(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 requirements 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 limit standards in section
2262, and the CaRFG Phase 3
benzene and sulfur content cap limit compliance requirements in 2262.3(a),
shall apply:
1. starting December 31, 2003
(for the benzene content cap limit and the 60 parts per million sulfur content
cap limit), December 31, 2005 (for the 30 parts per million sulfur content cap
limit), and December 31, 2011 (for 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 content cap limit and the 60 parts per million sulfur
content cap limit), February 14, 2006 (for the 30 parts per million sulfur
content cap limit), and February 14, 2012 (for the 20 parts per million sulfur
content cap limit) 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 purchaser-consumer 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 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 3 standards and
compliance 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 cap limit standards in section
2262 shall not apply to
transactions directly involving 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 affirmative defense that the
exceedance of the pertinent standard was caused by gasoline delivered to the
retail outlet or bulk purchaser-consumer facility prior to February 14, 2004
(for the benzene content limit and the 60 parts per million sulfur content
limit), February 14, 2006 (for the 30 parts per million sulfur content limit),
or February 14, 2012 (for the 20 parts per million sulfur content limit) or
delivered to the retail outlet or bulk purchaser-consumer facility directly
from a bulk plant prior to March 31, 2004 (for the benzene content limit and
the 60 parts per million sulfur content limit), March 31, 2006 (for the 30
parts 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 Standards 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 gasoline subject to the CaRFG Phase 3 standards instead of the
CaRFG Phase 2 standards may 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 begin supplying from its production or import facility gasoline complying
with the CaRFG Phase 3 standards if permitted to do so;
2. A reasonably detailed demonstration of the
producer's or importer's ability and plans to begin supplying from its
production or import facility substantial quantities of one or more grades of
gasoline meeting 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 making 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 importer that the request is complete, the executive officer shall either
grant or deny the request. If the request is granted the executive officer
shall specify the date 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 reasonably likely that the producer or importer making the
request will start supplying substantial quantities of one or more grades of
gasoline complying with the CaRFG Phase 3 standards reasonably soon after the
date specified. If the executive officer denies the request, he or she shall
provide the producer or importer with a written 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 which (i) producers and
importers will be permitted to start supplying final blends of gasoline
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 percent
respectively for gasoline downstream of the production or import facility. This
notification shall be made by posting the pertinent information on the state
board's Internet site, providing electronic mail notification to all persons
subscribing to the state board's Fuels-General 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 granting a request made under section
2261(b)(3)(A)
through December 30, 2003, any producer or importer may comply with the CaRFG
Phase 3 standards that apply starting December 31, 2003 as an alternative to
the CaRFG Phase 2 standards. Whenever a producer or importer is supplying a
final blend subject to the CaRFG Phase 3 standards pursuant to this 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 the 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 than 0.60 volume percent, or
contain a total of more than 0.10 weight percent oxygen collectively from all
of the oxygenates identified in section
2262.6(c)(4) that
have not received a determination by the California Environmental Council as
described in section
2262.6(c)(1).
(4)
Early compliance with the CaRFG
Phase 3 Amendments (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 any
of the applicable versions of the "California Procedures for Evaluating
Alternative Specifications for Phase 3 Reformulated Gasoline Using the
California Predictive Model," which are incorporated by reference in section
2265(a)(2)(A),
shall notify the Executive Officer of its wish to do so. The notification shall
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 California Model for California Reformulated Gasoline Blendstocks for
Oxygenate Blending (CARBOB)," as adopted April 25, 2001, last amended August 7,
2008, shall notify the Executive Officer of its wish to do so. The notification
shall include all of the information listed in section
2261(b)(4)(E).
(C) Any producer or importer electing to
supply from its production or import facility, before December 31, 2009, any
final blends of gasoline subject to any of the applicable versions of the
"California Procedures for Evaluating Alternative Specifications for Phase 3
Reformulated Gasoline Using the California Predictive Model," which are
incorporated by reference in section
2265(a)(2)(A), or
to the "Procedures for Using the California Model for California Reformulated
Gasoline Blendstocks 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 (total hydrocarbon model or the exhaust hydrocarbon model)
as defined in the "California Procedures for Evaluating Alternative
Specifications for Phase 3 Reformulated Gasoline Using the California
Predictive Model" to certify alternative blends of gasoline. With certain
limited exceptions, which are described in the "California Procedures for
Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Using
the California Predictive Model," beginning December 31, 2009, a candidate fuel
that is designated as "non-RVP-controlled gasoline" must use the exhaust
hydrocarbon model in determining the emissions equivalency of the candidate
fuel specifications. A candidate fuel that is designated as "RVP-controlled
gasoline" must use the total hydrocarbon model in determining the emissions
equivalency of the candidate fuel specifications.
