Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Assignment of a designated alternative
limit.
(1) A producer or importer that has
elected to be subject to an averaging limit specified in section
2262 may assign a designated
alternative limit to a final blend of California gasoline produced or imported
by the producer or importer 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 pursuant 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 designated
alternative limits for the gasoline.
(2)
(A) The
producer or importer shall notify the executive officer of the estimated volume
(in gallons), the designated alternative limit, the blend identity, and the
location of each final blend receiving a designated alternative limit. This
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 less than 12 hours before the producer or importer either completes
physical transfer or commingles the final blend. A producer or importer may
revise the reported estimated volume, as long as notification of the revised
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 or
import facility. If notification of the revised volume is not timely received
by the executive officer, the reported estimated volume shall be deemed the
reported actual volume.
(B) For
each final blend receiving a designated alternative limit exceeding an
applicable averaging limit in section
2262, the producer or importer
shall notify the executive officer of the date and time of the start of
physical 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 executive officer of the date and time of the completion of
physical transfer from the production or import facility, within 24 hours after
the completion of such physical 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 reasonably possible and may provide a written
explanation 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 (a)(3) have been met, timely 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 requirements in section (a)(2) and (c) shall be applied to
the producer's or importer's particular operations, as long as the executive
officer reasonably determines that application of the regulatory requirements
under the protocol is not less stringent or enforceable 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 the
protocol.
(5) Whenever the final
blend of a producer or importer includes volumes of gasoline the party has
produced or imported and volumes the party 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 produced 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
by 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 content, T90, and T50, as applicable, of the portion of
the final blend neither produced nor imported 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.
(1) No producer or
importer shall sell, offer for sale, or supply California gasoline in a final
blend to which the producer or importer has assigned 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 exceeds the volume reported
to the executive officer pursuant to section (a).
(2) No producer or importer shall sell, offer
for sale or supply California gasoline in a final blend to which the producer
or importer has assigned 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 than the volume
reported to the executive officer pursuant to section (a).
(c) Offsetting exceedances of an applicable
averaging limit.
(1) With respect to each
property for which a producer or importer has elected to be subject to the
averaging limit in section
2262, within 90 days before or
after the start 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 the property exceeding the applicable
averaging limit in section
2262, the producer or importer
shall complete physical transfer from the same production or import facility of
California gasoline in sufficient quantity and with a designated alternative
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 benzene, olefins, or
aromatic hydrocarbons in excess of the averaging limit must be offset within
the specified time period; the total mass of sulfur and the degree gallons of
T50 and T90 in excess of the averaging limit must be similarly offset.
For example, within 90 days before or after the start 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 olefin exceeding 4.0 percent by volume, the producer or importer
shall complete physical transfer from the same production or import facility of
California gasoline in sufficient 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 volume.
(2) A producer or importer may enter into a
protocol with the Executive Officer under which the producer or importer is
allowed to have up to six separate averaging banks at a single production or
import facility, applicable to operationally distinct products (e.g. different
grades of gasoline or oxygenated and nonoxygenated). The offset requirements
will apply independently for each separate averaging bank. Once 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) and (c)(1) will be applied to the producer's or importer's
particular operations and the separate averaging banks. In order to enter into
the protocol, the Executive Officer must determine that application of the
requirements under the protocol will not be less 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 be bound by the terms
of the protocol.
(d)
Designated alternative limits for PM alternative gasoline formulations. The
producer or importer of a final blend of California gasoline that is subject to
the PM averaging compliance option for one or more properties may assign a
designated alternative limit to the final blend by satisfying the notification
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, the PM averaging limit (if any) for each property subject to
the PM averaging compliance option shall replace any reference in this section
2264 to the averaging limit
specified in section
2262.
1. New
section filed 11-16-92; operative 12-16-92 (Register 92, No. 47).
2.
Amendment of subsections (a)(1)-(5), (b)(1)-(2), and (h) and new subsection (i)
filed 6-2-95; operative 7-3-95 (Register 95, No. 22).
3. Amendment
of subsections (a)(1) and (a)(4)-(5) and new subsection (j) filed 2-28-96;
operative 2-28-96 pursuant to Government Code section 11343.4(d) (Register 96,
No. 9).
4. Editorial correction of subsection (j) (Register 97, No.
17).
5. Change without regulatory effect providing correct placement
of subsection (j) filed 4-24-97 pursuant to section
100, title 1, California Code of
Regulations (Register 97, No. 17).
6. Amendment of section and NOTE
filed 8-3-2000; operative 9-2-2000 (Register 2000, No. 31).
7.
Amendment of subsection (a)(4), redesignation and amendment of former
subsection (c) as new subsection (c)(1) and new subsection (c)(2) filed
8-20-2001; operative 8-20-2001 pursuant to Government Code section 11343.4
(Register 2001, No. 34).
8. Amendment of subsection (d) filed
10-9-2012; operative 10-9-2012 pursuant to Government Code section 11343.4
(Register 2012, No. 41).
Note: Authority cited: Sections 39600, 39601, 43013,
43013.1, 43018 and 43101, Health and Safety Code; and Western Oil and Gas
Ass'n. v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.
Rptr. 249 (1975). Reference: Sections 39000, 39001, 39002, 39003, 39010, 39500,
39515, 39516, 41511, 43000, 43013, 43013.1, 43016, 43018 and 43101, Health and
Safety Code; and Western Oil and Gas Ass'n. v. Orange County Air Pollution
Control District, 14 Cal.3d 411, 121 Cal. Rptr. 249
(1975).
