SB 1064 — gasoline formulations; air quality.

Alternate fuel control measures approved pursuant to subsection H of this section and this subsection may be used by any gasoline provider unless the approval is rescinded more than one hundred eighty days before the first day of a gasoline control period.

Gasoline providers that use an approved alternate fuel control measure shall annually submit a compliance plan to the associate director no NOT later than sixty days before the first day of a gasoline control period.

J.

A person shall not sell or offer or expose for sale diesel fuel grade 1, 2 or 4 as defined in ASTM D975, biodiesel, biodiesel blends or biomass-based diesel or biomass-based diesel blends that contain sulfur in excess of fifteen parts per million.

Locomotive and marine diesel fuel is exempt from this requirement if the fuel meets the requirements of 40 Code of Federal Regulations section 80.513(g) and (h).

K.

A person shall label dispensers at which biodiesel, biodiesel blends, biomass-based diesel or biomass-based diesel blends are dispensed in conformance with 16 Code of Federal Regulations part 306.

This section - 2 - S.B.

1064 does not preclude a person from labeling a dispenser that dispenses diesel fuel that contains up to five percent biodiesel or biomass-based diesel with a label that states "may contain up to five percent biodiesel" or "may contain up to five percent biomass-based diesel".

L.

For biodiesel blends that contain more than five percent by volume of biodiesel, a person shall prepare product transfer documents in a manner that notifies the transferee of the percent by volume of biodiesel in the product.

M.

The associate director shall adopt rules regarding the establishment and enforcement of all of the following:

1.

National or federal standards for individual biofuels and biofuel blends.

2.

United States environmental protection agency and ASTM test methods for individual biofuels and biofuel blends.

3.

Registration and reporting requirements for producers, blenders and suppliers of biofuels and biofuel blends.

4.

Labeling requirements for biofuels and biofuel blends other than biodiesel or biodiesel blends.

5.

Quality assurance and quality control programs for producers, blenders and suppliers of biofuels and biofuel blends addressing rack, batch or other blending.

6.

Requirements that the dispensing equipment meet appropriate UL ratings where available and applicable, that the equipment comply with rules adopted by the division relating to approval, installation and sale of devices and that the equipment be compatible with the products being dispensed.

N.

A biofuels or biofuel blends producer, blender, distributor, supplier or retail seller that is in compliance with this section and the rules adopted pursuant to this section is not liable to a consumer for any injuries or property damage related to a consumer who misfuels.

O.

If any person transfers custody or title of a diesel fuel or distillate, biodiesel, a biodiesel blend, biomass-based diesel or a biomass-based diesel blend, except if the fuel is dispensed into a motor vehicle or nonroad, locomotive or marine equipment, the transferor shall provide to the transferee product transfer documents that conform with 40 Code of Federal Regulations section 80.590.

P.

If the transfer of a motor fuel is from a terminal, storage facility, or transmix facility, the product transfer documents shall contain the information prescribed in subsection O of this section.

In addition, the fuel transporter shall ensure that the name and address of the final destination for the shipment, as prescribed by division rule, are included and that the product transfer documents accompany the shipment to its final destination.

- 3 - S.B.

1064 Sec.

2.

rulesrules; A.

exception A.

A GASOLINE THAT MEETS 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, except that the minimum oxygen content standard does not apply.

3.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

THE GASOLINE SHALL ALSO MEET THE MAXIMUM VAPOR PRESSURE REQUIREMENTS IN SECTION 3-3433, SUBSECTION F.

FOR THE PERIOD BEGINNING NOVEMBER 1 THROUGH MARCH 31 OF EACH YEAR, THE GASOLINE SHALL ALSO MEET THE MINIMUM OXYGEN CONTENT OR PERCENTAGE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

4.

A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

FOR THE PERIOD BEGINNING NOVEMBER 1 THROUGH MARCH 31 OF EACH YEAR, THE GASOLINE SHALL ALSO MEET THE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

5.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL CONVENTIONAL GASOLINE.

THE GASOLINE SHALL ALSO MEET THE MAXIMUM VAPOR PRESSURE REQUIREMENTS IN SECTION 3-3433, SUBSECTION F.

FOR THE PERIOD BEGINNING NOVEMBER 1 THROUGH MARCH 31 OF EACH YEAR, THE GASOLINE SHALL ALSO MEET THE MINIMUM OXYGEN CONTENT OR PERCENTAGE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

- 4 - S.B.

1064 6.

A GASOLINE OR GASOLINE BLEND THAT MEETS ANY OF THE STANDARDS PRESCRIBED BY THIS SUBSECTION OR APPROVED FOR USE BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

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 standardsONE forOF CaliforniaTHE phaseFOLLOWING 2standards reformulatedfor: 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.

1.

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.

2.

NOTWITHSTANDING SECTION 3-3433, SUBSECTION D, A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

3.

NOTWITHSTANDING SECTION 3-3433, SUBSECTION D, A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

4.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

5.

A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

6.

A GASOLINE OR GASOLINE BLEND THAT MEETS ANY OF THE STANDARDS PRESCRIBED BY THIS SUBSECTION OR APPROVED FOR USE BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

Any registered supplier or oxygenate blender, as defined in division rules, THE PRESIDENT OF THE SENATE OR THE SPEAKER OF THE HOUSE OF REPRESENTATIVES 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 THIS SECTION OR section 3-3492, subsection A if the petitioner can demonstrate that A REGISTERED - 15 - S.B.

1064 subsectionSUPPLIER'S AOR ifOXYGENATE theBLENDER'S petitionerABILITY canTO demonstrateSUPPLY ethanol supply shortages are imminent.OR GASOLINE THAT MEETS THE SPECIFICATIONS OF SUBSECTION A OR B OF THIS SECTION IS IN imminent DANGER AND MAY RESULT IN SUPPLY SHORTAGES OF ETHANOL OR GASOLINE IN AREA A.

IF A REGISTERED SUPPLIER OR OXYGENATE BLENDER, AS DEFINED IN DIVISION RULES, SUBMITS A PETITION PURSUANT TO THIS SECTION, THE REGISTERED SUPPLIER OR OXYGENATE BLENDER SHALL PROVIDE NOTICE AND A COPY OF THE PETITION TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

FOR THE PURPOSES OF THIS SUBSECTION, ALL OF THE FOLLOWING ARE EXEMPT FROM THE PROVISIONS OF TITLE 39, CHAPTER 1:

1.

A PETITION SUBMITTED BY THE PRESIDENT OF THE SENATE.

2.

