Cal. Code Regs. tit. 13 § 2265.1

Current through Register 2024 Notice Reg. No. 25, June 21, 2024

Section 2265.1 - Offsetting Emissions Associated with Higher Sulfur Levels

(a)Assignment of designated emissions offsetting limits and percent change in emissions values for batches of gasoline for which the emissions associated with higher sulfur levels are being offset.

(1) A producer or an importer that produces gasoline that has elected to be subject to the PM emissions offsetting compliance option must assign a designated emissions offsetting limit for the sulfur, benzene, olefin, aromatic hydrocarbon, and oxygen (maximum and minimum) contents, and for the T90, T50, and RVP (during the RVP regulatory control period in section 2262.4(b)(2)) for each final blend of California gasoline produced by the producer or the importer and satisfying the notification requirements in this section (a). In no case shall a designated emissions offsetting limit be less than the sulfur, benzene, olefin, or aromatic hydrocarbon contents, T90, T50, or RVP, or less than the maximum oxygen content or greater than the minimum oxygen content of the final blend shown by the sample and test conducted pursuant to section 2270. For each final blend, the producer or the importer that produces gasoline shall also assign the percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitrogen, total ozone forming potential, and potency-weighted toxics.

(2)Notification of final blends associated with a final blend deficit

(A) Except as otherwise provided, for each final blend that has a percent change in emissions value greater than 0.04 percent for oxides of nitrogen, total ozone forming potential, or potency-weighted toxics (referred to as the deficit final blend), the producer or the importer that produces gasoline shall notify the executive officer in writing, for receipt by the executive officer before the start of physical transfer of the gasoline from the production facility or the import facility, and in no case less than 12 hours before the producer or the importer that produces gasoline either completes physical transfer or commingles the final blend, with the following information:

1. Justification for using the PM emissions offsetting compliance option, including but not limited to, an explanation for the elevated sulfur level in the final blend and why the batch will not be re-blended or a different predictive model formulation will not be developed,

2. The targeted PM alternative specifications that the producer or the importer that produces gasoline was intending to produce and which would have resulted in a passing PM formulation but for the actual sulfur content of the blend,

3. The percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitrogen, total ozone forming potential, and potency-weighted toxics for the targeted PM alternative specifications,

4. The company name, address, phone number, and contact information,

5. The production facility or import facility name, batch name, number, or other identification, the blend identity, grade of California gasoline, the location (with sufficient specificity to allow ARB inspectors to locate and sample the gasoline; this shall include, but is not limited to, the name of the facility, address, and identification of the tank), and other information that uniquely identifies the California gasoline subject to the PM emissions offsetting compliance option,

6. The estimated volume (in barrels),

7. The designated emissions offsetting limit for RVP, sulfur content, benzene content, aromatics content, olefins content, T50, T90, and oxygen content for the final blend,

8. The percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitrogen, total ozone forming potential, and potency-weighted toxics for the final blend,

9. A statement, signed by a legal representative for the producer or the importer that produces gasoline that all information submitted with the notification is true and correct, and

10. Within 24 hours after the start of the physical transfer, the date and time of the start of physical transfer from the production facility or import facility.

(B) A producer or importer that produces gasoline may report an actual volume that is less than the estimated volume, as long as notification of the actual 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 facility or import facility. If notification of the actual volume is not timely received by the executive officer, the reported estimated volume shall be deemed the reported actual volume. If the actual volume is larger than initially estimated, the producer or the importer that produces gasoline shall revise the reported estimated volume by notifying the executive officer no later than 24 hours after completion of the physical transfer of the final blend from the production facility or import facility.

(3)Notification of final blends associated with a final blend credit.

