Office of Transportation and Air Quality
WCnF"\ EPA-420-F-05-011
February 2005
Gasoline Sulfur Rule Questions and Answers
Received Between December 2000 and February 2005
The following are responses to questions received by the Environmental Protection
Agency (EPA) concerning the manner in which the EPA intends to implement and assure
compliance with the gasoline sulfur regulations at 40 CFR Part 80. This document was prepared
by EPA's Office of Air and Radiation, Office of Transportation and Air Quality, and the Office
of Enforcement and Compliance Assurance, Office of Regulatory Enforcement.
Regulated parties may use this document to aid in achieving compliance with the
gasoline sulfur regulations. However, this document does not in any way alter the requirements
of these regulations. While the answers provided in this document represent the Agency's
interpretation and general plans for implementation of the regulations at this time, some of the
responses may change as additional information becomes available or as the Agency further
considers certain issues.
This guidance document does not establish or change legal rights or obligations. It does
not establish binding rules or requirements and is not fully determinative of the issues addressed.
Agency decisions in any particular case will be made applying the law and regulations on the
basis of specific facts and actual action.
While we have attempted to include answers to all questions received to date, the
necessity for policy decisions and/or resource constraints may have prevented the inclusion of
certain questions. Questions not answered in this document will be answered in a subsequent
document. The Agency intends to provide any additional responses as expeditiously as possible.
Questions that merely require a justification of the regulations, or that have previously been
answered or discussed in the preamble to the regulations have been omitted.
Standards 2
GPA/Small Refiners 2
Allotments and Credits 6
California Gasoline Exemption 9
Downstream Issues 10
-------
Standards
1. Question: If a refinery is sold in 2004 and the prior owner exceeded the per-gallon cap
standard, is the new owner subject to the adjusted cap standard under § 80.195(d)(2) in 2005?
Answer: Yes. Section 80.195(d)(2) applies to the refinery rather than to the refiner.
Specifically, it provides: "In 2004 only, a refiner or importer may produce or import gasoline
with a per-gallon sulfur content greater than 300 ppm, to a maximum of 350 ppm, provided ....
[t]he refinery [emphasis added] or importer becomes subject to an adjusted per-gallon cap
standard in 2005...." As a result, if the refinery produced gasoline that exceeded the cap standard
of 300 ppm sulfur in 2004 (but not above 350 ppm), the new owner will be subject to the
adjusted cap standard under § 80.195(d) for gasoline produced by the refinery in 2005.
2. Question: Does the gasoline sulfur rule require refiners and downstream parties to
account for the sulfur content of a registered fuel additive, such as a corrosion inhibitor used to
help prevent sulfur-related fuel gauge sending unit failures?
Answer: Currently, there is no requirement under the gasoline sulfur rule for refiners or
downstream parties to demonstrate compliance with the gasoline sulfur standards for registered
fuel additives. Parties who add fuel additives, however, are responsible for ensuring that the
addition of the additive does not cause the gasoline to exceed the applicable downstream sulfur
standard under §80.210.
GPA/Small Refiners
1. Question: The regulations say that a small refiner's annual average sulfur standards
shall apply to the volume of gasoline produced by a small refiner's refinery up to the lesser of
105 percent of the refinery's baseline gasoline volume or the volume of gasoline produced by the
refinery during the averaging period by processing crude oil. Since baselines were calculated
based on the total volume of gasoline produced during the baseline period, including gasoline
produced from purchased blendstocks and gasoline produced by processing small amounts of
purchased intermediate feedstocks, should the volume of gasoline produced during the averaging
period be calculated in the same manner as the baseline calculation (i.e., include gasoline
produced from purchased blendstocks and gasoline produced by processing small amounts of
purchased intermediate feedstocks)?
Answer: Section 80.240(c)(l) provides that "The refinery annual average standards
specified in [§ 80.240(a)] apply to the volume of gasoline produced by a small refiner's refinery
up to the lesser of:
(i)105% of the baseline volume as determined under § 80.250(a)(l); or
(ii) The volume of gasoline produced at that refinery during the averaging period by
processing crude oil."