(D) Any producer or importer electing to use
an alternative emission reduction plan or third party electing to use a third
party alternative emissions reduction plan, before December 31, 2009, shall
notify the Executive Officer of its wish to do so. The notification shall
include all of the information listed in section
2265.5.
(E) Notification.
1. The approximate date by which it intends
to begin supplying from its production or import facility gasoline complying
with any of the applicable versions of the "California Procedures for
Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Using
the California Predictive Model," which are incorporated by reference in
section 2265(a)(2)(A), or
the "Procedures for Using the California Model for California Reformulated
Gasoline Blendstocks for Oxygenate Blending (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 producer's or importer's ability and
plans to begin supplying from its production or import facility substantial
quantities of one or more grades of gasoline or CARBOB 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 importer making 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 importer that the request is complete, the Executive
Officer shall either grant or deny the request. If the request is granted the
Executive Officer shall specify the date 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 making the request will start supplying
substantial quantities of one or more grades of gasoline or CARBOB complying
with the amended Procedures Guides reasonably soon after the date specified. If
the Executive Officer denies the request, he or she shall provide the producer
or importer with a written statement explaining the reason for
denial.
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 to start supplying final blends of gasoline
complying with the amended Procedures Guides. This notification shall be made
by posting the pertinent information on ARB's Internet site, providing
electronic mail notification to all persons subscribing to ARB's Fuels-General
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 granting 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 producer or importer
that produces gasoline is supplying a final blend subject 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 supplied from the production or import facility, no such final
blend may result in emissions associated with permeation unless those emissions
are offset through 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 Amendments (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 begin 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 producer's or importer's ability and plans to
begin supplying from its production or import facility substantial quantities
of one or more grades of gasoline meeting section
2264.2(d) on or
after the date specified;
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 making 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 importer that the request is complete, the Executive Officer shall either
grant or deny the request. If the request is granted the Executive Officer
shall specify the date 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 determines it is
reasonably likely that the producer or importer making the request will start
supplying substantial quantities of one or more grades of gasoline complying
with section
2264.2(d)
reasonably soon after the date specified. If the Executive Officer denies the
request, he or she shall provide the producer or importer 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 which
producers and importers that produce gasoline will be permitted to start
supplying 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, providing electronic mail notification to all persons
subscribing to ARB's Fuels-General 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 granting a request made under section
2261(b)(5)(A)
through December 30, 2009, any producer or importer 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 applicable 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 final blends of gasoline subject to section
2264.2(d), shall
comply with section
2265.1.
(6)
Ethanol Emission Reduction Plan
(EERP)(A)
Applicability. This section shall apply to a producer or
importer that produces gasoline that elects to use an EERP or to a third party
that elects to use a third party EERP when all of the following conditions are
satisfied:
1. In the case of a third party
EERP, the third party 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 increased ethanol blending, the PM alternative specifications would have
met the criteria for approval in the applicable Predictive Model
Procedures,
4. All measures to
correct the emissions associated with increased ethanol blending would result
in an economic hardship to the producer 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 Predictive Model Procedures,
5. The producer or importer is not subject to
any outstanding requirements to provide offsets at the same production facility
or import facility pursuant to section
2264(c),
and
6. The amount of ethanol
blended into the final blend may not exceed 10.0 volume percent denatured
ethanol.
7. All EERPs and third
party EERPs sunset on December 30, 2009.
(B)
Requirements.
1. Where the producer or importer that
produces gasoline has reported its final blend of gasoline as a flat limit
formulation pursuant to section
2264.2(b),
averaging limit formulation pursuant to section
2264.2(a), PM
alternative gasoline formulation pursuant to section
2265(a), or
test-certified alternative gasoline formulation pursuant to section
2266(c),
compliance with a valid EERP or third party EERP shall constitute compliance
with the requirements of section
2262.3(b),
2262.3(c),
2265, or
2266, respectively.
