[Federal Register Volume 71, Number 35 (Wednesday, February 22, 2006)]
[Rules and Regulations]
[Pages 8973-8986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-1612]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2005-0170; FRL-8035-1]
Regulation of Fuels and Fuel Additives: Removal of Reformulated
Gasoline Oxygen Content Requirement and Revision of Commingling
Prohibition To Address Non-Oxygenated Reformulated Gasoline
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
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SUMMARY: In the Energy Policy Act of 2005 (Energy Act), Congress
removed the oxygen content requirement for reformulated gasoline (RFG)
in section 211(k) of the Clean Air Act (CAA). To be consistent with the
current CAA section 211(k), this direct final rule amends the fuels
regulations to remove the oxygen content requirement for RFG. This rule
also removes requirements which were included in the regulations to
implement and ensure compliance with the oxygen content requirement. In
addition, this rule extends the current prohibition against combining
VOC-controlled RFG blended with ethanol with VOC-controlled RFG blended
with any other type of oxygenate from January 1 through September 15,
to also prohibit combining VOC-controlled RFG blended with ethanol with
non-oxygenated VOC-controlled RFG during that time period, except in
limited circumstances authorized by the Act.
DATES: This rule is effective on May 5, 2006, or April 24, 2006,
whichever is later, without further notice unless we receive adverse
comment by March 24, 2006. If EPA receives adverse comment, we will
publish a timely withdrawal in the Federal Register informing the
public that the portion of the final rule on which adverse comment was
received will not take effect. Those portions of the rule on which
adverse comment was not received will go into effect on the effective
date noted above.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2005-0170 by one of the following methods:
1. http://www.regulations.gov: Follow the on-line instructions for
submitting comments.
[[Page 8974]]
2. E-mail: Group [email protected]. Attention Docket ID No.
OAR-2005-0170.
4. Mail: Air and Radiation Docket, Environmental Protection Agency,
Mailcode: 6406J, 1200 Pennsylvania Ave., NW., Washington, DC 20460.
Please include a total of two copies. In addition, please mail a copy
of your comments on the information collection provisions to the Office
of Information and Regulatory Affairs, Office of Management and Budget
(OMB), Attn: Desk Officer for EPA, 725 17th St. NW., Washington, DC
20503.
5. Hand Delivery: EPA Docket Center, Environmental Protection
Agency, 1301 Constitution Avenue, NW., Room B102, Mail Code 6102T,
Washington, DC 20460. Such deliveries are only accepted during the
Docket's normal hours of operation, and special arrangements should be
made for deliveries of boxed information.
Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2005-0170. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov is an
``anonymous access'' systems, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses. For additional information about EPA's public
docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
We are only taking comment on issues related to the removal of the
oxygen requirement for RFG and associated compliance requirements, and
the provisions regarding the combining of ethanol blended RFG with non-
oxygenated RFG and provisions for retailers regarding the combining of
ethanol blended RFG with non-ethanol blended RFG. Comments on any other
issues or provisions in the RFG regulations are beyond the scope of
this rulemaking.
Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy
form. Publicly available docket materials are available either
electronically in http://www.regulations.gov or in hard copy at the Air
and Radiation Docket, EPA/DC, EPA West, Room B102, 1301 Constitution
Ave., NW., Washington, DC. The Public Reading Room is open from 8:30
a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The
telephone number for the Public Reading Room is (202) 566-1744, and the
telephone number for the Air and Radiation Docket is (202) 566-1742.
FOR FURTHER INFORMATION CONTACT: Marilyn Bennett, Transportation and
Regional Programs Division, Office of Transportation and Air Quality
(6406J), Environmental Protection Agency, 1200 Pennsylvania Avenue,
NW., Washington, DC 20460; telephone number: (202) 343-9624; fax
number: (202) 343-2803; e-mail address: [email protected].
SUPPLEMENTARY INFORMATION: EPA is publishing this rule without prior
proposal because we view this action to be noncontroversial and
anticipate no adverse comment. However, in the ``Proposed Rules''
section of today's Federal Register publication, we are publishing a
separate document that will serve as the proposal to adopt the
provisions in this Direct Final Rule if adverse comments are filed.
This rule is effective on May 5, 2006, or April 24, 2006, whichever is
later, without further notice unless we receive adverse comment by
March 24, 2006. If EPA receives adverse comment, we will publish a
timely withdrawal in the Federal Register informing the public that the
portion of the rule on which adverse comment was received will not take
effect. We will address all public comments in a subsequent final rule
based on the proposed rule. We will not institute a second comment
period on this action. Any parties interested in commenting must do so
at this time. Any distinct amendment, paragraph, or section of today's
rule for which we do not receive adverse comment will become effective
on the date set out above, notwithstanding any adverse comment on any
other distinct amendment, paragraph, or section of today's rule.
EPA is also publishing today a direct final rule that removes the
oxygen content requirement for RFG, and makes associated changes in the
fuels regulations, for California only. Although the California rule is
similar in effect to this one, it has an earlier effective date.
I. General Information
A. Does This Action Apply To Me?
Entities potentially affected by this action include those involved
with the production and importation of conventional gasoline motor
fuel. Regulated categories and entities affected by this action
include:
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Examples of
NAICS codes SIC codes potentially
Category \a\ \b\ regulated
parties
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Industry.................... 324110 2911 Petroleum
Refiners,
Importers.
Industry.................... 422710 5171 Gasoline
Marketers and
Distributors.
422720 5172 ................
Industry.................... 484220 4212 Gasoline
Carriers.
484230 4213 ................
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\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) system code.
[[Page 8975]]
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that EPA is now aware
could be potentially regulated by this action. Other types of entities
not listed in the table could also be regulated. To determine whether
your entity is regulated by this action, you should carefully examine
the applicability criteria of part 80, subparts D, E and F of title 40
of the Code of Federal Regulations. If you have any question regarding
applicability of this action to a particular entity, consult the person
in the preceding FOR FURTHER INFORMATION CONTACT section above.
B. What Should I Consider as I Prepare My Comments for EPA?
1. Submitting CBI. Do not submit this information to EPA through
http://www.regulations.gov or e-mail. Clearly mark the part or all of
the information that you claim to be CBI. For CBI information in a disk
or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM
as CBI and then identify electronically within the disk or CD ROM the
specific information that is claimed as CBI). In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
2. Tips for Preparing Your Comments. When submitting comments,
remember to:
1. Identify the rulemaking by docket number and other identifying
information (subject heading, Federal Register date and page number).
2. Follow directions--The agency may ask you to respond to specific
questions or organize comments by referencing a Code of Federal
Regulations (CFR) part or section number.
3. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
4. Describe any assumptions and provide any technical information
and/or data that you used.
5. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
6. Provide specific examples to illustrate your concerns, and
suggest alternatives.
7. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
8. Make sure to submit your comments by the comment period deadline
identified.
3. Docket Copying Costs. You may be charged a reasonable fee for
photocopying docket materials, as provided in 40 CFR part 2.
C. Outline of This Preamble
I. General Information
II. Removal of the RFG Oxygen Content Requirement
III. Combining Ethanol Blended RFG With Non-Ethanol Blended RFG
IV. Environmental Effects of This Action
V. Statutory and Executive Order Reviews
VI. Statutory Provisions and Legal Authority
II. Removal of the RFG Oxygen Content Requirement
Section 211(k) of the 1990 Amendments to the CAA required
reformulated gasoline (RFG) to contain oxygen in an amount that equals
or exceeds 2.0 weight percent. CAA section 211(k)(2)(B). Accordingly,
EPA's current regulations require RFG refiners, importers and oxygenate
blenders to meet a 2.0 or greater weight percent oxygen content
standard. 40 CFR 80.41. Recently, Congress passed legislation which
amended section 211(k) of the CAA to remove the RFG oxygen
requirement.\1\ To be consistent with the current CAA section 211(k),
today's rule modifies the RFG regulations to remove the oxygen standard
in Sec. 80.41.\2\
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\1\ Energy Policy Act of 2005, Public Law No. 109-58 (HR6),
section 1504(a), 119 STAT 594, 1076-1077(2005).
\2\ The RFG regulations were promulgated under authority of CAA
section 211(c) as well as CAA section 211(k). The regulations were
adopted under section 211(c) primarily for the purpose of applying
the preemption provisions in section 211(c)(4). See 59 FR 7809
(February 16, 1994.)
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Today's rule also modifies several other sections of the RFG
regulations which contain provisions designed to implement and ensure
compliance with the oxygen standard. The modifications to the affected
sections are listed in the following table:
Sec. 80.2(ii)................................. Removes oxygen in the
definition of
``reformulated
gasoline credit.''
With the removal of
the oxygen standard,
there is no basis for
the generation of
oxygen credits.