-------
The preamble to the gasoline sulfur rule states that this limitation is included in the
regulations to ensure that refineries owned by small refiners receive relief only for the gasoline
produced from crude oil, which is the portion of the refinery operation requiring capital
investment to meet lower sulfur standards. See 65 FR 6769 (February 10, 2000). The preamble
indicates that the baseline volume is the volume of gasoline produced during the baseline years
(1997-1998) from crude oil, excluding the volume of gasoline for export as well as gasoline
produced using purchased blendstocks. Note that the preamble made an exception, however, for
purchased blendstocks that were substantially transformed using a refinery processing unit -
such blendstocks could be included in baseline volumes. See 65 FR 6769, footnote 94.
As the preamble indicates, the intent of the regulations was to exclude gasoline produced
from purchased blendstocks from the small refiner baseline volume calculations. Where
gasoline is determined to be subject to the volume limitation of 105 percent of the baseline
volume under § 80.240(c)(l)(i), including gasoline produced from purchased blendstocks in the
refinery's baseline volume would have the effect of increasing the volume of gasoline subject to
the small refiner standards. Although gasoline produced from purchased blendstocks may have
been included in some small refinery baseline calculations, we believe the amount is minimal
and does not undermine the intent of the provisions of § 80.240(c)(i.e., to limit application of the
small refiner standards to gasoline produced by processing crude oil).
On the other hand, we believe that including batches of gasoline produced solely by
blending purchased blendstocks in calculating the annual volume of gasoline produced using
crude oil under § 80.240(c)(l)(ii) may undermine the intent of the regulations, particularly if
large of amounts of gasoline are produced by blending purchased blendstocks. As a result,
batches of gasoline produced by blending two or more purchased blendstocks together, or by
blending purchased blendstocks with previously certified gasoline, may not be included for
purposes of determining the annual volume of gasoline production under § 80.240(c)(l)(ii).
However, as indicated in the preamble, gasoline produced using purchased blendstocks, or
intermediate feedstocks, which are substantially transformed using a refinery processing unit
may be included in the volume under § 80.240(c)(l)(ii).
We understand that, as a part of normal refinery operations, butane produced by a
refinery is often stored or sold during the summer when it is not needed. Butane is then brought
back to the refinery, or purchased, for use in the winter. We assume that the amount of butane
which is added to gasoline produced by a refinery during the winter is roughly the same amount
of butane that is produced and stored or sold by the refinery during the summer. Therefore, we
will consider such butane to be part of a refinery's production volume for purposes of
determining the volume under § 80.240(c)(l)(ii).
We also believe that it is normal business practice for a refinery to add some small
amounts of other purchased blendstocks to the gasoline it produces. Therefore, although
purchased blendstocks added to gasoline produced by a refinery generally must be excluded for
purposes of the volume determination under § 80.240(c)(l)(ii), we believe that de minimus
amounts of such blendstocks may be included.
-------
2. Question: Small refiners and Geographic Phase-In Area (GPA) refiners have the option
of extending their gasoline sulfur standards if they produce 100 percent of their highway diesel
fuel at the 15 ppm sulfur level. During their extension period, may these same small and GPA
refiners continue to generate gasoline sulfur credits, or use "early" gasoline sulfur credits to meet
the sulfur standards?
Answer: Yes. The regulations at § 80.540 allow a GPA refiner to extend its gasoline
sulfur standards from December 31, 2006, to December 31, 2008, if 100 percent of the GPA
refiner's highway (motor vehicle) diesel fuel complies with the 15 ppm sulfur standard at §
80.520(a)(l) by June 1, 2006 (at a volume that is at least 85 percent of its baseline volume). The
regulations at § 80.553 allow a small refiner to extend its gasoline sulfur standards to December
31, 2010, if 100 percent of the small refiner's highway diesel fuel complies with the 15 ppm
sulfur standard at § 80.520(a)(l) by June 1, 2006 (at a volume that is at least 85 percent of its
baseline volume). Where EPA has approved this extension of the gasoline sulfur standards for a
GPA or small refiner, we interpret the regulations to also extend the gasoline sulfur provisions
relating to compliance with the GPA or small refiner gasoline sulfur standards. As a result, a
GPA or small refiner with an approved extension of its GPA or small refiner standards may
continue to generate gasoline sulfur credits based on its GPA or small refiner status, or use
credits to meet its gasoline sulfur standards, including early credits (i.e, credits generated before
2004), during the appropriate extension period.
