Senate Engrossed House Bill

 

 

 

State of Arizona

House of Representatives

Fifty-third Legislature

First Regular Session

2017

 

 

HOUSE BILL 2368

 

 

 

AN ACT

 

amending sections 3-3491 and 3-3493, Arizona Revised Statutes; relating to motor fuel.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 3-3491, Arizona Revised Statutes, is amended to read:

START_STATUTE3-3491.  Standards for oxygenated fuel; volatility; exceptions

A.  From and after September 30 through March 31 of each year, in a county with a population of one million two hundred thousand or more persons and in any portion of a county contained in area A, blends of gasoline with ethanol shall not exceed the volatility requirements prescribed by section 3‑3433 and rules adopted by the associate director under that section.  From and after September 30 through March 31 of each year, in area B, blends of gasoline with ethanol may exceed the volatility requirements prescribed by section 3‑3433 and rules adopted by the associate director under that section by up to one pound per square inch if the base fuel meets the requirements of ASTM D4814 and the final gasoline‑ethanol blend contains at least six percent ethanol by volume but does not exceed United States environmental protection agency waivers.  For any other locations and period of time, blends of gasoline with ethanol shall meet the volatility requirements as determined by division rule.

B.  Notwithstanding subsection D of this section, the associate director of the division in consultation with the director of the department of environmental quality shall approve alternate fuel control measures that are submitted by gasoline providers and that the director and the associate director determine will result in motor vehicle carbon monoxide emission reductions that will equal or exceed the reductions that result under subsection D of this section.  In making those determinations, the director of the department of environmental quality and the associate director shall compare the alternative measure against the emission reduction that would be obtained from a fuel with the maximum vapor pressure standard prescribed by subsection D of this section and the minimum oxygen standard prescribed by section 3‑3492 or 3‑3495.  Alternative fuel control measures approved by the associate director of the division in consultation with the director of the department of environmental quality may be used by any gasoline provider unless the approval is rescinded by the associate director of the division at least one hundred eighty days before the beginning of any oxygenate period in the future.  Gasoline providers that choose to use an approved alternate fuel control measure shall annually submit a compliance plan to the associate director not later than sixty days before the start of the oxygenate period.

C.  From and after September 30 through March 31 of each year, all blends of gasoline with alcohol other than ethanol shall satisfy all of the requirements prescribed by section 3‑3433 and rules adopted by the associate director under that section and the provisions of a waiver issued by the United States environmental protection agency pursuant to 42 United States Code section 7545(f).

D.  Notwithstanding subsection A of this section, if the director of the department of environmental quality has previously raised the minimum oxygen content to the maximum percentage of oxygen allowed for each oxygenate as provided by section  3‑3495, the designated air quality planning agency for area B has considered, analyzed and reviewed the costs and benefits of all other reasonable and available control measures in lieu of reducing volatility requirements to nine pounds per square inch and the director of the department of environmental quality finds that area B has failed to maintain the carbon monoxide national ambient air quality standards by violating the standard, beginning with the oxygenate period beginning on the following September 30 and for each oxygenate period thereafter in area B, the volatility requirements described by section 3‑3433, subsection G may be reduced to nine pounds per square inch.  If a violation of the carbon monoxide national ambient air quality standards is recorded after the volatility requirements have been reduced to nine pounds per square inch, the director of the department of environmental quality shall remove the one pound per square inch waiver for gasoline‑ethanol blends.

E.  Gasoline that is supplied or sold by any person and that is intended as a final product for the fueling of motor vehicles within this state shall not contain the following:

1.  Methyl tertiary butyl ether that exceeds 0.3 percent by volume.

2.  A total of more than 0.10 percent oxygen by weight collectively from all of the following oxygenates:

(a)  Diisopropylether (DIPE).

(b)  Ethyl tert-butylether (ETBE).

(c)  Iso‑butanol.

(d)  (c)  Isopropanol.

(e)  (d)  Methanol.

(f)  (e)  N‑butanol.

(g)  (f)  N‑propanol.

(h)  (g)  Sec‑butanol.

(i)  (h)  Tert‑amylmethylether (TAME).

(j)  (i)  Tert‑butanol.

