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1RFGSAOverview
Title – RFGSA TechComm
RFGSurveyAssociationOverview- 2017
FCL updated 5/23/17
2RFGSAOverview
Agenda
• Overview/Background– RoleoftheRFGSA
• Regulations• Methodology• Funding/Dues• Summary- Whydoesitwork?• ContactInformation
3RFGSAOverview
RFGSA Overview
• “Independent” - NotForProfit– 501c(6)– Members:Refiners,Producers,importers,blenders,fuelsuppliers
• Design/ImplementalternativeIndustryfuelcomplianceprograms- meetorexceedregulationsrequirements
• Industry- Flexibility/Efficientcompliance• EPA- Effectivecompliance- betterinformationonconformance
4RFGSAOverview
RFGSA Overview
• ProgramsareGovernmentapproved• Statistical/Performancebased• Managedviacompliancesystemwebsite• Participationvoluntary• IndustryFunded
5RFGSAOverview
RFGSA Background
• CleanAirAct(CAA)- 1990- ReformulatedGasoline/Anti-dumping– Opportunityfor“Industry” RFGcompliance
• AmericanPetroleumInstitute(API)/NationalPetroleumRefinersAssociation(NPRA)– Studies• Feasibility/OrganizationalOptions/Costs
–Membersvoted- createindependentorganization– Start-upfunding
6RFGSAOverview
RFG Survey Association Inc• FormedinAugust1994• “Independent” NotForProfit- 501c(6)– Nolobbying*– 38FoundingMembers- Refiners,Importers,blenders
– F.C.Lenski– ElectedPresident– Operationscommenced01/95
7RFGSAOverview
RFG Survey Association - Mission
• Toprovideindependent,highqualityandefficientprogramsandservicestosatisfythefuelcompliancerequirementsoffuelsIndustryandgovernmentalagencies.
8RFGSAOverview
RFG Survey Association Organization
• Efficient/EffectiveBusinessModel• LeveragesResources
– MinimizeMembertime
• LowCost– Outsourced
9RFGSAOverview
Association Operations
• OperateNationwideandUSterritories• 48MemberCompanies+– 170+programparticipants
• 5 Programs– Federal,AZ,Ethanol,ULSD,E15• EthanolFlexFuelProposedRule- 1/2018
• ForProfitSubsidiary– RFGServicesInc.- Inactive
10RFGSAOverview
Scope of Operations • RFGComplianceSurveys– 1995-present– Phoenix(’98),St.Louis(’99),SanJoaquin(’03)
• CAOxygenComplianceSurveys– 1996-2006• AZCBGProgram- 1999-present• EthanolDownstreamQAProgram– 2003- AllRFGsurveyareas01/06- present
• AZEthanolQAProgram- 2006- present• ULSDTestingProgram– 10/06– present• EthanolBlendingProgram(E15)– 7/12-present• EthanolFlexFuels(EFF)– 01/2018– Pending• FuelsSurveysConsolidationInitiative- TBA
11RFGSAOverview
RFG Survey AssociationRole/Objectives
• Independent– Objectivesdriven– Robustprogramdesigns
• Efficient/effective– Unbiased
• Consultative/Collaborative– Resource
• Proactive
RFGSA
EPAIndustry
12RFGSAOverview
Regulations
• Compliance– Liability
• ComplianceRegulations– Federal– AZ
13RFGSAOverview
Compliance Overview
• Objectivedriven• Necessary- fiduciaryresponsibly- measured
• Identify/promptlycorrect• CreateIncentivesforpropercompliance/penalize
• Measured- monitored• Multi-faceted• Costly- Companies/Government• Ineffective/Inefficient
14RFGSAOverview
Compliance Liability
• Refiners/Producers/Importers/Blendersareprimarilyresponsibleforfuelcompliance– Trackbacktosupplier/producer
• Concept“Presumptiveliability”– assumeseveryoneisthedistributionsystemisliable- untilprovenotherwise
– requirementsalongthesystem
• Resourcestoensurecompliance
15RFGSAOverview
Federal – Compliance Regulations
• 40CFRPart80• RFGComplianceon“average” vs.“pergallon” -oneormorerequirements§80.41
• ComplianceSurveys- §80.67,§80.68• Ethanol- Downstreamoxygenateblending-Qualityassurancetesting- §80.69(a)(6)&(7)
• ULSD- SamplingandTestingDefenseElements– BrandedRefiner,distributorandfuelsupplier• §80.613
16RFGSAOverview
Federal Compliance Regulations