(A) For each final blend associated with a final blend credit, the producer or the importer that produces gasoline shall notify the Executive Officer in writing for receipt by the Executive Officer before the start of physical transfer of the gasoline from the production facility or the import facility, and in no case less than 12 hours before the producer or the importer that produces gasoline either completes physical transfer or commingles the final blend, with the following information:

1. The company name, address, phone number, and contact information,

2. The production facility or the import facility name, batch name, number, or other identification, the blend identity, grade of California gasoline, the location (with sufficient specificity to allow ARB inspectors to locate and sample the gasoline; this shall include, but is not limited to, the name of the facility, address, and identification of the tank), and other information that uniquely identifies the California gasoline associated with a final blend credit,

3. The estimated volume (in barrels),

4. The designated emissions offsetting limits for RVP, sulfur content, benzene content, aromatics content, olefins content, T50, T90, and oxygen content for the final blend,

5. The percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for oxides of nitrogen, total ozone forming potential, and potency-weighted toxics for the final blend,

6. A statement, signed by a legal representative for the producer or the importer that produces gasoline that all information submitted with the notification is true and correct, and

7. Within 24 hours after the completion of the physical transfer, the date and time of the completion of physical transfer from the production facility or the import facility.

(B) A producer or importer that produces gasoline may report an actual volume that is more than the estimated volume, as long as notification of the actual 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 facility or the import facility. If notification of the actual volume is not timely received by the executive officer, the reported estimated volume shall be deemed the reported actual volume. If the actual volume is less than initially estimated, the producer or the importer that produces gasoline shall revise the reported estimated volume by notifying the executive officer no later than 24 hours after completion of the physical transfer of the final blend from the production facility or import facility.

(4) If, through no intentional or negligent conduct, a producer or importer that produces gasoline cannot report within the time period specified in (a)(2) or (a)(3) above, the producer or importer that produces gasoline 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)(4) have been met, timely notification shall be deemed to have occurred.

(5) The executive officer may enter into a written protocol with any individual producer or importer that produces gasoline for the purposes of specifying how the requirements in sections (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 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.

(b)Additional prohibitions regarding gasoline with designated emissions offsetting limits and final blend credits or deficits.

(1) No producer or importer that produces gasoline shall sell, offer for sale, or supply California gasoline with a final blend deficit, 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 that produces gasoline shall sell, offer for sale or supply California gasoline with a final blend credit, 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).

(3) Final blend credits shall not include offsets or other reductions that are otherwise required by any local, State, or federal rule, regulation, or statute, or that are achieved or estimated from California gasoline not produced or imported in the same air basin as the gasoline with a final blend deficit, or that are claimed under any alternative emission reduction plan.

(c)Offsetting a final blend deficit. With respect to each final blend for which a producer or importer that produces gasoline has elected to be subject to the PM emissions offsetting compliance option, within 90 days after the start of physical transfer from a production facility or import facility of any final blend of California gasoline with a final blend deficit, the producer or importer shall complete physical transfer from the same production facility or import facility of California gasoline with a final blend credit in sufficient quantity and for the same emissions parameter (oxides of nitrogen, total ozone forming potential, or potency-weighted toxics) to fully offset the final blend deficit.

For example, within 90 days after the start of physical transfer from a production facility or import facility of 100 barrels of any final blend of California gasoline to which a producer or importer that produces gasoline has assigned a designated emissions offsetting limit which results in a 0.10 percent increase in oxides of nitrogen, the producer or importer that produces gasoline shall complete physical transfer from the same production facility or import facility of California gasoline in sufficient quantity and quality to offset the 6 deficit points for oxides of nitrogen. The final blend deficit is calculated as:

Final Blend Deficit=(0.10-0.04) x 100=6

(d)Automatic termination of the producer's or importer's use of the PM emissions offsetting compliance option.

When a producer or importer that produces gasoline has fully offset the final blend deficit, the producer's or importer's use of the PM emissions offsetting compliance option automatically terminates. Prior to selling, supplying, or offering California gasoline after the termination, the producer or importer that produces gasoline must elect to use the flat limits, designated alternative limits, PM alternative specifications, or TC limits for its next final blend. The producer or importer that produces gasoline may not use any remaining final blend credits to provide offsets pursuant to section 2265.1(c) for any final blend sold, offered, or supplied from the production facility or import facility subsequent to the election.

Cal. Code Regs. Tit. 13, § 2265.1

1. New section filed 8-29-2008; operative 8-29-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 35).
2. Amendment of subsection (a)(3)(A) and redesignation of former subsections (a)(3)(A)(1)-(7) as new subsections (a)(3)(A)1.-7. 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).