Title 03 — Subtitle 03. Motor Fuel Tax

Applications for licenses shall be on forms provided by the Comptroller and shall indicate the type and class of license sought, as follows:

If the licensee discontinues business, the license shall be returned to the Comptroller for cancellation. Unless a bond rider has been accepted by the Comptroller, licensees shall apply for a new license and furnish a new bond under the following circumstances:

Licensed special fuel users making a sale of special fuel that is exempt from the motor fuel tax shall be reclassified and licensed as a special fuel seller.

Change of Class of Dealer License.

Sales of motor fuel shall be made with the motor fuel tax, as applicable, included.

Exceptions are as follows:

Stock reports;

EDP systems;

Marketing;

Security;

Internal audit;

Motor fuel taxes; and

Aviation fuel taxes.

All securities shall be in an amount of an even $1,000.

Cash offered as security shall be converted by the offeror into a banking instrument as specified by and in the manner determined by the Comptroller.

Dealers that are licensed special fuel sellers, special fuel users, or turbine fuel sellers are required to post only one security, the amount of which will be determined by the Comptroller.

The Comptroller may increase the amount of the security requirement on 30 days' notice.

Except as provided in §B of this regulation, fuel tax returns shall be filed monthly with appropriate remittance on forms prescribed by the Comptroller. If no sales or operations were conducted in any particular reporting period, required returns shall be filed, stating this fact.

Annual Filing Option.

Special Fuel Sellers and Turbine Fuel Sellers.

Special fuel users shall maintain records of all special fuels acquired and used, both taxable and nontaxable, and records of the miles traveled by each special fuel powered vehicle.

The inability of the Motor Fuel Tax Bureau to trace motor fuel from seller to purchaser as a result of inadequate reporting or record keeping may result in the assessment of tax and interest against either the supplier or the purchaser.

Exemption certificate holders shall file annually on forms prescribed by the Comptroller, at renewal time, all purchases of special fuel by type of product as well as each supplier thereof. (Licensed dealers, special fuel sellers, special fuel users, and turbine fuel sellers are excluded.)

Licensed distributors shall report receipts, sales, and use of all motor fuels on forms provided by the Comptroller as prescribed.

Arrangements for the transfer of ownership of motor fuel by dealers, special fuel sellers, special fuel users, turbine fuel sellers, and distributors, for future delivery, whether called sales, loans, exchanges, or otherwise, shall be recognized only when such arrangements are reflected in sales agreements or contracts. They shall be reported as “sales” only when:

When a sales agreement or contract is made on temperature corrected gallons, the invoices or delivery ticket required for audit purposes shall show the volumetric gallonage and the temperature adjusted gallonage.

Sales of motor fuel for exportation, under such circumstances that title passes to the purchaser in Maryland, may be sold tax exempt for immediate exportation under the following conditions:

Documentation (a bill of lading, meter ticket, or loading ticket) shall accompany each vehicle transporting motor fuel and shall conform to COMAR 03.03.03.05.

Whenever diesel fuel is modified or created by blending kerosene and fuel oil, metered loading tickets shall be attached to sales invoices, bills of lading, or delivery tickets showing the quantity of each product blended. These documents shall be available at the time of the audit or inspection.

Dealers, special fuel sellers, special fuel users, and turbine fuel sellers importing motor fuel into the State shall maintain on file a shipping and receiving document indicating specifications of the product received.

Records, receiving documents, delivery tickets, sales invoices, and bills of lading shall be maintained for audit purposes by all dealers that blend casinghead or natural gasoline, benzene, naphtha, gas, oil, kerosene, heating oil, butane, alcohol, or any combination of these or other items into a motor fuel within the State, or create motor fuel within the State. These records shall indicate the name and address of each customer to whom sales have been made.

All vehicles used to make metered sales of motor fuel shall utilize a meter calibrated to meet the accuracy requirements set forth in the current edition of the National Institute of Standards and Technology Handbook 44, as specified by Agriculture Article, §11-203(c), Annotated Code of Maryland.

