Section R20-2-718. Requirements for Production, Transport, Distri- bution, and Sale of Biofuels

A.      General requirements for producers and suppliers of biofuel or biofuel blends in Arizona.

1.        Registration requirement.

a.         A producer, supplier, or person required to register with the EPA under 40 CFR 80, Subpart K or M, shall register with the Director, using a form pre- scribed by the Director, before producing or supply- ing biofuel or biofuel blend in Arizona.

b.        A person required to register under subsection (A)(1)(a) shall notify the Director within 10 days after the effective date of a change in any of the information provided under subsection (A)(1)(a).

c.         Consequences of failing to register under subsection (A)(1)(a).

i.         If a producer fails to register, the Department shall presume that all biofuel or biofuel blend produced is noncompliant with the require- ments of this Chapter from the date that regis- tration should have occurred; and

ii.        If a supplier or person required to register with the EPA fails to register, the Director shall take action as allowed under A.R.S. § 41-2115 and R20-2-762.

d.        The Department shall maintain and make available to the public a list of all persons registered under this Section.

2.        Reporting requirement.

a.         A person required to register under subsection (A)(1)(a) shall report to the Department by the 15th of the month after producing or supplying biofuel or biofuel blend. The person shall:

i.         Report on a form prescribed by the Director;

ii.        Provide the information specified in subsec- tions (B) and (C), as applicable;

iii.      Attest to the truthfulness and accuracy of the information submitted;

iv.       Consent to the Department or its authorized agent collecting samples and accessing records as provided in this Article; and

v.        Ensure that the report form is signed by a cor- porate officer responsible for operations at the facility at or from which the biofuel or biofuel blend was produced or supplied.

b.        The Department shall classify the information sub- mitted under subsection (A)(2)(a) as  confidential and protected under A.R.S. § 44-1374 if the person that submits the information expressly designates the information as confidential.

3.        Quality Assurance and Quality Control (QA/QC) pro- gram requirement.

a.         A person required to register under subsection (A)(1)(a) shall develop a QA/QC program to ensure the quality of a biofuel or biofuel blend produced in or supplied in or into Arizona.

b.        A person required to develop a QA/QC program under subsection (A)(3)(a) shall summarize the QA/ QC program in a manual and submit the manual to the Director for approval at least three months before the person plans to produce or supply a bio- fuel or biofuel blend. The person shall ensure that the manual:

i.         Documents the manner in which the QA/QC program ensures that a biofuel or biofuel blend produced or supplied conforms to applicable ASTM specifications, is appropriately blended, and meets all customer-specific requirements;

ii.        Contains a policy and objectives that expressly commit the producer or supplier to ensure the quality of the biofuel or biofuel blend produced or supplied;

iii.      Contains procedures that will be used to deter- mine and document that operational quality requirements are met; and

iv.       Contains a provision for making, maintaining, and controlling documents and records regard- ing the QA/QC program.

c.         A person that submits a manual under subsection (A)(3)(b) shall not produce or supply a biofuel or

biofuel blend until the manual is approved by the Director.

d.        The Director shall approve a manual submitted under subsection (A)(3)(b) only if the Director determines that the QA/QC program sufficiently ensures the quality of a biofuel or biofuel blend pro- duced or supplied.

B.       Specific requirements for producers or suppliers of E85.

1.        The owner or operator of a motor fuel dispensing site at which E85 is dispensed shall ensure that:

a.         Both the motor fuel dispenser and nozzle from which E85 is dispensed have labels affixed that:

i.         Indicate E85 is not gasoline,

ii.        Indicate E85 is intended for use only in a flexi- ble-fuel vehicle, and

iii.      State “Check your owner’s manual to ensure that this fuel can be used in your vehicle,” and

b.        Any motor fuel dispenser from which E85 is dis- pensed is compatible with E85 and meets the requirements of this Chapter and A.R.S. § 41-2083.

2.        Additional requirement for producing E85 for sale in the CBG-covered area. A producer of E85 for sale in the CBG-covered area shall:

a.         Use Arizona CBG or AZRBOB and pressurant as needed to meet the hydrocarbon requirement of ASTM D5798; and

b.        Ensure that the fuel ethanol used meets the standards in this Chapter.

3.        Reporting requirement for a producer of E85. A producer of E85 intended as a final product for the fueling of motor vehicles shall submit the report required under subsection (A)(2) and ensure that the report includes the following information regarding the E85 produced:

a.         The amount of fuel ethanol used to produce E85 in the previous month,

b.        The amount of gasoline used to produce E85 in the previous month,

c.         The total amount of E85 produced during the previ- ous month,

d.        The following fuel quality properties for the finished E85:

i.         Appearance,

ii.        American Petroleum Institute gravity,

iii.      Organic chloride,

iv.       Water content,

v.        Vapor pressure, and

vi.       Sulfur content.

