(a) Quarterly compliance periods. The quarterly compliance periods are shown in the following table: ------------------------------------------------------------------------
Beginning date of quarterly compliance Ending date of quarterly
period compliance period------------------------------------------------------------------------June 1, 2006.............................. September 30, 2006.October 1, 2006........................... December 31, 2006.January 1, 2007........................... March 31, 2007.April 1, 2007............................. May 31, 2007.June 1, 2007.............................. September 30, 2007.October 1, 2007........................... December 31, 2007.January 1, 2008........................... March 31, 2008.April 1, 2008............................. June 30, 2008.July 1, 2008.............................. September 30, 2008.October 1, 2008........................... December 31, 2008.January 1, 2009........................... March 31, 2009.April 1, 2009............................. June 30, 2009.July 1, 2009.............................. September 30, 2009.October 1, 2009........................... December 31, 2009.January 1, 2010........................... March 31, 2010.April 1, 2010............................. May 31, 2010.June 1, 2010.............................. September 30, 2010.------------------------------------------------------------------------
(1) The annual compliance periods are shown in the following table: ------------------------------------------------------------------------
Ending date of annualBeginning date of annual compliance period compliance period------------------------------------------------------------------------June 1, 2006.............................. May 31, 2007.June 1, 2007.............................. June 30, 2008.July 1, 2008.............................. June 30, 2009.July 1, 2009.............................. May 31, 2010.June 1, 2010.............................. June 30, 2011.July 1, 2011.............................. May 31, 2012.June 1, 2012.............................. June 30, 2013.July 1, 2013.............................. May 31, 2014.------------------------------------------------------------------------
(2) [Reserved]
(b) Volume balance for motor vehicle diesel fuel. (1) A facility's motor vehicle diesel fuel volume balance is calculated as follows: MVB = MVI-MVO-MVINVCHG Where: MVB = the volume balance for motor vehicle diesel fuel for the
compliance period.MVI = the total volume of all batches of fuel designated as
motor vehicle diesel fuel received for the compliance period.
Any motor vehicle diesel fuel produced by or imported into the
facility shall also be included in this volume.MVO = the total volume of all batches of fuel designated as
motor vehicle diesel fuel delivered for the compliance period.MVINVCHG = the total volume of 15 ppm sulfur and 500 ppm
sulfur motor vehicle diesel fuel in inventory at the end of
the compliance period minus the total volume of 15 ppm sulfur
and 500 ppm sulfur motor vehicle diesel fuel in inventory at
the beginning of the compliance period, including accounting
for any corrections in inventory due to volume swell or
shrinkage, difference in measurement calibration between
receiving and delivering meters, and similar matters, where
corrections that increase inventory are defined as positive.
(2) Calculate the motor vehicle diesel fuel received, as follows: MVI = MV15I + MV500I Where: MV15I = the total volume of all the batches of fuel
designated as 15 ppm sulfur motor vehicle diesel fuel received
for the compliance period. Any motor vehicle diesel fuel
produced by or imported into the facility shall also be
included in this volume. Any untaxed and undyed California
diesel fuel received by a terminal pursuant to Sec. 80.617
(b)(1) shall be included in this volume.MV500I = the total volume of all batches of fuel designated
(1) shall be included in this volume.MV500I = the total volume of all batches of fuel designated
as 500 ppm sulfur motor vehicle diesel fuel received for the
compliance period. Any motor vehicle diesel fuel produced by
or imported into the facility shall also be included in this
volume.
(3) Calculate the motor vehicle diesel fuel delivered, as follows: MVO = MV15O + MV500O Where: MV15O = the total volume of all batches of fuel designated as
15 ppm sulfur motor vehicle diesel fuel and delivered during
the compliance period.MV500O = the total volume of all batches of fuel designated
as 500 ppm sulfur motor vehicle diesel fuel and delivered
during the compliance period.
