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 Arizona Administrative Code (Last Updated: November 17, 2016)
 Title 20. COMMERCE, FINANCIAL INSTITUTIONS, AND INSURANCE
 Chapter 2. DEPARTMENT OF WEIGHTS AND MEASURES
 Article 7. MOTOR FUELS AND PETROLEUM PRODUCTS

  Section R20-2-751. Arizona CBG Requirements  

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  • A.      General fuel property and performance requirements. In addi- tion to the other requirements of this Article and except as pro- vided in subsection (B), all Arizona CBG shall meet the following requirements and for any fuel property not speci- fied, shall meet the requirements in ASTM D4814. The dates in this subsection are compliance dates for the owner or opera- tor of a motor fuel dispensing site or a fleet vehicle fueling facility.

    1.        Sulfur: 500 ppm by weight (max).

    2.        Aromatics: 50 percent by volume (max).

    3.        Olefins: 25 percent by volume (max).

    4.        E200: 70-30 percent volume.

    5.        E300: 100-70 percent volume.

    6.        Maximum vapor pressure:

    a.         October: 9.0 psi.

    b.        November 1 - March 31: 9.0 psi.

    c.         April: 10.0 psi.

    d.        May: 9.0 psi.

    e.         June 1 - September 30: 7.0 psi.

    f.         A gasoline ethanol blend in the CBG-covered area is subject to the 1 psi vapor pressure waiver, as described in R20-2-708(B), during April only.

    7.        Oxygen and oxygenates:

    a.         Minimum content:

    i.         November 1 - March 31: 10 percent fuel etha- nol by volume. If A.R.S. § 41-2124(E) petition in effect: 2.7 percent oxygen by weight as approved by the Director.

    ii.        April 1 - October 31: 0 percent by weight (any oxygenate).

    ensure that the fuel ethanol meets the requirements in ASTM D4806 and the following:

    1.        A sulfur content not exceeding 10 ppm by weight,

    2.        An olefins content not exceeding 0.5 percent by volume, and

    3.        An aromatic hydrocarbon content not exceeding 1.7 per- cent by volume.

    D.      General elections. Except as provided in subsection (E), a reg- istered supplier shall make an initial election, and a subsequent election each time a change occurs, before beginning to trans- port Arizona CBG or AZRBOB. A registered supplier shall make the election with the Director on a form or in a format prescribed by the Director. The election shall state:

    1.        Whether the registered supplier (at each point where the Arizona CBG or AZRBOB is certified) will supply Ari- zona CBG or AZRBOB that complies with Type 1 Ari- zona CBG, Type 2 Arizona CBG, or the PM alternative gasoline formulation requirements and, if the registered supplier will supply Arizona CBG or AZRBOB that com- plies with the PM alternative gasoline formulation requirements, whether the registered supplier will certify using the CARB Phase 2 model; and

    2.        For each applicable fuel property or performance stan- dard in the election under subsection (D)(1), whether the Arizona CBG or AZRBOB will comply with the average standards or per-gallon standards. A registered supplier shall not elect to comply with average standards unless the registered supplier is in compliance with R20-2-760. A registered supplier shall not elect to comply with Type 1 Arizona CBG average standards in Table 1, columns B and C, from September 16 through October 31 and Feb-

     

    b.    The maximum oxygen content shall not exceed 4.0

    percent by weight for fuel ethanol and as specified in

    A.R.S. § 41-2122 for other oxygenates, and shall comply with the requirements of A.R.S. § 41-2123.

    c. Arizona CBG shall not contain more than 0.3 vol- ume percent MTBE nor more than 0.1 weight per- cent oxygen from all other ethers or alcohols listed in A.R.S. § 41-2122.

    8.           Type 1 Arizona CBG shall meet the Federal Complex Model  VOC  emissions   reduction  percentage  May  1

    E.

    ruary 1 through April 30.

    Winter elections. Beginning November 1 through March 31 of each year, a registered supplier shall ensure that all Arizona CBG or AZRBOB complies with Type 2 Arizona CBG requirements or the PM alternative gasoline formulation requirements under Table 2. A registered supplier shall make an initial election, and a subsequent election each time a change occurs, before beginning to transport Arizona CBG or AZRBOB. A registered supplier shall make the election with the Director on a form or in a format prescribed by the Direc-

    through September 15: ³ 27.5 percent (Federal Complex

     

    tor. The election shall state:

    Model settings: Summer, Area Class B, Phase 2). Type 2

     

    1.     Whether the registered supplier (at each point where the

    Arizona CBG shall meet CARB Phase 2 requirements.

     

    Arizona CBG or AZRBOB is certified) will supply Ari-

    B.