A PETITION SUBMITTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

3.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE PRESIDENT OF THE SENATE OR THEIR AGENT AND ANY OTHER PERSON.

4.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OR THEIR AGENT AND ANY OTHER PERSON.

1.

FOR OXYGENATE SHORTAGES:

(a) Identify which oxygenate or oxygenates and the concentration that will be blended into gasoline BY THE PETITIONER OR REGISTERED SUPPLIERS OR OXYGENATE BLENDERS, AS DEFINED IN DIVISION RULES, for sale or use in area A.

(b) 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.

2.

FOR GASOLINE SHORTAGES, IDENTIFY THE FORMULATION OF GASOLINE THAT THE PETITIONER OR REGISTERED SUPPLIERS OR OXYGENATE BLENDERS, AS DEFINED IN DIVISION RULES, WILL SELL IN LIEU OF GASOLINE MEETING THE STANDARDS IN SUBSECTION A OR B OF THIS SECTION.

Specify3. a time period for compliance with any provision of section 3-3492, subsection A, not to exceed sixty days.

Specify a PROJECTED time period for compliance with any provision of THIS SECTION AND section 3-3492, subsection A, not to exceed sixty days.

F.- 6 - S.B.

1064 F.

C.The ASSOCIATE director OF THE DIVISION, of environmental quality in consultation with the associate director of the division DEPARTMENT OF ENVIRONMENTAL QUALITY, shall adopt by rule:

The ASSOCIATE director of environmental quality THE DIVISION, in consultation with the associate director of the division DEPARTMENT OF ENVIRONMENTAL QUALITY, shall adopt by rule:

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

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

D.FOR THE PURPOSES OF SUBSECTION A, PARAGRAPH 6 OF THIS SECTION, A REGISTERED SUPPLIER OR OXYGENATE BLENDER, AS DEFINED IN DIVISION RULES, THAT IS NOT A RETAIL SELLER MAY HOLD, POSSESS, TRANSPORT, STORE AND BLEND AND SELL OR OFFER FOR SALE TO ANOTHER REGISTERED SUPPLIER OR OXYGENATE BLENDER ALL GASOLINE AND GASOLINE BLENDS THAT DO NOT MEET THE REQUIREMENTS OF SUBSECTION A, PARAGRAPH 1, 2, 3, 4 OR 5 OF THIS SECTION IF THE GASOLINE OR GASOLINE BLEND THAT IS ULTIMATELY SOLD OR OFFERED FOR SALE TO THE PUBLIC BY RELEVANT RETAIL SELLERS THAT SELL OR OFFER FOR SALE GASOLINE OR A GASOLINE BLEND 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 AND THAT OBTAIN GASOLINE OR A GASOLINE BLEND FROM THE REGISTERED SUPPLIER OR OXYGENATE BLENDER OR FROM A REGISTERED SUPPLIER OR OXYGENATE BLENDER THAT OBTAINED GASOLINE OR A GASOLINE BLEND FROM THE REGISTERED SUPPLIER OR OXYGENATE BLENDER MEETS THE REQUIREMENTS OF SUBSECTION A OF THIS SECTION.

I.

J.

2.3.

rulesrules; A.

Allexception gasolineA. 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 - 2 - S.B.

1064All 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 ONE of the following fuel reformulation options:

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- that7 the- minimumS.B. oxygen content standard does not apply.

1064 except that the minimum oxygen content standard does not apply.

A GASOLINE THAT MEETS 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, except that the minimum oxygen content standard does not apply.

3.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

THE GASOLINE SHALL ALSO MEET THE MAXIMUM VAPOR PRESSURE REQUIREMENTS IN SECTION 3-3433, SUBSECTION F.

FOR THE PERIOD BEGINNING NOVEMBER 1 THROUGH MARCH 31 OF EACH YEAR, THE GASOLINE SHALL ALSO MEET THE MINIMUM OXYGEN CONTENT OR PERCENTAGE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

4.

A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

FOR THE PERIOD BEGINNING NOVEMBER 1 THROUGH MARCH 31 OF EACH YEAR, THE GASOLINE SHALL ALSO MEET THE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

5.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL CONVENTIONAL GASOLINE.

THE GASOLINE SHALL ALSO MEET THE MAXIMUM VAPOR PRESSURE REQUIREMENTS IN SECTION 3-3433, SUBSECTION F.

FOR THE PERIOD BEGINNING NOVEMBER 1 THROUGH MARCH 31 OF EACH YEAR, THE GASOLINE SHALL ALSO MEET THE MINIMUM OXYGEN CONTENT OR PERCENTAGE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

6.

A GASOLINE OR GASOLINE BLEND THAT MEETS ANY OF THE STANDARDS PRESCRIBED BY THIS SUBSECTION OR APPROVED FOR USE BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

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 standardsONE forOF CaliforniaTHE phaseFOLLOWING 2standards reformulatedfor: 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.

The1. fuel described in this subsection shall meet the requirements of section 3-3492, subsection A, paragraph 1 or 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, - 8 - S.B.

1064 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 PARAGRAPH shall meet the requirements of section 3-3492, subsection A, paragraph 1 or 2.

2.

NOTWITHSTANDING SECTION 3-3433, SUBSECTION D, A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

3.

NOTWITHSTANDING SECTION 3-3433, SUBSECTION D, A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

4.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

5.

A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

6.

A GASOLINE OR GASOLINE BLEND THAT MEETS ANY OF THE STANDARDS PRESCRIBED BY THIS SUBSECTION OR APPROVED FOR USE BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

Any registered supplier or oxygenate blender, as defined in division rules, THE PRESIDENT OF THE SENATE OR THE SPEAKER OF THE HOUSE OF REPRESENTATIVES may petition the associate director to request that all registered suppliers or oxygenate blenders RETAIL SELLERS be allowed to comply with standards other than SELL OR OFFER FOR SALE GASOLINE FOR USE IN MOTOR VEHICLES IN AREA A THAT DOES NOT MEET the standards prescribed by THIS SECTION OR section 3-3492, subsection A if the petitioner can demonstrate that THE PETITIONER'S ABILITY TO SUPPLY ethanol supply shortages are imminent.OR GASOLINE THAT MEETS THE SPECIFICATIONS OF SUBSECTION A OR B OF THIS SECTION IS IN imminent DANGER AND MAY RESULT IN SUPPLY SHORTAGES OF ETHANOL OR GASOLINE IN AREA A.

