Section R20-2-753. General Requirements for Pipelines and Third- party Terminals

A.      A pipeline or third-party terminal shall not accept Arizona CBG or AZRBOB for transport unless:

1.        The Arizona CBG or AZRBOB is physically transferred from an importer, refiner, oxygenate blender, pipeline, or third-party terminal registered with the Department under R20-2-750; and

2.        The registered supplier provides written verification that the gasoline is Arizona CBG or AZRBOB and complies with the standards in R20-2-751(A) or (B), as applicable, without reproducibility or numerical rounding.

B.       A pipeline or third-party terminal that transports Arizona CBG or AZRBOB shall collect a sample of each incoming batch. The pipeline or third-party terminal shall retain the sample for at least 30 days unless this time is extended for an individual sample for up to 180 days by the Director.

C.      A pipeline shall conduct quality control testing of Arizona CBG or AZRBOB at a frequency of at least one sample from one batch completing shipment for each registered supplier each day at each input location.

D.      A pipeline shall provide the Director with a report summariz- ing the quality control testing results obtained under subsec- tion (C) within 10 days of the end of each month. The report shall contain the quantity of Arizona CBG or AZRBOB, date tendered, whether the Arizona CBG or AZRBOB was trans- ported by pipeline, present sample location, and laboratory analysis results.

E.       If a batch does not meet the standards in R20-2-751(A) or (B), as applicable, but is within reproducibility, the pipeline shall notify the Director by fax within 48 hours of the batch volume and date tendered, proposed shipment date, whether the batch was transported by the pipeline, present batch location, and laboratory analysis results.

F.       If a batch does not meet the standards in R20-2-751(A) or (B), as applicable, including reproducibility, the pipeline or third- party terminal shall notify the Director by fax within 24 hours of the batch quantity and date tendered, proposed shipment date, whether the batch was transported by the pipeline, pres- ent batch location, and laboratory analysis results. If the batch is in the pipeline’s or third-party terminal’s control, the pipe- line or third-party terminal shall prevent release of the batch from a distribution point until the batch is certified as meeting the standards in R20-2-751(A) or (B), as applicable.

G.      A pipeline or third-party terminal shall develop a QA/QC pro- gram to demonstrate the accuracy and effectiveness of the pipeline’s or third-party terminal’s laboratory testing. The QA/ QC program for a pipeline or third-party terminal shall include a description of the laboratory testing protocol used to verify that Arizona CBG or AZRBOB transported to the CBG-cov- ered area meets the standards in R20-2-751(A) or (B). A pipe- line or third-party terminal shall submit the QA/QC program to the Director for approval at least three months before the pipeline or third-party terminal begins to transport Arizona CBG or AZRBOB. The Director shall approve a QA/QC pro- gram only if the Director determines that the QA/QC program ensures that the pipeline’s or third-party terminal’s laboratory testing produces data that are complete, accurate, and repro- ducible. If a pipeline or third-party terminal makes significant changes to the QA/QC program, the pipeline or third-party ter- minal shall resubmit the QA/QC program to the Director for review and approval. Within 30 days of receiving the changed QA/QC program, the Director shall determine whether the changed QA/QC program meets the quality objectives origi- nally approved by the Department. The Director shall approve the changed QA/QC program if it meets the quality objectives.

H.      A portion of a facility that a third-party terminal uses for pro- duction, import, or oxygenate blending is exempt from this Section, but the third-party terminal shall operate the exempt portion of the facility in compliance with requirements for reg- istered suppliers in R20-2-752 and oxygenate blenders in R20- 2-755, as applicable.

I.        A pipeline is not liable under R20-2-761 if it follows all of the procedures in this Section.

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 12 A.A.R. 3722, effective September 12, 2006 (Supp.

06-3).