Public Workshop Proposed Modifications to the Clean Fuels Regulations Regarding Clean Fuel Outlets March 18, 1999 California Environmental Protection Agency Air Resources Board

2 Presentation Overview Why Are We Proposing Changes? Current Clean Fuels Regulations Proposed Modifications Impacts of the Proposed Modifications Summary

3 Why Are We Proposing Changes? To update the regulations To remove obsolete sections To streamline reporting requirements for affected industry and ARB

4 Current Clean Fuels Regulations The clean fuel regulations are comprised of the following: – Retail outlet requirements – Amenity requirements – Retail availability requirements – Reporting requirements Current Regulations

5 Retail Outlet Requirements Require that certain owner/lessors equip an appropriate number of their stations to dispense a clean fuel –No requirements until there are 20,000 vehicles –The number of stations required is based on the fueling demand of non-fleet vehicles Current Regulations

6 Retail Outlet Requirements, Con’t Affected owners are determined based on the number of retail gasoline stations they own/operate in the State Affected owners may comply with their clean fuel outlet requirements by: –Use existing facilities –Site new facilities –Constructive allocation of an existing facility meeting the amenities requirements Current Regulations

7 Amenity Requirements Compared to gasoline, the designated clean fuel must: –Have similar accessibility and visibility –Be substantially as well marked, identified and lit –Provide substantially the same access to customer services –Certain gasoline station owner/lessors must also provide a training program for attendants and have attendants on hand to answer motorist’s questions Current Regulations

8 Retail Availability Requirements Operator must store a commercially reasonable volume of fuel Fuel must be available for sale during all times gasoline is being offered for sale Current Regulations

9 Reporting Requirements Retail gasoline owners/lessors must annually report the number of retail gasoline outlets they own or operate Fleet operators must annually report the number of LEVs they expect to operate and the volume of fuel they expect those vehicles to use Clean fuels distributors must quarterly report the volumes of clean fuels they have produced or distributed Automobile manufacturers annually report their past and current LEV vehicle production Current Regulations

Proposed Modifications

11 Clean-up/Minor Modifications Remove the obsolete sections pertaining to the years Change the ARB’s biannual reporting to affected parties to once per year, to be issued by October 31 Delay reporting requirements for retail gasoline owners/lessors, fleets and clean fuel distributors until such time as the information is needed Proposed Modifications

12 Vehicle Trigger Calculation Change the vehicle trigger calculation to discount fleet operated vehicles by 75 percent –These vehicles are currently removed from the clean fuel volume calculation Define fleet as: –15 vehicles operating on the same fuel under the same ownership Proposed Modifications

13 Net Fuel Volume Calculation Once the 20,000 vehicle trigger is reached: Include discounted fleet vehicles in fuel volume calculation Do not discount dual-fueled/FFV vehicles in fuel volume calculation* Proposed Modifications * Only includes those vehicles that are certified to a more stringent emission standard on a clean fuel than on gasoline.

14 Determine Number of Clean Fuel Outlets Required Use an average annual outlet throughput of 300,000 gasoline equivalent gallons (geg) during initial years of the program Increase throughput to 600,000 geg once 5 percent of the retail gasoline outlets in the State offer the clean fuel for sale Subtract any existing public facilities meeting the amenity requirements from the number of clean fuel outlets required Proposed Modifications

15 ARB Executive Officer Adjustments Add provisions to allow the ARB Executive Officer to adjust the calculated number of clean fuel outlets required up or down –Any person may petition the ARB Executive Officer to further modify the required number of clean fuel outlets based on additional information –Adjustments would be between a maximum and minimum level Proposed Modifications

16 Amenities Requirements Simplify the amenity requirements and create two sets of standards for clean fuel outlets –Retail Gasoline Outlets »Clean fuel dispensing equipment have the same amenities as provided for the gasoline dispensing equipment »Post in a conspicuous and convenient location directions illustrating the use of the clean fuel dispensing equipment –Non-retail Gasoline Outlets »Facility must be publicly accessible and safe »Customer must be able to pay for fuel purchases without having to arrange for an account with the outlet owner »Post in a conspicuous and convenient location directions illustrating the use of the clean fuel dispensing equipment Proposed Modifications

17 Sunset Provision Add a sunset provision that would remove the requirements to install clean fuel outlets for a particular clean fuel when 10 percent of the retail gasoline stations in the State have made that particular clean fuel available for purchase Proposed Modifications

18 Impacts of the Proposed Modifications Should result in no additional costs and could likely provide some cost savings to affected parties –More accurate determination of LEV clean fuel volume –Allow more existing facilities to qualify as clean fuel outlets –Delay reporting requirements –Sunset the regulations May delay the date that the vehicle trigger will be reached Impacts

19 Summary The proposed modifications will allow the Clean Fuels Program to more accurately and effectively determine the fuel demand of alternatively fueled LEVs The proposed modifications will continue to support the ARB’s LEV program and potential fuel cell vehicles Summary