Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Regulatory Standard.
(1)
500 parts per million sulfur
standard. On or after October 1, 1993, no person shall sell, offer for
sale, or supply any vehicular diesel fuel which has a sulfur content exceeding
500 parts per million by weight. Once the 15 parts per million sulfur content
standard becomes applicable to an activity in accordance with the phase-in
schedule in subsection (a)(3), the 500 parts per million sulfur content
standard shall no longer apply to that activity.
(2)
15 parts per million sulfur
standard. Starting June 2006 in accordance with the phase-in schedule
in subsection (a)(3), no person shall sell, offer for sale, supply or offer for
supply any vehicular diesel fuel having a sulfur content exceeding 15 parts per
million by weight.
(3)
2006
phase-in schedule. The 15 parts per million sulfur standard in section
(a)(2) shall apply in place of the 500 parts per million sulfur standard in
section (a)(1):
(A) Starting June 1, 2006 to
all sales, supplies or offers of vehicular diesel fuel from the production
facility or import facility at which it was produced or imported.
(B) Starting July 15, 2006 to all sales,
supplies, or offers of vehicular diesel fuel 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 vehicular diesel fuel from
a bulk plant to a retail outlet or purchaser-consumer
facility.
(C) Starting
September 1, 2006 to all sales, supplies, offers or movements of vehicular
diesel, including transactions directly involving the fueling of motor vehicles
at a retail outlet or bulk purchaser-consumer facility.
(4)
Phase-in of 2006 standard at
low-throughput facilities. The 15 parts per million sulfur standard in
section (a)(2) 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 diesel fuel demonstrates as an
affirmative defense that the exceedance of the pertinent standard was caused by
diesel fuel delivered to the retail outlet or bulk purchaser-consumer facility
prior to July 15, 2006, or delivered to the retail outlet or bulk
purchaser-consumer facility directly from a bulk plant prior to September 1,
2006.
(5)
Applicability of
standards to California nonvehicular diesel fuel.
(A) Activities involving California
nonvehicular diesel fuel (other than diesel fuel offered, sold or supplied
solely for use in locomotives or marine vessels) are also subject to this
section to the extent required by section
93114, title 17, California Code
of Regulations. As adopted, section 93114 requires each air pollution control
or air quality management district by December 12, 2004 to treat this section
2281 as applying to California
nonvehicular diesel fuel (other than diesel fuel offered, sold or supplied
solely for use in locomotives or marine vessels) as if it were vehicular diesel
fuel, and to enforce those requirements regarding California nonvehicular
diesel fuel, unless the district has proposed its own airborne toxic control
measure to reduce particulate emissions from diesel-fueled engines through
standards for nonvehicular diesel fuel.
(B) Activities involving California
nonvehicular diesel fuel used in harborcraft and most diesel-electric
intrastate locomotives are also subject to this section
2281 as if the fuel were vehicular
diesel fuel, to the extent required by section
2299, title 13, California Code of
Regulations, and section
93117, title 17, California Code
of Regulations. As adopted, these regulations make nonvehicular diesel fuel
used in most harborcraft in the South Coast Air Quality Management District
subject to the requirements of this section
2281 starting January 1, 2006, and
make all California nonvehicular diesel fuel used in most harborcraft and
diesel-electric intrastate locomotives subject to this section
2281 starting January 1,
2007.
(6) Subsections
(a)(1) and (2) shall not apply to a sale, offer for sale, or supply of diesel
fuel to a refiner where the refiner further processes the diesel fuel at the
refiner's refinery, prior to any subsequent sale, offer for sale, or supply of
the diesel fuel.
(b)
Definitions.
For the purposes of this section:
(0.2) "Bulk purchaser-consumer" means a
person that purchases or otherwise obtains diesel fuel in bulk and then
dispenses it into the fuel tanks of motor vehicles owned or operated by the
person.
(0.5) "Bulk plant" means an
intermediate diesel fuel distribution facility where delivery of diesel fuel to
and from the facility is solely by truck.
(0.8) "California nonvehicular diesel fuel"
means any diesel fuel that is not vehicular diesel fuel and that is sold or
made available for use in engines in California.
(1) "Diesel fuel" means any fuel that is
commonly or commercially known, sold or represented as diesel fuel, including
any mixture of primarily liquid hydrocarbons -- organic compounds consisting
exclusively of the elements carbon and hydrogen -- that is sold or represented
as suitable for use in an internal combustion, compression-ignition
engine.
(2) "Executive Officer"
means the executive officer of the Air Resources Board, or his or her
designee.