IF A REGISTERED SUPPLIER OR OXYGENATE BLENDER, AS DEFINED IN DIVISION RULES, SUBMITS A PETITION PURSUANT TO THIS SECTION, THE REGISTERED SUPPLIER OR OXYGENATE BLENDER SHALL PROVIDE NOTICE AND A COPY OF THE PETITION TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

FOR THE PURPOSES OF THIS SUBSECTION, ALL OF THE FOLLOWING ARE EXEMPT FROM THE PROVISIONS OF TITLE 39, CHAPTER 1:

1.

A PETITION SUBMITTED BY THE PRESIDENT OF THE SENATE.

2.

A PETITION SUBMITTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

- 9 - S.B.

1064 3.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE PRESIDENT OF THE SENATE OR THEIR AGENT AND ANY OTHER PERSON.

4.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OR THEIR AGENT AND ANY OTHER PERSON.

1.

FOR OXYGENATE SHORTAGES:

(a) Identify which oxygenate or oxygenates and the concentration that will be blended into gasoline BY THE PETITIONER OR REGISTERED SUPPLIERS OR OXYGENATE BLENDERS, AS DEFINED IN DIVISION RULES, for sale or use in area A.

-3. 3 - S.B.

1064(b) 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.

Demonstrate2. 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.

FOR GASOLINE SHORTAGES, IDENTIFY THE FORMULATION OF GASOLINE THAT THE PETITIONER OR REGISTERED SUPPLIERS OR OXYGENATE BLENDERS, AS DEFINED IN DIVISION RULES, WILL SELL IN LIEU OF GASOLINE MEETING THE STANDARDS IN SUBSECTION A OR B OF THIS SECTION.

Specify3. a time period for compliance with any provision of section 3-3492, subsection A, not to exceed sixty days.

Specify a PROJECTED time period for compliance with any provision of THIS SECTION OR section 3-3492, subsection A, not to exceed sixty days.

C.The ASSOCIATE director OF THE DIVISION, of environmental quality in consultation with the associate director of the division DEPARTMENT OF ENVIRONMENTAL QUALITY, shall adopt by rule:

The ASSOCIATE director of environmental quality THE DIVISION, in consultation with the associate director of the division DEPARTMENT OF ENVIRONMENTAL QUALITY, shall adopt by rule:

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

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

- 10 - S.B.

1064 I.

FOR THE PURPOSES OF SUBSECTION A, PARAGRAPH 6 OF THIS SECTION, A REGISTERED SUPPLIER OR OXYGENATE BLENDER, AS DEFINED IN DIVISION RULES, THAT IS NOT A RETAIL SELLER MAY HOLD, POSSESS, TRANSPORT, STORE AND BLEND AND SELL OR OFFER FOR SALE TO ANOTHER REGISTERED SUPPLIER OR OXYGENATE BLENDER ALL GASOLINE AND GASOLINE BLENDS THAT DO NOT MEET THE REQUIREMENTS OF SUBSECTION A, PARAGRAPH 1, 2, 3, 4 OR 5 OF THIS SECTION IF THE GASOLINE OR GASOLINE BLEND THAT IS ULTIMATELY SOLD OR OFFERED FOR SALE TO THE PUBLIC BY RELEVANT RETAIL SELLERS THAT SELL OR OFFER FOR SALE GASOLINE OR A GASOLINE BLEND 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 AND THAT OBTAIN GASOLINE OR A GASOLINE BLEND FROM THE REGISTERED SUPPLIER OR OXYGENATE BLENDER OR FROM A REGISTERED SUPPLIER OR OXYGENATE BLENDER THAT OBTAINED GASOLINE OR A GASOLINE BLEND FROM THE REGISTERED SUPPLIER OR OXYGENATE BLENDER MEETS THE REQUIREMENTS OF SUBSECTION A OF THIS SECTION.

J.

FOR THE PURPOSES OF SUBSECTION B, PARAGRAPH 6 OF THIS SECTION, A REGISTERED SUPPLIER OR OXYGENATE BLENDER, AS DEFINED IN DIVISION RULES, THAT IS NOT A RETAIL SELLER MAY HOLD, POSSESS, TRANSPORT, STORE AND BLEND AND SELL OR OFFER FOR SALE TO ANOTHER REGISTERED SUPPLIER OR OXYGENATE BLENDER ALL GASOLINE AND GASOLINE BLENDS THAT DO NOT MEET THE REQUIREMENTS OF ANY PARAGRAPH OF SUBSECTION B OF THIS SECTION IF THE GASOLINE OR GASOLINE BLEND THAT IS ULTIMATELY SOLD OR OFFERED FOR SALE TO THE PUBLIC BY RELEVANT RETAIL SELLERS THAT SELL OR OFFER FOR SALE GASOLINE OR A GASOLINE BLEND 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 AND THAT OBTAIN GASOLINE OR A GASOLINE BLEND FROM THE REGISTERED SUPPLIER OR OXYGENATE BLENDER OR FROM A REGISTERED SUPPLIER OR OXYGENATE BLENDER THAT OBTAINED GASOLINE OR A GASOLINE BLEND FROM THE REGISTERED SUPPLIER OR OXYGENATE BLENDER MEETS THE REQUIREMENTS OF SUBSECTION B, PARAGRAPH 6 OF THIS SECTION.

D.K.

3.4.

rulesrules; A.

exception A.

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),(h) SECTIONS 1090.200 THROUGH 1090.295, in effect on January 1, 1999, except that the minimum oxygen content standard does not apply.apply DECEMBER 4, 2020.

The gasoline shall also meet- the11 maximum- vaporS.B. pressure requirements in section 3-3434, subsection D.

-1064 4meet -the S.B.maximum vapor pressure requirements in section 3-3434, subsection D F.

1064 2.

A GASOLINE THAT MEETS STANDARDS FOR California phase 2 3 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 3-3434, subsection D.D FEBRUARY 16, 2014.

3.

NOTWITHSTANDING SECTION 3-3433, SUBSECTION D, A GASOLINE THAT MEETS STANDARDS FOR CALIFORNIA PHASE 3 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 FEBRUARY 16, 2014.

4.

NOTWITHSTANDING SECTION 3-3433, SUBSECTION D, A GASOLINE THAT MEETS STANDARDS FOR FEDERAL PHASE II REFORMULATED GASOLINE, AS PROVIDED IN 40 CODE OF FEDERAL REGULATIONS SECTIONS 1090.200 THROUGH 1090.295, IN EFFECT ON DECEMBER 4, 2020.

5.

A GASOLINE THAT MEETS 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, EXCEPT THAT THE MINIMUM OXYGEN CONTENT STANDARD DOES NOT APPLY.

THE GASOLINE SHALL ALSO MEET THE MAXIMUM VAPOR PRESSURE REQUIREMENTS IN SECTION 3-3434, SUBSECTION D.

