Arizona Department of Weights and Measures

1. Arizona Department of Weights and Measures March 15, 2011

2. Today�s Presentation Article 7: new regulation coming to Arizona Preparing for the Summer CBG season with two types of fuels. Price posting: the service stations and the pump.

3. Article 7: New regulation coming to Arizona The section of the regulations affected by the new rules are: R20-2-701 R20-2-702 R20-2-707 R20-2-708 R20-2-718 R20-2-750 through 760

4. Article 7 R20-2-701 Definitions Defining different biofuels Defining Final Destination Defining Marketer, Supplier, Transferee, and Transferor

5. Article 7 R20-2-702 Materials Incorporated by Reference Adopt the most current ASTM standards for: Gasoline Diesel Biodiesel E85 Ethanol

6. Article 7 R20-2-707 Product Transfer Documents 10. The final destination: a. When a terminal is the transferor, the owner or operator of the terminal shall include on the product transfer document the terminal name and address, the transporter name and address, and the final destination, which may be a final distribution facility, jobber, marketer, or motor fuel dispensing site; b. When a transporter is the transferor, the transporter shall include on the product transfer document the name and address of the transporter and the final destination, which is the location at which the motor fuel will be delivered and off loaded from the truck; and c. When a jobber or marketer is the transferor, the jobber or marketer shall include on the product transfer document the name and address of the jobber or marketer and the final destination, which may be a final distribution facility or a motor fuel dispensing site. B. To enable a transferor to comply fully with the requirement in subsection (A)(10), the transferee shall supply to the transferor information regarding the final destination.

7. Article 7 R20-2-708 Ethanol Blending: To allow for ethanol blending up to 10% for sub octane as well as finished products. Waives TV/L, modifies the T50 to 150 degrees. Codifies the one pound waiver year round for the state and for the transition period within the CBG covered area.

8. Article 7 R20-2-718 Biofuels What we have done has created a specific section in the regulations for all biofuels. As new biofuels come onto the market we can add them to this section.

9. Article 7 R20-2-718 The section is currently broken out into 4 sub sections: (Sub Section A). is the general requirement for all biofuels Registration Maintaining your registration Failure to register Reporting Requirements Quality Assurance and Quality Control program requirements

10. (Sub Section B) Specific Requirements for producers or suppliers of E85 Dispenser Labeling Requirements Dispenser Compatibility Requirements within the CBG covered area Reporting requirements for producers sampling and testing Article 7 R20-2-718

11. (Sub Section B) Specific Requirements for producers or suppliers of E85 Cont. Reporting Requirements for Supplier Quality Assurance Quality Control plans for E85 Sampling and testing frequency Test methods Certification Sampling handling and storage Retain samples Article 7 R20-2-718

12. Article 7 R20-2-718 (Sub Section C), Specific Requirements for producers or suppliers of Biodiesel and biodiesel blends. Dispenser Labeling Requirements Dispenser Compatibility Traceability back to a person registered with the Department Reporting requirements for producers sampling and testing Reporting requirements for Suppliers

13. Article 7 R20-2-718 (Sub Section C) Specific Requirements for producers or suppliers of Biodiesel and Biodiesel Blends Cont. Reporting Requirements for Supplier Quality Assurance Quality Control plans for E85 Sampling and testing frequency Test methods Certification Sampling handling and storage Retain samples

14. Article 7 R20-2-718 (Sub Section D) Specific Requirements for producers or suppliers of petroleum-based renewable diesel. Standards And a place holder for other requirements once it becomes more prevalent in the market.

15. Article 7 R20-2-750 through 760 CBG Regulations Removal of CARB 3 Removal of shortening of the winter season Adoption of new test methods Product Transfer Documents

16. Preparation for Summer CBG Season with two types of fuel Kinder Morgan is allowing for both clear and blendstock to be delivered into Phoenix for this summer. The majority of the product coming in will be blendstock. However, there will be some clear.

