) motor vehicle gasoline regulations as of August 29, 2008 (resulting from t he June 14, 2007 Board Hearing and subsequent 15-day changes). It includes all amendments effect ive August 29, 2008 and earlier. They are collectively referred to as the California reformul ated gasoline (CaRFG) or cleaner burning gasoline regulations.

Title 13, California Code of Regulations, Division 3, Chapter 5 (Standards for Motor Vehicle Fuels), Article 1 (Standards for Gasoline) consists of two Subarticles. Subarticle 1 (starting with section 2 250) contains standards that became applicable before 19 96. Subarticle 2 (starting with section 2260) cont ains the Phase 2 CaRFG regulations that became applicabl e in 1996, the Phase 3 CaRFG regulations that became effective on December 31, 2002, and the Phas e 3 amendments that became effective on August 29, 2008. Section 2261(c) identifies the preexisti ng subarticle 1 regulations that continue to apply to all California gasoline after April 1, 1996, and which are contained in this compilation: section 2253.4 (Lead/Phosphorus in Gasoline), section 2254 (Mangan ese Additive Content), and section 2257 (Required Additives in Gasoline). Section 2267 continues the preexisting subarticle 1, section 2259 regulation (Exemptions for Motor Vehicle Fuels Used in Test Pr ograms) after April 1, 1996.

This compilation omits the Subarticle 1 regulations that previously sunsetted: section 2251.5 (Reid Va por Pressure of Gasoline Sold After January 1, 1992 and Before March 1, 1996 [sunsetted on March 1, 1996]), and section 2258 (Oxygen Content of Gasolin e in the Wintertime [sunsetted on February 29, 1996]). It also omits the subarticle 1 regulation s – section 2250 (Degree of Unsaturation of Gasolin e) and section 2252 (Sulfur Content of Gasoline) – tha t applied from March 1996 through February 1998 only to small refiners that qualified under section 2272 for a temporary exemption from the CaRFG standards for sulfur content, olefin content, T50 a nd T90. The temporary exemptions for small refiner s ended March 1, 1998. Finally, this compilation doe s not include sections 2296 (Motor Fuel Sampling Procedures) and 2297 (Test Method for the Determina tion of RVP Equivalent), which continue to apply.

The Authority and References, which appear at the e nd of each section, have also been excluded from th is compilation in an attempt to shorten this document.

Most Recent Amendments

Rather than listing in detail each of the changes t o the CaRFG3 regulations, the reader should review the Final Regulation Order (resulting from the June 14, 2007 Board Hearing and subsequent 15-day changes)

that contains text shown in underline to indicate a dditions and strikeout to indicate deletions. The Final Regulation Order may be found at http://www.arb.ca.gov/regact/2007/carfg07/finalreg0 7.pdf

.

The following is a brief description of the major c hanges.

• Amend the California Predictive Model to ensure tha t emissions associated with permeation caused by ethanol use are mitigated and incorporate new data;CaRFG Regulations reflecting amendments California Air Resources Board

effective August 29,. 2008 ii • Decrease the sulfur cap limit from 30 parts per mil lion by weight (ppmw) to 20 ppmw (21 ppmw for California reformulated gasoline blendstock for oxygenate blending [CARBOB]) to improve enforceability and facilitate new motor vehicle emi ssions control technology;

• Allow emissions averaging beginning December 31, 20 09, for low level sulfur blends to provide additional flexibility for producers and importers that produce gasoline;

• Apply the 7.00 pounds per square inch (psi) Reid va por pressure (RVP) limit to oxygenated gasoline when the evaporative emissions portion of the Predictive Model is used to certify ethanol blends to reflect that virtually all gasoline will be oxygenated and commingling emissions are not a problem for these fuels;

• Retain the 6.90 RVP limit for non-oxygenated gasoli ne to ensure that no increase in hydrocarbon emissions from commingling with oxygenated gasoline will occur;

• Allow flexibility in setting the oxygen content in the Predictive Model to account for variability in test methods;

• Increase the maximum allowable amount of denaturant in ethanol to be consistent with the current standards of the American Society of Testin g and Materials (ASTM);

• Update the test method for oxygenate content of gas oline;

• Require producers to use the revised Predictive Mod el starting December 31, 2009;

• Add an option to use an alternative emissions reduc tion plan (AERP) beginning December 31, 2009 through December 31, 2011 to help mitigate emi ssions associated with permeation; and

• Require the production of CaRFG compliant with the revised Predictive Model after December
31, 2011.

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effective August 29,. 2008 iii DISCLAIMER

This compilation of the 2007 CaRFG3 Amendments is i ntended solely to help regulated entities comply with the regulations. The preamble, hyperlinks, te xt and paragraph formatting, and Table of Contents contained in this document are for convenience only . This compilation is not meant to be a substitute for the actual text of the regulations. The ARB shall not be responsible for any errors or omissions in t he information provided, and reserves the right to mak e corrections without notice. The Office of Administrative Law (OAL) maintains the official California Code of Regulations, which is available in looseleaf printed format from Thomson - West / Barc lays (1-800-888-3600). An internet version, which is maintained and updated weekly by OAL through a c ontract with Thomson - West / Barclays, may be

found at http://ccr.oal.ca.gov/linkedslice/default.asp?SP=CC R-1000&Action=Welcome . A certified copy of the regulation filing may be obtained from the S ecretary of State Archives (916-653-7715).

The user assumes full responsibility for the files he/she uploads and/or downloads and/or views includ ing data destroyed by viruses or other computer initiat ed problems. Neither the ARB nor any of its respect ive employees warrant that the service will be uninterr upted or error free.CaRFG Regulations reflecting amendments California Air Resources Board

effective August 29,. 2008 iv TITLE 13. MOTOR VEHICLES

DIVISION 3. AIR RESOURCES BOARD

CHAPTER 5. STANDARDS FOR MOTOR VEHICLE FUELS

ARTICLE 1. STANDARDS FOR GASOLINE

SUBARTICLE 1. GASOLINE STANDARDS THAT BECAME APPLIC ABLE BEFORE 1996..............................1

§ 2253.4. Lead in Gasoline.

................................................... ................................................... ...............................1

§ 2257. Required Additives in Gasoline.

................................................... ................................................... .........3

(a) Regulatory Standard.

................................................... ................................................... ...............................3

(b) Definitions.

................................................... ................................................... ...............................................4

(c) Certification Requirements.

................................................... ................................................... .....................6

(d) Recordkeeping.

................................................... ................................................... ........................................8

§ 2258. Oxygen Content of Gasoline in the Wintertim e.

................................................... ..................................9

(a) Regulatory Standard.

................................................... ................................................... ...............................9

(b) Definitions.

................................................... ................................................... .............................................11

(c) Sampling Procedures and Test Methods.

................................................... .................................................13

(d) Inability to Produce Conforming Gasoline in Extraor dinary Circumstances. ..........................................13

(e) Effect of Supply Waiver Under Federal Clean Air Act

. ................................................... ..........................13

§ 2259. Exemptions for Motor Vehicle Fuels Used in Test Programs.

................................................... ..........14

SUBARTICLE 2. STANDARDS FOR GASOLINE SOLD BEGINNING MARCH 1, 1996 ...................................18

§ 2260. Definitions.

................................................... ................................................... ..........................................18

§ 2261. Applicability of Standards; Additional Stan dards.

................................................... ............................26

(a) Applicability of the CaRFG Phase 2 Standards.

................................................... ......................................26

(b) Applicability of the CaRFG Phase 3 Standards.

................................................... ......................................27

§ 2262.3. Compliance With the CaRFG Phase 2 and CaR FG Phase 3 Standards for Sulfur, Benzene,

Aromatic Hydrocarbons, Olefins, T50 and T90.

................................................... .............................................56

(a) Compliance with cap limits.

................................................... ................................................... ...................56

(b) Compliance by producers and importers with the flat limits.

................................................... ..................56

(c) Optional compliance by producers and importers with the averaging limits. ............................................56

(d) Optional compliance by producers or importers that produce gasoline with the PM emissions offsetting

compliance option.

................................................... ................................................... ......................................57

§ 2262.4. Compliance With the CaRFG Phase 2 and CaR FG Phase 3 Standards for Reid Vapor Pressure.

................................................... ................................................... ................................................... .......................58

(a) Compliance with the cap limits for Reid vapor press ure.

................................................... ........................58

(b) Compliance by producers and importers with the flat limit for Reid vapor pressure. ...............................58§ 2253.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 v (c) Applicability.

................................................... ................................................... ..........................................60

§ 2262.5. Compliance With the Standards for Oxygen Content.

................................................... ...................61

(a) Compliance with the minimum oxygen content cap limi t standard in specified areas in the wintertime. 61

(b) Compliance with the maximum oxygen content cap limi t standard.

................................................... ......61

(c) Compliance by producers and importers with the flat limits for oxygen content. .....................................61

(d) Restrictions on adding oxygenates to California gas oline after it has been supplied from the productio n

or import facility.

................................................... ................................................... .........................................61

(e) Application of prohibitions.

................................................... ................................................... ...................62

§ 2262.6. Prohibition of MTBE and Oxygenates Other Than Ethanol in California Gasoline Starting

December 31, 2003.

................................................... ................................................... .........................................63

(a) Basic MTBE prohibitions.

................................................... ................................................... .....................63

(b) Phase-in of MTBE prohibitions.

................................................... ................................................... ...........63

(c) Use of oxygenates other than ethanol or MTBE in Cal ifornia gasoline on or after December 31, 2003. 64

§ 2262.9. Requirements Regarding Denatured Ethanol Intended For Use as a Blend Component in

California Gasoline.

................................................... ................................................... ........................................66

(a) Standards.

................................................... ................................................... ..............................................66

(b) Test Methods.

................................................... ................................................... .........................................69

(c) Documentation required for the transfer of denature d ethanol intended for use as a blend component in

California gasoline.

................................................... ................................................... .....................................69

§ 2263. Sampling Procedures and Test Methods.

................................................... ............................................70

§ 2263.7. Multiple Notification Requirements.

................................................... ................................................73

(a) Assignment of a designated alternative limit.

................................................... ..........................................73

(b) Additional prohibitions regarding gasoline to which a designated alternative limit has been assigned. .74

(c) Offsetting exceedances of an applicable averaging l imit.

................................................... .......................75

(d) Designated alternative limits for PM alternative ga soline formulations. ..................................................7 6

§ 2264.2. Election of Applicable Limit for Gasoline Supplied From a Production or Import Facility. .........76

(a) Election of the averaging compliance option.

................................................... ..........................................76

(b) Election of flat limit compliance option.

................................................... ..................................................7 7

(c) Inapplicability to elections for PM alternative gas oline formulations.

................................................... ...77

(d) Election of the PM emissions offsetting compliance option.

................................................... ..................78

§ 2265. Gasoline Subject to PM Alternative Specific ations Based on the California Predictive Model. .......79

(a) Election to sell or supply a final blend as a PM al ternative gasoline formulation. ...................................79

(b) Prohibited activities regarding PM alternative gaso line formulations.

................................................... ..80

(c) Restrictions associated with elections to sell or s upply final blends as PM alternative gasoline

formulations.

................................................... ................................................... ...............................................81

§ 2265.1. Offsetting Emissions Associated with High er Sulfur Levels.

................................................... .........82§ 2253.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 vi (a) Assignment of designated emissions offsetting limit s and percent change in emissions values for batche s

of gasoline for which the emissions associated with higher sulfur levels are being offset. ............................82

(b) Additional prohibitions regarding gasoline with des ignated emissions offsetting limits and final blend

credits or deficits.

................................................... ................................................... ........................................86

(c) Offsetting a final blend deficit.

................................................... ................................................... ..............86

(d) Automatic termination of the producer's or importer 's use of the PM emissions offsetting compliance

option.

................................................... ................................................... ................................................... .......87

§ 2265.5. Alternative Emission Reduction Plan (AERP ).

................................................... ...............................87

(a) Applicability.

................................................... ................................................... ..........................................87

(b) Requirements.

................................................... ................................................... ........................................88

(c) Application Process.

................................................... ................................................... ...............................91

(d) Revocation or Modification of an Approved AERP or t hird party AERP. ................................................92

(e) Additional prohibitions.

................................................... ................................................... .........................93

(f) A cause of action against the producer, importe r, or third party under this section shall be deeme d to accrue

on the date(s) when the records establishing a viol ation of the AERP or third party AERP are received by the

Executive Officer. .................................

................................................... ................................................... .......94

(g) Transferability.

................................................... ................................................... ......................................94

(h) Notification of final blends associated with an AER P or third party AERP .............................................95

(i) Notification of permeation offsets

................................................... ................................................... ..........96

§ 2266. Certified Gasoline Formulations Resulting i n Equivalent Emission Reductions Based on Motor

Vehicle Emissions Testing.

................................................... ................................................... .............................96

(a) Application of the California gasoline standards to CARBOB.

................................................... ..............98

(b) Notification to ARB regarding the supply of CARBOB from the facility at which it was produced or

imported.

................................................... ................................................... ................................................... .105

(c) [Reserved].....................................

................................................... ................................................... ........107

(d) Documentation required when CARBOB is transferred.

................................................... ......................107

(e) Restrictions on transferring CARBOB.

................................................... ..................................................1 08

(f) Restrictions on blending CARBOB with other products

. ................................................... .......................108

(g) Requirements for oxygenate blenders.

................................................... ................................................... 112

(h) Downstream blending of California gasoline with non oxygenate blendstocks. ......................................113

(i) Restrictions during the RVP season on blending gaso line containing ethanol with California gasoline

not containing ethanol.

................................................... ................................................... .............................114

§ 2267. Exemptions for Gasoline Used in Test Progra ms.

................................................... ............................114

§ 2268. Liability of Persons Who Commit Violations Involving Gasoline That Has Not Yet Been Sold or

Supplied to a Motor Vehicle.

................................................... ................................................... ........................114

§ 2269. Submittal of Compliance Plans.

................................................... ................................................... ......115§ 2253.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 vii § 2270. Testing and Recordkeeping.

................................................... ................................................... ............115

§ 2271. Variances.

................................................... ................................................... .........................................118

(a) Applications for variances.

................................................... ................................................... ..................118

(b)(1) Notices and public hearings for variances.

................................................... .......................................118

(c) Public participation in the variance process.

................................................... .........................................119

(d) Necessary findings for granting variances.

................................................... ...........................................119

(e) Factors to be considered in making the necessary fi ndings for granting variances. ..............................119

(f) Conditions and fees in variance orders.

................................................... .................................................12 1

(g) Duration of variances.

................................................... ................................................... .........................123

(h) Emergency variances.

................................................... ................................................... ..........................123

(i) Situations in which variances shall cease to be eff ective.

................................................... ......................124

(j) Modification and revocation of variances.

................................................... .............................................124

§ 2272. CaRFG Phase 3 Standards for Qualifying Smal l Refiners.

................................................... .............124

(a) CaRFG Phase 3 standards for qualifying small refine rs.

................................................... .....................124

(b) Certification of small refiners.

................................................... ................................................... ............124

(c) Criteria for qualifying gasoline.

................................................... ................................................... ..........125

(d) Compliance with applicable federal RFG requirements

. ................................................... ......................125

(e) Additional reporting requirements for small refiner s.

................................................... ...........................126

§ 2273. Labeling of Equipment Dispensing Gasoline C ontaining MTBE.

................................................... ..127

(a) MTBE labeling requirement.

................................................... ................................................... ...............127

(b) Residual levels of MTBE.

................................................... ................................................... ....................127

(c) Responsibility for compliance.

................................................... ................................................... .............129

(d) Deliveries of gasoline to retail outlets.

................................................... ................................................... 130

§ 2273.5. Documentation Provided with Delivery of G asoline to Retail Outlets. ..........................................130§ 2253.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 1 SUBARTICLE 1. GASOLINE STANDARDS THAT BECAME APPLIC ABLE BEFORE 1996

§ 2253.4. Lead in Gasoline.

(a) Regulatory Standard.

(1) [Reserved]

(2) [Reserved]

(3) Starting January 1, 1994, no person shall sell, offer for sale, supply, or offer for supply any California gasoline:

(A) which is not represented as unleaded, or

(B) which has been produced with the use of any lea d additive, or

(C) which contains more than 0.050 gram of lead per gallon or more than 0.005 gram of phosphorus per gallon, except as provided in subsection (d)

.

(4) Starting January 1, 1992, no person shall trans fer a consumer gasoline additive containing lead into the fuel tank of a motor vehicle, other t han an exempt off-road motor vehicle.

(5) Starting January 1, 1992, no person shall sell or offer for sale a consumer gasoline additive containing lead unless the additive contai ner bears a conspicuous legend that use of the additive in passenger cars and other on-road vehicles is unlawful and can result in substantial penalties, and unless the marketing of the additive is directed exclusively towards use in exempt off-road motor vehicles and n onvehicular sources.

(b) Definitions.

For the purposes of this section:

(1) "California gasoline" means gasoline sold or in tended for sale as a motor vehicle fuel in

California.§ 2253.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 2 (2) "Consumer gasoline additive" means any gasoline additive which is designed or marketed to be dispensed into the gasoline tank used to fuel a gasoline engine.

(3) "Exempt off-road vehicle" means any special con struction equipment as defined in sections 565 and 570 of the Vehicle Code, and any i mplement of husbandry as defined in sections 36000 et seq. of the Vehicle Code.

(4) "Gasoline" means any fuel which is commonly or commercially known or sold as gasoline, or which is a mixture of any fuel commonl y known or sold as gasoline and

alcohol.

(5) "Lead additive" means any substance containing lead or lead compounds.

(6) "Motor vehicle" has the same meaning as defined in section 415 of the Vehicle Code.

(7) "Retail outlet" means any establishment at whic h gasoline is sold or offered for sale to the general public for use in motor vehicles other than exempt off-road vehicles.

(8) "Supply" means to provide or transfer a product to a physically separate facility, vehicle, or transportation system.

(c) Test Methods.

The lead content of gasoline shall be determined in accordance with American Society of Testing and Materials (ASTM) Method D3237-79, which is incorporated herein by reference. The phosphorous content of gasoline shall be determ ined in accordance with ASTM Method D3231-73, which is incorporated herein by reference

.

(d) Exemptions.

Subsections (a)(1) and (3) shall not apply to California gasoline sold, offer ed from sale, supplied, or offered for supply by a person who dem onstrates that:

(i) The gasoline is conspicuously identified as a f uel which may not lawfully be dispensed to motor vehicles other than exempt off-road vehicles; and

(ii) He or she has taken reasonable precautions to assure that the gasoline will not be sold or offered for sale at a retail outlet; and§ 2253.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 3 (iii) Either the gasoline is being directly dispens ed into the fuel tank of an exempt off-road vehicle, or the gasoline is the subject of a declar ation under penalty of perjury by the purchaser, offeree or recipient stating that he or she will not sell, offer for sale, supply, or offer for supply the gasoline for use in motor vehi cles other than exempt off-road

vehicles.

§ 2254. Manganese Additive Content.

(a) Except as provided in subparagraph (b), no pers on shall add manganese or any manganese compound, including the compound methylcyclopentadi enyl manganese tricarbonyl (MMT), to gasoline represented as unleaded intended to be sold, offered for sale, or delivered for sale

at retail in the State of California.

(b) The prohibitions set forth in subparagraph (a) shall not apply to any person who has applied

for and received from the Executive Officer written approval to add manganese or any manganese compound, including MMT, to gasoline repr esented as unleaded for the purpose of conducting tests or research into the effect the reof on vehicle emissions, fuel economy, performance, or for other related research objectiv es.

§ 2257. Required Additives in Gasoline.

(a) Regulatory Standard.

(1) On or after January 1, 1992, no person shall se ll, offer for sale, supply, or offer for supply any California gasoline unless at the time of the t ransaction:

[i] the producer, importer, or distributor of the g asoline has been issued a currently effective certification for California gasoline pur suant to subsection (c) , originally dated no earlier than July 1, 1996. Existing certif ications dated between July 1, 1996 and July 16, 1999 that meet the standards described in subsection (c)(1)(A)(i) and (c)(1)(A)(ii) [including those which used test method ASTM D 550 0-94] are exempted from subsection (c)(1)(A)(iii) , and

[ii] the gasoline contains at least the minimum con centration of the additive or additives identified in the final application for certificati on.§ 2257

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 4 (2) Subsection (a)(1) shall not apply to transactions where the person s elling, supplying, or offering the gasoline demonstrates that:

[i] the gasoline has not yet been sold, offered, or supplied from the final distribution facility, and either

[ii] the person has taken reasonably prudent precau tions to assure that he or she will bring the gasoline into satisfaction with the requirement s of subsection (a)(1) before it is sold, supplied or offered from the final distributi on facility, or

[iii] at or before the time of the transaction the person has obtained a written statement from the purchaser, recipient, or offeree of the ga soline stating that he or she is a distributor who has been issued a currently effecti ve certification pursuant to subsection (c) , and will cause the gasoline to satisfy the requir ements of subsection (a)(1) before it is sold, supplied or offered from the fi nal distribution facility.

(3) Subsection (a)(1)[ii] shall not apply to the sale, supply, or offer of g asoline from a final distribution facility where the person selling, sup plying, or offering the gasoline demonstrates that the gasoline will be corrected to comply with section (a)(1)[ii] prior to the sale of gasoline from the retail outlet to be d ispensed into motor vehicles. If such corrective action is taken, the producer, importer, or distributor of the gasoline must notify the Compliance Division of the Air Resources Board by telephone or in writing within 2 business days of the correction and must m aintain records to document each

occurrence in accordance with subsection (d)

.

(4) For the purposes of subsection (a)(1) , each sale of gasoline at retail for use in a moto r vehicle, and each supply of gasoline into a motor v ehicle fuel tank, shall also be deemed a sale or supply by any person who previously sold or supplied such gasoline in violation

of subsection (a)(1)

.

(b) Definitions.

For the purposes of this section:

(1) "Additive" means any substance or mixture of su bstances that is intentionally added to gasoline for the purpose of reducing or preventing fuel injection system or intake valve deposits, and that is not intentionally removed pri or to the gasoline's sale or use.

(2) "Bulk purchaser-consumer" means a person who pu rchases or otherwise obtains gasoline in bulk and then dispenses it into the fuel tanks o f motor vehicles owned or operated by the person.§ 2257

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 5 (3) "California gasoline" means gasoline sold or in tended for sale as a motor vehicle fuel in

California.

(4) "Chemical composition" means the name, percenta ge by weight, and chemical identification of each compound in an additive.

(5) "Distributor" means any person who transports o r stores or causes the transportation or storage of gasoline, produced or imported by anothe r person, at any point between any producer's or importer's facility and any retail ou tlet or wholesale purchaser-consumer's facility.

(6) "Final distribution facility" means the station ary gasoline transfer point from which gasoline is transferred into the cargo tank truck, pipeline, or other delivery vessel from which the gasoline will be delivered to the facilit y at which the gasoline will be dispensed

into motor vehicles.

(7) "Gasoline" means any fuel which is sold or inte nded for sale as a California motor vehicle fuel and is either: (a) commonly or commercially kn own or sold as gasoline, or (b) any fuel blend of gasoline as defined in (a) and alcoho l in which the portion of gasoline is more than 50 percent of the total blend.

(8) "Gasoline production facility" means a facility in California at which gasoline is produced; it does not include a facility whose sole operation is to transfer gasoline or to blend additives into gasoline.

(9) "Importer" means any person who first accepts d elivery of gasoline in California.

(10) "Import facility" means the facility at which imported gasoline is first received in California, including, in the case of gasoline impo rted by cargo tank and delivered directly to a facility for dispensing gasoline into motor vehicles, the cargo tank in which the gasoline is imported.

(11) "Motor vehicle" has the same meaning as define d in section 415 of the Vehicle Code.

(12) "Produce" means to convert liquid compounds wh ich are not gasoline into gasoline.

(13) "Producer" means any person who produces Calif ornia gasoline in California.

(14) "Retail outlet" means any establishment at whi ch gasoline is sold or offered for sale for

use in motor vehicles.§ 2257

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 6 (15) "Supply" means to provide or transfer a produc t to a physically separate facility, vehicle, or transportation system.

(c) Certification Requirements.

(1)(A) No gasoline formulation shall be certified u nder this subsection (c) unless the applicant for certification demonstrates each of th e following to the executive

officer's satisfaction:

(i) The gasoline formulation meets a maximum of 50 milligrams averaged over all

intake valves when tested in accordance with ASTM D 5500-98, which is incorporated herein by reference. As an alternative , intake valve deposits may be tested in accordance with subsection (c)(1)(A)(iii)

.

(ii) The gasoline formulation does not result in a flow loss of more than five percent for any fuel injector when tested in accordance wit h ASTM D 5598-95a, which is incorporated herein by reference.

(iii) The gasoline formulation meeting the requirem ents of (c)(1)(A)(i), does not result in more than 1300 milligrams total deposit w eight, averaged over all four combustion chambers, or, does not result in more th an 140 percent total deposit weight from all four combustion chambers, relative to the gasoline formulation containing no additive, when tested in accordance w ith the Stationary Source Division's Test Method for Evaluating Intake Valve and Combustion Chamber Deposits in Vehicle Engines, dated March 12, 1999, which is incorporated herein by reference.

(B) The executive officer may approve alternative t est procedures for demonstrating satisfaction with any of the performance criteria s et forth in subsection (c)(1)(A) if an applicant or potential applicant demonstrates to th e executive officer's satisfaction that a gasoline formulation which meets the perform ance criteria of the alternative test procedure would also meet the performance crit eria specified in subsection (c)(1)(A)

.

(2) Any producer, importer, or distributor may appl y to the executive officer for certification of a gasoline formulation in accordance with this s ubsection (c). The application shall be in writing and shall include, at a minimum, the fol lowing:

(A) The name and chemical composition of the additi ve or additives in the gasoline formulation, except that if the chemical compositio n is not known to either the applicant or to the manufacturer of the additive (i f other than the applicant), the applicant may provide a full disclosure of the chem ical process of manufacture of the§ 2257

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 7

additive in lieu of its chemical composition.

(B) The minimum concentration of each additive in t he gasoline formulation in terms of gallons of additive per thousand gallons of gasolin e.

(C) The results of tests conducted on the gasoline formulation pursuant to the test procedures set forth in subsection (c)(1) , all data generated by the tests, the identity of the entity which conducted each test, and a descrip tion of the quality assurance and quality control procedures used during the testing.

(D) Data demonstrating that the fuel used for certi fication testing ( "certification test fuel") is representative of the gasoline formulatio n for which certification is requested. Properties of the certification test fue l must be at least 80 percent of the maximum properties of the gasoline formulation to b e certified for the following: aromatic hydrocarbon content, olefin content, sulfu r content, and oxygen content. The T90 distillation temperature of the certification t est fuel cannot be less than 40° F below the gasoline formulation for which certificat ion is requested. All other certification test fuel properties must be represen tative of typical commercial gasoline.

(E) Data demonstrating how the certification test f uel was produced including a list of blend stocks, such as reformate, oxygenates, cracke d stocks, alkylate, isomerate, straight run stocks and any other blend stocks, alo ng with the percentage of the total which each blend stock comprises. Data may also be requested which demonstrates

that the certification test fuel blend stocks are r epresentative of typical California refinery blend stocks used for the production of Ca lifornia gasoline.

(F) The theoretical mechanism of action (if known) of the additive in meeting any of the performance criteria set forth in subsection (c)(1)(A)

.

(G) Copies of all material pertaining to the additi ve or additives in the gasoline formulation, submitted by the applicant to the U.S. Environmental Protection Agency pursuant to 40 CFR sections 79.6, 79.10 and 79.11. If the applicant has submitted no such material, copies of all material pertaining to the additive or additives in the gasoline formulation, submitted by the additive man ufacturer to the U. S. Environmental Protection Agency pursuant to 40 CFR sections 79.6, 79.20 and 79.21.

(H) A test method reasonably adequate for determini ng the presence and concentration of each additive in the gasoline, including test metho d reproducibility. The test method may involve identification of the presence of a sur rogate marker substance if the applicant demonstrates that such test method will a dequately demonstrate the§ 2257

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 8

presence and concentration of the additive.

(3) Within 30 days of receipt of an application, th e executive officer shall advise the applicant in writing either that it is complete or that specified additional information is required to make it complete. Within 30 days of sub mittal of additional information, the executive officer shall advise the applicant in wri ting either that the application is complete, or that specified additional information or testing is still required before it can be deemed complete.

(4) If the executive officer finds that an applicat ion meets the requirements of this section and determines that the applicant has satisfactoril y made the demonstrations identified in subsection (c)(1) , then he or she shall issue an Executive Order cer tifying the gasoline

fuel formulation. The executive officer shall act o n a complete application within 30 days after the application is deemed complete.

(5) If the executive officer determines that the ga soline sold by a producer, importer or

distributor contains the minimum concentration of a dditives identified in an applicable certification, but substantially fails to meet the performance criteria set forth in subsection (c)(1) , the executive officer shall revoke or modify the prior certification as is necessary to assure that gasoline sold by the produ cer, importer or distributor meets the performance criteria set forth in subsection (c)(1) . The executive officer shall not revoke or modify a prior certification order without first affording the applicant for the certification an opportunity for a hearing in accor dance with title 17, California Code of Regulations, part III, chapter 1, subchapter 1, art icle 4 (commencing with section 60040). If the executive officer determines that a producer , importer or distributor would be unable to comply with this regulation as a direct r esult of a certification revocation or modification pursuant to this subsection, the execu tive officer may delay the effective date of such revocation or modification for such pe riod of time as is necessary to permit the person to come into compliance in the exercise of all reasonable diligence.

(d) Recordkeeping.

(1) Each producer, importer, and distributor who ha s been issued a certification pursuant to subsection (c) must maintain records identifying each facility at which he or she adds an additive to California gasoline in order to comply with subsection (a)(1) . For each such facility, the producer, importer or distributor mus t compile records showing on a monthly basis for each grade of gasoline:

[i] the volume of California gasoline supplied from the facility by the producer, importer or distributor,§ 2257

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 9 [ii] the volume of California gasoline to which the producer, importer or distributor added the additive to comply with subsection (a)(1) , and

[iii] the name and volume of each additive (or addi tive package) added to the California gasoline fuel. Records covering a month must be com piled no later than 30 days after the end of the month, and must be retained for at l east two years after the end of the

month.

(2) Any person required by subsection (d)(1) to compile and retain records must provide to the executive officer any such records within 20 da ys of a written request received from the executive officer or his/her designee before ex piration of the period during which the records are required to be retained. Whenever such a person fails to provide records regarding a volume of California gasoline in accord ance with this subsection (d)(2), the volume of California gasoline will be presumed to h ave been sold by the person in

violation of subsection (a)(1)

.

§ 2258. Oxygen Content of Gasoline in the Wintertim e.

(a) Regulatory Standard.

(1) Starting November 1, 1992, within each of the a ir basins during the regulatory control period set forth in section (a)(2) , no person shall sell, offer for sale, supply, off er for supply, or transport California gasoline unless the gasoline has an oxygen content of not less than 1.8 percent by weight and not more than 2 .2 percent by weight.

(2) Regulatory Control Periods.

(A) October 1 through February 29 South Coast Air Basin and Ventura County

(B) October 1 through January 31 Sacramento Valley Air Basin San Joaquin Valley Air Basin San Francisco Bay Area Air Basin

Lake Tahoe Air Basin Great Basin Valley Air Basin

Mountain Counties Air Basin

North Coast Air Basin Lake County Air Basin

Northeast Plateau Air Basin§ 2258

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 10

North Central Coast Air Basin San Luis Obispo County

(C) November 1 through February 29 San Diego Air Basin

Southeast Desert Air Basin Santa Barbara County

(3) Section (a)(1) shall not apply to transactions involving gasoline not meeting the minimum oxygen content standard where the person selling, s upplying, or offering the gasoline demonstrates by affirmative defense that: [i] the g asoline has not yet been supplied from the final distribution facility, and [ii] the docum ents accompanying such gasoline clearly state that it does not comply with the minimum oxyg en content standard in section (a)(1)

, and either [iii] the person has taken reasonably pr udent precautions to assure that he or she will bring the gasoline within the standards in section (a)(1) before it is supplied from the final distribution facility, or [iv] at or befo re the time of the transaction the person has obtained a written statement from the purchaser, re cipient, or offeree of the gasoline stating that he or she will take reasonably prudent precautions to assure that the gasoline is brought within the standards of section (a)(1) before it is supplied from the final distribution facility.

(4) Section (a)(1) shall not apply to a transaction occurring in an a ir basin during the regulatory control period where the person selling, supplying, or offering the gasoline demonstrates as an affirmative defense that, prior to the transaction, he or she has taken reasonably prudent precautions to assure that the g asoline will be delivered to a retail service station or bulk purchaser-consumer's fuelin g facility when the station or facility is not subject to a basic regulatory control period.

(5) Section (a)(1) shall not apply to a transaction occurring in an a ir basin during the regulatory control period where the transaction inv olves the transfer of gasoline from a stationary storage tank to a motor vehicle fuel tan k and the person selling, supplying, or offering the gasoline demonstrates as an affirmativ e defense that the last delivery of gasoline to the stationary storage tank occurred mo re than fourteen days before the start of the regulatory control period.

