[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: 40CFR80.69]



[Page 682-686]

 

                   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.  80.69  Requirements for downstream oxygenate blending.



    The requirements of this section apply to all reformulated gasoline 

blendstock for oxygenate blending, or RBOB, to which oxygenate is added 

at any oxygenate blending facility, except that paragraph (a)(7) of this 

section does not apply to adjusted VOC gasoline as defined in Sec.  

80.40(c).

    (a) Requirements for refiners and importers. For any RBOB produced 

or imported, the refiner or importer of the RBOB shall:



[[Page 683]]



    (1) Produce or import the RBOB such that, when blended with a 

specified type and percentage of oxygenate, it meets the applicable 

standards for reformulated gasoline;

    (2) In order to determine the properties of RBOB for purposes of 

calculating compliance with per-gallon or averaged standards, conduct 

tests on each batch of the RBOB by:

    (i) Adding the specified type and amount of oxygenate to a 

representative sample of the RBOB; and

    (ii) Determining the properties and characteristics of the resulting 

gasoline using the methodology specified in Sec.  80.65(e);

    (3) Carry out the independent analysis requirements specified in 

Sec.  80.65(f);

    (4) [Reserved]

    (5) Transfer ownership of the RBOB only to an oxygenate blender who 

is registered with EPA as such, or to an intermediate owner with the 

restriction that it only be transferred to a registered oxygenate 

blender;

    (6) Have a contract with each oxygenate blender who receives any 

RBOB produced or imported by the refiner or importer that requires the 

oxygenate blender, or, in the case of a contract with an intermediate 

owner, that requires the intermediate owner to require the oxygenate 

blender to:

    (i) Comply with blender procedures that are specified by the 

contract and are calculated to assure blending with the proper type and 

amount of oxygenate;

    (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.

    (7) Conduct a quality assurance sampling and testing program to be 

carried out at the facilities of each oxygenate blender who blends any 

RBOB produced or imported by the refiner or importer with any oxygenate, 

to determine whether the reformulated gasoline which has been produced 

through blending complies with the applicable standards, using the 

methodology specified in Sec.  80.46 for this determination.

    (i) The sampling and testing program shall be conducted as follows:

    (A) All samples shall be collected subsequent to the addition of 

oxygenate, and either:

    (1) Prior combining the resulting gasoline with any other gasoline; 

or

    (2) In the case of truck splash blending, subsequent to the delivery 

of the gasoline to a retail outlet or wholesale purchaser-consumer 

facility provided that the three most recent deliveries to the retail 

outlet or wholesale purchaser facility were of gasoline produced using 

that refiner's or importer's RBOB, and provided that any discrepancy 

found through the retail outlet or wholesale purchaser facility sampling 

is followed-up with measures reasonably designed to discover the cause 

of the discrepancy; and

    (B) Sampling and testing shall be at one of the following rates:

    (1) In the case of RBOB which is blended with oxygenate in a 

gasoline storage tank, a rate of not less than one sample for every 

400,000 barrels of RBOB produced or imported by that refiner or importer 

that is blended by that blender, or one sample every month, whichever is 

more frequent; or

    (2) In the case of RBOB which is blended with oxygenate in gasoline 

delivery trucks through the use of computer-controlled in-line blending 

equipment, a rate of not less than one sample for every 200,000 barrels 

of RBOB produced or imported by that refiner or importer that is blended 

by that blender, or one sample every three months, whichever is more 

frequent; or

    (3) In the case of RBOB which is blended with oxygenate in gasoline 

delivery trucks without the use of computer-controlled in-line blending 

equipment, a rate of not less than one sample for each 50,000 barrels of 

RBOB produced or imported by that refiner or importer which is blended, 

or one sample per month, whichever is more frequent;

    (ii) In the event the test results for any sample indicate the 

gasoline does not comply with applicable standards (within the 

correlation ranges specified in Sec.  80.65(e)(2)(i)), the refiner or 

importer shall:



[[Page 684]]



    (A) Immediately take steps to stop the sale of the gasoline that was 

sampled;

    (B) Take steps which are reasonably calculated to determine the 

cause of the noncompliance and to prevent future instances of 

noncompliance;

    (C) Increase the rate of sampling and testing to one of the 

following rates:

    (1) In the case of RBOB which is blended with oxygenate in a 

gasoline storage tank, a rate of not less than one sample for every 

200,000 barrels of RBOB produced or imported by that refiner or importer 

that is blended by that blender, or one sample every two weeks, 

whichever is more frequent; or

    (2) In the case of RBOB which is blended with oxygenate in gasoline 

delivery trucks through the use of computer-controlled in-line blending 

equipment, a rate of not less than one sample for every 100,000 barrels 

of RBOB produced or imported by that refiner or importer that is blended 

by that blender, or one sample every two months, whichever is more 

frequent; or

    (3) In the case of RBOB which is blended with oxygenate in gasoline 

delivery trucks without the use of computer-controlled in-line blending 

equipment, a rate of not less than one sample for each 25,000 barrels of 

RBOB produced or imported by that refiner or importer which is blended, 

or one sample every two weeks, whichever is more frequent;