Sec. Sec. 80.41(e) and (f)................... Removes the per-gallon
and averaged oxygen
standards for Phase
II Complex Model RFG
\3\
Sec. 80.41(o)................................. Removes the provisions
relating to oxygen
survey failures. With
the removal of the
oxygen standard,
oxygen surveys will
no longer be needed.
Sec. 80.41(q)................................. Removes reference to
Sec. 80.41(o). Also
removes reference to
oxygenate blenders
since oxygenate
blenders were subject
only to adjusted
standards in the case
of an oxygen survey
failure and not any
other survey failure.
Sec. 80.65 heading............................ Removes oxygenate
blenders from the
heading since
oxygenate blenders
were only responsible
for demonstrating
compliance with the
oxygen standard which
has been removed.
Sec. 80.65(c)................................. Removes requirements
relating to
compliance with the
oxygen standard which
have been removed.
Sec. 80.65(d)................................. Removes the
designation
requirement relating
to oxygen content,
removes the RBOB
designation
categories of ``any
oxygenate'' and
``ether only,'' and
adds a requirement
for RBOB to be
designated regarding
the type and amount
of oxygenate required
to be added.
Sec. 80.65(h)................................. Removes the
requirement for
oxygenate blenders to
comply with the audit
requirements under
subpart F since they
will no longer be
required to
demonstrate
compliance with the
oxygen standard.
Sec. 80.67(a)................................. Removes the option to
comply with the
oxygen standard on
average for oxygenate
blenders since there
no longer is an
oxygen standard. Also
removes provisions
for refiners and
importers to use
gasoline that exceeds
the average standard
for oxygen to offset
gasoline which does
not achieve the
average standard for
oxygen.
Sec. 80.67(b)................................. Removes requirements
relating to oxygenate
blenders who meet the
oxygen standard on
average since there
no longer is an
oxygen standard.
Sec. 80.67(f)................................. Removes requirements
relating to
compliance with the
oxygen standard on
average since there
no longer is an
oxygen standard.
Sec. 80.67(g)................................. Removes requirements
relating to
compliance
calculations for
meeting the oxygen
standard on average,
since there no longer
is an oxygen
standard. Also
removes requirements
relating to the
generation and use of
oxygen credits.
Sec. 80.67(h)................................. Removes requirements
relating to the
transfer of oxygen
credits.
[[Page 8976]]
Sec. 80.68(a) and (b)......................... Removes references to
oxygenate blenders
since, with the
removal of the
requirement for
oxygen survey, they
are no longer subject
to survey
requirements. Also
removes reference to
oxygen regarding
consequences of a
failure to conduct a
required survey.
Sec. 80.68(c)................................. Removes general survey
requirements relating
to oxygen surveys.
Sec. 80.73.................................... Clarifies the
applicability of this
section to oxygenate
blenders.
Sec. 80.74(c)................................. Removes recordkeeping
requirements for
oxygenate blenders
who comply with the
oxygen standard on
average, since they
no longer will be
required to
demonstrate
compliance with an
oxygen standard. Also
removes reference to
``types'' of credits,
since there now is
only one type of
credit (i.e.,
benzene.)
Sec. 80.74(d)................................. Revises this paragraph
to clarify
recordkeeping
requirements for
oxygenate blenders.
Sec. 80.75 heading and paragraph (a).......... Removes reporting
requirements for
oxygenate blenders
since they no longer
will be required to
demonstrate
compliance with an
oxygen standard.
Sec. 80.75(f)................................. Removes requirement
for submitting oxygen
averaging reports
since there no longer
is a requirement to
comply with the
oxygen standard.
Sec. 80.75(h)................................. Removes credit
transfer report
requirements for
oxygen credits, since
oxygen credits will
no longer be
generated.
Sec. 80.75(i)................................. Removes requirement
for oxygenate
blenders to submit a
report identifying
each covered area
that was supplied
with averaged RFG,
since they no longer
will be required to
demonstrate
compliance with an
oxygen standard.
Sec. 80.75(l)................................. Removes reporting
requirement for
oxygenate blenders
who comply with the
oxygen standard on a
per-gallon basis,
since they are no
longer required to
demonstrate
compliance with an
oxygen standard.
Sec. 80.75(m)................................. Removes requirement
for oxygenate
blenders to submit a
report of the audit
required under Sec.
80.65(h), since
oxygenate blenders
will no longer be
required to comply
with the audit
requirement.
Sec. 80.75(n)................................. Removes requirement
for oxygenate
blenders to have
reports signed and
certified, since they
no longer will be
required to submit
reports under this
section.
Sec. 80.76(a)................................. Clarifies registration
requirements for
oxygenate blenders.
Sec. 80.77(g)................................. Removes product
transfer
documentation
requirement for
oxygen content.
Sec. 80.77(i)................................. Removes requirement
for RBOB to be
identified on product
transfer documents as
suitable for blending
with ``any-
oxygenate,'' ``ether-
only,'' since these
categories have been
removed.
Sec. 80.78(a)................................. Removes the
prohibition against
producing and
marketing RFG that
does not meet the
oxygen minimum
standard since the
oxygen standard has
been removed. Also
removes requirements
to meet the oxygen
minimum standard
during transition
from RBOB to RFG in a
storage tank.
(Today's rule also
removes the provision
in Sec. 80.78(a)(1)
regarding compliance
with the maximum
oxygen standard in
Sec. 80.41 for
simple model RFG. See
footnote 3.)
Sec. 80.79.................................... Removes quality
assurance requirement
to test for
compliance with the
oxygen standard.
Sec. 80.81(b)................................. Removes exemptions for
California gasoline
survey and
independent analysis
requirements for
oxygenate blenders
since they are no
longer subject to
these requirements.
Sec. 80.125(a), (c) and (d)................... Removes attest
engagement auditor
requirements for
oxygenate blenders,
since they are no
longer required to
conduct attest
engagement audits.
Sec. 80.126(b)................................ Revises attest
engagement definition
of credit trading
records to remove
reference to oxygen
credits.
Sec. 80.128(e)................................ Removes reference to
RBOB designations of
``any-oxygenate'' and
``ether-only'' with
regard to refiner and
importer contracts
with downstream
oxygenate blenders,
since these
designations have
been removed from the
regulations.
Sec. 80.129................................... Removes and reserves
this section which
provided for
alternative attest
engagement procedures
for oxygenate
blenders, since they
are no longer
required to conduct
attest audits.
Sec. 80.130(a)................................ Removes requirement
for a certified
public accountant or
an internal auditor
certified by the
Institute of Internal
Auditors, Inc. to
issue an attest
engagement report to
blenders, since they
are no longer
required to conduct
attest audits.
Removes requirement
for blenders to
provide a copy of the
auditor's report to
EPA.
Sec. 80.133(h)................................ Removes references to
``any-oxygenate'' and
``ether-only'' RBOB
under Sec.
80.69(a)(8) since
this section has been
removed.
Sec. 80.134................................... Removes this section
which provides attest
procedures for
oxygenate blenders
since they are no
longer required to
conduct attest
audits.
Today's rule also modifies the provisions for downstream oxygenate
blending in Sec. 80.69. Under the current regulations, some refiners
and importers produce or import a product called ``reformulated
gasoline blendstock for oxygenate blending,'' or RBOB, which is
gasoline that becomes RFG upon the addition of an oxygenate. The
refiner or importer of the RBOB determines the type(s) and amount (or
range of amounts) of oxygenate that must be added to the RBOB. The RBOB
is then transported to an oxygenate blender downstream from the refiner
or importer who adds the type and amount of oxygenate designated for
the RBOB by the refiner or importer. The RBOB refiner or importer
includes the designated amount of oxygenate in its emissions
performance compliance calculations for the RBOB, however, it is the
oxygenate blender who actually adds the oxygenate to the RBOB to comply
with the 2.0 weight percent oxygen standard for the RFG that is
produced by blending oxygenate into the RBOB. The regulations require
oxygenate blenders to conduct testing for oxygen content to ensure that
each batch of RFG complies with the oxygen standard. With the removal
of the oxygen standard, the current requirement for oxygenate blenders
to conduct testing to ensure compliance with the oxygen standard will
no longer be necessary. Accordingly, the provisions for oxygenate
blenders in Sec. 80.69 have been modified to remove the requirement
for oxygenate blenders
[[Page 8977]]
to test RFG for compliance with the oxygen standard.
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\3\ The regulations also include oxygen minimum standards for
simple model RFG and Phase I complex Model RFG, and an oxygen
maximum standard for simple model RFG. See Sec. Sec. 80.41(a)
through (d), and (g). These standards are no longer in effect and
today's rule does not modify the regulations to remove these
standards or compliance requirements relating to these standards,
except where such requirements are included in provisions requiring
other changes in today's rule.