3. Question: The term Sb in the equation in § 80.240(c)(2) is the small refiner sulfur
baseline as determined under § 80.250. Should this term be the small refiner standards
determined under § 80.240(a) instead of the small refiner baseline?
Answer: Yes. The term "Sb" in the equation in § 80.240(c)(2), where "Sb = Small refiner
sulfur baseline as determined under § 80.250," should be "Sstd," where "Sstd= Small refiner sulfur
standard as determined under § 80.240(a)." We intend to correct this error in a future
rulemaking.
4. Question: If a small refiner buys a refinery that produces GPA gasoline, does the refiner
have the option to retain the GPA standards for the refinery, or must the newly acquired refinery
meet the small refiner standards?
Answer: Section 80.216(e) provides that gasoline produced by approved small refiners
subject to the small refiner standards is not subject to the GPA standards. Section 80.240(b)
provides that the small refiner annual average sulfur standards must be met for each refinery
owned by a small refiner. Therefore, when a small refiner buys a refinery, that refinery becomes
one of the small refiner's refineries that is subject to the small refiner standards. As such, the
gasoline produced by that refinery is not subject to the GPA standards. If, however, the small
refiner withdraws its status as a small refiner under § 80.235(i), the GPA standards may apply to
gasoline produced for sale in the GPA by the newly acquired refinery.
-------
5. Question: Klickitat County Oregon is not included in the list of GPA counties. Was this
an oversight?
Answer: Yes. Klickitat County is included in the GPA, but was inadvertently omitted
from the list of GPA counties when the list was published in the Federal Register. We intend to
correct this error in a subsequent rulemaking.
6. Question: Does § 80.255, which requires small refiners to provide a compliance plan and
demonstration of progress, apply only to applications for small refiner gasoline hardship
extensions under § 80.260, or do these requirements also apply to applications for small refiner
gasoline hardship extensions under § 80.553?
Answer: To be eligible for an extension of the small refiner standards under the gasoline
sulfur rule, a small refiner must fulfill the requirements under § 80.255 to provide a compliance
plan and demonstration of progress. These reports provide EPA with information regarding the
small refiner's efforts toward compliance with the gasoline sulfur standards in § 80.195 and
provide a basis upon which to determine whether an extension of the small refiner standards is
warranted. Extensions of the small refiner standards under the gasoline sulfur rule are based on
significant economic hardship and the inability of the refinery to produce gasoline meeting the
sulfur standards in § 80.195. In contrast, the criteria for obtaining an extension of the small
refiner gasoline standards under the motor vehicle diesel fuel regulations is fulfillment of the
requirements in § 80.553, including a demonstration that starting no later than June 1, 2006, all
motor vehicle diesel fuel produced by the refiner will comply with the 15 ppm sulfur standard.
The regulations do not require a small refiner to fulfill the requirements in § 80.255 to be eligible
for an extension of the small refiner gasoline standards under § 80.553 of the diesel fuel
regulations. As a result, we believe that the requirements in § 80.255 do not apply to small
refiner gasoline hardship extensions under § 80.553.
7. Question: Can both credits and allotments be used to comply with the adjusted small
refiner standard under § 80.240(c)(2)?
Answer: As discussed above (Standards, Question 2), § 80.240(c)(l) provides that the
small refiner annual average standards in § 80.240(a) apply to the volume of gasoline produced
by a small refiner's refinery up to the lesser of 105 percent of the baseline volume as determined
under § 80.250(a)(l) or the volume of gasoline produced by that refinery during the averaging
period by processing crude oil. For small refiners who exceed the volume limitation under §
80.240(c)(l), § 80.240(c)(2) provides an equation that adjusts the refiner's refinery standard to
subject that portion of the refinery's production volume that is in excess of the volume limitation
to 120 ppm sulfur in 2004, 90 ppm sulfur in 2005, and 30 ppm sulfur every year thereafter.