    (D) Continue the increased frequency of sampling and testing until 

the results of ten consecutive samples and tests indicate the gasoline 

complies with applicable standards, at which time the sampling and 

testing may be conducted at the original frequency;

    (iii) This quality assurance program is in addition to any quality 

assurance requirements carried out by other parties;

    (8)-(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:

    (i) Has VOC, toxics, or NOX emissions reduction 

percentages which are no lower than the percentages that formed the 

basis for the refiner's or importer's compliance determination for these 

parameters;

    (ii) Has a benzene content and RVP level which are no higher than 

the values for these characteristics that formed the basis for the 

refiner's or importer's compliance determinations for these parameters; 

and

    (iii) Will not cause the reformulated gasoline to violate any 

standard specified in Sec.  80.41.

    (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.



[59 FR 7813, Feb. 16, 1994, as amended at 59 FR 36964, July 20, 1994; 62 

FR 60135, Nov. 6, 1997; 66 FR 37165, July 17, 2001; 71 FR 74569, Dec. 

15, 2005; 71 FR 26700, May 8, 2006]



    Effective Date Note: At 71 FR 31959, June 2, 2006, Sec.  80.69 was 

amended by adding paragraph (a)(11), effective Aug. 1, 2006. For the 

convenience of the user, the added text is set forth as follows:



Sec.  80.69  Requirements for downstream oxygenate blending.



                                * * * * *



    (a) * * *



[[Page 685]]



    (11) Any refiner or importer who produces or imports RBOB may comply 

with the following alternative quality assurance requirement instead of 

the contract and quality assurance sampling and testing requirements in 

paragraphs (a)(6) and (a)(7) of this section:

    (i) To comply with the alternative quality assurance requirement 

under this paragraph (a)(11), a refiner or importer must either arrange 

to have an independent surveyor conduct a comprehensive program of 

annual compliance surveys, or participate in the funding of an 

organization which arranges to have an independent surveyor conduct a 

comprehensive program of annual compliance surveys, to be carried out in 

accordance with a survey plan which has been approved by EPA.

    (ii) The annual compliance surveys under this paragraph (a)(11) 

shall be:

    (A) Planned and conducted by an independent surveyor that meets the 

requirements in Sec.  80.68(c)(13)(i);

    (B) Conducted at retail gasoline outlets in a specified reformulated 

gasoline covered area;

    (C) Representative of all reformulated gasoline being dispensed in 

the specified reformulated gasoline covered area; and

    (D) Designed to achieve at least the same level of quality assurance 

required under paragraph (a)(7) of this section.

    (iii) The compliance survey program shall require the independent 

surveyor conducting the surveys to:

    (A) Obtain gasoline samples in accordance with the survey plan 

approved under this paragraph (a)(11), or immediately notify EPA of any 

refusal of retail outlets to allow samples to be taken;

    (B) Test or arrange for the samples to be tested for type and amount 

of oxygenate;

    (C)(1) Obtain the product transfer documents associated with the 

gasoline sample from the retail outlet; or immediately notify EPA of any 

refusal of any party to provide product transfer documents that should 

be within their possession; and

    (2) Immediately notify EPA of any case where the product transfer 

documents obtained from the retail outlet do not contain the information 

required in paragraph (a)(11)(vii)(A) of this section, or any case where 

the gasoline does not contain the type and/or minimum amount of 

oxygenate stated on the product transfer documents;

    (D) Where the test results indicate that the gasoline does not 

contain the type and/or minimum amount of oxygenate stated on the 

product transfer documents:

    (1) Determine the oxygenate blending facility that supplied the 

gasoline; and

    (2) Obtain from the oxygenate blender documentation of the refiner's 

or importer's oxygenate blending instructions for the gasoline;

    (E) Immediately notify EPA of any case where the test results 

obtained by the independent surveyor indicate that the gasoline does not 

contain the type and/or minimum amount of oxygenate designated for the 

RBOB in the refiner's or importer's blending instructions;

    (F) Immediately notify EPA of any instances where a refiner, 

importer, terminal, distributor, carrier or retail outlet fails to 

cooperate in the manner described in paragraph (a)(11)(vi) of this 

section.

    (G) Submit to EPA a report of each survey, within thirty days 

following completion of the survey, such report to include the following 

information:

    (1) The identification of the person who conducted the survey;

    (2) An attestation by an officer of the surveyor company that the 

survey was conducted in accordance with the survey plan and that the 

survey results are accurate;

    (3) Identification of the party(ies) for whom the survey was 

conducted;

    (4) The identification of the covered area surveyed;

    (5) The dates on which the survey was conducted;

    (6) The address of each facility at which a gasoline sample was 

collected and the date of collection;

    (7) The results of the analyses of the samples for type and amount 

of oxygenate;

    (8) The name and address of each laboratory where the gasoline 

samples were analyzed;

    (9) A description of the methodology utilized to select the 

locations for sample collection and the number of samples collected; and

    (10) For any samples excluded from the survey, a justification for 

such exclusion.

