[Code of Federal Regulations]
[Title 40, Volume 14]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR80.81]

[Page 670-673]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES--Table of Contents
 
                    Subpart D--Reformulated Gasoline
 
Sec. 80.81  Enforcement exemptions for California gasoline.

    (a) The requirements of subparts D, E, F and J of this part are 
modified in accordance with the provisions contained in this section in 
the case of California gasoline.
    (b)(1) Any refiner, importer, or oxygenate blender 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, importer, or oxygenate blender of California 
gasoline is, with regard to such gasoline, exempt from the independent 
analysis requirements contained in Sec. 80.65(f).
    (3) Any refiner, importer, or oxygenate blender of California 
gasoline that elects to meet any benzene content, oxygen content, or 
toxics emission reduction standard specified in Sec. 80.41 on average 
for any averaging period specified in Sec. 80.67 that is in part before 
March 1, 1996, and in part subsequent to such date, shall, with regard 
to such gasoline that is produced or imported prior to such date, 
demonstrate compliance with each of the standards specified in 
Sec. 80.41 for each of the following averaging periods in lieu of those 
specified in Sec. 80.67:
    (i) January 1 through December 31, 1995; and
    (ii) March 1, 1995, through February 29, 1996.
    (4) The compliance demonstration required by paragraph (b)(3)(ii) of 
this section shall be submitted no later than May 31, 1996, along with 
the report for the first quarter of 1996 required to be submitted under 
Sec. 80.75(a)(1)(i).
    (c) Any refiner, importer, or oxygenate blender of California 
gasoline that is manufactured or imported subsequent to March 1, 1996, 
and that meets the requirements of the California Phase 2 reformulated 
gasoline regulations, as set forth in Title 13, California Code of 
Regulations, sections 2260 et seq., is, with regard to such gasoline, 
exempt from the following requirements (in addition to the requirements 
specified in paragraph (b) of this section):
    (1) The parameter value reconciliation requirements contained in 
Sec. 80.65(e)(2);
    (2) The designation of gasoline requirements contained in 
Sec. 80.65(d), except in the case of RBOB that is designated as ``any 
renewable oxygenate,'' ``non-VOC controlled renewable ether only'', or 
``renewable ether only'';
    (3) The reformulated gasoline and RBOB compliance requirements 
contained in Sec. 80.65(c);
    (4) The marking of conventional gasoline requirements contained in 
Secs. 80.65(g) and 80.82;
    (5) The annual compliance audit requirements contained in 
Sec. 80.65(h), except where such audits are required with regard to the 
renewable oxygenate requirements contained in Sec. 80.83;
    (6) The downstream oxygenate blending requirements contained in 
Sec. 80.69, except where such requirements apply to the renewable 
oxygenate requirements contained in Sec. 80.83;
    (7) The record keeping requirements contained in Secs. 80.74 and 
80.104, except that records required to be maintained under Title 13, 
California Code of Regulations, section 2270, shall be maintained for a 
period of five years from the date of creation and shall be delivered to 
the Administrator or to the Administrator's authorized representative 
upon request;
    (8) The reporting requirements contained in Secs. 80.75 and 80.105;
    (9) The product transfer documentation requirements contained in 
Sec. 80.77; and
    (10) The compliance attest engagement requirements contained in 
subpart F of this part, except where such requirements apply to the 
renewable oxygenate requirements contained in Sec. 80.83.
    (d) Any refiner, importer, or oxygenate blender that produces or 
imports gasoline that is sold, intended for sale, or made available for 
sale as a motor vehicle fuel in the State of California subsequent to 
March 1, 1996, shall demonstrate compliance with the standards specified 
in Secs. 80.41 and 80.90 by excluding the volume and properties of