• E15- FuelPartialWavier– approvedfor2001+vehicles- MitigateMis-fueling– Gasoline>10ethanolvolumepercent- §80.1501-08
• EthanolFlexFuel– REGRule– 10/2016–scheduledimplementation– 01/2018-§80.1561-2– EthanolBulkBlenders,Blenders,SiteBlenders– LeverageexistingE15survey– FuelsSurveyConsolidationconcept
17RFGSAOverview
AZ Regulations - Compliance
• R20-2-751- Averagestandards• R20-2-755- Downstreamoxygenateblending-Nov-March31
• R20-2-760- ComplianceSurveys- June-Sept.15
Survey Participation - Benefits
• EstablishAffirmativeDefenses• Programspecificbenefits– Avg.vs.Pergallon,Additionaltesttolerance
• StandardizedCompliance• Lowestcostoption• RFGSA/EPAInterface– ComplianceStreamlining
18
19RFGSAOverview
Methodology
• ProgramDevelopment• SurveyDesign• Field/LabOperations• QualityControl
20RFGSAOverview
Program Development - Overview• ExaminationofRegulations– Opportunitiesformoreeffective&efficientcompliance
• Developconcept/plans– PresentOptions- Association/Industry/EPA- buy-in
–Work- IndustryAssociations- makeformalrequests- interimapprovals(Enforcementtools)
• ProgramAdministration/Implementation• Regulation– complianceoptimizationoptions
21RFGSAOverview
RFGSA OperationsSurvey Design
• SurveyDesignPlans– Annually- PerformanceBased- Conservative• Enduserbased
• Methodology– StatisticalDesign– “Representative” allgasoline• MarketShareequivalent”
– Sampleselection- Random• ProbabilityProportionaltoSize(PPS)
– Weighted– basedonvolume
22RFGSAOverview
Field Operations - Database
• Sources– Census/Programdata/Fleet/CCsources/Members/Internet
• Structure- Strata/Clusters/byProgram• DenselyPopulatedAreas(DPA),Trans.routes,Rural• Clusters- Population,size,SScounts• Weighted(i.e.volumes)
• Dynamic- Updated- ongoing,fullupdates– (2-3yrs.)- 2016
23RFGSAOverview
Field Operations
• RetailSampling- EndUser• IndependentContractors(IC’s)– No“member” affiliation
• Web-basedtrainingPrograms– “Certified” everytwoyears- ornotselected
• Problemsinfield- “Exceptions”– Performanceaudited&tracked
24RFGSAOverview
Lab Operations - Testing
• IndependentLabOperations• Confidentialityagreements• TierIIIcompliant• ISOcertified9001/17025certified• DesignatedTestmethods• EPA&QALabCorrelation• Automated• IndustryResource
25RFGSAOverview
Reporting/Compliance System
• Reporting/Compliancedoneviawebsite– Detailreports- directretail– Aggregate- Industrytracking– Non-Compliance(PNC)• Expeditedschedule
• Compliancesystem- documentandrespondPotentialnon-compliance(PNC’s)
26RFGSAOverview
Quality Control Process
27RFGSAOverview
Audit Operations
• Field/LabOperations– Independentauditors– EPA&QALabCorrelation– IndustryCorrelations– ExceptionsTracking
• TrainingIssues• TechnicalCommitteeMeetings• RFGSA- FinancialAudit
28RFGSAOverview
Funding/Dues
• Programparticipatingcompanies• Minimumprogramdues• Duesbasis- volume/persitefee/other• Estimatedexpenses• AnnualReconcilation- “verified” - actualexpenses- estimates(pgm)
• AnnualFinancialAuditRFGSA
29RFGSAOverview
SummaryWhy Does it Work ?
• AlternativeIndustryfuelcomplianceoptions-designed/implementedbytheRFGSA- VerySuccessful- basedonobjectives
• Win/Win- IndustryandEPA– Industry- Flexibility/Efficientcompliance– EPA- EffectiveCompliance/betterinformationonconformance- company/industrylevel
• Moreeffectivevs.individualcompanycompliance
30RFGSAOverview
Summary Why does it Work ?
• RFGSAIndependence• Robustmethodology• TurnKeySolution• Transparentcompliance• Voluntaryparticipation• Industryfunded• Internal/ExternalOversight– Board,TechComm,AnnualAudits
31RFGSAOverview
RFG Survey Association Contact Info:• FrankLenski,President11350RandomHillsRd.Suite800Fairfax,VA22030website:www.rfgsa.orgEmail:[email protected](d)703-279-6435(f)