Thus, that portion of a small refiner's gasoline that is not subject to the small refiner standards is
subject to the same sulfur limitations as the corporate pool annual average standards in 2004 and
2005, and the same limitations as the national refinery average standard in 2006 and beyond.
Small refiners, however, do not comply with the corporate pool average standards per se; i.e., a
small refiner does not pool volumes from all of its refineries and comply with the 120/90 ppm
-------
sulfur standards on a company-wide basis, and it does not generate allotments based on
reductions from the 120/90 standards. See § 80.195(c)(4); § 80.275(f). See also 65 FR 6760.
The equation in § 80.240(c)(2) calculates a single "adjusted" sulfur standard applicable to all of
a small refiner refinery's gasoline production during the annual averaging period. As such, this
adjusted standard is the small refiner annual average standard for the refinery for that annual
averaging period.
Section 80.240(c)(3) provides that the small refiner average standards under 80.240(a)
may be met using sulfur allotments or credits. The intent of the regulations was to allow a small
refiner to use allotments or credits (or both) to achieve compliance with the small refiner's
refinery average standard. See 65 FR 6770-71 (February 10, 2000). As discussed above, for a
small refiner whose refinery production exceeds the volume limits under § 80.240(c)(l), the
refinery's standard is the adjusted standard calculated under § 80.240(c)(2). Although the
equation in § 80.240(c)(2) subjects the refiner's volume that is in excess of the volume limitation
to the same sulfur limits as the corporate pool annual average standards in 2004 and 2005, as
discussed above, the small refiner does not comply with the corporate pool average standards as
such. As a result, small refiners are not limited to the use of allotments to achieve compliance
for gasoline production in excess of the volume limitation under § 80.240(c)(l). Small refiners
may use credits or allotments (or both) to achieve compliance with the small refiner standard
calculated under § 80.240(c)(2) for all of their annual production volume. We intend to clarify
this in a future rulemaking.
Allotments and Credits
1. Question: Can butane blenders generate allotments and credits?
Answer: Section 80.340(b)(l) provides that butane blenders may comply with the
gasoline sulfur rule sampling and testing requirements using test results from the butane supplier
provided that certain requirements are met. One requirement is that the sulfur content of the
butane must not exceed 120 ppm in 2004 and 30 ppm in 2005 and thereafter on a per-gallon
basis. Section 80.340(b)(3) requires that the sulfur content and volume of each batch of butane
used to produce gasoline is treated as a separate batch for purposes of calculating compliance
with the sulfur standards in §§ 80.195 and 80.216. These sections include the corporate pool and
refinery and importer annual average standards.
Although the regulations require refiners who blend butane into previously certified
gasoline under § 80.340(b) to comply with the sulfur standards for the butane on a per-gallon
basis, we believe that the regulations at § 80.340(b)(3) also require refiners to include the butane
in compliance calculations for purposes of complying with the corporate pool standards and the
refinery annual average standards. Thus, a refiner that produces gasoline by blending butane
into previously certified gasoline and also produces gasoline by processing crude oil or blending
other components will include the butane in its corporate pool average in 2004 and 2005, and in
its refinery average beginning in 2005. Similarly, a refiner that produces gasoline only by
-------
blending butane into previously certified gasoline will comply with the corporate pool and
refinery average standards based on the batches of butane blended into the gasoline. In either
case, we believe that sulfur allotments and credits may be generated based on reductions from
the corporate pool and refinery annual average standards as provided in §§ 80.275 and 80.310.
2. Question: Under § 80.275(e)(3), are allotments generated in 2003 and 2004 discounted
when they are used to meet the refinery annual average standard in 2005?