[[Page 671]]

such gasoline from all conventional gasoline and reformulated gasoline 
that it produces or imports that is not sold, intended for sale, or made 
available for sale as a motor vehicle fuel in the State of California 
subsequent to such date. The exemption provided in this section does not 
exempt any refiner or importer from demonstrating compliance with such 
standards for all gasoline that it produces or imports.
    (e)(1) The exemption provisions contained in paragraphs (b)(2), 
(b)(3), (c), and (f) of this section shall not apply under the 
circumstances set forth in paragraphs (e)(2) and (e)(3) of this section.
    (2) Such exemption provisions shall not apply to any refiner, 
importer, or oxygenate blender of California gasoline with regards to 
any gasoline formulation that it produces or imports is certified under 
Title 13, California Code of Regulations, section 2265 or section 2266 
(as amended July 2, 1996), unless:
    (i) Written notification option. (A) The refiner, importer, or 
oxygenate blender, within 30 days of the issuance of such certification:
    (1) Notifies the Administrator of such certification;
    (2) Submits to the Administrator copies of the applicable 
certification order issued by the State of California and the 
application for certification submitted by the regulated party to the 
State of California; and
    (3) Submits to the Administrator a written demonstration that all 
gasoline formulations produced, imported or blended by the refiner, 
importer or oxygenate blender for use in California meets each of the 
complex model per-gallon standards specified in Sec. 80.41(c).
    (B) If the Administrator determines that the written demonstration 
submitted under paragraph (e)(2)(i)(A) of this section does not 
demonstrate that all certified gasoline formulations meet each of the 
complex model per-gallon standards specified in Sec. 80.41(c), the 
Administrator shall provide notice to the party (by first class mail) of 
such determination and of the date on which the exemption provisions 
specified in paragraph (e)(1) of this section shall no longer be 
applicable, which date shall be no earlier than 90 days after the date 
of the Administrator's notification.
    (ii) Compliance survey option. The compliance survey requirements of 
Sec. 80.68 are met for each covered area in California for which the 
refiner, importer or oxygenate blender supplies gasoline for use in the 
covered area, except that:
    (A) The survey series must determine compliance only with the oxygen 
content standard of 2.0 weight-percent;
    (B) The survey series must consist of at least four surveys a year 
for each covered area;
    (C) The surveys shall not be included in determining the number of 
surveys under Sec. 80.68(b)(2);
    (D) In the event a survey series conducted under this paragraph 
(e)(2)(ii) fails in accordance with Sec. 80.68(c)(12), the provisions of 
Secs. 80.41(o), (p) and (q) are applicable, except that if the survey 
series failure occurs in a year in which the applicable minimum oxygen 
content is 1.7 weight percent, the compliance survey option of this 
section shall not be applicable for any future year; and
    (E) Not withstanding Sec. 80.41(o), in the event a covered area 
passes the oxygen content series in a year, the minimum oxygen content 
standard for that covered area beginning in the year following the 
passed survey series shall be made less stringent by decreasing the 
minimum oxygen content standard by 0.1%, except that in no case shall 
the minimum oxygen content standard be less than that specified in 
Sec. 80.41(d).
    (3)(i) Such exemption provisions shall not apply to any refiner, 
importer, or oxygenate blender of California gasoline who has been 
assessed a civil, criminal or administrative penalty for a violation of 
subpart D, E or F of this part or for a violation of the California 
Phase 2 reformulated gasoline regulations set forth in Title 13, 
California Code of Regulations, sections 2260 et seq., effective 90 days 
after the date of final agency or district court adjudication of such 
penalty assessment.
    (ii) Any refiner, importer, or oxygenate blender subject to the 
provisions of paragraph (e)(3)(i) of this section may submit a petition 
to the Administrator for relief, in whole or in part, from the 
applicability of such provisions, for

