Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
Assignment of designated emissions offsetting limits and percent change
in emissions values for batches of gasoline for which the emissions associated
with higher sulfur levels are being offset.
(1) A producer or an importer that produces
gasoline 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 hydrocarbon, and oxygen (maximum and minimum)
contents, and for the T90, T50, and RVP (during the RVP regulatory control
period in section
2262.4(b)(2)) for
each final blend of California gasoline produced by the producer or the
importer and satisfying the notification requirements in this section (a). In
no case shall a designated emissions offsetting 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 emissions 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 blend that has a percent change in emissions value
greater than 0.04 percent for oxides 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 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 the import
facility, and in no case less than 12 hours before the producer or the importer
that produces gasoline either completes physical transfer or commingles the
final blend, with the following information:
1. Justification for using the PM emissions
offsetting 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 different 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 which would have resulted in a passing PM
formulation but for the actual sulfur content of the blend,
3. The percent change in emissions values, as
they pertain to the PM emissions offsetting compliance option, for oxides of
nitrogen, total ozone forming potential, and potency-weighted toxics for the
targeted PM alternative specifications,
4. The company name, address, phone number,
and contact information,
5. 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 PM emissions offsetting
compliance option,
6. The estimated
volume (in barrels),
7. The
designated emissions offsetting limit for RVP, sulfur content, benzene content,
aromatics content, olefins content, T50, T90, and oxygen 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 nitrogen, total ozone forming potential, and
potency-weighted toxics for the final blend,
9. A statement, signed by a legal
representative for the producer or the importer that produces gasoline that all
information submitted with 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 facility or import facility.
(B) A producer or importer that produces
gasoline 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 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 physical
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 blend credit, the producer or the importer that
produces gasoline 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 the import facility, and in no case less than
12 hours before the producer or the importer that produces gasoline either
completes physical transfer or commingles the final blend, with the following
information:
1. The company name, address,
phone number, and contact information,
2. The production facility or the 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
associated with a final blend credit,
3. The estimated volume (in
barrels),
4. The designated
emissions offsetting limits for RVP, sulfur content, benzene content, aromatics
content, olefins content, T50, T90, 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 nitrogen, total ozone forming potential, and
potency-weighted toxics for the final blend,
6. A statement, signed by a legal
representative for the producer or the importer that produces gasoline that all
information submitted with the notification is true and correct, and
7. Within 24 hours after the completion of
the physical transfer, the date and time of the completion of physical transfer
from the production facility or the import facility.
(B) A producer or importer that produces
gasoline may report an actual volume that is more 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 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 reported actual volume. If the actual
volume is less than initially estimated, the producer 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 physical
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 specified in (a)(2) or (a)(3)
above, the producer or importer that produces gasoline 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)(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 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 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.
(b)
Additional prohibitions regarding
gasoline with designated 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, 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 that produces
gasoline shall sell, offer for sale or supply California gasoline with a final
blend credit, 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).
(3) Final blend
credits 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 or imported in
the same air basin as the gasoline with a final blend deficit, or that are
claimed under any alternative emission reduction plan.
(c)
Offsetting a final blend
deficit. With respect to each final blend for which a producer or
importer that produces gasoline has elected to be subject to the PM emissions
offsetting compliance option, within 90 days after the start of physical
transfer from a production facility 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 and for
the same emissions parameter (oxides of nitrogen, total ozone forming
potential, or potency-weighted toxics) to fully offset the final blend deficit.
For example, within 90 days after the start of physical
transfer from a production facility or import facility of 100 barrels of any
final blend of California gasoline to which a producer or importer that
produces gasoline has assigned a designated emissions offsetting limit which
results in a 0.10 percent increase in oxides of nitrogen, the producer or
importer that produces gasoline shall complete physical transfer from the same
production facility or import facility of California gasoline in sufficient
quantity and quality to offset the 6 deficit points for oxides of nitrogen. The
final blend deficit is calculated as:
Final Blend Deficit=(0.10-0.04) x 100=6
(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 emissions offsetting compliance option automatically terminates. Prior to
selling, supplying, 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 specifications, or TC limits for
its next final blend. The producer or importer that produces gasoline 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 or import
facility subsequent to the election.
1. New
section filed 8-29-2008; operative 8-29-2008 pursuant to Government Code
section 11343.4 (Register 2008, No. 35).
2. Amendment of subsection
(a)(3)(A) and redesignation of former subsections (a)(3)(A)(1)-(7) as new
subsections (a)(3)(A)1.-7. 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).