    Wintertime requirements. In addition to the other requirements

     

    zona CBG or AZRBOB that complies with the Type 2

     

    of this Article, the owner or operator of a motor fuel dispens-

     

    Arizona CBG or the PM alternative gasoline formulation

     

    ing site or a fleet vehicle fueling facility shall ensure that

     

    requirements; and

     

    beginning November 1 through March 31 of each year, all Ari-

     

    2.     For each applicable fuel property, whether the Arizona

     

    zona CBG meets the following fuel property requirements.

     

    CBG or AZRBOB will comply with the average stan-

     

    1.     Sulfur: 80 ppm by weight (max),

     

    dards or per-gallon standards.

     

    2.     Aromatics: 30% by volume (max),

    F.

    A registered supplier may elect and produce Type 1 Arizona

     

    3.     Olefins: 10% by volume (max),

     

    CBG from December 1 through March 31 but the registered

     

    4.     90% Distillation Temp. (T90): 330° F (max),

     

    supplier shall not distribute the Arizona CBG to a motor fuel

     

    5.     50% Distillation Temp. (T50): 220° F (max),

     

    dispensing site within the CBG-covered area before April 1.

     

    6.     Vapor Pressure: 9.0 psi (max), and

    G.

    Certification as Type 1 Arizona CBG or Type 2 Arizona CBG.

     

    7.     Oxygenate - Ethanol;

     

    A registered supplier shall certify Arizona CBG or AZRBOB

     

    a.      Minimum oxygenate content - 10 percent fuel etha-

     

    under R20-2-752 as meeting all requirements of the election

     

    nol by volume;

     

    made in subsection (D) or (E). For each fuel property, Type 1

     

    b.     Maximum oxygen content - 4.0 percent oxygen by

     

    Arizona CBG shall comply with the requirements in either col-

     

    weight, and shall comply with the requirements of

     

    umn A or columns B through D of Table 1, and shall be certi-

     

    A.R.S. § 41-2123; and

     

    fied using the Federal Complex Model, which is incorporated

     

    c.      Alternative minimum fuel ethanol content may be

     

    by reference in R20-2-702. For each fuel property, Type 2 Ari-

     

    used if approved by the Director under A.R.S. § 41-

     

    zona CBG shall comply with the requirements of columns A

     

    2124(D).

     

    and B (averaging option), or column C in Table 2. The PM

    C.

    Fuel ethanol specifications. A person that uses fuel ethanol as

     

    alternative gasoline formulation shall meet the requirements of

     

    a blending component with AZRBOB or Arizona CBG shall

     

    subsections (H), (I), and (J), and column A of Table 2. A regis-

    tered supplier may certify Arizona CBG or AZRBOB using an equivalent test method that the Department approves using the criteria stated in R20-2-759.

    H.       Certification and use of Predictive Model for alternative PM gasoline formulations.

    1.        Except as provided in subsections (H)(4) and (J), a regis- tered supplier shall use the PM as provided in the Predic- tive Model Procedures.

    2.        A registered supplier shall certify a PM alternative gaso- line formulation with the Director by either:

    a.         Submitting to the Director a complete copy of the documentation provided to the executive officer of CARB according to 13 California Code of Regula- tions, Section 2264 and subsection (J); or

    b.        Notifying the Director, on a form prescribed by or in a format acceptable to the Director, of:

    i.         The PM alternative specifications that apply to the final blend, including for each specification whether it is a PM flat limit or a PM averaging limit; and

    ii.        The numerical values for percent change in emissions for oxides of nitrogen and hydrocar- bons determined in accordance with the Predic- tive Model Procedures.

    3.        A registered supplier shall deliver the certification required under subsection (H)(2) to the Director before transporting the PM alternative gasoline formulation.

    4.        Restrictions for elections to sell or supply final blends as PM alternative gasoline formulations.

    a.         A registered supplier shall not make a new election to sell or supply from its production or import facil- ity a final blend of Arizona CBG as a PM alternative gasoline formulation if the registered supplier has an outstanding requirement under subsection (K) to provide offsets for fuel properties at the same pro- duction or import facility.

    b.        If a registered supplier elects to sell or supply from its production or import facility a final blend of Ari- zona CBG as a PM alternative gasoline formulation subject to a PM averaging compliance option for one or more fuel properties, the registered supplier shall not elect any  other compliance option, including another PM alternative gasoline formulation, if an outstanding requirement to provide offsets for fuel properties exists under the provisions of subsection (K). This subsection does not preclude a registered supplier from electing another PM alternative gaso- line formulation if:

    i.         The PM flat limit for one or more fuel proper- ties is changed to a PM averaging limit, or a single PM averaging limit for which there is no outstanding requirement to provide offsets is changed to a PM flat limit;

    ii.        There are no changes to  the PM alternative specifications for remaining fuel properties; and

    iii.      The new PM alternative formulation meets the criteria in the Predictive Model Procedures.