(6)(A) The regulatory standards in section (a)(1) shall not apply to a transaction occurring in the air basin during a transition period, where the transaction involves the transfer of gasoline from a stationary storage tank to a motor vehicle fuel tank and the person selling, supplying, or offering the gasoline demons trates as an affirmative defense that he or she has made, prior to the transaction, specific arrangements with a gasoline distributor for the delivery of an oxygenated or no noxygenated gasoline blend containing oxygenates in quantities that will resul t in gasoline in the stationary storage tanks at the facility having an oxygen cont ent of from 1.8 percent to 2.2§ 2258

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 11

percent by weight by the end of the transition peri od.

(B) The regulatory standards in section (a)(1) shall not apply to a transaction occurring in an air basin during a transition period, where the transaction involves the sale, offer for sale, supply, offer for supply, or transport of gasoline to a retail gasoline outlet or bulk purchaser-consumer's facility and the person s elling, supplying, or offering the gasoline demonstrates as an affirmative defense tha t the gasoline is being distributed pursuant to a prior arrangement to deliver oxygenat ed or nonoxygenated gasoline to bring the retail gasoline outlet or bulk purchaser- consumer's facility into compliance with the regulatory standards in section (a)(1) by the end of the transition period.

(7) Section (a)(1) shall not apply to a transaction involving the sal e, offer for sale, supply, or offer for supply of gasoline to a stationary storag e tank at a retail gasoline outlet, or the transfer of gasoline from a stationary storage tank at a retail gasoline outlet to a motor vehicle fuel tank, if the person selling, offering, or supplying the gasoline demonstrates by affirmative defense all of the following:

(A) The retail gasoline outlet is within Modoc, Las sen, Sierra, Nevada, Placer, El Dorado, Alpine, Mono, Inyo, or San Bernardino count ies, and is not within the Lake Tahoe or Sacramento Valley Air Basins.

(B) The final distribution facility from which the gasoline is being or has been delivered

is outside California.

(C) The gasoline is being or has been delivered to the stationary storage tank by a tank truck having a total capacity not exceeding 4500 ga llons.

(D) The stationary storage tank at the retail gasol ine outlet has a total capacity not exceeding 2500 gallons, and

(E) The retail gasoline outlet has a monthly throug hput not exceeding 10,000 gallons.

(8) For the purposes of section (a)(1) , each sale of California gasoline at retail, and e ach dispensing of California gasoline into a motor vehi cle fuel tank, shall also be deemed a sale or supply by any person who previously sold or supplied such gasoline in violation

of section (a)(1)

.

(b) Definitions.

For the purposes of this section:§ 2258

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 12 (1) "Bulk purchaser-consumer" means a person who pu rchases or otherwise obtains gasoline in bulk and then dispenses it into the fuel tanks o f motor vehicles owned or operated by the person.

(2) "California gasoline" means gasoline sold or in tended for sale as a motor vehicle fuel in

California.

(3) "Distributor" means any person engaged in the b usiness of transporting and delivering gasoline to a retail gasoline outlet or bulk purcha ser-consumer's facility.

(4) "Final distribution facility" means the station ary gasoline transfer point from which gasoline is transferred into the cargo tank truck, pipeline, or other delivery vessel from which the gasoline will be delivered to the facilit y at which the gasoline will be dispensed into motor vehicles; except that a cargo tank truck is the final distribution facility where the cargo tank truck is used to transport gasoline and carries written documentation demonstrating that oxygenates, in quantities that w ill bring the gasoline into compliance

with section 2258(a)(1) , will be or have been blended directly into the ca rgo tank truck prior to delivery of the gasoline from the cargo ta nk truck to the facility at which the gasoline will be dispensed into motor vehicles.

(5) "Gasoline means any fuel which is commonly or c ommercially known or sold as gasoline.

(6) "Motor vehicle" has the same meaning as defined in section 415 of the Vehicle Code.

(7) "Northern California" means the area of Califor nia not contained within the South Central Coast, South Coast, Southeast Desert and San Diego Air Basins.

(8) "Southern California" means the area of Califor nia contained within the South Central Coast, South Coast, Southeast Desert and San Diego Air Basins.

(9) "Supply" means to provide or transfer a product to a physically separate facility, vehicle, or transportation system.

(10) "Transition period" means:

a. the first 15 days of any October regulatory cont rol period.

b. November 1 to November 15, 1992, and§ 2258

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 13 c. November 1 through November 15 of 1993, 1994, or 1995 in the San Diego Air Basin, the Southeast Desert Air Basin, and Santa Barbara C ounty.

(c) Sampling Procedures and Test Methods.

Compliance with the oxygen content standards in thi s regulation shall be determined by use of an applicable sampling methodology set forth in Title 13, California Code of Regulations, section 2296, and use of American Society for Testi ng and Materials Test Method ASTM D 4815-94, which is incorporated herein by reference. Another test method may be used following a determination by the executive officer that the other method produces results equivalent to the results obtained with ASTM D 4815 -94.

(d) Inability to Produce Conforming Gasoline in Extraor dinary Circumstances.

In appropriate extreme and unusual circumstances (e .g., natural disaster or Act of God) which are clearly outside the control of the refine r, importer, or oxygenate blender and which could not have been avoided by the exercise of prud ence, diligence, and due care, the executive officer may permit a refiner, importer, o r oxygenate blender, for a brief period, to distribute gasoline which does not meet the require ments in section (a)(1) if:

(1) It is in the public interest to do so (e.g., di stribution of the nonconforming gasoline is necessary to meet projected shortfalls which cannot otherwise be compensated for);

(2) The refiner, importer, or oxygenate blender exe rcised prudent planning and was not able

to avoid the violation and has taken all reasonable steps to minimize the extent of the nonconformity;

(3) The refiner, importer, or oxygenate blender can show how the requirements for oxygenated gasoline will be expeditiously achieved;

(4) The refiner, importer, or oxygenate blender agr ees to make up air quality detriment associated with the nonconforming gasoline, where p ractical; and

(5) The refiner, importer, or oxygenate blender pay s to the Air Pollution Control Fund an amount equal to the economic benefit of the nonconf ormity minus the amount expended,

pursuant to section (d)(4) , in making up the air quality detriment.

(e) Effect of Supply Waiver Under Federal Clean Air Act

.

(1) If the Administrator of the U.S. Environmental Protection Agency issues, pursuant to 42 U.S.C. section 7545(m)(3)(C), a waiver of the requi rements of 42 U.S.C. section§ 2258

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 14 7545(m)(2) applicable to a geographic area or areas of California, the requirements of section (a)(1) shall not apply in any air basin containing an are a covered by the waiver, during the effective period of the waiver.

(2) If the Administrator of the U.S. Environmental Protection Agency issues, pursuant to 42 U.S.C. section 7545(m)(3)(C), a waiver of the requi rements of 42 U.S.C. section 7545(m)(2) applicable to a geographic area or areas within Southern California, section (a)(1) shall not apply, during the effective period of th e waiver, in any air basin in Southern California not containing any area require d under 42 U.S.C. section 7545(m) to have a wintertime oxygenates program.

(3) If the Administrator of the U.S. Environmental Protection Agency issues, pursuant to 42 U.S.C. section 7545(m)(3)(C), a waiver of the requi rements of 42 U.S.C. section 7545(m)(2) applicable to a geographic area or areas within Northern California, section (a)(1) shall not apply, during the effective period of th e waiver, in any air basin in Northern California not containing any area require d under 42 U.S.C. section 7545(m) to have a wintertime oxygenates program.

(f) Sunset. This section shall not apply to gasoline sold or s upplied after February 29, 1996.

§ 2259. Exemptions for Motor Vehicle Fuels Used in Test Programs.

(a)(1) Any person may request an exemption for fuel used in a test program by submitting an application to the executive officer that includes all the information listed in paragraphs (c)

, (d)

, (e) , and (f) of this section.

(2) For the purpose of this section, "fuel requirem ent" means any requirement for a motor vehicle fuel established in Chapter 5 (Standards fo r Motor Vehicle Fuels) of Division 3, Title 13, California Code of Regulations.

(3) For the purpose of this section, "exemption" me ans an exemption from one or more fuel requirements that is granted by the executive offic er for the purpose of research, motor vehicle or engine emissions certification, fuel cer tification or registration, or fuel additive certification or registration.

(4) For the purpose of this section, "test track" m eans a roadway that is closed to the general public, is used to test motor vehicles or motor veh icle fuels, and is not used to transport

persons or property.§ 2259

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 15 (b)(1) In order for an exemption to be granted, the applicant must demonstrate the following:

(A) The proposed test program has a purpose that co nstitutes an appropriate basis for exemption;

(B) The proposed test program necessitates the gran ting of an exemption;

(C) The proposed test program exhibits reasonablene ss in scope; and

(D) The proposed test program exhibits a degree of control consistent with the purpose of the program and the state board's monitoring requir ements.

(2) Paragraphs (c)

, (d)

, (e) , and (f) of this section describe what constitutes a suffic ient

demonstration for each of the four elements in paragraphs (b)(1)(A) through (D) of this

section.

(3) Within 20 days of receipt of an application for an exemption, the executive officer shall advise the applicant in writing either that the app lication is complete or that specified additional information is required to make it compl ete. Within 15 days of submittal of additional information, the executive officer shall advise the applicant in writing either that the information submitted makes the applicatio n complete or that specified additional information is still required to make it complete. Within 20 days after the application is deemed complete, the executive officer shall grant or deny the application. Any denial shall be accompanied by a written statement of the reasons for denial.

(c) An appropriate purpose is limited to research, motor vehicle or engine emissions certification, fuel certification or registration, or fuel additiv e certification or registration. The exemption application must include a concise statement of the purpose(s) of the proposed test program.

(d) With respect to the necessity for an exemption, the applicant must identify each specific fuel requirement that would be violated by the test prog ram, and demonstrate an inability to achieve the stated purpose in a practical manner wi thout violating the identified fuel requirement(s). If any site of the proposed test pr ogram is located in an area that is classified as a nonattainment area for purposes of a state or federal ambient air quality standard, and the fuel requirement that would be violated is designed to reduce emissions of the pollutant, or a precursor of the pollutant, for which the area is c lassified as a nonattainment area, the applicant must also demonstrate a practical inabili ty to perform the test program in an area that is in attainment with respect to that pollutan t.§ 2259

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 16 (e) With respect to reasonableness, a test program must exhibit a duration of reasonable length, affect a reasonable number of vehicles or engines, and utilize a reasonable amount of noncomplying fuel. In this regard, the application for exemption must include:

(1) An estimate of the program's duration;

(2) An estimate of the maximum number of vehicles o r engines involved in the program;

(3) The time or mileage duration of the test progra m;

(4) The range of the noncomplying properties of the fuel expected to be used in the program,

and

(5) The quantity of fuel which exceeds the applicab le standard that is expected to be used in the program.

(f) With respect to control, a program must be capa ble of affording the executive officer a monitoring capability. At a minimum, the applicatio n for exemption must also include:

(1) The technical nature of the test program;

(2) The site(s) of the program (including the stree t address, city, county, and zip code);

(3) The manner in which information on vehicles and engines used in the program will be

recorded and made available to the executive office r;

(4) The manner in which results of the program will be recorded and made available to the executive officer;

(5) The manner in which information on the fuel use d in the test program (including noncomplying properties, name, address, telephone n umber, and contact person of supplier, quantity, date received from the supplier ) will be recorded and made available to the executive officer;

(6) The manner in which the distribution pumps will be labeled to insure proper use of the test fuel;

(7) The name, address, telephone number and title o f the person(s) in the organization requesting an exemption from whom further informati on on the request may be obtained;§ 2259

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 17 and

(8) The name, address, telephone number and title o f the person(s) in the organization requesting an exemption who will be responsible for recording and making the information specified in paragraphs (f)(3)

, (4) , and (5) of this section available to the

executive officer and the location in which such in formation will be maintained.

(g) An exemption shall be granted by the executive officer upon a demonstration that the requirements of paragraphs (b)

, (c)

, (d)

, (e) and (f) of this section have been met. The exemption will be granted in the form of memorandum of exemption signed by the applicant and the executive officer (or his delegate), which shall include such terms and conditions as the executive officer determines necessary to monit or the exemption and to carry out the purpose of this section. Any violation of such term or condition shall cause the exemption to

be void.

(h) No fuel requirement shall apply to fuel used fo r an engine or vehicle dynamometer test, or to fuel used in the testing of motor vehicles or motor vehicle fuels on a test track.§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 18 TITLE 13. MOTOR VEHICLES

DIVISION 3. AIR RESOURCES BOARD

CHAPTER 5. STANDARDS FOR MOTOR VEHICLE FUELS

ARTICLE 1. STANDARDS FOR GASOLINE

SUBARTICLE 2. STANDARDS FOR GASOLINE SOLD BEGINNING MARCH 1, 1996

§ 2260. Definitions.

(a) For the purposes of this subarticle, the follow ing definitions apply:

(0.5) "Air basin" has the same meaning as defined i n section 39012 of the Health and Safety

Code.

(0.7) "Alternative emission reduction plan" means w ith respect to a specific gasoline property, the compliance option set forth in section 2265.5

.

(1) "Alternative gasoline formulation" means a fina l blend of gasoline that is either a PM alternative gasoline formulation or a test-certifie d alternative gasoline formulation.

(2) "Averaging compliance option" means, with respe ct to a specific gasoline property, the compliance option set forth in section 2262.3(c)

.

(3) "ASTM" means the American Society of Testing an d Materials.

(4) "Bulk purchaser-consumer" means a person that p urchases or otherwise obtains gasoline in bulk and then dispenses it into the fuel tanks o r motor vehicles owned or operated by the person.

(5) "Bulk plant" means an intermediate gasoline dis tribution facility where delivery of gasoline to and from the facility is solely by truc k.

(6) "California gasoline" means:

(A) Gasoline sold, intended for sale, or made avail able for sale as a motor vehicle fuel in California; and§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 19 (B) Gasoline that is produced in California, and th at the producer knows or reasonably should know will be offered for sale or supply at a n out-of-state terminal or bulk plant at which it will be identified as gasoline produced in California and suitable for sale

as a motor vehicle fuel in California.

(6.5) "California reformulated gasoline blendstock for oxygenate blending, or 'CARBOB,"' means a petroleum-derived liquid which is intended to be, or is represented as, a product that will constitute Califoria gasoline upon the ad dition of a specified type and percentage (or range of percentages) of oxygenate to the produ ct after the product has been supplied from the production or import facility at which it was produced or imported.

(6.6) "CaRFG Phase 2" means California Phase 2 refo rmulated gasoline.

(6.7) "CaRFG Phase 3" means California Phase 3 refo rmulated gasoline.

(6.8) "CARBOB limits" means, for a final blend of C ARBOB, CARBOB specifications for maximum Reid vapor pressure, sulfur content, benzen e content, olefin content, aromatic hydrocarbon content, T50 and T90, and maximum and m inimum oxygen content, expressed to the number of significant figures iden tified for each property in the section

2262 standards table , and for any other property identified in a certif ication order issued by the Executive Officer pursuant to the "Californi a Procedures for Evaluating Alternative Specifications for Gasoline Using Vehic le Emissions Testing," incorporated by reference in section 2266(a) , if applicable.

(6.9) "Common carrier pipeline" means a pipeline op erating under Public Utilities Commission tariffs which offers refined petroleum p roduct transportation services to any qualified shipper.

(7) "Designated alternative limit" means an alterna tive gasoline specification limit, expressed in the nearest part per million by weight for sulfu r content, nearest hundredth percent by volume for benzene content, nearest tenth percent b y volume for aromatic hydrocarbon content, nearest tenth percent for olefin content, and nearest degree Fahrenheit for T90 and T50, which is assigned by a producer or importe r to a final blend of California gasoline pursuant to section 2264

.

(7.5) "Designated emissions offsetting limit" means an alternative gasoline specification limit, expressed in the nearest hundredth pound per square inch for RVP, nearest tenth percent by weight for oxygen, nearest part per mill ion by weight for sulfur content, nearest hundredth percent by volume for benzene con tent, nearest tenth percent by volume for aromatic hydrocarbon content, nearest te nth percent for olefin content, and§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 20 nearest degree Fahrenheit for T90 and T50, which is assigned by a producer or importer that produces gasoline to a final blend of Californ ia gasoline pursuant to section 2265.1

.

(8) "Ethanol" means ethyl alcohol which meets any a dditional requirements for ethanol or ethyl alcohol in Health and Safety Code section 438 30.

(8.5) "Emissions associated with permeation" means the incremental increase in emissions because of permeation which is calculated as the di fference between the emissions from the producer's or importer's final blend formulatio n and the flat limits without ethanol. The Phase 3 reformulated gasoline Predictive Model, as described in the "California Procedures for Evaluating Alternative Specification s for Phase 3 Reformulated Gasoline Using the California Predictive Model," as correcte d November 18, 2004 and last amended August 7, 2008, which is incorporated herei n by reference, shall be used to calculate emissions associated with permeation.

Emissions are calculated as follows:

Ozone Forming Potential (tons per day) = 18.4 (tons per day) * (PCE(OFP)/ 2.39) * 2.80 * percent share of California gasoline sales covere d by the AERP, and

NOx (tons per day) = 427.8 (tons per day) * PCE(NOx ) * percent share of California gasoline sales covered by the AERP, where

PCE(OFP) and PCE(NOx) = Percent change in emissions , as predicted by the CaRFG3 Predictive Model for Ozone Forming Potential (OFP) and Oxides of Nitrogen (NOx), respectively, as described in the "California Proce dures for Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Us ing the California Predictive Model," as corrected November 18, 2004 and last ame nded August 7, 2008, which is incorporated herein by reference.

(9) "Executive Officer" means the executive officer of the Air Resources Board, or his or her designee.

(10) "Final blend" means a distinct quantity of gas oline or CARBOB which is introduced

into commerce in California without further alterat ion which would tend to affect a regulated gasoline specification of the fuel.

(10.5) "Final blend credit" means the credit from a final blend of gasoline that may be used to offset a producer's or importer's final blend defic it. The amount of final blend credit shall

be calculated as follows:

Final Blend Credit = (PCE - PCEt) * V

c , where§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 21 PCE = Percent change in emissions values as reporte d by the producer or importer

pursuant to section 2265(a)(2)(C)

.

PCEt= Percent change in emissions values, as they p ertain to the PM emissions offsetting compliance option, for the PM alternative specifica tions that the producer or importer was intending to produce and which would have met t he criteria for approval in the applicable Predictive Model Procedures but for the elevated sulfur content.

V
c = volume, in barrels, of the final blend that has a final blend credit.

(10.7) "Final blend deficit" means the deficit from a final blend of gasoline that a producer or importer must offset. The amount of final blend def icit shall be calculated as follows:

Final Blend Deficit = (PCE - 0.04) * V d , where

PCE = Percent change in emissions values, as they p ertain to the PM emissions offsetting compliance option, which are greater than 0.04%. If the percent change in emissions values, as they pertain to the PM emissions offsett ing compliance option, are all less than 0.04%, there is no final blend deficit.

V d = volume, in barrels, of the final blend that has a final blend deficit.

(11) "Final distribution facility" means the statio nary gasoline transfer point from which gasoline or CARBOB is transferred into the cargo ta nk truck, pipeline, or other delivery vessel from which the gasoline will be delivered to the facility at which the gasoline will be dispensed into motor vehicles; except that a car go tank truck is the final distribution facility where the cargo tank truck is used to tran sport CARBOB and gasoline and carries written documentation demonstrating that the design ated type and amount or range of amounts of oxygenates designated by the producer or importer will be or have been blended directly into the cargo tank truck prior to delivery of the resulting gasoline from the cargo tank truck to the facility at which the g asoline will be dispensed into motor

vehicles.

(12) "Flat limit compliance option" means, with res pect to a specific gasoline property, the compliance option set forth in section 2262.3(b)

, section 2262.4(b)(1) , or section 2262.5(c)

.

(13) "Further process" means to perform any activit y on gasoline, including distillation, treating with hydrogen, or blending, for the purpos e of bringing the gasoline into compliance with the standards in this subarticle.§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 22 (14) "Gasoline" means any fuel that is commonly or commercially known, sold or represented as gasoline, including any volatile mix ture of predominantly liquid hydrocarbons that is sold or represented as suitabl e for use in an automotive sparkignition engine.

(15) "Imported California gasoline" means Californi a gasoline which is transported into

California and does not meet the definition in section 2260(a)(6)(B)

.

(16) "Import facility" means the storage tank to wh ich imported California gasoline or CARBOB is first delivered in California, including, in the case of gasoline or CARBOB imported by cargo tank and delivered directly to a facility for dispensing gasoline into motor vehicles, the cargo tank in which the gasolin e or CARBOB is imported.

(17) "Importer" means any person who first accepts delivery in California of imported California gasoline.

(18) "Motor vehicle" has the same meaning as define d in section 415 of the Vehicle Code.

(19) "Oxygenate" is any oxygen-containing, ashless, organic compound, such as an alcohol or ether, which, when added to gasoline increases t he amount of oxygen in gasoline.

(19.3) "Oxygenate blending facility" means any faci lity (including a truck) at which oxygenate is added to gasoline or blendstock, and a t which the quality or quantity of gasoline is not altered in any other manner except for the addition of deposit control

additives or other similar additives.

(19.6) "Oxygenate blender" means any person who own s, leases, operates, controls, or supervises an oxygenate blending facility, or who o wns or controls the blendstock or gasoline used or the gasoline produced at an oxygen ate blending facility.

(19.7) "Percent change in emissions values, as they pertain to the PM emissions offsetting compliance option" means values calculated, each fo r oxides of nitrogen, total ozone forming potential, and potency-weighted toxics, fro m the Phase 3 Predictive Model using the designated emissions offsetting limits for the candidate fuel and the flat limits in

section 2262 for the reference fuel, as described in the "Calif ornia Procedures for Evaluating Alternative Specifications for Phase 3 R eformulated Gasoline Using the California Predictive Model," as corrected November 18, 2004 and last amended August 7, 2008, which is incorporated herein by reference.

(19.8) "Pipeline tender" means a specific volume of product having a unique name or designation which is offered to a pipeline for tran sportation.§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 23 (20) "PM alternative gasoline formulation" means a final blend of gasoline that is subject to a set of PM alternative specifications assigned pursu ant to section 2265(a)

.

(21) "PM alternative specifications" means the spec ifications for the following gasoline properties, as determined in accordance with section 2263 and expressed to the number of significant figures identified for each property in the section 2262 standards table : maximum Reid vapor pressure, maximum sulfur content , maximum benzene content, maximum olefin content, minimum and maximum oxygen content, maximum T50, maximum T90, and maximum aromatic hydrocarbon conte nt.

(22) "PM averaging compliance option" means, with r eference to a specific gasoline property, the compliance option for PM alternative gasoline formulations under which final blends of gasoline are assigned designated al ternative limits in accordance with

section 2264

.

(23) "PM averaging limit" means a PM alternative sp ecification that is subject to the PM averaging compliance option.

(23.5) "PM emissions offsetting compliance option" means, with respect to a specific gasoline property, the compliance option set forth in section 2265.1(a)

.

(23.7) "PM emissions offsetting formulation" means a final blend of gasoline that is subject to a set of designated emissions offsetting limits assigned pursuant to section 2265.1(a)

.

(24) "PM flat limit" means a PM alternative specifi cation that is subject to the PM flat limit compliance option.

(25) "PM flat limit compliance option" means, with reference to a specific gasoline property, the compliance option under which each gallon of ga soline must meet the specification for the property contained in the PM alternative sp ecifications.

(26)(A) "Produce" means, except as otherwise provid ed in section (a)(26)(B) or (a)(26)(C), to convert liquid compounds which are not gasoline into gasoline or CARBOB. When a person blends volumes of blendstocks which are no t gasoline with volumes of gasoline acquired from another person, and the resu lting blend is gasoline, the person conducting such blending has produced only the port ion of the blend which was not previously gasoline. When a person blends gasoline with other volumes of gasoline, without the addition of blendstocks which are not g asoline, the person does not produce gasoline.

(B) Where a person supplies gasoline to a refiner w ho agrees in writing to further process the gasoline at the refiner's refinery and to be tr eated as the producer of the gasoline,§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 24

the refiner shall be deemed for all purposes under this article to be the producer of the gasoline.

(C) Where an oxygenate blender blends oxygenates in to CARBOB which has already been supplied from a gasoline production facility o r import facility, and does not alter the quality or quantity of the CARBOB or the result ing gasoline in any other manner except for the addition of deposit control additive s or other similar additives, the oxygenate blender is not producing any portion of t he resulting gasoline, and the producer or importer of the CARBOB is treated as th e producer or importer of the full volume of the resulting gasoline.

(26.5) "Produced at a California production facilit y with the use of any oxygenate other than ethanol or MTBE" means produced at a California pro duction facility in part by either (i) adding at the California production facility any ox ygenate, other than ethanol or MTBE, in neat form to the California gasoline or to a ble nding component used in the gasoline; or (ii) using a blending component that contained g reater than 0.10 weight percent total oxygen from oxygenates other than ethanol or MTBE w hen it was supplied to the California production facility.

(27) "Producer" means any person who owns, leases, operates, controls or supervises a California production facility.

(28) "Production facility" means a facility in Cali fornia at which gasoline or CARBOB is produced. Upon request of a producer, the executive officer may designate, as part of the producer's production facility, a physically separa te bulk storage facility which (A) is owned or leased by the producer, and (B) is operate d by or at the direction of the producer, and (C) is not used to store or distribut e gasoline or CARBOB that is not supplied from the production facility.

(28.5) "Qualifying small refiner" means a small ref iner whose California refinery was used in 1998 and 1999 to produce and supply California gaso line meeting the CaRFG Phase 2

standards.

(29) "Qualifying volume" means, for each small refi ner, a volume of gasoline determined in accordance with the following four steps, provided that the qualifying volume for Kern Oil & Refining Co.'s Bakersfield refinery shall not exceed 2,920,000 barrels per year (equal to 8000 barrels per day; 2,928,000 barrels p er year in leap years):

(A) First, the barrel per calendar day "operating c rude oil capacity" of the small refiner's refinery in March 1999 is identified, based on data which are reported to the executive officer from the California Energy Commis sion (CEC) and are derived§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 25

from "Monthly Refinery Reports" (EIA 810) submitted to the CEC no later than June 30, 1999. If the CEC is unable to derive such data from the Monthly Refinery Reports for a particular small refiner, the executive offic er shall determine the small refiner's operating crude oil capacity in March 1999 based on other publicly available and generally recognized sources.

(B) Second, this operating crude oil capacity is mu ltiplied by 0.9794, representing the highest monthly refinery operating utilization rate in the California refining industry for January 1998 through March 1999, as compiled in the "Monthly Refinery Capacity Data Statewide" report of the CEC.

(C) Third, the resulting crude throughput volume is multiplied by the refinery's highest monthly ratio of gasoline produced to crude oil dis tilled in January 1998 through March 1999, based on data derived by the CEC from t he Monthly Refinery Reports submitted to the CEC no later than June 30, 1999.

(D) Fourth, the resulting gasoline volume is multip lied by 365 to identify an annualized value. In the case of leap years, the gasoline volu me is multiplied by 366 to identify

the annualized value.

(29.5) "Racing vehicle" means a competition vehicle not used on public highways.

(30) "Refiner" means any person who owns, leases, o perates, controls or supervises a refinery.

(31) "Refinery" means a facility that produces liqu id fuels by distilling petroleum.

(32) "Small refiner" means any refiner who owns or operates a refinery in California that:

(A) Has and at all times had since January 1, 1978, a crude oil capacity of not more than 55,000 barrels per stream day;

(B) Has not been at any time since September 1, 198 8, owned or controlled by any refiner

that at the same time owned or controlled refinerie s in California with a total combined crude oil capacity of more than 55,000 bar rels per stream day; and

(C) Has not been at any time since September 1, 198 8, owned or controlled by any refiner

that at the same time owned or controlled refinerie s in the United States with a total combined crude oil capacity of more than 137,500 ba rrels per stream day.§ 2260

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 26 (32.5) "South Coast Area" means the counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura.

(33) "Stream day" means 24 consecutive hours of act ual operation of a refinery.

(34) "Supply" means to provide or transfer a produc t to a physically separate facility, vehicle, or transportation system.

(35) "TC limits" means the set of specifications id entified in a certification issued by the Executive Officer pursuant to the "California Proce dures for Evaluating Alternative Specifications for Gasoline Using Vehicle Emissions Testing," incorporated by reference

in section 2266(a)

.

(36) "Test-certified alternative gasoline formulati on" means a final blend of gasoline that is subject to a set of specifications identified in a certification issued by the Executive Officer pursuant to the "California Procedures for Evaluating Alternative Specifications for Gasoline Using Vehicle Emissions Testing," inco rporated by reference in section 2266(a)

.

(37) "Third party" means any person who applies for , or has a, third party AERP or a third party EERP.

(38) "Third party AERP" means an AERP whose applica tion was submitted by a third party and approved by the Executive Officer.

(39) "Third party EERP" means an EERP whose applica tion was submitted by a third party and approved by the Executive Officer.

§ 2261. Applicability of Standards; Additional Stan dards.

(a) Applicability of the CaRFG Phase 2 Standards.

(1)(A) Unless otherwise specifically provided, the CaRFG Phase 2 cap limit standards set

forth in section 2262 , and the CaRFG Phase 2 cap limit compliance requir ements in

sections 2262.3(a)

, 2262.4(a) , and 2262.5(a) and (b) , shall apply:§ 2261(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 27

1. starting April 15, 1996 to all sales, supplies, offers or movements of California gasoline except for transactions directly involving :

a. the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility, or

b. the delivery of gasoline from a bulk plant to a retail outlet or bulk purchaserconsumer facility, and

2. starting June 1, 1996 to all sales, supplies, of fers or movements of California gasoline, including transactions directly involving the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility

.

(B) The remaining CaRFG Phase 2 standards and requi rements contained in this subarticle shall apply to all sales, supplies, or o ffers of California gasoline occurring on or after March 1, 1996.

(2) The CaRFG Phase 2 cap limit standards in section 2262 shall not apply to transactions directly involving the fueling of motor vehicles at a retail outlet or bulk purchaserconsumer facility, where the person selling, offeri ng, or supplying the gasoline

demonstrates as an affirmative defense that the exc eedance of the pertinent standard was caused by gasoline delivered to the retail outlet o r bulk purchaser-consumer facility prior to April 15, 1996, or delivered to the retail outle t or bulk purchaser-consumer facility directly from a bulk plant prior to June 1, 1996.

(b) Applicability of the CaRFG Phase 3 Standards.

(1)(A) Unless otherwise specifically provided, the CaRFG Phase 3 cap limit standards set

forth in section 2262 , and the CaRFG Phase 3 cap limit compliance requir ements in 2262.3(a)

, 2262.4(a) , and 2262.5(a) and (b) , shall apply starting December 31, 2003. The CaRFG Phase 3 benzene and sulfur content cap li mit standards in section 2262

, and the CaRFG Phase 3 benzene and sulfur content ca p limit compliance requirements in 2262.3(a) , shall apply:

1. starting December 31, 2003 (for the benzene cont ent cap limit and the 60 parts per million sulfur content cap limit), December 31, 200 5 (for the 30 parts per million sulfur content cap limit), and December 31, 2011 (f or the 20 parts per million sulfur content cap limit) to all sales, supplies or offers of California gasoline from the production facility or import facility at which it was produced or imported.

2. starting February 14, 2004 (for the benzene cont ent cap limit and the 60 parts per million sulfur content cap limit), February 14, 200 6 (for the 30 parts per million§ 2261(b)(1)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 28

sulfur content cap limit), and February 14, 2012 (f or the 20 parts per million sulfur content cap limit) to all sales, supplies, o ffers or movements of California gasoline except for transactions directly involving :

a. the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility, or

b. the delivery of gasoline from a bulk plant to a retail outlet or bulk purchaserconsumer facility, and

3. starting March 31, 2004 (for the benzene content cap limit and the 60 parts per million sulfur content cap limit), March 31, 2006 ( for the 30 parts per million sulfur content cap limit), and March 31, 2012 (for the 20 parts per million sulfur content cap limit) to all sales, supplies, offers o r movements of California gasoline, including transactions directly involving the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility

.

(B) The remaining CaRFG Phase 3 standards and compl iance requirements contained in this subarticle shall apply to all sales, supplies, or offers of California gasoline occurring on or after December 31, 2003.

(2) The CaRFG Phase 3 benzene and sulfur content ca p limit standards in section 2262 shall not apply to transactions directly involving the fu eling of motor vehicles at a retail outlet or bulk purchaser-consumer facility, where the pers on selling, offering, or supplying the gasoline demonstrates as an affirmative defense tha t the exceedance of the pertinent standard was caused by gasoline delivered to the re tail outlet or bulk purchaser-consumer facility prior to February 14, 2004 (for the benzen e content limit and the 60 parts per million sulfur content limit), February 14, 2006 (f or the 30 parts per million sulfur content limit), or February 14, 2012 (for the 20 pa rts per million sulfur content limit) or delivered to the retail outlet or bulk purchaser-co nsumer facility directly from a bulk plant prior to March 31, 2004 (for the benzene cont ent limit and the 60 parts per million sulfur content limit), March 31, 2006 (for the 30 p arts per million sulfur content limit), or March 31, 2012 (for the 20 parts per million sulfur content limit).

