Section 80.67(a)(2) authorizes a compliance procedure for benzene and oxygen averaging on a "covered area" basis. If a refinery participates in a compliance survey, does this section apply? Does this section apply only if a refinery decides to average oxygen or benzene and does not participate in a compliance survey? Do ratchets apply to parties complying with oxygen and benzene averaging under this section?

The compliance procedure described in this section allows for oxygen and benzene averaging on an area-specific basis. Since the purpose of surveys is to assure that nationwide averaging provides adequate quality gasoline overall on an area-specific basis, a party complying under this section is not subject to the survey requirements, i.e., the refiner or importer need not take part in a survey.

It is important to note that a party complying under this section must obtain EPA approval by supplying EPA with a detailed description of the procedures the party will undertake in order to assure that the complying fuel is limited to a specific covered area. EPA believes that a procedure to assure adherence to this type of area-specific averaging would require substantial effort on the part of the complying party.

If a refinery/importer participates in a compliance survey, the averaging provisions and requirements stated in this section do not apply. If a refinery/importer does not take part in a compliance survey then it must either: 1) comply on a per gallon basis or 2) it can choose to average oxygen and benzene (only) under this section and, of course, must comply with all requirements of this section

Although parties complying with averaging under section 80.67(a)(2)(i) are considered to have met the survey requirements under section 80.68, the regulations do not authorize an exemption for these parties from complying with ratcheted standards for averaged RFG which result from failed surveys. If such parties were not subject to ratcheted average standards, an unworkable enforcement situation would result under which several different maximum and minimum standards would be applicable to the same area. (7/1/94)

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