Answer: Section 80.195(b)(4) provides that, in 2005 only, the refinery or importer
annual average sulfur standard may be met using credits or allotments as provided under §
80.275, or credits as provided under § 80.315. Section 80.275(e)(3) provides that allotments
generated in 2003 or 2004 which are carried over to 2005 are discounted by 50 percent. Section
80.275(e)(3) also provides that the discounted allotments may be used to demonstrate
compliance with the corporate pool average standard in 2005, or converted to credits for use in
demonstrating compliance with the refinery average standard in 2005 or a subsequent year.
Although § 80.275(e)(3) does not specifically state that 2003/2004 allotments used to meet the
refinery annual average standard in 2005 are discounted, we interpret § 80.275(e)(3) to provide
that any allotments generated in 2003 or 2004 that are carried over for use in 2005 are
discounted, including allotments used to meet the refinery annual average standard in 2005. This
interpretation is consistent with the language in § 80.275(e)(3) which provides that 2003/2004
allotments that are carried over to 2005, and then converted to credits and used for compliance
with the refinery annual average standard, are to be discounted.
3. Question: What constitutes a "transfer" of credits or allotments under the gasoline sulfur
regulations? Do the regulations preclude the use of futures contracts?
Answer: The gasoline sulfur regulations provide that allotments and credits may be
transferred from one refiner or importer to another, provided that no allotment or credit is
transferred more than twice. The first transfer is from the refiner or importer who generated the
allotments or credits to a refiner or importer who intends to use the allotments or credits for
demonstrating compliance with the sulfur standards. If the transferee refiner or importer cannot
use the allotments or credits, the refiner or importer may make a final transfer to another refiner
or importer who intends to use the allotments or credits for compliance. If that refiner or
importer does not use them, the allotments or credits must be terminated. See §§ 80.275(d)(l),
80.315(b)(l)(iv). A refiner or importer must use any allotments or credits necessary to meet its
sulfur standards before transferring any allotments or credits to another refiner or importer. See
§§80.275(d)(2),80.315((b)(l)(v).
The regulations also provide that, if any allotments or credits are transferred to or
obtained from another party, the refiner or importer must report to EPA the name and EPA
registration number of the party it transferred the allotments or credits to or received them from,
and the number of allotments or credits that were obtained or transferred. See § 80.370(a)(6)(iv).
In addition, the regulations provide that refiners or importers must keep records regarding credits
and allotments, including the name and EPA registration number of any party that the refiner or
7
-------
importer transferred allotments or credits to or obtained them from, and the number of allotments
or credits that were transferred or obtained. See § 80.365(b)(2)(iv).
A "transfer" under the regulations occurs when one refiner or importer conveys
allotments or credits to another refiner or importer and all of the requirements regarding transfers
under the regulations are met, including all of the applicable reporting and recordkeeping
requirements. As a result, for a transfer to be executed, both parties to the transfer must keep
records of the transaction and report the transfer to EPA. The transfer must be reported by both
parties in the reports they submit for the annual averaging period in which the transaction occurs.
For example, if a refiner generates credits in 2005 and plans to convey them to another refiner in
2006, the refiner must report the generation of the credits in its 2005 report and indicate that the
credits are being carried over to the next reporting period. The refiner must then report the
transfer of the credits in its 2006 report. The transferee refiner must also report the transfer (i.e.,
receipt of the credits) in its 2006 report. If a conveyance takes place and one party fails to report
the transaction, the transfer will not be executed. For example, if a buyer reports a purchase of
credits but the generator/seller of the credits does not report the transaction, the transfer will not
be executed and the buyer will not be able to use the credits for demonstrating compliance (or
make a final transfer to another refiner or carry them over to the next reporting period.) If, in
this example, the failure to report was due to a clerical error or similar mistake, the seller may
submit an amended report reflecting the transfer of the credits. However, the buyer of the credits
will not be able to use the credits until the seller submits the amended report.
As we indicated in the preamble to the gasoline sulfur rule, there is nothing in the
regulations that would prevent a person from facilitating the transfer of credits from parties that
have generated them to parties who need them for compliance, e.g., a broker who would act like
a real estate broker, so long as the title to the credits or allotments is transferred directly from the
generator to the user (with one intermediate transfer allowed, as noted above.) See 65 FR 6764
(February 10, 2000). Therefore, even if extraneous transactions involving allotments or credits,
such as brokering transfers or trading futures contracts occur, an actual "transfer"will not occur
under the regulations unless and until all of the regulatory requirements regarding transfers,
including all reporting and recordkeeping requirements, are fulfilled by both parties.
