(a) A refiner that has been approved by EPA under §80.217 for the geographic phase-in area (GPA) gasoline sulfur content standards under §80.216 may apply to EPA for approval to produce gasoline subject to the GPA standards in 2007 and 2008. Such application shall be submitted to EPA, at the address provided in §80.595(b), by December 31, 2001. A foreign refiner must apply under the provisions of paragraph (n) of this section.

(b) The refiner must submit an application in accordance with the provisions of §§80.595 and 80.596. The application must also include information, as provided in §80.594(c), demonstrating that starting no later than June 1, 2006, 95 percent of the motor vehicle diesel fuel produced by the refinery for United States use will comply with the 15 ppm sulfur standard under §80.520(a)(1), and that the volume of motor vehicle diesel fuel produced will comply with the volume requirements of paragraph (e) of this section.

(c) The Administrator may approve a refiner's application to produce gasoline subject to the GPA gasoline sulfur content standards in 2007 and 2008 if the provisions of paragraph (b) of this section are satisfied. In approving an application, the Administrator shall establish a motor vehicle diesel fuel volume baseline under §§80.595 and 80.596.

(d) From June 1, 2006 through December 31, 2008, 95 percent of the motor vehicle diesel fuel produced by a refiner that has been approved under paragraph (c) of this section to produce gasoline subject to the GPA gasoline sulfur standards in 2007 and 2008, must be accurately designated under §80.598 as meeting the 15 ppm sulfur standard of §80.520(a)(1).

(e) The total volume of motor vehicle diesel fuel produced for use in the United States and designated as meeting the 15 ppm sulfur standard under paragraph (d) of this section must meet or exceed 85 percent of the baseline volume established under paragraph (c) of this section, except that for the first compliance period from June 1, 2006 through June 30, 2007, the total volume must meet or exceed 92 percent of the baseline volume.

(f) Compliance with the volume requirements in paragraph (e) of this section shall be determined each compliance period. Annual compliance periods shall be from July 1 through June 30. For the year 2006, the compliance period shall be from June 1, 2006 through June 30, 2007.

(g) If a refiner fails to comply with the requirements of paragraph (d) of this section, or if the approval of the application, including the baseline, was based on false or inaccurate information, the approval to produce gasoline subject to the GPA gasoline sulfur content standards under this section during the years 2007 and 2008 shall be void ab initio, and gasoline produced for use in the GPA must meet the gasoline sulfur content standards of subpart H of this Part as if there had been no approval to produce gasoline subject to the GPA gasoline sulfur content standards in 2007 and 2008.

(h) If for any compliance period a refiner fails to meet the volume requirements in paragraph (e) of this section, the approval to produce gasoline subject to the GPA gasoline sulfur content standards shall be void for that compliance period and for all succeeding compliance periods, and gasoline produced for use in the GPA must meet the gasoline sulfur standards under subpart H of this subpart as if there had been no approval to produce gasoline subject to the GPA gasoline sulfur content standards under this section in 2007 and 2008.

(i) A refiner that is approved for production of gasoline subject to the GPA gasoline sulfur standards under this section in 2007 and 2008 must meet all applicable recordkeeping and reporting requirements of §§80.592, 80.593, and 80.594, and shall meet all the recordkeeping and reporting requirements under §§80.219, 80.365 and 80.370.

(j) A refiner approved to produce gasoline subject to the GPA gasoline sulfur standards under this section in 2007 and 2008 may not generate or use credits under §80.531(a) or (e), or §80.532 unless the approval is vacated as provided in paragraph (k) of this section.

(k) A refiner may petition the Administrator to vacate approval to produce gasoline subject to the GPA gasoline sulfur content standards in 2007 and 2008. EPA may grant such a petition, effective January 1 of the compliance period following EPA's receipt of such petition (or effective June 1, in 2006, if applicable). Upon such effective date and thereafter, gasoline produced for use in the GPA must meet the gasoline sulfur content standards under subpart H of this Part as if there had been no approval to produce gasoline subject to the GPA gasoline sulfur content standards under this section in 2007 and 2008. Upon such effective date, the refiner shall not be subject to the requirements of this section.

(l) The provisions of this section shall apply separately for each refinery of a refiner.

(m) If any refinery is approved for production of gasoline subject to GPA gasoline sulfur content standards under this section in 2007 and 2008, the GPA downstream gasoline sulfur standard under §80.220(a)(2) shall apply as follows:

(1) During the period of February 1, 2005 through January 31, 2009, the sulfur content of GPA gasoline at any downstream location other than at a retail outlet or wholesale purchaser-consumer facility shall not exceed 326 ppm.

(2) During the period of March 1, 2005 through February 28, 2009, the sulfur content of GPA gasoline at any downstream location shall not exceed 326 ppm.

(n) A foreign refiner may apply to the Administrator to produce gasoline that is subject to the gasoline sulfur standards for GPA gasoline under §80.216 for the compliance years 2007 and 2008. Such application must be submitted to the EPA, at the address in §80.595(b), by December 31, 2001.

(1) The Administrator may approve such interim GPA gasoline sulfur standards for the foreign refiner provided that the foreign refiner applies for a gasoline sulfur baseline under paragraph (n)(2) of this section and complies with:

(i) The requirements of paragraphs (b) through (l) of this section;

(ii) The requirements for the import of motor vehicle diesel fuel under §80.620; and

(iii) All applicable gasoline requirements for refiners under subpart H of this Part, including the foreign refiner requirements under §80.410, the attest requirements of §80.415, the recordkeeping and reporting requirements of §§80.365 and 80.370, the designation and product transfer document requirements of §80.219, the sampling and testing requirements of §80.330, and the sample retention requirements of §80.335.

(2) The refiner must submit an application for a gasoline sulfur baseline under the provisions of §§80.216(a), 80.295, and 80.410(b).

(3) After review of the foreign refiner's individual refinery gasoline sulfur baseline, its individual refinery motor vehicle diesel fuel baseline, and other information submitted with the application, the Administrator may approve such baselines and the application for GPA gasoline sulfur standards for 2007 and 2008.

(o) An importer is not eligible for approval to import gasoline subject to the GPA standards in 2007 or 2008 under this section.

[66 FR 5136, Jan. 18, 2001, as amended at 69 FR 39177, June 29, 2004]