1. (a) For the purposes of this subarticle, the following definitions apply:

   1. (1) “Alternative gasoline formulation” means a final blend of gasoline that is either a PM alternative gasoline formulation or a test-certified alternative gasoline formulation.
   2. (2) “Averaging compliance option” means, with respect to a specific gasoline property, the compliance option set forth in section 2262.3(c).
   3. (3) “ASTM” means the American Society of Testing and Materials.
   4. (4) “Bulk purchaser-consumer” means a person that purchases or otherwise obtains gasoline in bulk and then dispenses it into the fuel tanks or motor vehicles owned or operated by the person.
   5. (5) “Bulk plant” means an intermediate gasoline distribution facility where delivery of gasoline to and from the facility is solely by truck.

   6. (6) “California gasoline” means:

      1. (A) Gasoline sold, intended for sale, or made available for sale as a motor vehicle fuel in California; and

      2. (B) Gasoline that is produced in California, and that the producer knows or reasonably should know will be offered for sale or supply at an out-of-state terminal or bulk plant at which it will be identified as gasoline produced in California and suitable for sale as a motor vehicle fuel in California.

         (6.5) “California reformulated gasoline blendstock for oxygenate blending, or ‘CARBOB,’” means a petroleum-derived liquid which is intended to be, or is represented as, a product that will constitute California gasoline upon the addition of a specified type and percentage (or range of percentages) of oxygenate to the product after the product has been supplied from the production or import facility at which it was produced or imported.

         (6.6) “CaRFG Phase 2” means California Phase 2 reformulated gasoline.

         (6.7) “CaRFG Phase 3” means California Phase 3 reformulated gasoline.

         (6.8) “CARBOB limits” means, for a final blend of CARBOB, CARBOB specifications for maximum Reid vapor pressure, sulfur content, benzene content, olefin content, aromatic hydrocarbon content, T50 and T90, and maximum and minimum oxygen content, expressed to the number of significant figures identified for each property in the section 2262 standards table, and for any other property identified in a certification order issued by the Executive Officer pursuant to the “California Procedures for Evaluating Alternative Specifications for Gasoline Using Vehicle Emissions Testing,” incorporated by reference in section 2266(a), if applicable.

         (6.9) “Common carrier pipeline” means a pipeline operating under Public Utilities Commission tariffs which offers refined petroleum product transportation services to any qualified shipper.

   7. (7) “Designated alternative limit” means an alternative gasoline specification limit, expressed in the nearest part per million by weight for sulfur content, nearest hundredth percent by volume for benzene content, nearest tenth percent by volume for aromatic hydrocarbon content, nearest tenth percent for olefin content, and nearest degree Fahrenheit for T90 and T50, which is assigned by a producer or importer to a final blend of California gasoline pursuant to section 2264.

      (7.5) “Designated emissions offsetting limit” means an alternative gasoline specification limit, expressed in the nearest hundredth pound per square inch for RVP, nearest tenth percent by weight for oxygen, nearest part per million by weight for sulfur content, nearest hundredth percent by volume for benzene content, nearest tenth percent by volume for aromatic hydrocarbon content, nearest tenth percent for olefin content, and nearest degree Fahrenheit for T90 and T50, which is assigned by a producer or importer that produces gasoline to a final blend of California gasoline pursuant to section 2265.1.

      (7.7) “Drag reducing agent” means a long chain polymer chemical that is used in crude oil, refined products or non-potable water pipelines injected by the pipeline operator in small amounts (parts per million) and is used to reduce the frictional pressure drop along the pipeline's length.

   8. (8) “Ethanol” means ethyl alcohol which meets any additional requirements for ethanol or ethyl alcohol in Health and Safety Code section 43830.

      (8.5) “Emissions associated with permeation” means the incremental increase in emissions because of permeation which is calculated as the difference between the emissions from the producer's or importer's final blend formulation and the flat limits without ethanol. The Phase 3 reformulated gasoline Predictive Model, as described in the “California Procedures for Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Using the California Predictive Model” as incorporated by reference in section 2265(a)(2)(A), shall be used to calculate emissions associated with permeation.

      Emissions are calculated as follows:

      Ozone Forming Potential (tons per day) = 18.4 (tons per day) * (PCE(OFP)/2.39) * 2.80 * percent share of California gasoline sales covered by the AERP, and

      NOx (tons per day) = 427.8 (tons per day) * PCE(NOx) * percent share of California gasoline sales covered by the AERP, where PCE(OFP) and PCE(NOx) = Percent change in emissions, as predicted by the CaRFG3 Predictive Model for Ozone Forming Potential (OFP) and Oxides of Nitrogen (NOx), respectively, as described in the applicable version of the “California Procedures for Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Using the California Predictive Model” as incorporated by reference in section 2265(a)(2)(A).

