Section R20-2-755. Additional Requirements for AZRBOB and Downstream Oxygenate Blending

A.      Application of Arizona CBG standards to AZRBOB.

1.        Determining whether AZRBOB complies with Arizona CBG standards.

a.         If a registered supplier designates a final blend as AZRBOB and complies with the provisions of this Section, the fuel properties and performance stan- dards of the AZRBOB, for purposes of compliance with Table 2, are determined by adding the specified amount of fuel ethanol to a representative sample of the AZRBOB and testing the resulting gasoline using the test methods in R20-2-759 or certifying the

ARZBOB using the CARBOB model. If the regis- tered supplier designates a range of amounts of fuel ethanol to be added to the AZRBOB, the minimum designated amount of fuel ethanol shall be added to the AZRBOB to determine the fuel properties and performance standards of the resulting Arizona CBG. If a registered supplier does not comply with this subsection, the Department shall determine whether the AZRBOB complies with applicable fuel properties and performance standards, excluding requirements for vapor pressure, without adding fuel ethanol to the AZRBOB.

b.        In determining whether AZRBOB complies with the Arizona CBG standards, the registered supplier shall ensure that the fuel ethanol added to the representa- tive sample under subsection (A)(1)(a) is representa- tive of the fuel ethanol the registered supplier reasonably expects will be subsequently added to the AZRBOB.

2.        Calculating the volume of AZRBOB. If a registered sup- plier designates a final blend as AZRBOB and complies with this Section, the volume of AZRBOB is calculated for compliance purposes under R20-2-751 by adding the minimum amount of fuel ethanol designated by the regis- tered supplier. If a registered supplier fails to comply with this subsection, the Department shall calculate the vol- ume of AZRBOB for purposes of compliance with appli- cable fuel properties and performance standards without adding the amount of fuel ethanol to the AZRBOB.

B.       Restrictions on transferring AZRBOB.

1.        A person shall not transfer ownership or custody of AZR- BOB to any other person unless the transferee notifies the transferor in writing that:

a.         The transferee is a registered oxygenate blender and will add fuel ethanol in the amount (or within the range of amounts) designated in R20-2-757 before the AZRBOB is transferred from a final distribution facility, or

b.        The transferee will take all reasonably prudent steps necessary to ensure that the AZRBOB is transferred to a registered oxygenate blender that adds the amount (or within the range of amounts) of fuel eth- anol designated in R20-2-757 to the AZRBOB before the AZRBOB is transferred from a final dis- tribution facility.

2.        A person shall not sell or supply Arizona CBG from a final distribution facility if the amount or range of amounts of fuel ethanol designated in R20-2-757 has not been added to the AZRBOB.

C.      Restrictions on blending AZRBOB with other products. A per- son shall not combine AZRBOB supplied from the facility at which the AZRBOB is produced or imported with any other AZRBOB, gasoline, blendstock, or oxygenate, except for:

1.        Fuel ethanol in the amount (or within the range of amounts) specified by the registered supplier at the time the AZRBOB is supplied from the production or import facility, or

2.        Other AZRBOB for which the same fuel ethanol amount (or range of amounts) is specified by the registered sup- plier at the time the AZRBOB is supplied from the pro- duction or import facility.

D.      Quality assurance sampling and testing requirements for a reg- istered supplier supplying AZRBOB from a production or import facility. A registered supplier supplying  AZRBOB from a production or import facility shall use an independent third-party quality assurance sampling and testing program as

described in subsection (E) or conduct a quality assurance sampling and testing program that meets the requirements of 40 CFR 80.69(a)(7), as it existed on July 1, 1996, except for the changes listed in subsections (D)(1) through (3). 40 CFR 80.69(a)(7), July 1, 1996, is incorporated by reference and on file with the Department. A copy may be obtained at the Gov- ernment Printing Office, P.O. Box 979050, St. Louis, MO 63197-9000 or bookstore.gpo.gov. The material incorporated includes no future editions or amendments.

1.        40 CFR 80.69(a)(7). The word “RBOB” is changed to read “AZRBOB”;

2.        40 CFR 80.69(a)(7). “...using the methodology specified in § 80.46...” is changed to read “...using the methodol- ogy specified in R20-2-759...;” and

3.        40 CFR 80.69(a)(7)(ii). “(within the correlation ranges specified in § 80.65(e)(2)(i))” is changed to read “(within the ranges of the applicable test methods).