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Although there will no longer be an oxygen content requirement for
RFG, we believe that many refiners and importers will want to continue
to include oxygenate blended downstream in their emissions performance
compliance calculations. As a result, the category of RBOB is being
retained and RBOB refiners and importers will be required to comply
with the contract and quality assurance (QA) oversight requirements in
Sec. 80.69 for any RBOB produced or imported.\4\
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\4\ EPA is developing a rule which will allow RBOB refiners and
importers to use an alternative method of quality assurance (QA)
oversight of downstream oxygenate blenders in lieu of the contract
and QA requirements in Sec. Sec. 80.69(a)(6) and (a)(7). This
alternative method consists of a QA sampling and testing survey
program carried out by an independent surveyor pursuant to a survey
plan approved by EPA. This alternative QA method is available to
RBOB refiners and importers under enforcement discretion until the
rule is promulgated, or December 31, 2007, whichever is earlier. See
Letter to Edward H. Murphy, Downstream General Manager, American
Petroleum Institute, dated December 22, 2005, from Grant Y.
Nakayama, Assistant Administrator, Office of Enforcement and
Compliance Assurance, U.S. Environmental Protection Agency.
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Under the current regulations, RBOB refiners and importers are
required to have a contract with the downstream oxygenate blender and
conduct QA oversight testing of the oxygenate blending operation to
ensure that the proper type and amount of oxygenate is added
downstream. Sec. 80.69(a)(6) and (7). The regulations also provide
that, in lieu of complying with these requirements, a refiner or
importer may designate one of two generic categories of oxygenates to
be added to the RBOB, and assume for purposes of its emissions
compliance calculations that the minimum amount of oxygenate needed to
result in RFG containing 2.0 weight percent oxygen will be added
downstream. Sec. 80.69(a)(8). RBOB refiner or importer compliance with
the contract and oversight requirements is not required in this
situation because, as discussed above, the oxygenate blender has been
required to meet the 2.0 weight percent oxygen standard and conduct
testing designed to ensure that each batch of RFG complies with the
oxygen standard.\5\ Where an RBOB refiner or importer wishes to include
a larger amount of oxygenate in its compliance calculations (i.e, an
amount that would result in RFG containing more than 2.0 weight percent
oxygen), the refiner or importer must comply with the contract and
oversight requirements in Sec. 80.69(a)(6) and (7) to ensure that the
proper type and amount of oxygenate is added.
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\5\ For a discussion of the downstream oxygenate blending
requirements, see the preamble to the RFG final rule at 59 FR 7770
(February 16, 1994).
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Because oxygenate blenders will no longer be conducting testing to
ensure compliance with the oxygen standard, we believe that RBOB
refiner or importer compliance with the contract and QA oversight
requirements will be necessary for RBOB designated to be blended with
any amount of oxygenate, including an amount of oxygenate that would
result in RFG containing 2.0 weight percent (or less) oxygen. As a
result, today's rule requires RBOB refiners and importers to comply
with the contract and QA oversight requirements in Sec. 80.69 for any
RBOB produced or imported. This approach is consistent with the
oversight requirements in Sec. 80.101(d)(4) for refiners and importers
of conventional gasoline who wish to include oxygen added downstream
from the refinery or importer in anti-dumping emissions compliance
calculations.
Although oxygenate blenders will no longer be subject to the oxygen
standard and associated testing requirements, we believe that the
current requirements for oxygenate blenders to be registered with EPA,
to add the specific type(s) and amount (or range of amounts) of
oxygenate designated for the RBOB, and to maintain records of their
blending operation continue to be necessary in order to ensure
compliance with, and facilitate enforcement of, the emissions
performance standards for the RFG produced by blending oxygenate with
RBOB downstream. As a result, these oxygenate blender requirements are
being retained.
The effective date for the removal of the oxygen requirement will
occur during 2006.\6\ As a result, refiners, importers and oxygenate
blenders will be subject to the oxygen standard for the months in 2006
prior to the effective date of this rule. The current regulations allow
parties to demonstrate compliance either on a per-gallon basis or on an
annual average basis. Parties wishing to base their compliance on the
per-gallon requirements, may formulate and sell RFG without oxygen
after the effective date of the rule. EPA will interpret its
regulations regarding annual average as follows. Parties may
demonstrate compliance based on the average oxygen content of RFG
during the months prior to the effective date for the removal of the
oxygen content requirement. In addition, any refiner, importer or
oxygenate blender who is unable to meet the annual average oxygen
standard in 2006 based on the months prior to the effective date for
the removal of the oxygen content standard may include all of the
oxygenated RFG it produces or imports during 2006 in its annual average
compliance calculations.
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\6\ The effective date for this rule is May 5, 2006, or 60 days
from the date of publication of the rule in the Federal Register,
whichever is later.
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III. Combining Ethanol Blended RFG With Non-Ethanol Blended RFG
As discussed above, section 211(k) required RFG to contain a
minimum of 2.0 weight percent oxygen, and the current fuels regulations
reflect this requirement. Refiners, importers and oxygenate blenders
have used different oxygenates to meet this requirement. RFG that
contains ethanol must be specially blended to account for the RVP
``boost'' that ethanol provides, and the consequent possibility of
increased VOC emissions. EPA's existing regulations prohibit the
commingling of ethanol-blended RFG with RFG containing other oxygenates
because the non-ethanol RFG is typically not able to be mixed with
ethanol and still comply with the VOC performance standards. Since all
RFG is currently required to contain oxygen, the regulations do not now
contain a prohibition against combining ethanol-blended RFG with non-
oxygenated RFG. With the removal of the oxygen content requirement for
RFG, EPA expects that refiners and importers will be producing some RFG
without oxygen and some with ethanol or other oxygenates. Mixing
ethanol-blended RFG with non-oxygenated RFG has the same potential to
create an RVP ``boost'' for the non-oxygenated gasoline as mixing
ethanol-blended RFG with RFG blended with other oxygenates. This is of
particular concern regarding RFG because most refiners and importers
comply with the RFG VOC emissions performance standard on an annual
average basis calculated at the point of production or importation. All
downstream parties are prohibited from marketing RFG which does not
comply with a less stringent downstream VOC standard. However, even
though the combined gasoline may meet the downstream VOC standard,
combining ethanol-blended RFG with non-oxygenated RFG may cause some
gasoline to have VOC emissions which are higher on average than the
gasoline as produced or imported. Thus, today's rule extends the
commingling prohibition currently in the fuels regulations to include a
prohibition against combining VOC-controlled ethanol-blended RFG with
VOC-controlled non-oxygenated RFG during the period January 1 through
September 15, with one exception, described below.
[[Page 8978]]
The Energy Act contains a provision which specifically addresses
the combining of ethanol-blended RFG with non-ethanol-blended RFG.\7\
Under this new provision, retail outlets are allowed to sell non-
ethanol-blended RFG which has been combined with ethanol-blended RFG
under certain conditions. First, each batch of gasoline to be blended
must have been ``individually certified as in compliance with
subsections (h) and (k) prior to being blended.'' Second, the retailer
must notify EPA prior to combining the gasolines and identify the exact
location of the retail outlet and specific tank in which the gasoline
is to be combined. Third, the retailer must retain, and, upon request
by EPA, make available for inspection certifications accounting for all
gasoline at the retail outlet. Fourth, retailers are prohibited from
combining VOC-controlled gasoline with non-VOC-controlled gasoline
between June 1 and September 15. Retailers are also limited with regard
to the frequency in which batches of non-ethanol-blended RFG may be
combined with ethanol-blended RFG. Retailers may combine such batches
of RFG a maximum of two periods between May 1 and September 15. Each
period may be no more than ten consecutive calendar days. Today's
direct final rule implements this provision of the Energy Act.
---------------------------------------------------------------------------
\7\ Energy Policy Act of 2005, Public Law 109-58 (HR6), section
1513, 119 STAT 594, 1088-1090 (2005).
---------------------------------------------------------------------------
This new provision will typically be used by retail outlets to
change from the use of RFG containing ethanol to RFG not containing
ethanol or vice versa. (Such a change is usually referred to as a
``tank turnover.'') Such blending can result in additional VOC
emissions, perhaps resulting in gasoline that does not comply with
downstream VOC standards. The Energy Act is unclear as to when the
gasoline in the tank where blending occurs must be in compliance with
the downstream VOC standard.
EPA has already promulgated regulations setting out a methodology
for making tank turnovers. 40 CFR 80.78(a)(10). EPA believes retailers
and wholesale purchaser-consumers should have additional flexibility
during the time that they are converting their tanks from one type of
RFG to another, while minimizing the time period during which non-
compliant gasoline is present in their tanks and being sold. Today's
changes provide additional flexibility to the regulated parties by
interpreting the Energy Act to provide retailers and wholesale
purchaser-consumers with relief from compliance with the downstream VOC
standard during the ten-day blending period, but requiring that the
gasoline in the tank thereafter be in compliance or be deemed in
compliance with the downstream VOC standard.
