What procedures must be followed if product is downgraded, e.g., RFG is downgraded to conventional? What procedures apply at the refinery as opposed to downstream?
There is no prohibition on the sale of RFG in conventional areas. Once a batch of gasoline is certified as RFG and released from the refinery its designation cannot be changed by the refiner. However, the refinery can change the designation of gasoline which has not been fungibly mixed with other certified gasoline before it leaves the refinery. If this is done, appropriate changes in the refinery's records should be made.
When gasoline located downstream of the refinery or import facility is designated as reformulated, but does not meet the applicable RFG downstream standards (plus any applicable enforcement tolerance), the party is prohibited from selling, distributing, transporting, or storing this gasoline as RFG. A party may downgrade RFG to conventional gasoline, and use the gasoline only outside any RFG covered area. There is no requirement that such downgraded gasoline must be included in any party's antidumping compliance calculations.
If RFG that is designated as VOC-controlled is found to violate a downstream standard that applies only to VOC-controlled RFG, the RFG may be downgraded to non-VOC controlled RFG, and used outside the VOC control period. The VOC control period is May 1 through September 15 at facilities upstream of the retail level, and June 1 through September 15 at the retail level.
If RFG that is designated as VOC-controlled for VOC Control Region 1 is found to be off-spec for that Region, but to meet the downstream standards applicable to VOC Control Region 2, the gasoline may be downgraded to VOC Control Region 2 RFG, and used only in that Region.
If the off-spec gasoline is found at a retail outlet or wholesale purchaser-consumer facility located in an RFG covered area, all sales of gasoline from the tank must be stopped, and the gasoline removed from the storage tank and transported to an area that is appropriate for the downgraded classification of the gasoline. (7/1/94)
This question and answer was posted at List of Reformulated Gasoline and Anti-Dumping Questions and Answers: July 1, 1994 through November 10, 1997 (pdf)