[[Page 672]]

good cause. Good cause may include a showing that the violation for 
which a penalty was assessed was not a substantial violation of the 
Federal or California reformulated gasoline regulations.
    (f) In the case of any gasoline that is sold, intended for sale, or 
made available for sale as a motor vehicle fuel in the State of 
California subsequent to March 1, 1996, any person that manufactures, 
sells, offers for sale, dispenses, supplies, offers for supply, stores, 
transports, or causes the transportation of such gasoline is, with 
regard to such gasoline, exempt from the following prohibited activities 
provisions:
    (1) The oxygenated fuels provisions contained in 
Sec. 80.78(a)(1)(iii);
    (2) The product transfer provisions contained in 
Sec. 80.78(a)(1)(iv);
    (3) The oxygenate blending provisions contained in Sec. 80.78(a)(7); 
and
    (4) The segregation of simple and complex model certified gasoline 
provision contained in Sec. 80.78(a)(9).
    (g)(1) Any refiner that operates a refinery located outside the 
State of California at which California gasoline (as defined in 
paragraph (a)(2)(iii) of this section) is produced shall, with regard to 
such gasoline, provide to any person to whom custody or title of such 
gasoline is transferred, and each transferee shall provide to any 
subsequent transferee, documents which include the following 
information:
    (i) The name and address of the transferor;
    (ii) The name and address of the transferee;
    (iii) The volume of gasoline which is being transferred;
    (iv) The location of the gasoline at the time of the transfer;
    (v) The date and time of the transfer;
    (vi) The identification of the gasoline as California gasoline; and
    (vii) In the case of transferrors and transferrees who are refiners, 
importers or oxygenate blenders, the EPA- assigned registration number 
of such persons.
    (2) Each refiner and transferee of such gasoline shall maintain 
copies of the product transfer documents required to be provided by 
paragraph (g)(1) of this section for a period of five years from the 
date of creation and shall deliver such documents to the Administrator 
or to the Administrator's authorized representative upon request.
    (h)(1) For the purposes of the batch sampling and analysis 
requirements contained in Sec. 80.65(e)(1)and Sec. 80.101(i)(1)(i)(A), 
any refiner, importer or oxygenate blender of California gasoline may 
use a sampling and/or analysis methodology prescribed in Title 13, 
California Code of Regulations, sections 2260 et seq. (as amended July 
2, 1996), in lieu of any applicable methodology specified in Sec. 80.46, 
with regards to
    (i) Such gasoline; or
    (ii) That portion of its gasoline produced or imported for use in 
other areas of the United States, provided that:
    (A) The gasoline must be produced by a refinery that is located in 
the state of California that produces California gasoline, or imported 
into California from outside the United States as California Phase 2 
gasoline;
    (B) The gasoline must be classified as conventional gasoline upon 
exportation from the California; and
    (C) The refiner or importer must correlate the results from the 
applicable sampling and /or analysis methodology prescribed in Title 13, 
California Code of Regulations, sections 2260 et seq. (as amended July 
2, 1996), with the method specified at Sec. 80.46, and such correlation 
must be adequately demonstrated to EPA upon request.
    (2) Nothwithstanding the requirements of Sec. 80.65(e)(1) regarding 
when the properties of a batch of reformulated gasoline must be 
determined, a refiner of California gasoline may determine the 
properties of gasoline as specified under Sec. 80.65(e)(1) at off site 
tankage provided that:
    (i) The samples are properly collected under the terms of a current 
and valid protocol agreement between the refiner and the California Air 
Resources Board with regard to sampling at the off site tankage and 
consistent with requirements prescribed in Title 13, California Code of 
Regulations, sections 2260 et seq.(as amended July 2, 1996); and

[[Page 673]]

    (ii) The refiner provides a copy of the protocol agreement to EPA 
upon request.

[59 FR 7813, Feb. 16, 1994, as amended at 59 FR 36965, July 20, 1994; 59 
FR 39289, Aug. 2, 1994; 59 FR 60715, Nov. 28, 1994; 63 FR 34825, June 
26, 1998; 64 FR 49997, Sept. 15, 1999; 66 FR 17263, Mar. 29, 2001]

    Effective Date Note: At 59 FR 39289, Aug. 2, 1994, Sec. 80.81 was 
amended by revising paragraphs (c)(2), (c)(5), (c)(6), and (c)(10) 
effective September 1, 1994. At 59 FR 60715, Nov. 28, 1994, the 
amendment was stayed effective September 13, 1994.