4. Question: Do the regulations allow parties to transfer allotments beginning January 1
through the last day of February following the compliance year in question? For example, could
company A buy 2004 allotments from company B after January 1, 2005, for application to
company A's 2004 compliance year? Would the allotments in this example be discounted by 50
percent because the transaction occurred in 2005?
Answer: The gasoline sulfur regulations provide that credits may be used to meet the
annual average standards provided that "[a]ny credit transfer takes place no later than the last day
of February following the calendar year averaging period when the credits are used." See §
80.315(b)(l)(iii). Although the regulations do not contain a similar provision for allotments, it
was EPA's intention to treat allotment transfers in the same way that credit transfers are treated
with regard to the time period for trading. As a result, we believe that allotments generated in
-------
2004 may be transferred after January 1, 2005, and used by the buyer refiner or importer for
demonstrating compliance for the 2004 annual averaging period, as long as the transfer is
reported by both parties in their EPA reports for 2004 (due the last day of February, 2005). In
such a situation, the allotments will not be discounted even though the actual transfer takes place
in 2005. If, however, the buyer refiner or importer does not use the credits for compliance for
the 2004 annual averaging period, and instead carries them over and uses them to demonstrate
compliance for the 2005 annual averaging period, then the allotments will be discounted by 50
percent.
California Gasoline Exemption
1. Question: Can California gasoline be included for purposes of generating allotments or
credits if the gasoline is also certified with EPA?
Answer: Under § 80.375(a), California gasoline is defined for purposes of the gasoline
sulfur regulations as "any gasoline designated by the refiner as for use in California." Under §
80.375(c)(2) and (c)(3), gasoline designated by the refiner as California gasoline must be kept
segregated from gasoline produced for use outside of California, and it must ultimately be used
in California and not used elsewhere. Therefore, gasoline may not be designated, or certified, as
both California gasoline and gasoline for use outside California.
Sections 80.200(b) and 80.375(b) provide that gasoline that complies with the
requirements for California gasoline under § 80.375 is not subject to the requirements under the
gasoline sulfur rule. California gasoline, therefore, is excluded from a refiner's volume for
purposes of gasoline sulfur compliance calculations. Since allotments and credits are generated
based on the volume of gasoline included in a refiner's compliance calculations, and since
California gasoline is not included for purposes of compliance calculations, California gasoline
also is not included for purposes of calculating the amount of allotments and credits generated.
The regulations do not provide for California gasoline to be added back into a refinery's
production volume for purposes of calculating allotments and credits.
-------
Downstream Issues
1. Question: How should small refiner gasoline be identified on product transfer
documents (PTDs) where the terminal's sulfur test result is not available before the gasoline
leaves the terminal?
Answer: Section 80.210(d) requires small refiner gasoline (S-RGAS) to be sampled and
tested and shown to contain a threshold sulfur content in order to continue to be designated as S-
RGAS on product transfer documents (PTDs). Section 80.210(e) provides that where S-RGAS
is being delivered into a terminal storage tank containing non-S-RGAS and the tank is
simultaneously supplying gasoline to a transport truck, the terminal has the option to identify the
gasoline as S-RGAS before the delivery into the terminal tank is completed and a sample is
taken and tested. For such gasoline, the terminal is not required to change the PTDs even if it is
later determined, based on test results, that the gasoline may not have qualified as S-RGAS.
However, upon completion of the delivery, the terminal may identify the gasoline as S-RGAS
only if the test results show that it qualifies as S-RGAS. As a result, for any gasoline loaded into
the truck after the delivery into the terminal tank was completed and the sample was taken, but
before the test results are received, the terminal may identify the gasoline as S-RGAS on PTDs,
but must correct the PTDs if the test results show that the gasoline did not qualify as S-RGAS.