6.

A GASOLINE THAT MEETS STANDARDS FOR FEDERAL CONVENTIONAL GASOLINE.

THE GASOLINE SHALL ALSO MEET THE MAXIMUM VAPOR PRESSURE REQUIREMENTS IN SECTION 3-3433, SUBSECTION F AND THE MINIMUM OXYGEN CONTENT OR PERCENTAGE REQUIREMENTS PRESCRIBED IN SECTION 3-3492.

7.

A GASOLINE OR GASOLINE BLEND THAT MEETS ANY OF THE STANDARDS PRESCRIBED BY THIS SUBSECTION OR APPROVED FOR USE BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

Any registered supplier or oxygenate blender, as defined in division rules, OR THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES JOINTLY may petition the associate director to request that all registered suppliers or oxygenate blenders RETAIL SELLERS be allowed to supply SELL OR OFFER FOR SALE gasoline FOR USE IN MOTOR VEHICLES in area C that does not meet the standards in subsection A of this section if the petitioner demonstrates that a shortage in the REGISTERED SUPPLIER'S OR OXYGENATE BLENDER'S, AS DEFINED IN DIVISION RULES, ABILITY TO supply of gasoline meeting THAT MEETS the standards in subsection A of this section is imminent.IN imminent DANGER AND MAY RESULT IN SUPPLY SHORTAGES OF GASOLINE IN AREA C.

IF A REGISTERED SUPPLIER OR - 12 - S.B.

1064 OXYGENATE BLENDER, AS DEFINED IN DIVISION RULES, SUBMITS A PETITION PURSUANT TO THIS SECTION, THE REGISTERED SUPPLIER OR OXYGENATE BLENDER SHALL PROVIDE NOTICE AND A COPY OF THE PETITION TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

FOR THE PURPOSES OF THIS SUBSECTION, ALL OF THE FOLLOWING ARE EXEMPT FROM THE PROVISIONS OF TITLE 39, CHAPTER 1:

1.

A PETITION SUBMITTED BY THE PRESIDENT OF THE SENATE.

2.

A PETITION SUBMITTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

3.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE PRESIDENT OF THE SENATE OR THEIR AGENT AND ANY OTHER PERSON.

4.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OR THEIR AGENT AND ANY OTHER PERSON.

Identify1. the formulation of gasoline that will be sold in area C in lieu of gasoline meeting the standards in subsection A of this section.

Identify the formulation of gasoline that THE PETITIONER OR REGISTERED SUPPLIERS OR OXYGENATE BLENDERS, AS DEFINED IN DIVISION RULES, will be sold SELL in area C in lieu of gasoline meeting the standards in subsection A of this section.

Specify2. a time period for compliance with the standards of subsection A of this section not to exceed sixty days.

Specify a PROJECTED time period for compliance with the standards of subsection A of this section not to exceed sixty days.

B.The associate director, in consultation with the director of the department of environmental quality, shall adopt by rule:

The associate director OF THE DIVISION, in consultation with the director of the department of environmental quality, shall adopt by rule:

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

- 513 - S.B.

C.

4.5.

Title 3, chapter 19, article 6, Arizona Revised Statutes, is amended by adding sectionssection 3-3499, 3-3500 and 3-3501, to read:

MotorFuel fuelreformulations; waiver requests;

definitionpetition A.THE PRESIDENT OF THE SENATE OR THE SPEAKER OF THE HOUSE OF REPRESENTATIVES MAY PETITION THE ASSOCIATE DIRECTOR TO REQUEST ANY RETAILER SELLER BE ALLOWED TO SELL OR OFFER FOR SALE ANY GASOLINE FORMULATIONS IN AREA A OR AREA C THAT DO NOT MEET THE STANDARDS PRESCRIBED BY SECTION 3-3492, 3-3493 OR 3-3494.

ANYFOR PERSON MAY PETITION THE ASSOCIATEPURPOSES DIRECTOROF TOTHIS REQUESTSECTION, AALL WAIVEROF FROM THE STANDARDSFOLLOWING FORARE MOTOREXEMPT FUELFROM PRESCRIBED IN SECTION 3-3491, 3-3492, 3-3493, 3-3494 OR 3-3495 OR FEDERAL STANDARDS ESTABLISHED BY THE UNITEDPROVISIONS STATESOF ENVIRONMENTALTITLE PROTECTION39, AGENCYCHAPTER PURSUANT1: TO THE CLEAN AIR ACT.

B.

A PETITION FOR A MOTOR FUEL WAIVER REQUEST PURSUANT TO SUBSECTION A OF THIS SECTION SHALL DO ALL OF THE FOLLOWING:

IDENTIFYA THEPETITION SPECIFICSUBMITTED SUPPLYBY CONDITIONSTHE THATPRESIDENT WILL RESULT IN A SHORTAGE OF MOTOR FUEL TO MEET THE APPLICABLESENATE. STANDARD.

IDENTIFYA THEPETITION GEOGRAPHICSUBMITTED AREABY ANDTHE MOTORSPEAKER FUELOF STANDARDS FOR WHICH THE POTENTIALHOUSE SHORTAGEOF EXISTS.REPRESENTATIVES.

IDENTIFYALL THECOMMUNICATION ALTERNATIVEREGARDING MOTORA FUELPETITION FORMULATIONSBETWEEN THATTHE WILLPRESIDENT BE SOLD IN LIEU OF THE MOTORSENATE FUELOR THATTHEIR MEETSAGENT THEAND APPLICABLEANY STANDARDS.OTHER PERSON.

SPECIFYALL THECOMMUNICATION TIMEREGARDING PERIODA THATPETITION BETWEEN THE MOTORSPEAKER FUELOF WAIVERTHE ISHOUSE REQUESTED,OF WHICHREPRESENTATIVES MAYOR NOTTHEIR EXCEEDAGENT TWENTYAND DAYS.ANY OTHER PERSON.

C.

NOT LATER THAN SEVEN DAYS AFTER THE RECEIPT OF A PETITION SUBMITTED PURSUANT TO SUBSECTION B OF THIS SECTION, THE ASSOCIATE DIRECTOR OF THE DIVISION, IN CONSULTATION WITH THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, SHALL:

1.

EVALUATE THE PETITION.

2.

ISSUE A WRITTEN DECISION DETERMINING WHETHER THE PETITION INCLUDES THE INFORMATION REQUIRED BY SUBSECTION B OF THIS SECTION AND MEETS the relevant criteria as prescribed in the clean air act.

3.