To provide assurance that gasoline is in compliance with the
downstream VOC standard after the ten-day period, today's regulations
provide that there be two options available for retailers and wholesale
purchaser-consumers. Under the first option, the retailer may add both
ethanol-blended RFG and non-ethanol-blended RFG to the same tank an
unlimited number of times during the ten-day period, but must test the
gasoline in the tank at the end of the ten-day period to make sure that
the RFG is in compliance with the VOC standard. Under the second
option, the retailer must draw the tank down as much as practicable at
the start of the ten-day period, before RFG of another type is added to
the tank, and add only RFG of one type to the tank during the ten-day
period. That is, the retailer may not add both ethanol-blended RFG and
non-ethanol-blended RFG to the tank during the ten-day period, but may
add only one of these types of RFG. EPA believes that when retailers
and wholesale purchaser-consumers use this second option it is likely
that their gasoline will comply with the downstream VOC standard at the
end of the ten-day period, so that testing will not be necessary. We
also believe that this approach is compatible with current practices of
most retailers and wholesale purchaser-consumers, and expect that most
will find it preferable to testing at the end of the ten-day period.
The commingling provisions apply at a retail level such that each
retailer may take advantage of a maximum of two ten-day blending
periods between May 1 and September 15 of each calendar year. Thus, the
options described above would be available to each retail outlet for
each of two ten-day periods during the VOC control period. During each
ten-day period the options are available for all tanks at that retail
outlet.
Regarding the requirement that each batch of gasoline to be blended
must have been individually certified as in compliance with subsections
(h) and (k), EPA notes that all gasoline in compliance with RFG
requirements is deemed certified under section 211(k) pursuant to Sec.
80.40(a). Section 211(h) addresses RVP requirements for gasoline, but
EPA does not have a program to certify gasoline as in compliance with
this provision. For purposes of the commingling exception for retail
outlets incorporated today in Sec. 80.78(a)(8), EPA will deem gasoline
that is in compliance with the regulatory requirements implementing
section 211(h) to be certified under that section. Regarding the
requirement that retailers retain and make available to EPA upon
request ``certifications'' accounting for all gasoline at the retail
outlet, EPA will deem this requirement fulfilled where the retailer
retains and makes available to EPA, upon request, the product transfer
documentation required under Sec. 80.77 for all gasoline at the retail
outlet.
Under today's direct final rule, the provisions which allow
retailers to sell non-ethanol-blended RFG that has been combined with
ethanol-blended RFG also apply to wholesale purchaser-consumers. Like
retailers, wholesale purchaser-consumers are parties who dispense
gasoline into vehicles, and EPA interprets the Energy Act reference to
retailers as applying equally to them. As a result, wholesale
purchaser-consumers are treated in the same manner as retailers under
this rule. This is consistent with the manner in which wholesale
purchaser-consumers have been treated in the past under the fuels
regulations.
Most of the provisions of this rule are necessary to implement
amendments to the Clean Air Act included in the Energy Act that
eliminate the RFG oxygen content requirement and allow limited
commingling of ethanol-blended and non-ethanol-blended RFG. The
extension of the general commingling prohibition in the fuels
regulations to cover non-oxygenated RFG, and the provisions requiring
refiners and importers to conduct oversight of downstream blenders
adding oxygen to RBOB, are necessary because of the Energy Act
amendments, but are issued pursuant to authority of CAA section 211(k).
Both provisions extend current programs to reflect the presence of non-
oxygenated RFG, and are designed to enhance environmental benefits of
the RFG program at reasonable cost to regulated parties.
IV. Environmental Effects of This Action
Little or no environmental impact is anticipated to occur as a
result of today's action to remove the oxygenate requirement for RFG.
The RFG standards consist of content and emission performance
standards. Refiners and importers will have to continue to meet all the
emission performance standards for RFG whether or not the RFG contains
any oxygenate. This includes both the VOC and NOX emission
performance standards, as well as the air toxics emission performance
standards which were tightened in the
[[Page 8979]]
mobile source air toxics (MSAT) rule in 2001.\8\ New MSAT standards
currently under development are anticipated to achieve even greater air
toxics emission reductions.
---------------------------------------------------------------------------
\8\ 66 FR 17230 (March 29, 2001).
---------------------------------------------------------------------------
We have analyzed the potential impacts on emissions that could
result from removal of the oxygenate requirement in the context of
requests for waivers of the Federal oxygen requirement.\9\ We found
that changes in ethanol use could lead to small increases in some
emissions and small decreases in others while still meeting the RFG
performance standards. These potential impacts are associated with the
degree to which ethanol will continue to be blended into RFG after
removal of the oxygen requirement. Past analyses have projected
significant use of ethanol in RFG in California despite removal of the
oxygenate requirement.\10\ Given current gasoline prices and the
tightness in the gasoline market, the favorable economics of ethanol
blending, a continuing concern over MTBE use by refiners, the emission
performance standards still in place for RFG, and the upcoming
renewable fuels mandate,\11\ we believe that ethanol will continue to
be used in RFG after the oxygen requirement is removed, and that as
MTBE is phased out, it is likely to be replaced with ethanol to a large
degree despite the removal of the oxygenate requirement. As a result,
we believe that the removal of the oxygenate mandate will have little
or no environmental impact in the near future. We will be looking at
the long term effect of oxygenate use in the context of the rulemaking
to implement the renewable fuels mandate.
---------------------------------------------------------------------------
\9\ See e.g., California Oxygen Waiver Decision, EPA420-S-05-005
(June 2005); Analysis of and Action on New York Department of
Conservation's Request for a Waiver of the Oxygen Content
Requirement in Federal Reformulated Gasoline, EPA420-D-05-06 (June
2005).
\10\ Technical Support Document: Analysis of California's
Request for Waiver of the Reformulated Gasoline Oxygen Content
Requirement for California Covered Areas, EPA420-R-01-016 (June
2001).
\11\ Energy Policy Act of 2005, Public Law No. 109-58 (HR6),
section 1501, 119 STAT 594, 1067-1076, (2005).
---------------------------------------------------------------------------
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) the
Agency must determine whether the regulatory action is ``significant''
and therefore subject to OMB review and the requirements of the
Executive Order. The Order defines ``significant regulatory action'' as
one that is likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
It has been determined that this direct final rule does not satisfy
the criteria stated above. As a result, this rule is not a
``significant regulatory action'' under the terms of Executive Order
12866 and is therefore not subject to OMB review. Today's rule removes
certain requirements for all refiners, importers and oxygenate blenders
of RFG. Although small additional compliance costs may be incurred by
some refiners and importers as a result of this rule, on balance, this
rule is expected to greatly reduce overall compliance costs for all
refiners, importers and oxygenate blenders. This rule also provides
options for gasoline retailers to commingle certain compliant gasolines
which otherwise would be prohibited from being commingled. Although
there may be small compliance costs associated with one of these
options, we believe that the additional flexibility provided by this
option will reduce overall compliance costs for these parties.
B. Paperwork Reduction Act
The modifications to the RFG information collection requirements in
this rule have been submitted for approval to the Office of Management
and Budget (OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et
seq. The information collection modifications are not enforceable until
OMB approves them.
This rule will have the effect of reducing the burdens on certain
regulated parties under the reformulated gasoline regulations. All
parties currently subject to the requirement to submit an annual oxygen
averaging report will no longer be required to submit such report,
resulting in an estimated total burden reduction of 100 hours and
$6,500(100 parties x 1 report/yr x 1 hr/report x $65/hr). Oxygenate
blenders currently subject to the following requirements will no longer
be subject to these requirements and associated burdens:
RFG batch reports: Total 2500 hours, $162,500(25 blenders x 100
reports/yr x 1 hr/report x $65/hr) plus $600,000 in purchased services;
RFG annual report: Total 25 hours, $1,625(25 blenders x 1 report/yr
x 1 hr/report x $65/hr);
RFG survey reports: Total 500 hours, $32,500(25 blenders x 1
report/yr x 20 hrs/report x $65/hr) plus $1,200,000 for purchased
services;
RFG attest engagement reports: Total 3000 hours, $195,000(25
blenders x 1 report/yr x 120 hrs/report x $65/hr) plus $250,000 for
purchased services.
The estimated total reduction in burdens for this rule is 6,125
hours and $398,125, plus $2,050,000 in purchased services.
Small testing costs may be associated with one of the options for
gasoline retailers to commingle compliant gasolines. However, these
testing costs are expected to be minimal and will be greatly outweighed
by the flexibility provided by the option to commingle compliant
gasolines.
Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.