    c.         If a registered supplier elects to sell or supply from the registered supplier’s production or import facil- ity a final blend of Arizona CBG as a PM alternative gasoline formulation, the registered supplier shall not use a previously assigned designated alternative limit for a fuel property to provide offsets under sub- section (K).

    d.        If a registered supplier notifies the Director under subsection (D) or (E) that a final blend of Arizona CBG is sold or supplied from a production or import facility as a PM alternative gasoline formulation, all final blends of Arizona CBG or AZRBOB subse- quently sold or supplied from that production or import facility are subject to the same PM alterna- tive specifications until the registered supplier either:

    i.         Designates a final blend at that facility as a PM alternative gasoline formulation subject to dif- ferent PM alternative specifications; or

    ii.        Elects, under subsection (D) or (E), a final blend at that facility subject to a flat limit com- pliance option or an averaging compliance option.

    I.         Prohibited activities regarding PM alternative gasoline formu- lations. A registered supplier shall not sell, offer for sale, sup- ply, or offer to supply from the registered supplier’s production or import facility Arizona CBG that is reported as a PM alternative gasoline formulation under R20-2-752 if any of the following occur:

    1.        The elected PM alternative specifications do not meet the criteria for approval in the Predictive Model Procedures,

    2.        The registered supplier is prohibited by subsection (H)(4)(a) from electing to sell or supply the gasoline as a PM alternative gasoline formulation,

    3.        The gasoline fails to conform with any PM flat limit in the PM alternative specifications election, or

    4.        With respect to any fuel property for which the registered supplier elects a PM averaging limit:

    a.         The gasoline exceeds the applicable PM average limit in Table 2, column B, and no designated alter- native limit for the fuel property is established for the gasoline in accordance with subsection (H)(2); or

    b.        A designated alternative limit for the fuel property is established for the gasoline in accordance with sub- section (H)(2), and either the gasoline exceeds the designated alternative limit for the fuel property or the designated alternative limit for the fuel property exceeds the PM averaging limit and the exceedance is not fully offset in accordance with subsection (K).

    J.        Oxygen content requirements for PM alternative gasoline for- mulations. A registered supplier shall ensure that from November 1 through March 31, all alternative PM gasoline formulations comply with oxygen content requirements for the CBG-covered area. Regardless of the oxygen content, a regis- tered supplier shall certify the final alternative PM gasoline formulation using the PM with a minimum oxygen content of

    2.0 percent by weight. A registered supplier may use the CAR- BOB Model as a substitute for the preparation of a fuel ethanol hand blend and use the fuel qualities calculated under the CARBOB Model for compliance and reporting purposes.

    K.       Offsetting fuel properties and performance standards. A regis- tered supplier that elects to comply with the averaging stan- dards for any of the fuel properties or performance standards contained in Tables 1 and 2, or the PM, shall, from a single production or import facility, complete physical transfer of certified Arizona CBG or AZRBOB in sufficient quantity to offset the amount by which the Arizona CBG or AZRBOB exceeds the averaging standard according to the following schedule:

    1.        A registered supplier that elects to comply with the aver- aging standards contained in Table 2 or the PM shall off- set each exceeded average standard within 90 days before

    or after beginning to transport any final blend of Arizona CBG or AZRBOB from the production or import facility;

    2.        A registered supplier that elects to comply with the aver- aging standard for the VOC Emission Reduction Percent- age in Table 1, column B, shall offset an exceedance of the standard that occurs from May 1 to September 15 during that same period; and

    3.        A registered supplier that elects to comply with the aver- aging standard for the NOx Emission Reduction Percent- age contained in Table 1, column B, shall offset an exceedance of the standard that occurs from May 1 to September 15 during that same period.

    L.       Consequence of failure to comply with averages.

    1.        In addition to a penalty under R20-2-762, if any, a regis- tered supplier that fails to comply with a requirement of subsection (K) shall meet the applicable per-gallon stan- dards contained in Table 1, Table 2, or an alternative PM gasoline formulation, for a probationary period as fol- lows:

    a.         For a registered supplier that elects to comply with the standards contained in Table 1, the probationary period begins on the first day of the next averaging season and ends on the last day of that averaging season if the conditions of subsection (L)(2) are met;

    b.        For a registered supplier that elects to comply with the standards contained in Table 2 or the PM, the probationary period begins no later than 90 days after the registered supplier determines, or receives a notice from the Director, that the registered supplier did not comply with the requirements of subsection (K). Before the probationary period begins, the reg- istered supplier shall notify the Director in writing of the beginning date of the probationary period. The probationary period ends 90 days after its beginning date.