   9. (9) “Executive Officer” means the executive officer of the Air Resources Board, or his or her designee.

   10. (10) “Final blend” means a distinct quantity of gasoline or CARBOB which is introduced into commerce in California without further alteration which would tend to affect a regulated gasoline specification of the fuel.

       (10.5) “Final blend credit” means the credit from a final blend of gasoline that may be used to offset a producer's or importer's final blend deficit. The amount of final blend credit shall be calculated as follows:

       Final Blend Credit = (PCE - PCE_t) * V_c, where

       PCE = Percent change in emissions values as reported by the producer or importer pursuant to section 2265(a)(2)(C).

       PCE_t = Percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, for the PM alternative specifications that the producer or importer was intending to produce and which would have met the criteria for approval in the applicable Predictive Model Procedures but for the elevated sulfur content.

       V_c = volume, in barrels, of the final blend that has a final blend credit.

       (10.7) “Final blend deficit” means the deficit from a final blend of gasoline that a producer or importer must offset. The amount of final blend deficit shall be calculated as follows:

       Final Blend Deficit = (PCE - 0.04) * V_d, where

       PCE = Percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, which are greater than 0.04%. If the percent change in emissions values, as they pertain to the PM emissions offsetting compliance option, are all less than 0.04%, there is no final blend deficit.

       V_d = volume, in barrels, of the final blend that has a final blend deficit.

   11. (11) “Final distribution facility” means the stationary gasoline transfer point from which gasoline or CARBOB is transferred into the cargo tank truck, pipeline, or other delivery vessel from which the gasoline will be delivered to the facility at which the gasoline will be dispensed into motor vehicles; except that a cargo tank truck is the final distribution facility where the cargo tank truck is used to transport CARBOB and gasoline and carries written documentation demonstrating that the designated type and amount or range of amounts of oxygenates designated by the producer or importer will be or have been blended directly into the cargo tank truck prior to delivery of the resulting gasoline from the cargo tank truck to the facility at which the gasoline will be dispensed into motor vehicles.
   12. (12) “Flat limit compliance option” means, with respect to a specific gasoline property, the compliance option set forth in section 2262.3(b), section 2262.4(b)(1), or section 2262.5(c).
   13. (13) “Further process” means to perform any activity on gasoline, including distillation, treating with hydrogen, or blending, for the purpose of bringing the gasoline into compliance with the standards in this subarticle.
   14. (14) “Gasoline” means any fuel that is commonly or commercially known, sold or represented as gasoline, including any volatile mixture of predominantly liquid hydrocarbons that is sold or represented as suitable for use in an automotive spark-ignition engine.
   15. (15) “Imported California gasoline” means California gasoline which is transported into California and does not meet the definition in section 2260(a)(6)(B).
   16. (16) “Import facility” means the storage tank to which imported California gasoline or CARBOB is first delivered in California, including, in the case of gasoline or CARBOB imported by cargo tank and delivered directly to a facility for dispensing gasoline into motor vehicles, the cargo tank in which the gasoline or CARBOB is imported.
   17. (17) “Importer” means any person who first accepts delivery in California of imported California gasoline.
   18. (18) “Motor vehicle” has the same meaning as defined in section 415 of the Vehicle Code.

   19. (19) “Oxygenate” is any oxygen-containing, ashless, organic compound, such as an alcohol or ether, which, when added to gasoline increases the amount of oxygen in gasoline.

       (19.3) “Oxygenate blending facility” means any facility (including a truck) at which oxygenate is added to gasoline or blendstock, and at which the quality or quantity of gasoline is not altered in any other manner except for the addition of deposit control additives or other similar additives.

       (19.6) “Oxygenate blender” means any person who owns, leases, operates, controls, or supervises an oxygenate blending facility, or who owns or controls the blendstock or gasoline used or the gasoline produced at an oxygenate blending facility.

       (19.7) “Percent change in emissions values, as they pertain to the PM emissions offsetting compliance option” means values calculated, each for oxides of nitrogen, total ozone forming potential, and potency-weighted toxics, from the Phase 3 Predictive Model using the designated emissions offsetting limits for the candidate fuel and the flat limits in section 2262 for the reference fuel, as described in the “California Procedures for Evaluating Alternative Specifications for Phase 3 Reformulated Gasoline Using the California Predictive Model,” the applicable version as described in section 2265(a)(2)(A), which is incorporated by reference in sections 2265(a)(2)(A)(2)-(7).

       (19.8) “Pipeline tender” means a specific volume of product having a unique name or designation which is offered to a pipeline for transportation.

