From: Andersen-Schank, Karen

Sent: Fri Jul 27 15:08:47 2012

To: CleanFuelsAug2012

Subject: Questions about Oregon Clean Fuel Program

Importance: Normal

To be able to comment on the proposed regulations, it would help to understand core interpretations of the regulations.

Q1. Who would be the initial regulated party in the scenarios below?

Scenario 1:

-Company A owns gasoline that is imported via a pipeline into Oregon

-Company B owns ethanol that is imported via railcar or truck into Oregon

-Ownership of the ethanol is transferred to company C when the product is offloaded from the railcar or truck

-Company C leases a storage tank at a petroleum terminal to hold the ethanol before it is blended with gasoline

-The actual blender of the gasoline and ethanol could be company D

Scenario 2:

-Company A owns gasoline that is imported via a pipeline into Oregon

-Company B owns ethanol that is imported via railcar or truck into Oregon

-Company B leases a storage tank for ethanol at an Oregon Petroleum Terminal

-Company C buys ethanol from company B and blends the ethanol with gasoline

Scenario 3:

-Company A owns ethanol as it is railed into Oregon

-The ethanol flows through a Transload facility (the facility transfers the ethanol from a railcar to a truck).

-Is the transload facility considered a stationary facility? (Do we look at who owns the ethanol while it’s in the transload facility?)

Q2: While an ethanol producer outside of Oregon can decide to opt in and register under OAR 340-253-0100(4), is there a scenario where the ethanol producer could be considered an initial regulated party?

The ethanol producer outside of Oregon typically transfers title to a third party as the ethanol leaves its facility. The ethanol producer would not be the recipient of any regulated fuel in Oregon.

Q3: Is an entity that simply blends gasoline and ethanol at a petroleum terminal in Oregon considered to “make” the finished fuel and consequently they become a regulated party?

- Oregon producers: Entities that make a liquid blendstock or finished fuel at a facility located in Oregon.

Thank you.

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-If registration is proposed to start Jan. 2013

-If recordkeeping and reporting are proposed to start July 2013

Q: When do the PTD requirements in 340-253-0310 begin?

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