Cal. Code Regs. tit. 17 § 95121

Current through Register 2024 Notice Reg. No. 25, June 21, 2024
Section 95121 - Suppliers of Transportation Fuels

Any position holder, refiner, or enterer, or biofuel production facility who is required to report under section 95101 of this article must comply with Subpart MM of 40 CFR Part 98 (§§ 98.390 to 98.398) in reporting emissions and related data to ARB, except as otherwise provided in this section.

(a)GHGs to Report.
(1) In addition to the CO2 emissions specified under 40 CFR § 98.392, all refiners that produce liquefied petroleum gas must report the CO2, CH4, N2O and CO2e emissions that would result from the complete combustion or oxidation of the annual quantity of liquefied petroleum gas sold or delivered, except for fuel for which a final destination outside California can be demonstrated.
(2) Refiners, position holders of fossil fuels and biomass-derived fuels that supply fuel at California terminal racks, and enterers that import fossil transportation fuels for distribution outside the bulk transfer/terminal system must report the CO2, CO2 from biomass-derived fuels, CH4, N2O, and CO2e emissions that would result from the complete combustion or oxidation of each Blendstock, Distillate Fuel Oil or biomass-derived fuel (Biomass-Based Fuel and Biomass) listed in Table 2-4 of this section. However, emissions reporting is not required for fuel in which a final destination outside California, where a use in exclusively aviation or marine applications can be demonstrated, or for fossil transportation fuels that can be demonstrated to have been previously delivered by a position holder or refiner out of an upstream California terminal or refinery rack prior to delivery out of a second terminal rack. The volume of all Blendstocks, Distillate Fuel Oils, and biomass-derived fuels that are excluded from emissions reporting based on the criteria in this paragraph must be reported pursuant to the requirements in section 95121(d)(9). No fuel shall be reported as finished fuel. Fuels must be reported as the individual Blendstock, Distillate Fuel Oil or biomass-derived fuel listed in Table 2-4 of this section. For purposes of this article, CARBOB blendstocks are reported as RBOB blendstocks.
(b)Calculating GHG emissions.
(1) Refiners, position holders at California terminals, and enterers that import fossil transportation fuels for distribution outside the bulk transfer system must use Equation MM-1 as specified in 40 CFR § 98.393(a)(1) to estimate the CO2 emissions that would result from the complete combustion of the fuel. Emissions must be based on the quantity of fuel removed from the rack (for refiners and position holders), fuel imported for distribution outside the bulk transfer/terminal system (by enterers), and fuel sold to unlicensed entities as specified in section 95121(d)(3) (by refiners). For fuels that are blended, emissions must be reported for each individual Blendstock, Distillate Fuel Oil or biomass-derived fuel listed in Table 2-5 of this section separately, and not as motor gasoline (finished), biofuel blends, or other similar finished fuel. Emissions from denatured fuel ethanol must be calculated as 100 percent ethanol only. The volume of denaturant is assumed to be zero and is not required to be reported. Emission factors must be taken from column C of 40 CFR 98 Table MM-1 or MM-2 as specified in Calculation Method 1 of 40 CFR § 98.393(f)(1), except that the emission factor for renewable diesel is equivalent to the emission factor for Distillate No. 2. If a position holder in diesel or biodiesel fuel does not have sealed or financial transaction meters at the rack, and the position holder is the sole position holder at the terminal, the position holder must calculate emissions based on the delivering entity's invoiced volume of fuel or a meter that meets the requirements of section 95103(k) either at the rack or at a point prior to the fuel going into the terminal storage tanks.
(2) Refiners that produce liquefied petroleum gas must use Equation MM-1 as specified in 40 CFR § 98.393(a)(1) to estimate the CO2 emissions that would result from the complete combustion of the fuel supplied. For calculating the emissions from liquefied petroleum gas, the emissions from the individual components must be summed. Emission factors must be taken from column C of 40 CFR Part 98 Table MM-1 as specified in Calculation Method 1 of 40 CFR § 98.393(f)(1).
(3) Refiners, position holders at California terminals, and enterers identified in this section must estimate and report CH4 and N2O emissions using Equation C-8 and Table C-2 as described in 40 CFR § 98.33(c)(1), except that the emission factors in Table 2-4 of this section will be used for each fuel required to be reported in section 95121(a)(2) above.

Table 2-4. Transportation Fuel CH4 and N2O emission factors

FuelCH4 (g/bbl)N2O (g/bbl)
Blendstock2020
Distillate21
Ethanol3727
Biodiesel and Renewable Diesel21

(4) All fuel suppliers in this section must estimate CO2e emissions using the following equation:

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Where:

CO2e = Carbon dioxide equivalent, metric tons/year.

