Regulation of Fuels and Fuel Additives; Fuel Quality Regulations for Highway Diesel Fuel Sold in 1993 and Later Calendar Years; Interim Final Rule |
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Carol M. Browner
Environmental Protection Agency
14 July 1994
[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-17001] [[Page Unknown]] [Federal Register: July 14, 1994] ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 80 [AMS-FRL-5012-8] Regulation of Fuels and Fuel Additives; Fuel Quality Regulations for Highway Diesel Fuel Sold in 1993 and Later Calendar Years; Interim Final Rule AGENCY: Environmental Protection Agency. ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: EPA regulations currently require that diesel fuel for use in motor vehicles (``on-highway'') meet a sulfur content standard, as well as standards for cetane index or in the alternative for aromatic content, and be free of visible evidence of the blue dye, 1,4- dialkylamino-anthraquinone. This rule implements provisions to change the blue dye specified in EPA's regulations to the red dye solvent red 164. The use of dye solvent red 164 for high sulfur diesel would mitigate aviation safety concerns raised because of the use of blue dye in certain aviation gasoline. Based on the time needed for refiners and importers to obtain adequate supplies of dye solvent red 164 for diesel fuel and deplete current inventories of blue dye held by the oil industry, this rule provides that after October 1, 1994 no refiner or importer shall add blue dye to off-highway diesel fuel. Until that date either blue or dye solvent red 164 could be used to dye high sulfur off-highway diesel fuel. Under this rule, downstream parties can continue to use existing supplies of blue dyed diesel fuel. This timing represents a balance between the need to address the safety issue as quickly as possible and provide a reasonable lead time for the affected industries to implement this change. This rule also provides requirements and defenses related to violations based on the presence of dye solvent red 164 in on-highway diesel fuel, including an exception for certain tax-exempt on-highway fuel dyed red pursuant to Internal Revenue Service (IRS) regulations. IRS regulations generally require tax-exempt high sulfur diesel fuel to be dyed blue. In a related rulemaking, and for similar reasons, the IRS is changing its regulations to call for the use of dye solvent red 164 instead of blue dye. DATES: As discussed more fully herein, EPA is issuing this as an interim final rule effective July 14, 1994 except for Sec. 80.29(c). The information requirements in 40 CFR 80.29(c) have not been approved by the Office of Management and Budget (OMB) and are not effective until OMB has approved them and an announcement of effective date is published in the Federal Register. EPA will accept written comments on any appropriate changes to this rule up to 30 days from July 14, 1994. ADDRESSES: Written comments on this rule should be submitted to Public Docket A-94-36 at the following address. Materials relevant to this rule change are also contained in Public Docket A-94-36, located at Room M-1500, Waterside Mall (ground floor), U.S. Environmental Protection Agency, 401 M Street SW., Washington, DC 20460. The docket may be inspected between 8:00 a.m. and 4:00 p.m., Monday through Friday. A reasonable fee may be charged by EPA for copying docket materials. FOR FURTHER INFORMATION CONTACT: Paul N. Argyropoulos, Field Operations and Compliance Policy Branch, Field Operations and Support Division, U.S. Environmental Protection Agency, (202) 233-9004. SUPPLEMENTARY INFORMATION: I. Introduction EPA regulations currently require that diesel fuel for use in motor vehicles (``on-highway'') meet a sulfur content standard, as well as standards for cetane index or in the alternative for aromatic content, and be free of visible evidence of the blue dye, 1,4-dialkylamino- anthraquinone. These requirements apply at all points in the distribution system. The regulations also provide that diesel fuel which is free of visible evidence of the blue dye shall be considered available for use in motor vehicles and therefore subject to the low sulfur and other standards. Diesel fuel that is not for use in motor vehicles (``off-highway'') is not subject to these standards, and the blue dye is typically added by the refiner or importer to differentiate it from the diesel fuel subject to the low-sulfur standard. Aviation gasoline (avgas) is dyed to ensure that pilots, maintenance personnel, vendors and fuel handlers correctly service piston powered aircraft. Although red dye is also used, more than 90% of all avgas is dyed blue or green. Blue dyes now being injected into off-highway diesel fuels create fuels which may be similar in color to either blue or green avgas. The aviation