(3) Early Compliance with the CaRFG Phase 3 Standar ds Before December 31, 2003.

(A) Any producer or importer wishing to supply from its production or import facility, before December 31, 2003, any final blends of gasol ine subject to the CaRFG Phase 3

standards instead of the CaRFG Phase 2 standards ma y notify the executive officer of

its wish to do so. The notification shall include a ll of the following:§ 2261(b)(3)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 29

1. The approximate date by which it intends to begi n supplying from its production or import facility gasoline complying with the CaRFG P hase 3 standards if permitted to do so;

2. A reasonably detailed demonstration of the produ cer's or importer's ability and plans to begin supplying from its production or imp ort facility substantial quantities of one or more grades of gasoline meetin g the CaRFG Phase 3 standards on or after the date specified;

(B)1. Within 15 days of receipt of a request under section 2261(b)(3)(A) , the executive officer shall notify the producer or importer makin g the request either that the request is complete, or specifying what additional information is necessary to make the request complete.

2. Within 15 days of notifying the producer or impo rter that the request is complete, the executive officer shall either grant or deny th e request. If the request is granted the executive officer shall specify the dat e on which producers and importers may start to supply from their production or import facilities final blends that comply with the CaRFG Phase 3 standards . The executive officer shall grant the request if he or she determines it is rea sonably likely that the producer or importer making the request will start supplying su bstantial quantities of one or more grades of gasoline complying with the CaRFG Ph ase 3 standards reasonably soon after the date specified. If the executive off icer denies the request, he or she shall provide the producer or importer with a writt en statement explaining the

reason for denial.

3. Upon granting a request made under section 2261(b(3)(A) , the executive officer shall notify interested parties of the date on whic h (i) producers and importers will be permitted to start supplying final blends of gas oline complying with the CaRFG Phase 3 standards, and (ii) the CaRFG Phase 2 cap limits for RVP and aromatics will become 7.20 psi and 35.0 volume perc ent respectively for gasoline downstream of the production or import facility. Th is notification shall be made by posting the pertinent information on the state b oard's Internet site, providing electronic mail notification to all persons subscri bing to the state board's FuelsGeneral Internet electronic mail list, and mailing notice to all persons registered

as motor vehicle fuel distributors under Health and Safety Code section 43026.

4. With respect to all final blends supplied from a production or import facility from the day specified by the executive officer in grant ing a request made under section 2261(b)(3)(A) through December 30, 2003, any producer or importe r may comply with the CaRFG Phase 3 standards that apply startin g December 31, 2003 as an

alternative to the CaRFG Phase 2 standards. Wheneve r a producer or importer is supplying a final blend subject to the CaRFG Phase 3 standards pursuant to this§ 2261(b)(3)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 30

section 2261(b)(3)(B)4., any notification required by sections 2264.2 or 2265(a) shall indicate that the final blend is subject to t he CaRFG Phase 3 standards. When it is sold or supplied from the production or import facility, no such final blend may contain MTBE in concentrations greater th an 0.60 volume percent, or contain a total of more than 0.10 weight percent ox ygen collectively from all of the oxygenates identified in section 2262.6(c)(4) that have not received a determination by the California Environmental Counc il as described in section 2262.6(c)(1)

.

(4) Early compliance with the CaRFG Phase 3 Amendme nts (Emissions Associated with Permeation) Before December 31, 2009.

(A) Any producer or importer that produces gasoline electing to supply from its production or import facility, before December 31, 2009, any final blends of gasoline subject to the "California Procedures for Evaluatin g Alternative Specifications for Phase 3 Reformulated Gasoline Using the California Predictive Model," as corrected November 18, 2004 and last amended August 7, 2008, shall notify the Executive

Officer of its wish to do so. The notification shal l include all of the information listed

in section 2261(b)(4)(E)

.

(B) Any producer or importer that produces gasoline electing to supply from its production or import facility, before December 31, 2009, any final blends of CARBOB subject to the "Procedures for Using the Cal ifornia Model for California Reformulated Gasoline Blendstocks for Oxygenate Ble nding (CARBOB)," as adopted April 25, 2001, last amended August 7, 2008 , shall notify the Executive

Officer of its wish to do so. The notification shal l include all of the information listed

in section 2261(b)(4)(E)

.

(C) Any producer or importer electing to supply fro m its production or import facility, before December 31, 2009, any final blends of gasol ine subject to the "California Procedures for Evaluating Alternative Specification s for Phase 3 Reformulated Gasoline Using the California Predictive Model," as corrected November 18, 2004 and last amended August 7, 2008, or to the "Procedu res for Using the California

Model for California Reformulated Gasoline Blendsto cks for Oxygenate Blending (CARBOB)," as adopted April 25, 2001, last amended August 7, 2008, may elect to use either one of the two compliance options (exhau st + evaporative emissions model

elements or the exhaust emissions model element onl y) as defined in the "California Procedures for Evaluating Alternative Specification s for Phase 3 Reformulated Gasoline Using the California Predictive Model" to certify alternative blends of gasoline. Beginning December 31, 2009, only the fir st compliance option (exhaust + evaporative emissions model elements) shall be used during the RVP regulatory control periods in section 2262.4(b)(2) and only the second compliance option (exhaust emissions model element only) shall be use d outside of the RVP regulatory§ 2261(b)(4)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 31

control period.

(D) Any producer or importer electing to use an alt ernative emission reduction plan or third party electing to use a third party alternati ve emissions reduction plan, before December 31, 2009, shall notify the Executive Offic er of its wish to do so. The

notification shall include all of the information l isted in section 2265.5

.

(E) Notification.

1. The approximate date by which it intends to begi n supplying from its production or import facility gasoline complying with the "Califo rnia Procedures for Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Using the California Predictive Model," as corrected November 18, 2004 and last amended August 7, 2008 or the "Procedures for Using the Cal ifornia Model for California Reformulated Gasoline Blendstocks for Oxygenate Ble nding (CARBOB)," as adopted April 25, 2001, last amended August 7, 2008 , referred to as the amended Procedures Guides, if permitted to do so;

2. A reasonably detailed demonstration of the produ cer's or importer's ability and plans to begin supplying from its production or imp ort facility substantial quantities of one or more grades of gasoline or CAR BOB meeting the amended Procedures Guides on or after the date specified;

3. All of the information required pursuant to section 2265.5(b)(2)

.

(F)1. Within 15 days of receipt of a request under section 2261(b)(4)(A) or (B) , the Executive Officer shall notify the producer or impo rter making the request either that the request is complete, or specifying what ad ditional information is necessary to make the request complete.

2. Within 15 days of notifying the producer or impo rter that the request is complete, the Executive Officer shall either grant or deny th e request. If the request is granted the Executive Officer shall specify the dat e on which producers and importers that produce gasoline may start to supply from their production or import facilities final blends that comply with the amended Procedures Guides. The Executive Officer shall grant the request if he or she determines it is reasonably likely that the producer or importer mak ing the request will start supplying substantial quantities of one or more gra des of gasoline or CARBOB complying with the amended Procedures Guides reason ably soon after the date specified. If the Executive Officer denies the requ est, he or she shall provide the producer or importer with a written statement expla ining the reason for denial.§ 2261(b)(4)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 32

3. Upon granting a request made under section 2261(b)(4)(A) or (B) , the Executive Officer shall notify interested parties of the date on which producers and importers that produce gasoline will be permitted t o start supplying final blends of gasoline complying with the amended Procedures Guid es. This notification shall be made by posting the pertinent information on ARB 's Internet site, providing electronic mail notification to all persons subscri bing to ARB's Fuels-General Internet electronic mail list, and mailing notice t o all persons registered as motor vehicle fuel distributors under Health and Safety C ode section 43026.

4. With respect to all final blends supplied from a production or import facility from the day specified by the Executive Officer in grant ing a request made under section 2261(b)(4)(A) or (B) through December 30, 2009, any producer or importer that produces gasoline may comply with the amended Procedures Guides that apply starting December 31, 2009. Whenever a p roducer or importer that produces gasoline is supplying a final blend subjec t to the amended Procedures Guides pursuant to this section 2261(b)(4)(F)4. , any notification required by

sections 2264.2 or 2265(a) shall indicate that the final blend is subject to the amended Procedures Guides. When it is sold or suppl ied from the production or import facility, no such final blend may result in emissions associated with permeation unless those emissions are offset throug h the Predictive Model or a valid AERP or third party AERP.

(G) AERPs and third party AERPs approved under this section are subject to sections 2265.5(d)-(i)

.

(5) Early compliance with the CaRFG Phase 3 Amendme nts (PM Emissions Offsetting) Before December 31, 2009.

(A) Any producer or importer that produces gasoline wishing to supply from its production or import facility, before December 31, 2009, any final blends of gasoline subject to section 2264.2(d) , shall notify the Executive Officer of its wish to do so. The notification shall include all of the following :

1. The approximate date by which it intends to begi n supplying from its production or import facility gasoline complying with section 2264.2(d) , if permitted to do so;

2. A reasonably detailed demonstration of the produ cer's or importer's ability and plans to begin supplying from its production or imp ort facility substantial quantities of one or more grades of gasoline meetin g section 2264.2(d) on or after the date specified;§ 2261(b)(5)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 33

3. All of the information required pursuant to section 2265.1(a)(2)(A)

.

(B)1. Within 15 days of receipt of a request under section 2261(b)(5)(A) , the Executive Officer shall notify the producer or importer makin g the request either that the request is complete, or specifying what additional information is necessary to make the request complete.

2. Within 15 days of notifying the producer or impo rter that the request is complete, the Executive Officer shall either grant or deny th e request. If the request is granted the Executive Officer shall specify the dat e on which producers and importers that produce gasoline may start to supply from their production or import facilities final blends that comply with section 2264.2(d) . The Executive Officer shall grant the request if he or she determ ines it is reasonably likely that the producer or importer making the request will st art supplying substantial quantities of one or more grades of gasoline comply ing with section 2264.2(d) reasonably soon after the date specified. If the Ex ecutive Officer denies the request, he or she shall provide the producer or im porter with a written statement explaining the reason for denial.

3. Upon granting a request made under section 2261(b)(5)(A) , the Executive Officer shall notify interested parties of the date on whic h producers and importers that produce gasoline will be permitted to start supplyi ng final blends of gasoline complying with section 2264.2(d) . This notification shall be made by posting the pertinent information on ARB's Internet site, provi ding electronic mail notification to all persons subscribing to ARB's Fu els-General Internet electronic mail list, and mailing notice to all persons regist ered as motor vehicle fuel distributors under Health and Safety Code section 4 3026.

4. With respect to all final blends supplied from a production or import facility from the day specified by the Executive Officer in grant ing a request made under section 2261(b)(5)(A) through December 30, 2009, any producer or importe r that produces gasoline may comply with section 2264.2(d) that applies starting December 31, 2009. Whenever a producer or importer that produces gasoline is supplying a final blend subject to section 2264.2(d) pursuant to this section 2261(b)(5)(B)4., any notification required by sections 2264.2 or 2265(a) shall indicate that the final blend is subject to the PM emissions offsetting provisions. When it is sold or supplied from the production or import facility, no such final blend may result in sulfur levels above the applica ble standards unless those sulfur emissions are fully offset as provided in section 2265.1

.

(C) Any producer or importer that produces gasoline that supplies from its production or import facility, before December 31, 2009, any fina l blends of gasoline subject to§ 2261(b)(5)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 34

section 2264.2(d) , shall comply with section 2265.1

.

(6) Ethanol Emission Reduction Plan (EERP)

(A) Applicability. This section shall apply to a pr oducer or importer that produces gasoline that elects to use an EERP or to a third p arty that elects to use a third party EERP when all of the following conditions are satis fied:

1. In the case of a third party EERP, the third par ty has a contract or agreement to offset, in whole or in part, the elevated emissions associated with increased ethanol blending from the producer's or importer's gasoline.

2. With regard to a batch of gasoline that does not meet the criteria for approval in the applicable Predictive Model Procedures, immediately prior to producing or importing that batch, the producer or importer has reported its gasoline as a PM alternative gasoline formulation pursuant to section 2265(a)

,

3. But for the elevated emissions associated with i ncreased ethanol blending, the PM alternative specifications would have met the crite ria for approval in the applicable Predictive Model Procedures,

4. All measures to correct the emissions associated with increased ethanol blending would result in an economic hardship to the produce r or importer and the benefit in allowing the producer or importer to use an EERP is not outweighed by the public interest in enforcing the applicable Predict ive Model Procedures,

5. The producer or importer is not subject to any o utstanding requirements to provide offsets at the same production facility or import f acility pursuant to section 2264(c) , and

6. The amount of ethanol blended into the final ble nd may not exceed 10.0 volume percent denatured ethanol.

7. All EERPs and third party EERPs sunset on Decemb er 30, 2009.

(B) Requirements.

1. Where the producer or importer that produces gas oline has reported its final blend of gasoline as a flat limit formulation pursuant to section 2264.2(b) , averaging limit formulation pursuant to section 2264.2(a) , PM alternative gasoline§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 35

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

, 2262.3(c)

, 2265 , or 2266 , respectively.

2. An EERP or third party EERP application demonstr ating compliance with this

subsection shall contain at a minimum all of the fo llowing information:

a. The company name, address, phone number, and con tact information,

b. The producer's or importer's name, batch name, n umber or other identification, grade of California gasoline, and other information that uniquely identify the California gasoline subject to the EERP or third pa rty EERP,

c. An explanation describing why the producer or im porter cannot eliminate the

emissions associated with increased ethanol blendin g by reformulation or reprocessing its gasoline,

d. The total emissions of oxides of nitrogen (NOx), total ozone forming potential, and potency-weighted toxics that would be associate d with the use of California gasoline were the producer or importer t o eliminate the emissions associated with increased ethanol blending from its gasoline,

e. Documentation, calculations, emissions test data , or other information that establishes the amount of NOx, total ozone forming potential, and potencyweighted toxics associated with the producer's or i mporter's gasoline,

f. The emission reduction strategy(ies) for the EER P or third party EERP and the date(s) that the offsets will accrue and expire for each strategy,

g. The producer or importer's market share for the fuel produced under the EERP or third party EERP,

h. Demonstration that the emission reduction strate gy(ies) in the EERP or third party EERP will result in equivalent or better emis sion benefits for NOx, total ozone forming potential, and potency-weighted toxic s than would be achieved through elimination of emissions associated with in creased ethanol blending from the gasoline for the same affected region and for the period the EERP or third party EERP will be in effect, during and outs ide the RVP regulatory control periods in section 2262.4(b)(2)

,§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 36

i. Demonstration that the emission reductions are a chieved in the general region where the fuel is sold,

j. The proposed recordkeeping, reporting, monitorin g, and testing procedures that the producer or importer plans to use to demonstrat e continued compliance with the EERP or third party EERP and achievement o f each increment of progress toward compliance,

k. Adequate enforcement provisions,

l. The projected volume of each final blend of Cali fornia gasoline subject to the EERP or third party EERP during the period the EERP or third party EERP will be in effect,

m. The period that the EERP or third party EERP wil l be in effect,

n. A compliance plan that includes increments of pr ogress (specific events and dates) that describe periodic, measurable steps tow ard compliance during the proposed period of the EERP or third party EERP,

o. The date by which the producer or importer plans to discontinue using the EERP or third party EERP,

p. A statement, signed by a legal representative fo r the producer or importer that all information submitted with the EERP or third pa rty EERP application is true and correct, and

q. The producer's or importer's agreement to be bou nd by the terms of the EERP or third party EERP.

r. In the case of a third party EERP, all of the ab ove including all of the following:

i. The third party's name, address, phone number, a nd contact information,

ii. Documentation of the contract or agreement betw een the third party and the producer or importer,

iii. Documentation of the amount of NOx, total ozon e forming potential, and potency-weighted toxics (reported as tons/day and p ercentage of the total tons/day) from the producer's or importer's gasolin e that will be offset by§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 37

the third party EERP,

iv. A list of all EERPs and third party EERPs that currently apply to the producer or importer,

v. A statement, signed by a legal representative fo r the third party that all information submitted with the third party EERP app lication is true and correct, and

vi. The third party's agreement to be bound by the terms of the third party

EERP.

3. Emission reduction calculations demonstrating eq uivalence between the EERP or third party EERP and elimination of the emissions a ssociated with increased ethanol blending from the gasoline shall only inclu de NOx, total ozone forming potential, and potency-weighted toxics emissions fr om California gasoline sold or supplied in California.

4. A producer or importer wishing to participate in an EERP may include one or more production facilities or import facilities, but the producer or importer shall only include such facilities that the producer or import er owns or operates under their direct control. A third party wishing to participat e in a third party EERP may include one or more production facilities or import facilities, but the third party shall only include such facilities with which the t hird party has a contract or agreement to offset emissions associated with perme ation.

5. The emission reduction associated with the EERP or third party EERP must be from combustion related sources or gasoline related sources.

6. EERPs and third party EERPs may include, but are not limited to:

a. Vehicle scrappage,

b. Offsetting emissions with lower emitting diesel fuel batches,

c. Incentive grants for cleaner-than-required engin es, equipment and other sources of pollution providing early or extra emission redu ctions.

7. Emission reductions included in an EERP or third party EERP shall not include reductions that are otherwise required by any local , State, or federal rule,§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 38

regulation, or statute, or that are achieved or est imated from equipment not located within the region associated with the EERP or third party EERP, or that

are claimed under section 2265.1 , or that are claimed under another program, such as the Voluntary Accelerated Vehicle Retirement or Carl Moyer program, or the result of standard business practices that the prod ucer or importer would have done without the EERP or third party EERP.

8. The producer or importer subject to an approved EERP or third party EERP shall maintain all records required to verify compliance with the provisions of the EERP or third party EERP in a manner and form speci fied by the Executive Officer in the approved EERP or third party EERP. R equired records may include, but are not limited to, volume of Californ ia gasoline sold, offered, or supplied to which the EERP or third party EERP appl ies, and/or emissions test results. Such records shall be retained for a perio d of not less than five (5) years

and shall be submitted to the Executive Officer wit hin 20 days in the manner specified in the approved EERP or third party EERP and upon request by the

Executive Officer.

9. Prior to selling, offering, or supplying a batch of California gasoline with increased ethanol blending, the producer or importer shall fi rst have established sufficient offsets for the applicable emissions associated wit h permeation. With the exception of offsets from vehicle scrappage and inc entive grants for cleaner-thanrequired engines, equipment, and other sources of p ollution, offsets shall expire at midnight on the day they accrued.

(C) Application Process.

1. Applications for an EERP or third party EERP sha ll be submitted in writing to the

Executive Officer for evaluation.

2. The application shall be accompanied by a fee of $6,700.00 to cover the costs of processing the EERP or third party EERP application . If the producer or importer withdraws the application before the 30-day comment period, $4,100.00 of the fee

shall be refunded.

3. The Executive Officer shall make available for p ublic review all documents pertaining to an EERP or third party EERP applicati on.

4. The Executive Officer will send a notice to subs cribers of the Fuels listserv that a person has requested the Executive Officer consider a request for an EERP or third party EERP. The Executive Officer shall also provide a copy of all such documents to each person who has requested copies o f the documents.§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 39

Collectively, those persons on the Fuels listserv a nd those persons who have requested copies of the documents shall be treated as interested parties.

5. After an EERP or third party EERP application ha s been received and deemed complete, the Executive Officer shall provide a 30- day public comment period to receive comments on any element of the EERP or thir d party EERP application. Any public comment addressing whether the Executive Officer should approve or disapprove the EERP or third party EERP application shall be based on the contents and merits of the application. No comment received by the Executive Officer after the 30-day period will be considered. The Executive Officer shall send to subscribers of the Fuels listserv, and mail to those interested parties who have requested copies by mail, the following:

a. The identity of the applicant producer(s) or imp orter(s);

b. The start and end dates for the 30-day comment p eriod;

c. The address of the EERP internet site where the application is posted; and,

d. Where and how to submit comments.

The Executive Officer shall post on the EERP intern et site, send to subscribers of the Fuels listserv, and mail to those interested pa rties who have requested copies by mail, notification of public comments received d uring the 30-day comment period.

6. The Executive Officer may hold a public hearing to accept public comments or decide the merits of the application.

7. Final Action.

After the public comment period ends, the Executive Officer may take final action to either approve or deny the EERP or third party E ERP application. The Executive Officer shall notify the producer or impo rter, post on the ARB internet site, send to subscribers of the Fuels listserv, an d mail to those interested parties who have requested copies by mail, of the final act ion.

8. Notification to the Executive Officer of Changes to information in the EERPorthird party EERP application.The producer or importer sha ll notify the Executive Officer in writing within 30 days upon learning of any information that would§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 40

alter any information provided in the EERP or third party EERP application.

(D) Revocation or Modification of an Approved EERP or third party EERP.

1. With 30-days written notice to the producer or i mporter, the Executive Officer may revoke or modify, as needed, an approved EERP in an y of the following

situations:

a. There has been more than one violation of the ap proved EERP or third party
EERP,

b. The Executive Officer has reason to believe that an approved EERP or third party EERP has been granted that no longer meets th e criteria or requirements for an EERP or third party EERP,

c. The producer or importer demonstrates that it ca n no longer comply with the requirements of the approved EERP or third party EE RP in its current form,

d. The producer or importer demonstrates to the sat isfaction of the Executive

Officer that the continuation of the EERP or third party EERP will result in economic hardship to the producer or importer, the producer or importer submits a substitute plan in accordance with section 2265.5(c) to offset any emissions not otherwise offset by the EERP or third party EERP, and the Executive Officer approves the substitute plan, or

e. The producer or importer's facility modification s and/or other means of eliminating emissions associated with increased eth anol blending from its gasoline have been completed.

2. The Executive Officer shall notify the producer or importer, post on the EERP internet site, send to subscribers of the Fuels lis tserv, and mail to those interested parties who have requested copies by mail, of a rev ocation or modification of an approved EERP or third party EERP.

3. Any violations incurred pursuant to subsection (E) shall not be cancelled or in any way affected by the subsequent cancellation or modi fication of an EERP or third party EERP.

(E) Additional prohibitions.§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 41

1. No person may sell, offer, or supply California gasoline that creates emissions associated with increased ethanol blending unless t he producer or importer, or in the case of a third party EERP, the third party has first been notified in writing by the Executive Officer that the EERP or third party EERP application has been approved.

2. Failure to meet any requirement of this section or any condition of an approved EERP or third party EERP shall constitute a single, separate violation of this article for each day until such requirement or cond ition is satisfied.

3. False reporting of any information contained in an EERP or third party EERP application, or any supporting documentation or ame ndments thereto, shall constitute a single, separate violation of the requ irements of this article for each day that the approved EERP or third party EERP is i n effect.

4. Any net exceedance at any given time, taking int o consideration the amount of offsets and the gasoline produced under the EERP or third party EERP, of NOx, total ozone forming potential, or potency-weighted toxics during the period the EERP or third party EERP is in effect shall constit ute a single, separate violation of the requirements of this article for each day th e California gasoline subject to the EERP or third party EERP is sold, supplied, or offered in California.

5. Any of the following actions shall each constitu te a single, separate violation of the requirements of this article for each day after the applicable deadline until the requirement or condition is satisfied:

a. Failure to report data or failure to report data accurately in writing to the Executive Officer when required by this section or the approved EERP or third party EERP;

b. False reporting of any information submitted to the Executive Officer for determining compliance with the EERP or third party EERP;

c. Failure to completely offset emissions, pursuant to any offset reconciliation requirements in the EERP or third party EERP, durin g the period the EERP or third party EERP is in effect;

d. Sale, supply, or offer of volumes of California gasoline which purportedly complies with the EERP or third party EERP in exces s of the approved EERP or third party EERP.§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 42

6. Offsets shall not include offsets or other reduc tions that are otherwise required by any local, State, or federal rule, regulation, or s tatute, or that are achieved or estimated from California gasoline not produced in the same air basin as the gasoline associated with the EERP or third party EE RP, or that are claimed under

section 2265.1

.

(F) A cause of action against the producer or impor ter or third party under this section shall be deemed to accrue on the date(s) when the r ecords establishing a violation of the EERP or third party EERP are received by the Ex ecutive Officer.

(G) Transferability.Rights to use, or protection un der, the EERP or third party EERP are non-transferable, unless such transfer is approved in writing by the Executive Officer.

(H) Notification of final blends associated with an EERP or third party EERP

1. Except as otherwise provided, for each final ble nd, the producer or importer shall notify the Executive Officer in writing, for receip t by the Executive Officer before the start of physical transfer of the gasoline from the production facility or import facility, and in no case less than 12 hours before the producer or importer either completes physical transfer or commingles the final blend, with the following

information:

a. The company name, address, phone number, and con tact information,

b. The production facility or import facility name, batch name, number, or other identification, the blend identity, grade of Califo rnia gasoline, the location (with sufficient specificity to allow ARB inspector s to locate and sample the gasoline; this shall include, but is not limited to , the name of the facility, address, and identification of the tank), and other information that uniquely identifies the California gasoline subject to the E ERP or third party EERP,

c. The estimated volume (in barrels),

d. The identity of the EERP or third party EERP, wh ich was approved by the Executive Officer and the NOx, total ozone forming potential, and potencyweighted toxics emission limits stated in that plan

,

e. The PM alternative specifications for RVP, sulfu r content, benzene content, aromatics content, olefins content, T50, T90, and o xygen content,§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 43

f. Documentation, calculations, emissions test data , and other information that establishes the amount of NOx, total ozone forming potential, and potencyweighted toxics associated with the final blend of California gasoline to which the EERP or third party EERP applies,

g. A statement, signed by a legal representative fo r the producer or importer that

all information submitted with the notification is true and correct, and

h. Within 24 hours after the start of the physical transfer, the date and time of the start of physical transfer from the production faci lity or import facility.

2. A producer or importer may report an actual volu me that is less than the estimated volume, as long as notification of the actual volum e is received by the Executive Officer no later than 48 hours after completion of the physical transfer of the final blend from the production facility or import facili ty. If notification of the actual volume is not timely received by the Executive Offi cer, the reported estimated volume shall be deemed the reported actual volume. If the actual volume is larger than initially estimated, the producer or importer shall revise the reported estimated volume by notifying the Executive Officer no later than 24 hours after completion of the physical transfer of the final bl end from the production facility or import facility.

(I) Notification of Increased Ethanol Blending Offs ets

1. Vehicle scrappage. The producer or importer sha ll notify the Executive Officer in writing as provided in the EERP or third party EERP with all documentation, calculations, emissions test data, and other inform ation that establishes the amount of NOx, total ozone forming potential, and p otency-weighted toxics associated with the vehicle scrappage and the date( s) the offsets accrued.

2. Fuels. Except as otherwise provided, the produc er or importer shall notify the Executive Officer in writing as provided in the EER P or third party EERP, for receipt by the Executive Officer before the start o f physical transfer of the gasoline from the production facility or import fac ility, and in no case less than 12 hours before the producer or importer either comple tes physical transfer or commingles the final blend, with the information in subsection (H)1. as they relate to other batches of California gasoline or d iesel fuel used to offset the

emissions associated with increased ethanol blendin g.

3. Incentive grants. The producer or importer shall notify the Executive Officer in writing as provided in the EERP or third party EERP with all documentation, calculations, emissions test data, and other inform ation that establishes the§ 2261(b)(6)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 44

amount of NOx, total ozone forming potential, and p otency-weighted toxics associated with the incentive grants for cleaner-th an-required engines, equipment and other sources of pollution providing early or e xtra emission reductions and the date(s) the offsets accrued.

4. Other reduction strategies.The producer or impor ter shall notify the Executive Officer in writing as provided in the EERP or third party EERP with all documentation, calculations, emissions test data, a nd other information that establishes the amount of NOx, total ozone forming potential, and potencyweighted toxics associated with the reduction strat egy and the date(s) the offsets

accrued.

(7) Election allowing a producer or importer that p roduces gasoline to blend percentages of denatured ethanol into CARBOB that are higher than the common carrier pipeline specifications for oxygen and denatured ethanol unt il December 30, 2009.

(A) A producer or importer that produces gasoline m ay elect to blend a higher volume of denatured ethanol into CARBOB than the amount speci fied by the common carrier pipeline specification. The producer or importer th at produces gasoline may elect to do such blending after it supplies from its product ion or import facility a CARBOB that concurrently meets the common carrier pipeline CARBOB specification and a CARBOB PM formulation having oxygen and denatured e thanol ranges greater than the common carrier pipeline specification. A produc er or importer that produces gasoline may elect to do such blending before Decem ber 31, 2009. A person may not elect to blend a higher volume of denatured ethanol into CARBOB than the amount specified by the common carrier pipeline specificat ion after December 30, 2009.

(B) In order to elect to blend higher volumes of de natured ethanol, the producer or importer must satisfy the following requirements:

1. Notification for each elected final blend by the producer or importer.For each final blend that the producer or importer elects to blend higher volumes of denatured ethanol, the producer or importer must notify the E xecutive Officer. The notification must be consistent with the requiremen ts specified in section 2266.5 and must include the following additional informati on:

a. Statement of election. A statement that the pro ducer or importer is electing to have the final blend subject to the requirements of section 2261(b)(7) ;

b. CARBOB certification for pipeline specifications . Information set forth in section 2266.5(b) demonstrating that the CARBOB meets the current co mmon§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 45

carrier pipeline specifications;

c. CARBOB certification for a wider range of oxygen and oxygenate. Information

set forth in section 2266.5(b) demonstrating that the same CARBOB identified in (B)1.b. meets a CARBOB PM formulation with a wider range of oxygen and denatured ethanol. The wider ranges must encompass the oxygen and denatured ethanol ranges specified by the commo n carrier pipeline specifications;

d. Volume of the final blend. The volume (gallons) of CARBOB of the final blend. This information will be replaced with the a ctual volume upon receipt of the producer's or importer's month end reconcili ation report;

e. Final blend identification. The final blend iden tification number (batch number), grade of CARBOB, production tank number, t ank location, name of producer or importer, name and phone number of cont act person;

f. Start of transfer. The estimated date that trans fers of the final blend from the production or import facility will begin;

g. Bulk terminals. The name, address, and contact person's name and phone number of oxygenate blending facilities that the pr oducer or importer has arranged for blending at higher volumes of denature d ethanol.

2. Agreement with an oxygenate blender. Before a pr oducer or importer notifies an oxygenate blender to blend higher volumes of denatu red ethanol into CARBOB, the producer or importer must enter into a contract ual agreement with the oxygenate blender stating that the oxygenate blende r agrees to be obligated by the requirements in section (C) regarding the blending of denatured ethanol into CARBOB, record keeping and retention, and month end reconciliation notification to CARB. The producer or importer must submit a copy of the contractual agreement to the Executive Officer for each oxygenate blending facility before notifying an oxygenate blender to b lend higher volumes of

denatured ethanol into CARBOB.

3. Notification to the oxygenate blender. After the producer or importer notifies the

Executive Officer of its election in (B)1. , the producer or importer may notify the oxygenate blender of the maximum volume percent of denatured ethanol to blend into CARBOB, the maximum number of gallons of CARBO B that may be blended with higher volumes of denatured ethanol, a nd the start of blending date which blending higher volumes of denatured ethanol may begin. The notification must include a statement that permission for blendi ng higher volumes of§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 46

denatured ethanol is in accordance with the produce r's or importer's election in section 2261(b)(7) . The notification must also include a statement th at the oxygenate blender must not exceed the volume percen t of denatured ethanol, not exceed the volume of CARBOB, not start blending hig her volumes of denatured ethanol before the start date, and not blend higher volumes of denatured ethanol after December 30, 2009. The producer or importer m ay notify only oxygenate blenders located in the geographical area normally supplied by its production or import facility.

4. Month end reconciliation by the producer or impo rter. The producer or importer must notify the Executive Officer of the following. The notification shall be received by the Executive Officer by the twentieth of the month for all final blends elected by the producer or importer in accor dance with section 2261(b)(7)(B)1. , which completed physical transfer of at least one pipeline tender from the production or import facility during the p receding calendar month. If the twentieth occurs on a weekend or holiday, the notif ication shall be received by the Executive Officer by the first business day after t he twentieth of the month. The

notification must include:

a. The final blend identification number;

b. With reference to each final blend identificatio n number:

i. The grade of CARBOB;

ii. The estimated volume (gallons) of CARBOB as rep orted in (B)1.d. ;

iii. For each discrete sale or supply of CARBOB:

I. The pipeline tender identification number;

II. The volume (gallons) of the pipeline tender;

III. The date that the pipeline tender started and ended delivery from the production tank to the pipeline;

IV. The identification of the pipeline; and

V. The identification of the oxygenate blending fac ility that receive the pipeline tender;§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 47

iv. Actual volume (gallons) of CARBOB supplied from the final blend; and

v. Date of completion of physical transfer of the l ast pipeline tender of CARBOB from the final blend;

c. The sum of the volume (gallons) CARBOB listed in section (B)4.b.iv. for each

final blend identified in section (B)4.a. ;

d. Copies of each notification specified in section (B)3 .;

e. The volume (gallons) of CARBOB blended at a high er volume of denatured ethanol than the amount specified by the common car rier pipeline specifications listed by each individual oxygenate blending facility. The sum of the volume (gallons) from all oxygenate blending facilities;

f. The opening balance at the beginning of the mont h. The volume (gallons) of CARBOB qualified under this section 2261(b)(7) that was not blended at a rate higher than common carrier pipeline specificat ions carried over from the previous calendar month. This volume is available f or blending at the higher rate; and

g. The ending balance at the end of the month. The volume (gallons) calculated as

follows:

The volume listed in section (B)4.f. plus the volume listed in section (B)4.c.

minus the sum of the volumes in section (B)4.e.