An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9. When this ICR is
approved by OMB, the Agency will publish a technical amendment to 40
CFR part 9 in the Federal Register to display the OMB control number
for the approved information collection requirements contained in this
direct final rule.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare
[[Page 8980]]
a regulatory flexibility analysis of any rule subject to notice and
comment rulemaking requirements under the Administrative Procedures Act
or any other statute unless the agency certifies that the rule will not
have a significant economic impact on a substantial number of small
entities. Small entities include small businesses, small organizations,
and small governmental jurisdictions.
For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's regulations at 13 CFR 121.201;
(2) a small governmental jurisdiction that is a government of a city,
county, town, school district or special district with a population of
less than 50,000; and (3) a small organization that is any not-for-
profit enterprise which is independently owned and operated and is not
dominant in its field.
After considering the economic impacts of today's rule on small
entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. In
determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the proposed rule on small entities.'' 5 U.S.C. 603
and 604. Thus, an agency may conclude that a rule will not have a
significant economic impact on a substantial number of small entities
if the rule relieves regulatory burden, or otherwise has a positive
economic effect on all of the small entities subject to the rule.
This direct final rule removes certain requirements for all
refiners, importers and oxygenate blenders of RFG, including small
business refiners, importers and oxygenate blenders. Specifically, this
rule removes the burden on refiners, importers and oxygenate blenders
to comply with the RFG oxygen requirement and associated compliance
requirements. Although in certain situations some refiners and
importers, including some small refiners and importers, may be required
to conduct additional oversight of oxygenate blenders, we believe that
the relief from the burden of complying with the oxygen requirement
will more than outweigh the burden of having to conduct any additional
oversight. This rule also provides options for gasoline retailers,
including small gasoline retailers, to commingle certain compliant
gasolines which otherwise would be prohibited from being commingled.
Although there may be small compliance costs associated with one of
these options, we believe that the additional flexibility provided by
this option will reduce overall compliance costs for these parties. We
have therefore concluded that today's direct final rule will relieve
regulatory burden for all small entities subject to the RFG
regulations.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, and tribal governments, in
the aggregate, or to the private sector, of $100 million or more in any
one year. Before promulgating an EPA rule for which a written statement
is needed, section 205 of the UMRA generally requires EPA to identify
and consider a reasonable number of regulatory alternatives and adopt
the least costly, most cost-effective or least burdensome alternative
that achieves the objectives of the rule. The provisions of section 205
do not apply when they are inconsistent with applicable law. Moreover,
section 205 allows EPA to adopt an alternative other than the least
costly, most cost-effective or least burdensome alternative if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted. Before EPA establishes any regulatory
requirements that may significantly or uniquely affect small
governments, including tribal governments, it must have developed under
section 203 of the UMRA a small government agency plan. The plan must
provide for notifying potentially affected small governments, enabling
officials of affected small governments to have meaningful and timely
input in the development of EPA regulatory proposals with significant
Federal intergovernmental mandates, and informing, educating, and
advising small governments on compliance with the regulatory
requirements.
Today's direct final rule contains no Federal mandates (under the
regulatory provisions of Title II of the UMRA) for State, local or
tribal governments or the private sector that will result in
expenditures of $100 million or more. This rule affects gasoline
refiners, importers and oxygenate blenders by removing the oxygen
content requirement for RFG and associated compliance requirements.
This rule also allows gasoline retailers an option to commingle certain
compliant gasolines which otherwise would be prohibited from being
commingled. As a result, this rule will have the overall effect of
reducing the burden of the RFG regulations on these regulated parties.
Therefore, the requirements of the Unfunded Mandates Act do not apply
to this action.
E. Executive Order 13132: Federalism
Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.''
This direct final rule does not have federalism implications. It
will not have substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government, as specified in Executive Order 13132. This rule removes
the oxygen standard for RFG and provides gasoline retailers the option
to commingle certain compliant gasolines that otherwise would be
prohibited from being commingled. The requirements of the rule will be
enforced by the Federal government at the national level. Thus,
Executive Order 13132 does not apply to this rule.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' ``Policies that have tribal
implications'' is defined in the Executive Order to include regulations
that have ``substantial direct effects on one or more Indian tribes, on
the
[[Page 8981]]
relationship between the Federal government and the Indian tribes, or
on the distribution of power and responsibilities between the Federal
government and Indian tribes.''
This direct final rule does not have tribal implications. It will
not have substantial direct effects on tribal governments, on the
relationship between the Federal government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
government and Indian tribes, as specified in Executive Order 13175.
This rule applies to gasoline refiners and importers who supply RFG,
and to other parties downstream in the gasoline distribution system.
Today's action contains certain modifications to the Federal
requirements for RFG, and does not impose any enforceable duties on
communities of Indian tribal governments. Thus, Executive Order 13175
does not apply to this rule.
G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks
Executive Order 13045: ``Protection of Children from Environmental
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies
to any rule that: (1) Is determined to be ``economically significant''
as defined under Executive Order 12866, and (2) concerns an
environmental health or safety risk that EPA has reason to believe may
have a disproportionate effect on children. If the regulatory action
meets both criteria, the Agency must evaluate the environmental health
or safety effects of the planned rule on children, and explain why the
planned regulation is preferable to other potentially effective and
reasonably feasible alternatives considered by the Agency.
EPA interprets Executive Order 13045 as applying only to those
regulatory actions that are based on health or safety risks, such that
the analysis required under the Order has the potential to influence
the regulation. This direct final rule is not subject to Executive
Order 13045 because it is not economically significant and does not
establish an environmental standard intended to mitigate health or
safety risks.
H. Executive Order 13211: Acts That Significantly Affect Energy Supply,
Distribution, or Use
This direct final rule is not an economically ``significant energy
action'' as defined in Executive Order 13211, ``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use'' (66 FR 28355 (May 22, 2001)) because it does not have a
significant adverse effect on the supply, distribution, or use of
energy. This rule eliminates the oxygen content requirement for RFG and
associated compliance requirements. This change will have the effect of
reducing burdens on suppliers of RFG, which, in turn, may have a
positive effect on gasoline supplies. RFG refiners and blenders may
continue to use oxygenates at their discretion where and when it is
most economical to do so. With the implementation of the renewable
fuels standard also contained in the Energy Act, the blending of
ethanol, in particular, into gasoline is expected to increase
considerably, not decrease. Therefore, despite this action to remove
the oxygenate mandate in RFG, when viewed in the context of companion
energy legislation, overall use of oxygenates is expected to increase
in the future. This rule also allows gasoline retailers to commingle
certain compliant gasolines which otherwise would be prohibited from
being commingled. This also may have a positive effect on gasoline
supplies.
I. National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, section 12(d) (15 U.S.C.
272 note) directs EPA to use voluntary consensus standards in its
regulatory activities unless to do so would be inconsistent with
applicable law or otherwise impractical. Voluntary consensus standards
are technical standards (e.g., materials specifications, test methods,
sampling procedures, and business practices) that are developed or
adopted by voluntary consensus standards bodies. The NTTAA directs EPA
to provide Congress, through OMB, explanations when the Agency decides
not to use available and applicable voluntary consensus standards.
This direct final rule does not establish new technical standards
within the meaning of the NTTAA. Therefore, EPA did not consider the
use of any voluntary consensus standards.
J. Congressional Review Act
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A ``major rule''
cannot take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(a).
K. Clean Air Act Section 307(d)
This rule is subject to section 307(d) of the CAA. Section
307(d)(7)(B) provides that ``[o]nly an objection to a rule or procedure
which was raised with reasonable specificity during the period for
public comment (including any public hearing) may be raised during
judicial review.'' This section also provides a mechanism for the EPA
to convene a proceeding for reconsideration, ``[i]f the person raising
an objection can demonstrate to the EPA that it was impracticable to
raise such objection within [the period for public comment] or if the
grounds for such objection arose after the period for public comment
(but within the time specified for judicial review) and if such
objection is of central relevance to the outcome of the rule.'' Any
person seeking to make such a demonstration to the EPA should submit a
Petition for Reconsideration to the Office of the Administrator, U.S.
EPA, Room 3000, Ariel Rios Building, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460, with a copy to both the person(s) listed in the
preceding FOR FURTHER INFORMATION CONTACT section, and the Director of
the Air and Radiation Law Office, Office of General Counsel (Mail Code
2344A), U.S. EPA, 1200 Pennsylvania Ave., NW., Washington, DC 20004.
VI. Statutory Provisions and Legal Authority
The statutory authority for the actions in today's direct final
rule comes from sections 211(c), 211(k) and 301(a) of the CAA.
List of Subjects in 40 CFR Part 80
Environmental protection, Air pollution control, Fuel additives,
Gasoline, Motor vehicle pollution, Reporting and recordkeeping
requirements.
Dated: February 14, 2006.
Stephen L. Johnson,
Administrator.
0
40 CFR part 80 is amended as follows:
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7545 and 7601(a)).