community, through the Federal Aviation Administration (FAA), has raised concerns that the blue dyed diesel fuel might be confused with blue or green avgas, leading to aircraft misfueling and result in a serious aviation accident. This rule is designed to quickly resolve the safety concerns regarding the potential misidentification of diesel fuel as avgas, based on the similar dye color used in these fuels. EPA's rule changes the dye used in the diesel fuel program from a blue color to a red color, and prohibits refiners and importers from producing diesel fuel with the use of the blue dye after October 1, 1994 in on-highway diesel fuel. However, under this rule, downstream parties can continue to use existing supplies of blue dyed diesel fuel. EPA believes this provides a reasonable time period to address the safety concern and for industry to obtain dye solvent red 164 and draw down supplies of blue dye. The IRS is undertaking a similar rulemaking to change the color of dye used in tax-exempt high sulfur diesel fuel from blue to red. Since, under IRS regulations all fuel is dyed, some of which can be used on-highway, EPA's rule also contains an exception allowing the use of red dye in this small category of on-highway diesel fuel, if certain conditions are met. EPA is taking this action after extensive discussion with the FAA, IRS, and the affected industries, including dye manufacturers. This rule reflects a reasonable balancing of the various interests involved, giving primary importance to the aviation safety issue. EPA invites comment on all issues raised by this rule, however, because of the critical safety issue involved, it is necessary to promulgate a final rule requiring the color change as quickly as possible and therefore without prior formal notice and comment. It is EPA's intention to expeditiously review all comments and determine whether it would be appropriate to make any change to this final rule. II. Background EPA published regulations concerning diesel fuel on August 21, 1990. 54 FR 35276. Under these regulations, beginning October 1, 1993, the sulfur content of on-highway diesel fuel could not exceed 0.05 wt. percent. EPA also specified standards for cetane index or aromatic content and required that on-highway diesel fuel be free of visible evidence of the blue dye 1,4-dialkylamino-anthraquinone. The standards established by EPA are designed to help control air pollution, especially particulate emissions from diesel motor vehicles and engines, and to coincide with EPA's heavy duty engine particulate standards which begin with the 1994 model year engines. EPA's regulations do not require the dyeing of off-highway diesel fuel. Instead, all diesel fuel that is free of visible evidence of the blue dye is presumed to be available for use in motor vehicles and, therefore, subject to the sulfur content and other standards. Refiners and others routinely dye off-highway diesel fuel to identify it as such, and avoid being subject to the standards applicable to on-highway diesel fuel. This program began in the fall of 1993, with the industry quickly achieving a high rate of compliance with all of the requirements. In early January 1994, EPA staff was contacted by individuals in the aviation community raising concerns that blue dyed diesel fuel might be mistaken for blue avgas, resulting in aircraft misfueling and a potentially serious aviation accident. This was identified as a particular concern in small and/or remote airfields where small aircraft operate and the handling procedures for fuel are less sophisticated or controlled. EPA was informed that the incident which triggered this concern occurred when a fuel handler on an airfield in Alaska encountered a delivery of blue fuels and claimed that he could not determine with any certainty which was diesel or avgas. Concern over this issue escalated quickly and EPA and various segments of the aviation community, including the FAA, various aviation associations, several airlines, the Coordinating Research Council (CRC) of the American Society of Testing and Materials (ASTM) and others quickly began to investigate this matter. FAA issued a ``Notice to Airmen'' on January 7, 1994 and subsequent safety notice on January 11, 1994 to alert the aviation community to this concern. However, EPA, the FAA and others believed a more permanent solution was necessary. The aviation industry has used dyes in aviation fuels since the early 1940's to ensure the proper fueling of aircraft. Aircraft engines are particularly sensitive to engine wear problems and performance requirements specified by the manufacturers and thus it is critical that the proper fuel be used at all times. Aviation gasolines are currently dyed red, green or blue, at relatively low concentrations, to distinguish grades by octane and other specifications. Blue avgas