.

This volume is available to carry over to the next calendar month.

5. Whenever a producer or importer fails to provide the notification in section (B)4.

, regarding a volume of California gasoline or CARBOB in accordance with this section (B)4. , the volume of California gasoline or CARBOB will be presumed to have been sold by the person in violation of section (B)8.

.

6. Averaging. A producer or importer may not elect the provisions in section 2261(b)(7) if the producer or importer is using the provision s of section 2264 for Designated Alternative Limits or the provisions of section 2266.5(a)(5) for averaging. If the producer or importer is using the provisions in section 2261(b)(7) and notifies the Executive Officer that it elects to use the provisions of

section 2264 or section 2266.5(a)(5) , the election of the provisions of section 2261(b)(7) shall terminate and no further blending of higher volumes of denatured§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 48

ethanol into CARBOB may occur beyond the date of su ch election. Any remaining volume (gallons) that otherwise may be bl ended with higher volumes

of denatured ethanol are forfeited.

7. Start of oxygenate blending date. The start of o xygenate blending date is the date on which at least one pipeline tender has completed physical transfer from the production or import facility.

8. Producer's or importer's responsibilities. A pro ducer or importer electing final

blends in accordance with section 2261(b)(7) is responsible for the activities at the oxygenate blending facility involving blend a highe r volume of denatured ethanol. A producer or importer may not blend or allow the b lending of denatured ethanol at the oxygenate blending facility that:

a. Exceeds the volume available for blending at hig her rates as determined by the

notifications identified in section (B)1. ;

b. Exceeds the denatured ethanol volume percent des ignated by the producer or importer; or

c. Precedes the start of oxygenate blending date.

9. Producer or importer must specify denatured etha nol that meets the requirements in section 2262.9(a)(1)

.

10. Recordkeeping by producers and importers. Each producer or importer must compile and maintain records that affirmatively dem onstrate the production or import and the sale or supply of all final blends e lected under section (B) . The records must show, at a minimum:

a. Information regarding the production or import o f the final blend;

i. The final blend identification number;

ii. The grade of CARBOB;

iii. The CARBOB PM formulation that shows complianc e with the common carrier pipeline specifications;§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 49

iv. The CARBOB PM formulation having oxygen and den atured ethanol ranges greater than, and encompasses, the common ca rrier pipeline specification for oxygen and denatured ethanol;

v. Volume of the blend;

vi. Tank number, location; and

vii. Date of notification to CARB of the final blen d.

b. Information regarding sales or supply of the fin al pipeline tender;

i. Pipeline tender identification number;

ii. Start and end date and time;

iii. Volume of the pipeline tender;

iv. Destination of the pipeline tender; and

v. Pipeline company name.

c. Copies of the notifications specified in section (B)3. that the producer or importer sent to the oxygenate blender regarding ox ygenate blending; and

d. Information regarding the reconciliation of gall ons of CARBOB certified for a wider range at the production or import facility an d the gallons of CARBOB blended with higher volumes of denatured ethanol at the oxygenate blending facility.

11. Each producer or importer must provide to the E xecutive Officer any such records within 20 days of written request received from the Executive Officer or his or her designee. Whenever a producer or importer fails to provide records regarding a volume of California gasoline or CARBOB in accordan ce with this section (B)11., the volume of California gasoline or CARBOB will be presumed to have been sold by the person in violation of section (A)

.

12. Nothing in section 2261(b)(7) shall be construed to allow monthly averaging of volumes of CARBOB blended at higher volumes of dena tured ethanol at the§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 50

oxygenate blending facility.

(C) Oxygenate blender. An oxygenate blender that ha s entered into a contractual agreement in accordance with section (B)2. with a producer or importer may blend higher volumes of denatured ethanol into CARBOB at it's oxygenate blending facility provided that:

1. The oxygenate blender complies with the instruct ions specified in section (B)3. from the producer or importer. The oxygenate blende r must not exceed the maximum volume percent of denatured ethanol to blen d into CARBOB, the maximum volume (gallons) of CARBOB that may be blen d with higher volumes of denatured ethanol, and must not begin such blend ing before the start of oxygenate blending date.

2. Month end reconciliation by the oxygenate blende r. The oxygenate blender notifies the Executive Officer of the following. The notific ation shall be received by the Executive Officer by the twentieth of the month for all oxygenate blending related activities occurring at its facility during the pre ceding calendar month. If the twentieth occurs on a weekend or holiday, the notif ication shall be received by the Executive Officer by the first business day after t he twentieth of the month. If the oxygenate blender operates more than one oxygenate blending facility, the information in the notification must be presented p er facility. The notification

must include:

a. Information regarding the receipts of CARBOB. Th e pipeline tender identification number of each receipt of CARBOB to the oxygenate blending facility by pipeline or identification number of an y receipt other than pipeline. With reference to each receipt:

i. Grade of CARBOB;

ii. The volume (gallons) of the CARBOB pipeline ten der;

iii. The date the oxygenate facility began receivin g the CARBOB pipeline tender;

iv. Name of the supplier of the CARBOB; and

v. Identification number of the storage tank that r eceived the CARBOB pipeline tender;§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 51

b. Information regarding the receipts of denatured ethanol. The identification number or bill of lading number of each receipt of denatured ethanol to the oxygenate blending facility. With reference to each receipt:

i. The volume (gallons) of denatured ethanol;

ii. The means by which the denatured ethanol was de livered to the oxygenate blending facility (by truck, rail car, etc.);

iii. The name of the supplier of the denatured etha nol;

iv. The date the denatured ethanol was received; an d

v. Identification number of the storage tank that r eceived the denatured ethanol;

c. Information regarding oxygenate blending. For ea ch day of the calendar month at the oxygenate blending facility (if the oxygenat e blender is oxygenate blending for more than one producer or importer, th e information must be listed for each producer or importer):

i. The volume (gallons) of CARBOB that was blended with higher volumes of denatured ethanol (if more than one producer or imp orter, identify the producer or importer);

ii. The volume (gallons) of denatured ethanol that was blended at the higher rate (if more than one producer or importer, identi fy the producer or importer);

iii. If blending denatured ethanol at two rates tha t are higher than the common carrier pipeline specifications, list the CARBOB vo lumes and the

denatured ethanol volumes for section c.i. and c.ii . separately for the two

rates;

iv. The volume (gallons) of CARBOB that was blended with denatured ethanol according to common carrier pipeline specif ications;

v. The volume (gallons) of denatured ethanol that w as blended according to common carrier pipeline specifications;§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 52

d. Summary. Sums of the daily volumes (gallons) lis ted in c.i, c.ii., c.iv., and c.v.

for the calendar month.

3. Whenever the oxygenate blender fails to provide the notification in section (C)2.

, regarding a volume of California gasoline or CARBOB in accordance with section (C)2. , the volume of California gasoline or CARBOB will be presumed to have been sold by the person in violation of section (C)1

.

4. Recordkeeping by the oxygenate blender. The oxyg enate blender compiles and maintains records that affirmatively demonstrate th e denatured ethanol blending activities at it's oxygenate blending facility. The must records show, at a

minimum:

a. All information regarding the receipt of each pi peline tender of CARBOB;

b. All information regarding the receipt of each de livery of denatured ethanol;

c. All information regarding the daily oxygenate bl ending activities at the rack. If the oxygenate blender is oxygenate blending for mor e than one producer or importer, the information must be listed for each p roducer or importer;

d. All notifications specified in section (B)3. from the producer or importer to the oxygenate blender regarding oxygenate blending and any responses from the oxygenate blender to the producer or importer;

e. The oxygenate blender shall provide to the Execu tive Officer any such records within 20 days of written request received from the Executive Officer or his or her designee. Whenever the oxygenate blender fails to provide records regarding a volume of California gasoline or CARBOB in accordance with

this section (C)4. , the volume of California gasoline or CARBOB will be presumed to have been sold by the person in violati on of section (C)1.

(D) Protocols.

1. Recordkeeping or reporting for producers or impo rters. The Executive Officer may enter into a written protocol with any producer or importer for the purpose of specifying alternative recordkeeping or reporting r equirements to satisfy the requirements of sections (B)1.

, (B)2.

, (B)3.

, (B)4.

, (B)10. , and (B)11. . The Executive Officer may only enter into such a protoc ol if he or she reasonably determines that application of the regulatory requi rements under the protocol are not less stringent or enforceable than application of the express terms of sections (B)1.

, (B)2.

, (B)3.

, (B)4.

, (B)10. , and (B)11. Any such protocol shall include the§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 53

producer's or importer's agreement to be bound by t he terms of the protocol.

2. Recordkeeping or reporting for oxygenate blender s. The Executive Officer may enter into a written protocol with any oxygenate bl ender for the purpose of specifying alternative recordkeeping or reporting r equirements to satisfy the requirements of sections (C)2. , and (C)4. The Executive Officer may only enter into such a protocol if he or she reasonably determ ines that application of the regulatory requirements under the protocol are not less stringent or enforceable than application of the express terms of sections (C)2. and (C)4. Any such protocol shall include the oxygenate blender's agre ement to be bound by the terms of the protocol.

3. Notifications from producers or importers to oxy genate blenders. The Executive Officer may enter into a written protocol with any producer or importer for the purpose of specifying alternative notification requ irements from the producer or importer to the oxygenate blender to satisfy the re quirements of section (B)3. The Executive Officer may only enter into such a protoc ol if he or she reasonably determines that application of the regulatory requi rements under the protocol are not less stringent or enforceable than application of the express terms of section (B)3. Any such protocol shall include the producer's or importer's agreement to be bound by the terms of the protocol.

4. Number of ethanol ranges for producers or import ers. The Executive Officer may enter into a written protocol with any producer or importer for the purpose of specifying a different number of denatured ethanol ranges to satisfy the requirements of section (H) . The Executive Officer may only enter into such a protocol if he or she reasonably determines that ap plication of the regulatory requirements under the protocol are not less string ent or enforceable than application of the express terms of section (H) . Any such protocol shall include the producer's or importer's agreement to be bound by the terms of the protocol.

(E) Proprietary pipeline. Nothing in this regulatio n prohibits the use of this election in a producer's or importer's proprietary pipeline and t erminaling system.

(F) Electing to use section 2261(b)(7) will not be considered an act of changing from an initial to a new type of CARBOB as described in section 2266.5(f)(1)(C)

.

(G) The provisions in this section 2261(b)(7) are not specific or limited to the grade of

CARBOB.

(H) Maximum of two ethanol blending levels. Produce rs or importers of each production or import facility electing to use section 2261(b)(7) may designate up to two levels of§ 2261(b)(7)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 54

denatured ethanol when certifying its CARBOB. For e xample, one mid-level of at

about 7.7 v% and another level at about 10.0 v%.

(I) Use the same version of the Predictive Model. If the producer or importer elects to have two levels of denatured ethanol, the producer or importer must use the same version of the Predictive Model when evaluating and reporting PM formulations to

ARB.

(c) California gasoline sold or supplied on or afte r March 1, 1996, is also subject to section

2253.4 (Lead/Phosphorus in Gasoline), section 2254 (Manganese Additive Content), and

section 2257 (Required Additives in Gasoline). California gasol ine that is supplied from a small refiner's California refinery prior to March 1, 1998, and that qualifies for treatment

under section 2272(a) , shall also be subject to section 2250 (Degree of Unsaturation of Gasoline) and section 2252 (Sulfur Content of Gasoline).

(d) The standards contained in this subarticle shal l not apply to a sale, offer for sale, or supply of California gasoline to a refiner if: (1) the refine r further processes the gasoline at the refiner's refinery prior to any subsequent sale, offer for sa le, or supply of the gasoline, and (2) in the case of standards applicable only to producers or i mporters, the refiner to whom the gasoline is sold or supplied is the producer of the gasoline pursuant to section 2260(a)(26)(B)

.

(e) The prohibitions in sections 2262.3(b) and (c)

, 2262.4(b) , and 2262.5(c) shall not apply to gasoline which a producer or importer demonstrates was neither produced nor imported by the producer or importer.

(f) This subarticle 2, section 2253.4 (Lead/Phosphorus in Gasoline), section 2254 (Manganese Additive Content), and section 2257 (Required Additives in Gasoline) shall not apply t o gasoline where the person selling, offering or supp lying the gasoline demonstrates as an affirmative defense that the person has taken reaso nably prudent precautions to assure that the gasoline is used only in racing vehicles.

§ 2262. The California Reformulated Gasoline Phase 2 and Phase 3 Standards.

The CaRFG Phase 2 and CaRFG Phase 3 standards are s et forth in the following table. For all properties but Reid vapor pressure (cap limit only) and oxygen content, the value of the regulated property must be less than or equal to the specifie d limit. With respect to the Reid vapor pressure cap limit and the oxygen content flat and cap limit , the limits are expressed as a range, and the Reid vapor pressure and oxygen content must be less than or equal to the upper limit, and more than or equal to the lower limit. A qualifying smal l refiner may comply with the small refiner§ 2262

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 55 CaRFG Phase 3 standards, in place of the CaRFG Phas e 3 standards in this section, in

accordance with section 2272

.

The California Reformulated Gasoline Phase 2 and Ph ase 3 Standards

Flat Limits Averaging Limits Cap Limits Property

CaRFG

Phase 2 CaRFG

Phase 3 CaRFG

Phase 2 CaRFG

Phase 3 CaRFG

Phase 2 CaRFG

Phase 3

Reid Vapor Pressure 1
(pounds per square inch) 7.00 7.00 or

6.90 2 Not

Applicable Not

Applicable 7.00 3 6.40 -

7.20

60 4

30 4 Sulfur Content (parts per million by weight) 40 20 30 15 80

20 4

Benzene Content (percent by volume) 1.00 0.80 0.80 0.70 1.20 1.10

Aromatics Content (percent by volume) 25.0 25.0 22.0 22.0 30.0 3 35.0

Olefins Content (percent by volume) 6.0 6.0 4.0 4.0 10.0 10.0

T50 (degrees Fahrenheit) 210 213 200 203 220 220

T90 (degrees Fahrenheit) 300 305 290 5 295 330 330

1.8 6 - 3.5 1.8 6 -3.5 7 Oxygen Content (percent by weight) 1.8 - 2.2 1.8 - 2.2 Not Applicable Not

Applicable
0 6 - 3.5 0 6 - 3.5 7

Methyl tertiary-butyl ether (MTBE) and oxygenates other

than ethanol Not

Applicable Prohibited

as provided in § 2262.6 Not

Applicable Not

Applicable Not

Applicable Prohibited

as provided in § 2262.6

1 The Reid vapor pressure (RVP) standards apply only during the warmer weather months identified in section

2262.4

. 2 The 6.90 pounds per square inch (psi) flat limit a pplies when a producer or importer is using the CaR FG Phase 3 Predictive Model to certify a final blend not conta ining ethanol. Otherwise, the 7.0 psi limit applies

. 3 For sales, supplies, or offers of California gasol ine downstream of the production or import facility starting on the§ 2262

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 56 date on which early compliance with the CaRFG Phase 3 standards is permitted by the Executive Officer under section 2261(b)(3) , the CaRFG Phase 2 cap limits for Reid vapor press ure and aromatics content shall be 7.20 psi and 35.0 percent by volume respectively.

4 The CaRFG Phase 3 sulfur content cap limits of 60, 30, and 20 parts per million are phased in startin g December 31, 2003, December 31, 2005, and December 31, 2011, respectively, in accordance with section 2261(b)(1)(A)

. 5 Designated alternative limit may not exceed 310.

6 The 1.8 percent by weight minimum oxygen content c ap only applies during specified winter months in t he areas

identified in section 2262.5(a)

. 7 If the gasoline contains more than 3.5 percent by weight oxygen from ethanol but no more than 10.0 vo lume percent ethanol, the maximum oxygen content cap is 3.7 percent by weight.

§ 2262.3. Compliance With the CaRFG Phase 2 and CaR FG Phase 3 Standards for Sulfur, Benzene, Aromatic Hydrocarbons, Olefins, T50 and T9 0.

(a) Compliance with cap limits.

No person shall sell, offer for sale, supply, offer for supply, or transport California gasoline which exceeds an applicable cap limit for sulfur, b enzene, aromatic hydrocarbons, olefins,

T50 or T90 set forth in section 2262

.

(b) Compliance by producers and importers with the flat limits.

No producer or importer shall sell, offer for sale, supply, or offer for supply from its production facility or import facility California g asoline which exceeds an applicable flat limit for the properties of sulfur, benzene, aromat ic hydrocarbons, olefins, T50, or T90 set

forth in section 2262 , unless the gasoline (1) is subject to the averagi ng compliance option for the property in accordance with section 2264.2(a) , (2) has been reported as a PM alternative gasoline formulation pursuant to section 2265(a) , (3) has been reported as a testcertified alternative gasoline formulation pursuant to section 2266(c) , (4) has been reported as a PM emissions offsetting formulation pursuant t o section 2265.1 (applicable only to producers and importers that produce gasoline), or (5) is subject to an alternative emission reduction plan pursuant to section 2265.5 (applicable only to producers and importers that produce gasoline). Notwithstanding section 2265.5(a) , a producer or an importer that produces gasoline and that has elected to be subjec t to the flat limits specified in section 2262 shall offset its emissions associated with permeati on by complying with sections 2265.5(b)- (i) . An importer that does not produce gasoline shall not sell, offer for sale, supply, or offer for supply California gasoline if the gasoline crea tes emissions associated with permeation.

(c) Optional compliance by producers and importers with the averaging limits.

No producer or importer shall sell, offer for sale, supply, or offer for supply from its production facility or import facility California g asoline which is subject to the averaging compliance option for the properties of sulfur, ben zene, aromatic hydrocarbons, olefins, T50

or T90 in accordance with section 2264.2(a) if any of the following occurs. Notwithstanding section 2265.5(a) , a producer or an importer that produces gasoline and that has elected to be§ 2262.3

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 57 subject to an averaging limit specified in section 2262 shall offset its emissions associated with permeation by complying with sections 2265.5(b)-(i) . An importer that does not produce gasoline shall not sell, offer for sale, supply, or offer for supply California gasoline if the gasoline creates emissions associated with permeati on.

(1) The gasoline exceeds the applicable averaging l imit for the property set forth in section

2262 and no designated alternative limit for the proper ty has been established for the gasoline in accordance with the requirements of section 2264(a) ; or

(2) A designated alternative limit for the property has been established for the gasoline in accordance with the requirements of section 2264(a) , and the gasoline exceeds the designated alternative limit for that property; or

(3) Where the designated alternative limit exceeds the averaging limit for the property, the exceedance is not fully offset in accordance with section 2264(c)

.

(d) Optional compliance by producers or importers that produce gasoline with the PM emissions offsetting compliance option.

No producer or importer that produces gasoline shal l sell, offer for sale, supply, or offer for supply from its production facility or import facil ity a final blend of California gasoline as a PM emissions offsetting formulation subject to the designated emissions offsetting limits if any of the following occurs:

(1) The gasoline exceeds any of the designated emis sions offsetting limits for sulfur, benzene, aromatic hydrocarbons, olefins, oxygen, T5 0, or T90 for the final blend; or

(2) The gasoline exceeds the designated emissions o ffsetting limit for the final blend for RVP during any of the regulatory control periods in section 2262.4(b)(2)

.

(3) The excess emissions of oxides of nitrogen, tot al ozone forming potential, or the potencyweighted toxics associated with excess sulfur in a final blend of gasoline is not fully and timely offset in accordance with section 2265.1(c)

.

(4) The gasoline required to be offset and the offs etting gasoline are sold, offered, or supplied in different regions where the gasoline is normally offered for sale.§ 2262.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 58 § 2262.4. Compliance With the CaRFG Phase 2 and CaR FG Phase 3 Standards for Reid Vapor Pressure.

(a) Compliance with the cap limits for Reid vapor press ure.

(1) No person shall sell, offer for sale, supply, o ffer for supply, or transport California gasoline which exceeds the applicable cap limit for Reid vapor pressure within each of the air basins during the regulatory period set for th in section (a)(2)

.

(2) Regulatory Control Periods.

(A) April 1 through October 31 (May 1 through Octob er 31 in 2003 and 2004): South Coast Air Basin and Ventura County San Diego Air Basin Mojave Desert Air Basin

Salton Sea Air Basin

(B) May 1 through September 30: Great Basin Valley Air Basin

(C) May 1 through October 31: San Francisco Bay Area Air Basin San Joaquin Valley Air Basin Sacramento Valley Air Basin

Mountain Counties Air Basin

Lake Tahoe Air Basin

(D) June 1 through September 30:

North Coast Air Basin Lake County Air Basin

Northeast Plateau Air Basin

(E) June 1 through October 31:

North Central Coast Air Basin South Central Coast Air Basin (Excluding Ventura Co unty)

(b) Compliance by producers and importers with the flat limit for Reid vapor pressure.

(1) Reid vapor pressure standard for producers and importers.

(A) In an air basin during the regulatory control p eriods specified in section (b)(2) , no producer or importer shall sell, offer for sale, su pply, or offer for supply from its§ 2262.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 59

production facility or import facility California g asoline which has a Reid vapor pressure exceeding the applicable flat limit set fo rth in section 2262 unless the gasoline has been reported as either a PM alternati ve gasoline formulation pursuant to section 2265(a) or a PM emissions offsetting formulation pursuant to section 2265.1 (applicable only to producers and importers that pr oduce gasoline) using the evaporative emissions model element of the CaRFG Ph ase 3 Predictive Model.

(B) In an air basin during the regulatory control p eriods specified in section (b)(2) , no producer or importer shall sell, offer for sale, su pply, or offer for supply from its production facility or import facility California g asoline which has been reported either as a PM alternative gasoline formulation pur suant to section 2265(a) or a PM emissions offsetting formulation pursuant to section 2265.1 (applicable only to producers and importers that produce gasoline) usin g the evaporative emissions

model element of the CaRFG Phase 3 Predictive Model if the gasoline has a Reid vapor pressure exceeding the PM flat limit for Reid vapor pressure in the identified PM alternative specifications or the designated emi ssions offsetting limits, as applicable.

(2) Regulatory control periods for production and i mport facilities.

(A) 1. March 1 through October 31 (Except as otherw ise provided in (A)2. and (A)3. below): South Coast Air Basin and Ventura County San Diego Air Basin Mojave Desert Air Basin

Salton Sea Air Basin

2. In the areas identified in section 2262.4(b)(2)(A)1. , California gasoline that is supplied March 1 through March 31, 2003 from a prod uction or import facility that is qualified under this subsection is not subj ect to the prohibitions of section 2262.4(b)(1) , as long as the gasoline either is designated as s ubject to the CaRFG Phase 3 standards, or is subject to the CaRFG Phase 2 standards and also meets the prohibitions in sections 2262.6(a)(1) and 2262.6(c) regarding the use of oxygenates. In order for a production or import fac ility to be qualified, the producer or importer must notify the Executive Offi cer in writing by February 14, 2003 that it has elected to have the facility be su bject to this subsection during

March 2003.

3. In the areas identified in section 2262.4(b)(2)(A)1. , California gasoline that is supplied March 1 through March 31, 2004 from a prod uction or import facility that was not qualified under section 2262.4(b)(2)(A)2. is not subject to the prohibitions of section 2262.4(b)(1)

.§ 2262.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 60 (B) April 1 through September 30: Great Basin Valley Air Basin

(C) April 1 through October 31: San Francisco Bay Area Air Basin San Joaquin Valley Air Basin Sacramento Valley Air Basin

Mountain Counties Air Basin

Lake Tahoe Air Basin

(D) May 1 through September 30:

North Coast Air Basin Lake County Air Basin

Northeast Plateau Air Basin

(E) May 1 through October 31:

North Central Coast Air Basin South Central Coast Air Basin (Excluding Ventura Co unty)

(c) Applicability.

(1) Section (a)(1) shall not apply to a transaction occurring in an a ir basin during a regulatory control period in section (a)(2) where the person selling, supplying, or offering t he gasoline demonstrates as an affirmative defense tha t, prior to the transaction, he or she has taken reasonably prudent precautions to assure that the gasoline will be delivered to a retail service station or bulk purchaser-consumer's fueling facility when the station or facility is not subject to a regulatory control per iod in section (a)(2)

.

(2) Section (b) shall not apply to a transaction occurring in an a ir basin during the applicable regulatory control period for producers and importe rs where the person selling, supplying, offering or transporting the gasoline de monstrates as an affirmative defense that, prior to the transaction, he or she has taken reasonably prudent precautions to assure that the gasoline will be delivered to a retail ser vice station or bulk purchaser-consumer's fueling facility located in an air basin not then s ubject to the regulatory control period for producers and importers set forth in section (b)(2)

.

(3) Section (a)(1) shall not apply to a transaction occurring in an a ir basin during the regulatory control period where the transaction inv olves the transfer of gasoline from a stationary storage tank to a motor vehicle fuel tan k and the person selling, supplying, or offering the gasoline demonstrates as an affirmativ e defense that the last delivery of gasoline to the stationary storage tank occurred mo re than fourteen days before the start of the regulatory control period.§ 2262.4

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 61 (4) Gasoline that is produced in California, and is then transported to the South Coast Air Basin, Ventura County, or the San Diego Air Basin b y marine vessel shall be subject to the regulatory control periods for production and i mport facilities identified in section 2262.4(b)(2)(A)

.

§ 2262.5. Compliance With the Standards for Oxygen Content.

(a) Compliance with the minimum oxygen content cap limi t standard in specified areas in the

wintertime.

(1) Within the areas and periods set forth in section (a)(2) , no person shall sell, offer for sale, supply, offer for supply, or transport California g asoline unless it has an oxygen content of not less than the minimum oxygen content cap lim it in section 2262

.

(2)(A) November 1 through February 29:

South Coast Area Imperial County

(B) October 1 through October 31, (1996 through 200 2 only):

South Coast Area

(b) Compliance with the maximum oxygen content cap limi t standard.

No person shall sell, offer for sale, supply, or tr ansport California gasoline which has an oxygen content exceeding the maximum oxygen content cap limit in section 2262 , or which has an ethanol content exceeding 10.0 percent by vo lume.

(c) Compliance by producers and importers with the flat limits for oxygen content.

No producer or importer shall sell, offer for sale, supply, or offer for supply from its production or import facility California gasoline w hich has an oxygen content less than flat limit for minimum oxygen content, or more than flat limit for maximum oxygen content, unless the gasoline has been (1) reported as a PM a lternative gasoline formulation pursuant to section 2265(a) , or as a PM emissions offsetting formulation pursu ant to section 2265.1 (applicable only to producers and importers that pr oduce gasoline), or as an alternative gasoline formulation pursuant to section 2266(c) , and (2) complies with the standards

contained in sections (a) and (b)

.

(d) Restrictions on adding oxygenates to California gas oline after it has been supplied from the production or import facility.§ 2262.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 62 (1) Basic Restriction. No person may add oxygenates to California gasoline after it has been supplied from the production or import facility at which it was produced or imported, except where the person adding the oxygenates demon strates that: (A) the gasoline to which the oxygenates are added has been reported as a PM alternative gasoline formulation pursuant to section 2265(a) , or as a PM emissions offsetting formulation

pursuant to section 2265.1 (applicable only to producers and importers that p roduce gasoline), or as an alternative gasoline formulatio n pursuant to section 2266(c) , and has not been commingled with other gasoline, and (B) bo th before and after the person adds the oxygenate to the gasoline, the gasoline has an oxygen content within the oxygen content specifications of the applicable PM alterna tive gasoline formulation, PM emissions offsetting formulation, or alternative ga soline formulation. Nothing in this section (d) prohibits adding oxygenates to CARBOB.

(2) Bringing gasoline into compliance with the mini mum oxygen content cap limit. Notwithstanding section (d)(1) , a person may add an oxygenate that is not prohibi ted

under section 2262.6 to California gasoline that does not comply with a n applicable minimum oxygen content cap limit under sections 2262 and 2262.5(a) , where the person obtains the prior approval of the executive officer based on a demonstration that adding the oxygenate is necessary to bring the gasoline in to compliance with the minimum oxygen content cap limit.

(e) Application of prohibitions.

(1) Section (a) shall not apply to a transaction occurring in the areas and periods shown in (a)(2) where the person selling, supplying, or offering t he gasoline demonstrates as an affirmative defense that, prior to the transaction, he or she has taken reasonably prudent precautions to assure that the gasoline will not be delivered to a retail service station or bulk purchaser-consumer's fueling facility in the a reas and periods shown in (a)(2)

.

(2)(A) Section (a) shall not apply to a transaction occurring in the South Coast Area in October 2000, 2001, 2002, or 2003, where the transa ction involves the transfer of gasoline from a stationary storage tank to a motor vehicle fuel tank and the person selling, supplying, or offering the gasoline demons trates as an affirmative defense that the last delivery of gasoline to the stationar y storage tank occurred no later than September 16 of that year.

(B) Section (a) shall not apply to a transaction occurring in Nove mber either in Imperial County or, starting in 2004, in the South Coast Are a, where the transaction involves the transfer of gasoline from a stationary storage tank to a motor vehicle fuel tank and the person selling, supplying, or offering the gaso line demonstrates as an affirmative defense that the last delivery of gasoline to the s tationary storage tank occurred no later than October 17 of that year.§ 2262.6

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 63 § 2262.6. Prohibition of MTBE and Oxygenates Other Than Ethanol in California Gasoline Starting December 31, 2003.

(a) Basic MTBE prohibitions.

(1) Starting December 31, 2003, no person shall sel l, offer for sale, supply or offer for supply California gasoline which has been produced at a Ca lifornia production facility in part by either (i) adding at the California production faci lity any methyl tertiary-butyl ether (MTBE) in neat form to the California gasoline or t o a blending component used in the gasoline; or (ii) using a blending component that c ontained greater than 0.60 volume percent MTBE when it was supplied to the California production facility.

(2) No person shall sell, offer for sale, supply or offer for supply California gasoline which contains MTBE in concentrations greater than: 0.60 volume percent starting December 31, 2003, 0.30 volume percent starting July 1, 2004 , 0.15 volume percent starting December 31, 2005, and 0.05 volume percent starting July 1, 2007.

(b) Phase-in of MTBE prohibitions.

(1) Phase-in of MTBE prohibitions starting December 31, 2003, and 2005.In the first year in which a prohibition applies under section 2262.6(a) starting on December 31, the prohibition shall be phased in as follows:

(A) Starting December 31, for all sales, supplies, or offers of California gasoline by a producer or importer from its production facility o r import facility.

(B) Starting the following February 14, for all oth er sales, supplies, offers or movements of California gasoline except for transactions dire ctly involving:

1. the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility,

or

2. the delivery of gasoline from a bulk plant to a retail outlet or bulk purchaserconsumer facility.

(C) Starting the following March 31, for all remain ing sales, supplies, offers or movements of California gasoline, including transac tions directly involving the fueling of motor vehicles at a retail outlet or bul k purchaser-consumer facility.

(2) Phase-in of MTBE prohibitions starting July 1, 2004 and 2007. In the first year in which a prohibition applies under section 2262.6(a) starting on July 1, the prohibition shall be§ 2262.6

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 64 phased in as follows

(A) Starting July 1, for all sales, supplies, or of fers of California gasoline by a producer or importer from its production facility or import facility.

(B) Starting the following August 15, for all other sales, supplies, offers or movements of California gasoline except for transactions directl y involving:

1. the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility,

or

2. the delivery of gasoline from a bulk plant to a retail outlet or bulk purchaserconsumer facility.

(C) Starting the following October 1, for all remai ning sales, supplies, offers or movements of California gasoline, including transac tions directly involving the fueling of motor vehicles at a retail outlet or bul k purchaser-consumer facility.

(3) Phase-in for low-throughput fueling facilities. The prohibitions in section (a) starting respectively on December 31, 2003, July 1, 2004, De cember 31, 2005, and July 1, 2007, shall not apply to transactions directly involving the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility, where t he person selling, offering, or supplying the gasoline demonstrates as an affirmati ve defense that the exceedance of the standard was caused by gasoline delivered to the re tail outlet or bulk purchaser-consumer facility prior to the date on which the delivery be came subject to the prohibition pursuant to the phase-in provisions in section (b)

.

(c) Use of oxygenates other than ethanol or MTBE in Cal ifornia gasoline on or after December 31, 2003.

(1) Starting December 31, 2003, no person shall sel l, offer for sale, supply or offer for supply California gasoline which has been produced at a Ca lifornia production facility with the use of any oxygenate other than ethanol or MTBE unl ess a multimedia evaluation of use of the oxygenate in California gasoline has been co nducted and the California Environmental Policy Council established by Public Resources Code section 71017 has determined that such use will not cause a significa nt adverse impact on the public health

or the environment.