   20. (20) “PM alternative gasoline formulation” means a final blend of gasoline that is subject to a set of PM alternative specifications assigned pursuant to section 2265(a).
   21. (21) “PM alternative specifications” means the specifications for the following gasoline properties, as determined in accordance with section 2263 and expressed to the number of significant figures identified for each property in the section 2262 standards table: maximum Reid vapor pressure, maximum sulfur content, maximum benzene content, maximum olefin content, minimum and maximum oxygen content, maximum T50, maximum T90, and maximum aromatic hydrocarbon content.
   22. (22) “PM averaging compliance option” means, with reference to a specific gasoline property, the compliance option for PM alternative gasoline formulations under which final blends of gasoline are assigned designated alternative limits in accordance with section 2264.

   23. (23) “PM averaging limit” means a PM alternative specification that is subject to the PM averaging compliance option.

       (23.5) “PM emissions offsetting compliance option” means, with respect to a specific gasoline property, the compliance option set forth in section 2265.1(a).

       (23.7) “PM emissions offsetting formulation” means a final blend of gasoline that is subject to a set of designated emissions offsetting limits assigned pursuant to section 2265.1(a).

   24. (24) “PM flat limit” means a PM alternative specification that is subject to the PM flat limit compliance option.

   25. (25) “PM flat limit compliance option” means, with reference to a specific gasoline property, the compliance option under which each gallon of gasoline must meet the specification for the property contained in the PM alternative specifications.

       1. (B) Where a person supplies gasoline to a refiner who agrees in writing to further process the gasoline at the refiner's refinery and to be treated as the producer of the gasoline, the refiner shall be deemed for all purposes under this article to be the producer of the gasoline.

       2. (C) Where an oxygenate blender blends oxygenates into CARBOB which has already been supplied from a gasoline production facility or import facility, and does not alter the quality or quantity of the CARBOB or the resulting gasoline in any other manner except for the addition of deposit control additives or other similar additives, the oxygenate blender is not producing any portion of the resulting gasoline, and the producer or importer of the CARBOB is treated as the producer or importer of the full volume of the resulting gasoline.

          (26.5) “Produced at a California production facility with the use of any oxygenate other than ethanol or MTBE” means produced at a California production facility in part by either (i) adding at the California production facility any oxygenate, other than ethanol or MTBE, in neat form to the California gasoline or to a blending component used in the gasoline; or (ii) using a blending component that contained greater than 0.10 weight percent total oxygen from oxygenates other than ethanol or MTBE when it was supplied to the California production facility.

       (26)(A) “Produce” means, except as otherwise provided in section (a)(26)(B) or (a)(26)(C), to convert liquid compounds which are not gasoline into gasoline or CARBOB. When a person blends volumes of blendstocks which are not gasoline with volumes of gasoline acquired from another person, and the resulting blend is gasoline, the person conducting such blending has produced only the portion of the blend which was not previously gasoline. When a person blends gasoline with other volumes of gasoline, without the addition of blendstocks which are not gasoline, the person does not produce gasoline.

   26. (27) “Producer” means any person who owns, leases, operates, controls or supervises a California production facility.

   27. (28) “Production facility” means a facility in California at which gasoline or CARBOB is produced. Upon request of a producer, the executive officer may designate, as part of the producer's production facility, a physically separate bulk storage facility which (A) is owned or leased by the producer, and (B) is operated by or at the direction of the producer, and (C) is not used to store or distribute gasoline or CARBOB that is not supplied from the production facility.

       (28.5) “Qualifying small refiner” means a small refiner whose California refinery was used in 1998 and 1999 to produce and supply California gasoline meeting the CaRFG Phase 2 standards.

   28. (29) “Qualifying volume” means, for each small refiner, a volume of gasoline determined in accordance with the following four steps, provided that the qualifying volume for Kern Oil & Refining Co.'s Bakersfield refinery shall not exceed 2,920,000 barrels per year (equal to 8000 barrels per day; 2,928,000 barrels per year in leap years):

       1. (A) First, the barrel per calendar day “operating crude oil capacity” of the small refiner's refinery in March 1999 is identified, based on data which are reported to the executive officer from the California Energy Commission (CEC) and are derived from “Monthly Refinery Reports” (EIA 810) submitted to the CEC no later than June 30, 1999. If the CEC is unable to derive such data from the Monthly Refinery Reports for a particular small refiner, the executive officer shall determine the small refiner's operating crude oil capacity in March 1999 based on other publicly available and generally recognized sources.
       2. (B) Second, this operating crude oil capacity is multiplied by 0.9794, representing the highest monthly refinery operating utilization rate in the California refining industry for January 1998 through March 1999, as compiled in the “Monthly Refinery Capacity Data Statewide” report of the CEC.
       3. (C) Third, the resulting crude throughput volume is multiplied by the refinery's highest monthly ratio of gasoline produced to crude oil distilled in January 1998 through March 1999, based on data derived by the CEC from the Monthly Refinery Reports submitted to the CEC no later than June 30, 1999.