TRANSMIT A COPY OF THE ASSOCIATE DIRECTOR'S WRITTEN DECISION TO THE PETITIONER, DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, PRESIDENT OF THE SENATE AND SPEAKER OF THE HOUSE OF REPRESENTATIVES.

D.

IF THE ASSOCIATE DIRECTOR ISSUES A WRITTEN DECISION DETERMINING THAT THE PETITION MEETS THE CRITERIA IN SUBSECTION B OF THIS SECTION AND THE CLEAN AIR ACT WITHIN TWENTY-FOUR HOURS OF TRANSMITTAL TO THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY AS PRESCRIBED BY SUBSECTION C OF THIS SECTION, THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, ON BEHALF OF THE GOVERNOR, SHALL SUBMIT A MOTOR FUEL WAIVER REQUEST TO THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

E.

ANY DECISION ISSUED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY TO WAIVE THE APPLICABLE FEDERAL STANDARDS, AND ANY DECISION ISSUED BY THE ASSOCIATE DIRECTOR TO WAIVE THE APPLICABLE STATE STANDARDS, THAT RESULTS FROM THE SUBMISSION OF A MOTOR FUEL WAIVER REQUEST PURSUANT TO SUBSECTION D OF THIS SECTION SHALL BE APPLIED EQUALLY TO ALL - 6 - S.B.

1064 REGULATED PERSONS FOR WHICH THE STANDARDS APPLY.

ANY DECISION THAT RESULTS FROM THE SUBMISSION OF A MOTOR FUEL WAIVER REQUEST PURSUANT TO SUBSECTION D OF THIS SECTION SHALL BE PROVIDED TO THE PETITIONER, THE ASSOCIATE DIRECTOR OF THE DIVISION, THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND ALL REGULATED PERSONS FOR WHICH THE STANDARDS APPLY.

F.

THE DIRECTOR OF ENVIRONMENTAL QUALITY, IN CONSULTATION WITH THE ASSOCIATE DIRECTOR OF THE DIVISION, MAY SUBMIT A WRITTEN REQUEST TO THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY TO EXTEND THE MOTOR FUEL WAIVER GRANTED PURSUANT TO SUBSECTION D OF THIS SECTION IF THE PETITIONER DEMONSTRATES, AND THE ASSOCIATE DIRECTOR OF THE DIVISION VERIFIES, THAT THE CONDITIONS IDENTIFIED IN THE PETITION HAVE CONTINUED.

THE REAUTHORIZATION OF A MOTOR FUEL WAIVER MAY NOT EXCEED TWENTY DAYS.

G.

A PETITION MAY BE SUBMITTED PURSUANT TO SUBSECTION A OF THIS SECTION FOR MOTOR FUEL PROPERTIES THAT ARE NOT REGULATED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

NOT LATER THAN SEVEN DAYS AFTER THE RECEIPT OF A PETITION SUBMITTED PURSUANT TO THIS SUBSECTION, THE ASSOCIATE DIRECTOR OF THE DIVISION SHALL EVALUATE THE PETITION AND, AFTER CONSULTATION WITH AND CONCURRENCE BY THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, ISSUE A WRITTEN DECISION DETERMINING WHETHER THE PETITION INCLUDES THE INFORMATION REQUIRED IN SUBSECTION B OF THIS SECTION AND MEETS THE CRITERIA OF THE CLEAN AIR ACT AND WHETHER TO ISSUE A WAIVER TO WAIVE THE APPLICABLE STATE MOTOR FUEL REQUIREMENTS.

THE ASSOCIATE DIRECTOR SHALL TRANSMIT A COPY OF ANY WRITTEN DECISION THE ASSOCIATE DIRECTOR OF THE DIVISION ISSUES PURSUANT TO THIS SUBSECTION TO THE PETITIONER, THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

H.

IF ANY PERSON SUBMITS A PETITION PURSUANT TO SUBSECTION A OF THIS SECTION, THE ASSOCIATE DIRECTOR SHALL PROVIDE WRITTEN NOTICE THAT THE PETITION WAS SUBMITTED WITHIN TWO BUSINESS DAYS OF RECEIPT OF THE PETITION TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

FOR THE PURPOSES OF THIS SUBSECTION, ALL OF THE FOLLOWING ARE EXEMPT FROM THE PROVISIONS OF TITLE 39, CHAPTER 1 AND SHALL COMPLY WITH THE REQUIREMENTS OF SECTION 44-1374:

1.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE PRESIDENT OF THE SENATE OR THE PRESIDENT'S AGENT AND ANY OTHER PERSON.

2.

ALL COMMUNICATION REGARDING A PETITION BETWEEN THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OR THE SPEAKER'S AGENT AND ANY OTHER PERSON.

3.

ALL NOTICES THE ASSOCIATE DIRECTOR PROVIDES TO THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OR TO THEIR RESPECTIVE AGENTS.

I.

FOR THE PURPOSES OF THIS SECTION, "CLEAN AIR ACT" HAS THE SAME MEANING PRESCRIBED IN SECTION 3-3511.

- 7 - S.B.

1064 3-3500.

Additional motor fuel blend;

study;

report A.

ON RECEIPT OF WRITTEN NOTIFICATION FROM THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY PURSUANT TO SECTION 49-468, THE ASSOCIATE DIRECTOR OF THE DIVISION, IN CONSULTATION WITH REGISTERED SUPPLIERS AND OXYGENATE BLENDERS, AS DEFINED IN DIVISION RULE, THAT MAY BE LIKELY TO SUPPLY OR PRODUCE A BLEND FOR THIS STATE THAT IS INCLUDED IN THE DIRECTOR OF DEPARTMENT OF ENVIRONMENTAL QUALITY'S FINDINGS PURSUANT TO SECTION 49-468, SHALL CONDUCT A STUDY TO EVALUATE THE FEASIBILITY OF AUTHORIZING OR OBTAINING A NEW BLEND FOR SALE OR USE IN THIS STATE, INCLUDING THE IMPACT ON THE STATE'S TRANSPORTATION FUEL SUPPLY AND THE AVAILABILITY OF TRANSPORTATION OR SUPPLY CAPACITY TO PROVIDE THE NEW BLEND.

B.

WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING THE WRITTEN NOTICE PURSUANT TO SECTION 49-468 AND COMPLETING THE FEASIBILITY STUDY REQUIRED BY SUBSECTION A OF THIS SECTION, THE ASSOCIATE DIRECTOR OF THE DIVISION, IN CONSULTATION WITH THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, SHALL PREPARE AND SUBMIT TO THE GOVERNOR, PRESIDENT OF THE SENATE AND SPEAKER OF THE HOUSE OF REPRESENTATIVES A WRITTEN REPORT OF THE FOLLOWING INFORMATION:

1.