[[Page 8982]]
Subpart A--[Amended]
0
2. Section 80.2 is amended by revising paragraph (ii) to read as
follows:
Sec. 80.2 Definitions.
* * * * *
(ii) Reformulated gasoline credit means the unit of measure for the
paper transfer of benzene content resulting from reformulated gasoline
which contains less than 0.95 volume percent benzene.
* * * * *
Subpart D--[Amended]
0
3. Section 80.41 is amended by:
0
a. In the table in paragraph (e), removing the entry
``Oxygen content (percent, by weight)........................... >=2.0
'';
0
b. In the table in paragraph (f), removing the entry
``Oxygen content (percent by weight):
Standard.................................................... >=2.1
Per-Gallon Minimum.......................................... >=1.5'
'
0
b. Removing and reserving paragraph (o); and
0
c. Revising paragraph (q) heading and introductory text and (q)(1),
with paragraphs (o) and (q) to read as follows:
Sec. 80.41 Standards and requirements for compliance.
* * * * *
(o) [Reserved]
* * * * *
(q) Refineries and importers subject to adjusted standards.
Standards for average compliance that are adjusted to be more or less
stringent by operation of paragraphs (k), (l) (m) or (n) of this
section apply to average reformulated gasoline produced at each
refinery or imported by each importer as follows:
(1) Adjusted standards for a covered area apply to averaged
reformulated gasoline that is produced at a refinery if:
(i) Any averaged reformulated gasoline from that refinery supplied
the covered area during any year a survey was conducted which gave rise
to a standards adjustment; or
(ii) Any averaged reformulated gasoline from that refinery supplies
the covered area during any year that the standards are more stringent
than the initial standards; unless
(iii) The refiner is able to show that the volume of averaged
reformulated gasoline from a refinery that supplied the covered area
during any years under paragraphs (q)(1)(i) or (ii) of this section was
less than one percent of the reformulated gasoline produced at the
refinery during that year, or 100,000 barrels, whichever is less.
* * * * *
0
4. Section 80.65 is amended by:
0
a. Revising the heading;
0
b. Revising paragraphs (c)(1)(ii) and (c)(3), removing and reserving
paragraph (c)(2) and removing paragraph (c)(1)(iii);
0
c. Revising paragraph (d)(2)(vi), removing and reserving (d)(2)(v)(D);
and
0
d. Revising paragraph (h) to read as follows:
Sec. 80.65 General requirements for refiners and importers.
* * * * *
(c) * * *
(1) * * *
(ii) Those standards and requirements it designated under paragraph
(d) of this section for average compliance on an average basis over the
applicable averaging period.
(2) [Reserved]
(3)(i) For each averaging period, and separately for each parameter
that may be met either per-gallon or on average, any refiner shall
designate for each refinery, or any importer shall designate its
gasoline or RBOB as being subject to the standard applicable to that
parameter on either a per-gallon or average basis. For any specific
averaging period and parameter all batches of gasoline or RBOB shall be
designated as being subject to the per-gallon standard, or all batches
of gasoline and RBOB shall be designated as being subject to the
average standard. For any specific averaging period and parameter a
refiner for a refinery, or any importer may not designate certain
batches as being subject to the per-gallon standard and others as being
subject to the average standard.
(ii) In the event any refiner for a refinery, or any importer fails
to meet the requirements of paragraph (c)(3)(i) of this section and for
a specific averaging period and parameter designates certain batches as
being subject to the per-gallon standard and others as being subject to
the average, all batches produced or imported during the averaging
period that were designated as being subject to the average standard
shall, ab initio, be redesignated as being subject to the per-gallon
standard. This redesignation shall apply regardless of whether the
batches in question met or failed to meet the per-gallon standard for
the parameter in question.
* * * * *
(d) * * *
(2) * * *
(v) * * *
(D) [Reserved]
* * * * *
(vi) In the case of RBOB, the gasoline must be designated as RBOB
and the designation must include the type(s) and amount(s) of oxygenate
required to be blended with the RBOB.
* * * * *
(3) Every batch of reformulated or conventional gasoline or RBOB
produced or imported at each refinery or import facility shall be
assigned a number (the ``batch number''), consisting of the EPA-
assigned refiner or importer registration number, the EPA facility
registration number, the last two digits of the year in which the batch
was produced, and a unique number for the batch, beginning with the
number one for the first batch produced or imported each calendar year
and each subsequent batch during the calendar year being assigned the
next sequential number (e.g., 4321-54321-95-000001, 4321-543321-95-
000002, etc.)
* * * * *
(h) Compliance audits. Any refiner and importer of any reformulated
gasoline or RBOB shall have the reformulated gasoline and RBOB it
produced or imported during each calendar year audited for compliance
with the requirements of this subpart D, in accordance with the
requirements of subpart F, at the conclusion of each calendar year.
* * * * *
0
5. Section 80.67 is amended by:
0
a. Revising paragraphs (a)(1) and (a)(2)(i)(A);
0
b. Removing and reserving paragraph (b)(3);
0
c. Removing and reserving paragraph (f);
0
d. Revising paragraphs (g) introductory text, (g)(3), (g)(5)
introductory text, (g)(6) introductory text, and removing and reserving
paragraphs (g)(5)(i) and (g)(6)(i); and
0
e. Revising paragraphs (h)(1) introductory text, (h)(1)(iv), (h)(1)(v)
and (h)(3)(ii), and removing paragraphs (h)(1)(vi), (h)(1)(vii) and
(h)(1)(viii), to read as follows:
Sec. 80.67 Compliance on average
* * * * *
(a) * * *
(1) Any refiner or importer that complies with the compliance
survey requirements of Sec. 80.68 has the option of meeting the
standards specified in Sec. 80.41 for average compliance in addition
to the option of meeting the standards specified in Sec. 80.41 for
per-gallon compliance; any refiner or importer that does not comply
with the survey requirements must meet the standards specified in Sec.
80.41 for per-gallon compliance, and does not have
[[Page 8983]]
the option of meeting standards on average.
(2)(i)(A) A refiner or importer that produces or imports
reformulated gasoline that exceeds the average standard for benzene
(but not for other parameters that have average standards) may use such
gasoline to offset reformulated gasoline which does not achieve this
average standard, but only if the reformulated gasoline that does not
achieve this average standard is sold to ultimate consumers in the same
covered area as was the reformulated gasoline which exceeds the average
standard; provided that:
* * * * *
(b) * * *
(3) [Reserved]
* * * * *
(f) [Reserved]
(g) * * * To determine compliance with the averaged standards in
Sec. 80.41, any refiner for each of its refineries at which averaged
reformulated gasoline or RBOB is produced, and any importer that
imports averaged reformulated gasoline or RBOB shall, for each
averaging period and for each portion of gasoline for which standards
must be separately achieved, and for each relevant standard, calculate:
* * * * *
(3) For the VOC, NOX, and toxics emissions performance
standards, the actual totals must be equal to or greater than the
compliance totals to achieve compliance.
* * * * *
(5) If the actual total for the benzene standard is greater than
the compliance total, credits for this parameter must be obtained from
another refiner or importer in order to achieve compliance:
(i) [Reserved]
* * * * *
(6) If the actual total for the benzene standard is less than the
compliance totals, credits for this parameter are generated.
(i) [Reserved]
* * * * *
(h) * * *
(1) Compliance with the averaged standards specified in Sec. 80.41
for benzene (but for no other standards or requirements) may be
achieved through the transfer of benzene credits provided that:
* * * * *
(iv) The credits are transferred, either through inter-company or
intra-company transfers, directly from the refiner or importer that
creates the credits to the refiner or importer that uses the credits to
achieve compliance; and
(v) Benzene credits are not used to achieve compliance with the
maximum benzene content standards in Sec. 80.41.
* * * * *
(3) * * *
(ii) No refiner or importer may create, report, or transfer
improperly created credits; and
* * * * *
0
6. Section 80.68 is amended by revising paragraphs (a) introductory
text, (a)(3), (b) introductory text, (b)(4)(i), (b)(4)(ii), (c)(3),
(c)(4)(i), and (c)(13)(v)(L), and removing and reserving paragraph
(c)(12) to read as follows:
Sec. 80.68 Compliance surveys.
(a) * * * In order to satisfy the compliance survey requirements,
any refiner or importer shall properly conduct a program of compliance
surveys in accordance with a survey program plan which has been
approved by the Administrator of EPA in each covered area which is
supplied with any gasoline for which compliance is achieved on average
that is produced by that refinery or imported by that importer. Such
approval shall be based upon the survey program plan meeting the
following criteria:
* * * * *
(3) In the event that any refiner or importer fails to properly
carry out an approved survey program, the refiner or importer shall
achieve compliance with all applicable standards on a per-gallon basis
for the calendar year in which the failure occurs, and may not achieve
compliance with any standard on an average basis during this calendar
year. This requirement to achieve compliance per-gallon shall apply ab
initio to the beginning of any calendar year in which the failure
occurs, regardless of when during the year the failure occurs.