(2) Starting December 31, 2003, no person shall sel l, offer for sale, supply or offer for supply California gasoline which contains a total of more than 0.10 weight percent oxygen collectively from all of the oxygenates identified in section (c)(4) , other than oxygenates§ 2262.6

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 65 not prohibited by section (c)(1)

.

(3) Starting July 1, 2004, no person shall sell, of fer for sale, supply or offer for supply California gasoline which contains a total of more than 0.06 weight percent oxygen collectively from all of the oxygenates identified in section (c)(4) , other than oxygenates not prohibited by section (c)(1)

.

(4) Covered oxygenates. Oxygen from the following o xygenates is covered by the prohibitions in section 2262.6(c)(1)

, (2) and (3) :

Methanol Isopropanol n-Propanol

n-Butanol

iso-Butanol

sec-Butanol

tert-Butanol Tert-pentanol (tert-amylalcohol) Ethyltert-butylether (ETBE) Diisopropylether (DIPE) Tert-amylmethylether (TAME)

(5) The prohibitions in section 2262.6(c)(1) and (2) , and in section 2262.6(c)(3) , shall be phased in respectively as follows:

(A) Starting December 31, 2003 and July 1, 2004 res pectively for all sales, supplies, or offers of California gasoline by a producer or impo rter from its production facility or import facility.

(B) Starting February 14, 2004 and August 15, 2004 respectively for all other sales, supplies, offers or movements of California gasolin e except for transactions directly involving:

1. the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility,

or

2. the delivery of gasoline from a bulk plant to a retail outlet or bulk purchaserconsumer facility.

(C) Starting March 31, 2004 and September 30, 2004 respectively for all remaining sales, supplies, offers or movements of California gasolin e, including transactions directly involving the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer§ 2262.6

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 66

facility.

(6) Phase-in for low-throughput fueling facilities. The prohibitions in section 2262.6(c)(1)

and (2) , and in section 2262.6(c)(3) , starting respectively on December 31, 2003 and Ju ly 1, 2004, shall not apply to transactions directly i nvolving the fueling of motor vehicles at a retail outlet or bulk purchaser-consumer facility , where the person selling, offering, or supplying the gasoline demonstrates as an affirmati ve defense that the exceedance of the standard was caused by gasoline delivered to the re tail outlet or bulk purchaser-consumer facility prior to the date on which the delivery be came subject to the prohibition pursuant to the phase-in provisions in section 2262.6(c)(5)

.

§ 2262.9. Requirements Regarding Denatured Ethanol Intended For Use as a Blend Component in California Gasoline.

(a) Standards.

(1) Standards for denatured ethanol. Starting Decem ber 31, 2003, no person shall sell, offer for sale, supply or offer for supply denatured etha nol intended for blending with CARBOB or California gasoline that fails to comply with any of the following standards:

(A) Standards for properties regulated by the CaRFG Phase 3 standards.

1. A sulfur content not exceeding 10 parts per mill ion;

2. A benzene content not exceeding 0.06 percent by volume; and

3. An olefins content not exceeding 0.5 percent by volume; and

4. An aromatic hydrocarbon content not exceeding 1. 7 percent by volume.

(B) Standards based on ASTM D 4806-99.All test meth ods and standards identified in the title and the table below are incorporated herein b y reference.§ 2262.9

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 67 Specification Value Test method

Ethanol, vol.%, min. 92.1 ASTM D 5501-94(1998) ε 1

Methanol, vol.%, max. 0.5

Solvent-washed gum, mg/100 ml, max. 5.0 ASTM D 381-00, air jet

apparatus

Water content, vol.%, max. 1 ASTM E 203-96 or

E 1064-00

Denaturant content, vol.%, min.

vol.% max.

The only denaturants shall be natural gasoline, gasoline components, or unleaded gasoline. 1.96

5.00 a

Inorganic Chloride content, mass ppm (mg/l), max. 40 (32) Modification of ASTM D512-89(1999),

Procedure C b

Copper content, mg/kg, max. 0.1 Modification of ASTM D1688-95, Test Method A c

Acidity (as acetic acid), mass % (mg/l), max. 0.007 (56) ASTM D 1613-96 (1999)

pHe 6.5 - 9.0 ASTM D 6423-99

Appearance Visibly free of suspended or precipitated contaminants (clean and bright) Determined at indoor ambient temperature unless otherwise agreed upon between the supplier and purchaser

Note a: The maximum denaturant content limit is cha nged from 4.76 v% to 5.00 v% to be consistent with ASTM

4806-06c

Note b: The modification of ASTM D 512-89(1999), Pr ocedure C consists of using 5 ml of sample diluted with 20 ml of water in place of the 25 ml sample specified in the standard procedure. The water shall meet AST M D 1193- 99, Type II. The volume of the sample prepared by t his modification will be slightly larger than 25 ml . To allow for the dilution factor, report the chloride ion presen t in the fuel ethanol sample as the chloride ion pr esent in the diluted sample multiplied by five.

Note c: The modification of ASTM D 1688-95, Test Me thod A (atomic absorption) consists of mixing reage nt grade ethanol (which may be denatured according to the U. S. Bureau of Alcohol, Tobacco, and Firearms (BATF) of the§ 2262.9

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 68 U.S. Treasury Department Formula 3A or 30, as set f orth in 27 CFR sections 21.35 and 21.57, as in effe ct April 1, 2001) in place of water as the solvent or diluent f or the preparation of reagents and standard solutio ns. However, this must not be done to prepare the stock copper soluti on described in 11.1 of ASTM D 1688-95. Because a v iolent reaction may occur between the acid and the ethanol , use water, as specified, in the acid solution par t of the procedure to prepare the stock copper solution. Use ethanol for the rinse and dilution only.

(2) Exemption.

(A) Inapplicability of basic standards. The standa rds in section (a)(1)(A) do not apply to a quantity of denatured ethanol sold, offered for s ale, supplied, or offered for supply by a person who demonstrates as an affirmative defe nse that:

1. The person has complied with section (c)(1)(B) ; and

2. He or she has taken reasonably prudent precautio ns to assure that the denatured ethanol will only be added to CARBOB which has been designed to be lawfully oxygenated with denatured ethanol having the proper ties identified in the document provided pursuant to section (c)(1)(B)

.

(B) Substitute standards. Starting December 31, 200 3, no person shall sell, offer for sale, supply or offer for supply denatured ethanol that i s intended for blending with CARBOB or California gasoline and is exempt pursuan t to section (a)(2)(A) , if the denatured ethanol fails to comply with any of the p roperties identified in the document provided pursuant to section (c)(1)(B)

.

(3) Standards for products represented as appropria te for use as a denaturant in ethanol.

(A) Except as otherwise provided in section (a)(3)(B) , starting December 31, 2003, no person shall sell, offer for sale, supply or offer for supply a product represented as appropriate for use as a denaturant in ethanol inte nded for blending with CARBOB or California gasoline, if the denaturant has:

1. A benzene content exceeding 1.10 percent by volu me; or

2. An olefins content exceeding 10.0 percent by vol ume; or

3. An aromatic hydrocarbon content exceeding 35.0 p ercent by volume.

(B) A person may sell, offer for sale, supply or of fer for supply a product that is represented as only suitable for use as an ethanol denaturant in ethanol intended for blending with CARBOB or California gasoline if the denatured ethanol contains no more than a specified percentage of the denaturant that is less than 5.00 percent. In this case, the product must be prominently labeled as only lawful for use as a§ 2262.9

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 69

denaturant where the denatured ethanol contains no more than the specified percentage of the denaturant, and the seller, suppl ier or offeror must take reasonably prudent precautions to assure that the denaturant w ill not be used in concentrations greater than the specified percentage in ethanol in tended for blending with CARBOB or California gasoline. If these conditions are met , the standards in section (a)(3)(A) for the denaturant will be adjusted by multiplying the stated values by (5.00 ÷ max.%), where "max.%" is the maximum percentage by volume of denaturant specified for the denatured ethanol.

(b) Test Methods.

(1) In determining compliance with the denatured et hanol standards in section (a)(1)(A) :

(A) The sulfur content of denatured ethanol shall b e determined by ASTM D 5453- 93, which is incorporated herein by reference.

(B) The aromatic hydrocarbon, benzene and olefins c ontent of denatured ethanol shall be determined by sampling the denaturant and using the methods specified in section

2263 to determine the content of those compounds in the denaturant. The result will then be multiplied by 0.0500, except that where it is demonstrated that the denatured ethanol contains less than 5.00 percent denaturant, the result will be multiplied by the decimal fraction representing the percent denaturan t.

(2) In determining compliance with the denaturant s tandards in section (a)(3) , the aromatic hydrocarbon, benzene and olefins content of the den aturant shall be determined by the methods specified in section 2263 for determining the content of those compounds in gasoline.

(c) Documentation required for the transfer of denature d ethanol intended for use as a blend component in California gasoline.

(1)(A) Starting December 31, 2003, and except as pr ovided in section (c)(1)(B) , on each occasion that any person transfers custody or title of denatured ethanol intended for use as a blend component in California gasoline, th e transferor shall provide the transferee a document that prominently states that the denatured ethanol complies

with the standards for denatured ethanol intended f or use as a blend component in California gasoline.

(B) Starting December 31, 2003, on each occasion th at any person transfers custody or

title of denatured ethanol that is intended to be a dded to CARBOB designated for blending with denatured ethanol exceeding any of th e standards in section (a)(1)(A)

, the transferor shall provide the transferee a docum ent that prominently identifies the maximum sulfur, benzene, olefin and aromatic hydroc arbon content of the denatured§ 2262.9

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 70

ethanol, and states that the denatured ethanol may only be lawfully added to CARBOB that is designated for blending with denatur ed ethanol having such properties.

(2) Starting December 31, 2003, any person who sell s or supplies denatured ethanol intended for use as a blend component in California gasoline from the California facility at which it was imported or produced shall provide the purch aser or recipient a document that

identifies:

(A) The name and address of the person selling or s upplying the denatured ethanol, and identification of the person as the producer or imp orter of the denatured ethanol; and

(B) With respect to imported denatured ethanol, the name, location and operator of the facility(ies) at which the ethanol was produced and at which the denaturant was added to the ethanol. As an alternative, the document pro vided to the purchaser or recipient may identify the date and time the ethanol was supp lied from its import or production facility, and state that the person selling or supp lying the denatured ethanol from the California facility at which it was imported or pro duced maintains at the facility a list of the name, location, and operator of all of the f acilit(ies) at which the ethanol was produced and at which the denaturant was added to t he ethanol. In this case, the person shall for at least two years maintain such i nformation, and records identifying the entities that produced the ethanol and added th e denaturant in each batch of denatured ethanol imported to the facility; during that two year period, the person shall make the information and records, available t o the Executive Officer within five days after a request for the material.

§ 2263. Sampling Procedures and Test Methods.

(a) Sampling Procedures. In determining compliance with the standards set f orth in this subarticle 2, an applicable sampling methodology se t forth in 13 C.C.R. section 2296 shall be

used.

(b) Test Methods.

(1) In determining compliance with the gasoline sta ndards set forth in this subarticle 2, including those in the sections identified in Table 1, the test methods presented in Table 1

shall be used. All identified test methods are inco rporated herein by reference.§ 2263

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 71 Table 1

Section Gasoline Specification Test Method a

2262 Reid Vapor Pressure ASTM D 323-58 b or 13 C.C.R. Section 2297

2262 Sulfur Content ASTM D 2622-94 c, d or ASTM D 5453-93

2262 Benzene Content ASTM D 5580-00 e

2262 Olefin Content ASTM D 1319-95a f

(Through December 31, 2001)

ASTM D 6550-00 g,h,i

(Starting January 1, 2002)

2262 Oxygen Content ASTM D 4815-04

2262 T90 and T50 ASTM D 86-99a ε 1

2262 Aromatic Hydrocarbon

Content ASTM D 5580-00 j

2262.5(b) Ethanol Content ASTM D 4815-04

2262.6 MTBE Content ASTM D 4815-04

2262.6(c) Oxygen from oxygenates

identified in section 2262.6(c)(4) ASTM D 4815-04

a Do not report values below the limit of detection (LOD) specified in the test method. Where a test me thod does not specify a LOD, do not report values below the lower limit of the scope of the test method.

b Delete paragraph 4(b) concerning sampling.

c Make the following modifications to paragraph 9.1:

Low Level Sulfur Calibration Procedure

Reagents Thiophene, at least 99% purity 2-Methylthi ophene, at least 98% purity Toluene, reagent grade 2,2,4-Trimethylpentane, reagent grade

Preparation of Stock Standard Weigh standard materi als thiophene (~ 0.7290 gm) and 2-methylthiophene (~ 0.7031 gm) separately into a tared volumetric fl ask and record the individual mass to 0.1 mg. Add "mixed solvent" containing 25% toluene and 75% iso- octane (by volume) into the flask to a net weight o f§ 2263

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 72 approximately 50 gm and record the weight. This "St ock Standard" contains approximately 10 mg/gm

sulfur. The actual sulfer concentration can be calc ulated as follows:

Sulfur from thiophene (gm) = Weight of thiophene *3 2.06* purity/84.14

Sulfur from 2-methylthiophene (gm) = Weight of 2-me thylthiophene *32.06* purity/98.17

Sulfur concentration of Stock Standard (gm/gm) = (s ulfur from thiophene + sulfur from 2- methylthiophene)/net weight of the stock standard

Multiply the sulfur concentration by 1000 to conver t the unit to mg/gm.

Preparation of Calibration Standards Pipet 2.5 ml o f the Stock Standard to 250 ml flask and dilute wit h the

"mixed solvent" to the mark. The "Diluted Standard" contains approximately 100 mg/kg sulfur. Prepare 5

, 10, 20, 30, 50, 75 ppm calibration standards by pip etting 5, 10, 20, 30, 50, 75 ml of the Diluted Stan dard into a 100 ml flask, respectively, and diluting wit h the "mixed solvent" to the mark. The actual

concentration of the calibration standard should be determined from the stock standard. The standards with concentration ranging from 5 to 100 ppm and the "mi xed solvent" are to be used for calibrating the

instrument.

d Replace ASTM D 2622-94 reproducibility values with the following:

Sulfur Content, ppm Reproducibility

10 to 30 40.5% x Sulfur Content (ppm)

>30 19.2% x Sulfur Content (ppm)

e The reproducibility of benzene is as follows:

Reproducibility = 0.1409 (X 1.133 ), where X = vol %

f Add the following reproducibility statement for ox ygenate-containing samples:

Range Reproducibility

Olefins 0.3 - 33 0.819(X) 0.6

X = Volume %

g Replace ASTM D6550-00 reproducibility equation wit h the following:

Reproducibility = 0.32 X 0.5

where X is between 0.3 and 25 mass % olefin

h The conversion from mass % olefin to volume % olef in is defined as follows:§ 2263

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 73 volume % olefin = 0.857 * mass % olefin

i Replace the last sentence in ASTM D6550-00 section 1.1 with the following:

The application range is from 0.3 to 25 mass % tota l olefins.

j The reproducibility of total aromatic hydrocarbon is as follows:

Reproducibility = 1.4 volume%

(c) Equivalent Test Methods. Whenever this section provides for the use of a sp ecified test method, another test method may be used following a determination by the executive officer that the other method produces results equivalent t o the results with the specified method.

§ 2263.7. Multiple Notification Requirements.

Where a producer or importer is subject to multiple notification requirements pursuant to sections 2264(a)(2)(A)

, 2265.1 (applicable only to producers and importers that p roduce gasoline), 2265.5 (applicable only to producers and importers that p roduce gasoline), 2264.2(a)(2)

, 2264.2(b)(2)

, 2265(a)(2)

, 2266(c) or 2266.5(b) , the producer or importer shall combine the notifications to the extent practicable

.

§ 2264. Designated Alternative Limits.

(a) Assignment of a designated alternative limit.

(1) A producer or importer that has elected to be s ubject to an averaging limit specified in

section 2262 may assign a designated alternative limit to a fin al blend of California gasoline produced or imported by the producer or im porter by satisfying the notification requirements in this section (a). In no case shall a designated alternative limit be less than the sulfur, benzene, olefin or aromatic hydrocarbon content, or T90 or T50, of the final blend shown by the sample and test conducted pursua nt to section 2270 , or section 2266.5(a) , as applicable. If a producer or importer intends to assign designated alternative limits for more than one gasoline specification to a given quantity of gasoline, the party shall identify the same final blend for all designa ted alternative limits for the gasoline.

(2)(A) The producer or importer shall notify the ex ecutive officer of the estimated volume (in gallons), the designated alternative limit, the ble nd identity, and the location of each final blend receiving a designated alternative limi t. This notification shall be received by the executive officer before the start of physic al transfer of the gasoline from the production or import facility, and in no case less than 12 hours before the producer or importer either completes physical transfer or comm ingles the final blend. A producer or importer may revise the reported estimated volum e, as long as notification of the§ 2264

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 74

revised volume is received by the executive officer no later than 48 hours after completion of the physical transfer of the final bl end from the production or import facility. If notification of the revised volume is not timely received by the executive officer, the reported estimated volume shall be dee med the reported actual volume.

(B) For each final blend receiving a designated alt ernative limit exceeding an applicable averaging limit in section 2262 , the producer or importer shall notify the executi ve officer of the date and time of the start of physic al transfer from the production or import facility, within 24 hours after the start of such physical transfer. For each final blend receiving a designated alternative limit less than an applicable averaging limit

in section 2262 , the producer or importer shall notify the executi ve officer of the date and time of the completion of physical transfer fro m the production or import facility, within 24 hours after the completion of such physic al transfer.

(3) If, through no intentional or negligent conduct , a producer or importer cannot report within the time period specified in (a)(2) above, the producer or importer may notify the executive officer of the required data as soon as r easonably possible and may provide a written explanation of the cause of the delay in re porting. If, based on the written explanation and the surrounding circumstances, the executive officer determines that the conditions of this section (a)(3) have been met, ti mely notification shall be deemed to

have occurred.

(4) The executive officer may enter into a written protocol with any individual producer or importer for the purposes of specifying how the req uirements in section (a)(2) and (c) shall be applied to the producer's or importer's pa rticular operations, as long as the executive officer reasonably determines that applic ation of the regulatory requirements under the protocol is not less stringent or enforce able than application of the express

terms of section (a)(2) and (c) . Any such protocol shall include the producer's or importer's agreement to be bound by the terms of th e protocol.

(5) Whenever the final blend of a producer or impor ter includes volumes of gasoline the party has produced or imported and volumes the part y has neither produced nor imported, the producer's or importer's designated alternative limit shall be assigned and applied only to the volume of gasoline the party has produc ed or imported. In such a case, the producer or importer shall report to the executive officer in accordance with section (a) both the volume of gasoline produced and imported b y the party, and the total volume of the final blend. The party shall also additionally report the sulfur content, benzene content, olefin content, aromatic hydrocarbon conte nt, T90, and T50, as applicable, of the portion of the final blend neither produced nor imp orted by the party, determined as set

forth in section 2270(b) , or section 2266.5(a)(2) , as applicable.

(b) Additional prohibitions regarding gasoline to which a designated alternative limit has been assigned.§ 2264

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 75 (1) No producer or importer shall sell, offer for s ale, or supply California gasoline in a final blend to which the producer or importer has assigne d a designated alternative limit exceeding an applicable averaging limit in section 2262 , where the total volume of the final blend sold, offered for sale, or supplied exc eeds the volume reported to the executive officer pursuant to section (a)

.

(2) No producer or importer shall sell, offer for s ale or supply California gasoline in a final blend to which the producer or importer has assigne d a designated alternative limit less than an applicable averaging limit in section 2262 , where the total volume of the final blend sold, offered for sale, or supplied is less t han the volume reported to the executive officer pursuant to section (a)

.

(c) Offsetting exceedances of an applicable averaging l imit.

(1) With respect to each property for which a produ cer or importer has elected to be subject to the averaging limit in section 2262 , within 90 days before or after the start of physi cal transfer from a production or import facility of an y final blend of California gasoline to which a producer has assigned a designated alternat ive limit for the property exceeding the applicable averaging limit in section 2262 , the producer or importer shall complete physical transfer from the same production or impor t facility of California gasoline in sufficient quantity and with a designated alternati ve limit sufficiently below the applicable averaging limit in section 2262 to fully offset the extent to which the gasoline exceeded the applicable averaging limit in section 2262 . In the case of benzene, olefins, or aromatic hydrocarbons, the total volume of benze ne, olefins, or aromatic hydrocarbons in excess of the averaging limit must be offset wit hin the specified time period; the total mass of sulfur and the degree gallons of T50 and T9 0 in excess of the averaging limit must be similarly offset.

For example, within 90 days before or after the sta rt of physical transfer from a production or import facility of any final blend of California gasoline to which a producer has assigned a designated alternative limit for ole fin exceeding 4.0 percent by volume, the producer or importer shall complete physical tr ansfer from the same production or import facility of California gasoline in sufficien t quantity and with a designated alternative limit sufficiently below 4.0 percent by volume to offset the volume of the olefins in excess of a limit of 4.0 percent by volu me.

(2) A producer or importer may enter into a protoco l with the Executive Officer under which the producer or importer is allowed to have up to s ix separate averaging banks at a single production or import facility, applicable to operat ionally distinct products (e.g. different grades of gasoline or oxygenated and nonoxygenated) . The offset requirements will apply independently for each separate averaging bank. Onc e averaging is selected for a particular product, the compliance scheme for that product may only be changed if the change meets the applicable criteria and conditions in sections 2264.2 and 2265(c) with respect to that product. The protocol shall specify how the requirements in section (a)(2)§ 2264

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 76 and (c)(1) will be applied to the producer's or importer's pa rticular operations and the separate averaging banks. In order to enter into th e protocol, the Executive Officer must determine that application of the requirements unde r the protocol will not be less stringent or enforceable than application of the ex press terms of sections (a)(2) and (c)

. Any such protocol shall include the producer's or i mporter's agreement to be bound by the terms of the protocol.

(d) Designated alternative limits for PM alternative ga soline formulations.

The producer or importer of a final blend of Califo rnia gasoline that is subject to the PM averaging compliance option for one or more propert ies may assign a designated alternative limit to the final blend by satisfying the notifica tion requirements of section 2264(a) . The producer or importer of such a final blend shall be subject to all of the provisions of this

section 2264 , except that, with respect to that final blend, th e PM averaging limit (if any) for for each property subject to the PM averaging compl iance option shall replace any reference

in this section 2264 to the averaging limit specified in section 2262

.

§ 2264.2. Election of Applicable Limit for Gasoline Supplied From a Production or Import Facility.

(a) Election of the averaging compliance option.

(1) A producer or importer selling or supplying a f inal blend of gasoline from its production or import facility may elect pursuant to this secti on 2264.2(a) to have the final blend subject to the averaging compliance option for one or more of the following properties: sulfur, benzene, olefins, aromatic hydrocarbons, T9 0 or T50. Once a producer or importer has made such an election for a gasoline property, all final blends subsequently sold or supplied from the production or import facility sha ll be subject to the averaging compliance option for that property until the produ cer or importer either (A) elects in

accordance with section 2264.2(b) to have a final blend at the facility subject to t he flat limit compliance option for that property, or (B) e lects in accordance with section 2265(a) to sell or supply a final blend at the facility as a PM alternative gasoline formulation, or (C) elects in accordance with section 2266(c) to sell or supply a final blend at the facility as an alternative gasoline fo rmulation.

(2) In order to elect to have a final blend subject to the averaging option for a gasoline property, the producer or importer shall notify the executive officer of such election and

of the information identified in section 2264(a)(2)(A) , within the time limits set forth in section 2264(a)(2)(A) and subject to section 2264(a)(3) and (4)

.

(3) A producer or importer may not elect to sell, o ffer, or supply from its production facility or import facility a final blend of California gaso line subject to the averaging compliance option in section 2264 if the producer or importer is subject to any outs tanding§ 2264.2

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 77 requirements to provide PM emissions offsets pursua nt to section 2265.1(c) or emission reductions pursuant to section 2265.5 at the same production facility or import facility

.

(b) Election of flat limit compliance option.

(1) A producer or importer selling or supplying a f inal blend of gasoline from its production or import facility may elect to have the final blen d subject to the flat limit compliance option in accordance with this section 2264.2(b) . No such election may be made if there are outstanding requirements to provide offsets for the gasoline property at the facility

pursuant to section 2264(c)

.

(2) In order to elect to have a final blend subject to the flat limit compliance option for a gasoline property, the producer or importer shall n otify the executive officer of such election and of the blend identity and the location of the final blend, within the time

limits set forth in section 2264(a)(2)(A) and subject to section 2264(a)(3) and (4)

.

(3) Once a producer or importer has made an electio n under this section 2264.2(b) with respect to a gasoline property, all final blends su bsequently sold or supplied from the production or import facility shall be subject to t he flat limit compliance option for that property until the producer or importer either (A) elects in accordance with section 2264.2(a) to have a final blend at the facility subject to t he averaging compliance option for that property, or (B) elects in accordance with section 2265(a) to sell or supply a final blend at the facility as a PM alternative gasoline formulation, or (C) elects in accordance

with section 2264.2(d) to sell or supply a final blend at the facility as a PM emissions offsetting formulation (applicable only to producer s and importers that produce gasoline), or (D) elects in accordance with section 2265.5 to have a final blend at the facility subject to a PM alternate emissions reduction plan (applica ble only to producers and importers that produce gasoline), or (E) elects in accordance with section 2266(c) to sell or supply a final blend at the facility as an alternative gasol ine formulation.

(4) Once a producer or importer has made an electio n under this section 2264.2(b) with respect to a gasoline property of a final blend at a production or import facility, the producer or importer may not use any previously ass igned designated alternative limit for that property to provide offsets pursuant to section 2264(c) for any final blend sold or supplied from the production or import facility sub sequently to the election.

(5) A producer or importer may not elect to sell, o ffer, or supply from its production facility or import facility a final blend of California gaso line subject to the flat limit compliance option if the producer or importer is subject to an y outstanding requirements to provide PM emissions offsets pursuant to section 2265.1(c) or emission reductions pursuant to

section 2265.5 at the same production facility or import facility

.

(c) Inapplicability to elections for PM alternative gas oline formulations.§ 2264.2

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 78 Any election for a final blend to be subject to a P M averaging compliance option or a PM flat limit compliance option shall be made in accordance with section 2265 rather than this

section 2264.2

.

(d) Election of the PM emissions offsetting compliance option.

(1) Applicability. A producer or importer that prod uces gasoline and is selling, offering, or supplying a final blend of gasoline from its produc tion facility or import facility may elect pursuant to this section 2264.2(d) to have th e final blend subject to the PM emissions offsetting compliance option when all of the following conditions are satisfied:

(A) With regard to a batch of gasoline that does no t meet the criteria for approval in the applicable Predictive Model Procedures, immediately prior to producing that batch, the producer or importer has reported its gasoline as a PM alternative gasoline formulation pursuant to section 2265(a)

,

(B) The actual sulfur content in the PM alternative gasoline formulation exceeds the PM alternative specification,

(C) But for the elevated sulfur content, the PM alt ernative specifications would have met the criteria for approval in the applicable Predict ive Model Procedures,

(D) The gasoline reported as a PM alternative gasol ine formulation has a percent change in emissions value either for oxides of nitrogen, t otal ozone forming potential, or potency-weighted toxics that results in a final ble nd deficit, and

(E) The producer or importer is not subject to any outstanding requirements to provide offsets at the same production facility or import f acility pursuant to section 2264(c)

.

(2) Once a producer or importer has made such an el ection for a final blend of gasoline, all final blends subsequently sold or supplied from the production facility or import facility,

whether associated with a final blend deficit or a final blend credit, shall be subject to the PM emissions offsetting compliance option until the producer or importer either (A)

elects in accordance with section 2264.2(a) to have a final blend at the facility subject to the averaging compliance option, or (B) elects in a ccordance with section 2264.2(b) to have a final blend at the facility subject to the f lat limit compliance option for all fuel properties, or (C) elects in accordance with section 2265(a) to sell or supply a final blend at the facility as a PM alternative gasoline formul ation, or (D) elects in accordance with section 2266(c) to sell or supply a final blend at the facility as an alternative gasoline

formulation.§ 2264.2

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 79 (3) In order to elect to have a final blend subject to the PM emissions offsetting compliance option for a final blend, the producer or importer shall notify the Executive Officer of

such election and of the information identified in section 2265.1(a)(2)(A) , within the time

limits set forth in section 2265.1(a)(2)(A) and subject to section 2265.1(a)(3) and (4)

.

(4) Once a producer or importer has made an electio n under this section 2264.2(d) with respect to the PM emissions offsetting compliance o ption, the producer or importer may not use any previously assigned designated alternat ive limit for any fuel property to provide offsets pursuant to section 2264(c) for any final blend sold or supplied from the production facility or import facility subsequent t o the election.

§ 2265. Gasoline Subject to PM Alternative Specific ations Based on the California

Predictive Model.

(a) Election to sell or supply a final blend as a PM al ternative gasoline formulation.

(1) In order to sell or supply from its production facility or import facility a final blend of California gasoline as a PM alternative gasoline fo rmulation subject to PM alternative specifications, a producer or importer shall satisf y the requirements of this section (a).

(2) The producer or importer shall evaluate the can didate PM alternative specifications for gasoline subject to the CaRFG Phase 2 standards in accordance with the Air Resources Board's "California Procedures for Evaluating Alter native Specifications for Phase 2 Reformulated Gasoline Using the California Predicti ve Model," as adopted April 20, 1995 and last amended December 11, 1998, which is i ncorporated herein by reference. The producer or importer shall evaluate the candida te PM alternative specifications for gasoline subject to the CaRFG Phase 3 standards in accordance with the Air Resources Board's "California Procedures for Evaluating Alter native Specifications for Phase 3 Reformulated Gasoline Using the California Predicti ve Model," as corrected November 18, 2004, which is incorporated herein by reference . Starting December 31, 2009, the producer or importer shall evaluate the candidate P M alternative specifications for gasoline subject to the CaRFG Phase 3 standards in accordance with the Air Resources Board's "California Procedures for Evaluating Alter native Specifications for Phase 3 Reformulated Gasoline Using the California Predicti ve Model," as corrected November 18, 2004 and last amended August 7, 2008, which is incorporated herein by reference. The three documents incorporated by reference in th is section 2265(a)(2) are collectively

referred to as the "Predictive Model Procedures." I f the PM alternative specifications meet the criteria for approval in the applicable Pr edictive Model Procedures, the producer shall notify the executive officer of: (A) The iden tity and location of the final blend; (B) the PM alternative specifications that will apply t o the final blend, including for each specification whether it applies as a PM flat limit or a PM averaging limit; and (C) the numerical values for percent change in emissions fo r oxides of nitrogen, total ozone forming potential, and potency-weighted toxic air c ontaminants as determined in§ 2265

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 80 accordance with the applicable Predictive Model Pro cedures. The notification shall be received by the executive officer before the start of physical transfer of the gasoline from the production or import facility, and in no case l ess than 12 hours before the producer or importer either completes physical transfer or comm ingles the final blend.

(3) Once a producer or importer has notified the ex ecutive officer pursuant to this section 2265(a) that a final blend of California gasoline is being sold or supplied from a production or import facility as a PM alternative g asoline formulation, all final blends of California gasoline subsequently sold or supplied f rom that production or import facility shall be subject to the same PM alternative specifi cations until the producer or importer either (A) designates a final blend at that facilit y as a PM alternative gasoline formulation subject to different PM alternative specifications, (B) elects in accordance with section

2264.2 to have a final blend at that facility subject to flat limit compliance options and/or averaging compliance options, or (C) elects in acco rdance with section 2266(c) to sell a final blend at that facility as an alternative gaso line formulation, or (D) elects in

accordance with section 2264.2(d) to sell or supply a final blend at that facility a s a PM emissions offsetting formulation (applicable only t o producers and importers that produce gasoline), or (E) elects in accordance with section 2265.5 to have a final blend at that facility subject to a PM alternative emissions redu ction plan (applicable only to producers and importers that produce gasoline).

(4) The executive officer may enter into a written protocol with any individual producer or importer for the purposes of specifying how the req uirements in section (a)(2) shall be applied to the producer's or importer's particular operations, as long as the executive officer reasonably determines that application of t he regulatory requirements under the protocol is not less stringent or enforceable than application of the express terms of section (a)(2) . Any such protocol shall include the producer's or importer's agreement to be bound by the terms of the protocol.

(5) If, through no intentional or negligent conduct , a producer or importer cannot report within the time period specified in section (a)(2) above, the producer or importer may notify the executive officer of the required data a s soon as reasonably possible and may provide a written explanation of the cause of the d elay in reporting. If, based on the written explanation and the surrounding circumstanc es, the executive officer determines that the conditions of this section (a)(5) have bee n met, timely notification shall be

deemed to have occurred.

(b) Prohibited activities regarding PM alternative gaso line formulations.