GHGi = Mass emissions of CO2, CH4, N2O from fuels combusted or oxidized.

GWPi = Global warming potential for each greenhouse gas as specified in the "global warming potential" definition of this article.

n = Number of greenhouse gases emitted.

(c)Monitoring and QA/QC Requirements. For the emissions calculation method chosen under section 95121(b), the operator must meet all the monitoring and QA/QC requirements as specified in 40 CFR § 98.394, and the requirements of 40 CFR § 98.3(i) as further specified in section 95103 of this article and below.
(1) Position holders are exempt from 40 CFR § 98.3(i) calibration requirements except when the position holder and entity receiving the fuel have common ownership or are owned by subsidiaries or affiliates of the same company. In such cases the 40 CFR § 98.3(i) calibration requirements apply, unless:
(A) The fuel supplier does not operate the fuel billing meter;
(B) The fuel billing meter is also used by companies that do not share common ownership with the fuel supplier; or
(C) The fuel billing meter is sealed with a valid seal from the county sealer of weights and measures and the operator has no reason to suspect inaccuracies.
(2) As required by 40 CFR § 98.394(a)(1)(iii), for fuels that are liquid at 60 degrees Fahrenheit and one standard atmosphere, the volume reported must be temperature- and pressure-adjusted to these conditions. For liquefied petroleum gas the volume reported must be temperature-adjusted to 60 degrees Fahrenheit.
(d)Data Reporting Requirements. In addition to reporting the information required in 40 CFR § 98.3(c), the following entities must also report the information identified below:
(1) California position holders must report the annual quantity in barrels, as reported by the terminal operator, of each Blendstock, Distillate Fuel Oil, or biomass-derived fuel listed in Table 2-5 of this section, that is delivered across the rack in California, except for fuel for which a final destination outside California, where use in exclusively aviation or marine applications can be demonstrated, or for fossil transportation fuels that can be demonstrated to have been previously delivered by a position holder or refiner out of an upstream California terminal or refinery rack prior to delivery out of a second terminal rack. Denatured fuel ethanol will be reported with the entire volume as 100 percent ethanol only. The volume of denaturant is assumed to be zero and is not required to be reported.
(2) California position holders that are also terminal operators and refiners must report the annual quantity in barrels delivered across the rack of each Blendstock, Distillate Fuel Oil, or biomass-derived fuel listed in Table 2-4 of this section, except for fuel for which a final destination outside California, where a use in exclusively aviation or marine applications can be demonstrated, or for fossil transportation fuels that can be demonstrated to have been previously delivered by a position holder or refiner out of an upstream California terminal or refinery rack prior to delivery out of a second terminal rack. Denatured fuel ethanol will be reported with the entire volume as 100 percent ethanol only. The volume of denaturant is assumed to be zero and is not required to be reported. If there is only a single position holder at the terminal, and only diesel or biodiesel is being dispensed at the rack then the position holder must report the annual quantity of fuel using a meter meeting the requirements of section 95103(k) or billing invoices from the entity delivering fuel to the terminal.
(3) Refiners that supply fuel within the bulk transfer system to entities not licensed by the California Board of Equalization as a fuel supplier must report the annual quantity in barrels delivered of each Blendstock, Distillate Fuel Oil, or biomass-derived fuel listed in Table 2-5 of this section, except for fuel for which a final destination outside California or where a use in exclusively aviation or marine applications can be demonstrated. Denatured fuel ethanol will be reported with the entire volume as 100 percent ethanol only. The volume of denaturant is assumed to be zero and is not required to be reported.
(4) Enterers delivering fossil transportation fuels for distribution outside the bulk transfer/terminal system must report the annual quantity in barrels, as reported on the bill of lading or other shipping documents of each Blendstock, Distillate Fuel Oil, or biomass-derived fuel listed in Table 2-5 of this section that is imported as a blended component of a finished transportation fuel, except for fuel for which a final destination outside California or where a use in exclusively aviation or marine applications can be demonstrated. The denatured fuel ethanol component of a finished transportation fuel must be reported with the entire denatured ethanol volume as 100 percent ethanol only. The volume of denaturant is assumed to be zero and is not required to be reported. Biodiesel or renewable diesel blends containing no more than one percent petroleum diesel by volume are considered to be 100 percent biodiesel or renewable diesel. Biomass-derived fuels are not reported by enterers unless they are a blended component of an imported finished transportation fuel.
(5) In addition to the information required in 40 CFR § 98.396, refiners must also report the volume of liquefied petroleum gas in barrels supplied in California as well as the volumes of the individual components as listed in 40 CFR 98 Table MM-1, except for fuel for which a final destination outside California can be demonstrated.
(6) All fuel suppliers identified in this section must also report CO2, CO2 from biomass-derived fuels, CH4, N2O and CO2e emissions in metric tons that would result from the complete combustion or oxidation of each petroleum fuel identified in 95121(a)(2), liquefied petroleum gas, or biomass-derived fuel reported in this section, calculated according to section 95121(b).
(7) All fuel suppliers identified in this section, except for refiners that report pursuant to section 95113(m), must report the total quantity of CARBOB, California Gasoline, California diesel fuel, and biodiesel and/or renewable diesel that was imported from outside of California for use in California. In addition, for CARBOB imports, the designated percentage of oxygenate must be reported.
(8) Fuel suppliers identified in this section, except for refiners that report pursuant to section 95113(m), must report the total quantity of biodiesel and/or renewable diesel blended in California diesel for use in California.
(9) Fuel suppliers identified in this section must report the total quantity in barrels of each Blendstock, Distillate Fuel Oil, or biomass-derived fuel listed in Table 2-4 of this section that is excluded from emissions reporting due to demonstration of final destination outside California or use in exclusively aviation or marine applications, or demonstration that the fuel was previously delivered by a position holder or refiner out of an upstream California terminal or refinery rack prior to delivery out of a second terminal rack.
(e)Procedures for Missing Data. For quantities of fuels that are purchased, sold, or transferred in any manner, fuel suppliers must follow the missing data procedures specified in 40 CFR § 98.395. The supplier must document and retain records of the procedure used for all missing data estimates pursuant to the recordkeeping requirements of section 95105.