(b) * * * A refiner or importer shall be deemed to have satisfied
the compliance survey requirements described in paragraph (a) of this
section if a comprehensive program of surveys is properly conducted in
accordance with a survey program plan which has been approved by the
Administrator of EPA. Such approval shall be based upon the survey
program plan meeting the following criteria:
* * * * *
(4) * * *
(i) Each refiner or importer who supplied any reformulated gasoline
or RBOB to the covered area and who has not satisfied the survey
requirements described in paragraph (a) of this section shall be deemed
to have failed to carry out an approved survey program; and
(ii) The covered area will be deemed to have failed surveys for VOC
and NOX emissions performance, and survey series for benzene
and toxic and NOX emissions performance.
(c) * * *
(3)(i) A VOC survey and a NOX survey shall consist of
any survey conducted during the period June 1 through September 15;
(ii) A sample of gasoline taken at a retail outlet or wholesale
purchaser-consumer facility that has within the past 30 days commingled
ethanol blended reformulated gasoline with non-ethanol blended
reformulated gasoline in accordance with the provisions in Sec.
80.78(a)(8) shall not be used in a VOC survey required under this
section.
(4)(i) A toxics and benzene survey series shall consist of all
surveys conducted in a single covered area during a single calendar
year.
* * * * *
(12) [Reserved]
(13) * * *
(v) * * *
(L) The average toxics emissions reduction percentage for simple
model samples and the percentage for complex model samples, the average
benzene percentage, and for each survey conducted during the period
June 1 through September 15, the average VOC emissions reduction
percentage for simple model samples and the percentage for complex
model samples, and the average NOX emissions reduction
percentage for all complex model samples;
* * * * *
0
7. Section 80.69 is amended by:
0
a. Revising paragraphs (a)(6)(ii) and (iii), (a)(10) introductory text,
removing and reserving paragraphs (a)(8) and (a)(9), and removing
paragraph (a)(6)(iv);
0
b. Revising paragraph (b);
0
c. Removing and reserving paragraph (c);
0
d. Revising paragraph (d); and
0
e. Revising paragraph (e), to read as follows:
Sec. 80.69 Requirements for downstream oxygenate blending.
* * * * *
(a) * * *
(6) * * *
(ii) Allow the refiner or importer to conduct the quality assurance
sampling and testing required under this paragraph (a); and
(iii) Stop selling any gasoline found not to comply with the
standards under which the RBOB was produced or imported.
* * * * *
[[Page 8984]]
(8) [Reserved]
(9) [Reserved]
(10) Specify in the product transfer documentation for the RBOB
each oxygenate type or types and amount or range of amounts which, if
blended with the RBOB will result in reformulated gasoline which:
* * * * *
(b) Requirements for oxygenate blenders. For all RBOB received by
any oxygenate blender, the oxygenate blender shall:
(1) Add oxygenate of the type(s) and amount (or within the range of
amounts) specified in the product transfer documents for the RBOB; and
(2) Meet the recordkeeping requirements specified in Sec. 80.74.
(c) [Reserved]
(d) Requirements for distributors dispensing RBOB into trucks for
blending. Any distributor who dispenses any RBOB into any truck which
delivers gasoline to retail outlets or wholesale purchase-consumer
facilities, shall for such RBOB so dispensed:
(1) Transfer the RBOB only to an oxygenate blender who has
registered with the Administrator or EPA as such; and
(2) Obtain from the oxygenate blender the oxygenate blender's EPA
registration number.
(e) Additional requirements for oxygenate blenders who blend
oxygenate in trucks. Any oxygenate blender who obtains any RBOB in any
gasoline delivery truck shall on each occasion it obtains RBOB from a
distributor, supply the distributor with the oxygenate blender's EPA
registration number.
0
8. Section 80.73 is amended by revising the introductory text to read
as follows:
Sec. 80.73 Inability to produce conforming gasoline in extraordinary
circumstances.
In appropriate extreme and unusual circumstances (e.g., natural
disaster or Act of God) which are clearly outside the control of the
refiner, importer, or oxygenate blender and which could not have been
avoided by the exercise of prudence, diligence, and due care, EPA may
permit a refiner, importer, or oxygenate blender, for a brief period,
to distribute gasoline which does not meet the requirements for
reformulated gasoline, or does not contain the type(s) and amount(s) of
oxygenate required under Sec. 80.69(b)(1), if:
* * * * *
0
9. Section 80.74 is amended by revising paragraph (c) heading and
introductory text, (c)(2), and (d) introductory text to read as
follows:
Sec. 80.74 Recordkeeping requirements.
* * * * *
(c) Refiners and importers of averaged gasoline. In addition to
other requirements of this section, any refiner or importer who
produces or imports any reformulated gasoline for which compliance with
one or more applicable standard is determined on an average shall
maintain records containing the following information:
* * * * *
(2) For any credits bought, sold, traded or transferred pursuant to
Sec. 80.67(h), the dates of the transactions, the names and EPA
registration numbers of the parties involved, and the number of credits
transferred.
(d) * * * Any oxygenate blender who blends any oxygenate with any
RBOB shall, for each occasion such blending occurs, maintain records
containing the following:
* * * * *
0
10. Section 80.75 is amended by revising the introductory text,
paragraph (a) introductory text, (h), (i), (l), (m) and (n)(2); and
removing and reserving paragraphs (a)(2)(vii) and (f) to read as
follows:
Sec. 80.75 Reporting requirements.
Any refiner or importer shall report as specified in this section,
and shall report such other information as the Administrator may
require.
(a) * * * Any refiner or importer that produces or imports any
reformulated gasoline or RBOB shall submit quarterly reports to the
Administrator for each refinery at which such reformulated gasoline or
RBOB was produced and for all such reformulated gasoline or RBOB
imported by each importer. The refiner or importer shall include
notification to EPA of per-gallon versus average election with the
first quarterly reports submitted each year.
* * * * *
(2) * * *
(vii) [Reserved]
* * * * *
(f) [Reserved]
* * * * *
(h) Credit transfer reports. As an additional part of the fourth
quarterly report required by this section, any refiner or importer
shall, for each refinery or importer, supply the following information
for any benzene credits that are transferred from or to another
refinery or importer:
(1) The names, EPA-assigned registration numbers and facility
identification numbers of the transferor and transferee of the credits;
(2) The number(s) of credits that were transferred; and
(3) The date(s) of the transaction(s).
(i) Covered areas of gasoline use report. Any refiner that produced
any reformulated gasoline that was to meet any reformulated gasoline
standard on average (``averaged reformulated gasoline'') shall, for
each refinery at which such averaged reformulated gasoline was produced
submit to the Administrator, with the fourth quarterly report, a report
that contains the identity of each covered area that was supplied with
any averaged reformulated gasoline produced at each refinery during the
previous year.
* * * * *
(l) Reports for per-gallon compliance gasoline. In the case of
reformulated gasoline or RBOB for which compliance with each of the
standards set forth in Sec. 80.41 is achieved on a per-gallon basis,
the refiner or importer shall submit to the Administrator, by the last
day of February of each year beginning in 1996, a report of the volume
of each designated reformulated gasoline or RBOB produced or imported
during the previous calendar year for which compliance is achieved on a
per-gallon basis, and a statement that each gallon of this reformulated
gasoline or RBOB met the applicable standards.
(m) Reports of compliance audits. Any refiner or importer shall
cause to be submitted to the Administrator, by May 31 of each year, the
report of the compliance audit required by Sec. 80.65(h).
(n) * * *
(2) Signed and certified as correct by the owner or a responsible
corporate officer of the refiner or importer.
0
11. Section 80.76 is amended by revising paragraph (a) to read as
follows:
Sec. 80.76 Registration of refiners, importers or oxygenate blenders.
(a) Registration with the Administrator of EPA is required for any
refiner and importer that produces or imports any reformulated gasoline
or RBOB, and any oxygenate blender that blends oxygenate into RBOB.
* * * * *
0
12. Section 80.77 is amended by removing and reserving paragraph
(g)(2)(ii) and revising paragraph (i)(1) to read as follows:
Sec. 80.77 Product transfer documentation.
* * * * *
(g) * * *
(2) * * *
(ii) [Reserved]
* * * * *
(i) * * *
(1) The oxygenate type(s) and amount(s) that are suitable for
blending with the RBOB;
* * * * *
[[Page 8985]]
0
13. Section 80.78 is amended by revising paragraphs (a)(8) and
(a)(11)(iv), and removing and reserving paragraph (a)(1)(ii) to read as
follows:
Sec. 80.78 Controls and prohibitions on reformulated gasoline.