    (H) Maintain all records relating to the surveys conducted under 

this paragraph (a)(11) for a period of at least 5 years; and

    (I) At any time permit any representative of EPA to monitor the 

conduct of the surveys, including sample collection, transportation, 

storage, and analysis.

    (iv) A survey plan under this paragraph (a)(11) must include:

    (A) Identification of the party(ies) for whom the survey is to be 

conducted;

    (B) Identification of the independent surveyor;

    (C) A methodology for determining:

    (1) When the samples will be collected;

    (2) The sample collection locations; and

    (3) The number of samples to be collected during the annual 

compliance period;

    (D) A process for notifying oxygenate blenders and other downstream 

parties in the affected RFG area of the product transfer documentation 

requirements in paragraph (a)(11)(vii)(A) of this section; and



[[Page 686]]



    (E) Any other elements determined by EPA to be necessary to achieve 

the level of quality assurance required under paragraph (a)(11)(ii)(D) 

of this section.

    (v) Any sampling and testing pursuant to a survey plan under this 

paragraph (a)(11) must be conducted in a manner consistent with the 

applicable provisions of Sec. Sec.  80.8 and 80.46.

    (vi)(A) Each refiner and importer who participates in the 

alternative quality assurance program under this paragraph (a)(11) must 

take all reasonable steps to ensure that each oxygenate blender, 

distributor, carrier and retail outlet cooperates in this program by 

allowing the independent surveyor to collect samples and by providing to 

the independent surveyor and/or EPA, upon request, copies of product 

transfer documents and other records or information regarding the source 

of any gasoline received, the destination of any gasoline distributed, 

the oxygenate blending instructions for the RBOB, and the rate (volume 

%) that oxygenate was blended into the gasoline.

    (B) Reasonable steps under paragraph (a)(11)(vii) of this section 

must include, but typically should not be limited to, contractual 

agreements with any branded facilities of the refiner or importer, 

including any terminals, distributors, carriers and retail outlets, 

which require the branded facility to cooperate with the independent 

surveyor and/or EPA in the manner described in paragraph (a)(11)(vii)(A) 

of this section.

    (vii)(A) Any terminal that blends oxygenate with RBOB which is 

produced or imported by any refiner or importer that complies with the 

alternative quality assurance requirement under this paragraph (a)(11), 

and any parties downstream from such oxygenate blending terminal, must 

include on product transfer documents information regarding the type and 

amount of oxygenate contained in the gasoline and identification of the 

oxygenate blending facility that blended the gasoline.

    (B) If a party downstream from a refiner or importer that complies 

with the alternative quality assurance requirement under this paragraph 

(a)(11) fails to receive notice of the requirements in paragraph 

(a)(11)(vii)(A) of this section, upon notification from EPA, the party 

must thereafter comply with the requirements in paragraph 

(a)(11)(vii)(A) of this section.

    (viii) The procedure for obtaining EPA approval of a survey plan 

under this paragraph (a)(11), and for revocation of any such approval, 

are as follows:

    (A) A detailed survey plan which complies with the requirements of 

this paragraph (a)(11) must be submitted to EPA, no later than September 

1 of the year preceding the calendar year in which the surveys will be 

conducted;

    (B) The survey plan must be signed by a responsible corporate 

officer of the refiner or importer, or responsible officer of the 

organization which arranges to have an independent surveyor conduct a 

program of compliance surveys, as applicable; and

    (C) The survey plan must be sent to the following address: Director, 

Transportation and Regional Programs Division, U.S. Environmental 

Protection Agency, 1200 Pennsylvania Ave., NW., (6406J), Washington, DC 

20460;

    (D) EPA will send a letter to the party submitting a survey plan 

under this section, either approving or disapproving the survey plan;

    (E) EPA may revoke any approval of a survey plan under this section 

for cause, including an EPA determination that the approved survey plan 

has proved to be inadequate in practice or that it was not diligently 

implemented;

    (F) The approving official for an alternative quality assurance 

program under this section is the Director of the Transportation and 

Regional Programs Division, Office of Transportation and Air Quality.

    (G) Any notifications required under this paragraph (a)(11) must be 

directed to the official designated in paragraph (a)(11)(viii)(F) of 

this section.

    (ix)(A) No later than December 1 of the year preceding the year in 

which the surveys will be conducted, the contract with the independent 

surveyor shall be in effect, and an amount of money necessary to carry 

out the entire survey plan shall be paid to the independent surveyor or 

placed into an escrow account with instructions to the escrow agent to 

pay the money to the independent surveyor during the course of the 

conduct of the survey plan;

    (B) No later than December 15 of the year preceding the year in 

which the surveys will be conducted, EPA must receive a copy of the 

contract with the independent surveyor, proof that the money necessary 

to carry out the survey plan has either been paid to the independent 

surveyor or placed into an escrow account, and, if placed into an escrow 

account, a copy of the escrow agreement, to be sent to the official 

designated in paragraph (a)(11)(viii)(F) of this section.

    (x) A failure of any refiner or importer to fulfill or cause to be 

fulfilled any of the requirements of this paragraph (a)(11) will cause 

the option to use the alternative quality assurance requirements under 

this paragraph (a)(11) to be void ab initio.



                                * * * * *