E.       General requirements for an independent third-party quality assurance sampling and testing program. A registered supplier may contract with an independent third party that conducts a quality assurance sampling and testing program for one or more registered suppliers. The registered supplier shall ensure that the quality assurance sampling and testing program:

1.        Is designed and conducted by a third party that is inde- pendent of the registered supplier. To be considered inde- pendent:

a.         The third party shall not be an employee of a regis- tered supplier,

b.        The third party shall not have an obligation to or interest in any registered supplier, and

c.         The registered supplier shall not have an obligation to or interest in the third party;

2.        Is conducted from November 1 through March 31 on all samples collected under the program design previously approved by the Director under subsection (G);

3.        Involves sampling and testing that is representative of all Arizona CBG dispensed in the CBG-covered area;

4.        Analyzes each sample for oxygenate according to the methodologies specified in R20-2-759;

5.        Bases results on an analysis of each sample collected during the sampling period unless a specific sample does not comply with the applicable per gallon maximum or minimum standards for the fuel property being evaluated in addition to any reproducibility applicable to the fuel property;

6.        Participates in a correlation program with the Director to ensure the validity of analysis results;

7.        Does not provide advance notice, except as provided in subsection (F), of the date or location of any sampling;

8.        Provides a duplicate of any sample, with information regarding where and the date on which the sample was collected, upon request of the Director, within 30 days after submitting the report required under subsection (E)(10);

9.        Permits a Department official to monitor sample collec- tion, transportation, storage, and analysis at any time; and

10.     Prepares and submits a report to the Director within 30 days after the sampling is completed that includes the fol- lowing information:

a.         Name of the person collecting the samples;

b.        Attestation by an officer of the third party that the sampling and testing was done according to the pro- gram plan approved by the Director under subsec- tion (G) and the results are accurate;

c.         Identification of the registered supplier for whom the sampling and testing program was conducted if

the sampling and testing program was conducted for only one registered supplier;

d.        Identification of the area from which the samples were collected;

e.         Address of each motor fuel dispensing site from which a sample was collected;

f.         Dates on which the samples were collected;

g.        Results of the analysis of the samples for oxygenate type and oxygen weight percent, aromatic hydrocar- bon, and olefin content, E200, E300, and vapor pres- sure, and  the calculated VOC or NOx emissions reduction percentage, as applicable;

h.        Name and address of each laboratory at which the samples were analyzed;

i.         Description of the method used to select the motor fuel dispensing sites from which a sample was col- lected;

j.         Number of samples collected at each motor fuel dis- pensing site; and

k.        Justification for excluding a collected sample if one was excluded.

F.       An independent third party that contracts with one or more registered suppliers to conduct a quality assurance sampling and testing program shall  begin the sampling on the date selected by the Director. The Director shall inform the third party of the date selected at least 10 business days before sam- pling is to begin.

G.      To obtain the Director’s approval of an independent third- party quality assurance sampling and testing program plan, the person seeking the approval shall:

1.        Submit the plan to the Director no later than January 1 to cover the sampling and testing period from November 1 through March 31 of each year, and

2.        Have the plan signed by an officer of the third party that will conduct the sampling and testing program.

H.      No later than September 1 of each year, a registered supplier that intends to meet the requirements in subsection (D) by con- tracting with an independent third party to conduct quality assurance sampling and testing from November 1 through March 31 shall enter into the contract and pay all of the money necessary to conduct the sampling and testing program. The registered supplier may pay the money necessary to conduct the sampling and testing program to the third party or to an escrow account with instructions to the escrow agent to release the money to the third party as the testing program is imple- mented. No later than September 15, the registered supplier shall submit to the Director a copy of the contract with the third party, proof that the money necessary to conduct the sam- pling and testing program has been paid, and, if applicable, a copy of the escrow agreement.

I.        Requirements for oxygenate blenders.

1.        Requirement to add fuel ethanol to AZRBOB. If an oxy- genate blender receives AZRBOB from a transferor to whom the oxygenate blender represents that fuel ethanol will be added to the AZRBOB, the oxygenate blender shall add fuel ethanol to the AZRBOB in the amount (or within the range of amounts) identified in the documenta- tion accompanying the AZRBOB.

2.        Additional requirements for oxygenate blending at termi- nals. An oxygenate blender that makes Arizona CBG by blending fuel ethanol with AZRBOB in a motor fuel stor- age tank, other than a truck used to deliver motor fuel to a retail outlet or bulk-purchaser consumer facility, shall determine the oxygen content and volume of the Arizona CBG before shipping, by collecting and analyzing a rep-

resentative sample of the Arizona CBG, using the meth- odology in R20-2-759.

3.        Additional requirements for oxygenate blending  in trucks. An oxygenate blender that blends AZRBOB in a motor fuel delivery truck shall conduct quality assurance sampling and testing that meets the requirements in 40 CFR 80.69(e)(2), as it existed on July 1, 1996, except for the changes listed in subsections (I)(3)(a) through (c). 40 CFR 80.69(e)(2), July 1, 1996, is incorporated by refer- ence and on file with the Department. A copy may be obtained at the Government Printing Office, P.O. Box 979050, St. Louis, MO 63197-9000 or book- store.gpo.gov. The material incorporated includes no future editions or amendments.

a.         40 CFR 80.69(e)(2). The word “RBOB” is changed to read “AZRBOB;”

b.        40 CFR 80.69(e)(2)(iv). “... using the testing meth- odology specified at § 80.46 ...” is changed to read “... using the testing methodology specified in R20- 2-759...;” and

c.         40 CFR 80.69(e)(2)(v). “(within the ranges specified in § 80.70(b)(2)(I))” is changed to read “(within the ranges of the applicable test methods).”