       4. (D) Fourth, the resulting gasoline volume is multiplied by 365 to identify an annualized value. In the case of leap years, the gasoline volume is multiplied by 366 to identify the annualized value.

          (29.5) “Racing vehicle” means a vehicle that:

       5. (A) Is exclusively operated in conjunction with sanctioned racing events;
       6. (B) Exhibits racing features and modifications such that it is incapable of safe and practical street or highway use;
       7. (C) Is not licensed by the State of California Department of Motor Vehicles for operation on public streets or highways; and
       8. (D) Is never operated on public streets or highways.
   29. (30) “Refiner” means any person who owns, leases, operates, controls or supervises a refinery.
   30. (31) “Refinery” means a facility that produces liquid fuels by distilling petroleum.

   31. (32) “Small refiner” means any refiner who owns or operates a refinery in California that:

       1. (A) Has and at all times had since January 1, 1978, a crude oil capacity of not more than 55,000 barrels per stream day;
       2. (B) Has not been at any time since September 1, 1988, owned or controlled by any refiner that at the same time owned or controlled refineries in California with a total combined crude oil capacity of more than 55,000 barrels per stream day; and

       3. (C) Has not been at any time since September 1, 1988, owned or controlled by any refiner that at the same time owned or controlled refineries in the United States with a total combined crude oil capacity of more than 137,500 barrels per stream day.

          (32.5) “South Coast Area” means the counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura.

   32. (33) “Stream day” means 24 consecutive hours of actual operation of a refinery.
   33. (34) “Supply” means to provide or transfer a product to a physically separate facility, vehicle, or transportation system.
   34. (35) “TC limits” means the set of specifications identified in a certification issued by the Executive Officer pursuant to the “California Procedures for Evaluating Alternative Specifications for Gasoline Using Vehicle Emissions Testing,” incorporated by reference in section 2266(a).
   35. (36) “Test-certified alternative gasoline formulation” means a final blend of gasoline that is subject to a set of specifications identified in a certification issued by the Executive Officer pursuant to the “California Procedures for Evaluating Alternative Specifications for Gasoline Using Vehicle Emissions Testing,” incorporated by reference in section 2266(a).
   36. (37) “Third party” means any person who applies for, or has a, third party AERP or a third party EERP.
   37. (38) “Third party AERP” means an AERP whose application was submitted by a third party and approved by the Executive Officer.
   38. (39) “Third party EERP” means an EERP whose application was submitted by a third party and approved by the Executive Officer.

   (0.5) “Air basin” has the same meaning as defined in section 39012 of the Health and Safety Code.

   (0.7) “Alternative emission reduction plan” means with respect to a specific gasoline property, the compliance option set forth in section 2265.5.

Note: Authority cited: Sections 39600, 39601, 43013, 43013.1, 43018 and 43101, Health and Safety Code; and Western Oil and Gas Ass'n. v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal. Rptr. 249 (1975). Reference: Sections 39000, 39001, 39002, 39003, 39010, 39048, 39500, 39515, 39516, 41511, 43000, 43013, 43013.1, 43016, 43018 and 43101, Health and Safety Code; and Western Oil and Gas Ass'n. v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal. Rptr. 249 (1975).

History

1. New subarticle 2 and section filed 11-16-92; operative 12-16-92 (Register 92, No. 47).

2. Amendment filed 6-2-95; operative 7-3-95 (Register 95, No. 22).

3. New subsection (a)(6.5), amendment of subsections (a)(10)-(11) and (a)(16), new subsections (a)(19.3) and (a)19.6), and amendment of subsections (a)(26(A), (a)(26)(C) and (a)(28) filed 2-28-96; operative 2-28-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 9).

4. New subsections (a)(29.5) and (a)(32.5) filed 9-21-98; operative 9-21-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 39).

5. Amendment of section and Note filed 8-3-2000; operative 9-2-2000 (Register 2000, No. 31).

6. Amendment of subsection (a)(1), new subsection (a)(6.8), amendment of subsections (a)(20)-(21) and new subsections (a)(35)-(36) filed 8-20-2001; operative 8-20-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 34).

7. New subsection (a)(26.5) filed 5-1-2003; operative 5-1-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 18).

8. Amendment of subsection (a)(16) filed 3-10-2005; operative 4-9-2005 (Register 2005, No. 10).

9. New subsections (a)(0.5), (a)(0.7), (a)(6.9), (a)(7.5), (a)(8.5), (a)(10.5), (a)(10.7), (a)(19.7), (a)(19.8), (a)(23.5), (a)(23.7), (a)(37), (a)(38) and (a)(39) filed 8-29-2008; operative 8-29-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 35).

10. Amendment of subsection (a)(6.5), new subsection (a)(7.7), amendment of subsections (a)(8.5), (a)(19.7) and (a)(29.5) and amendment of Note filed 10-9-2012; operative 10-9-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 41).