THE FINDINGS OF THE AIR EMISSIONS MODEL EVALUATED PURSUANT TO SECTION 49-468.

2.

THE RESULTS OF THE FEASIBILITY STUDY COMPLETED PURSUANT TO SUBSECTION A OF THIS SECTION.

3.

LEGISLATIVE RECOMMENDATIONS BASED ON THE FINDINGS AND RESULTS PROVIDED PURSUANT TO PARAGRAPHS 1 AND 2 OF THIS SUBSECTION.

3-3501.

Approved gasoline formulations;

posting requirement A.

THE ASSOCIATE DIRECTOR SHALL POST ON THE DEPARTMENT'S WEBSITE A LIST OF ALL APPROVED GASOLINE FORMULATIONS BY AREA IN THIS STATE.

THE ASSOCIATE DIRECTOR SHALL UPDATE THE LIST AS THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY APPROVES OR DENIES NEW GASOLINE FORMULATIONS PURSUANT TO THIS ARTICLE.

B.

THE ASSOCIATE DIRECTOR SHALL POST SEPARATELY ON THE DEPARTMENT'S WEBSITE BOTH OF THE FOLLOWING:

1.

A MAP THAT INCLUDES ALL CURRENTLY APPROVED GASOLINE FORMULATIONS BY AREA IN THIS STATE.

2.

A MAP OF AREA A, AREA B AND AREA C.

5.

Section 44-1374, Arizona Revised Statutes, is amended to read:

44-1374.

Confidentiality of petroleum industry information;

disclosure;

supply emergency;

definitions A.

A governmental entity shall classify as confidential and not publicly disclose any documents or other information that is received from any petroleum industry related private or public source if the person or - 8 - S.B.

1064 entity that provides the information agrees to provide the information only on the express condition that the information remain confidential.

B.

If a governmental entity receives a request to publicly disclose information that is confidential information or for any other reason proposes to publicly disclose confidential information, the governmental entity shall provide to the person or entity that submitted the confidential information notice in writing of the request or proposal to disclose.

The notice shall identify the confidential information that would be disclosed and indicate the form in which the confidential information would be provided.

On receipt of the notice, the person or entity that submitted the confidential information has fifteen working days in which to respond to the notice and to either withdraw the request for confidentiality or justify to the governmental entity the claim of confidentiality on each specific item of confidential information covered by the notice.

C.

The governmental entity shall consider the response in determining whether to publicly disclose any confidential information for which a justification has been submitted.

Unless the governmental entity determines that there is no trade secret or other legitimate justification for the confidentiality being claimed by the respondent, the governmental entity shall not disclose any confidential information for which a justification has been timely submitted.

If the governmental entity determines that there is no trade secret or other legitimate justification for all or a portion of the confidentiality claim, the governmental entity shall issue a written decision that sets forth the reasons for making that determination.

The governmental entity shall deliver a copy of the decision to the person or entity submitting the confidential information and the person requesting public disclosure of the confidential information.

D.

Notwithstanding a determination that there is no legitimate justification for a claim of confidentiality, and to allow the person or entity that submitted the confidential information to seek direct judicial intervention to prevent its release, the governmental entity shall not publicly disclose confidential information submitted to the governmental entity pursuant to this section for at least fifteen working days after the date on which the governmental entity has issued and disclosed the written determination pursuant to this section.

E.

If any legal or administrative action is filed with any court or other agency seeking to force disclosure of any confidential information, the governmental entity, within five working days of AFTER being served with the action, shall notify in writing the person or entity that submitted the confidential information of the action to allow the person or entity that submitted the confidential information to intervene in the action.

- 9 - S.B.

1064 F.

Confidential information shall not be classified or maintained as confidential if the governmental entity determines that the confidential information has already been made public by the submitting person or entity and advises, in writing, the person or entity that submitted the confidential information of this determination.

Notwithstanding a determination that the confidential information has already been made public by the submitting person or entity, the governmental entity shall not publicly disclose the confidential information for at least five working days after the governmental entity has advised the submitting person or entity to allow the person or entity that submitted the confidential information to seek direct judicial intervention to prevent its release.

G.

This section protects petroleum industry related confidential information submitted to a governmental entity but does not impose any requirement that information of any type from any source be submitted to any governmental entity.

H.

If there is a statewide or regional shortage or threatened shortage of a product or service that is essential to the health, safety and welfare of the people of this state due to an abnormal market disruption resulting from any natural disaster, weather condition, act of nature, strike, civil disorder, war, national or local emergency or other extraordinary adverse circumstance, the governor may proclaim that a supply emergency exists.

If a supply emergency is declared pursuant to this subsection and a majority of the persons or entities that are the subject of the supply emergency has provided information to the governmental entity, the governmental entity may only disclose the unattributable aggregated total of all sources of confidential information.

I.

For the purposes of this section:

1.

"Confidential information" means all of the following:

(a) The information is not and has not been reasonably obtainable by legitimate means by other persons without the consent of the person OR ENTITY providing the information, other than by governmental entities and other than in discovery based on a showing of a special need in a judicial or quasi-judicial proceeding.

(b) A statute does not specifically require disclosure of the information to the public.

(c) The person OR ENTITY has satisfactorily shown that disclosing the information is likely to cause substantial harm to the competitive position of the person OR ENTITY providing the information.

2.

"Governmental entity" means an agency, board, department or commission of this state, the state legislature and all MEMBERS, agencies or committees of the state legislature AND THEIR AGENTS but does not include the courts of this state.

- 10 - S.B.

1064 3.

"Publicly disclose" means to reveal the contents of information that has been classified as confidential to any third person or entity that is not bound by this section.

Sec.

TitleSubmission 49,to chapterUnited 3,States articleenvironmental 2,protection Arizonaagency; Revised Statutes, is amended by adding section 49-468, to read:

49-468.partial rejection;

Airresubmission emissionsA. model;

Within one hundred twenty days of the effective date of this act, the director of the department of environmental quality shall submit the proposed modifications to the gasoline formulations;fuel formulation requirements as provided in Laws 2017, chapter 295 and this act as part of the state implementation plan for air quality to the United States environmental protection agency for review and approval.

definitionsIf A.the United States environmental protection agency rejects a portion of the fuel formulations authorized by Laws 2017, chapter 295 and this act, before notifying the director of the Arizona legislative council that the condition has not been met the department of environmental quality shall resubmit the proposed modifications to the gasoline fuel formulations to the United States environmental protection agency authorized by this act that were not rejected to the United States environmental protection agency for approval.