Except for retail service station invoices, motor fuel invoices shall:

Retail service station invoices shall include the statement “The seller certifies that the motor fuel tax will be paid as required by law.”

Stock gains and losses shall be reported on forms and in accordance with instructions provided by the Comptroller.

Losses or gains shall be established upon products metered or physically inventoried as received in the State. Losses which occur in inventory after the receipt shall be supported by gauger's reports or other acceptable documentation.

Transportation gains or losses incurred enroute for delivery into the State shall be recorded for audit purposes.

Losses of motor fuel resulting from theft, faulty equipment, or any other cause except temperature correction shall be reported to the Comptroller upon discovery or by the first business day thereafter.

Allowable losses incurred in the storage of motor fuel shall be prorated on the percentage of tax exempt sales to total sales. Direct shipments from supplier to customer are not allowed in the proration calculation. Direct shipments shall be deducted from total sales and from either taxable or nontaxable sales, as applicable.

Licensees Reporting on a Temperature Adjusted Basis.

Licensees Reporting on a Gross (Not Temperature Adjusted) Basis.

“Volumetric gallon of motor fuel” means the United States gallon of 231 cubic inches as measured by volume.

“Temperature corrected gallon of motor fuel” means a volumetric gallon of 231 cubic inches adjusted to the measurement of a gallon at 60?F as determined by API/ASTM-IP Petroleum Measurement Table, “Table 6B”.

Natural Gas. In order to determine the quantity of liquid or compressed natural gas consumed, the following formulas will be used:

Liquid Propane Gas. To determine the quantity of liquid propane gas consumed, the following formula will be used:

Retail type special fuel dispensers (pumps) may have a security seal affixed by a State motor fuel agent.

Whenever a retail type dispenser is used to dispense special fuel and the computer metering device of the dispenser is removed, replaced, or repaired, the meter readings and serial numbers of both the retail dispenser and metering device shall be reported to the Comptroller within 30 days, and a copy of the service or repair order shall be maintained on the premises and shall indicate date of service, location, type of service performed, serial number, and meter readings of both the defective device and the replacement device, if a replacement is made.

Contaminated products (interface, interface mix, transmix, and products failing to meet State specifications) may not be:

A statement signed by the appropriate official confirming proper disposal of product shall be filed with supporting records before credit for contaminated product can be considered.

Licensees may not receive credit for sludge removed from storage tanks until proof has been established by a representative of the Comptroller that contaminated products were actually inventoried.

Dealers, special fuel sellers, special fuel users, and turbine fuel sellers shall have at their bulk plants, marine terminals, and tank farms, calibration charts for each tank containing motor fuel. These charts shall show the tank number, capacity, dimensions, and gallons corresponding to measurements in feet, inches, and fractions that indicate the amount of fuel in the tank or tanks.

Dealers, special fuel sellers, special fuel users, and turbine fuel sellers shall have gauge sticks, tapes, or electronic measurement devices. The devices shall correspond to the calibration charts for each tank and shall be capable of determining the gallonage contained in each tank.

Inventory Records.

Dealers, special fuel sellers, special fuel users, and turbine fuel sellers having inventories in their custody for another party, shall report all receipts and disbursements from that inventory as sales to and receipts from participants maintaining multiple ownership of the commingled inventory. The custodian shall report, as his inventory, all products in his care and control.

Dealers, special fuel sellers, special fuel users, and turbine fuel sellers, who are participants in commingled inventories, shall obtain authorization from the Comptroller before beginning this activity. The request for permission shall be in writing, indicate the names and addresses of all participants involved, and the terms and duration of the arrangements. Authorization is not required when the commingled inventory results from a sale to a purchaser, the terms of which include the total withdrawal from sellers inventory within 60 days of the date of sale. All other requirements of this chapter are applicable to fuels involved in this type of transaction.

Inventories stored at locations operated by persons other than a licensed dealer, special fuel seller, special fuel user, or turbine fuel seller shall be reported by each individual licensee that owns the fuel.