(3) "Further process"
means to perform any activity on diesel fuel, including distillation,
desulfurization, or blending, for the purpose of bringing the diesel fuel into
compliance with the standard in subsection (a)(1).
(3.5) "Marine vessel" has the meaning set
forth in section
39037.1
of the Health and Safety Code.
(4)
"Motor vehicle" has the same meaning as defined in section
415 of the
Vehicle Code.
(5) "Produce" means
to convert liquid compounds which are not diesel fuel into diesel
fuel.
(6) "Producer" means any
person who produces vehicular diesel fuel in California.
(7) "Refiner" means any person who owns,
leases, operates, controls or supervises a refinery.
(8) "Refinery" means a facility that produces
liquid fuels by distilling petroleum.
(9) "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 50,000 barrels per stream
day;
(B) Has not been at any time
since September 1, 1988, owned or controlled by any refiner that at the same
time owned or controlled refineries in California with a total combined crude
oil capacity of more than 50,000 barrels per stream day; and
(C) Has not been at any time since September
1, 1988, owned or controlled by any refiner that at the same time owned or
controlled refineries in the United States with a total combined crude oil
capacity of more than 137,500 barrels per stream day.
(10) "Stream day" means 24 consecutive hours
of actual operation of a refinery.
(11) "Supply" means to provide or transfer a
product to a physically separate facility, vehicle, or transportation
system.
(12) "Vehicular diesel
fuel" means any diesel fuel (A) which is not conspicuously identified as a fuel
which may not lawfully be dispensed into motor vehicle fuel tanks in
California; or (B) which the person selling, offering for sale, or supplying
the diesel fuel knows will be dispensed into motor vehicle fuel tanks in
California; or (C) which the person selling, offering for sale, or supplying
the diesel fuel in the exercise of reasonable prudence should know will be
dispensed into motor vehicle fuel tanks in California, and that is not the
subject of a declaration under penalty of perjury by the purchaser, offeree or
recipient stating that s/he will not sell, offer for sale, or transfer the fuel
for dispensing, or dispense the fuel, into motor vehicle fuel tanks in
California.
(c) Test
Method.
(1)
Test Method for 500 ppm
sulfur standard. The sulfur content of diesel fuel limitation of 500
parts per million specified in subsection (a)(1) shall be determined by ASTM
Test Method D 2622-94, which is incorporated herein by reference, or any other
test method determined by the executive officer to give equivalent
results.
(2)
Test Method
for 15 ppm sulfur standard. The sulfur content of diesel fuel
limitation of 15 parts per million specified in subsection (a)(2) shall be
determined by ASTM Test Method D 5453-93, which is incorporated herein by
reference, or any other test method determined by the executive officer to give
equivalent results.
(d)
Presumed Sulfur Content of Diesel Fuel Represented As Being for Nonvehicular
Use.
(1) All diesel fuel which has been
identified or represented as a fuel which may not be dispensed into motor
vehicles in California, and which would otherwise be subject to the 500 parts
per million by weight sulfur content standard in subsection (a)(1), shall be
deemed to have a sulfur content exceeding 500 parts per million by weight, as
determined by a test method identified in subsection (c)(1), unless the fuel is
tested in accordance with a method identified in subsection (c)(1) and is shown
to have a sulfur content of 500 parts per million by weight or less.
(2) All diesel fuel which has been identified
or represented as a fuel which may not be dispensed into motor vehicles in
California, and which would otherwise be subject to the 15 parts per million by
weight sulfur content standard in subsection (a)(2), shall be deemed to have a
sulfur content exceeding 15 parts per million by weight, as determined by a
test method identified in subsection (c)(2), unless the fuel is tested in
accordance with a method identified in subsection (c)(2) and is shown to have a
sulfur content of 15 parts per million by weight or less.
(e) Variances.
(1) Any person who cannot comply with the
requirements set forth in subsection (a)(1) or (a)(2) as applicable because of
reasons beyond the person's reasonable control may apply to the executive
officer for a variance. The application shall set forth:
(A) the specific grounds upon which the
variance is sought;
(B) the
proposed date(s) by which compliance with the provisions of subsection (a)(1)
or (a)(2) will be achieved; and
(C)
a plan reasonably detailing the method by which compliance will be
achieved.
(2) Upon
receipt of an application for a variance containing the information required in
subsection (e)(1), the executive officer shall hold a hearing to determine
whether, or under what conditions and to what extent, a variance from the
requirements in subsection (a)(1) or (a)(2) as applicable is necessary and will
be permitted. Notice of the time and place of the hearing shall be sent to the
applicant by certified mail not less than 20 days prior to the hearing. Notice
of the hearing shall also be submitted for publication in the California
Regulatory Notice Register and sent to every person who requests such notice,
not less than 20 days prior to the hearing.