(1) No producer or importer shall sell, offer for s ale, supply, or offer for supply from its production or import facility California gasoline w hich is reported pursuant to section 2265(a) as a PM alternative gasoline formulation subject t o PM alternative specifications if any of the following occur:§ 2265

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 81 (A) The identified PM alternative specifications do not meet the criteria for approval in the applicable Predictive Model Procedures; or

(B) The producer was prohibited by section 2265(c) from electing to sell or supply the gasoline as a PM alternative gasoline formulation; or

(C) The gasoline fails to conform with any PM flat limit in the identified PM alternative specifications (see section 2262.4(b) in the case of specifications for Reid vapor pressure); or

(D) With respect to any property for which the prod ucer or importer has identified a PM averaging limit.

1. the gasoline exceeds the applicable PM average l imit, and no designated alternative limit for the property has been established for the gasoline in accordance with section 2264(a) ; or

2. a designated alternative limit for the property has been established for the gasoline

in accordance with section 2264(a) , and either of the following occur:

a. The gasoline exceeds the designated alternative limit for the property, or

b. Where the designated alternative limit for the p roperty exceeds the PM averaging limit, the exceedance is not fully offset in accordance with the applicable provisions in section 2264(c)

.

(2) Where a producer or importer has elected to sel l or supply a final blend of California gasoline as a PM alternative gasoline formulation i n accordance with this section 2265

, the final blend shall not be subject to section 2262.3(b) and (c)

, section 2262.4(b) , and section 2262.5(c)

.

(c) Restrictions associated with elections to sell or s upply final blends as PM alternative gasoline formulations.

(1) A producer or importer may not elect to sell or supply from its production or import facility a final blend of California gasoline as a PM alternative gasoline formulation if the producer or importer is subject to any outstanding requirements to provide offsets at the same production or import facility pursuant to section 2264(c)

.

(2) Once a producer or importer has elected to sell or supply from its production or import facility a final blend of California gasoline as a PM alternative gasoline formulation subject to a PM averaging compliance option for one or more properties, the producer or§ 2265

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 82 importer may not elect any other compliance option, including another PM alternative gasoline formulation, if there are outstanding requ irements to provide offsets for such property or properties pursuant to section 2264(c) . However, this section (c)(2) shall not preclude a producer or importer under the circumsta nces described above from electing another PM alternative gasoline formulation where:

(A) the only changes are that either:

1. PM flat limits for one or more properties are ch anged to PM averaging limits, or

2. a single PM averaging limit for which there are no outstanding requirements to provide offsets is changed to a PM flat limit, and

(B) there are no changes to the PM alternative spec ifications for the remaining properties,

and

(C) the new PM alternative formulation meets the cr iteria for approval in the applicable

Predictive Model Procedures.

(3) Once a producer or importer has elected to sell or supply from its production or import facility a final blend of California gasoline as a PM alternative gasoline formulation, the producer or importer may not use any previously ass igned designated alternative limit for a property to provide offsets pursuant to section 2264(c) for any final blend sold or supplied from the production or import facility sub sequent to the election.

(4) A producer or importer may not elect to sell or supply from its production facility or import facility a final blend of California gasolin e as a PM alternative gasoline formulation if the producer or importer is subject to any outstanding requirements to provide offsets pursuant to section 2265.1(c) or emission reductions pursuant to section

2265.5 at the same production facility or import facility

.

§ 2265.1. Offsetting Emissions Associated with High er Sulfur Levels.

(a) Assignment of designated emissions offsetting limit s and percent change in emissions values for batches of gasoline for which the emissi ons associated with higher sulfur levels are being offset.

(1) A producer or an importer that produces gasolin e that has elected to be subject to the PM emissions offsetting compliance option must assign a designated emissions offsetting limit for the sulfur, benzene, olefin, aromatic hyd rocarbon, and oxygen (maximum and minimum) contents, and for the T90, T50, and RVP (d uring the RVP regulatory control§ 2265.1

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 83 period in section 2262.4(b)(2) ) for each final blend of California gasoline produ ced by the producer or the importer and satisfying the not ification requirements in this section (a). In no case shall a designated emissions offset ting limit be less than the sulfur, benzene, olefin, or aromatic hydrocarbon contents, T90, T50, or RVP, or less than the maximum oxygen content or greater than the minimum oxygen content of the final blend shown by the sample and test conducted pursuant to section 2270 . For each final blend, the producer or the importer that produces gasoline shall also assign the percent change in emissions values, as they pertain to the PM emissio ns offsetting compliance option, for oxides of nitrogen, total ozone forming potential, and potency-weighted toxics.

(2) Notification of final blends associated with a final blend deficit

(A) Except as otherwise provided, for each final bl end that has a percent change in emissions value greater than 0.04 percent for oxide s of nitrogen, total ozone forming potential, or potency-weighted toxics (referred to as the deficit final blend), the producer or the importer that produces gasoline sha ll notify the executive officer in writing, for receipt by the executive officer befor e the start of physical transfer of the gasoline from the production facility or the import facility, and in no case less than 12 hours before the producer or the importer that prod uces gasoline either completes physical transfer or commingles the final blend, wi th the following information:

1. Justification for using the PM emissions offsett ing compliance option, including but not limited to, an explanation for the elevated sulfur level in the final blend and why the batch will not be re-blended or a diffe rent predictive model formulation will not be developed,

2. The targeted PM alternative specifications that the producer or the importer that produces gasoline was intending to produce and whic h would have resulted in a passing PM formulation but for the actual sulfur co ntent of the blend,

3. The percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitroge n, total ozone forming potential, and potency-weighted toxics for the targ eted PM alternative specifications,

4. The company name, address, phone number, and con tact information,

5. The production facility or import facility name, batch name, number, or other identification, the blend identity, grade of Califo rnia gasoline, the location (with sufficient specificity to allow ARB inspectors to l ocate and sample the gasoline; this shall include, but is not limited to, the name of the facility, address, and identification of the tank), and other information that uniquely identifies the California gasoline subject to the PM emissions off setting compliance option,§ 2265.1

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 84

6. The estimated volume (in barrels),

7. The designated emissions offsetting limit for RV P, sulfur content, benzene content, aromatics content, olefins content, T50, T90, and o xygen content for the final blend,

8. The percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitroge n, total ozone forming potential, and potency-weighted toxics for the fina l blend,

9. A statement, signed by a legal representative fo r the producer or the importer that produces gasoline that all information submitted wi th the notification is true and correct, and

10. Within 24 hours after the start of the physical transfer, the date and time of the start of physical transfer from the production faci lity or import facility.

(B) A producer or importer that produces gasoline m ay report an actual volume that is less than the estimated volume, as long as notifica tion of the actual volume is received by the executive officer no later than 48 hours after completion of the physical transfer of the final blend from the produ ction facility or import facility. If notification of the actual volume is not timely rec eived by the executive officer, the reported estimated volume shall be deemed the repor ted actual volume. If the actual volume is larger than initially estimated, the prod ucer or the importer that produces gasoline shall revise the reported estimated volume by notifying the executive officer no later than 24 hours after completion of the phys ical transfer of the final blend from the production facility or import facility.

(3) Notification of final blends associated with a final blend credit.

(A) For each final blend associated with a final bl end credit, the producer or the importer that produces gasoline shall notify the executive o fficer in writing for receipt by the executive officer before the start of physical tran sfer of the gasoline from the production facility or the import facility, and in no case less than 12 hours before the producer or the importer that produces gasoline eit her completes physical transfer or commingles the final blend, with the following info rmation:

(1) The company name, address, phone number, and co ntact information,

(2) The production facility or the import facility name, batch name, number, or other identification, the blend identity, grade of Califo rnia gasoline, the location (with sufficient specificity to allow ARB inspectors to l ocate and sample the gasoline; this shall include, but is not limited to, the name of the facility, address, and§ 2265.1

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 85

identification of the tank), and other information that uniquely identifies the California gasoline associated with a final blend c redit,

(3) The estimated volume (in barrels),

(4) The designated emissions offsetting limits for RVP, sulfur content, benzene content, aromatics content, olefins content, T50, T 90, and oxygen content for the final blend,

(5) The percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitroge n, total ozone forming potential, and potency-weighted toxics for the fina l blend,

(6) A statement, signed by a legal representative f or the producer or the importer that produces gasoline that all information submitted wi th the notification is true and correct, and

(7) Within 24 hours after the completion of the phy sical transfer, the date and time of the completion of physical transfer from the produc tion facility or the import facility.

(B) A producer or importer that produces gasoline m ay report an actual volume that is more than the estimated volume, as long as notifica tion of the actual volume is received by the executive officer no later than 48 hours after completion of the physical transfer of the final blend from the produ ction facility or the import facility. If notification of the actual volume is not timely received by the executive officer, the reported estimated volume shall be deemed the repor ted actual volume. If the actual volume is less than initially estimated, the produc er or the importer that produces gasoline shall revise the reported estimated volume by notifying the executive officer no later than 24 hours after completion of the phys ical transfer of the final blend from the production facility or import facility.

(4) If, through no intentional or negligent conduct , a producer or importer that produces gasoline cannot report within the time period speci fied in (a)(2) or (a)(3) above, the producer or importer that produces gasoline may not ify the executive officer of the required data as soon as reasonably possible and ma y provide a written explanation of the cause of the delay in reporting. If, based on the w ritten explanation and the surrounding circumstances, the executive officer determines tha t the conditions of this section (a)(4) have been met, timely notification shall be deemed to have occurred.

(5) The executive officer may enter into a written protocol with any individual producer or importer that produces gasoline for the purposes of specifying how the requirements in

sections (a)(2) and (c) shall be applied to the producer's or importer's p articular§ 2265.1

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 86 operations, as long as the executive officer reason ably determines that application of the regulatory requirements under the protocol is not l ess stringent or enforceable than application of the express terms of sections (a)(2) and (c) . Any such protocol shall include the producer's or importer's agreement to b e bound by the terms of the protocol.

(b) Additional prohibitions regarding gasoline with des ignated emissions offsetting limits and final blend credits or deficits.

(1) No producer or importer that produces gasoline shall sell, offer for sale, or supply California gasoline with a final blend deficit, whe re the total volume of the final blend sold, offered for sale, or supplied exceeds the vol ume reported to the executive officer

pursuant to section (a)

.

(2) No producer or importer that produces gasoline shall sell, offer for sale or supply California gasoline with a final blend credit, wher e the total volume of the final blend sold, offered for sale, or supplied is less than th e volume reported to the executive officer

pursuant to section (a)

.

(3) Final blend credits shall not include offsets o r other reductions that are otherwise required by any local, State, or federal rule, regulation, o r statute, or that are achieved or estimated from California gasoline not produced or imported i n the same air basin as the gasoline with a final blend deficit, or that are claimed und er any alternative emission reduction plan.

(c) Offsetting a final blend deficit.

With respect to each final blend for which a produc er or importer that produces gasoline has elected to be subject to the PM emissions offsettin g compliance option, within 90 days after the start of physical transfer from a production fa cility or import facility of any final blend of California gasoline with a final blend deficit, the producer or importer shall complete physical transfer from the same production facility or import facility of California gasoline with a final blend credit in sufficient quantity an d for the same emissions parameter (oxides of nitrogen, total ozone forming potential, or pote ncy-weighted toxics) to fully offset the

final blend deficit.

For example, within 90 days after the start of phys ical transfer from a production facility or import facility of 100 barrels of any final blend o f California gasoline to which a producer or importer that produces gasoline has assigned a desi gnated emissions offsetting limit which results in a 0.10 percent increase in oxides of nit rogen, the producer or importer that produces gasoline shall complete physical transfer from the same production facility or import facility of California gasoline in sufficien t quantity and quality to offset the 6 deficit points for oxides of nitrogen. The final blend defi cit is calculated as:

Final Blend Deficit = (0.10 - 0.04) x 100 = 6§ 2265.1

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 87 (d) Automatic termination of the producer's or importer 's use of the PM emissions offsetting compliance option.

When a producer or importer that produces gasoline has fully offset the final blend deficit, the producer's or importer's use of the PM emission s offsetting compliance option automatically terminates. Prior to selling, supplyi ng, or offering California gasoline after the termination, the producer or importer that produces gasoline must elect to use the flat limits, designated alternative limits, PM alternative speci fications, or TC limits for its next final blend. The producer or importer that produces gasol ine may not use any remaining final blend credits to provide offsets pursuant to section 2265.1(c) for any final blend sold, offered, or supplied from the production facility o r import facility subsequent to the election.

§ 2265.5. Alternative Emission Reduction Plan (AERP ).

(a) Applicability.

This section shall apply to a producer or importer that produces gasoline that elects to use an AERP or to a third party that elects to use a third party AERP when all of the following

conditions are satisfied:

(1) In the case of a third party AERP, the third pa rty has a contract or agreement to offset, in whole or in part, the elevated emissions associated with permeation from the producer's or importer's gasoline.

(2) With regard to a batch of gasoline that does no t meet the criteria for approval in the applicable Predictive Model Procedures, immediately prior to producing or importing that batch, the producer or importer has reported i ts gasoline as a PM alternative gasoline formulation pursuant to section 2265(a)

,

(3) But for the elevated emissions associated with permeation, the PM alternative specifications would have met the criteria for appr oval in the applicable Predictive Model Procedures,

(4) All measures to correct the emissions associate d with permeation would result in an economic hardship to the producer or importer and t he benefit in allowing the producer or importer to use an alternative emission reduction p lan is not outweighed by the public interest in enforcing the applicable Predictive Mod el Procedures,

(5) The producer or importer is not subject to any outstanding requirements to provide offsets at the same production facility or import facility pursuant to section 2264(c) , and§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 88 (6) All AERPs and third party AERPs sunset on Decem ber 31, 2011, unless the producer or importer, or the third party in the case of a third party AERP, requests in writing, and the Executive Officer approves in advance, an extension of the AERP or third party AERP for up to one additional year.

(b) Requirements.

(1) Where the producer or importer that produces ga soline has reported its final blend of gasoline as a flat limit formulation pursuant to section 2264.2(b) , averaging limit formulation pursuant to section 2264.2(a) , PM alternative gasoline formulation pursuant

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

, 2262.3(c)

, 2265 , or 2266 , respectively.

(2) An AERP or third party AERP application demonst rating compliance with this subsection shall contain at a minimum all of the following inf ormation:

(A) The company name, address, phone number, and co ntact information,

(B) The producer's or importer's name, batch name, number or other identification, grade of California gasoline, and other information that uniquely identify the California gasoline subject to the AERP or third party AERP,

(C) An explanation describing why the producer or i mporter cannot eliminate the emissions associated with permeation by reformulati on or reprocessing its gasoline,

(D) The total emissions of oxides of nitrogen (NOx) , total ozone forming potential, and potency-weighted toxics that would be associated wi th the use of California gasoline were the producer or importer to eliminate the emis sions associated with permeation from its gasoline,

(E) Documentation, calculations, emissions test dat a, or other information that establishes the amount of NOx, total ozone forming potential, a nd potency-weighted toxics associated with the producer's or importer's gasoli ne,

(F) The emission reduction strategy(ies) for the AE RP or third party AERP and the date(s) that the offsets will accrue and expire for each strategy,

(G) The producer's or importer's market share for t he fuel produced under the AERP or third party AERP,§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 89 (H) Demonstration that the emission reduction strat egy(ies) in the AERP or third party AERP will result in equivalent or better emission b enefits for NOx, total ozone forming potential, and potency-weighted toxics than would be achieved through elimination of emissions associated with permeation from the gasoline for the same affected region and for the period the AERP or thir d party AERP will be in effect, during and outside the RVP regulatory control perio ds in section 2262.4(b)(2)

,

(I) Demonstration that the emission reductions are achieved in the general region where the fuel is sold,

(J) The proposed recordkeeping, reporting, monitori ng, and testing procedures that the producer or importer plans to use to demonstrate co ntinued compliance with the AERP or third party AERP and achievement of each in crement of progress toward compliance,

(K) Adequate enforcement provisions,

(L) The projected volume of each final blend of Cal ifornia gasoline subject to the AERP or third party AERP during the period the AERP or t hird party AERP will be in effect,

(M) The period that the AERP or third party AERP wi ll be in effect,

(N) A compliance plan that includes increments of p rogress (specific events and dates) that describe periodic, measurable steps toward com pliance during the proposed period of the AERP or third party AERP,

(O) The date by which the producer or importer plan s to discontinue using the AERP or third party AERP,

(P) A statement, signed by a legal representative f or the producer or importer that all information submitted with the AERP or third party AERP application is true and

correct,

(Q) The producer's or importer's agreement to be bo und by the terms of the AERP or third party AERP, and

(R) In the case of a third party AERP, all of the a bove including all of the following:

1. The third party's name, address, phone number, a nd contact information,§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 90

2. Documentation of the contract or agreement betwe en the third party and the producer or importer,

3. Documentation of the amount of NOx, total ozone forming potential, and potencyweighted toxics (reported as tons/day and percentag e of the total tons/day) from the producer's or importer's gasoline that will be offset by the third party AERP,

4. A list of all AERPs and third party AERPs that c urrently apply to the producer or importer,

5. A statement, signed by a legal representative fo r the third party that all information submitted with the third party AERP application is true and correct, and

6. The third party's agreement to be bound by the t erms of the third party AERP.

(3) Emission reduction calculations demonstrating e quivalence between the AERP or third party AERP and elimination of the emissions associa ted with permeation from the gasoline shall only include NOx, total ozone formin g potential, and potency-weighted toxics emissions from California gasoline sold or s upplied in California.

(4) A producer or importer wishing to participate i n an AERP may include one or more production facilities or import facilities, but the producer or importer shall only include such facilities that the producer or importer owns or operates under their direct control. A third party wishing to participate in a third party AERP may include one or more production facilities or import facilities, but the third party shall only include such facilities with which the third party has a contrac t or agreement to offset emissions associated with permeation.

(5) The emission reduction associated with the AERP or third party AERP must be from combustion related sources or gasoline related sour ces.

(6) AERPs and third party AERPs may include, but ar e not limited to:

(A) Vehicle scrappage,

(B) Offsetting emissions with lower emitting diesel fuel batches,

(C) Incentive grants for cleaner-than-required engi nes, equipment and other sources of pollution providing early or extra emission reducti ons.

(7) Emission reductions included in an AERP or thir d party AERP shall not include reductions that are otherwise required by any local , State, or federal rule, regulation, or§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 91 statute, or that are achieved or estimated from equ ipment not located within the region associated with the AERP or third party AERP, or th at are claimed under section 2265.1

, or that are claimed under another program, such as the Voluntary Accelerated Vehicle Retirement or Carl Moyer program, or the result of standard business practices that the producer or importer would have done without the AE RP or third party AERP.

(8) The producer or importer subject to an approved AERP or third party AERP shall maintain all records required to verify compliance with the provisions of the AERP or third party AERP in a manner and form specified by the Executive Officer in the approved AERP or third party AERP. Required records may include, but are not limited to, volume of California gasoline sold, offered, or supplied to which the AERP or third party AERP applies, and/or emissions test results. Such records shall be retained for a period of not less than five (5) years and shall be submitted to the Executive Officer within 20 days in the manner specified in the appro ved AERP or third party AERP and upon request by the Executive Officer.

(9) Prior to selling, offering, or supplying a batc h of California gasoline with emissions associated with permeation, the producer or importe r shall first have established sufficient offsets for the applicable emissions ass ociated with permeation. With the exception of offsets from vehicle scrappage and inc entive grants for cleaner-thanrequired engines, equipment and other sources of po llution, offsets shall expire at midnight on the day they accrued.

(c) Application Process.

(1) Applications for an AERP or third party AERP sh all be submitted in writing to the

Executive Officer for evaluation.

(2) The application shall be accompanied by a fee o f $6,700.00 to cover the costs of processing the AERP or third party AERP application . If the applicant withdraws the application before the 30-day first comment period, $4,100.00 of the fee shall be

refunded.

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

(4) The Executive Officer will send a notice to sub scribers of the Fuels listserv that a person has requested the Executive Officer consider a requ est for an AERP or third party AERP. The Executive Officer shall also provide a copy of all such documents to each person who has requested copies of the documents. Collecti vely, those persons on the Fuels listserv and those persons who have requested copie s of the documents shall be treated as interested parties.§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 92 (5) After an AERP or third party AERP application h as been received and deemed complete, the Executive Officer shall provide a 30-day public comment period to receive comments on any element of the AERP or third party AERP appl ication. Any public comment addressing whether the Executive Officer should app rove or disapprove the AERP or third party AERP application shall be based on the contents and merits of the application. No comment received by the Executive Officer after the 30-day period will be

considered. The Executive Officer shall send to sub scribers of the Fuels listserv, and mail to those interested parties who have requested copi es by mail, of the following:

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

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

(C) The address of the AERP internet site where the application is posted; and.

(D) Where and how to submit comments.

The Executive Officer shall post on the AERP intern et site, send to subscribers of the Fuels listserv, and mail to those interested partie s who have requested copies by mail, notification of public comments received during the 30-day comment period.

(6) The Executive Officer may hold a public hearing to accept public comments or decide the merits of the application.

(7) Final Action.

After the public comment period ends, the Executive Officer may take final action to either approve or deny the AERP or third party AERP application. The Executive Officer shall notify the applicant, post on the ARB interne t site, send to subscribers of the Fuels listserv, and mail to those interested parties who have requested copies by mail, of the

final action.

(8) Notification to the Executive Officer of Change s to information in the AERP or third party AERP application. The applicant shall notify the Executive Officer in writing within 30 days upon learning of any information tha t would alter any information provided in the AERP or third party AERP applicatio n.

(d) Revocation or Modification of an Approved AERP or t hird party AERP.

(1) With 30-days written notice to the producer or importer, or in the case of a third party AERP, the third party, the Executive Officer may re voke or modify, as needed, an§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 93 approved AERP or third party AERP in any of the fol lowing situations:

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

(B) The Executive Officer has reason to believe tha t an approved AERP or third party AERP has been granted that no longer meets the crit eria or requirements for an AERP or third party AERP,

(C) The producer or importer, or in the case of a t hird party AERP the third party, demonstrates that it can no longer comply with the requirements of the approved AERP or third party AERP in its current form,

(D) The producer or importer, or in the case of a t hird party AERP the third party,

demonstrates to the satisfaction of the Executive O fficer that 1. the continuation of the AERP or third party AERP will result in economi c hardship to the producer or importer, or in the case of a third party AERP, the third party, 2. the producer or importer, or in the case of a third party AERP the third party, submits a substitute plan in accordance with section 2265.5(c) to offset any emissions not otherwise offset by the AERP or third party AERP, and 3. the Executi ve Officer approves the substitute plan, or

(E) The producer's or importer's facility modificat ions and/or other means of eliminating emissions associated with permeation from its gasol ine have been completed.

(2) The Executive Officer shall notify the applican t, post on the AERP internet site, send to subscribers of the Fuels listserv, and mail to thos e interested parties who have requested copies by mail, of a revocation or modification of an approved AERP or third party

AERP.

(3) Any violations incurred pursuant to subsection (e) shall not be cancelled or in any way affected by the subsequent cancellation or modifica tion of an AERP or third party AERP.

(e) Additional prohibitions.

(1) No person may sell, offer, or supply California gasoline that creates emissions associated with permeation unless the producer or importer, or in the case of a third party AERP, the third party has first been notified in writing by t he Executive Officer that the AERP or third party AERP application has been approved.

(2) Failure to meet any requirement of this section or any condition of an approved AERP or third party AERP shall constitute a single, separat e violation of this article for each day until such requirement or condition is satisfied.§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 94 (3) False reporting of any information contained in an AERP or third party AERP application, or any supporting documentation or ame ndments thereto, shall constitute a single, separate violation of the requirements of t his article for each day that the approved AERP or third party AERP is in effect.

(4) Any net exceedance at any given time, taking in to consideration the amount of offsets and the gasoline produced under the AERP or third party AERP, of NOx, total ozone forming potential, or potency-weighted toxics during the pe riod the AERP or third party AERP is in effect shall constitute a single, separate viola tion of the requirements of this article for each day the California gasoline subject to the AER P or third party AERP is sold, supplied, or offered in California.

(5) Any of the following actions shall each constit ute a single, separate violation of the requirements of this article for each day after the applicable deadline until the requirement or condition is satisfied:

(A) Failure to report data or failure to report dat a accurately in writing to the Executive Officer when required by this section or the approv ed AERP or third party AERP;

(B) False reporting of any information submitted to the Executive Officer for determining compliance with the AERP or third party AERP;

(C) Failure to completely offset emissions, pursuan t to any offset reconciliation requirements in the AERP or third party AERP, durin g the period the AERP or third party AERP is in effect;

(D) Sale, supply, or offer of volumes of California gasoline which purportedly complies with the AERP or third party AERP in excess of the approved AERP or third party

AERP.

(6) Offsets shall not include offsets or other redu ctions that are otherwise required by any local, State, or federal rule, regulation, or statu te, or that are achieved or estimated from California gasoline not produced in the same air ba sin as the gasoline associated with the AERP or third party AERP, or that are claimed under section 2265.1

.

(f) A cause of action against the producer, importe r, or third party under this section shall be deemed to accrue on the date(s) when the records es tablishing a violation of the AERP or third party AERP are received by the Executive Offi cer.

(g) Transferability.

Rights to use, or protection under, the AERP or thi rd party AERP are nontransferable, unless such transfer is approved in writing by the Executi ve Officer.§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 95 (h) Notification of final blends associated with an AER P or third party AERP

(1) Except as otherwise provided, for each final bl end, the producer or importer shall notify the Executive Officer in writing, for receipt by th e Executive Officer before the start of physical transfer of the gasoline from the producti on facility or import facility, and in no case less than 12 hours before the producer or impo rter either completes physical transfer or commingles the final blend, with the following i nformation:

(A) The company name, address, phone number, and co ntact information,

(B) The production facility or import facility name , batch name, number, or other identification, the blend identity, grade of Califo rnia gasoline, the location (with sufficient specificity to allow ARB inspectors to l ocate and sample the gasoline; this shall include, but is not limited to, the name of t he facility, address, and identification of the tank), and other information that uniquely i dentifies the California gasoline subject to the AERP or third party AERP,

(C) The estimated volume (in barrels),

(D) The identity of the AERP or third party AERP, w hich was approved by the Executive Officer and the NOx, total ozone forming potential, and potency-weighted toxics emission limits stated in that plan,

(E) The PM alternative specifications for RVP, sulf ur content, benzene content, aromatics content, olefins content, T50, T90, and oxygen cont ent,

(F) Documentation, calculations, emissions test dat a, and other information that establishes the amount of NOx, total ozone forming potential, and potency-weighted

toxics associated with the final blend of Californi a gasoline to which the AERP or third party AERP applies,

(G) A statement, signed by a legal representative f or the producer or importer that all

information submitted with the notification is true and correct, and

(H) Within 24 hours after the start of the physical transfer, the date and time of the start of physical transfer from the production facility o r import facility.

(2) A producer or importer may report an actual vol ume that is less than the estimated volume, as long as notification of the actual volum e is received by the Executive Officer no later than 48 hours after completion of the phys ical transfer of the final blend from the production facility or import facility. If notifica tion of the actual volume is not timely received by the Executive Officer, the reported est imated volume shall be deemed the§ 2265.5

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 96 reported actual volume. If the actual volume is lar ger than initially estimated, the producer or importer shall revise the reported esti mated volume by notifying the Executive Officer no later than 24 hours after comp letion of the physical transfer of the final blend from the production facility or import facility.

(i) Notification of permeation offsets

(1) Vehicle scrappage. The producer or importer sha ll notify the Executive Officer in writing as provided in the AERP or third party AERP with al l documentation, calculations, emissions test data, and other information that est ablishes the amount of NOx, total ozone forming potential, and potency-weighted toxics asso ciated with the vehicle scrappage and the date(s) the offsets accrued.

(2) Fuels. Except as otherwise provided, the produc er or importer shall notify the Executive Officer in writing as provided in the AERP or third party AERP, for receipt by the Executive Officer before the start of physical tran sfer of the gasoline from the production facility or import facility, and in no case less th an 12 hours before the producer or importer either completes physical transfer or comm ingles the final blend, with the

information in subsection (h)(1) as they relate to other batches of California gaso line or

diesel fuel used to offset the emissions associated with permeation.

(3) Incentive grants. The producer or importer shal l notify the Executive Officer in writing as provided in the AERP or third party AERP with all d ocumentation, calculations, emissions test data, and other information that est ablishes the amount of NOx, total ozone forming potential, and potency-weighted toxics asso ciated with the incentive grants for cleaner-than-required engines, equipment and other sources of pollution providing early or extra emission reductions and the date(s) the of fsets accrued.

(4) Other reduction strategies. The producer or imp orter shall notify the Executive Officer in writing as provided in the AERP or third party AERP with all documentation, calculations, emissions test data, and other inform ation that establishes the amount of NOx, total ozone forming potential, and potency-wei ghted toxics associated with the reduction strategy and the date(s) the offsets accr ued.

§ 2266. Certified Gasoline Formulations Resulting i n Equivalent Emission Reductions Based on Motor Vehicle Emissions Testing.

(a) Certification of test-certified alternative gasolin e formulations. Following application by a producer or importer, the executive officer may cer tify, and identify alternative specifications for, a test-certified alternative gasoline formulat ion pursuant to the Air Resources Board's "California Procedures for Evaluating Alternative S pecifications for Gasoline Using Vehicle Emissions Testing," as last amended April 25, 2001, which is incorporated herein by§ 2266

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 97 reference. Notwithstanding section 2265.5(a) , a producer or an importer that produces gasoline that has elected to be subject to a test-c ertified alternative gasoline formulation

pursuant to section 2266 shall offset its emissions associated with permeat ion by complying

with sections 2265.5(b)-(i)

.

(b) Prohibited activities regarding test-certified alte rnative gasoline formulations.

(1) No producer or importer shall sell, offer for s ale, supply, or offer for supply from its production facility or import facility California g asoline which has been reported

pursuant to section (c) as a test-certified alternative gasoline formulati on, if it fails to conform with any of the alternative specifications identified in the certification order for the formulation, as determined in accordance with t he test methods identified in the

certification order.

(2) A producer or importer who has reported a final blend of gasoline as a test-certified alternative gasoline formulation shall not be subje ct to section 2262.3(b) or (c)

, section 2262.4(b) , and section 2262.5(c)

.

(3) A producer or importer may not elect to sell or supply from its production or import facility a final blend of California gasoline as a test-certified alternative gasoline formulation if the producer or importer is subject to any outstanding requirements to provide offsets at the same production or import fa cility pursuant to section 2264(c)

.

(4) A producer or importer that produces gasoline m ay not elect to sell or supply from its production facility or import facility a final blen d of California gasoline as a test-certified alternative gasoline formulation if the producer or importer is subject to any outstanding requirements to provide offsets at the same product ion facility or import facility pursuant

to section 2265.1(c) or 2265.5

.

(5) An importer that does not produce gasoline shal l not sell, offer for sale, supply, or offer for supply California gasoline if the gasoline crea tes emissions associated with permeation.

(c) Notification regarding sales and supplies of a test -certified alternative gasoline formulation. A producer or importer intending to sell or supply a final blend of California gasoline from its production facility or import facility as a test-ce rtified alternative gasoline formulation shall notify the executive officer in accordance with thi s section (c). The notification shall identify the

final blend and the identification name of the test -certified alternative gasoline formulation. The notification shall be received by the executive off icer at least 12 hours before start of physical transfer of the final blend from the production or import facility. A producer or importer intending to have a series of its final blends be a specific test-certified alternative gasoline formulation may enter into a protocol with the exec utive officer for reporting such blends as long as the executive officer reasonably determines the reporting under the protocol would provide at

least as much notice to the executive officer as no tification pursuant to the express terms of this§ 2266

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 98 section (c).

§ 2266.5. Requirements Pertaining to California Ref ormulated Gasoline Blendstock for Oxygen Blending (CARBOB) and Downstream Blending.

(a) Application of the California gasoline standards to CARBOB.

(1) Applicability of standards and requirements to CARBOB. All of the standards and requirements in sections 2261

, 2262

, 2262.3

, 2262.4

, 2262.5(a)

, (b)

, (c) and (e)

, 2262.6

, 2264

, 2264.2

, 2265

, 2266

, 2267

, 2268

, 2270

, 2271 and 2272 pertaining to California gasoline or transactions involving California gasol ine also apply to CARBOB or transactions involving CARBOB. Whenever the term "C alifornia gasoline" is used in the sections identified in the preceding sentence, the term means "California gasoline or CARBOB." Whenever the term "gasoline" is used in section 2265(b)(1) , the term means "California gasoline or CARBOB."

(2) Determining whether a final blend of CARBOB com plies with the standards for California gasoline.

(A) General.

1. Applicability. This section (a)(2) governs the d etermination of whether a final blend of CARBOB complies with the standards for Cal ifornia gasoline that apply when the gasoline is sold or supplied from the prod uction or import facility at which it was produced or imported. Section (a)(6) governs the determination of whether downstream CARBOB that has already been sup plied from its production or import facility complies with the applicable cap limits for California gasoline.

2. Where a producer or importer has designated a fi nal blend as CARBOB and has complied with all applicable provisions of this section 2266.5 , the properties of the final blend for purposes of compliance with sections 2262

, 2262.3

, 2262.4

, 2262.5

, 2262.6

, 2265 and 2266 shall be determined in accordance with section (a)(2)(B) or (a)(2)(C) as applicable.