2. An EERP or third party EERP application
demonstrating compliance with this subsection shall contain at a minimum all of
the following information:
a. The company
name, address, phone number, and contact information,
b. The producer's or importer's name, batch
name, number or other identification, grade of California gasoline, and other
information that uniquely identify the California gasoline subject to the EERP
or third party EERP,
c. An
explanation describing why the producer or importer cannot eliminate the
emissions associated with increased ethanol blending 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 associated with the use of California
gasoline were the producer or importer to 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 potency-weighted toxics associated with the producer's
or importer's gasoline,
f. The
emission reduction strategy(ies) for the EERP 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
strategy(ies) in the EERP or third party EERP will result in equivalent or
better emission benefits for NOx, total ozone forming potential, and
potency-weighted toxics than would be achieved through elimination of emissions
associated with increased 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 outside the RVP regulatory control periods in section
2262.4(b)(2),
i. Demonstration that the emission reductions
are achieved in the general region where the fuel is sold,
j. The proposed recordkeeping, reporting,
monitoring, and testing procedures that the producer or importer plans to use
to demonstrate continued compliance with the EERP or third party EERP and
achievement of each increment of progress toward compliance,
k. Adequate enforcement provisions,
l. The projected volume of each final blend
of California gasoline subject to the 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 will be in effect,
n. A
compliance plan that includes increments of progress (specific events and
dates) that describe periodic, measurable steps toward compliance during the
proposed period of the 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 for the producer or importer that all information submitted with
the EERP or third party EERP application is true and correct, and
q. The producer's or importer's agreement to
be bound by the terms of the EERP or third party EERP.
r. In the case of a third party EERP, all of
the above including all of the following:
i.
The third party's name, address, phone number, and contact
information,
ii. Documentation of
the contract or agreement between the third party and the producer or
importer,
iii. Documentation of the
amount of NOx, total ozone forming potential, and potency-weighted toxics
(reported as tons/day and percentage of the total tons/day) from the producer's
or importer's gasoline that will be offset by the third party 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 for the third party that all information submitted with the
third party EERP application 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 equivalence between the EERP or third party EERP and elimination
of the emissions associated with increased ethanol blending from the gasoline
shall only include NOx, total ozone forming potential, and potency-weighted
toxics emissions from 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 importer owns or operates under
their direct control. A third party wishing to participate 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 third party
has a contract or agreement to offset emissions associated with
permeation.
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
engines, equipment and other sources of pollution providing early or extra
emission reductions.
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,
regulation, or statute, or that are achieved or estimated 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 producer
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 specified by the Executive Officer in the approved EERP or third party
EERP. Required records may include, but are not limited to, volume of
California gasoline sold, offered, or supplied to which the EERP or third party
EERP applies, and/or emissions test results. Such records shall be retained for
a period of not less than five (5) years and shall be submitted to the
Executive Officer within 20 days in the manner specified in the approved 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 first have established sufficient offsets for the applicable
emissions associated with permeation. With the exception of offsets from
vehicle scrappage and incentive grants for cleaner-than-required engines,
equipment, and other sources of pollution, offsets shall expire at midnight on
the day they accrued.
(C)
Application Process.
1.
Applications for an EERP or third party EERP shall be submitted in writing to
the Executive Officer for evaluation.
2. The application shall be accompanied by a
fee of $6,700.00 to cover the costs of processing the 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 public review all documents pertaining to an EERP or third party EERP
application.
4. The Executive
Officer will send a notice to subscribers of the Fuels listserv that a person
has requested the Executive Officer consider a request for an EERP or third
party EERP. The Executive Officer shall also provide a copy of all such
documents to each person who has requested copies of the documents.
Collectively, those persons on the Fuels listserv and those persons who have
requested copies of the documents shall be treated as interested
parties.
5. After an EERP or third
party EERP application has 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 third 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 importer(s);
b. The start and end dates for the 30-day
comment period;
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 internet
site, send to subscribers of the Fuels listserv, and mail to those interested
parties who have requested copies by mail, notification of public comments
received during the 30-day comment period.
6. The Executive Officer may hold a public
hearing to accept public comments or decide the merits of the
application.
7.
Final
Action.
After the public comment period ends, the Executive
Officer may take final action to either approve or deny the EERP or third party
EERP application. The Executive Officer shall notify the producer or importer,
post on the ARB internet site, send to subscribers of the Fuels listserv, and
mail to those interested parties who have requested copies by mail, of the
final action.
8.
