(a) Applicability. A transmix processor that produces 500 ppm LM diesel fuel from TDP must comply with the requirements of this section and the standards for 500 ppm LM diesel fuel specified in § 1090.320.
(b) Blending component limitation. A transmix processor may only use the following components to produce 500 ppm LM diesel fuel:
(1) TDP.
(2) ULSD.
(3) Diesel fuel additives that comply with the requirements in § 1090.310.
(c) Volume requirements. A party that handles 500 ppm LM diesel fuel must calculate the volume of 500 ppm LM diesel fuel received versus the volume delivered and used on a compliance period basis. An increase in the volume of 500 ppm LM diesel fuel delivered compared to the volume received must be due solely to one or more of the following:
(1) Normal pipeline interface cutting practices under paragraph (e)(1) of this section.
(2) The addition of ULSD to a retail outlet or WPC 500 ppm LM diesel fuel storage tank under paragraph (e)(2) of this section.
(d) Use restrictions. 500 ppm LM diesel fuel may only be used in locomotive or marine engines that are not required to use ULSD under 40 CFR 1033.815 or 40 CFR 1042.660, respectively. No person may use 500 ppm LM diesel fuel in locomotive or marine engines that are required to use ULSD, in any nonroad vehicle or engine, or in any motor vehicle engine.
(e) Segregation requirement. A transmix processor or distributor must segregate 500 ppm LM diesel fuel from other fuels except as follows:
(1) A pipeline operator may ship 500 ppm LM diesel fuel by pipeline provided that the 500 ppm LM diesel fuel does not come into physical contact in the pipeline with distillate fuels that have a sulfur content greater than 15 ppm. If 500 ppm LM diesel fuel is shipped by pipeline adjacent to ULSD, the pipeline operator must cut ULSD into the 500 ppm LM diesel fuel.
(2) A WPC or retailer of 500 ppm LM diesel fuel may introduce ULSD into a storage tank that contains 500 ppm LM diesel fuel, provided that the other requirements of this section are satisfied. The resultant mixture must be designated as 500 ppm LM diesel fuel.
(f) Party limit. No more than 4 separate parties may handle the 500 ppm LM diesel fuel between the producer and the ultimate consumer.
(g) Compliance plan. For each facility, a transmix processor that produces 500 ppm LM diesel fuel must obtain approval from EPA for a compliance plan at least 60 days prior to producing 500 ppm LM diesel fuel. The compliance plan must detail how the transmix processor intends to meet all the following requirements:
(1) Demonstrate how the 500 ppm LM diesel fuel will be segregated by the producer through to the ultimate consumer from fuel having other designations in order to comply with the segregation requirement in paragraph (e) of this section.
(2) Demonstrate that the end users of 500 ppm LM diesel fuel will also have access to ULSD for use in those engines that require ULSD.
(3) Identify the parties that will handle the 500 ppm LM diesel fuel through to the ultimate consumer.
(4) Identify all ultimate consumers that will be supplied with the 500 ppm LM diesel fuel.
(5) Demonstrate how misfueling of 500 ppm LM diesel fuel into vehicles, engines, or equipment that require the use of ULSD will be prevented.
(6) Include an EPA registration number.