Dealers, special fuel sellers, special fuel users, and turbine fuel sellers shall maintain adequate security programs at all storage locations maintained in the State.

All bulk plants, terminals, and tank farms maintaining storage of motor fuels shall have approved seals on all meters indicating compliance with the requirements of the most current edition of the National Institute of Standards and Technology Handbook 44, as specified by Agriculture Article, §11-203(c), Annotated Code of Maryland.

Exemption certificates are issued to identify purchasers authorized to acquire tax exempt special fuel from a licensed special fuel seller, or turbine fuel seller. They are issued and applicable only for specific types of fuel and valid only for the period indicated on the certificate. Suppliers are responsible for the tax on all sales made to holders of expired or otherwise invalid exemption certificates and for the tax on all sales to purchasers not in possession of a valid exemption certificate, except as provided for in Regulation .02B(1) of this chapter.

The type of special fuel to be exempt from the tax will be determined by the certificate number as designated on schedules published by the Comptroller and available to licensed suppliers upon request.

If the exemption certificate holder discontinues business, the exemption certificate shall be returned to the Comptroller for cancellation. Exemption certificates are non-transferable and holders are expected to apply for and secure a new certificate under the following circumstances:

An application for an exemption certificate shall be on forms provided by the Comptroller and shall indicate the type of special fuel for which an exemption is sought.

An exemption certificate for kerosene may be issued to sellers of kerosene at retail if:

An exemption certificate for propane may be issued to sellers of propane at retail if:

Gasoline having an anti-knock index (R + M)/2 of greater than 98 may be considered racing fuel if the manufacturer's specifications have been filed with and approved annually by the Field Enforcement Bureau.

Racing fuel may not be:

“Control” means having absolute authority and responsibility for all fuels placed into and removed from a given tank or tanks. If “control” is claimed by a person leasing or renting a tank or tanks owned by another person, the lease or rental arrangement shall be for a period of at least 3 years beyond the date of the filing of the application for a dealer's license by the person claiming “control”.

“Maintaining” means same as “control”.

“Storage capacity” for a Class A licensee means a minimum of 1,000,000 gallons of gasoline and 1,000,000 gallons of special fuel.

Obtain written permission from the Comptroller before storing motor fuel or providing related services;

Report monthly on forms provided by the Comptroller; and

Provide a reconciliation of ownership of each product, monthly, to each owner maintaining an inventory at that facility.

Penalties.

Interest.

The Comptroller shall schedule a hearing before denial of an application for a motor fuel tax license or an exemption certificate.

A person may appeal the Comptroller's decision canceling a motor fuel tax license or an exemption certificate.

The hearing process is governed by COMAR 03.01.01.05.

Claims shall be supported by original invoices to be approved for refund. Invoices for fuel delivered into claimant's bulk storage tank shall show:

Invoices for fuel purchased through retail dispensers shall show:

Except as provided in §B of this regulation, carbon copies of invoices may not be accepted.

Carbon copies may be accepted when used in:

Credit card and retail service station invoices may not be acceptable for refund purposes unless they meet all the requirements of Regulation .02 of this chapter.

Credit card invoices containing only the purchaser's account number shall be accepted, if supporting documentation is provided that confirms the account number of the refund claimant.

Refund claimants for a motor fuel tax shall maintain an accurate record of metered gallons used for highway as well as for non-highway purposes.

Refund claimants for aviation fuel tax shall maintain an accurate record of metered gallons used in taxable and nontaxable modes of operation.

Refund claim information shall be reported on forms prescribed by the Comptroller.

Meet all the requirements of Regulation .02 of this chapter; and

Have been approved for use by the Comptroller.

Purchase invoices prepared by a claimant when the claimant operates the fuel dispenser (pump); and

Claims filed in the absence of satisfactory records for auditing purposes whenever the seller does not prepare an actual invoice at the time of sale.