(3) At least 20 days prior to the hearing,
the application for the variance shall be made available to the public for
inspection. Interested members of the public shall be allowed a reasonable
opportunity to testify at the hearing and their testimony shall be
considered.
(4) No variance shall
be granted unless all of the following findings are made:
(A) that, because of reasons beyond the
reasonable control of the applicant, requiring compliance with subsection
(a)(1) or (a)(2) as applicable would result in an extraordinary economic
hardship;
(B) that the public
interest in mitigating the extraordinary hardship to the applicant by issuing
the variance outweighs the public interest in avoiding any increased emissions
of air contaminants which would result from issuing the variance.
(C) that the compliance plan proposed by the
applicant can reasonably be implemented and will achieve compliance as
expeditiously as possible.
(5) Any variance order shall specify a final
compliance date by which the requirements in subsection (a)(1) or (a)(2) as
applicable will be achieved. Any variance order shall also contain a condition
that specified increments of progress necessary to assure timely compliance be
achieved, and such other conditions, including limitations on the sulfur
content of diesel fuel produced for use in motor vehicles, that the executive
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.
(6) The executive officer may
require, as a condition of granting a variance, that a cash bond, or a bond
executed by two or more good and sufficient sureties or by a corporate surety,
be posted by the party to whom the 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 providethat, if the party granted
the variance fails to perform such work by the agreed date, the cash bond shall
be forfeited to the state board, or the corporate surety or sureties shall have
the option of promptly remedying the variance default or paying to 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.
(7) No variance from the requirements set
forth in subsection (a)(1) or (a)(2) as applicable based on a plan for
compliance which includes the installation of major additional equipment shall
be issued to a producer where installation of the equipment was not included in
a compliance plan or first update submitted pursuant to subsection (f). No such
variance shall have a duration of more than three years.
(8) No variance which is issued due to
conditions of breakdown, repair, or malfunction of equipment shall have a
duration, including extensions, of more than six months.
(9) The executive officer may, after holding
a hearing without complying with the provisions of subsections (e)(2) and
(e)(3), issue an emergency variance to a person from the requirements of
subsections (a)(1) or (a)(2) as applicable upon a showing of reasonably
unforeseeable extraordinary hardship and good cause that a variance is
necessary. In connection with the issuance of an emergency variance, the
executive officer may waive the requirements of subsection (e)(6). No emergency
variance may extend for a period of more than 45 days. If the applicant for an
emergency variance does not demonstrate that he or she can comply with the
provisions of subsection (a)(1) or (a)(2) as applicable within such 45-day
period, an emergency variance shall not be granted unless the applicant makes a
prima facie demonstration that the findings set forth in subsection (e)(4)
should be made. The executive officer shall maintain 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 to this paragraph (e)(9), and
shall provide advance telephone notice to any such person.
(10) A variance shall cease to be effective
upon failure of the party to whom the variance was granted substantially to
comply with any condition.
(11)
Upon the application of any person, the executive officer may review and for
good cause modify or revoke a variance from the requirements of subsection
(a)(1) or (a)(2) as applicable after holding a hearing in accordance with the
provisions of subsections (e)(2) and (e)(3).
(g) Submittal of Compliance Plan. Each
producer shall, by September 1, 2004, submit to the executive officer a plan
showing the producer's schedule for achieving compliance with subsection
(a)(2). Each producer shall, by July 1, 2005, submit an update of the
plan.
1. Change
without regulatory effect renumbering former section
2255 to section 2281 filed 9-17-91
pursuant to section
100, title 1, California Code of
Regulations (Register 92, No. 4).
2. New subsections (h)-(h)(5)
filed 10-21-93 as an emergency; operative 10-21-93 (Register 93, No. 43). A
Certificate of Compliance must be transmitted to OAL by 2-18-94 or emergency
language will be repealed by operation of law on the following
day.
3. Repeal of subsections (h)(1)-(h)(5) by operation of
Government Code section
11346.1(f)
(Register 94, No. 18).
4. Amendment of subsection (c) filed 7-25-97;
operative 8-24-97 (Register 97, No. 30).
5. Amendment filed
7-15-2004; operative 8-14-2004 (Register 2004, No. 29).
6. New
subsection (a)(5)(A) designator and new subsection (a)(5)(B) filed 7-5-2005;
operative 8-4-2005 (Register 2005, No. 27).
Note: Authority cited: Sections
39600,
39601,
39667,
43013,
43018,
and
43101
of the 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,
39667,
41511,
43000,
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).