is the most predominant and widely used in the United States. In addition, the dyeing of avgas provides an obvious distinction from jet fuel which is clear kerosene type fuel and is often located in the proximity of avgas. Standard aircraft pre-flight procedures require a fuel color check to ensure proper fueling because of this particular sensitivity. While there is no specific federal requirement for the dyeing of aviation fuel, industry practice is to follow the aviation fuel dye specifications in the ASTM Standard D 910. The ASTM standard specifies dye color and concentration and other critical aviation gasoline properties, including octane. Further requirements regarding fuels, transportation and storage apply under the National Fire Protection Association Standard 207. Dyeing of certain motor vehicle fuels is a relatively common practice. In the United States, however, on-highway and off-highway diesel fuel have generally not been dyed, except for the limited use of specific dyes in certain premium diesel fuels by various segments of the industry. Diesel fuels are commonly dyed in other countries, including Canada. The term diesel fuel covers a relatively broad spectrum of fuels, with a wide range of base colors. For example, undyed diesel fuel may vary from clear to a brownish color with nearly every shade in between. EPA's regulations have led to widespread use of the blue dye in off-highway diesel fuel, comprising approximately one half of all diesel fuel. In addition, IRS regulations issued on November 30, 1993 (58 FR 63069) and subsequently amended December 27, 1993 (58 FR 68304) adopt EPA's blue dye requirement to identify tax- exempt high sulfur diesel. The IRS regulations specify minimum dye concentration levels in order to meet the additional purposes of the IRS tax program. The tax exemption for diesel fuel applies primarily to off-highway fuel, but also includes a small segment of on-highway diesel fuel use such as for certain buses, vehicles operated by state and local governments and non-profit educational organizations. Tax exempt uses comprise approximately 5% of the total diesel fuel market. Only a portion of this fuel will be dyed where downstream facilities have installed and utilize dye injection equipment. Motor fuel highway tax must be paid on this on-highway diesel fuel unless it is dyed. Under the IRS regulations, this on-highway fuel may be dyed with the dye solvent red 164 at minimum specified concentrations. If sold undyed, taxes must be paid and the appropriate parties can apply for tax refunds. The safety issue described earlier arises even though blue or green avgas may not look very similar to the majority of blue dyed diesel fuel. Some off-highway diesel fuels, including home heating oils, when dyed blue may look very similar to blue or green avgas. This diesel fuel may also be used in and around small airfields. The inadvertent mixing of diesel fuels with avgas is of particular concern since even small levels of contamination can cause aviation engine failures. III. Discussion of EPA's Rule EPA and other federal agencies have been examining various possible options to resolve the safety issue raised by the use of blue dye in diesel fuel. EPA and the other federal agencies considered whether the dye used in avgas should be changed given the much greater quantity of diesel fuel used annually than avgas. However, any change to the avgas colors was rejected since it is unlikely that the substantial understanding of fuel colors developed by pilots, fuel handlers, vendors and maintenance crews over nearly 50 years could be quickly undone without creating additional and possibly even greater safety risks. EPA and the other agencies, therefore, focused on the range of possible diesel fuel dye color changes. EPA believes a dye should meet two significant criteria for use in its diesel fuel program. These are (1) Dyed diesel fuel should be clearly distinguishable from undyed fuel throughout the range of base colors found in diesel fuel, and (2) dyed diesel fuel must be clearly distinguishable from any of the avgas colors. IRS has an additional requirement that the dye must be discernible in diesel fuel when diluted by a factor of five with undyed diesel throughout the range of base diesel colors. This additional criteria is important to the purpose of the IRS program since potential tax evaders can realize significant illegal profits by mixing taxed and untaxed fuels in those proportions. EPA's regulatory program is structured differently. The requirement that on-highway diesel fuel be free of visible evidence of the dye applies not just to a single taxpayer, but to all persons in the distribution chain. This builds a strong incentive into the program to not mix dyed and un-dyed diesel fuel. Other issues of concern in choosing an appropriate dye include