3. If the producer or importer has not complied wit h all applicable provisions of this

section 2266.5 , the properties of the final blend for purposes of the producer's or importer's compliance with the limits for sulfur, b enzene, aromatic hydrocarbons, olefins, T50, T90, and oxygen required by sections 2262.3

, 2262.5

, 2265 and

2266 shall be determined without using the CARBOB Model or adding oxygenate to the gasoline, and compliance with the flat limit s for Reid vapor pressure and oxygenates required by sections 2262.4

, 2262.6

, 2265 and 2266 shall be§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 99

determined in accordance with section (a)(2)(B) or (a)(2)(C) as applicable.

(B) Determining whether a final blend of CARBOB com plies with the standards for California gasoline by use of the CARBOB Model.

1. A producer or importer may elect to have the CAR BOB model used in determining whether a final blend designated as CARBOB complies with the standards applicable to California gasoline, by providing the notice in section (b)(1)(C) . In this case, the CARBOB limits for the final blend sh all be determined in accordance with the "Procedures for Using the Calif ornia Model for California Reformulated Gasoline Blendstocks for Oxygenate Ble nding (CARBOB)," as adopted April 25, 2001, last amended August 7, 2008 , which is incorporated by reference herein. The CARBOB's compliance with the assigned CARBOB limit for a property shall constitute compliance with the corresponding finished gasoline limit - be it a section 2262 flat limit, PM flat limit, TC limit, or (if no designated alternative limit has been established) section 2262 or PM averaging limit. In addition, where the producer or importer has elected to use the CARBOB model for a given final blend that is not being tra nsferred from its production or import facility during the Reid vapor pressure cont rol period for that facility set

forth in section 2262.4(a) , the final blend must have a Reid vapor pressure n o lower than the value used in the T50 CARBOB model.

2. Notwithstanding section (a)(2)(B)1. , where a final blend of CARBOB is sampled and analyzed by a state board inspector in accordan ce with section 2263 using the methodology in (a)(2)(C) , the results may be used to establish a violation of applicable standards for California gasoline.

(C) Determining whether a final blend of CARBOB com plies with the standards for California gasoline by oxygenate blending and testi ng. Except as otherwise provided

in section (a)(2)(B) , the properties of a final blend of CARBOB shall b e determined for purposes of compliance with sections 2262

, 2262.3

, 2262.4

, 2262.5

, 2262.6

, 2265

, and 2266 by adding the specified type and amount of oxygena te to a representative sample of the CARBOB and determining the properties and characteristics of the resulting gasoline in accordance with an applicable test method identified in section 2263(b) or permitted under section 2263(c) . Where the producer or importer has in

accordance with section (b)(1)(E) designated a range for oxygen from denatured ethanol of 1.8 wt.% to 2.2 wt.% (or a range that is within 1.8 wt.% and 2.2 wt.% and includes 2.0 wt.%), denatured ethanol equal to 5.7 vol. % of the blended volume shall be added; where the designated range for oxygen fro m denatured ethanol is 2.5 wt.% to 2.9 wt.% (or is within 2.5 wt.% and 2.9% and inc ludes 2.7 wt.%), denatured ethanol equal to 7.7 vol.% of the blended volume sh all be added; and where the designated range for oxygen from denatured ethanol is 3.3 wt.% to 3.7 wt.% (or is within 3.3 wt.% and 3.7 wt.% and includes 3.5 wt.%) , denatured ethanol equal to 10.0

vol.% of the blended volume shall be added. In all other cases where the designated range for oxygen from denatured ethanol is no great er than 0.4 wt.%, the amount of§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 100

denatured ethanol added shall be the volume percent that results in an oxygen content at the midpoint of the range of oxygen, based on th e following equation:

Vol.% Denatured Ethanol = 620 ÷ [(218.8 ÷ wt.% oxyg en) - 0.40]

Where the producer or importer has in accordance wi th section (b)(1)(E) designated a range of amounts of oxygen that is greater than 0.4 wt.%, or an oxygenate other than denatured ethanol, the oxygenate shall be added in an amount that results in an oxygen content within 0.2 wt.% of the designated mi nimum oxygen level.

(D) Characteristics of denatured ethanol used in de termining whether a final blend of CARBOB complies with the standards for California g asoline.

1. Default denatured ethanol characteristics on or after December 31, 2003 when the CARBOB Model is used. Except as provided in section (a)(2)(D)3. , where a producer or importer has elected to use the CARBOB Model for a final blend of CARBOB supplied from its production or import facil ity on or after December 31, 2003, the following default denatured ethanol s pecifications shall be specified

for the CARBOB Model:

Sulfur content: 10 parts per million Benzene content: 0.06 volume percent Olefin content: 0.5 volume percent Aromatic hydrocarbon content: 1.7 volume percent

2. Default denatured ethanol characteristics on or after December 31, 2003 when the CARBOB Model is not used. Except as provided in section (a)(2)(D)3. , where a producer or importer has not elected to use the CAR BOB Model, denatured ethanol used as the oxygenate must have the followi ng properties in determining whether CARBOB complies with the standards applicab le to California gasoline when it is supplied from the production facility or import facility on or after December 31, 2003:

Sulfur content: 3-10 parts per million Benzene content: 0-0.06 volume percent Olefin content: 0-0.5 volume percent Aromatic hydrocarbon content: 0-1.7 volume percent

3. Producer- or importer-specified characteristics of denatured ethanol used in determining whether a final blend of CARBOB complie s with the standards for§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 101

California gasoline.

a. With respect to a final blend of CARBOB supplied from its production or import facility prior to December 31, 2003, the pro ducer or importer must specify the properties of the oxygenate used in det ermining whether the final blend of CARBOB complies with the applicable Califo rnia gasoline standards, by providing the notice in section (b)(1)(D) . With respect to a final blend of CARBOB supplied from its production or imp ort facility on or after December 31, 2003, the producer or importer may ele ct to specify the properties of the oxygenate in accordance with the preceding sentence. Where the producer or importer has elected to use the CAR BOB model in connection with the final blend, the maximum value for each pr operty identified in the section (b)(1)(D) notification shall be used for the CARBOB Model. W here the producer or importer has not elected to use the CARBOB model in connection with the final blend, the oxygenate used in oxygenate blending and testing in accordance with section (a)(2)(C)1. must not exceed the maximum value for each property identified in the section (b)(1)(D) notification; that oxygenate's specifications for each property may be under the maximum value for each property identified in the section (b)(1)(D) notification by no more than the following:

Sulfur content: 5 parts per million Benzene content: 0.06 volume percent Olefin content: 0.1 volume percent Aromatic hydrocarbon content: 1.0 volume percent

b. Maintaining oxygenate samples for use in complia nce testing. A producer or importer who is specifying the properties of the ox ygenate used in a final blend of CARBOB in accordance with the preceding section (a)(2)(D)3.a. must maintain at the production or import facility, while the final blend is at the facility, oxygenate meeting the required specif ications in quantities that are sufficient to enable state board inspectors to use the oxygenate in compliance determinations.

(E) Protocol for determining whether a final blend of CARBOB complies with the standards for California gasoline. The executive of ficer may enter into a written protocol with any individual producer or importer f or the purpose of specifying a alternative method for determining whether a final blend of CARBOB complies with the standards for California gasoline, as long as t he executive officer reasonably determines that application of the protocol is not less stringent or enforceable than application of the express terms of section (a)(2)(A)-(D) . Any such protocol shall include the producer's or importer's agreement to b e bound by the terms of the§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 102

protocol.

(3) Calculating the volume of a final blend of CARB OB. Where a producer or importer has designated a final blend as CARBOB and has complied with all applicable provisions of

this section 2266.5 , the volume of the final blend shall be calculated for all purposes

under section 2264 by adding the minimum designated amount of the oxy genate having the smallest volume designated by the producer or i mporter. If the producer or importer has not complied with any applicable provisions of this section 2266.5 , the volume of the final blend for purposes of the refiner or producer 's compliance with sections 2262

, 2262.3

, 2262.4

, 2262.5

, 2262.6

, 2265 and 2266 shall be calculated without adding the amount of oxygenate to the CARBOB.

(4) Specifications for a final blend of CARBOB when the CARBOB model is not being used. A producer or importer who has not elected to use t he CARBOB model pursuant to section (a)(2)(B) with regard to a final blend of CARBOB may not sel l, offer for sale, supply or offer for sale that final blend of CARBOB from its production facility or import facility where the sulfur, benzene, olefin or aroma tic hydrocarbon content of the CARBOB, when multiplied by (1 minus the designated maximum volume percent, expressed as a decimal fraction, that the oxygenate will represent after it is added to the CARBOB), results in a sulfur, benzene, olefin or ar omatic hydrocarbon content value exceeding the applicable limit for that property.

(5) Assignment of designated alternative limits for CARBOB and for the oxygenated California gasoline where the producer or importer has elected to use the CARBOB

model.

(A) Applicability. This section (a)(5) applies wher e a producer or importer has elected to have the CARBOB model apply in connection with a fi nal blend of CARBOB which is also subject to an averaging compliance option o r a PM averaging compliance option for one or more properties.

(B) Assignment of CARBOB designated alternative lim it. The producer or importer may assign a CARBOB designated alternative limit for th e final blend of CARBOB by satisfying the notification requirements of section (a)(5)(D) . In no case shall a CARBOB designated alternative limit be less than th e sulfur, benzene, olefin or aromatic hydrocarbon content, or T90 or T50, of the final blend shown by the sample and test of the CARBOB conducted pursuant to section 2270 . The CARBOB designated alternative limit shall be treated as th e designated alternative limit under section 2262.3(c)(2) , and a violation of section 2262.3(c)(2) will exist when the CARBOB exceeds the CARBOB designated alternative li mit.

(C) Determining the designated alternative limit fo r the final blend after the CARBOB is oxygenated. Whenever a producer or importer has ass igned a designated alternative limit for a final blend of CARBOB, the designated a lternative limit for the final blend§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 103

after the CARBOB is oxygenated shall be determined in accordance with the "Procedures for Using the California Model for Cali fornia Reformulated Gasoline Blendstocks for Oxygenate Blending (CARBOB)," as ad opted April 25, 2001, last amended August 7, 2008, which is incorporated by re ference herein. This will be the final blend's designated alternative limit for purp oses of compliance with sections 2262.3(c)(3) and 2264(b) and (c)

.

(D) Notification. The producer or importer shall no tify the executive officer of the CARBOB designated alternative limit, the designated alternative limit for the final blend after it is oxygenated, and all other informa tion identified in section 2264(a)(2)(A) , within the time limits set forth in section 2264(a)(2)(A) and subject to section 2264(a)(3) and (4)

.

(6) Determining whether downstream CARBOB complies with the cap limits for California gasoline.

(A) Determining whether downstream CARBOB complies with the cap limits for California gasoline through the use of CARBOB cap l imits derived from the CARBOB Model. Whenever downstream CARBOB designated for ethanol blending has already been supplied from its production or im port facility, the CARBOB's compliance with the cap limits for California gasol ine may be determined by applying the CARBOB cap limits in the following table:§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 104 

### CARBOB Cap Limits

Property

CaRFG2 CaRFG3

Reid Vapor Pressure 1

(pounds per square inch) 5.78 5.99

66 2

32 2 Sulfur Content
(parts per million by weight) 89

21 2

Benzene Content
(percent by volume) 1.33 1.22

Aromatics Content
(percent by volume) 33.1 38.7

Olefins Content
(percent by volume) 11.1 11.1

232 3 232 3 T50
(degrees Fahrenheit) 237 3 237 3

T90
(degrees Fahrenheit) 335 335

1 The Reid vapor pressure standards apply only durin g the warmer weather months identified in section

2262.4

.

2 The CaRFG Phase 3 CARBOB cap limits for sulfur are phased in starting December 31, 2003, December 31, 2005, and December 31, 2011, in accord ance with section 2261(b)(1)(A)

.

3 The first number applies to CARBOB that is subject to the Reid vapor pressure standard pursuant to

section 2262.4 , and the second number applies to CARBOB that is n ot subject to the Reid vapor pressure standard.

(B) Determining whether downstream CARBOB complies with the cap limits for California gasoline by oxygenate blending and testi ng. Whenever downstream CARBOB designated for oxygenate blending has alread y been supplied from its production or import facility, the CARBOB's complia nce with the cap limits for California gasoline may be determined by adding the specified type and amount of oxygenate to a representative sample of the CARBOB and determining the properties and characteristics of the resulting gasoline in ac cordance with an applicable test

method identified in section 2263(b) or permitted under section 2263(c) . Denatured ethanol used as the oxygenate must have the propert ies set forth in section (a)(2)(D)2. Where the designated range for oxygen from denature d ethanol is 1.8 wt.% and 2.2 wt.% (or is within 1.8 wt.% and 2.2 wt.% and includ es 2.0 wt.%), denatured ethanol equal to 5.7 vol.% of the blended volume shall be a dded; where the designated range§ 2266.5(a)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 105

for oxygen from denatured ethanol is 2.5 wt.% and 2 .9 wt.% (or is within 2.5 wt.% and 2.9 wt.% and includes 2.7 wt.%), denatured etha nol equal to 7.7 vol.% of the blended volume shall be added; and where the design ated range for oxygen from denatured ethanol is 3.3 wt.% to 3.7 wt.% (or is wi thin 3.3 wt.% and 3.7 wt.% and includes 3/5 wt.%), denatured ethanol equal to 10.0 vol.% of the blended volume shall be added. In all other cases where the design ated range for oxygen from denatured ethanol is no greater than 0.4 wt.%, the amount of denatured ethanol added shall be the volume percent that results in an oxyg en content at the midpoint of the range of oxygen, based on the following equation:

Vol.% Denatured Ethanol = 620 ÷ [(218.8 ÷ wt.% oxyg en) - 0.40]

Where the designated a range of amounts of oxygen i s greater than 0.4 wt.%, or an oxygenate other than denatured ethanol is designate d, the oxygenate shall be added in an amount that results in an oxygen content within 0.2 wt.% of the designated minimum oxygen level.

(C) Protocols. A person may enter into a protocol w ith the executive officer for the purpose of identifying more stringent specification s for the denatured ethanol used

pursuant to section (a)(6)(B) , or different CARBOB cap limits under section (a)(6)(A) , if the executive officer reasonably determines th at the specifications or cap limits are reasonably premised on the person's prog ram to assure that the denatured ethanol added to the CARBOB by oxygenate blenders w ill meet the more stringent specifications.

(b) Notification to ARB regarding the supply of CARBOB from the facility at which it was produced or imported.

(1) A producer or importer supplying a final blend of CARBOB from the facility at which the producer or importer produced or imported the CARBO B must notify the executive officer of the information set forth below, along w ith any information required under section 2265(a)(2) (for a PM alternative gasoline formulation), section 2265.1 (for a PM emissions offsetting formulation, applicable only t o producers and importers that produce gasoline), section 2265.5 (for an alternative emission reduction plan, appli cable only to producers and importers that produce gasoline), or 2266(c) (for a test-certified alternative gasoline formulation). The notification must be rec eived by the executive officer before the start of physical transfer of the final blend o f CARBOB from the production or import facility, and in no case less than 12 hours before the producer or importer either completes physical transfer or commingles the final blend.

(A) The identity and location of the final blend;

(B) The designation of the final blend as CARBOB;§ 2266.5(b)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 106 (C) If the producer or importer is electing to use the CARBOB model to determine whether the final blend complies with the standards applicable to California gasoline when it is supplied from the production facility or import facility, a statement of that

election and

1. Each of the CARBOB limits that will apply to the final blend for properties not subject to the averaging compliance option or the P M averaging compliance option; and

2. For any property subject to the averaging compli ance option or the PM averaging compliance option, the averaging or PM averaging li mit for the CARBOB (the CARBOB is subject to this limit only if no designat ed alternative limit is assigned to the CARBOB pursuant to section 2266.5(a)(5)(B) );

(D) If the producer or importer is specifying, purs uant to section (a)(2)(D)3. , the properties of the oxygenate to be added downstream by the oxygenate blender, a statement of that election, the type of oxygenate, and the oxygenate's specifications for the following properties:

Maximum sulfur content (nearest part per million by weight)

Maximum benzene content (nearest hundredth of a per cent by volume)

Maximum olefin content (nearest tenth of a percent by volume)

Maximum aromatic hydrocarbon content (nearest tenth of a percent by volume)

(E) The designation of each oxygenate type or types and amount or range of amounts to be added to the CARBOB, and the applicable flat lim it, PM alternative specification, designated emissions offsetting limit, or TC altern ative specification for oxygen. The amount or range of amounts of oxygenate to be added shall be expressed as a volume percent of the gasoline after the oxygenate is adde d, in the nearest tenth of a percent. For any final blend of CARBOB except one that is su bject to PM alternative specifications, designated emissions offsetting lim its, alternative emission reduction plan, or TC alternative specifications, the amount of oxygenate to be added must be such that the resulting California gasoline will ha ve a minimum oxygen content no lower than 1.8 percent by weight and a maximum oxyg en content no greater than 2.2 percent by weight. For a final blend of CARBOB that is subject to PM alternative specifications or designated emissions offsetting l imits, the amount or range of amounts of oxygenate to be added must be such that the resulting California gasoline has an oxygen content that meets the oxygen content PM alternative specification or designated emissions offsetting limits for the fina l blend. For a final blend of CARBOB that is subject to TC alternative specificat ions, the amount or range of§ 2266.5(b)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 107

amounts of oxygenate to be added must be such that the resulting California gasoline has an oxygen content that meets the oxygen content alternative specification for the

final blend.

(2) Applicability of notification to subsequent fin al blends. The notification a producer or importer provides pursuant to section (b)(1)(B)

, (C)

, (D) and (E) for a final blend of CARBOB shall apply to all subsequent final blends o f CARBOB or California gasoline supplied by the producer or importer from the same production or import facility until the producer or importer designates a final blend at th at facility as either (i) California gasoline rather than CARBOB, or (ii) CARBOB subject to a new notification made

pursuant to section (b)(1)

.

(3) Allowance of late notifications. If, through no intentional or negligent conduct, a producer or importer cannot report within the time period specified in (b)(1) above, the producer or importer may notify the executive offic er of the required data as soon as reasonably possible and may provide a written expla nation of the cause of the delay in reporting. If, based on the written explanation and the surrounding circumstances, the

executive officer determines that the conditions of this section (b)(3) have been met, timely notification shall be deemed to have occurre d.

(4) Protocols. The executive officer may enter into a written protocol with any individual producer or importer for the purpose of specifying how the requirements in section (b)(1) shall be applied to the producer's or importer's pa rticular operations, as long as the executive officer reasonably determines that applic ation of the regulatory requirements under the protocol is not less stringent or enforce able than application of the express

terms of section (b)(1) . Any such protocol shall include the producer's or importer's agreement to be bound by the terms of the protocol.

(c) [Reserved]

(d) Documentation required when CARBOB is transferred.

(1) Required Documentation. On each occasion when a ny person transfers custody or title of CARBOB, the transferor shall provide the transferee a document that prominently:

(A) States that the CARBOB does not comply with the standards for California gasoline without the addition of oxygenate,

(B) Identifies the applicable flat limit, PM altern ative specification, designated emissions offsetting limit, or TC alternative specification f or oxygen, and

(C) Identifies, consistent with the notification ma de pursuant to section (b) , the oxygenate type or types and amount or range of amounts that m ust be added to the CARBOB to§ 2266.5(d)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 108

make it comply with the standards for California ga soline. Where the producer or importer of the CARBOB has elected to specify the p roperties of the oxygenate

pursuant to section (b)(1)(D) , the document must also prominently identify the maximum permitted sulfur, benzene, olefin and aroma tic hydrocarbon contents - not

to exceed the maximum levels in the section (b)(1)(D) notification - of the oxygenate

to be added to the CARBOB.

(2) Compliance by pipeline operator. A pipeline ope rator may comply with this requirement by the use of standardized product codes on pipelin e tickets, where the code(s) specified

for the CARBOB is identified in a manual that is di stributed to transferees of the CARBOB and that sets forth all of the required info rmation for the CARBOB.

(e) Restrictions on transferring CARBOB.

(1) Required agreement by transferee. No person may transfer ownership or custody of CARBOB to any other person unless the transferee ha s agreed in writing with the

transferor that either:

(A) The transferee is a registered oxygenate blende r and will add oxygenate of the type(s) and amount (or within the range of amounts) designa ted in accordance with section (b) before the CARBOB is transferred from a final dist ribution facility, or

(B) The transferee will take all reasonably prudent steps necessary to assure that the CARBOB is transferred to a registered oxygen blende r who adds the type and amount (or within the range of amounts) of oxygenate desig nated in accordance with section (b) to the CARBOB before the CARBOB is transfered from a final distribution facility.

(2) Prohibited sales of CARBOB from a final distrib ution facility . No person may sell or supply CARBOB from a final distribition facility wh ere the type and amount or range of amounts of oxygenate designated in accordance with section (b) has not been added to

the CARBOB.

(f) Restrictions on blending CARBOB with other products

.

(1) Basic prohibition. No person may combine any CA RBOB that has been supplied from the facility at which it was produced or imported with any other CARBOB, gasoline, blendstock or oxygenate, except:

(A) The specified oxygenate.

1. The CARBOB may be blended with oxygenate of the type and amount (or within the range of amounts) specified by the producer or importer at the time the§ 2266.5(f)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 109

CARBOB was supplied from the production or import f acility.

2. Where ethanol is the specified oxygenate and spe cifications for the ethanol are identified in the product transfer document for the CARBOB pursuant to section 2266.5(d)(1)(C) , only ethanol meeting those specifications may be combined with

the CARBOB.

3. Where ethanol is the specified oxygenate and spe cifications for the ethanol are not identified, only ethanol meeting the standards in section 2262.9(a) may be

combined with the CARBOB.

(B) Identically-specified CARBOB. The CARBOB may be blended with other CARBOB for which the same oxygenate type, and the same amo unt (or range of amounts) of oxygen, was specified by the producer or importer a t the time the CARBOB was supplied from the production or import facility. Ho wever, where specifications for the

denatured ethanol to be added to the CARBOB have be en established pursuant to section 2266.5(a)(2)(D)3 , it may only be blended with other CARBOB for whic h the same denatured ethanol specifications have been set

.

(C) CARBOB specified for different oxygen level. Wh ere a person is changing from an initial to a new type of CARBOB stored in a storage tank at a terminal or bulk plant, and the conditions below are met; in this case, the CARBOB in the tank after the new type of CARBOB is added will be treated as that new type of CARBOB.

1. The change in service is for legitimate operatio nal reasons and is not for the purpose of combining the different types of CARBOB;

2. The initial and new CARBOBs are designated for b lending with different amounts (or ranges of amounts) of oxygen, and the change in oxygen content will not exceed 1.1 weight percent of the oxygenated gasolin e blend;

3. The volume of the new CARBOB that is added to th e tank is at least four times as large as the volume of the initial CARBOB in the ta nk, and

4. The sulfur content of the new CARBOB added to th e tank is no more than 12 parts per million.

(D) California gasoline not subject to RVP standard . Where a person is changing from California gasoline to CARBOB as the product stored in a storage tank at a terminal or bulk plant and the conditions below are met; in this case the product in the tank, pipe or manifold after the new product is added wil l be treated as the new type of product.§ 2266.5(f)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 110

1. The change in service is for legitimate operatio nal reasons and is not for the purpose of combining the California gasoline and CA RBOB and

2. The resulting blend of product in the tank is su pplied from the terminal or bulk plant during a time that it is not subject to the s tandards for Reid vapor pressure

under section 2262.4

.

(E) Limited amounts of California gasoline containi ng ethanol. A person may add California gasoline containing ethanol to CARBOB at a terminal or bulk plant if all of the following conditions are met, in which case the resulting mixture will continue to

be treated as CARBOB.

1. The gasoline is added to the CARBOB for one of t he following operational

reasons:

a. The gasoline resulted from oxygenating CARBOB at the terminal or bulk plant during calibration of oxygenate blending equipment; or

b. The gasoline resulted from the unintentional ove r- or under-oxygenation of CARBOB during the loading of a cargo tank truck at the terminal or bulk plant; or

c. The gasoline was pumped out of a gasoline storag e tank at a motor vehicle fueling facility for legitimate operational reasons

.

2. The non-oxygenate portion of the gasoline compli es with the applicable cap limits

for CARBOB in section 2266.5(a)(6)

.

3. The resulting mixture of CARBOB has an oxygen co ntent not exceeding 0.1 percent by weight.

a. The oxygen content of the mixture may be determi ned arithmetically by [i] using the volume of the CARBOB prior to mixing base d on calibrated tank readings, [ii] using the volume of the gasoline add ed based on calibrated meter readings, [iii] using the volume of the denat ured ethanol in the gasoline being added based on direct calibrated meter readin gs of the denatured ethanol if available, [iv] calculating weight percent oxyge n of the gasoline being added from volume percent denatured ethanol based o n the following formula:

(wt.% oxygen) ≈ 218.8/{[620/(vol.% deEtOH)] + 0.40},§ 2266.5(f)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 111

and [v] accounting for any oxygen in the CARBOB tan k due to previous additions of gasoline to the tank.

b. If the meter readings described in section 2266.5(f)(1)(E)3.a.[iii] are not available, the oxygen content of the mixture may be determined arithmetically by [i] using the volume of the CARBOB prior to mixi ng based on calibrated tank readings, [ii] using the volume of the gasolin e added based on calibrated meter readings, [iii] using the oxygen content of t he gasoline in weight percent based on sampling and testing of the gasoli ne for denatured ethanol content in accordance with methods specified in section 2263 , and [iv] accounting for any oxygen in the CARBOB tank due to previous additions of gasoline to the tank.

c. In making the determination described in section 2266.5(f)(1)(E)3.a. or b. , the oxygen content of the mixture shall be calculated b ased on the following

formula:

(wt.% oxygen) ≈ [(volume CARBOB)*(wt.% oxygen in CARBOB) + (volume gasoline)* (wt.% oxygen in gasoline] / [(vo lume CARBOB) + (volume gasoline)].

4. Prior to the mixing, the operator of the termina l or bulk plant notifies the executive officer of the following:

a. The identity and location of the facility at whi ch the mixing will take place;

b. The operational reason for adding the gasoline i nto the CARBOB;

c. The projected percentage oxygen content of the m ixture.

5. The terminal or bulk plant operator maintains fo r two years records documenting

the information identified in section 2266.5(f)(1)(E)4 , and makes them available to the executive officer upon request.

(2) Protocols.

(A) Protocols covering the changeover in service of a storage tank. Notwithstanding section (f)(1) , the executive officer may enter into a written pr otocol with any person to identify conditions under which the person may l awfully combine CARBOB with California gasoline or other CARBOB during a change over in service of a storage tank for a legitimate operational business reason. The executive officer may only enter into such a protocol if he or she reasonably determines that commingling of the two products will be minimized as much as is reason ably practical. Any such protocol§ 2266.5(f)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 112

shall include the person's agreement to be bound by the terms of the protocol.

(B) Protocols for blending transmix into CARBOB. No twithstanding section (f)(1) , the executive officer may enter into a written protocol with any person to identify conditions under which the person may lawfully blen d transmix into CARBOB which has been supplied from its production or import fac ility. The executive officer may enter into such a protocol only if he or she reason ably determines that alternatives to the blending are not practical and the blending wil l not significantly affect the properties of the CARBOB gasoline into which the tr ansmix is added. Any such protocol shall include the person's agreement to be bound by the terms of the protocol.

(C) Protocols In Other Situations. Notwithstanding section (f)(1) , the executive officer may enter into a written protocol with any person t o identify conditions under which the person may lawfully add California gasoline or other CARBOB to CARBOB in a storage tank at a terminal or bulk plant in situati ons other than those identified in sections 2266.5(f)(1)(C)

, (D) , or (E) , or (f)(2)(A) or (B) . The executive officer may enter into such a protocol only if he or she reason ably determines that alternatives to the activity are not practical and the blending wil l not significantly affect the properties of the CARBOB into which the gasoline or CARBOB is added. The protocol shall include any of the conditions in section 2266.5(f)(1)(E) that the executive officer determines are necessary and appr opriate. Any such protocol shall include the person's agreement to be bound by the t erms of the protocol.

(g) Requirements for oxygenate blenders.

(1) Registration and Certification.

(A) Registration. Any oxygen blender must register with the executive officer by March 1, 1996, or at least 20 days before blending oxygen ates with CARBOB, whichever occurs later. Thereafter, an oxygenate blender must register with the executive officer annually by January 1. The registration must be add ressed to he attention of the Chief, Compliance Division, California Air Resources Board , P.O. Box 2815, Sacramento, CA, 95812.

(B) Required contents of registration. The registra tion must include the following:

1. The oxygen blender's contact name, telephone num ber, principal place of business which shall be a physical address and not a post of fice box, and any other place of business at which company records are maintained.

2. For each of the oxygen blender's oxygenate blend ing facilities, the facility name, physical location, contact name, and telephone numb er.§ 2266.5(g)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 113 (C) Issuance of certificate. The executive officer shall provide each complying oxygen blender with a certificate of registration complian ce no later than June 30. The

certification shall be effective from no later than July 1, through June 30 of the following year. The certification shall constitute the oxygen blender's certification pursuant to Health and Safety Code section 43026.

(D) Submittal of updated information. Any oxygen bl ender must submit updated registration information to the executive officer a t the address identified in section (g)(1)(A) within 30 days of any occasion when the registrati on information previously supplied becomes incomplete or inaccurat e.

(2) Requirement to add oxygenate to CARBOB. Wheneve r an oxygenate blender receives CARBOB from a transferor to whom the oxygenate blen der has represented that he/she will add oxygenate to the CARBOB, the oxygenate ble nder must add to the CARBOB oxygenate of the type(s) and amount (or within the range of amounts) identified in the documentation accompanying the CARBOB. If the docum entation identifies the permitted maximum sulfur, benzene, olefin and aroma tic hydrocarbon contents of the oxygenate, the oxygenate blender must add an oxygen ate that does not exceed the maximum permitted levels.

(3) Additional requirements for terminal blending. Any oxygenate blender who makes a final blend of California reformulated gasoline by blendi ng any oxygenate with any CARBOB in any gasoline storage tank, other than a truck us ed for delivering gasoline to retail outlets or bulk purchaser-consumer facilities, shal l, for each such final blend, determine the oxygen content and volume of the final blend pr ior to its leaving the oxygen blending facility, by collecting and analyzing a representat ive sample of gasoline taken from the final blend, using methodology set forth in section 2263

.

(h) Downstream blending of California gasoline with non oxygenate blendstocks.

(1) Basic prohibition. No person may combine Califo rnia gasoline which has been supplied from a production or import facility with any nonox ygenate blendstock, other than vapor recovery condensate, unless the person can affirmat ively demonstrate that (1) the blendstock that is added to the California gasoline meets all of the California gasoline standards without regard to the properties of the g asoline to which the blendstock is added, and (2) the person meets with regard to the blendstock all requirements in this subarticle applicable to producers of California ga soline.

(2) Exceptions.

(A) Protocols. Notwithstanding section (h)(1) , the executive officer may enter into a written protocol with any person to identify condit ions under which the person may lawfully blend transmix into California gasoline wh ich has been supplied from its production or import facility. The executive office r may only enter into such a§ 2266.5(h)

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 114

protocol if he or she reasonably determines that al ternatives to the blending are not practical and the blending will not significantly a ffect the properties of the California gasoline into which the transmix is added. Any such protocol shall include the person's agreement to be bound by the terms of the protocol.

(B) Blending to meet a cap limit. Notwithstanding, section (h)(1) or 2262.5(d) , a person may add nonoxygenate or oxygenated blendstock to Ca lifornia gasoline that does not comply with one or more of the applicable cap limit s contained in section 2262

, where the person obtains the prior approval of the executive officer based on a demonstration that adding the blendstock is a reaso nable means of bringing the gasoline into compliance with the cap limits.

(i) Restrictions during the RVP season on blending gaso line containing ethanol with California gasoline not containing ethanol.

(1) Basic prohibition. Within each air basin durin g the Reid vapor pressure cap limit periods specified in section 2262.4(a)(2) , no person may combine California gasoline produce d using ethanol with California gasoline produced wit hout using ethanol, unless the person can affirmatively demonstrate that: (A) the resulti ng blend complies with the cap limit for Reid vapor pressure set forth in section 2262 , or (B) the person has taken reasonably prudent precautions to assure that the gasoline is not subject to the Reid vapor pressure cap limit either because of sections 2261(d) or (f) or 2262.4(c)(1) or (c)(3) , or because the gasoline is no longer California gasoline.

(2) Exception. Section 2266.5(i)(1) does not apply to combining California gasolines t hat are

in a motor vehicle's fuel tank.

§ 2267. Exemptions for Gasoline Used in Test Progra ms.

The executive officer shall consider and grant test program exemptions from the requirements of

this subarticle in accordance with section 2259

.

§ 2268. Liability of Persons Who Commit Violations Involving Gasoline That Has Not Yet Been Sold or Supplied to a Motor Vehicle.

