[Code of Federal Regulations]
[Title 40, Volume 16]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR80.67]
[Page 673-676]
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. 80.67 Compliance on average.
The requirements of this section apply to all reformulated gasoline
and RBOB produced or imported for which compliance with one or more of
the requirements of Sec. 80.41 is determined on average (``averaged
gasoline'').
(a) Compliance survey required in order to meet standards on
average. (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 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) Prior to the beginning of the averaging period when the
averaging approach described in paragraph (a)(2)(i)(A) of this section
is used, the refiner or importer obtains approval from EPA. In order to
seek such approval, the refiner or importer shall submit a petition to
EPA, such petition to include:
(1) The identification of the refiner and refinery, or importer, the
covered area, and the averaging period; and
(2) A detailed description of the procedures the refiner or importer
will use to ensure the gasoline is produced by the refiner or is
imported by the importer and is used only in the covered area in
question and is not used in any other covered area, and the record
keeping, reporting, auditing, and other quality assurance measures that
will be followed to establish the gasoline is used as intended; and
(C) The refiner or importer properly completes any requirements that
are specified by EPA as conditions for approval of the petition.
(ii) Any refiner or importer that meets the requirements of
paragraph (a)(2)(i) of this section will be deemed to have satisfied the
compliance survey requirements of Sec. 80.68 for the covered area in
question.
(b) Scope of averaging. (1) Any refiner shall meet all applicable
averaged standards separately for each of the refiner's refineries;
(2)(i) Any importer shall meet all applicable averaged standards on
the basis of all averaged reformulated gasoline and RBOB imported by the
importer; except that
(ii) Any importer to whom different standards apply for gasoline
imported at different facilities by operation of Sec. 80.41(i), shall
meet the averaged standards separately for the averaged reformulated
gasoline and RBOB imported into each group of facilities that is subject
to the same standards; and
(3) [Reserved]
(c) RVP and VOC emissions performance reduction compliance on
average. (1) The VOC-controlled reformulated gasoline and RBOB produced
at any refinery or imported by any importer during the period January 1
through September 15 of each calendar year which is designated for
average compliance for RVP or VOC emissions performance on average must
meet the standards for RVP (in the case of a refinery or importer
subject to the simple model standards) or the standards for VOC
emissions performance reduction (in the case of a refinery or importer
subject to the complex model standards)
[[Page 674]]
which are applicable to that refinery or importer as follows:
(i) Gasoline and RBOB designated for VOC Control Region 1 must meet
the standards for that Region which are applicable to that refinery or
importer; and
(ii) Gasoline and RBOB designated for VOC Control Region 2 must meet
the standards for that Region which are applicable to that refinery or
importer.
(2) In the case of a refinery or importer subject to the simple
model standards, each gallon of reformulated gasoline and RBOB
designated as being VOC-controlled may not exceed the maximum standards
for RVP specified in Sec. 80.41(b) which are applicable to that refiner
or importer.
(3) In the case of a refinery or importer subject to the complex
model standards, each gallon of reformulated gasoline designated as
being VOC-controlled must equal or exceed the minimum standards for VOC
emissions performance specified in Sec. 80.41 which are applicable to
that refinery or importer.
(d) Toxics emissions reduction and benzene compliance on average.
(1) The averaging period for the requirements for benzene content and
toxics emission performance is January 1 through December 31 of each
year.
(2) The reformulated gasoline and RBOB produced at any refinery or
imported by any importer during the toxics emissions performance and
benzene averaging periods that is designated for average compliance for
these parameters shall on average meet the standards specified for
toxics emissions performance and benzene in Sec. 80.41 which are
applicable to that refinery or importer.
(3) Each gallon of reformulated gasoline may not exceed the maximum
standard for benzene content specified in Sec. 80.41 which is
applicable to that refinery or importer.
(e) NOX compliance on average. (1) The averaging period
for NOX emissions performance is January 1 through December
31 of each year.
(2) The requirements of this paragraph (e) apply separately to
reformulated gasoline and RBOB in the following categories:
(i) All reformulated gasoline and RBOB that is designated as VOC-
controlled; and
(ii) All reformulated gasoline and RBOB that is not designated as
VOC-controlled.
(3) The reformulated gasoline and RBOB produced at any refinery or
imported by any importer during the NOX averaging period that
is designated for average compliance for NOX shall on average
meet the standards for NOX specified in Sec. 80.41 that are
applicable to that refinery or importer.