4.        Additional requirements for in-line oxygenate blending in pipelines using computer-controlled blending.

a.         An oxygenate blender that produces Arizona CBG by blending fuel ethanol with AZRBOB into a pipe- line using computer-controlled in-line blending shall, for each batch of Arizona CBG produced:

i.         Obtain a flow proportional composite sample after the addition of fuel ethanol and before combining the resulting Arizona CBG with any other Arizona CBG;

ii.        Determine the oxygen content of the Arizona CBG by analyzing the composite sample within 24 hours of blending using the methodology in R20-2-759; and

iii.      Determine the volume of the resulting Arizona CBG.

b.        If the test results for the Arizona CBG indicate that it does not contain the amount of fuel ethanol specified by the ranges of the applicable test methods, the oxygenate blender shall:

i.         Notify the pipeline to downgrade the Arizona CBG to conventional gasoline or transmix upon arrival in Arizona;

ii.        Begin an investigation to determine the cause of the noncompliance;

iii.      Collect a representative sample every two hours during each in-line blend of AZRBOB and fuel ethanol, and analyze the samples within 12 hours of collection, until the cause of the noncompliance is determined and cor- rected; and

iv.       Notify the Director in writing within one busi- ness day that the Arizona CBG does not com- ply with the requirements of this Article.

c.         The oxygenate blender shall comply with subsection (I)(4)(b)(iii) until the Director determines that the corrective action has remedied the noncompliance.

5.        Recordkeeping and records retention.

a.         An oxygenate blender shall maintain, for five years from the date of each sampling, records of the fol- lowing:

i.         Sample date,

ii.        Identity of blend or product sampled,

iii.      Container or other vessel sampled,

iv.       Volume of final blend or shipment,

v.        Oxygen content as determined under R20-2- 759, and

vi.       Results from all testing.

b.        The Director shall deem that Arizona CBG blended by an oxygenate blender and not tested and docu- mented as required by this Section has an oxygen content that exceeds the standards specified in R20- 2-751 or exceeds the comparable PM averaging lim- its, if applicable, unless the oxygenate blender demonstrates to the Director that the Arizona CBG meets the standards in R20-2-751.

c.         Within 20 days of the Director’s written request, an oxygenate blender shall provide any records main- tained by the oxygenate blender under this Section. If the oxygenate blender fails to provide records requested for a blend or shipment of Arizona CBG, the Director shall deem that the blend or shipment of Arizona CBG  violates R20-2-751 or exceeds the comparable PM averaging limits, if applicable, unless the oxygenate blender demonstrates to the Director that the Arizona CBG meets the standards and limits under R20-2-751.

6.        Notification requirement. An oxygenate blender shall notify the Director by fax before transporting Arizona CBG or AZRBOB into the CBG-covered area by a means other than a pipeline.

7.        Quality assurance and quality control (QA/QC) program. An oxygenate blender that conducts sampling and testing under subsection (I) in the oxygenate blender’s own labo- ratory shall develop a QA/QC program to demonstrate the accuracy and effectiveness of the oxygenate blender’s sampling and testing of Arizona CBG or AZRBOB. The oxygenate blender shall submit the QA/QC program to the Director for approval at least three months before transporting Arizona CBG. The Director shall approve a QA/QC program only if the Director determines that the QA/QC program ensures that the oxygenate blender’s sampling and testing produces data that are complete, accurate, and reproducible. Instead of developing a QA/ QC program, an oxygenate blender may comply with the independent testing requirements of R20-2-752(F), except that, for sampling and testing conducted under subsection (I)(3), the minimum number of samples col- lected and tested by the independent laboratory shall be 10% of the number of samples required to be collected and tested under subsection (I).

8.        An oxygenate blender that does not conduct laboratory sampling and testing required under subsection (I) in its own laboratory shall designate an independent laboratory, as described in R20-2-752(F), to conduct the sampling and testing required under subsection (I)(7).

9.        Within 24 hours of the Director’s or designee’s written request, an oxygenate blender shall submit a duplicate of any sample collected under subsection (I)(7).

J.        Subsection (A)(1)(a) will not become effective until Arizona’s revised State Implementation Plan is approved by EPA.

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). Amended by final rulemaking at 17 A.A.R. 190,

effective March 12, 2011 (Supp. 11-1).