(k)  (j)  Tert‑pentanol (tert‑amylalcohol).

F.  Subsection E of this section does not prohibit the transshipment through this state, including storage incident to that transshipment, of gasoline that contains the oxygenates prescribed by subsection E of this section if both of the following apply:

1.  The gasoline is used or disposed outside this state.

2.  The gasoline is segregated from gasoline that is intended for use inside this state. END_STATUTE

Sec. 2.  Section 3-3493, Arizona Revised Statutes, is amended to read:

START_STATUTE3-3493.  Area A; fuel reformulation; rules

A.   All gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in a county with a population of one million two hundred thousand or more persons and any portion of a county contained in area A, subject to an appropriate waiver granted by the administrator of the United States environmental protection agency pursuant to section 211(c)(4) of the clean air act as defined in section 49‑401.01, shall comply with either of the following fuel reformulation options:

1.  A gasoline that meets standards for federal phase II reformulated gasoline, as provided in 40 Code of Federal Regulations section 80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that the minimum oxygen content standard does not apply.  The gasoline shall also meet the maximum vapor pressure requirements in section 3‑3433, subsections D and F.

2.  California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997, except that the minimum oxygen content standard does not apply.  The gasoline shall also meet the maximum vapor pressure requirements in section 3‑3433, subsections D and F.

B.  For the period beginning November 1 through March 31 of each year, all gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in a county with a population of one million two hundred thousand or more persons and any portion of a county contained in area A, subject to an appropriate waiver granted by the administrator of the United States environmental protection agency pursuant to section 211(c)(4) of the clean air act as defined in section 49‑401.01, shall comply with standards for California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997 and shall meet the maximum vapor pressure requirements in section 3‑3433, subsections D and F.  The fuel described in this subsection shall meet the requirements of section 3‑3492, subsection A, paragraph 1 or 2.

C.  Any registered supplier or oxygenate blender, as defined in division rules, may petition the associate director to request that all registered suppliers or oxygenate blenders be allowed to comply with standards other than the standards prescribed by section 3‑3492, subsection A if the petitioner can demonstrate that ethanol supply shortages are imminent.

D.  The petition shall:

1.  Identify specific supply conditions that will result in a shortage of ethanol.

2.  Identify which oxygenate or oxygenates and the concentration that will be blended into gasoline for sale or use in area A.

3.  Demonstrate that the alternative oxygenate blend comes closest to meeting a three and one‑half percent by weight oxygen content at reasonable cost, unless the registered supplier or oxygenate blender is petitioning to use a gasoline-ethanol blend containing less than ten percent by volume of ethanol.

4.  Specify a time period for compliance with any provision of section 3‑3492, subsection A, not to exceed sixty days.

E.  The associate director shall either grant or deny the petition in writing within seven days of its receipt.  Any decision by the associate director to grant the petition shall be equally applicable to all registered suppliers or oxygenate blenders and shall not be selectively applied to any single registered supplier or oxygenate blender.  The petition may be granted only if the associate director verifies that the basis for requesting the petition is factual.

F.  The associate director may reauthorize a petition if the petitioner can demonstrate that the conditions have continued.  The reauthorization of a petition shall not exceed thirty days.

G.  The associate director of the division shall consult with the director of the department of environmental quality before granting, reauthorizing or denying any such petition.

H.  The director of environmental quality in consultation with the associate director of the division shall adopt by rule:

1.  Requirements to implement subsections A, B, C and D of this section.

2.  Requirements for recordkeeping, reporting and analytical methods for fuel providers to demonstrate compliance with subsections A, B, C and D of this section.

I.  This section does not apply to fuel sold for use at a motor vehicle manufacturer proving ground or at a motor vehicle racing event.END_STATUTE

Sec. 3.  Conditional enactment; notice

A.  Section 3-3493, Arizona Revised Statutes, as amended by this act, does not become effective unless on or before July 1, 2022 the United States environmental protection agency approves the proposed modifications to the gasoline fuel formulation requirements as part of the state implementation plan for air quality.

B.  The director of the department of environmental quality shall notify in writing the director of the Arizona legislative council on or before October 1, 2022 either:

1.  Of the date on which the condition was met.

2.  That the condition was not met.