Notification to the Executive Officer of Changes to information in the
EERP or third party EERP application. The producer or
importer shall notify the Executive Officer in writing within 30 days upon
learning of any information that would 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 importer, the Executive Officer
may revoke or modify, as needed, an approved EERP in any of the following
situations:
a. There has been more than one
violation of the approved 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 the criteria or requirements for an EERP or third party
EERP,
c. The producer or importer
demonstrates that it can no longer comply with the requirements of the approved
EERP or third party EERP in its current form,
d. The producer or importer demonstrates to
the satisfaction 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
modifications and/or other means of eliminating emissions associated with
increased ethanol 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 listserv, and mail to those
interested parties who have requested copies by mail, of a revocation 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 modification of an EERP or third party
EERP.
(E)
Additional prohibitions.1.
No person may sell, offer, or supply California gasoline that creates emissions
associated with increased ethanol blending unless the 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 condition is satisfied.
3. False reporting of any information
contained in an EERP or third party EERP application, or any supporting
documentation or amendments thereto, shall constitute a single, separate
violation of the requirements of this article for each day that the approved
EERP or third party EERP is in effect.
4. Any net exceedance at any given time,
taking into 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 constitute a single, separate violation of the requirements of
this article for each day the 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
constitute a single, separate violation of the requirements of this article for
each day after the applicable deadline until the requirement or condition is
satisfied:
a. Failure to report data or
failure to report data accurately in writing to the Executive Officer when
required by this section or the approved 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, during 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 excess of the approved EERP or third party
EERP.
6. Offsets shall
not include offsets or other reductions that are otherwise required by any
local, State, or federal rule, regulation, or statute, or that are achieved or
estimated from California gasoline not produced in the same air basin as the
gasoline associated with the EERP or third party EERP, or that are claimed
under section
2265.1.
(F) A cause of action against the producer or
importer or third party under this section shall be deemed to accrue on the
date(s) when the records establishing a violation of the EERP or third party
EERP are received by the Executive Officer.
(G)
Transferability. Rights
to use, or protection under, 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 blend, the producer or importer shall notify the Executive Officer in
writing, for receipt by the Executive Officer before the start of physical
transfer of the gasoline from the production facility or import facility, and
in no case less than 12 hours before the producer or importer either completes
physical transfer or commingles the final blend, with the following
information:
a. The company name, address,
phone number, and contact information,
b. The production facility or import facility
name, batch name, number, or other identification, the blend identity, grade of
California gasoline, the location (with sufficient specificity to allow ARB
inspectors to locate and sample the gasoline; this shall include, but is not
limited to, the name of the facility, address, and identification of the tank),
and other information that uniquely identifies the California gasoline subject
to the EERP or third party EERP,
c.
The estimated volume (in barrels),
d. The identity of the EERP or third party
EERP, which 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, sulfur content, benzene content, aromatics content,
olefins content, T50, T90, and oxygen content,
f. Documentation, calculations, emissions
test data, and other information that establishes the amount of NOx, total
ozone forming potential, and potency-weighted 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 for the producer or importer that all information
submitted with the notification is true and correct, and
h. Within 24 hours after the start of the
physical transfer, the date and time of the start of physical transfer from the
production facility or import facility.
2. A producer or importer may report an
actual volume that is less than the estimated volume, as long as notification
of the actual volume is received by the Executive Officer no later than 48
hours after completion of the physical transfer of the final blend from the
production facility or import facility. If notification of the actual volume is
not timely received by the Executive Officer, the reported estimated volume
shall be deemed the reported actual volume. If the actual volume is larger than
initially estimated, the producer or importer shall revise the reported
estimated volume by notifying the Executive Officer no later than 24 hours
after completion of the physical transfer of the final blend from the
production facility or import facility.
(I)
Notification of Increased Ethanol
Blending Offsets1.
Vehicle
scrappage. 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 information that establishes the
amount of NOx, total ozone forming potential, and potency-weighted toxics
associated with the vehicle scrappage and the date(s) the offsets
accrued.
2. Fuels. Except as
otherwise provided, the producer or importer shall notify the Executive Officer
in writing as provided in the EERP or third party EERP, for receipt by the
Executive Officer before the start of physical transfer of the gasoline from
the production facility or import facility, and in no case less than 12 hours
before the producer or importer either completes physical transfer or
commingles the final blend, with the information in subsection (H)1. as they
relate to other batches of California gasoline or diesel fuel used to offset
the emissions associated with increased ethanol blending.
