Ariz. Admin. Code § 3-7-760

Current through Register Vol. 30, No. 50, December 13, 2024

Section R3-7-760 - Compliance Surveys

A. A registered supplier shall conduct surveys for oxygenate blending during the winter and a compliance survey during the summer. The winter survey shall be conducted following the requirements in subsection (A), or using an independent third-party surveyor following the requirements in subsections (B) and (D). The summer survey shall be conducted following the requirements in subsection (C), or using an independent third-party surveyor following the requirements in subsections (C) and (D). Surveys for oxygenate blending during the winter: A registered supplier supplying AZRBOB from a production or import facility shall conduct an oxygenate blending survey program to be carried out at the facilities of each oxygenate blender who blends any AZRBOB produced or imported by the refiner or importer with any oxygenate, to determine whether the Arizona CBG, which has been produced through blending, complies with the applicable standards using the methodology specified in R3-7-759. The sampling and testing program shall be conducted as follows:

1. Samples shall be collected in accordance with ASTM D4057 and be analyzed for oxygenates. All samples shall be collected subsequent to the addition of oxygenate and prior to combining the resulting gasoline with any other gasoline.

2. Sampling and testing shall be at one of the following rates, regardless of the amount of oxygenate added:

a. In the case of AZRBOB which is blended with oxygenate in a gasoline storage tank, a rate of not less than one sample for every 400,000 barrels of AZRBOB produced or imported by that refiner or importer that is blended by that oxygenate blender, or one sample every month, whichever is more frequent;

b. In the case of AZRBOB 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 AZRBOB produced or imported by that refiner or importer that is blended by that oxygenate blender, or one sample every three months, whichever is more frequent; or

c. In the case of AZRBOB 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 AZRBOB produced or imported by that refiner or importer which is blended, or one sample per month, whichever is more frequent.

3. In the event that the test results for any sample indicate the gasoline does not comply with applicable standards, including reproducibility, the refiner or importer shall:

a. Immediately take steps to stop the sale of the gasoline that was sampled;

b. Take steps which are reasonably calculated to determine and correct the cause of the noncompliance;

c. Increase the rate of sampling and testing to double the required frequency outlined in subsection (A)(2); and

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.

4. This survey program conducted by a registered supplier shall be conducted in addition to any survey requirements carried out under this subsection by other registered suppliers.

B. Instead of conducting the oxygenate blending survey program in subsection (A), the registered supplier may use an independent third-party surveyor to conduct a winter oxygenate blending survey that meets the following requirements:

1. Designed and conducted by an independent third-party surveyor that meets the requirements of subsection (D)(2)(a);

2. Conducted November 1 through March 31 on all samples collected under the program design approved by the associate director under subsection (D);

3. Involves sampling and testing that is representative of all Arizona CBG dispensed in the CBG-covered area, including a representative number of E15 samples;

4. Analyzes each sample for oxygenate according to the methodologies specified in R3-7-759;

5. Collects samples of gasoline produced at blender pumps using "Method #1" of the E15 Sampling Procedure specified in Handbook 158;

6. Verifies compliance of E15 labeling requirements at gasoline retail outlets that offer E15 for sale; and

7. Includes a sufficient amount of samples to ensure that the average levels of oxygen is determined at a 95% confidence level with an error of 0.1% or less for oxygen by weight.

C. Summer Compliance Surveys. A registered supplier shall ensure that compliance surveys are conducted in accordance with a compliance survey program plan approved by the associate director. A registered supplier may use an independent third-party surveyor as outlined in subsection (D) to conduct a summer compliance survey. The associate director shall approve a compliance survey program plan if the plan:

1. Consists of at least four VOC and NOx surveys conducted at least once per month between June 1 and September 30 of each year;

2. Consists of all samples that are collected under an approved survey program plan during any consecutive seven days;

3. Is representative of all Arizona CBG being dispensed in the CBG-covered area including a representative number of E15 samples;

4. Includes enough samples to ensure that the average levels of oxygen, vapor pressure, aromatic hydrocarbons, olefins, T50, T90, and sulfur are determined at a 95% confidence level with an error of:

a. 0.1% or less for oxygen by weight;

b. 0.1 psi for vapor pressure;

c. 0.5% for aromatic hydrocarbons by volume;

d. 0.5% for olefins by volume;

e. 5º F for T50 and T90; and

f. 10 ppm for sulfur.