WITHIN ONE HUNDRED TWENTY DAYS AFTER ANY OF THE FOLLOWING EVENTS, THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY, IN CONSULTATION WITH THE ASSOCIATE DIRECTOR OF THE WEIGHTS AND MEASURES SERVICES DIVISION OF THE ARIZONA DEPARTMENT OF AGRICULTURE, FOR EACH SEASONAL PERIOD IN AREA A AND AREA C, SHALL EVALUATE USING THE MOST RECENT AIR EMISSIONS MODEL APPROVED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY ALL RELEVANT GASOLINE OR GASOLINE BLENDS THAT, AS OF THE DATE OF THE EVALUATION, HAVE NOT BEEN EVALUATED BY THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY USING THE MOST RECENT AIR EMISSIONS MODEL APPROVED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY:

1.

THE ADOPTION OF A NEW FEDERAL GASOLINE STANDARD OR FUEL FORMULATION OF NATIONAL APPLICABILITY BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

2.

THE APPROVAL OF A NEW AIR EMISSIONS MODEL BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

3.

THE ADOPTION OF A NEW FEDERAL AIR QUALITY STANDARD OR NONATTAINMENT LEVEL BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY THAT IMPACTS AREA A OR AREA C.

4.

THE RECEIPT OF A WRITTEN REQUEST FROM A REGISTERED SUPPLIER OR OXYGENATE BLENDER, AS DEFINED BY RULES ADOPTED BY THE WEIGHTS AND MEASURES SERVICES DIVISION OF THE ARIZONA DEPARTMENT OF AGRICULTURE, SUBMITTED PURSUANT TO SUBSECTION C OF THIS SECTION, OR A WRITTEN REQUEST FROM THE ASSOCIATE DIRECTOR OF THE WEIGHTS AND MEASURES SERVICES DIVISION OF THE ARIZONA DEPARTMENT OF AGRICULTURE.

AFTERInitial EVALUATINGrejection THEof AIRthe EMISSIONSgasoline MODELformulations REQUIREDauthorized PURSUANTby TOthis SUBSECTIONact Aby OFthe THISUnited SECTION,States IFenvironmental THEprotection DIRECTORagency FINDSdoes THATnot ANYconstitute GASOLINEthe ORcondition GASOLINEprovided BLENDin THATsection IS7 NOTof AUTHORIZEDthis FORact SALEnot ORbeing USEmet INor AREAdoes Anot ORprohibit AREAthe Cdepartment OFof THISenvironmental STATEquality DURINGfrom ANYresubmitting SEASONALthe TIMEgasoline PERIODformulations MAYpursuant BEto ELIGIBLEsubsection FORA APPROVALof BYthis THEsection. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY TO BE SOLD OR USED IN ONE OR MORE AREA DURING ONE OR MORE OF THE RELEVANT TIME PERIODS, THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY SHALL NOTIFY THE ASSOCIATE DIRECTOR OF THE WEIGHTS AND MEASURES SERVICES DIVISION OF THE ARIZONA DEPARTMENT OF AGRICULTURE OF THE DIRECTOR'S FINDINGS.

THEThe DIRECTORweights OFand THEmeasures DEPARTMENTservices OFdivision ENVIRONMENTALof QUALITYthe SHALLArizona ADOPTdepartment RULESof PRESCRIBINGagriculture THEand APPLICATIONthe FORMdivision's ANDassociate MINIMUMdirector INFORMATIONshall THATmaintain MUSTa BElist PROVIDEDof INall ORDERapproved FORgasoline Aformulations REGISTEREDby SUPPLIERarea ORin OXYGENATEthis BLENDER,state ASon DEFINEDthe BYdepartment's RULESwebsite. ADOPTED BY THE WEIGHTS AND MEASURES SERVICES DIVISION - 11 - S.B.

1064The OFassociate THEdirector ARIZONAshall DEPARTMENTupdate OF- AGRICULTURE,14 TO- REQUESTS.B. THE DIRECTOR MODEL A GASOLINE OR GASOLINE BLEND PURSUANT TO SUBSECTION A, PARAGRAPH 4 OF THIS SECTION.

THE1064 RULESthe ADOPTEDlist PURSUANTas TOthe THISUnited SUBSECTIONStates SHALLenvironmental REQUIREprotection Aagency REGISTEREDapproves SUPPLIERor ORdenies OXYGENATEnew BLENDERgasoline THATformulations SUBMITSpursuant Ato WRITTENthis REQUESTact. TO THE DIRECTOR PURSUANT TO THIS SECTION TO DO ALL OF THE FOLLOWING:

The associate director shall post separately on the department's website both of the following:

IDENTIFYA THEmap SPECIFICthat GASOLINEincludes ORall GASOLINEcurrently BLENDSapproved THATgasoline THEformulations REGISTEREDby SUPPLIERarea ORin OXYGENATEthis BLENDERstate. IS REQUESTING THE DIRECTOR TO MODEL.

DEMONSTRATE A BONAmap FIDEof INTERESTarea INA, SUPPLYINGarea ORB PRODUCINGand THEarea GASOLINE OR GASOLINE BLENDS FOR SALE OR USE IN AREA A OR AREA C THATas THEdefined REGISTEREDin SUPPLIERsection OR49-541, OXYGENATEArizona BLENDERRevised ISStatutes. REQUESTING THE DIRECTOR TO MODEL.

3.

PROVIDE NOTICE AND A COPY OF THE WRITTEN REQUEST TO THE ASSOCIATE DIRECTOR OF THE WEIGHTS AND MEASURES SERVICES DIVISION OF THE ARIZONA DEPARTMENT OF AGRICULTURE.

D.

FOR THE PURPOSES OF THIS SECTION, "AREA A" AND "AREA C" HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 49-541.

WeightsConditional andenactment; measures services division;

capacitynotice andA. supply task force;

study;Section 3-3493, Arizona Revised Statutes, as amended by Laws 2016, chapter 232, section 27 and this act, and section 3-3494, Arizona Revised Statutes, as amended by this act, do not become effective unless on or before July 1, 2025 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.

membership;

report;

delayed repeal A.

Subject to legislative appropriation during the fifty-sixth legislature, second regular session, within ninety days after the effective date of this act, the associate director of the weights and measures services division of the Arizona department of agriculture, in consultation with the director of the department of environmental quality, shall establish a task force as prescribed by this section to study and issue a report on critical fuel supply and capacity issues and opportunities in this state as set forth in this section.

