Ariz. Admin. Code § 3-7-755

Current through Register Vol. 30, No. 50, December 13, 2024

Section R3-7-755 - Additional Requirements for AZRBOB and Oxygenate Blending

A. Application of Arizona CBG standards to AZRBOB.

Determining whether AZRBOB complies with Arizona CBG standards.

1. If a registered supplier designates a final blend as AZRBOB and complies with the provisions of this Section, the fuel properties and performance standards of the AZRBOB, for purposes of compliance with R3-7-751(C), are determined by adding the specified type and amount of oxygenate to a representative sample of the AZRBOB and determining the fuel properties and performance standards of the resulting gasoline using the test methods in R3-7-759 or, in the case of ethanol blends, certifying the AZRBOB using the CARBOB Model, on a form or in a format prescribed by the associate director. If the registered supplier designates a range of amounts of oxygenate to be added to the AZRBOB, the minimum designated amount of oxygenate 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 Division shall determine whether the AZRBOB complies with applicable fuel properties and performance standards, excluding requirements for vapor pressure, without adding oxygenate to the AZRBOB.

2. In determining whether AZRBOB complies with the Arizona CBG standards, the registered supplier shall ensure that the oxygenate added to the representative sample under subsection (A)(1) is representative of the oxygenate the registered supplier reasonably expects will be subsequently added to the AZRBOB.

3. The representative sample under subsection (A)(1) shall be prepared in accordance with ASTM D7717 or another test method approved by EPA or CARB.

4. Calculating the volume of AZRBOB. If a registered supplier designates a final blend as AZRBOB and complies with this Section, the volume of AZRBOB is calculated for compliance purposes under R3-7-751 by adding the minimum amount of oxygenate designated by the registered supplier. If a registered supplier fails to comply with this subsection, the Division shall calculate the volume of AZRBOB for purposes of compliance with applicable fuel properties and performance standards without adding the amount of oxygenate to the AZRBOB.

B. Restrictions on transferring AZRBOB.

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

a. The transferee is a registered oxygenate blender and will add oxygenate in the type and amount (or within the range of amounts) designated in R3-7-757, or will recertify the AZRBOB under R3-7-755(F), 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 type and amount (or within the range of amounts) of oxygenate designated in R3-7-757 to the AZRBOB, or recertifies the AZRBOB under R3-7-755(F), before the AZRBOB is transferred from a final distribution facility.

2. A person shall not sell or supply Arizona CBG from a final distribution facility if the type and amount or range of amounts of oxygenate designated in R3-7-757 have not been added to the AZRBOB, unless the final distribution facility recertifies the AZRBOB under R3-7-755(F).

C. Restrictions on blending AZRBOB with other products. A person 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. Oxygenate in the type and 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 unless the AZRBOB is recertified by an oxygenate blender under R3-7-755(F); or

2. Other AZRBOB for which the same oxygenate type and amount (or range of amounts) is specified by the registered supplier at the time the AZRBOB is supplied from the production or import facility, except that AZRBOB certified for the addition of 10% ethanol may be combined with AZRBOB certified for the addition of more than 10 but no more than 15 volume percent ethanol.

D. Survey for oxygenate blending during the winter. A registered supplier supplying AZRBOB from a production or import facility shall conduct an oxygenate blending survey program that meets the requirements of R3-7-760(A) or use an independent third-party to conduct an oxygenate blending survey program that meets the requirements in R3-7-760(B).

E. Requirements for oxygenate blenders.

1. Requirement to add oxygenate to AZRBOB. If an oxygenate blender receives AZRBOB from a transferor to whom the oxygenate blender represents that oxygenate will be added to the AZRBOB, the oxygenate blender shall add oxygenate to the AZRBOB in the type and amount (or within the range of amounts) identified in the documentation accompanying the AZRBOB except as provided under R3-7-755(F).

2. Additional requirements for oxygenate blending at terminals. An oxygenate blender that makes Arizona CBG by blending oxygenate with AZRBOB in a motor fuel storage 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 representative sample of the Arizona CBG, using the methodology in R3-7-759.

3. Additional requirements for oxygenate blending in trucks. An oxygenate blender that blends AZRBOB in a motor fuel delivery truck shall conduct a quality assurance sampling and testing program to determine whether the proper type and amount of oxygenate is added to AZRBOB. The program shall be conducted as follows:

a. All samples shall be collected subsequent to the addition of oxygenate and prior to combining the resulting gasoline with any other gasoline;

b. Sampling and testing shall be done at one of the following rates:

i. In the case computer-controlled in-line blending is used, a rate of not less than one sample per each five hundred occasions AZRBOB and oxygenate are loaded into a truck by that oxygenate blender, or one sample every three months, whichever is more frequent; or

ii. In the case computer-controlled in-line blending is not used, a rate of not less than one sample per each one hundred occasions AZRBOB and oxygenate are blended in a truck by that oxygenate blender, or one sample per month, whichever is more frequent.

c. Sampling and testing shall be of the Arizona CBG produced by that oxygenate blender;

d. Samples shall be analyzed for oxygenate type and oxygen content using the testing methodology specified in R3-7-759, including reproducibility; and

e. In the event the testing results for any sample indicate the gasoline does not contain the specified type and amount of oxygenate (within the ranges of the applicable test methods, including reproducibility), the oxygenate blender shall:

i. Immediately stop selling (or where possible, to stop any transferee of the gasoline from selling) the gasoline which was sampled;

ii. Take steps to determine and correct the cause of the noncompliance; and

iii. Increase the rate of sampling and testing to double the required frequency outlined in subsection (E)(3)(b).

f. The increased frequency in subsection (E)(3)(e)(iii) shall continue until the results of ten consecutive samples and tests indicate the gasoline complies with applicable standards, at which time the sampling and testing frequency may revert to the original frequency.