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 information that establishes the amount of NOx, total
ozone forming potential, and potency-weighted toxics associated with the
incentive grants for cleaner-than-required engines, equipment and other sources
of pollution providing early or extra emission reductions and the date(s) the
offsets accrued.
4.
Other
reduction strategies. The producer or importer shall notify the
Executive Officer in writing as provided in the EERP or third party EERP with
all documentation, calculations, emissions test data, and other information
that establishes the amount of NOx, total ozone forming potential, and
potency-weighted toxics associated with the reduction strategy and the date(s)
the offsets accrued.
(7)
Election allowing a producer or
importer that produces gasoline to blend percentages of denatured ethanol into
CARBOB that are higher than the common carrier pipeline specifications for
oxygen and denatured ethanol until December 30, 2009.
(A) A producer or importer that produces
gasoline may elect to blend a higher volume of denatured ethanol into CARBOB
than the amount specified by the common carrier pipeline specification. The
producer or importer that produces gasoline may elect to do such blending after
it supplies from its production or import facility a CARBOB that concurrently
meets the common carrier pipeline CARBOB specification and a CARBOB PM
formulation having oxygen and denatured ethanol ranges greater than the common
carrier pipeline specification. A producer or importer that produces gasoline
may elect to do such blending before December 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 specification after December 30,
2009.
(B) In order to elect to
blend higher volumes of denatured 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 Executive Officer. The notification must be consistent with the
requirements specified in section
2266.5 and must include the
following additional information:
a.
Statement of election. A statement that the producer 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 common 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
common 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 actual volume upon receipt of the
producer's or importer's month end reconciliation report;
e.
Final blend
identification. The final blend identification number (batch number),
grade of CARBOB, production tank number, tank location, name of producer or
importer, name and phone number of contact person;
f.
Start of transfer. The
estimated date that transfers 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 producer or importer
has arranged for blending at higher volumes of denatured
ethanol.
2.
Agreement with an oxygenate blender. Before a producer or
importer notifies an oxygenate blender to blend higher volumes of denatured
ethanol into CARBOB, the producer or importer must enter into a contractual
agreement with the oxygenate blender stating that the oxygenate blender 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 blend 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 CARBOB that may be blended with higher
volumes of denatured ethanol, and the start of blending date which blending
higher volumes of denatured ethanol may begin. The notification must include a
statement that permission for blending higher volumes of denatured ethanol is
in accordance with the producer's or importer's election in section
2261(b)(7). The
notification must also include a statement that the oxygenate blender must not
exceed the volume percent of denatured ethanol, not exceed the volume of
CARBOB, not start blending higher volumes of denatured ethanol before the start
date, and not blend higher volumes of denatured ethanol after December 30,
2009. The producer or importer may 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 importer. 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 accordance 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 preceding calendar month. If the
twentieth occurs on a weekend or holiday, the notification shall be received by
the Executive Officer by the first business day after the twentieth of the
month. The notification must include:
a. The
final blend identification number;
b. With reference to each final blend
identification number:
i. The grade of
CARBOB;
ii. The estimated volume
(gallons) of CARBOB as reported 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 facility that receive the pipeline tender;
iv. Actual volume (gallons) of CARBOB
supplied from the final blend; and
v. Date of completion of physical transfer of
the last 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 higher volume of denatured ethanol than the amount specified by the common
carrier 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 month. The volume (gallons) of CARBOB
qualified under this section
2261(b)(7) that
was not blended at a rate higher than common carrier pipeline specifications
carried over from the previous calendar month. This volume is available for
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 provisions 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 ethanol into
CARBOB may occur beyond the date of such election. Any remaining volume
(gallons) that otherwise may be blended with higher volumes of denatured
ethanol are forfeited.
7.
Start of oxygenate blending date. The start of oxygenate
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 producer 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 higher volume of denatured ethanol. A producer or importer may not
blend or allow the blending of denatured ethanol at the oxygenate blending
facility that:
a. Exceeds the volume
available for blending at higher rates as determined by the notifications
identified in section (B)1.;
b.
Exceeds the denatured ethanol volume percent designated by the producer or
importer; or
c. Precedes the start
of oxygenate blending date.
9. Producer or importer must specify
denatured ethanol 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 demonstrate the production or import and the sale or supply
of all final blends elected under section (B). The records must show, at a
minimum:
a. Information regarding the
production or import of the final blend;
i.