* * * * *
(a) * * *
(1) * * *
(ii) [Reserved]
* * * * *
(8)(i) No person may combine any ethanol-blended VOC-controlled
reformulated gasoline with any non-ethanol-blended VOC-controlled
reformulated gasoline during the period January 1 through September 15,
except that:
(ii) Notwithstanding the prohibition in paragraph (a)(8)(i),
retailers and wholesale purchaser-consumers may combine at a retail
outlet or wholesale purchaser-consumer facility ethanol-blended VOC-
controlled reformulated gasoline with non-ethanol-blended VOC-
controlled reformulated gasoline, provided that the retailer or
wholesale purchaser-consumer:
(A) Combines only batches of reformulated gasoline that have been
certified under this subpart;
(B) Notifies EPA prior to combining the gasolines and identifies
the exact location of the retail outlet or wholesale purchase-consumer
facility and the specific tank in which the gasolines will be combined;
(C) Retains and, upon request by EPA, makes available for
inspection product transfer documentation accounting for all gasoline
at the retail outlet or wholesale purchaser-consumer facility; and
(D) Does not combine any VOC-controlled gasoline with any non-VOC
controlled gasoline between June 1 and September 15 of each calendar
year;
(iii) A retailer or wholesale purchaser-consumer may combine
ethanol-blended reformulated gasoline with non-ethanol-blended
reformulated gasoline under paragraph (a)(8)(ii) of this section a
maximum of two periods between May 1 and September 15 of each calendar
year, each such period to extend for a period of no more than ten
consecutive calendar days. At the end of the ten-day period, the
gasoline must be in compliance with the VOC minimum standard under
Sec. 80.41.
(A) The retailer or wholesale purchaser-consumer may demonstrate
compliance with the VOC minimum standard by testing the gasoline at the
end of the ten-day period using the test methods in Sec. 80.46, where
the test results show that the gasoline meets the VOC minimum standard.
Under this option, the retailer or wholesale purchaser-consumer may add
both ethanol-blended reformulated gasoline and non-ethanol-blended
reformulated gasoline to the same tank an unlimited number of times
during the ten-day period; or
(B) The retailer or wholesale purchaser-consumer will be deemed in
compliance with the VOC minimum standard where the retailer or
wholesale purchaser-consumer draws the tank down as low as practicable
before receiving product of the other type into the tank and receives
only product of the other type into the tank during the ten-day period.
Under this option, the retailer or wholesale purchaser-consumer is not
required to test the gasoline at the end of the ten-day period.
(iv) Nothing in paragraphs (a)(8)(ii) or (iii) of this section
shall preempt existing State laws or regulations regulating the
combining of ethanol-blended reformulated gasoline with non-ethanol-
blended reformulated gasoline or prohibit a State from adopting such
laws or regulations in the future.
* * * * *
(11) * * *
(iv) When transitioning from RBOB to reformulated gasoline, the
reformulated gasoline must meet all applicable standards that apply at
the terminal subsequent to any oxygenate blending;
* * * * *
0
14. Section 80.79 is amended by adding paragraph (a)(5) and revising
paragraph (c)(1) to read as follows:
Sec. 80.79 Liability for violations of the prohibited activities.
(a) * * *
(5) Notwithstanding the provisions in paragraphs (a)(1) through
(a)(4) of this section: (i) Only a retailer or wholesale purchaser-
consumer shall be deemed in violation for combining gasolines in a
manner that is inconsistent with Sec. 80.78(a)(8)(ii) or (iii), or for
gasoline which does not comply with the VOC minimum standard under
Sec. 80.41 after the retailer or wholesale purchaser-consumer combines
or causes the combining of compliant gasolines in a manner inconsistent
with Sec. 80.78(a)(8)(ii) or (iii);
(ii) No person shall be deemed in violation for gasoline which does
not comply with the VOC minimum standard under Sec. 80.41 where the
non-compliance is solely due to the combining of compliant gasolines by
a retailer or wholesale purchaser-consumer in a manner that is
consistent with Sec. 80.78(a)(8)(ii) and (iii).
* * * * *
(c) * * *
(1) Of a periodic sampling and testing program to determine if the
applicable maximum and/or minimum standards for benzene, RVP, or VOC
emission performance are met.
* * * * *
0
15. Section 80.81 is amended by revising paragraphs (b)(1) and (b)(2)
to read as follows:
Sec. 80.81 Enforcement exemptions for California gasoline.
* * * * *
(b)(1) Any refiner or importer of gasoline that is sold, intended
for sale, or made available for sale as a motor fuel in the State of
California is, with regard to such gasoline, exempt from the compliance
survey provisions contained in Sec. 80.68.
(2) Any refiner or importer of California gasoline is, with regard
to such gasoline, exempt from the independent analysis requirements
contained in Sec. 80.65(f).
* * * * *
Subpart F--[Amended]
0
16. Section 80.125 is amended by revising paragraphs (a), (c) and (d)
introductory text, to read as follows:
Sec. 80.125 Attest engagements.
(a) Any refiner and importer subject to the requirements of this
subpart F shall engage an independent certified public accountant, or
firm of such accountants (hereinafter referred to in this subpart F as
``CPA''), to perform an agreed-upon procedures attestation engagement
of the underlying documentation that forms the basis of the reports
required by Sec. Sec. 80.75 and 80.105.
* * * * *
(c) The CPA may complete the requirements of this subpart F with
the assistance of internal auditors who are employees or agents of the
refiner or importer, so long as such assistance is in accordance with
the Statements on Standards for Attestation Engagements.
(d) Notwithstanding the requirements of paragraph (a) of this
section, any refiner or importer may satisfy the requirements of this
subpart F if the requirements of this subpart F are completed by an
auditor who is an employee of the refiner or importer, provided that
such employee:
* * * * *
0
17. Section 80.126 is amended by revising paragraph (b) to read as
follows:
[[Page 8986]]
Sec. 80.126 Definitions.
* * * * *
(b) Credit Trading Records. Credit trading records shall include
worksheets and EPA reports showing actual and complying totals for
benzene; credit calculation worksheets; contracts; letter agreements;
and invoices and other documentation evidencing the transfer of
credits.
* * * * *
0
18. Section 80.128 is amended by revising paragraph (e)(2) to read as
follows:
Sec. 80.128 Alternative agreed upon procedures for refiners and
importers.
* * * * *
(e) * * *
(2) Determine that the requisite contract was in place with the
downstream blender designating the required blending procedures;
* * * * *
0
19. Section 80.129 is removed and reserved.
0
20. Section 80.130 is amended by revising paragraph (a) to read as
follows:
Sec. 80.130 Agreed upon procedures reports.
(a) Reports. (1) The CPA or CIA shall issue to the refiner or
importer a report summarizing the procedures performed in the findings
in accordance with the attest engagement or internal audit performed in
compliance with this subpart.
(2) The refiner or importer shall provide a copy of the auditor's
report to the EPA within the time specified in Sec. 80.75(m).
* * * * *
0
21. Section 80.133 is amended by revising paragraphs (h)(1) and (h)(4)
to read as follows:
Sec. 80.133 Agreed upon procedures for refiners and importers.
* * * * *
(h) * * *
(1) Obtain from the refiner or importer the oxygenate type and
volume, and oxygen volume required to be hand blended with the RBOB, in
accordance with Sec. 80.69(a)(2).
* * * * *
(4) Perform the following procedures for each batch report included
in paragraph (h)(4)(i)(B) of this section:
(i) Obtain and inspect a copy of the executed contract with the
downstream oxygenate blender (or with an intermediate owner), and
confirm that the contract:
(A) Was in effect at the time of the corresponding RBOB transfer;
and
(B) Allowed the company to sample and test the reformulated
gasoline made by the blender.
(ii) Obtain a listing of RBOB blended by downstream oxygenate
blenders and the refinery's or importer's oversight test results, and
select a representative sample, in accordance with the guidelines in
Sec. 80.127, from the listing of test results and for each test
selected perform the following:
(A) Obtain the laboratory analysis for the batch, and agree the
type of oxygenate used and the oxygenate content appearing in the
laboratory analysis to the instructions stated on the product transfer
documents corresponding to a RBOB receipt immediately preceding the
laboratory analysis and used in producing the reformulated gasoline
batch selected within the acceptable ranges set forth at Sec.
80.65(e)(2)(i);
(B) Calculate the frequency of sampling and testing or the volume
blended between the test selected and the next test; and
(C) Agree the frequency of sampling and testing or the volume
blended between the test selected and the next test to the sampling and
testing frequency rates stated in Sec. 80.69(a)(7).
* * * * *
0
22. Section 80.134 is removed.
[FR Doc. 06-1612 Filed 2-21-06; 8:45 am]
BILLING CODE 6560-50-P