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

a. An oxygenate blender that produces Arizona CBG by blending oxygenate with AZRBOB into a pipeline 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 oxygenate 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 R3-7-759; 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 oxygenate 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 oxygenate, and analyze the samples within 12 hours of collection, until the cause of the noncompliance is determined and corrected; and

iv. Notify the associate director in writing within one business day that the Arizona CBG does not comply with the requirements of this Article.

v. The oxygenate blender shall comply with subsection (E)(4)(b)(iii) until the associate director determines that the corrective action has remedied the noncompliance.

5. Additional requirements for oxygenate blending at motor fuel dispensing sites. An oxygenate blender that blends AZRBOB or Arizona CBG with oxygenates at a motor fuel dispensing site shall conduct a quality assurance sampling and testing program to determine whether the proper type and amount of oxygenate is added as follows:

a. The samples shall be collected subsequent to the addition of oxygenate at least once every six months.

b. Samples shall be analyzed for oxygenate type and oxygen content using the testing methodology in R3-7-759, including reproducibility.

c. In the event testing results for any sample indicate the gasoline does not contain the specified type and amount of oxygenate (within the ranges of the applicable test methods), the oxygenate blender shall:

i. Immediately stop selling the gasoline which was sampled and take steps to determine and correct the cause of the noncompliance; and

ii. Increase the rate of sampling and testing to quarterly, and continue quarterly testing until two consecutive tests indicate the gasoline complies with the applicable standards.

6. Recordkeeping and records retention.

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

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 R3-7-759; and

vi. Results from all testing.

b. The associate director shall deem that Arizona CBG blended by an oxygenate blender and not tested and documented as required by this Section has an oxygen content that does not comply with the standards specified in R3-7-751 unless the oxygenate blender demonstrates to the associate director that the Arizona CBG meets the standards in R3-7-751.

c. Within 15 days of the associate director's written request, an oxygenate blender shall provide any records maintained 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 associate director shall deem that the blend or shipment of Arizona CBG violates R3-7-751 unless the oxygenate blender demonstrates to the associate director that the Arizona CBG meets the standards and limits under R3-7-751.

7. Notification requirement. An oxygenate blender shall notify the associate director by e-mail before transporting Arizona CBG or AZRBOB into the CBG-covered area by a means other than a pipeline.

8. Quality assurance and quality control ("QA/QC") program. An oxygenate blender that conducts sampling and testing under subsection (E) in the oxygenate blender's own laboratory 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 associate director for approval before transporting Arizona CBG. The associate director shall approve a QA/QC program only if the associate 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 R3-7-752(F), except that, for sampling and testing conducted under subsection (E)(3), the minimum number of samples collected and tested by the independent laboratory shall be 10% of the number of samples required to be collected and tested under subsection (E).

9. An oxygenate blender that does not conduct laboratory sampling and testing required under subsection (E) in its own laboratory shall designate an independent laboratory, as described in R3-7-752(F), to conduct the sampling and testing required under subsection (E)(8).

10. Within 24 hours of the associate director's or designee's written request, an oxygenate blender shall submit a duplicate of any sample collected under subsection (E)(8).

F. Downstream AZRBOB or Arizona CBG Recertification. If a registered supplier has specified blending instructions for oxygenate(s) under R3-7-752 and R3-7-755(A), an oxygenate blender may recertify AZRBOB for a different type or amount of oxygenate. The oxygenate blender is exempt from the requirements to register as a registered supplier and certify the finished Arizona CBG under R3-7-751(C) and (D), and R3-7-752, if the recertifying oxygenate blender:

1. Only recertifies AZRBOB to contain a greater amount of a specified oxygenate (e.g. the oxygenate blender adds 15 volume percent ethanol to a batch certified for the addition of 10 volume percent ethanol) or a different oxygenate at an equal or greater amount (e.g. the oxygenate blender adds 16 volume percent isobutanol to a batch certified for 10 volume percent ethanol);

2. Issues product transfer documentation that includes the information for the recertified gasoline contained in R3-7-757, unless the recertified gasoline is blended and dispensed at a motor fuel dispensing site or fleet vehicle fueling facility;

3. Meets the requirements applicable to oxygenate blenders in R3-7-755(E); and

4. Uses oxygenates meeting the requirements of R3-7-708(B) or (C), or ethanol flex fuel that meets the requirements of R3-7-708(E) to blend with AZRBOB or Arizona CBG.

G. Upon request, on a form or in a format prescribed by the associate director, an oxygenate blender shall report to the Division the volume of Arizona CBG recertified, including the types and amounts of oxygenate added. The report shall be submitted to the Division within 15 days of the request.

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Ariz. Admin. Code § R3-7-755

Adopted by final rulemaking at 23 A.A.R. 2280, effective 10/2/2017. Amended by final rulemaking at 24 A.A.R. 2666, effective 11/10/2018. Amended by final rulemaking at 29 A.A.R. 442, effective 3/5/2023.