cost, health effects, equipment compatibility, pipeline concerns and availability to the public of the dye(s) to be selected. At the concentrations required to meet EPA's standard of ``visible evidence'' which is approximately one pound per thousand barrels, these concerns are not significant since industry has been using dyes in diesel fuels for some time at concentrations of approximately three pounds per thousand barrels without significant adverse effects in these areas. EPA staff, other government officials, and industry experts have examined hundreds of dyed and undyed fuel samples. At several large meetings of industry and government personnel, diesel fuels dyed red, green and purple were studied in various concentration levels throughout the range of possible base colors. In addition, EPA and IRS field compliance personnel as well as aviation fuel users examined fuel samples from the perspective of each agency's program purposes. Industry experts provided further analyses of the colors and concentration options considered from the perspective of various industry concerns. After considering all the evidence, EPA believes that red dye for high sulfur diesel fuel is the most appropriate for meeting the different agency concerns. It is easily distinguishable from undyed fuel, and from avgas at the concentrations that IRS requires. Purple was considered but rejected, because it was only distinguishable in very light base diesel fuel colors. At sufficient concentrations in darker base colors, purple creates significant routine product quality test problems for pipeline carriers. Green was also seriously considered, but was also rejected because it very closely resembled many of the undyed diesel fuels when diluted five times and is often too close in color to green avgas. The aviation community did not consider red to have the same problem at the concentrations considered since ``red'' avgas is actually pink and readily distinguishable from red dyed diesel fuel. The ASTM is currently preparing to rename red avgas pink. Since EPA's dye standard is based on the lack of ``visible evidence'', the dye requirement is easily met at relatively low concentrations.1 --------------------------------------------------------------------------- \1\ Under the current regulations for diesel fuel, refiners use approximately 1 lb of blue dye per 1000 barrels of diesel fuel. EPA expects that approximately the same amount of red dye would be used under this final regulation to show visible evidence of the red dye. --------------------------------------------------------------------------- With respect to cost, EPA does not believe the change from blue to red dye would cause any significant increase in cost, given the amount that would be used and the comparative cost of the dyes. Based on industry information, the cost of the red dye as specified, dye solvent red 164, is slightly less than the blue at similar concentrations, it is non-proprietary and is currently available from both Morton International and United Color Manufacturing. Based on discussions with these manufacturers, EPA believes that October 1, 1994 is a feasible date by which adequate supplies of the red dye can be manufactured and distributed, and made ready for use in dyeing off-highway diesel fuel. Similarly, EPA believes that an October 1, 1994 date for a changeover from blue to red dye will allow a reasonable period of time for refiners and others that use the blue dye to use up most, if not all, of their current inventory of blue dye. This is based on discussions with representatives of the oil industry. EPA does not expect that equipment compatibility will be a problem for the pipelines and others that transport and store diesel fuel based on the relatively low concentration needed to show visible evidence of the dye. Pipeline representatives have indicated their support for this belief at meetings on these issues. While EPA has not conducted testing of the effects of the dye solvent red 164 on boilers, furnaces, and other equipment that use off-highway diesel fuel, EPA is not aware of any indications that the red dye would cause problems, or would be any different in that regard than blue dye. Finally, with respect to health effects, EPA has preliminarily looked at this issue but has not reached any conclusion that dye solvent red 164 is either better or worse compared to the blue dye currently specified in EPA's regulations, or compared to other possible substitutes for blue dye. It is worth noting that blue dyed diesel fuel will continue to be in existence in storage facilities at all levels significantly past the October 1, 1994 date even though refiners and importers are prohibited from adding blue dye to off-highway diesel fuel. Therefore, these regulations do not make downstream parties liable for the continued use of