(4) The neutral or positive volume balance required for purposes of compliance with Sec. 80.598(b)(9)(vi) and (b)(9)(vii)(A) means that the net balance of motor vehicle diesel fuel in inventory as of the end of the last day of the compliance period (MVNBE) must be greater than or equal to zero. MVNBE is defined by the following equation: MVNBE = MV15BINV + MV500BINV + [Sigma]MVB Where: MV15BINV = the total volume of fuel designated as 15 ppm
sulfur motor vehicle diesel fuel in inventory at the beginning
of the program on June 1, 2006.MV500BINV = the total volume of fuel designated as 500 ppm
sulfur motor vehicle diesel fuel in inventory at the beginning
of the program on June 1, 2006. Any 2D 500 ppm sulfur MVNRLM
in inventory at the beginning of the program on June 1, 2006
may be designated as motor vehicle diesel fuel.[Sigma]MVB = the sum of the balances for motor vehicle diesel fuel for
the current compliance period and previous compliance periods.
(5) The volume balance required for purposes of compliance with Sec. 80.598(b)(9)(vii)(B) means: -MVB <=0.02 x MVI
(6) Calculations in paragraphs (b)(4) and (b)(5) of this section may be combined for all facilities wholly owned by an entity.
(7) For purposes of calculations in paragraphs (b)(1) through (b)(5) of this section, for batches of fuel received from facilities without an EPA facility ID, any batches of fuel received on which taxes have been paid pursuant to IRS code (26 CFR part 48) shall be deemed to be MV15I or MV500I as appropriate for purposes of this paragraph.
(c) Volume balance for high sulfur NRLM diesel fuel and heating oil. (1) A facility's high sulfur NRLM balance is calculated as follows: HSNRLMB = HSNRLMII - HSNRLMO - HSNRLMINVCHG Where: HSNRLMB = the balance for high sulfur NRLM diesel fuel for the
compliance period.HSNRLMI = the total volume of all batches of fuel designated
as high sulfur NRLM received diesel fuel for the compliance
period. Any high sulfur NRLM produced by or imported into the
facility shall also be included in this volume.HSNRLMO = the total volume of all batches of fuel designated
as high sulfur NRLM diesel fuel delivered for the compliance
period.HSNRLMINVCHG = the volume of high sulfur NRLM diesel fuel in
inventory at the end of the compliance period minus the volume
of high sulfur NRLM diesel fuel in inventory at the beginning
of the compliance period, including accounting for any
corrections in inventory due to volume swell or shrinkage,
difference in measurement calibration between receiving and
delivering meters, and similar matters, where corrections that
increase inventory are defined as positive.
(2) The volume balance required for purposes of compliance with Sec. 80.598(b)(9)(viii)(A) means one of the following: (i) HSNRLMB =0 (ii) (HSNRLMO + HSNRLMINVCHG) / HSNRLMI <=(HOO + HOINVCHG) / HOI
(3) A facility's heating oil volume balance is calculated as follows: HOB = HOI - HOO - HOINVCHG Where: HOB = the balance for heating oil for the compliance period.HOI = the total volume of all batches of fuel designated as
heating oil received for the compliance period. Any heating
oil produced by or imported into the facility shall also be
included in this volume.HOO = the total volume of all batches of fuel designated as
heating oil delivered to all downstream entities for the
compliance period.HOINVCHG = the volume of heating oil in inventory at the end
of the compliance period minus the volume of heating oil in
inventory at the beginning of the compliance period, including
accounting for any corrections in inventory due to volume
swell or shrinkage, difference in measurement calibration
between receiving and delivering meters, and similar matters,
where corrections that increase inventory are defined as
positive.
(4) The volume balance required for purposes of compliance with Sec. 80.598(b)(9)(viii)(B) means: HOB <=0
(5) Calculations in paragraphs (c)(3) and (c)(4) of this section may be combined for all facilities wholly owned by an entity.
(6) For purposes of calculations in paragraphs (c)(1) through (c)(4) of this section, for batches of fuel received from facilities without an EPA facility ID, any batches of fuel received marked pursuant to Sec. 80.510(d) or (f) shall be deemed to be HOI, any batches of fuel received marked pursuant to Sec. 80.510(e) shall be deemed to be HOI or LM500I, any diesel fuel with less than or equal to 500 ppm sulfur that is dyed pursuant to Sec. 80.520(b) and not marked pursuant to Sec. 80.510(d) or (f) shall be deemed to be NRLM diesel fuel, and any diesel fuel with less than or equal to 500 ppm sulfur which is dyed pursuant to Sec. 80.520(b) and not marked pursuant to Sec. 80.510(e) shall be deemed to be NR diesel fuel.