(f) [Reserved]
(g) Compliance calculation. 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:
(1)(i)(A) The compliance total using the following formula:
[GRAPHIC] [TIFF OMITTED] TR17JY01.000
Where:
Vi=the volume in gallons of gasoline batch i.
std=the standard for the parameter being evaluated.
n=the number of batches of gasoline produced or imported during the
averaging period.
(B) For computation of the VOC performance standard compliance
total, Std for each VOC control region is determined by the following
formula:
[GRAPHIC] [TIFF OMITTED] TR17JY01.001
Where, for gasoline and RBOB designated for that VOC control region:
Std=the value to be used in the compliance total formula.
[[Page 675]]
Stdu=the averaged VOC emissions performance reduction
standard applicable to reformulated gasoline and RBOB not designated for
compliance with the adjusted VOC gasoline standard.
Stda=the averaged VOC emissions performance reduction
standard applicable to reformulated gasoline and RBOB designated for
compliance with the adjusted VOC gasoline standard.
VUi=the volume of batch i not designated for compliance with
the adjusted VOC gasoline standard.
VAi=the volume of batch i designated for compliance with the
adjusted VOC gasoline standard.
nu=the number of batches produced or imported and not
designated for compliance with the adjusted VOC gasoline standard.
na=the number of batches produced or imported and designated
for compliance with the adjusted VOC gasoline standard.
(C) The actual total using the following formula:
[GRAPHIC] [TIFF OMITTED] TR17JY01.002
Where:
Vi=the volume in gallons of gasoline batch i.
parmi=the parameter value of gasoline batch i.
n=the number of batches of gasoline produced or imported during the
averaging period.
(ii) [Reserved]
(2) For each standard, compare the actual total with the compliance
total.
(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.
(4) For RVP and benzene standards, the actual total must be equal to
or less 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]
(ii) The total number of benzene credits required to achieve
compliance is calculated by subtracting the compliance total from the
actual total benzene.
(6) If the actual total for the benzene standard is less than the
compliance totals, credits for this parameter are generated.
(i) [Reserved]
(ii) The total number of benzene credits which may be traded to
another refinery or importer is calculated by subtracting the actual
total from the compliance total for benzene.
(7) In 2006 only, compliance with the oxygen standards in Sec.
80.41 may be based on the volume and oxygen content of all reformulated
gasoline produced or imported during the period January 1, 2006, through
May 5, 2006 or the volume and oxygen content of all oxygenated
reformulated gasoline produced or imported during the 2006 annual
averaging period (January 1 through December 31).
(h) Credit transfers. (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:
(i) The credits were generated in the same averaging period as they
are used;
(ii) The credit transfer takes place no later than fifteen working
days following the end of the averaging period in which the reformulated
gasoline credits were generated;
(iii) The credits are properly created;
(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.
(2) No party may transfer any credits to the extent such a transfer
would result in the transferor having a negative credit balance at the
conclusion of the averaging period for which the credits were
transferred. Any credits transferred in violation of this paragraph are
improperly created credits.
(3) In the case of credits that were improperly created, the
following provisions apply:
(i) Improperly created credits may not be used to achieve
compliance, regardless of a credit transferee's good
[[Page 676]]
faith belief that it was receiving valid credits;
(ii) No refiner or importer may create, report, or transfer
improperly created credits; and
(iii) Where any credit transferor has in its balance at the
conclusion of any averaging period both credits which were properly
created and credits which were improperly created, the properly created
credits will be applied first to any credit transfers before the
transferor may apply any credits to achieve its own compliance.
(i) Average compliance for reformulated gasoline produced or
imported before January 1, 1995. In the case of any reformulated
gasoline that is intended to be used beginning January 1, 1995, but that
is produced or imported prior to that date:
(1) Any refiner or importer may meet standards specified in Sec.
80.41 for average compliance for such gasoline, provided the refiner or
importer has the option of meeting standards on average for 1995 under
paragraph (a) of this section, and provided the refiner or importer
elects to be subject to average standards under Sec. 80.65(c)(3); and
(2) Any average compliance gasoline under paragraph (i)(1) of this
section shall be combined with average compliance gasoline produced
during 1995 for purposes of compliance calculations under paragraph (g)
of this section.
[38 FR 1255, Jan. 10, 1973, as amended at 62 FR 60135, Nov. 6, 1997; 62
FR 68207, Dec. 31, 1997; 66 FR 37165, July 17, 2001; 71 FR 74568, Dec.
15, 2005; 71 FR 26699, May 8, 2006]