17. Preparation for Summer CBG Season with two types of fuel The Department has identified two potential issues: Comingling of the clear with the ethanol blended gasoline. This will result in the mixture being noncompliant. The only way to fix this is to pump it out. Potential supply problems due to these fuels not being fungible. Due to the large number of independently owned (95%) unbranded station, (63%) we expect to see comingling and a poor compliance rate. If we were to fail the summer time survey EPA could require additional reduction from refineries.

18. Comingling CBG with E10

19. Price Posting At Gas Station At the street sign At the pump

20. Price Posting At Gas Station On a Street Sign: R20-2-704. Price and Grade Posting on External Signs A. A person who owns or operates a service station that has an external sign shall ensure that the sign: 1. Identifies whether the price differs depending on whether the payment is cash, credit, or debit; 2. Identifies the self-service and full-service prices, if different; 3. Discloses the full price of motor fuel including fractions of a cent and all federal and state taxes, if the sign displays the motor fuel price. A decimal point shall be used in the displayed price when a dollar sign precedes the posted price; 4. Displays lettering at a height of at least 1/5 of the letter height of the motor fuel price displayed on the external sign or 2 1/2", whichever is larger, and is visible from the road; 5. States the terms of any condition if the displayed price is conditional upon the sale of another product or service. The terms of any condition shall comply with the letter height requirement in subsection (A)(4); 6. Describes diesel fuel as No. 1 diesel, #1 diesel, No. 2 diesel, #2 diesel, or biodiesel; and 7. Identifies the unit of measure of the price, if it is other than per gallon.

21. Price Posting At Gas Station

22. Price Posting At Gas Station

23. Price Posting At Gas Station On the Pump: R20-2-705. Price, Octane, and Lead-substitute Notification on Dispensers A. A service station owner or operator shall ensure that information regarding pricing, motor fuel grade, octane rating, and lead-substitute addition displayed on a service station motor fuel dispenser: 1. Is clean, legible, and visible at all times; 2. Is displayed electronically or with a sign or label on the upper 60 percent of each face of the dispenser; 3. Lists the full price of the motor fuel including fractions of a cent and all federal and state taxes; 4. Displays the highest price of motor fuel sold from the dispenser if the dispenser is capable of dispensing and computing the price of multiple grades of motor fuel; 5. Displays a discount, if offered, in letters at least 1/4" in height on each face of the dispenser and next to the undiscounted price;

24. Price Posting At Gas Station

25. On the Pump: R20-2-705. Price, Octane, and Lead-substitute Notification on Dispensers (Cont.) 6. Displays both a cash and credit price on a dispenser that is capable of electronically displaying both cash and credit prices; 7. Posts both a cash and credit price on each face of a dispenser that is preset by the cashier if the dispenser is unable to display electronically and simultaneously both cash and credit prices; 8. Posts a price-per-gallon sign next to or on a non-price computing dispenser for a retail-only sale of liquefied petroleum gas used as an alternative motor fuel; and 9. Complies with the requirements of R20-2-704(A)(1), (A)(2), (A)(3), (A)(5), (A)(6), and (A)(7). Price Posting At Gas Station

26. Price Posting At Gas Station

27. Price Posting At Gas Station

28. ARS 41-2081 (C) C. A person shall not misrepresent the price of any commodity or service sold or offered, exposed or advertised for sale by weight, measure or count or represent the price in any manner calculated or tending to mislead or in any way deceive a person. Price Posting At Gas Station

29. ARS 41-2081(J) J. If a retail seller engaging in the sale of motor fuel posts the selling price of the fuel on the premises, the seller shall post the selling price only by the price per gallon, except that if the fuel is dispensed by a measure other than whole gallons the seller shall represent the selling price for each unit of such other measure on the individual pump or other dispensing device. If a retail seller engaging in the sale of motor fuel advertises the price of the fuel off the premises, the retail seller shall advertise the price only by the price per gallon. Price Posting At Gas Station

30. Thank You For questions Call Duane Yantorno (602) 771-4933 Or dyantorno@azdwm.gov