OAR 340-258-0150: Oxygenated Gasoline: Average Oxygen Content Standard

(1) All gasoline sold or dispensed for use during the control period described in OAR 340-258-0110(2), for use in each control area described in 340-204-0090, by each CAR or blender CAR using the Average Oxygen Content Standard Compliance Option, must be blended for each averaging period to contain an average oxygen content of not less than 2.7 percent by weight, except where otherwise required by 340-258-0310. Oxygen content calculations must be performed as required in 340-258-0120. (2) The averaging period for all gasoline sold or dispensed in a control area is the four-month control period established in OAR 340-258-0110(2). (3) Compliance calculation on average basis: (a) To determine compliance with the standards in section (1) of this rule, the CAR or blender CAR shall, for each averaging period and for each control area: (A) Calculate the total volume of gasoline sold or dispensed for use in the control area which is the sum of: (i) The volume of each separate batch or truck load of oxygenated gasoline that is sold or dispensed; (ii) Minus the volume of each separate batch or truck load of oxygenated gasoline that is sold or dispensed in a different control area; (iii) Minus the volume of each separate batch or truck load of oxygenated gasoline that is sold or dispensed in any non-control area. (B) Calculate the required total oxygen credit units. Multiply the total volume in gallons of oxygenated gasoline sold or dispensed into the control area (as determined by paragraph (3)(a)(A) of this rule) by 2.7 percent, except where otherwise required by OAR 340-258-0310; (C) Calculate the actual total oxygen units generated. The actual total oxygen credit units generated is the sum of the volume of each batch or truck load of oxygenated gasoline that was sold or dispensed in the control area (as determined by paragraph (3)(a)(A) of this rule) multiplied by the actual oxygen content by weight associated with each batch or truck load; (D) Calculate the adjusted actual total oxygen credit units. The adjusted actual total oxygen content credit units is the sum of the actual total oxygen credit units generated (as determined in paragraph (3)(a)(C) of this rule): (i) Plus the total oxygen credit units purchased or acquired through trade; and (ii) Minus the total oxygen credit units sold or given away through trade. (E) Compare the adjusted actual total oxygen credit units with the required total oxygen credit units. If the adjusted actual total content oxygen credit units is greater than or equal to the required total oxygen credit units, then the standard in section (1) of this rule is met. If the adjusted actual total oxygen credit units is less than the required total oxygen credit units the purchase of oxygen credit units is required in order to achieve compliance; (F) In transferring oxygen credit units, the transferor shall provide the transferee with the volume and oxygen content by weight of the gasoline associated with the credits. (b) To determine the oxygen credit units associated with each batch or truck load of oxygenated gasoline sold or dispensed into the control area, use the running weighted oxygen content (RWOC) of the tank from which the batch or truck load was received at the time the batch or truck load was received. In the case of batches or truck loads of gasoline to which oxygenate is added outside of the terminal storage tank from which it was received, use the weighted average of the RWOC and the oxygen content added as a result of the volume of the additional oxygenate added; (c) Running weighted oxygen content (RWOC). The RWOC accounts for the volume and oxygen content of all gasoline which enters or leaves the terminal storage tank, and all oxygenates which are added to the tank. The RWOC must be calculated each time gasoline enters or leaves the tank or whenever oxygenates are added to the tank. The RWOC is calculated weighing the following: (A) The volume and oxygen content of the gasoline in the storage tank at the beginning of the averaging period; (B) The volume and oxygen content by weight of gasoline entering the storage tank; (C) The volume and oxygen content by weight of gasoline leaving the storage tank; and (D) The volume, type and oxygen content by weight of the oxygenate added to the storage tank. (d) Credit transfers. Credit transfer may be used in the compliance calculations in subsection (3)(a) of this rule, provided that: (A) The credits are generated in the same control area in which they are used; no credits may be transferred between control areas; (B) The credits are generated in the same averaging period as they are used; (C) The ownership of credits is transferred only between properly registered CARs or blender CARs; (D) The credit transfer agreement is made no later than 30 days after the final day of the averaging period in which the credits are generated; and (E) The credits are properly created. (e) Improperly created credits: (A) No party may transfer any credits to the extent that such a transfer would result in the transferor having a negative credit balance at the conclusion of the averaging period for which the credits were transferred. Any credits transferred in violation of this paragraph are improperly created credits; (B) In the case of credits which were improperly created, the following subparagraphs apply: (i) Improperly created credits may not be used, regardless of a credit transferee’s good faith belief that it was receiving valid credits; (ii) The transfer of credits in violation of paragraph (A) of this subsection constitutes a violation of the requirements of section (1) of this rule; and (iii) Where any credits are transferred in violation of paragraph (A) of this subsection, the transferor’s properly created credits will be applied first to any credit transfers before the transferor may apply any credits to achieve its own compliance; (iv) Where any credits are transferred in violation of paragraph (A) of this subsection, the transferor shall be held legally and financially liable for any penalties or damages incurred by the transferee as a result of the invalid transaction.