Section 2264 - Designated Alternative Limits(a) Assignment of a designated alternative limit. (1) A producer or importer that has elected to be subject to an averaging limit specified in section 2262 may assign a designated alternative limit to a final blend of California gasoline produced or imported by the producer or importer by satisfying the notification requirements in this section (a). In no case shall a designated alternative limit be less than the sulfur, benzene, olefin or aromatic hydrocarbon content, or T90 or T50, of the final blend shown by the sample and test conducted pursuant to section 2270, or section 2266.5(a), as applicable. If a producer or importer intends to assign designated alternative limits for more than one gasoline specification to a given quantity of gasoline, the party shall identify the same final blend for all designated alternative limits for the gasoline.(2)(A) The producer or importer shall notify the executive officer of the estimated volume (in gallons), the designated alternative limit, the blend identity, and the location of each final blend receiving a designated alternative limit. This notification shall be received by the executive officer before the start of physical transfer of the gasoline from the production or import facility, and in no case less than 12 hours before the producer or importer either completes physical transfer or commingles the final blend. A producer or importer may revise the reported estimated volume, as long as notification of the revised volume is received by the executive officer no later than 48 hours after completion of the physical transfer of the final blend from the production or import facility. If notification of the revised volume is not timely received by the executive officer, the reported estimated volume shall be deemed the reported actual volume.(B) For each final blend receiving a designated alternative limit exceeding an applicable averaging limit in section 2262, the producer or importer shall notify the executive officer of the date and time of the start of physical transfer from the production or import facility, within 24 hours after the start of such physical transfer. For each final blend receiving a designated alternative limit less than an applicable averaging limit in section 2262, the producer or importer shall notify the executive officer of the date and time of the completion of physical transfer from the production or import facility, within 24 hours after the completion of such physical transfer.(3) If, through no intentional or negligent conduct, a producer or importer cannot report within the time period specified in (a)(2) above, the producer or importer may notify the executive officer of the required data as soon as reasonably possible and may provide a written explanation of the cause of the delay in reporting. If, based on the written explanation and the surrounding circumstances, the executive officer determines that the conditions of this section (a)(3) have been met, timely notification shall be deemed to have occurred.(4) The executive officer may enter into a written protocol with any individual producer or importer for the purposes of specifying how the requirements in section (a)(2) and (c) shall be applied to the producer's or importer's particular operations, as long as the executive officer reasonably determines that application of the regulatory requirements under the protocol is not less stringent or enforceable than application of the express terms of section (a)(2) and (c). Any such protocol shall include the producer's or importer's agreement to be bound by the terms of the protocol.(5) Whenever the final blend of a producer or importer includes volumes of gasoline the party has produced or imported and volumes the party has neither produced nor imported, the producer's or importer's designated alternative limit shall be assigned and applied only to the volume of gasoline the party has produced or imported. In such a case, the producer or importer shall report to the executive officer in accordance with section (a) both the volume of gasoline produced and imported by the party, and the total volume of the final blend. The party shall also additionally report the sulfur content, benzene content, olefin content, aromatic hydrocarbon content, T90, and T50, as applicable, of the portion of the final blend neither produced nor imported by the party, determined as set forth in section 2270(b), or section 2266.5(a)(2), as applicable.(b) Additional prohibitions regarding gasoline to which a designated alternative limit has been assigned. (1) No producer or importer shall sell, offer for sale, or supply California gasoline in a final blend to which the producer or importer has assigned a designated alternative limit exceeding an applicable averaging limit in section 2262, where the total volume of the final blend sold, offered for sale, or supplied exceeds the volume reported to the executive officer pursuant to section (a).(2) No producer or importer shall sell, offer for sale or supply California gasoline in a final blend to which the producer or importer has assigned a designated alternative limit less than an applicable averaging limit in section 2262, where the total volume of the final blend sold, offered for sale, or supplied is less than the volume reported to the executive officer pursuant to section (a).(c) Offsetting exceedances of an applicable averaging limit.(1) With respect to each property for which a producer or importer has elected to be subject to the averaging limit in section 2262, within 90 days before or after the start of physical transfer from a production or import facility of any final blend of California gasoline to which a producer has assigned a designated alternative limit for the property exceeding the applicable averaging limit in section 2262, the producer or importer shall complete physical transfer from the same production or import facility of California gasoline in sufficient quantity and with a designated alternative limit sufficiently below the applicable averaging limit in section 2262 to fully offset the extent to which the gasoline exceeded the applicable averaging limit in section 2262. In the case of benzene, olefins, or aromatic hydrocarbons, the total volume of benzene, olefins, or aromatic hydrocarbons in excess of the averaging limit must be offset within the specified time period; the total mass of sulfur and the degree gallons of T50 and T90 in excess of the averaging limit must be similarly offset. For example, within 90 days before or after the start of physical transfer from a production or import facility of any final blend of California gasoline to which a producer has assigned a designated alternative limit for olefin exceeding 4.0 percent by volume, the producer or importer shall complete physical transfer from the same production or import facility of California gasoline in sufficient quantity and with a designated alternative limit sufficiently below 4.0 percent by volume to offset the volume of the olefins in excess of a limit of 4.0 percent by volume.
