No. 34000 (Amendment): Section R70-940-7. Blending

(Amendment)

DAR File No.: 34000
Filed: 08/25/2010 10:21:21 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to allow flexibility for motor fuel manufacturers to meet Federal requirements for alternative fuel quotas, by expanding the location where fuel may be blended.

Summary of the rule or change:

The changes allow motor fuel to be blended at places such as terminals in addition to the currently allowed refineries and retail locations; and allow for temporary permits for blending locations up to 12 months. The changes also clarify that having a separate fixed tank for ethanol is one method of blending at a retail location.

State statutory or constitutional authorization for this rule:

• Section 4-33-4

Anticipated cost or savings to:

the state budget:

There will be no impact on the state budget. Our weights and measures inspectors already test gasoline for ethanol content.

local governments:

The rules places no responsibilities on local government. There should be no cost or savings to them.

small businesses:

The rules provides significant savings to gasoline manufacturers and retailers by allowing them to blend at locations such as terminals. This was not able to be calculated by the industry.

persons other than small businesses, businesses, or local governmental entities:

Major gasoline manufacturer and retailers such as Chevron, Golden Eagle, Sinclair and others requested these changes. The rule will benefit the industry and the consumer by assuring that ethanol they purchase is blended correctly.

Compliance costs for affected persons:

The energy companies will have costs of assuring the blends are correct. No costs has been identified. They are aware of this and feel it is worth it to be able to blend at more locations.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule will give flexibility to the industry regarding the blending of motor fuels. They will be able to more efficiently serve their customers and meet the Federal Energy Alternative Fuels requirements. Industry requested and supports this rule.

Leonard M. Blackham, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Agriculture and Food
Regulatory Services
350 N REDWOOD RD
SALT LAKE CITY, UT 84116-3034

Direct questions regarding this rule to:

• Kyle Stephens at the above address, by phone at 801-538-7102, by FAX at 801-538-7126, or by Internet E-mail at [e-mail]
• Brett Gurney at the above address, by phone at 801-538-7158, by FAX at 801-538-7126, or by Internet E-mail at [e-mail]
• Kathleen Mathews at the above address, by phone at 801-538-7103, by FAX at 801-538-7126, or by Internet E-mail at [e-mail]
• Richard Clark at the above address, by phone at 801-538-7150, by FAX at 801-538-7126, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/15/2010

This rule may become effective on:

10/22/2010

Authorized by:

Leonard Blackham, Commissioner

RULE TEXT

R70. Agriculture and Food, Regulatory Services.

R70-940. Standards and Testing of Motor Fuel.

R70-940-7. Blending.

A. Blending of motor fuels will be done only at [refineries or at retail outlets]facilities equipped [with calibrated dispensers or tank blenders that]to accurately measure the products to be blended. The finished blend must meet the requirements of octane, vapor pressure, distillation, and other standards as outlined by ASTM.

(1) The Department may issue a temporary approval for the blending of gasoline and ethanol provided that the operator has a Department-approved plan in place to assure the blended product meets the referenced requirements. The temporary approval shall not exceed 12 months.

B. At retail locations, a[A] separate fixed tank or a method approved by the Utah State Department of Agriculture and Food shall be used for blending the "methanol or ethanol-based fuel" into the gasoline.

 

KEY: inspections, motor fuel

Date of Enactment or Last Substantive Amendment: [June 22, 2009]October 22, 2010

Notice of Continuation: August 29, 2006

Authorizing, and Implemented or Interpreted Law: 4-33-4

 

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