The final blend identification number;
ii. The grade of CARBOB;
iii. The CARBOB PM formulation that shows
compliance with the common carrier pipeline specifications;
iv. The CARBOB PM formulation having oxygen
and denatured ethanol ranges greater than, and encompasses, the common carrier
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 blend.
b.
Information regarding sales or supply of the final 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 oxygenate blending; and
d. Information regarding the reconciliation
of gallons of CARBOB certified for a wider range at the production or import
facility and 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 Executive 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 accordance 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 denatured ethanol at the oxygenate blending
facility.
(C)
Oxygenate blender. An oxygenate blender that has 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 instructions specified in section (B)3.
from the producer or importer. The oxygenate blender must not exceed the
maximum volume percent of denatured ethanol to blend into CARBOB, the maximum
volume (gallons) of CARBOB that may be blend with higher volumes of denatured
ethanol, and must not begin such blending before the start of oxygenate
blending date.
2.
Month end
reconciliation by the oxygenate blender. The oxygenate blender
notifies the Executive Officer of the following. The notification 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
preceding calendar month. If the twentieth occurs on a weekend or holiday, the
notification shall be received by the Executive Officer by the first business
day after the twentieth of the month. If the oxygenate blender operates more
than one oxygenate blending facility, the information in the notification must
be presented per facility. The notification must include:
a.
Information regarding the receipts
of CARBOB. The pipeline tender identification number of each receipt
of CARBOB to the oxygenate blending facility by pipeline or identification
number of any receipt other than pipeline. With reference to each receipt:
i. Grade of CARBOB;
ii. The volume (gallons) of the CARBOB
pipeline tender;
iii. The date the
oxygenate facility began receiving the CARBOB pipeline tender;
iv. Name of the supplier of the CARBOB;
and
v. Identification number of the
storage tank that received the CARBOB pipeline tender;
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 delivered to the oxygenate
blending facility (by truck, rail car, etc.);
iii. The name of the supplier of the
denatured ethanol;
iv. The date the
denatured ethanol was received; and
v. Identification number of the storage tank
that received the denatured ethanol;
c.
Information regarding oxygenate
blending. For each day of the calendar month at the oxygenate blending
facility (if the oxygenate blender is oxygenate blending for more than one
producer or importer, the 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 importer, 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,
identify the producer or importer);
iii. If blending denatured ethanol at two
rates that are higher than the common carrier pipeline specifications, list the
CARBOB volumes 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 specifications;
v. The volume (gallons) of denatured ethanol
that was blended according to common carrier pipeline
specifications;
d.
Summary. Sums of the daily volumes (gallons) listed 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 oxygenate blender
compiles and maintains records that affirmatively demonstrate the 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 pipeline tender of CARBOB;
b. All information regarding the receipt of
each delivery of denatured ethanol;
c. All information regarding the daily
oxygenate blending activities at the rack. If the oxygenate blender is
oxygenate blending for more than one producer or importer, the information must
be listed for each producer 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 Executive 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 violation of section (C)1.
(D)
Protocols.
1.
Recordkeeping or reporting for
producers or importers. The Executive Officer may enter into a written
protocol with any producer or importer for the purpose of specifying
alternative recordkeeping or reporting requirements 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 protocol if he or she reasonably determines
that application of the regulatory requirements 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 producer's or importer's agreement to be bound by the terms of the
protocol.
2.
Recordkeeping
or reporting for oxygenate blenders. The Executive Officer may enter
into a written protocol with any oxygenate blender for the purpose of
specifying alternative recordkeeping or reporting requirements 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 determines 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 agreement to be bound
by the terms of the protocol.
3.
Notifications from producers or importers to oxygenate
blenders. The Executive Officer may enter into a written protocol with
any producer or importer for the purpose of specifying alternative notification
requirements from the producer or importer to the oxygenate blender to satisfy
the requirements of section (B)3. The Executive Officer may only enter into
such a protocol if he or she reasonably determines that application of the
regulatory requirements 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 importers. 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
application of the regulatory requirements under the protocol are not less
stringent 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 regulation prohibits the use of this election in a producer's
or importer's proprietary pipeline and terminaling 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. Producers or importers of each production or import facility
electing to use section
2261(b)(7) may
designate up to two levels of denatured ethanol when certifying its CARBOB. For
example, 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.