4.        Reporting requirement for a supplier of E85. A supplier of E85 intended as a final product for the fueling of motor vehicles shall submit the report required under subsection (A)(2) and ensure that the report includes the following:

a.         The amount of E85 sold during the previous month; and

b.        A certification by the supplier of E85 that the E85 sold, offered for sale, or dispensed was received from or traceable to a person registered with the Department under subsection (A)(1).

5.        Quality Assurance and Quality Control (QA/QC) pro- gram for a producer of E85. A producer of E85 shall comply with the QA/QC requirements specified in sub- section (A)(3). Additionally, the producer shall ensure that the manual submitted to the Director under subsec- tion (A)(3)(b) contains a description of a QA/QC sam- pling and testing protocol to be implemented at each facility within the person’s operation at which E85 is pro-

duced. The producer shall ensure that the sampling and testing protocol meets the following minimum standards:

a.         All samples of E85 are collected after any applicable blend component is added,

b.        All samples of E85 are collected using approved ASTM methods,

c.         Sampling is done at one of the following rates:

i.         If E85 is produced in a single storage tank by batch, a rate of at least one sample per tank. For the purpose of this subsection, a storage tank is a stationary tank and does not include a trans- port trailer;

ii.        If E85 is blended or transferred into a delivery truck through the use of computer-controlled in-line blending equipment, a rate of at least one sample for every 500 times E85 is blended or transferred or one sample per week, which- ever is more frequent;

iii.      If E85 is blended or transferred into a delivery truck without the use of computer-controlled in-line blending equipment, a rate of at least one sample every 250 times E85 is blended or transferred or two samples per week, which- ever is more frequent;

d.        All testing of E85 is conducted using the appropriate ASTM test method outlined in ASTM D5798,

e.         Test results are used to certify the quality of the E85 produced,

f.         Sample handling and storage procedures are speci- fied, and

g.        Sample retention time-frames are specified.

6.        Non-compliant E85. If test results for E85 shipped from a facility indicate that the E85 does not comply with the requirements of this Chapter, the producer of the E85 shall immediately:

a.         Notify the Director of the test results,

b.        Take all reasonable steps to stop the sale of the non- compliant E85, and

c.         Take steps reasonably calculated to determine the cause of the noncompliance and to prevent future occurrences of noncompliance.

C.      Specific requirements for producers or suppliers of biodiesel and biodiesel blends.

1.        A person shall not sell or offer or expose for sale:

a.         Neat biodiesel unless the neat biodiesel meets all specifications established by ASTM D6751,

b.        Diesel fuel containing up to five percent by volume biodiesel unless the diesel fuel meets all specifica- tions established by ASTM D975, and

c.         A blend containing six percent through 20 percent biodiesel and diesel fuel unless the blend meets all specifications established by ASTM D7467.

2.        The owner or operator of a motor fuel dispensing site shall ensure that:

a.         Any motor fuel dispenser from which a biodiesel or biodiesel blend is dispensed:

i.         Meets the labeling requirements established by

A.R.S. § 41-2083(L),

ii.        Is compatible with biodiesel or biodiesel blend, and

iii.      Meets  all  requirements   in  this  Chapter  and

A.R.S. § 41-2083; and

b.        Any biodiesel or biodiesel blend sold, offered for sale, or dispensed was received from or traceable to a person registered with the Department under sub- section (A)(1).

3.        Additional requirement for producing biodiesel or bio- diesel blend for sale in the CBG-covered area. A pro- ducer of biodiesel or biodiesel blend for sale in the CBG- covered area shall ensure that the diesel fuel used con- tains no more than 15 ppm of sulfur.

4.        Reporting requirement for a producer of a biodiesel or biodiesel blend. A producer of a biodiesel or biodiesel blend intended as a final product for the fueling of motor vehicles shall submit the report required under subsection (A)(2) and ensure that the report includes the following information regarding the biodiesel or biodiesel blend produced:

a.         The total amount of biodiesel or biodiesel blend pro- duced in the previous month;

b.        The amount of biodiesel used to produce a biodiesel blend in the previous month;

c.         The following fuel quality properties, established by ASTM D6751, for the finished biodiesel:

i.         Flash point;

ii.        Water sediment;

iii.      Sulfur content,

iv.       Cold soak filterability;

v.        Cloud point;

vi.       Acid number;

vii.     Free glycerin;

viii.    Total glycerin; and

ix.       Distillation, 90 percent; and

d.        The following fuel quality properties, established by ASTM D7467, for the finished biodiesel blend that contains six percent through 20 percent biodiesel:

i.         Sulfur content,

ii.        Aromatic hydrocarbon content,

iii.      Cetane index,

iv.       Acid number,

v.        Distillation, and

vi.       American Petroleum Institute gravity.

5.        Reporting requirement for a supplier of a biodiesel or bio- diesel blend. A supplier of a biodiesel or biodiesel blend intended as a final product for the fueling of motor vehi- cles shall submit the report required under subsection (A)(2) and ensure that the report includes the following:

a.         The amount of biodiesel or biodiesel blend sold during the previous month; and

b.        A certification by the supplier of biodiesel or bio- diesel blend that the biodiesel or biodiesel blend sold, offered for sale, or dispensed was received from or traceable to a person registered with the Department under subsection (A)(1).