(d) Volume balance for NR diesel fuel. (1) A facility's 500 ppm nonroad diesel fuel balance is calculated as follows: NR500B = NR500I - NR500O - NR500INVCHG Where: NR500B = the balance for 500 ppm sulfur NR diesel fuel for the
compliance period.NR500I = the total volume of all batches of fuel designated
as 500 ppm sulfur NR diesel fuel received for the compliance
period. Any 500 ppm sulfur NR diesel fuel produced by or
imported into the facility shall also be included in this
volume.NR500O = the total volume of all batches of fuel designated
as 500 ppm sulfur NR diesel fuel delivered for the compliance
period.NR500INVCHG = the volume of 500 ppm sulfur NR diesel fuel in
inventory at the end of the compliance period minus the volume
of 500 ppm sulfur NR diesel fuel in inventory at the beginning
of the compliance period, and accounting for any corrections
in inventory due to volume swell or shrinkage, difference in
measurement calibration between receiving and delivering
meters, and similar matters, where corrections that increase
inventory are defined as positive.
(2) The volume balance required for purposes of compliance with Sec. 80.598(b)(9)(ix) means one of the following: (i) NR500B =0 (ii) (NR500O + NR500INVCHG) / NR500I <=(LM500O + LM500INVCHG) / LM500I. Where: LM500I = the total volume of all batches of fuel designated
as 500 ppm sulfur LM diesel fuel received for the compliance
period. Any 500 ppm sulfur LM diesel fuel produced by or
imported into the facility shall also be included in this
volume.LM500O = the total volume of all batches of fuel designated
as 500 ppm sulfur LM diesel fuel delivered for the compliance
period.LM500INVCHG = the volume of 500 ppm sulfur LM diesel fuel in
inventory at the end of the compliance period minus the volume
of 500 ppm sulfur LM diesel fuel in inventory at the beginning
of the compliance period, and accounting for any corrections
in inventory due to volume swell or shrinkage, difference in
measurement calibration between receiving and delivering
meters, and similar matters, where corrections that increase
inventory are defined as positive.
(e) Anti-downgrading for motor vehicle diesel fuel. (1) A facility must satisfy the provisions in either paragraphs (e)(2), (e)(3), (e)(4), or (e)(5) of this section to comply with the anti-downgrading limitation of paragraph Sec. 80.527(c)(1), for the annual compliance periods defined in Sec. 80.527(c)(3).
(1) A facility must satisfy the provisions in either paragraphs (e)(2), (e)(3), (e)(4), or (e)(5) of this section to comply with the anti-downgrading limitation of paragraph Sec. 80.527(c)(1), for the annual compliance periods defined in Sec. 80.527(c)(3).
(2) The volume of 2D 15 ppm sulfur motor vehicle delivered must meet the following requirement: (2MV15O + 2MV15INVCHG) =0.8 * 2MV15I Where: 2MV15O = the total volume of fuel delivered during the
compliance period that is designated as 2D 15 ppm sulfur
motor vehicle diesel fuel.2MV15INVCHG = the total volume of diesel fuel designated as
2D 15 ppm sulfur motor vehicle diesel fuel in inventory at
the end of the compliance period minus the total volume of 2D
15 ppm sulfur motor vehicle diesel fuel in inventory at the
beginning of the compliance period, and accounting for any
corrections in inventory due to volume swell or shrinkage,
difference in measurement calibration between receiving and
delivering meters, and similar matters, where corrections that
increase inventory are defined as positive.2MV15I = the total volume of fuel received during the
compliance period that is designated as 2D 15 ppm sulfur
motor vehicle diesel fuel. Any untaxed and undyed California
diesel fuel received by a terminal pursuant to
Sec. 80.617(b)(1) shall be included in this volume.