existing supplies of blue dyed diesel fuel nor the mixtures of blue and red that will result. This diesel fuel could remain available for off-highway use for a period of time and, therefore, presents some risk to aviation safety. However, EPA is not aware of any feasible way to remove the blue dyed diesel fuel from the distribution and storage system. This rule is therefore aimed not at removing already dyed diesel fuel from the system, but at changing the practice of dyeing diesel fuel blue and thereby preventing the creation of additional supplies of this fuel. The EPA and other federal agencies encourage the rapid depletion of existing supplies of blue dyed diesel and the use of dye solvent red 164 as soon as possible. EPA believes this change over from blue to red dye as of October 1, 1994 is reasonable in light of all of the above factors. It quickly moves to address the safety issue, while recognizing the need for a reasonable period of time for refiners and importers to obtain supplies of dye solvent red 164 and draw down the inventory of blue dye. The red dye is considered the best choice as a substitute for blue dye, given the information EPA has available at this time regarding coloring characteristics, cost, equipment compatibility, non-proprietary nature of the dye and health effects. The use of red dye for off-highway diesel fuel involves an additional concern for EPA with respect to that segment of on-highway diesel fuel that is tax-exempt and also dyed red under IRS regulations. EPA would prefer a unique color for the tax-exempt low sulfur fuel so as to retain a clear distinction from the dyed high sulfur as does various segments of the industry which supply and/or use this product under the IRS regulations. However, this is not feasible because, as discussed earlier, there was no other color that met all of the criteria adequately so as to meet the different agency requirements. Under EPA's current regulations, on-highway diesel fuel for certain tax-exempt users must be free of visible evidence of blue dye, however, the IRS regulations allow for this fuel to be dyed red. As a result, EPA is providing a limited exemption that would allow this tax-exempt on-highway diesel fuel to be dyed red under certain conditions. Specifically, EPA will allow distributors to supply low sulfur on- highway diesel fuel that is dyed red if it meets the following conditions: (1) It must be provided for tax exempt use under IRS rules, (2) the diesel fuel must meet the standards for sulfur content and cetane index or aromatic content. In addition, supplier must provide transfer documents which certify that the fuel meets the applicable standards and the party receiving such fuel must retain these documents. Suppliers of red dyed diesel fuel for use in motor vehicles would have to provide and retain such transfer documents and suppliers and users of this fuel would also have to present such documents to establish a defense under the regulations if EPA discovers a violation. EPA does not believe that this creates a significant additional burden since bills of lading, invoices or some form of transfer document is already standard industry practice and this would merely require the additional designation on this documentation indicating the fuel meets EPA standards. In any case, a terminal has the option to either dye the on-highway diesel fuel red or in the alternative pay the required taxes and seek a refund. If regulated parties instead choose to dye the diesel fuel, or accept dyed diesel fuel for use in motor vehicles, and not pay the tax, the above requirements establish a reasonable structure that places the burden on the user or supplier to show the exception applies in their case. IV. Environmental and Economic Impact The environmental impact of this rule would not differ in any significant way from the current regulations. EPA expects that this rule change will provide a reasonable resolution to the aviation safety concerns caused by the use of blue dye in diesel fuel. Given the comparable cost of the two dyes, and the leadtime allowed to obtain supplies of dye solvent red 164 and draw down supplies of blue, EPA believes there is no significant economic impact associated with the use of red rather than blue dye. Since fuel suppliers already provide transfer documents to customers, it will require only a minimal additional effort to indicate on such invoices that the fuel meets EPA requirements. Therefore, EPA believes that there will also be no significant economic impact associated with that requirement. V. Public Participation EPA is issuing this final rule without prior notice and comment. This expedited rulemaking procedure is based on the need to act expeditiously to resolve the aviation safety risk caused by the presence of blue dyed diesel fuel and avgas. In support of this