(a) For the purposes of this subarticle, each sale of California gasoline at retail, and each dispensing of California gasoline into a motor vehi cle fuel tank, shall also be deemed a sale or supply by any person who previously sold or supp lied such gasoline in violation of any applicable section of this subarticle.§ 2269

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 115 § 2269. Submittal of Compliance Plans.

(a) Each producer shall, by September 1, 2000, subm it to the executive officer a plan showing the producer's schedule for achieving compliance wi th the CaRFG Phase 3 standards set forth in this subarticle. Each producer shall, by Septemb er 1, 2001, September 1, 2002, and September 1, 2003 submit an update of the plan. Eac h compliance plan and update shall include the projected sequence and dates of all key events pertaining to planning, financing, and construction of necessary refinery modification s.

§ 2270. Testing and Recordkeeping.

(a)(1) The requirements of this section (a) shall a pply to each producer and importer that has elected to be subject to an averaging limit in section 2262 , or to a PM averaging limit, or to a producer or importer that produces gasoline th at has elected to be subject to the PM emissions offsetting compliance option pursuant to section 2264.2(d) . The references to sulfur content shall apply to each producer or impo rter that has elected to be subject to

the section 2262 averaging limit for sulfur, or to a PM averaging l imit for sulfur, or to a producer or importer that produces gasoline that ha s elected to be subject to the PM emissions offsetting compliance option pursuant to section 2264.2(d) . The references to benzene content shall apply to each producer or imp orter that has elected to be subject to

the section 2262 averaging limit for benzene, or to a PM averaging limit for benzene, or to a producer or importer that produces gasoline th at has elected to be subject to the PM emissions offsetting compliance option pursuant to section 2264.2(d) . The references to olefin content shall apply to each producer or impo rter that has elected to be subject to

the section 2262 averaging limit for olefin content, or to a PM ave raging limit for olefin content, or to a producer or importer that produces gasoline that has elected to be subject to the PM emissions offsetting compliance option pu rsuant to section 2264.2(d) . The reference to T90 shall apply to each producer or im porter that has elected to be subject to

the section 2262 averaging limit for T90, or to a PM averaging limi t for T90, or to a producer or importer that produces gasoline that ha s elected to be subject to the PM emissions offsetting compliance option pursuant to section 2264.2(d) . The references to T50 shall apply to each producer or importer that h as elected to be subject to the section

2262 averaging limit for T50, or to a PM averaging limi t for T50, or to a producer or importer that produces gasoline that has elected to be subject to the PM emissions offsetting compliance option pursuant to section 2264.2(d) . The references to aromatic hydrocarbon content shall apply to each producer or importer that has elected to be subject to the section 2262 averaging limit for aromatic hydrocarbon content, or to a PM averaging limit for aromatic hydrocarbon content, o r to a producer or importer that produces gasoline that has elected to be subject to the PM emissions offsetting compliance option pursuant to section 2264.2(d) . The references to oxygen content and RVP shall apply to each producer or importer that p roduces gasoline that has elected to be subject to the PM emissions offsetting complianc e option pursuant to§ 2270

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 116 section 2264.2(d)

.

(2) Each producer shall sample and test for the sul fur, aromatic hydrocarbon, olefin, oxygen, and benzene content, RVP (during the RVP regulatory control periods in section 2262.4(b)(2) ), T50 and T90 in each final blend of California ga soline which the producer has produced, by collecting and analyzing a represe ntative sample of gasoline taken from the final blend, using the methodologies specified in section 2263 . If a producer blends gasoline components directly to pipelines, tankship s, railway tankcars or trucks and trailers, the loading(s) shall be sampled and teste d for the sulfur, aromatic hydrocarbon, olefin, oxygen, and benzene content, RVP (during th e RVP regulatory control periods in section 2262.4(b)(2) ), T50 and T90 by the producer or authorized contra ctor. The producer shall maintain, for two years from the dat e of each sampling, records showing the sample date, identity of blend sampled, contain er or other vessel sampled, final blend volume, sulfur, aromatic hydrocarbon olefin, oxygen , and benzene content, RVP, T50 and T90. All gasoline produced by the producer and not tested as California gasoline by the producer as required by this section shall be d eemed to have a sulfur, aromatic hydrocarbon, olefin, oxygen, and benzene content, R VP (during the RVP regulatory control periods in section 2262.4(b)(2) ), T50 and T90 exceeding the applicable averaging limit standards specified in section 2262 , or exceeding the comparable PM averaging limits if applicable, or exceeding the designated e missions offsetting limits, unless the importer demonstrates that the gasoline meets those standards and limits.

(3) Each importer shall sample and test for the sul fur, aromatic hydrocarbon, olefin and benzene content, T50 and T90 in each final blend of California gasoline which the importer has imported by tankship, pipeline, railwa y tankcars, trucks and trailers, or other means, by collecting and analyzing a representative sample of the gasoline, using the methodologies specified in section 2263 . The importer shall maintain, for two years from the date of each sampling, records showing the samp le date, product sampled, container or other vessel sampled, the volume of the final bl end, sulfur content, aromatic hydrocarbon, olefin and benzene content, T50 and T9 0. All gasoline imported by the importer and not tested as California gasoline by t he importer as required by this section shall be deemed to have a sulfur, aromatic hydrocar bon, olefin and benzene content, T50 and T90 exceeding the applicable averaging limits s tandards specified in section 2262 , or exceeding the comparable PM averaging limit(s) if a pplicable, or exceeding the designated emissions offsetting limits, unless the importer demonstrates that the gasoline meets those standards and limit(s).

(4) A producer or importer shall provide to the exe cutive officer any records required to be maintained by the producer or importer pursuant to this section within 20 days of a written request from the executive officer if the r equest is received before expiration of the period during which the records are required to be maintained. Whenever a producer or importer fails to provide records regarding a fi nal blend of California gasoline in accordance with the requirements of this section, t he final blend of gasoline shall be presumed to have been sold by the producer or impor ter in violation of the applicable§ 2270

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 117 averaging limit standards in section 2262 , or the PM averaging limit(s), or exceeding the designated emissions offsetting limits, to which th e producer or importer has elected to be subject.

(5) The executive officer may enter into a protocol with any producer or importer for the purpose of specifying alternative sampling, testing , recordkeeping, or reporting requirements which shall satisfy the provisions of sections (a)(2) or (a)(3) . The executive officer may only enter into such a protocol if s/he reasonably determines that application of the regulatory requirements under the protocol w ill be consistent with the state board's ability effectively to enforce the averaging limit standards in section 2262 , the averaging limit compliance requirements in section 2262.3(c) , the PM averaging limit(s), the PM emissions offsetting compliance option requirements in section 2265.1 , and the alternative emission reduction plan requirements in section 2265.5 . Any such protocol shall include the producer's or importer's agreemen t to be bound by the terms of the protocol.

(b)(1) For each final blend which is sold or suppli ed by a producer or importer from the party's production facility or import facility, and which c ontains volumes of gasoline that party has produced and imported and volumes that the part y neither produced nor imported, the producer or importer shall establish, maintain and retain adequately organized records containing the following information:

(A) The volume of gasoline in the final blend that was not produced or imported by the producer or importer, the identity of the person(s) from whom such gasoline was acquired, the date(s) on which it was acquired, and the invoice representing the acquisition(s).

(B) The sulfur, benzene, aromatic hydrocarbon, olef in and benzene content, T50 and T90 of the volume of gasoline in the final blend that w as not produced or imported by the producer or importer, determined either by (A) samp ling and testing, by the producer or importer, of the acquired gasoline represented i n the final blend, or (B) written results of sampling and test of the gasoline suppli ed by the person(s) from whom the gasoline was acquired.

(2) A producer or importer subject to this section (b) shall establish such records by the time the final blend triggering the requirements is sold or supplied from the production or import facility, and shall retain such records for two years from such date. During the period of required retention, the producer or impor ter shall make any of the records available to the executive officer upon request.

(c) In the event a producer or importer sells, offe rs for sale, or supplies, in California, gasoline which the producer claims is not California gasolin e, such gasoline shall be presumed to exceed the standards that would be applicable pursu ant to this subarticle if it was California§ 2270

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 118 gasoline. The producer or importer shall maintain, for two years from the date of any sale or supply of such gasoline, records demonstrating that the gasoline was not California gasoline, or that it complied with all of the standards of th is subarticle 2, when it was sold or supplied by the producer.

§ 2271. Variances.

(a) Applications for variances.

Any person who cannot comply with the standards or compliance requirements set forth in

sections 2262

, 2262.3

, 2262.4

, 2262.5

, 2262.6

, 2265.1 , or 2265.5 because of reasons beyond the person's reasonable control may apply to the ex ecutive officer for a variance. Except for emergency variances as provided in section (h) , the application shall be accompanied by a fee of $6700.00 to cover the costs of processing th e variance. If the applicant withdraws the application before the variance hearing is held, $4 100.00 of the fee shall be refunded. The application shall set forth:

(1) The applicable section(s) from which the varian ce is sought;

(2) The specific grounds upon which the variance is sought;

(3) The proposed date(s) by which compliance with t he provisions of the applicable section(s) will be achieved; and

(4) A compliance plan reasonably detailing the meth od by which compliance will be achieved. That proposed compliance plan shall inclu de increments of progress (i.e., specific events and dates) that describe periodic, measurable steps toward compliance during the proposed term of the variance.

(b)(1) Notices and public hearings for variances.

Upon receipt of an application for a variance conta ining the information required in section (a) , the executive officer shall hold a hearing to det ermine whether, or under what conditions and to what extent, a variance from the requirements of the applicable section(s) is necessary and will be permitted. Noti ce of the time and place of the hearing shall be sent to the applicant by certified mail no t less than 20 days prior to the hearing. Notice of the hearing shall also be submitted for p ublication in the California Regulatory Notice Register and sent to every person who reques ts such notice, not less than 20 days prior to the hearing.

(2) Treatment of confidential information. Informat ion submitted to the executive officer by a variance applicant may be claimed as confidential . Information claimed as confidential§ 2271

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 119 shall be handled in accordance with the procedures specified in Title 17, California Code of Regulations (CCR), sections 91000 to 91022 excep t that: (A) at the time the information is submitted, the submitter must provid e accompanying documentation in support of the claim of confidentiality, including the documentation identified in section 91022(c), and (B) for the purposes of this section 2271 , the time period specified in section 91022(e)(2) is 10 days instead of 21 days. The executive officer may consider such confidential information in reaching a decisio n to grant or deny a variance.

(c) Public participation in the variance process.

At least 20 days prior to the hearing, the applicat ion for the variance shall be made available to the public for inspection. Interested members of the public shall be allowed a reasonable opportunity to submit written and oral testimony at the hearing and their testimony shall be

considered.

(d) Necessary findings for granting variances.

The decision to grant or deny a variance shall be b ased solely upon substantial evidence in the record of the variance proceeding. No variance shall be granted unless the executive officer makes all of the following findings:

(1) That, because of reasons beyond the reasonable control of the applicant, requiring compliance with the applicable section(s) would res ult in an extraordinary economic hardship;

(2) That the public interest in mitigating the extr aordinary hardship by issuing the variance outweighs the public interest in avoiding any incre ased emissions of air contaminants which would result from issuing the variance; and

(3) That the compliance plan proposed by the applic ant can reasonably be implemented and will achieve compliance as expeditiously as possibl e.

(e) Factors to be considered in making the necessary fi ndings for granting variances.

In making the findings specified in section (d) , the factors set forth below shall be considered. It is the responsibility of the applica nt to provide the information necessary to adequately evaluate these factors.

(1) Regarding the finding specified in section (d)(1) :

(A) To demonstrate that noncompliance is "beyond th e reasonable control of the applicant," the applicant must demonstrate that rea sonably diligent and timely efforts to achieve compliance have been made. Where a varia nce is sought from initial§ 2271

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 120

compliance with the CaRFG Phase 3 requirements, the applicant shall show that timely capital expenditures and efforts to obtain t he permits for necessary refinery modifications have been made, and that the applican t has been reasonably diligent in attempting to follow the periodic compliance plans required by section 2269

, "Submittal of Compliance Plans." Where a variance i s sought due to a breakdown, the applicant shall demonstrate that the breakdown coul d not have been prevented or mitigated by the application of standard industrial practices. "Standard industrial practices" means elements of design, methods of ope ration, and levels of oversight and maintenance that are regarded as generally acce pted practice in the applicant's type of business.

(B) To demonstrate that requiring compliance would result in an "extraordinary economic hardship," the applicant must make a substantial sh owing that no alternative to a variance would eliminate or mitigate the need for a variance. Potential alternatives that the applicant shall address include the follow ing: 1. obtaining complying gasoline from outside sources, or obtaining blending materia ls that would allow production of complying gasoline, 2. using the applicable Califor nia Predictive Model (as specified in Title 13, CCR, section 2265 ) to maximize the production of complying gasoline, or to minimize the degree of noncompliance, through th e use of a PM alternative gasoline formulation, 3. electing to use the PM emi ssions offsetting compliance option, and 4. applying for an alternative emission reduction plan. The applicant shall compare the economics of operations without a varia nce, for the period over which the variance is proposed, with the economics of ope rations after the variance compliance plan has been implemented (e.g., the eco nomic hardship during the term of the variance shall be measured against the event ual cost of long-term compliance.) The operations may include facets of the applicant' s business other than gasoline operations, if those facets are directly affected b y the ability to conduct the gasoline business. An applicant may also address any supply shortages that could result from the failure to grant a variance and the economic af fects of such shortages on the persons who do, or could, receive gasoline from the applicant.

(2) Regarding the finding specified in section (d)(2) :

(A) The executive officer shall consider the potent ial effects of issuing or denying the variance on the applicant's customers, the producer s of complying fuel, the general public, and upon air quality. The executive officer shall also consider whether granting the variance will place the applicant at a cost advantage over other persons, including those persons who produce complying gasol ine.

(B) To evaluate the potential effect upon air quali ty, the excess emissions from granting

the variance shall be estimated as follows:§ 2271

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 121

1. Exhaust emissions: The fractional change in emis sions from using the variance gasoline shall be estimated with the California Pre dictive Model (model). Inputs to the model shall be the limits to be placed on th e regulated properties of the variance gasoline by the variance conditions and th e limits set forth in section

2262 that correspond in form (flat or averaging) to the variance limits. For each air basin in which the variance gasoline will be so ld, the estimate of excess exhaust emissions shall be the fractional change in emissions (output by the model), times the estimated fraction of gasoline us e in the air basin represented by the variance gasoline, times the inventory of exhau st emissions from gasolinepowered vehicles in the air basin.

2. Evaporative hydrocarbon emissions: Excess evapor ative emissions shall be estimated for a limit greater than 7.0 pounds per s quare inch (psi) on the Reid vapor pressure (RVP) of variance gasoline. This est imate shall apply only for the period when RVP is limited to 7.0 psi. The true vap or pressure corresponding to the RVP limit for variance gasoline shall be divide d by the true vapor pressure corresponding to RVP at 7.0 pounds per square inch. For each air basin in which the variance gasoline will be sold, the estimate of excess evaporative emissions shall be that ratio, minus 1.0, times the estimated fraction of gasoline use in the air basin represented by the variance gasoline, times t he inventory of emissions due to the evaporation of gasoline from all sources in the air basin.

(3) Regarding the finding specified in section (d)(3) :

The applicant shall demonstrate why the proposed co mpliance plan is the most expeditious way to achieve compliance, and the appl icant shall demonstrate sufficient control over the implementation of the plan to make the plan practical. In the case of a proposed variance that would begin on December 31, 2003, the compliance plan shall identify and provide a date for each key step that remains to be accomplished for attaining compliance. As applicable, these steps sh all include financing, engineering plans, ordering and contracts, receipt of major equ ipment, commencement and completion of construction, and testing.

(f) Conditions and fees in variance orders.

In imposing fees and conditions in variance orders, the executive officer shall take into account the potential for such fees and conditions to place the applicant at a cost advantage over other persons, including those persons who pro duce complying gasoline.

(1) Conditions.

(A) Any variance order shall specify a final compli ance date by which the requirements of the applicable section(s) will be achieved. Any variance order shall also contain a§ 2271

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 122

condition that specified increments of progress nec essary to assure timely compliance be achieved, and such other conditions that the exe cutive officer, as a result of the testimony received at the hearing, finds necessary to carry out the purposes of Division 26 of the Health and Safety Code. Such con ditions may include, but are not limited to, reporting requirements, limitations on the gasoline specifications, and the elements of the variance compliance plan as propose d by the applicant, with any modifications made by the executive officer.

(B) Any variance order granting a variance from 2262.4 shall impose a substitute gasoline Reid vapor pressure limit as stringent as feasible under the circumstances, in no case to exceed 9.0 pounds per square inch. For a reas where, and in seasons when, federal regulations require a lesser maximum Reid v apor pressure limit, a variance order shall not impose a Reid vapor pressure limit that is less stringent than the

federal limit.

(C) The executive officer may require, as a conditi on of granting a variance, that a cash bond, or a bond executed by two or more good and su fficient sureties or by a corporate surety, be posted by the party to whom th e variance was granted to assure performance of any construction, alteration, repair , or other work required by the terms and conditions of the variance. Such bond may provide that, if the party granted the variance fails to perform such work by the agre ed date, the cash bond shall be forfeited to the state board, or the corporate sure ty or sureties shall have the option of promptly remedying the variance default or paying t o the state board an amount, up to the amount specified in the bond, that is necessary to accomplish the work specified

as a condition of the variance.

(D) The variance order shall limit the amount of va riance gasoline sold or supplied from the applicant's production or import facility durin g each 30-day period of the variance, or during such other time period as the e xecutive officer may specify. In determining the limit on the amount of variance gas oline, the Executive Officer shall consider available data on the applicant's producti on of complying gasoline. The limit shall not exceed the applicant's capacity to produc e complying gasoline.

(E) The variance order shall specify that once a qu antity of variance gasoline has been sold or supplied by the applicant in accordance wit h the variance, subsequent transactions involving that variance gasoline by an other producer, distributor, retailer, end user, or other person shall also be exempt from the applicable requirements.

(2) Fees. A fee of $0.15 shall be levied on the app licant for each gallon of gasoline sold or released for sale under variance during the term of the variance. The fee shall be paid by the applicant periodically, in advance of the sale or release of variance gasoline in each period. The executive director shall specify the pa yment schedule in the variance order.§ 2271

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 123 (g) Duration of variances.

(1) A variance shall be granted only for the minimu m period necessary for the applicant to attain compliance with the applicable regulations. Except for a variance related to a physical catastrophe, no variance shall have a dura tion of more than 120 days; however, a variance may be extended for up to 90 additional da ys if the applicant demonstrates that the requirements of sections (d) and (e) are met. In order to receive an extension of a variance, the applicant must submit an application as specified in section (a) , and a hearing must be held as specified in sections (b) and (c)

.

(2) Variances related to a physical catastrophe. No twithstanding the provisions of section (g)(1) , a refiner may be granted a variance with a durati on of more than 120 days, or a variance extension of more than 90 days, if the app licant demonstrates that the additional time is necessary due to a physical catastrophe, an d the requirements of sections (d) and (e) are met. In order to receive a variance or varianc e extension, the applicant must submit an application as specified in section (a) and a hearing must be held as specified in sections (b) and (c) . As used in this section, "physical catastrophe" m eans a sudden unforseen emergency beyond the reasonable control o f the refiner, causing the severe

reduction or total loss of one or more critical ref inery units that materially impact the refiner's ability to produce complying gasoline. "P hysical catastrophe" does not include events which are not physical in nature such as des ign errors or omissions, financial or economic burdens, or any reduction in production th at is not the direct result of qualifying physical damage.

(h) Emergency variances.

(1) The executive officer may, after holding a hear ing without complying with the provisions

of sections (b) and (c) , issue an emergency variance to a person from the requirements of the applicable section(s) upon a showing of reasona bly unforeseeable extraordinary hardship and good cause that a variance is necessar y. The applicant for an emergency variance shall pay a fee of $2500.00. Section (f) shall apply to emergency variances, except that a variance order is not required to spe cify a final compliance date by which the requirements of the applicable sections(s) will be achieved.

(2) No emergency variance may have a duration of mo re than 45 days. If the applicant for an emergency variance does not demonstrate that he or she can comply with the provisions of the applicable section(s) within such 45-day per iod, an emergency variance shall not be granted unless the applicant makes a prima facie demonstration that the findings set

forth in section (d) should be made. The executive officer shall mainta in a list of persons who have informed the executive officer in writing of their desire to be notified by telephone in advance of any hearing held pursuant t o section (h) , and shall provide§ 2271

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 124 advance telephone notice to any such person as soon as practicable, considering the nature of the emergency.

(i) Situations in which variances shall cease to be eff ective.

A variance shall cease to be effective upon failure of the party to whom the variance was granted substantially to comply with any condition of the variance.

(j) Modification and revocation of variances.

Upon the application of any person, the executive o fficer may review and for good cause modify or revoke a variance from the requirements t he applicable section(s) after holding a hearing in accordance with the provisions of sections (b) and (c)

.

§ 2272. CaRFG Phase 3 Standards for Qualifying Smal l Refiners.

(a) CaRFG Phase 3 standards for qualifying small refine rs.
In place of the CaRFG Phase 3 standards set forth i n section 2262 , a qualifying small refiner may elect to have a final blend of California gasol ine supplied from the small refiner's refinery subject to the "small refiner CaRFG Phase 3 standards," which are identical to the

CaRFG Phase 3 standards in section 2262 except that: (i) the flat limit for benzene conten t is 1.00 percent by volume (vol.%) instead of 0.80 vol. %, (ii) the flat limit for .aromatics content is 35.0 vol.% instead of 25.0 vol.%, (iii) the flat limit for T50 is 220 ° F. instead of 213 ° F, and (iv) the flat limit for T90 is 312 ° F. instead of 305 ° F. This election may only be made if the small refiner has been issued a currently ef fective certification pursuant to section (b) and the gasoline qualifies for treatment under section (c)

.

(b) Certification of small refiners.

(1) A small refiner wishing to produce gasoline sub ject to this section shall submit to the executive officer an application for certification on the Air Resources Board's ARB/SSD/CPB Form 00-3-1, for each of the small refi ner's California refineries. The application shall be executed by a responsible corp orate officer under penalty of perjury.

(2) The small refiner's application shall set forth : [A] the crude oil capacity of the refinery since January 1, 1978; [B] the crude oil capacities of all the refineries in California and the United States which are owned or controlled by, or under common ownership or control with, the small refiner since September 1, 1988; [C] data demonstrating that the refinery has the capacity to produce liquid fuels b y distilling petroleum; and [D] a

demonstration that the small refiner's California r efinery was used in 1998 and 1999 to§ 2272

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 125 produce and supply California gasoline meeting the CaRFG Phase 2 standards.

(3) Within 30 days of receipt of the application, t he executive officer shall grant or deny it in writing. The executive officer shall grant the appl ication if he or she determines that: [A] the application contains all of the information ide ntified in sections (b)(1) and (2) above, and [B] the applicant meets the definition of small refiner. Any denial of an application

shall include a statement of the reasons for denial

.

(c) Criteria for qualifying gasoline.

Gasoline shall only be subject to treatment under t his section if the small refiner demonstrates all of the following:

(1) The gasoline was produced by the small refiner at the small refiner's California refinery.

(2) The gasoline was supplied from the small refine r's California refinery in a calendar quarter in which 25 percent or more of the gasoline that was produced by the small refiner and that was supplied from the refinery in the calendar quarter was refined at the small refinery from crude oil. The volume of oxygen ates in the gasoline shall not be counted in making this calculation. The period from December 31, 2003 through March 31, 2004 shall be treated as a calendar quarter und er this section (c)(2).

(3) For the period December 31, 2003, through Decem ber 31, 2004, and for each subsequent calendar year, the gasoline was supplied from the s mall refiner's California refinery before the full qualifying volume of gasoline produ ced by the small refiner had been supplied from the refinery during that period or ye ar. In calculating the volume of gasoline supplied from the refinery, the volume of oxygenates in the gasoline shall not be counted. Gasoline that is designated by the small r efiner as subject to all of the CaRFG

Phase 3 standards in section 2262 , and is reported to the executive officer pursuant to a protocol entered into by the small refiner and the executive officer, shall not be counted against the qualifying volume.

(4) At the time the gasoline was supplied from the small refiner's refinery, the small refiner

met the definition of a small refiner.

(5) The excess emissions of hydrocarbons, oxides of nitrogen, and potency-weighted toxics are offset pursuant to section 2282, title 13, Cali fornia Code of Regulations. The excess emissions from gasoline subject to the small refine r CaRFG Phase 3 standards are: 0.0206 pounds of exhaust hydrocarbons per barrel, 0 .0322 pounds of oxides of nitrogen per barrel, and the potency-weighted toxic emission s equivalent of 0.0105 pounds of benzene per barrel.

(d) Compliance with applicable federal RFG requirements

.§ 2272

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 126 Any small refiner subject to this section shall com ply with all applicable requirements of the federal reformulated gasoline regulations in 40 CFR Part 80 Subpart D, commencing with §

80.40.

(e) Additional reporting requirements for small refiner s.

(1) In addition to the requirements of section 2270 , each small refiner who qualifies for

treatment under this section shall submit to the ex ecutive officer reports containing the

information set forth below for each of the small r efiner's California refineries, starting on the date on which a qualifying small refiner sup plies from its refinery gasoline subject

to the small refiner CaRFG Phase 3 standards. The r eports shall be executed in California under penalty of perjury, and must be received with in the time indicated below. December 31, 2003 through January 31, 2004 shall be treated as a month.

(A) The quantity of all gasoline, produced by the s mall refiner, that is supplied from the small refinery in each month, within 15 days after the end of the month, the quantity of all such gasoline that is California gasoline su bject to the small refiner CaRFG3 standards, and the quantity of all such gasoline th at is California gasoline not subject to the small refiner CaRFG3 standards;

(B) The identity and volume of each oxygenate conta ined in the gasoline described in section (e)(1)(A) above, within 15 days after the e nd of the month;

(C) For each calendar quarter, a statement whether 25 percent or more of the gasoline that was produced by the small refinery and that was sup plied from the refinery in the calendar quarter was refined at the small refinery from crude oil, within 15 days after the close of such quarter;

(D) The date, if any, on which the small refiner co mpletes transfer from its small refinery in the period December 31, 2003 through December 31 , 2004, and in each subsequent calendar year, of the small refiner's qualifying vo lume of gasoline produced by the small refiner, calculated as described in section (c)(3) , within 5 days after such date;

(E) Within 10 days after project completion, any re finery addition or modification which would affect the qualification of the refiner as a small refiner pursuant to the

definition in section 2260(a)(22) ; and

(F) Any change of ownership of the small refiner or the small refiner's refinery, within 10 days after such change of ownership.§ 2273

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 127 § 2273. Labeling of Equipment Dispensing Gasoline C ontaining MTBE.

(a) MTBE labeling requirement.

All devices dispensing gasoline containing methyl t ertiary butyl ether (MTBE) at filling stations, garages or other outlets where petroleum products are sold or offered for retail shall be marked with a conspicuous label at all times the product is offered for retail sale.

(1) The label shall state that the gasoline being d ispensed "Contains MTBE. The State of

California has determined that the use of this chem ical presents a significant risk to the

environment."

(2) The label shall be contrasting in color to the gasoline dispensing equipment and have capitalized lettering using not less than one-eight h inch high letters, except that "MTBE" shall have lettering using not less than five-eight h inch high letters with a stroke of not less than one-eighth in width and "Contains" shall have lettering using not less than onequarter inch high letters.

(3) The label shall be placed on the gasoline dispe nsing equipment's vertical surface, on each side with gallonage and price meters.

(4) The label shall be conspicuous and legible to a customer when viewed from the driver's position inside the car.

(5) The label shall be capable of withstanding extr emes of weather conditions for at least one year and shall be resistant to gasoline, oil, greas e, solvents, detergents, and water. Damaged labels that are not legible shall be replac ed.

(b) Residual levels of MTBE.

(1) The labeling requirements in section 2273(a) do not apply to equipment dispensing gasoline from a storage tank containing gasoline ha ving an MTBE content of less than 0.6 percent by volume, as determined by American So ciety of Testing and Materials (ASTM) Test Method D 4815-04, which is incorporated herein by reference, or any other test method determined by the executive officer to give equivalent results.

(2) The labeling requirements in section 2273(a) do not apply where the equipment is dispensing gasoline from a storage tank containing gasoline having an MTBE content of less than 3.0 percent by volume, as determined by a test method identified in section 2273(b)(1) , and the operator of the retail outlet demonstrate s that the conditions in either section 2273(b)(2)(A)

, (B)

, (C) or (D) have occurred.§ 2273

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 128 (A) The gasoline storage tank has been consecutivel y drained and refilled to at least 95 percent of capacity with gasoline containing less t han 0.6 volume percent MTBE as specified in the following table.

The percent of the total gasoline storage tank capacity that is emptied prior to

refilling The consecutive number of times the gasoline storage tank must be drained and

refilled

90% 2

80% 3

70% 3

60% 4

50% 6

40% 8

30% 11

20% 19

10% 60

(B) The gasoline storage tank has been consecutivel y drained and refilled to at least 95 percent of capacity with gasoline containing less t han 0.6 volume percent MTBE according to the following equation.

N = -(0.222) + log C O )/log (V L /V T )

Where:

N = The number of times the gasoline storage tank m ust be drained and refilled. If the resultant number is not an integer, it shall be rou nded up to the nearest integer.

C O = The initial concentration, in volume percent, of MTBE in the gasoline storage

tank.

V L = The volume of gasoline (in gallons) left in the gasoline storage tank after each draining.§ 2273

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 129

V T = 95% of the capacity (in gallons) of the gasoline storage tank.

(C) The following equation has been applied to cons ecutive drainings and fillings of the gasoline in the storage tank, and the equation show s an MTBE content of less than 0.6 percent by volume. The initial MTBE concentrati on (CO) of the gasoline in the storage tank when the equation is first applied sha ll be deemed to be 15 volume percent unless the MTBE content is determined in ac cordance with a testing methodology identified in section 2273(b)(1) . For purposes of the equation, [i] the MTBE concentration of gasoline containing less than 0.6 volume percent MTBE shall be deemed to be zero, and [ii] the MTBE concentrati on of gasoline delivered with an invoice or other documentation stating that the gas oline contains MTBE shall be deemed to be 15 volume percent or, if the concentra tion of MTBE is stated on the documentation, that stated concentration. The execu tive officer shall make available upon request a computer program that may be used in applying the equation.

C = C O (V L

/(V L +V D )) + C D (V D /(V L +V D ))

Where:

C = The final concentration, in volume percent, of MTBE in the gasoline storage tank after the fuel delivery.

C O = The initial concentration, in volume percent, of MTBE in the gasoline storage tank before the fuel delivery.

C D = The concentration, in volume percent, of MTBE in the fuel being delivered to the gasoline storage tank.

V L = The volume of gasoline (in gallons) left in the gasoline storage tank prior to fuel delivery.

V D = The volume of gasoline (in gallons) delivered to the gasoline storage tank.

(D) The gasoline has been consecutively drained and refilled in accordance with an alternative protocol which the executive officer ha s previously found in writing provides assurances of MTBE removal equivalent to t he conditions in section 2273(b)(2)(A)

, (B) , and (C)

.

(c) Responsibility for compliance.

The operator of the retail gasoline outlet shall be responsible for compliance with the labeling requirements in section 2273(a)

.§ 2273

CaRFG Regulations reflecting amendments California Air Resources Board effective August 29,. 2008 130 (d) Deliveries of gasoline to retail outlets.

(1) Any person delivering gasoline to a retail gaso line outlet from December 16, 1999 through December 30, 2003 shall provide to the outl et operator or responsible employee, at the time of delivery of the fuel, an invoice, bi ll of lading, shipping paper, or other documentation which states whether the gasoline doe s or does not contain 0.6 percent by volume or more MTBE, and which may identify the vol umetric amount of MTBE in the gasoline. For purposes of determining compliance wi th this section 2273(d), the volumetric MTBE content of gasoline shall be determ ined by ASTM Test Method D 4815-04, which is incorporated herein by reference, or any other test method determined by the executive officer to give equivalent results

.

(2) No person shall deliver gasoline containing 0.6 percent by volume or more MTBE to a storage tank at a retail gasoline outlet unless at the time of the delivery either:

(A) All pumps dispensing gasoline from the storage tank are labeled as containing
MTBE, or

(B) The party delivering the gasoline, or on whose behalf the delivery is being made, can demonstrate that it has received and is maintaining a nonsuperceded written notification from the operator of the retail gasoli ne outlet that all of the outlet's gasoline dispensing equipment, or all of the outlet 's dispensing equipment dispensing gasoline of the grade being delivered, is labeled a s containing MTBE.

§ 2273.5. Documentation Provided with Delivery of G asoline to Retail Outlets.

Any person delivering gasoline to a retail gasoline outlet shall provide to the outlet operator or responsible employee, at the time of delivery of th e fuel, an invoice, bill of lading, shipping paper, or other documentation which states whether the gasoline does or does not contain ethanol, and which may identify the volumetric amou nt of ethanol in the gasoline. If neither the outlet operator nor a responsible employee is at th e outlet at the time of delivery, the documentation may be left at a reasonably secure lo cation at the outlet.