Compliance Surveys

R3-7-760. Compliance Surveys A. A registered supplier shall conduct surveys for oxygenate blender, or one sample every three months, whichblending during the winter and a compliance survey during the ever is more frequent; or oxy- summer. The winter survey shall be conducted following the c. In the case of AZRBOB which is blended with requirements in subsection (A), or using an independent third- genate in gasoline delivery trucks without the use of party surveyor following the requirements in subsections (B) computer-controlled in-line blending equipment, a bar- and (D). The summer survey shall be conducted following the rate of not less than one sample for each 50,000 requirements in subsection (C), or using an independent third- rels of AZRBOB produced or imported by that party surveyor following the requirements in subsections (C) refiner or importer which is blended, or one sample and (D). Surveys for oxygenate blending during the winter: A per month, whichever is more frequent. registered supplier supplying AZRBOB from a production or 3. In the event that the test results for any sample indicate import facility shall conduct an oxygenate blending survey the gasoline does not comply with applicable standards, program to be carried out at the facilities of each oxygenate including reproducibility, the refiner or importer shall: blender who blends any AZRBOB produced or imported by a. Immediately take steps to stop the sale of the gasothe refiner or importer with any oxygenate, to determine line that was sampled; deter- whether the Arizona CBG, which has been produced through b. Take steps which are reasonably calculated to blending, complies with the applicable standards using the mine and correct the cause of the noncompliance; methodology specified in R3-7-759. The sampling and testing c. Increase the rate of sampling and testing to double program shall be conducted as follows: the required frequency outlined in subsection (A)(2); 1. Samples shall be collected in accordance with ASTM and D4057 and be analyzed for oxygenates. All samples shall d. Continue the increased frequency of sampling and be collected subsequent to the addition of oxygenate and testing until the results of ten consecutive samples prior to combining the resulting gasoline with any other and tests indicate the gasoline complies with appligasoline. cable standards, at which time the sampling and test- 2. Sampling and testing shall be at one of the following ing may be conducted at the original frequency. rates, regardless of the amount of oxygenate added: 4. This survey program conducted by a registered supplier a. In the case of AZRBOB which is blended with oxy- shall be conducted in addition to any survey requirements sup- genate in a gasoline storage tank, a rate of not less carried out under this subsection by other registered than one sample for every 400,000 barrels of AZR- pliers. BOB produced or imported by that refiner or B. Instead of conducting the oxygenate blending survey program indepen- importer that is blended by that oxygenate blender, in subsection (A), the registered supplier may use an or one sample every month, whichever is more fre- dent third-party surveyor to conduct a winter oxygenate blendquent; ing survey that meets the following requirements: oxy- b. In the case of AZRBOB which is blended with 1. Designed and conducted by an independent third-party genate in gasoline delivery trucks through the use of surveyor that meets the requirements of subsection computer-controlled in-line blending equipment, a (D)(2)(a); rate of not less than one sample for every 200,000 2. Conducted November 1 through March 31 on all samples barrels of AZRBOB produced or imported by that collected under the program design approved by the assorefiner or importer that is blended by that oxygenate ciate director under subsection (D); Supp. 23-1 March 31, 2023 Arizona CHAPTER 7. DEPARTMENT OF AGRICULTURE 3. Involves sampling and testing that is representative of all Arizona CBG dispensed in the CBG-covered area, including a representative number of E15 samples; 4. Analyzes each sample for oxygenate according to the methodologies specified in R3-7-759; 5. Collects samples of gasoline produced at blender pumps using “Method #1” of the E15 Sampling Procedure specified in Handbook 158; gas- 6. Verifies compliance of E15 labeling requirements at oline retail outlets that offer E15 for sale; and 7. Includes a sufficient amount of samples to ensure that the confi- average levels of oxygen is determined at a 95% dence level with an error of 0.1% or less for oxygen by weight. C. Summer Compliance Surveys. A registered supplier shall ensure that compliance surveys are conducted in accordance with a compliance survey program plan approved by the associate director. A registered supplier may use an independent third-party surveyor as outlined in subsection (D) to conduct a summer compliance survey. The associate director shall approve a compliance survey program plan if the plan: 1. Consists of at least four VOC and NOx surveys conducted at least once per month between June 1 and September 30 of each year; 2. Consists of all samples that are collected under an approved survey program plan during any consecutive seven days; 3. Is representative of all Arizona CBG being dispensed in the CBG-covered area including a representative number of E15 samples; 4. Includes enough samples to ensure that the average levels of oxygen, vapor pressure, aromatic hydrocarbons, oleconfi- fins, T50, T90, and sulfur are determined at a 95% dence level with an error of: a. 0.1% or less for oxygen by weight; b. 0.1 psi for vapor pressure; c. 0.5% for aromatic hydrocarbons by volume; d. 0.5% for olefins by volume; e. 5º F for T50 and T90; and f. 10 ppm for sulfur. 5. Analyzes each sample included in the compliance survey for oxygenate type and content, olefins, sulfur, aromatic hydrocarbons, E200, E300, and vapor pressure according to the test methods in R3-7-759 (vapor pressure is Sep- required to be analyzed only from June 1 through tember 30); and 6. If a laboratory analyzes the compliance survey samples, the laboratory participates in a correlation program approved by the associate director to ensure the validity of analysis results. 