(2) A producer or importer may enter into a protocol with the Executive Officer under which the producer or importer is allowed to have up to six separate averaging banks at a single production or import facility, applicable to operationally distinct products (e.g. different grades of gasoline or oxygenated and nonoxygenated). The offset requirements will apply independently for each separate averaging bank. Once averaging is selected for a particular product, the compliance scheme for that product may only be changed if the change meets the applicable criteria and conditions in sections 2264.2 and 2265(c) with respect to that product. The protocol shall specify how the requirements in section (a)(2) and (c)(1) will be applied to the producer's or importer's particular operations and the separate averaging banks. In order to enter into the protocol, the Executive Officer must determine that application of the requirements under the protocol will not be less stringent or enforceable than application of the express terms of sections (a)(2) and (c). Any such protocol shall include the producer's or importer's agreement to be bound by the terms of the protocol.(d) Designated alternative limits for PM alternative gasoline formulations. The producer or importer of a final blend of California gasoline that is subject to the PM averaging compliance option for one or more properties may assign a designated alternative limit to the final blend by satisfying the notification requirements of section 2264(a). The producer or importer of such a final blend shall be subject to all of the provisions of this section 2264, except that, with respect to that final blend, the PM averaging limit (if any) for each property subject to the PM averaging compliance option shall replace any reference in this section 2264 to the averaging limit specified in section 2262.Cal. Code Regs. Tit. 13, § 2264
1. New section filed 11-16-92; operative 12-16-92 (Register 92, No. 47).
2. Amendment of subsections (a)(1)-(5), (b)(1)-(2), and (h) and new subsection (i) filed 6-2-95; operative 7-3-95 (Register 95, No. 22).
3. Amendment of subsections (a)(1) and (a)(4)-(5) and new subsection (j) filed 2-28-96; operative 2-28-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 9).
4. Editorial correction of subsection (j) (Register 97, No. 17).
5. Change without regulatory effect providing correct placement of subsection (j) filed 4-24-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 17).
6. Amendment of section and NOTE filed 8-3-2000; operative 9-2-2000 (Register 2000, No. 31).
7. Amendment of subsection (a)(4), redesignation and amendment of former subsection (c) as new subsection (c)(1) and new subsection (c)(2) filed 8-20-2001; operative 8-20-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 34).
8. Amendment of subsection (d) filed 10-9-2012; operative 10-9-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 41). Note: Authority cited: Sections 39600, 39601, 43013, 43013.1, 43018 and 43101, Health and Safety Code; and Western Oil and Gas Ass'n. v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal. Rptr. 249 (1975). Reference: Sections 39000, 39001, 39002, 39003, 39010, 39500, 39515, 39516, 41511, 43000, 43013, 43013.1, 43016, 43018 and 43101, Health and Safety Code; and Western Oil and Gas Ass'n. v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal. Rptr. 249 (1975).
1. New section filed 11-16-92; operative 12-16-92 (Register 92, No. 47).
2. Amendment of subsections (a)(1)-(5), (b)(1)-(2), and (h) and new subsection (i) filed 6-2-95; operative 7-3-95 (Register 95, No. 22).
3. Amendment of subsections (a)(1) and (a)(4)-(5) and new subsection (j) filed 2-28-96; operative 2-28-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 9).
4. Editorial correction of subsection (j) (Register 97, No. 17).
5. Change without regulatory effect providing correct placement of subsection (j) filed 4-24-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 17).
6. Amendment of section and Note filed 8-3-2000; operative 9-2-2000 (Register 2000, No. 31).
7. Amendment of subsection (a)(4), redesignation and amendment of former subsection (c) as new subsection (c)(1) and new subsection (c)(2) filed 8-20-2001; operative 8-20-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 34).
8. Amendment of subsection (d) filed 10-9-2012; operative 10-9-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 41).