TheSection task3-3493, forceArizona shallRevised studyStatutes, allas amended by Laws 2017, chapter 295, section 2 and this act, does not become effective unless the condition prescribed by Laws 2017, chapter 295, section 3, as amended by Laws 2022, chapter 177, section 12, is met and on or before July 1, 2025 the United States environmental protection agency approves the additional proposed modifications to the gasoline fuel formulation requirements in this act as part of the followingstate issues:implementation plan for air quality.

1.

Fuel supply and capacity constraints.

2.

Pipeline and transportation capacity.

3.

Fuel storage and strategic reserves.

4.

Refinery maintenance and outages.

5.

Capital investments and requirements.

6.

Proposed or adopted energy policies in neighboring states.

7.

Processes for modeling and adopting new fuel formulations.

8.

Opportunities to update or modernize existing statutes or rules.

9.

Ability to commingle blends while maintaining compliance and enforcement.

10.

Ensuring federal air quality standards reflect state, local, and international conditions.

11.

Any other issues the task force deems relevant to its goal.

MembersThe director of the taskdepartment forceof shallenvironmental includequality representativesshall fromnotify eachthe director of the followingArizona groups:legislative council in writing on or before October 1, 2025 either:

- 12 - S.B.

1064 1.

Fuel producers and refiners.

2.

Fuel sellers and marketers.

3.

Fuel suppliers and transporters.

4.

Pipeline operators.

5.

Terminal operators.

6.

Relevant multistate trade associations.

7.

Relevant local trade associations.

8.

A majority and minority member of the relevant standing committee of the house of representatives who are appointed by the speaker of the house of representatives.

9.

Any other members of the house of representatives who the speaker of the house of representatives appoints.

10.

A majority and minority member of the relevant standing committee of the senate who are appointed by the president of the senate.

11.

Any other members of the senate who the president of the senate appoints.

12.

At least one employee of the governor's office who is appointed by the governor.

D.

The members of the task force shall meet as often as the associate director of the weights and measures services division of the Arizona department of agriculture deems necessary to conduct and complete the study.

E.

Not later than December 31, 2025, the associate director of the weights and measures services division of the Arizona department of agriculture, in consultation with the director of the department of environmental quality, shall submit a written report of the task force's findings and recommendations to the governor, president of the senate and speaker of the house of representatives and provide a copy of this report to the secretary of state.

F.

This section is repealed from and after September 30, 2026.

Sec.

8.

Weights and measures services division;

air emissions modeling;

coordination;

report;

delayed repeal A.

Subject to legislative appropriation during the fifty-sixth legislature, second regular session, within one hundred twenty days after the effective date of this act, the director of the department of environmental quality, in consultation with the associate director of the weights and measures services division of the Arizona department of agriculture, for each seasonal time period in area A and area C as defined in section 49-541, Arizona Revised Statutes, shall evaluate using the most recent air emissions model approved by the United States environmental protection agency each of the following gasoline blends:

FederalOf phasethe IIdate reformulated gasoline, as provided in 40 Code of Federal Regulations sections 1090.200 through 1090.295, in effect on Decemberwhich 4,the 2020,condition asprescribed modifiedby tosubsection meet,A foror eachB relevantof timethis period,section thewas -met. 13 - S.B.

1064 maximum vapor pressure requirements in section 3-3433, subsections D and F, Arizona Revised Statutes, and the minimum oxygen content or percentage requirements prescribed in section 3-3492, Arizona Revised Statutes.

CaliforniaThat phaseneither 3condition reformulatedwas gasoline,met. 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 February 16, 2014, as modified to meet, for each relevant time period, the minimum oxygen content or percentage requirements prescribed in section 3-3492, Arizona Revised Statutes.

3.

Federal conventional gasoline, as modified to meet, for each relevant time period, the maximum vapor pressure requirements in section 3-3433, subsections D and F, Arizona Revised Statutes, and the minimum oxygen content or percentage requirements prescribed in section 3-3492, Arizona Revised Statutes.

4.

Federal conventional gasoline or gasoline that meets the standards for ASTM D4814 class and the maximum vapor pressure requirements in section 3-3433, subsection D, Arizona Revised Statutes.

5.

On the effective date of this act, all gasoline or gasoline blends that are approved for sale or use in petroleum administration of defense district five and that have not been approved for sale or use in area A or area C as defined in section 49-541, Arizona Revised Statutes, during any seasonal period and that have not been evaluated by the director of the department of environmental quality using the most recent air emissions model approved by the United States environmental protection agency.

B.

If after completing the air emissions modeling required pursuant to subsection A of this section the director of the department of environmental quality finds that any gasoline or gasoline blend that is not authorized for sale or use in area A or area C as defined in section 49-541, Arizona Revised Statutes, during any seasonal time period may be eligible for approval by the United States environmental protection agency to be sold or used in one or more of such areas during one or more of such time periods, the director of the department of environmental quality shall notify the associate director of the weights and measures services division of the Arizona department of agriculture of the director's findings.

C.

On receipt of written notification pursuant to subsection B of this section, the associate director of the weights and measures services division of the Arizona department of agriculture, in consultation with registered suppliers and oxygenate blenders, that may be likely to supply or produce such a blend for this state, shall conduct a study to evaluate the feasibility of authorizing or obtaining such a blend for sale or use in this state, including the impact on the state's transportation fuel - 14 - S.B.

1064 supply and the availability of transportation or supply capacity to provide such a blend.

D.

Within one hundred twenty days after completing the air emissions modeling required by subsection A of this section and the feasibility study required by subsection C of this section, the associate director of the weights and measures services division of the Arizona department of agriculture, in consultation with the director of the department of environmental quality, shall prepare and submit to the governor, president of the senate and speaker of the house of representatives a written report containing all of the following:

1.

The findings of the air emissions modeling completed pursuant to subsection A of this section.

2.

The results of the feasibility study completed pursuant to subsection C of this section.

3.

Recommended legislation based on the findings and results provided pursuant to paragraphs 1 and 2 of this subsection.

E.

This section is repealed from and after September 30, 2026.

Sec.

9.

Conditional enactment Section 3-3493, Arizona Revised Statutes, as amended by Laws 2017, chapter 295, section 2 and this act, becomes effective on the date prescribed by Laws 2017, chapter 295, section 3, as amended by Laws 2022, chapter 177, section 12 and Laws 2024, chapter 70, section 1, but only on the occurrence of the condition prescribed by Laws 2017, chapter 295, section 3, as amended by Laws 2022, chapter 177, section 12 and Laws 2024, chapter 70, section 1.