7. For each compliance survey sample, determine the VOC and NOx emissions reduction percentage based upon the tested fuel properties for that sample using the methodology for calculating VOC and NOx emissions reductions under the Federal Complex Model. D. An independent third-party surveyor may conduct the winter oxygenate blending survey outlined in subsection (B) and the summer compliance survey outlined in subsection (C), if the survey program: 1. Is approved by the associate director; 2. Is designed and conducted by a third-party surveyor that is independent of the registered supplier. To be considered independent: March 31, 2023 Supp. Administrative Code 3 A.A.C. 7 AGRICULTURE - WEIGHTS AND MEASURES SERVICES DIVISION a. The surveyor shall not be an employee of any registered supplier; b. The surveyor shall not have an obligation to, or interest in, any registered supplier; and c. The registered supplier shall not have an obligation to or interest in the surveyor. 3. Requires that the surveyor not provide advance notice, except as provided in subsection (D)(8), of the date or location of any survey sampling; 4. Provides a duplicate of any sample taken during the survey to the associate director, upon request of the associate sur- director within 30 days following submission of the vey report required under subsection (D)(7), including: a. Information regarding the name and address of the facility from where the sample was collected, and b. The date of collection; 5. Requires that the surveyor permit a Division official to monitor sample collection, transportation, storage, and analysis at any time; 6. Requires the laboratory to participate in a correlation program approved by the associate director to ensure the validity of analysis results; 7. Requires the surveyor to submit a report of each survey to the associate director within 30 days after sampling is completed, including the following information: a. Name of the person conducting the survey; b. Attestation by an officer of the surveyor that the sampling and testing was conducted according to the compliance survey program plan and the results are accurate; c. Identification of the registered supplier for whom the compliance survey was conducted if the compliance survey was conducted for only one registered supplier; d. Identification of the area from which survey samples were selected; e. Dates on which the survey was conducted; f. Address of each facility at which a sample was collected, and the date of collection; g. Name and address of each laboratory at which samples were analyzed; facili- h. Description of the method used to select the ties from which a sample was collected; i. Number of samples collected from each facility; j. Justification for excluding a collected sample from the survey, if one was excluded; and k. For a survey conducted under subsection (A), analyzes each sample for oxygenate according to the methodologies specified in R3-7-759; or l. For a survey conducted under subsection (C), results of the sample analysis for oxygenate type, oxygen weight percent, aromatic hydrocarbons, olefin content, E200, E300, vapor pressure, and the calculated VOC or NOx emissions reduction percentage, as applicable, for each survey conducted during the period identified in subsection (C)(1); 8. Begins each survey on a date selected by the associate director, or as approved in the survey program. The associate director shall notify the surveyor of the date selected at least 10 days before the survey is to begin. E. To obtain the associate director’s approval of a survey program plan, the person seeking approval shall: Jan- 1. Submit the plan to the associate director no later than uary 1 to cover the survey period of November 1 through 23-1 Page 37 3 A.A.C. 7 Arizona CHAPTER 7. DEPARTMENT OF AGRICULTURE March 31 or June 1 through September 15 of each year, as applicable; and regis- 2. Have the plan signed by a corporate officer of the tered supplier or by an officer of the independent thirdparty surveyor. F. If the associate director determines that a sample used in a compliance survey does not comply with R3-7-751 or another requirement under this Article, the associate director may take enforcement action against the registered supplier, oxygenate blender, and/or retail location. G. If a registered supplier fails to ensure that an approved compliance survey program is conducted, the associate director may consider all batches delivered into the CBG-covered area during the survey period as non-compliant. H. No later than April 1 of each year, a registered supplier that intends to meet the requirements in subsections (A) and (C) by contracting with an independent third-party surveyor to conwin- duct the compliance survey plan for the next summer and ter season shall enter into the contract and pay all of the money necessary to conduct the compliance survey plan. The registered supplier may pay the money necessary to conduct the compliance survey plan to the independent third-party surveyor or to an escrow account with instructions to the escrow sur- agent to release the money to the independent third-party veyor as the compliance survey plan is implemented. No later than April 15, the registered supplier shall submit to the associate director a copy of the contract with the independent thirdparty surveyor, proof that the money necessary to conduct the compliance survey plan has been paid, and, if applicable, a copy of the escrow agreement. I. A registered supplier is exempt from the survey requirements of this Section if they supply less than 1,000,000 gallons of Arizona CBG or AZRBOB within a calendar year. Historical Note New Section R3-7-760 recodified from Section R20-2- 760 at 22 A.A.R. 2786, effective August 15, 2016 (Supp. 16-3). Amended by final rulemaking at 23 A.A.R. 2280, effective October 2, 2017 (Supp. 17-3). Amended by final rulemaking at 29 A.A.R. 441 (February 3, 2023), effective March 5, 2023 (Supp. 23-1).