The requirements of this section apply for a refiner or blending manufacturer that adds blendstock to PCG to produce a new batch of gasoline. Paragraph (b) of this section specifies an alternative approach for a certified butane or certified pentane blender. Section 1090.1325 describes additional provisions that apply to a transmix processor.

(a) Sample and test using one of the following methods to exclude PCG from the compliance demonstration for sulfur content and benzene content:

(1) Compliance by subtraction. (i) Determine the sulfur content, benzene content, and oxygenate content of the PCG before blending blendstocks to produce a new batch of gasoline as follows:

(A) Sample and test the sulfur content, benzene content, and oxygenate content of each batch of PCG using the procedures in § 1090.1350. Demonstrate homogeneity for the consolidated batch as specified in § 1090.1337 if blending involves multiple batches of PCG, or if a single batch of PCG was certified without demonstrating homogeneity under § 1090.1337(a)(4). The blending manufacturer does not need to test PCG for oxygenate content if they can demonstrate that the PCG does not contain oxygenates as specified in paragraph (a)(1)(i)(C) of this section or § 1090.1310(e)(1). For PCG sampled from a pipeline as specified in § 1090.1335(c), homogeneity provisions apply as specified in § 1090.1337, except that no homogeneity testing is required for a volume less than 1 million gallons. Evaluate homogeneity based on two evenly distributed samples if volume is between 1 million and 2 million gallons, and based on three evenly distributed samples if volume is greater than 2 million gallons. If multiple samples meet homogeneity requirements, composite the collected samples for testing sulfur, benzene, and oxygenate.

(B) If the PCG is a BOB and the blending manufacturer is accounting for downstream oxygenate under § 1090.710, also prepare a hand blend under § 1090.1340 and test the hand blend for sulfur content and benzene content.

(C) The blending manufacturer may use the PCG manufacturer's certification test results if the PCG was received directly from the PCG manufacturer by an in-tank transfer or tank-to-tank transfer within the same terminal as long as the results are from the PCG that is being transferred.

(D) If multiple samples do not meet homogeneity requirements, demonstrate compliance based on the lowest measured values as specified in § 1090.1337(a)(4).

(E) If you are unable to measure a PCG parameter, you must comply using either the presumed value for the PCG volume or an EPA-approved alternative value as described in § 1090.1710(g).

(ii) Determine the volume of PCG that was blended with blendstock to produce a new batch of gasoline. Report the PCG as a negative batch as specified in § 1090.905(c)(3)(i).

(iii) After adding blendstock to PCG, sample and test the sulfur content, benzene content, and for summer gasoline, RVP, of the new batch of gasoline.

(iv) Determine the volume of the new batch of gasoline. Report the new batch of gasoline as a positive batch as specified in § 1090.905(c)(3)(ii).

(v) Include the PCG batch and the new batch of gasoline in compliance calculations as specified in § 1090.700(d)(4)(i).

(vi) The sample retention requirements in § 1090.1345 apply for both the new batch of gasoline and the associated PCG.

(2) Compliance by addition. (i) Sample and test the sulfur content and benzene content of each batch of blendstock used to produce a new batch of gasoline from PCG using the procedures in § 1090.1350. The homogeneity requirements for gasoline specified in § 1090.1337 apply to blendstock and GTAB collected with manual sampling.

(ii) Determine the volume of each batch of blendstock used to produce the new batch of gasoline.

(iii) Determine the volume of each blended batch of gasoline, and measure the sulfur content and for summer gasoline, RVP, for each blended batch of gasoline using the procedures specified in § 1090.1350. Testing the blended batch of gasoline for sulfur content, however, is not required if the fuel manufacturer tests the added blendstock and determines that both the blendstock and PCG meet the fuel manufacturing facility gate sulfur per-gallon standard in § 1090.205(b).

(iv) Report each batch of blendstock as specified in § 1090.905(c)(4).

(v) Include each batch of blendstock in compliance calculations as specified in § 1090.700(d)(4)(ii).

(vi) The sample retention requirements in § 1090.1345 apply for the new batch of gasoline and for each blendstock.

(b) A certified butane or certified pentane blender that blends certified butane or certified pentane into PCG, other than Summer RFG or Summer RBOB, to make a new batch of gasoline may comply with the following requirements instead of the requirements of paragraph (a) of this section:

(1) For summer gasoline, measure the RVP of the blended fuel. The fuel manufacturer may rely on test results from the certified butane or certified pentane producer for sulfur content and benzene content.

(2) Before blending the certified butane or certified pentane with PCG, obtain a copy of the producer's test results indicating that the certified butane or certified pentane meets the standards in § 1090.250 or § 1090.255, respectively.

(3) The certified pentane blender must enter into a contract with the certified pentane producer to verify that the certified pentane producer has an adequate quality assurance program to ensure that the certified pentane received will not be contaminated in transit.

(4) The certified butane or certified pentane blender must conduct a quality assurance program to demonstrate that the certified butane or certified pentane meets the standards specified in § 1090.250 or § 1090.255, respectively. The quality assurance program must be based on sampling the more frequent of every 90 days or 500,000 gallons of certified butane or certified pentane received from each distributor. The certified butane or certified pentane blender may rely on a third party to perform the testing.

(5) If the quality assurance testing under paragraph (b)(4) of this section shows that certified butane or certified pentane fails to meet one or more of the standards specified in § 1090.250 or § 1090.255, the certified butane or certified pentane received from that distributor at that butane blending facility or pentane blending facility during that testing period is deemed to be in violation of the relevant per-gallon standard. Any later shipment of certified butane or certified pentane received from that distributor at that butane blending facility or pentane blending facility will also be deemed to be in violation of the relevant per-gallon standard unless another quality assurance test is conducted demonstrating that certified butane or certified pentane received from that distributor meets the standards specified in § 1090.250 or § 1090.255.

(6) If certified butane or certified pentane is deemed to be in violation under paragraph (b)(5) of this section, the certified butane or certified pentane blender must calculate its compliance obligations using paragraph (a)(1) or (2) of this section using the test results from the quality assurance program and obtain any necessary sulfur or benzene credits. For purposes of averaging, banking, and trading, the certified butane or certified pentane deemed to be in violation will be subject to the sulfur and benzene standards in §§ 1090.205 and 1090.210, respectively.

(c) This paragraph describes provisions that apply in cases where PCG is a BOB for which the PCG manufacturer accounted for oxygenate added downstream under § 1090.710 and the blending manufacturer makes a new batch that includes less oxygenate than was specified for the BOB by the PCG manufacturer. A blending manufacturer in this circumstance does not qualify for the small volume blender exemption for BOB recertification under § 1090.740(a)(3) and must comply with all the following.

(1) Calculate and incur sulfur and benzene deficits under the BOB recertification provisions of § 1090.740.

(2) Comply with either the compliance by subtraction requirements of paragraph (a)(1) of this section or the compliance by addition requirements of paragraph (a)(2) of this section. For compliance by subtraction, test the PCG without adding oxygenate (i.e., test the PCG “neat”), and report the PCG volume without adjusting for the volume of oxygenate that the PCG manufacturer specified under § 1090.740.