Table 2-5 Blendstocks, Distillate Fuel Oils, and Biomass-Derived Fuels Subject to Reporting under section 95121

CBOB--Summer

Regular

Midgrade

Premium

CBOB--Winter

Regular

Midgrade

Premium

RBOB (CARBOB)--Summer

Regular

Midgrade

Premium

RBOB (CARBOB)--Winter

Regular

Midgrade

Premium

Distillate Fuel Oils

Distillate No. 1

Distillate No. 2

Liquefied Petroleum Gas (LPG)

Ethane

Ethylene

Propane

Propylene

Butane

Butylene

Isobutane

Isobutylene

Pentanes Plus

Biomass-Derived Fuel

Ethanol (100%)

Biodiesel (>=99%, methyl ester)

Renewable Diesel (>=99%)

Rendered Animal Fat

Vegetable Oil

Cal. Code Regs. Tit. 17, § 95121

1. New section filed 12-14-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Amendment of subsections (a)(2), (b)(1), (d)(1)-(5) and (e) filed 12-19-2012; operative 1-1-2013 pursuant to Government Code section 11343.4 (Register 2012, No. 51).
3. Amendment of subsection (a)(2) filed 12-31-2013; operative 1-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 1).
4. Amendment of first paragraph and subsections (a)(2), (b)(1) and (b)(3), Table 1 and subsection (d)(4), new subsections (d)(7)-(8) and amendment of Table 2 filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
5. Amendment of first paragraph and subsections (a)(2), (b)(1), (b)(3), including renumbering of former table 1 as table 2-4, (b)(4) and (d)(1)-(4), new subsection (d)(9) and amendment of subsection (e) renumbering former table 2 to table 2-5 filed 9-1-2017; operative 1-1-2018 (Register 2017, No. 35).

Note: Authority cited: Sections 38510, 38530, 39600, 39601, 39607, 39607.4 and 41511, Health and Safety Code. Reference: Sections 38530, 39600 and 41511, Health and Safety Code.

1. New section filed 12-14-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Amendment of subsections (a)(2), (b)(1), (d)(1)-(5) and (e) filed 12-19-2012; operative 1-1-2013 pursuant to Government Code section 11343.4 (Register 2012, No. 51).
3. Amendment of subsection (a)(2) filed 12-31-2013; operative 1-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 1).
4. Amendment of first paragraph and subsections (a)(2), (b)(1) and (b)(3), Table 1 and subsection (d)(4), new subsections (d)(7)-(8) and amendment of Table 2 filed 12-31-2014; operative 1/1/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
5. Amendment of first paragraph and subsections (a)(2), (b)(1), (b)(3), including renumbering of former table 1 as table 2-4, (b)(4) and (d)(1)-(4), new subsection (d)(9) and amendment of subsection (e) renumbering former table 2 to table 2-5 filed 9-1-2017; operative 1/1/2018 (Register 2017, No. 35).