The California enforcement exemption provided in the RFG regulations can be lost as a result of the assessment of civil, criminal or administrative penalty for violation of the federal RFG or anti-dumping provisions or for violation of CARB's Phase II RFG regulation. The effective party may petition EPA for relief for good cause. Good cause may include a showing that the violation was not a substantial violation of the federal or California RFG standards. However, under a literal interpretation of this provision, a California refiner could lose the enforcement exemption over a trivial manner. Can EPA apply narrower criteria, including establishment of willful wrongdoing criteria and the documentation or repeated offenses over a specific period of time before revocation of the exemption can occur? Additionally, clarification is needed on exemption implications of a settlement between a California refiner and CARB on California Phase II RFG enforcement matters. Can a violation of CARB Phase II RFG regulation not resulting in non-compliance with federal RFG be considered insufficient grounds for losing the exemption?

Each violation of CARB's RFG standard will be examined for its federal implications on a case-by-case basis. (8/29/94)

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