action, EPA has contacted and received detailed input from a significant number of interested parties, including other federal agencies. EPA believes these circumstances provide good cause under 5 U.S.C. 553(b) and CAA Sec. 307(d)(1) to expedite this rulemaking. EPA finds that notice and comment procedures under Sec. 307(d) are impracticable and contrary to the public interest based on these circumstances. At the same time EPA is providing 30 days for submission of public comments. EPA will consider all written comments submitted in the allotted time period to determine if any change to this rule is necessary. Any proprietary information being submitted for the Agency's consideration should be clearly distinguished from other submittals and clearly labeled ``Confidential Business Information.'' Proprietary information should be sent directly to the contact person listed above, and not to the public docket, to ensure that it is not inadvertently placed in the docket. Information thus labeled and directed shall be covered by a claim of confidentiality and will be disclosed by EPA only to the extent allowed and by the procedures set forth in 40 CFR part 2. If no claim of confidentiality accompanies a submission when it is received by EPA, it may be made available to the public without further notice to the submitter. For the aviation safety reasons noted above, this rule is effective upon publication. EPA finds these circumstances provide good cause under 5 U.S.C. 553(d) for this expedited effective date. VI. Statutory Authority The authority for this action is sections 114, 211, and 301 of the Clean Air Act, as amended, 42 U.S.C. 7414, 7545, and 7601. VII. Administrative Designation and Regulatory Analysis A. Executive Order 12866 Pursuant to Executive Order 12866, (58 FR 51735 (October 4, 1993)) the Agency must determine whether the regulatory action is ``significant'' and therefore subject to OMB review and the requirements of the Executive Order. The Order defines ``significant regulatory action'' as one that is likely to result in a rule that may: (1) have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlement, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order. Pursuant to the terms of Executive Order 12866, it has been determined that this rule is a ``significant action'' because this rule might interfere with an action taken or planned by another agency. As such, this action was submitted to OMB for review. Changes made in response to OMB suggestions or recommendations will be documented in the public record. B. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, et seq., requires that federal agencies examine the effects of this proposal and identify significant adverse impacts of federal regulations on a substantial number of small entities. However, Section 605(b) of the RFA provides that an analysis is not required when the head of an agency certifies that the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities. Because the RFA does not provide concrete definitions of ``small entity,'' ``significant impact,'' or ``substantial number,'' EPA has established guidelines setting the standards to be used in evaluating impacts on small businesses.2 For purposes of this rule, a small entity is any business which is independently owned and operated and not dominant in its field as defined by SBA regulations under section 3 of the Small Business Act. --------------------------------------------------------------------------- \2\ U.S. Environmental Protection Agency, Memorandum to Assistant Administrators, ``Compliance with the Regulatory Flexibility Act,'' EPA Office of Policy, Planning, and Evaluation, 1984. In addition, U.S. Environmental Protection Agency, Memorandum to Assistant Administrators, ``Agency's Revised Guidelines for Implementing the Regulatory Flexibility Act,'' Office of Policy, Planning, and Evaluation, 1992. --------------------------------------------------------------------------- Pursuant to section 605(b) of the Regultory Flexibility Act, 5 U.S.C. 605(b), the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities. This rule affects primarily petroleum refiners and suppliers of the required dye. While some of these parties may have existing inventories of blue dye after October 1, 1994, this rule will not adversely affect a significant number of small entities. However, EPA invites comment on the question of significant impacts on small entities. C. Paperwork Reduction Act The information collection requirements in this rule will be submitted for approval to the Office of Management and Budget (OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The information requirements are not effective until OMB approves them and a technical amendment is published in the Federal Register. A separate Federal Register notice will be published requesting comments on the information collection. List of Subjects in 40 CFR Part 80 Environmental protection, Air pollution control, Fuel additives, Diesel fuel, Motor vehicle pollution, Penalties, Reporting and recordkeeping requirements. Dated: July 7, 1994. Carol M. Browner, Administrator. For the reasons set forth in the preamble, EPA is amending part 80 of title 40 of the Code of Federal Regulations as follows: PART 80--REGULATIONS OF FUELS AND FUEL ADDITIVES 1. The authority citation for part 80 continues to read as follows: Authority: Sections 114, 211 and 301(a) of the Clean Air Act as amended (42 U.S.C. 7414, 7545 and 7601(a)). 