Alternatively, the terminal may choose not to identify the gasoline as S-RGAS, but must correct
the PTDs if the test results show that the gasoline qualified as S-RGAS. To avoid confusion
downstream, we recommend that the PTDs accompanying such gasoline include language which
indicates that the designation is provisional, such as "S-RGAS, pending test results," or "Non-S-
RGAS, pending test results," as appropriate.
In a situation where non-S-RGAS is being delivered into a terminal storage tank
containing S-RGAS, the terminal may continue to identify the gas as S-RGAS until the delivery
into the terminal tank is completed and the sample is taken. The terminal will not have to correct
PTDs if the test results later indicate that the gasoline may not have qualified as S-RGAS. After
the delivery into the terminal tank is completed and a sample is taken, but before receiving the
test results, the terminal may identify the gasoline as either S-RGAS or non-S-RGAS, but must
correct the PTDs if the test results indicate a different designation is appropriate. As discussed
above, we recommend that such gasoline be identified on PTDs as "S-RGAS, pending test
results," or Non-S-RGAS, pending test results," as appropriate." These requirements are
summarized in Table 1, below.
10
-------
Table 1. PTD Language Requirements for Gasoline Loaded Into a Transport Truck from
a Terminal Storage Tank that is Simultaneously Receiving a Gasoline Delivery
New Fuel
Delivered
into Terminal
Storage Tank
S-RGAS
S-RGAS
Non-S-RGAS
Non-S-RGAS
Fuel
Contained in
Terminal
Storage Tank
Non-S-RGAS
Non-S-RGAS
S-RGAS
S-RGAS
Fuel
Delivery
Into Tank
Completed
(Yes or No)
No
Yes
No
Yes
Test Result
Received
Before
Transport
Truck
Leaves
(Yes or No)
No
No
No
No
PTD Language for Gasoline
Loaded Into Transport
Truck
"S-RGAS"
"S-RGAS, pending test
"Non-S-RGAS, pending test
results," as appropriate
"S-RGAS"
"S-RGAS, pending test
results" or
"Non-S-RGAS, pending test
results," as appropriate
PTD
Correction
Required If
Necessary
After Test
Result
Received
(Yes or No)
No
Yes
No
Yes
The regulations require that PTDs must be provided "on each occasion" that custody or
title of the gasoline is transferred from one party to the next. See § 80.77. We have interpreted
this requirement to mean, in the case of custody transfers, that the PTDs must be provided
before, during, or immediately following the transfer of the gasoline. See Reformulated
Gasoline and Anti-Dumping Questions and Answers, October 17, 1994. To fulfill this
requirement, we believe that any corrections to the PTDs must be made no more than three
business days following receipt of the test results.
We believe there is currently available at least one portable, reasonably priced American
Society for Testing and Materials (ASTM) test method that would give relatively instantaneous
test results, eliminating the need to send the sample to a lab for testing and the risk of having to
change the PTDs if the test results indicate that the gasoline was incorrectly identified.
2. Question: What PTD language is required for gasoline that includes both GPA gasoline
and S-RGAS, where the S-RGAS has a higher downstream sulfur standard than the GPA
gasoline?
Answer: Section 80.219(c)(ii) provides that all parties in the distribution system are
prohibited from commingling GPA gasoline with gasoline not designated as GPA gasoline
unless the mixture is classified as GPA gasoline. As a result, for a mixture of S-RGAS and GPA
gasoline, the PTDs must identify the gasoline as GPA gasoline. As such, the gasoline may not
be sold outside the GPA. See § 80.219(c)(i). Section 80.220(b) provides that the downstream
11
-------
sulfur standard applicable to a mixture of GPA gasoline and S-RGAS is the greater of the
downstream standard for the GPA gasoline or the downstream standard for the S-RGAS. We
believe, where a mixture of GPA gasoline and S-RGAS has a S-RGAS downstream standard that
is greater than the GPA downstream standard, the PTDs for the gasoline must identify the
product as containing both GPA gasoline and S-RGAS and state the S-RGAS downstream sulfur
standard. The product transfer documents also must include a statement that the gasoline may
not be distributed or sold for use outside the GPA.
12
------- |