6.        Quality Assurance and Quality Control (QA/QC) pro- gram for a producer of biodiesel or a biodiesel blend. Except as specified in subsection (C)(7), a producer of biodiesel or a biodiesel blend shall comply with the QA/ QC requirements specified in subsection (A)(3). Addi- tionally, the producer shall ensure that the manual sub- mitted to the Director under subsection (A)(3)(b) contains a description of a QA/QC sampling and testing protocol to be implemented at each facility within the person’s operation at which biodiesel or a biodiesel blend is pro- duced. The producer shall ensure that the sampling and testing protocol meets the following minimum standards:

a.         All samples of biodiesel or biodiesel blend are col- lected after any applicable blend component is added;

b.        All samples of biodiesel or biodiesel blend are col- lected using approved ASTM methods;

c.         Sampling is done at one of the following rates:

i.         If biodiesel or a biodiesel blend is produced in a single storage tank by batch, a rate of at least one sample per tank. For the purpose of this subsection, a storage tank is a stationary tank and does not include a transport trailer;

ii.        If biodiesel or a biodiesel blend is blended or transferred into a delivery truck through the use of computer-controlled in-line blending equip- ment, a rate of at least one sample for every 20 times biodiesel or biodiesel blend is blended or transferred or one  sample every  two weeks, whichever is more frequent;

iii.      If biodiesel or a biodiesel blend is blended or transferred into a delivery truck without the use of computer-controlled in-line blending equip- ment, a rate of at least one sample every 10 times biodiesel or biodiesel blend is blended or transferred or one sample per week, whichever is more frequent;

d.        All testing of biodiesel or biodiesel blend is con- ducted using the appropriate ASTM test method out- lined in ASTM D6751, D975, or D7467;

e.         Test results are used to certify the quality of the bio- diesel or biodiesel blend produced;

f.         Sample handling and storage procedures are speci- fied; and

g.        Sample retention time-frames are specified.

7.        A producer of biodiesel or a biodiesel blend that is accredited under the BQ9000 program shall, at least three months before planning to produce or supply a biodiesel or biodiesel blend, submit to the Director the quality manual developed and implemented under the BQ9000 program instead of the QA/QC manual required under subsection (C)(6). A producer of biodiesel or a biodiesel blend that is BQ9000 accredited shall not produce or sup- ply a biodiesel or biodiesel blend until the quality manual developed under the BQ9000 program is approved by the Director. A producer of biodiesel or a biodiesel blend that is BQ9000 accredited shall, upon request, provide the Director with access to records relating to the accredita- tion and documentation relating to the precision and accuracy of any alternative test method used to meet the requirements of this Section. The Director has authority under A.R.S. §§ 41-2065(A)(4) and 41-2083(N) to audit the quality manual submitted under this subsection.

8.        Non-compliant biodiesel or biodiesel blend. If test results for biodiesel or a biodiesel blend shipped from a facility indicate that the biodiesel or biodiesel blend does not comply with the requirements of this Chapter, the pro- ducer of the biodiesel or biodiesel blend shall immedi- ately:

a.         Notify the Director of the test results,

b.        Take all reasonable steps to stop the sale of the non- compliant biodiesel or biodiesel blend, and

c.         Take steps reasonably calculated to determine the cause of the noncompliance and to prevent future occurrences of noncompliance.

D.      Specific requirements for producers or suppliers of petroleum- based renewable diesel. A producer or supplier of petroleum- based renewable diesel that is intended as a final product for the fueling of motor vehicles shall ensure that the petroleum- based renewable diesel:

1.        Meets the standards in ASTM D975, and

2.        Is identified as specified in R20-2-701.

Historical Note

Former Section R4-31-205(B) renumbered without

change as R4-31-718 (Supp. 89-1). Amended as R4-31- 205(B) and incorporated into R4-31-728 effective Sep- tember 29, 1989 (Supp. 89-3). Amended effective Febru-

ary 21, 1990 (Supp. 90-1). Subsections (3) through (10) corrected (Supp. 91-3). Amended by emergency action effective September 20, 1991, pursuant to A.R.S. § 41-

1026, valid for only 90 days (Supp. 91-3). Emergency amendments adopted again without change effective December 20, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-4). Emergency amendments adopted again without change effective March 20, 1992, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 92-1). Emergency expired. Amended with changes effective August 17, 1992 (Supp. 92-3). R20-2- 718 recodified from R4-31-718 (Supp. 95-1). Section R20-2-718 renumbered to R20-2-714 by final rulemaking at 5 A.A.R. 4312, effective October 18, 1999 (Supp. 99- 4). New Section made by final rulemaking at 12 A.A.R.

3722, effective September 12, 2006 (Supp. 06-3).

Amended by final rulemaking at 17 A.A.R. 190, effective March 12, 2011 (Supp. 11-1). Amended by final rulemak-

ing at 19 A.A.R. 3325, effective November 30, 2013

(Supp. 13-4).