2. Section 80.29 is revised to read as follows: Sec. 80.29 Controls and prohibitions on diesel fuel quality. (a) Prohibited activities. (1) Beginning October 1, 1993, no person, including but not limited to, refiners, importers, distributors, resellers, carriers, retailers or wholesale purchaser-consumers, shall manufacture, introduce into commerce, sell, offer for sale, supply, dispense, offer for supply or transport any diesel fuel for use in motor vehicles unless the diesel fuel: (i) Has a sulfur percentage, by weight, no greater than 0.05 percent; (ii)(A) Has a cetane index of at least 40; or (B) Has a maximum aromatic content of 35 volume percent; and (iii) Is free of visible evidence of: (A) The dye 1,4-dialkylamino-anthraquinone; and (B) Beginning October 1, 1994; (1) The dye solvent red 164; unless (2) It is used in a manner that is tax-exempt as defined under Sec. 4082 of the Internal Revenue Code. (2) In the case of any diesel fuel not intended for use in motor vehicles, no refiner or importer shall add or introduce any amount of the dye 1,4-dialkylamino-anthraquinone into such fuel beginning October 1, 1994. (b) Determination of compliance. Any diesel fuel which does not show visible evidence of being dyed with either 1,4-dialkylamino- anthraquinone (which has a characteristic blue-green color in diesel fuel) or dye solvent red 164 (which has a characteristic red color in diesel fuel) shall be considered to be available for use in diesel motor vehicles and motor vehicle engines, and shall be subject to the prohibitions of paragraph (a) of this section. Compliance with the standards listed in paragraph (a) of this section shall be determined by use of one of the sampling methodologies specified in appendix G to this part. (c) Transfer documents. (1) Any person that transfers custody or title of diesel fuel for use in motor vehicles which contains visible evidence of the dye solvent red 164 shall provide documents to the transferee which state that such fuel meets the applicable standards for sulfur and cetane index or aromatic content under these regulations and is only for tax- exempt use in diesel motor vehicles as defined under Sec. 4082 of the Internal Revenue Code. (2) Any person that is the transferor or the transferee of diesel fuel for use in motor vehicles which contains visible evidence of the dye solvent red 164, shall retain the documents required under paragraph (c)(1) of this section for a period of five years from the date of transfer of such fuel and shall provide such documents to the Administrator or the Administrator's representative upon request. (d) Liability. Liability for violations of paragraph (a)(1) of this section shall be determined according to the provisions of Sec. 80.30. Any person that violates paragraphs (a)(2) or (c) of this section shall be liable for penalties in accordance with paragraph (e) of this section. (e) Penalties. Penalties for violations of paragraphs (a) or (c) of this section shall be determined according to the provisions of Sec. 80.5. 3. Section 80.30 is amended by adding paragraph (g)(7) as follows: Sec. 80.30 Liability for violations of diesel fuel control and prohibitions. * * * * * (g) * * * (7) In the case of any distributor or reseller that would be in violation under paragraph (e)(2) or (f)(2) of this section or any wholesale purchaser-consumer or retailer that would be in violation under paragraph (e)(1) or (f)(1) of this section for diesel fuel for use in motor vehicles which contains visible evidence of the dye solvent red 164, the distributor or reseller or wholesale purchaser- consumer or retailer shall not be deemed in violation if he can: (i) Demonstrate that the violation was not caused by him or his employee or agent, (ii) Demonstrate that the fuel has been supplied, offered for supply, transported or available for tax-exempt use as defined under Sec. 4082 of the Internal Revenue Code, and (iii) Provide evidence from the supplier in the form of documentation that the fuel met the applicable standards under paragraph (a)(1) of this section for sulfur and cetane index or aromatics content for use in motor vehicles. [FR Doc. 94-17001 Filed 7-13-94; 8:45 am] BILLING CODE 6560-50-P