5. Analyzes each sample included in the compliance survey for oxygenate type and content, olefins, sulfur, aromatic hydrocarbons, E200, E300, and vapor pressure according to the test methods in R3-7-759 (vapor pressure is required to be analyzed only from June 1 through September 30); and

6. If a laboratory analyzes the compliance survey samples, the laboratory participates in a correlation program approved by the associate director to ensure the validity of analysis results.

7. For each compliance survey sample, determine the VOC and NOx emissions reduction percentage based upon the tested fuel properties for that sample using the methodology for calculating VOC and NOx emissions reductions under the Federal Complex Model.

D. An independent third-party surveyor may conduct the winter oxygenate blending survey outlined in subsection (B) and the summer compliance survey outlined in subsection (C), if the survey program:

1. Is approved by the associate director;

2. Is designed and conducted by a third-party surveyor that is independent of the registered supplier. To be considered independent:

a. The surveyor shall not be an employee of any registered supplier;

b. The surveyor shall not have an obligation to, or interest in, any registered supplier; and

c. The registered supplier shall not have an obligation to or interest in the surveyor.

3. Requires that the surveyor not provide advance notice, except as provided in subsection (D)(8), of the date or location of any survey sampling;

4. Provides a duplicate of any sample taken during the survey to the associate director, upon request of the associate director within 30 days following submission of the survey report required under subsection (D)(7), including:

a. Information regarding the name and address of the facility from where the sample was collected, and

b. The date of collection;

5. Requires that the surveyor permit a Division official to monitor sample collection, transportation, storage, and analysis at any time;

6. Requires the laboratory to participate in a correlation program approved by the associate director to ensure the validity of analysis results;

7. Requires the surveyor to submit a report of each survey to the associate director within 30 days after sampling is completed, including the following information:

a. Name of the person conducting the survey;

b. Attestation by an officer of the surveyor that the sampling and testing was conducted according to the compliance survey program plan and the results are accurate;

c. Identification of the registered supplier for whom the compliance survey was conducted if the compliance survey was conducted for only one registered supplier;

d. Identification of the area from which survey samples were selected;

e. Dates on which the survey was conducted;

f. Address of each facility at which a sample was collected, and the date of collection;

g. Name and address of each laboratory at which samples were analyzed;

h. Description of the method used to select the facilities from which a sample was collected;

i. Number of samples collected from each facility;

j. Justification for excluding a collected sample from the survey, if one was excluded; and

k. For a survey conducted under subsection (A), analyzes each sample for oxygenate according to the methodologies specified in R3-7-759; or

l. For a survey conducted under subsection (C), results of the sample analysis for oxygenate type, oxygen weight percent, aromatic hydrocarbons, olefin content, E200, E300, vapor pressure, and the calculated VOC or NOx emissions reduction percentage, as applicable, for each survey conducted during the period identified in subsection (C)(1);

8. Begins each survey on a date selected by the associate director, or as approved in the survey program. The associate director shall notify the surveyor of the date selected at least 10 days before the survey is to begin.

E. To obtain the associate director's approval of a survey program plan, the person seeking approval shall:

1. Submit the plan to the associate director no later than January 1 to cover the survey period of November 1 through March 31 or June 1 through September 15 of each year, as applicable; and

2. Have the plan signed by a corporate officer of the registered supplier or by an officer of the independent third-party surveyor.

F. If the associate director determines that a sample used in a compliance survey does not comply with R3-7-751 or another requirement under this Article, the associate director may take enforcement action against the registered supplier, oxygenate blender, and/or retail location.

G. If a registered supplier fails to ensure that an approved compliance survey program is conducted, the associate director may consider all batches delivered into the CBG-covered area during the survey period as non-compliant.

H. No later than April 1 of each year, a registered supplier that intends to meet the requirements in subsections (A) and (C) by contracting with an independent third-party surveyor to conduct the compliance survey plan for the next summer and winter season shall enter into the contract and pay all of the money necessary to conduct the compliance survey plan. The registered supplier may pay the money necessary to conduct the compliance survey plan to the independent third-party surveyor or to an escrow account with instructions to the escrow agent to release the money to the independent third-party surveyor as the compliance survey plan is implemented. No later than April 15, the registered supplier shall submit to the associate director a copy of the contract with the independent third-party surveyor, proof that the money necessary to conduct the compliance survey plan has been paid, and, if applicable, a copy of the escrow agreement.

I. A registered supplier is exempt from the survey requirements of this section if they supply less than 1,000,000 gallons of Arizona CBG or AZRBOB within a calendar year.

Ariz. Admin. Code § R3-7-760

Adopted by final rulemaking at 23 A.A.R. 2280, effective 10/2/2017. Amended by final rulemaking at 29 A.A.R. 442, effective 3/5/2023.