(3) The volume of 2D 500 ppm sulfur motor vehicle diesel fuel delivered must meet the following requirement: 2MV500O <=2MV500I - 2MV500INVCHG + 0.2 * 2MV15I Where: 2MV500O = the total volume of fuel delivered during the
compliance period that is
designated as 2D 500 ppm sulfur motor vehicle diesel fuel.2MV500I = the total volume of fuel received during the
compliance period that is designated as 2D 500 ppm sulfur
motor vehicle diesel fuel.2MV500INVCHG = the total volume of diesel fuel designated as
2D 500 ppm sulfur motor vehicle diesel fuel in inventory at
the end of the compliance period minus the total volume of 2D
500 ppm sulfur motor vehicle diesel fuel in inventory at the
beginning of the compliance period, and accounting for any
corrections in inventory due to volume swell or shrinkage,
difference in measurement calibration between receiving and
delivering meters, and similar matters, where corrections that
increase inventory are defined as positive.
(4) The following calculation may be used to account for wintertime blending of kerosene and the blending of non-petroleum diesel: 2MV500O<=2MV500I + 2MV500P - 2MV500INVCHG + 0.2 * (1MV15I + 2MV15I + NPMV15I) Where: 1MV15I = the total volume of fuel received during the
compliance period that is designated as 1D 15 ppm sulfur
motor vehicle diesel fuel. Any motor vehicle diesel fuel
produced by or imported into the facility shall not be
included in this volume.NPMV15I = the total volume of fuel received during the
compliance period that is designated as NP15 ppm sulfur motor
vehicle diesel fuel. Any motor vehicle diesel fuel produced by
or imported into the facility shall not be included in this
volume.1MV15P = the total volume of fuel produced by or imported
into the facility during the compliance period that was
designated as 1D 15 ppm sulfur motor vehicle diesel fuel when
it was delivered.
(5) The following calculation may be used to account for wintertime blending of kerosene, the blending of non-petroleum diesel, and/or changes in the facility's volume balance of motor vehicle diesel fuel resulting from a temporary shift of 500 ppm sulfur NRLM diesel fuel to 500 ppm sulfur motor vehicle diesel fuel during the compliance period: 2MV500O <2MV500I + 2MV500P - 2MV500INVCHG + 0.2 * 2MV15I + 1MV15B + 2NRLM500S + NPB Where: 1MV15B = the total volume of fuel received during the
compliance period that is designated as 1D 15 ppm sulfur
motor vehicle diesel fuel and that the facility can
demonstrate they blended into 2D 500 ppm sulfur motor vehicle
diesel fuel. Any motor vehicle diesel fuel produced by or
imported into the facility shall not be included in this
volume.2MV500P = the total volume of fuel produced by or imported
into the facility during the compliance period that was
designated as 2MV 500 ppm sulfur motor vehicle diesel fuel
when it was delivered.2NRLM500S = the total volume of 2D 500 ppm sulfur NRLM
diesel fuel that the facility can demonstrate they
redesignated as 2D 500 ppm sulfur motor vehicle diesel fuel
during the compliance period.NPB = the total volume of fuel received during the compliance
period that is designated as NP15 ppm sulfur motor vehicle
diesel fuel, and/or NP500 ppm sulfur motor vehicle diesel fuel
which the facility can demonstrate they blended into 2D 500
ppm sulfur motor vehicle diesel fuel.
(f) Inventory adjustments. Adjustments to inventory under this section must be based on normal business practices for the industry, appropriate physical plant operations and use of good engineering judgments.
(g) Unique circumstances. EPA may, at its discretion, grant a fuel distributor's application to modify its inventory of motor vehicle diesel fuel, NRLM diesel fuel, or heating oil for a given compliance period. EPA may grant an application to address unique circumstances, where appropriate, such as the start up of a new pipeline or pipeline segment.
(h) Additional requirements for aggregated facilities consisting of a refinery and a truck loading terminal. In addition to the volume balance requirements required by paragraphs (a) through (g) of this section, aggregated facilities consisting of a refinery and a truck loading terminal are responsible for balance calculations on the volume difference between the total volume of diesel fuel sold over the truck loading terminal rack and the production volume from the batch reports. Mathematically, the difference will be the volume of fuel received from external sources and passed through to another facility. [69 FR 39194, June 29, 2004, as amended at 70 FR 40896, July 15, 2005; 70 FR 70511, Nov. 22, 2005; 71 FR 25720, May 1, 2006; 75 FR 22974, Apr. 30, 2010]