(a) Sulfur standards—(1) Annual average standard.

(i) The refinery or importer annual average gasoline sulfur standard is 10.00 parts per million (ppm) or milligrams per kilogram (mg/kg), except as provided in paragraph (a)(1)(iii) of this section.

(ii) The averaging period is a calendar year (January 1 through December 31).

(iii) The refinery or importer annual average gasoline sulfur standard is the maximum average sulfur level allowed for gasoline produced at a refinery or imported by an importer during each calendar year beginning January 1, 2017, except as provided by the following:

(A) The credit use provisions of §80.1616.

(B) Beginning January 1, 2020, for small refiners and small volume refineries approved pursuant to the provisions of §80.1622. Small refiners and small volume refineries will continue to be subject to the provisions of subpart H of this part through December 31, 2019 (or until compliance with this subpart O begins).

(C) Fuels not subject to the standards and requirements of this subpart O as specified in §80.1601(b).

(iv) The annual average sulfur level is calculated in accordance with paragraph (c) of this section.

(2) Per-gallon cap standard.

(i) The refinery or importer per-gallon cap standard is 80 ppm, on a per-gallon basis except as otherwise provided by this section.

(ii) The per-gallon cap of paragraph (a)(2)(i) of this section is the maximum sulfur level allowed for any batch of gasoline produced at a refinery or imported by an importer beginning January 1, 2017, except for fuels not subject to the standards and requirements of this subpart O as specified in §80.1601(b).

(3) Use of credits. The refinery or importer annual average gasoline sulfur standard may be met using credits as provided under §80.1616. Credits cannot be used to meet the applicable per-gallon standard.

(b) [Reserved]

(c) Calculation of the annual average sulfur level.

(1) The annual refinery or importer average gasoline sulfur level is calculated as follows:

(2) The annual average sulfur level calculation in paragraph (c)(1) of this section shall be conducted to two decimal places using the rounding procedure specified in §80.9.

(d) Oxygenate added downstream from the refinery or import facility. A refiner or importer may include oxygenate added downstream from the refinery or import facility when calculating the sulfur content of a batch, provided that the following requirements are met:

(1) The refiner or importer shall calculate the sulfur content of the batch by volume weighting the sulfur content of the gasoline or BOB and the sulfur content of the added oxygenate pursuant to one of the methods listed in paragraphs (d)(1)(i) and (ii) of this section. A refiner or importer must choose to use only one method during each annual compliance period.

(i) Testing the sulfur content of a sample of the oxygenate pursuant to §80.46 or §80.47, as applicable. The refiner or importer must demonstrate through records relating to sampling, testing, and blending that the test result was derived from a representative sample of the oxygenate that was blended with the batch of gasoline or BOB.

(ii) If the oxygenate is denatured fuel ethanol, and the sulfur content has not been tested under paragraph (d)(1)(i) of this section, then the sulfur content must be assumed to be 5.00 ppm.

(2) For denatured fuel ethanol, the refiner or importer may assume that the denatured fuel ethanol was blended with gasoline or BOB at a concentration of 10 volume percent, unless the refiner or importer can demonstrate that a different amount of denatured fuel ethanol was actually blended with a batch of gasoline or BOB.

(i) The refiner or importer of conventional gasoline or CBOB must comply with the requirements of §80.101(d)(4)(ii).

(ii) The refiner or importer of reformulated gasoline or RBOB must comply with the requirements of §80.69(a).

(iii) Any gasoline or BOB must meet the per-gallon sulfur standard of paragraph (a)(2) of this section prior to calculating any dilution from the oxygenate added downstream.

(iv) The reported volume of the batch is the combined volume of the reformulated gasoline, RBOB, conventional gasoline, or CBOB and the downstream added oxygenate.

(3) The refiner or importer who first certifies the gasoline, CBOB, or RBOB is the only person who may account for the downstream addition of oxygenate pursuant to the requirements of paragraph (d) of this section. On any occasion where any person downstream of the refinery or importer that produced or imported previously certified gasoline, CBOB or RBOB adds oxygenate to such product, it shall not include the volume and sulfur content of the oxygenate in any compliance calculations or for credit generation under this subpart O.

(e) Exclusions. Refiners and importers must exclude from compliance calculations all the following:

(1) Gasoline that was not produced at the refinery or imported by the importer.

(2) In the case of an importer, gasoline that was imported as Certified Sulfur-FRGAS.

(3) Blendstocks transferred to others, except RBOB and CBOB as provided in this subpart O.

(4) Previously certified gasoline (PCG).

(5) Gasoline exempted from standards under §80.1601(b).

(f) Compliance calculation for the annual average sulfur standard.

(1) Compliance by a refinery or importer with the gasoline sulfur annual average standard at paragraph (a)(1) of this section is achieved if, for calendar year y, the compliance sulfur value is less than or equal to 10 times the total gasoline volume produced or imported, as determined by the following equation:

CSVy = (Vy × Sa) + D(y-1) − OC

(2) Sulfur credits used in the calculation specified in paragraph (f)(1) of this section must be used in accordance with the requirements at §80.1616.

(3) Compliance with the gasoline sulfur annual average standard at paragraph (a)(1) of this section is not achieved, and a deficit is created per §80.1605, if for calendar year y, the compliance sulfur value is greater than 10 times the total gasoline volume produced or imported. The deficit value to be included in the following year's compliance calculation per paragraph (f) of this section is calculated as follows:

Dy = CSVy − (Vy × 10y)

[79 FR 23655, Apr. 28, 2014, as amended at 85 FR 7084, Feb. 6, 2020]