    2.        A registered supplier shall not produce or import Arizona CBG or AZRBOB under an averaging compliance elec- tion until:

    a.         The registered supplier submits a compliance plan to the Director that includes:

    i.         An implementation schedule for actions to cor- rect noncompliance, and

    ii.        Reporting requirements that document imple- mentation of the compliance plan,

    b.        The Director approves the plan,

    c.         The registered supplier implements the plan, and

    d.        The registered supplier achieves compliance.

    3.        If a registered supplier fails to comply with the require- ments of subsection (K) within one year of the end of a probationary period under subsection (L)(1), the regis- tered supplier shall comply with applicable per-gallon standards for a subsequent probationary period of two years, or until the conditions in subsection (L)(2) are sat- isfied, whichever is later.

    a.         If a registered supplier elects to comply with the Table 1 standards, the probationary period begins on the first day of the next averaging season.

    b.        If a registered supplier elects to comply with the Table 2 standards or the PM, the probationary period begins no later than 90 days after the registered sup- plier determines, or receives notice from the Direc- tor, that the registered supplier did not comply with the requirements of subsection (K). Before the pro- bationary period begins, the registered supplier shall notify the Director in writing of the beginning date of the probationary period.

    4.        If a registered supplier fails to comply with the require- ments of subsection (K) within one year after the end of a probationary period provided under subsection (L)(3), the registered supplier shall permanently comply with appli- cable per-gallon standards.

    M.      Effect of VOC survey failure. Each time a VOC survey con- ducted under R20-2-760 shows excess VOC emissions in the CBG-covered area, the VOC emissions performance reduction in R20-2-751(A)(8) and the minimum per-gallon VOC emis- sion reduction percentage in Table 1, column C shall be increased by an absolute 1.0 percent, not to exceed the VOC percent emissions reduction percentage per-gallon standard in Table 1, column A.

    N.       Effect of NOx survey failure. Each time a NOx survey con- ducted under R20-2-760 shows excess NOx emissions in the CBG-covered area, the NOx average emission reduction per- centage applicable to the period of May 1 through September 15 in Table 1, column B shall be increased by an absolute 1.0 percent.

    O.       Subsequent survey compliance. If the minimum VOC or aver- age NOx emissions reduction percentage has been made more stringent according to subsection (M) or (N) and all emissions reduction surveys for VOC or NOx for two consecutive years show emissions within the applicable adjusted reduction per- centage in the CBG-covered area, the applicable VOC or NOx emissions adjusted reduction percentage shall be reduced by an absolute 1.0 percent beginning in the year following the year in which the second compliant survey is conducted. Each emissions reduction percentage adjusted under this subsection shall not be decreased below the following:

    1.        >27 percent for the VOC emissions reduction percentage, May 1 - September 15, Table 1, column C; and

    2.        >6.8 percent for the NOx emissions reduction percentage, May 1 - September 15, Table 1, column B.

    P.        Subsequent survey failures. If a VOC or NOx emissions reduction percentage is made less stringent under subsection

    (O) and a subsequent VOC or NOx survey shows excess VOC or NOx emissions in the CBG-covered area:

    1.        For a VOC survey failure, the Federal Complex Model VOC emissions reduction percentage in R20-2-751(A)(8) and the minimum per gallon VOC emission reduction percentage in Table 1, column C shall be increased by an absolute 1.0 percent,  not to exceed the VOC percent emissions reduction percentage per gallon standard in Table 1, column A;

    2.        For a NOx survey failure, the NOx average emission reduction percentage applicable May 1 through Septem- ber 15 in Table 1, column B shall be increased by an absolute 1.0 percent; and

    3.        If the VOC or NOx emission reduction percentage is increased under subsection (P)(1) or (2), the VOC or NOx emission reduction percentage shall not be made less stringent regardless of the result of subsequent sur- veys for VOC or NOx emissions.

    Q.       Effective date for adjusted standards. If a performance stan- dard is adjusted by operation of subsection (M), (N), (O), or (P), the effective date for the change is the beginning of the next averaging season for which the standard is applicable.

Historical Note

Adopted effective under an exemption from the provi- sions of A.R.S. Title 41, Chapter 6, with an interim effec- tive date of September 12, 1997 (Supp. 97-3). Interim adoption expired and was automatically repealed on the date the permanent rules became effective pursuant to Laws 1997, Ch. 117; Section permanently adopted with changes October 1, 1998; filed in the Office of the Secre-

tary of State September 9, 1998 (Supp. 98-3). Amended by final rulemaking at 5 A.A.R. 4214, effective Septem- ber 22, 1999 (Supp. 99-3). Amended by final rulemaking

at 7 A.A.R. 1025, effective February 9, 2001 (Supp. 01-

1). Amended 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 rulemaking at 19

A.A.R. 3325, effective November 30, 2013 (Supp. 13-4).