A claimant shall notify the Comptroller immediately upon discovery of a leak or suspected leak and immediately implement the following procedure:

If, after this procedure is followed and it cannot be established that a leak exists, the suspected tank shall be tested by a procedure normal and acceptable to the petroleum industry, and evidence of the test results filed with the Comptroller, before a refund will be considered.

Refund claimants shall indicate on forms provided by the Comptroller their identifying number, currently in effect with the federal government, which shall be one of the following:

All applications shall be completed in full before submission.

Claims for refund authorized by Tax-General Article, §13-901(f)(1)(ii)4, Annotated Code of Maryland, shall be on refund forms provided or approved by the Comptroller and may not be deducted as a credit on any tax return or IFTA report.

Claims shall include:

Claims for refund of taxes paid on fuel used from a claimant's bulk storage facility shall:

If vehicles are fueled from claimant's bulk storage, detailed records required by Regulation .07 of this chapter shall be maintained for audit purposes. These records shall support all information submitted on the statement of fuel used as specified in §§B(2) and C(3) of this regulation and be in the form of fueling tickets, fueling logs, or other accounting records acceptable to the Comptroller, prepared at the time of vehicle fueling.

Claimants licensed under Tax-General Article, Title 9, Subtitle 3, Annotated Code of Maryland, maintaining bulk storage from which vehicles are fueled, shall report and pay the tax required before filing a claim for refund.

Claims shall be considered only for qualifying vehicles using Maryland tax-paid fuel.

A person desiring to appeal an assessment or denial of a refund may apply for an informal hearing which shall be held in accordance with procedures set forth in COMAR 03.01.01.04.

Informal hearings shall be held at a location determined by the Comptroller, and the location shall be set in the notice issued by the Comptroller.

Name of petroleum transporter;

Date and time loaded;

Volumetric gallons of each grade of product loaded;

Name of company operating facility where loaded;

Name of shipper (title holder of product after loading);

Name and address of ultimate consignee;

Any deviation from original manifest or loading ticket shall be indicated thereon or by an additional ticket, all of which must show the names and addresses of all parties involved in the transaction;

A serial numbering sequence; and

The certified octane rating as determined under the Federal Petroleum Marketing Practices Act for each grade of gasoline.

A loading ticket, manifest, or other documentation containing all information required by Regulation .05A—E of this chapter; and

Delivery tickets for each drop made indicating date, product, volume, name, and address for each individual delivery point.

Transporters of motor fuel from tank cleaning or spill clean-up operations shall be considered petroleum transporters regardless of whether the products are contaminated, commingled, or clean.

Transporters of used crankcase motor oils and solvents may not be considered petroleum transporters provided that no other motor fuel is being simultaneously transported.

A registered petroleum transporter who is also a common or contract carrier shall report all intrastate and interstate movements of motor fuel monthly in a format prescribed by the Comptroller.

A registered petroleum transporter who is not a common or contract carrier shall report movements of motor fuel upon the request of and on forms provided by the Comptroller.

The name required for display on the conveyance shall be the name of the petroleum transporter as registered under the federal employers' identification number.

The name may be an individual's name when it is a sole proprietorship.

A trade name, division name, or logo may be displayed in addition to, but not instead of, the registered petroleum transporter's name.

To facilitate the clean transfer of motor fuel from a distribution point to a purchaser, discharge valves of vehicles used in transporting motor fuel shall be color coded. Color coding shall conform to the American Petroleum Institute (API) recommended system which is found at COMAR 03.03.05.14.

Whenever a petroleum transport vehicle loads product at a bulk plant, terminal, or distribution point, the operator of the vehicle shall display a tag, an identification card, or other acceptable product identification marker on each discharge valve or connection on the vehicle.

The tag, identification card, or acceptable product identification marker shall be of the proper color code, indicating what product is in the line after loading the vehicle.

The color of the tag, identification card, or acceptable product identification marker shall match the color coding of equipment at the loading facility for each grade of motor fuel loaded.

Care should be exercised at out-of-State loading facilities as their color coding systems may differ from Maryland's.

The petroleum transporter should ensure that each vehicle is furnished with sufficient tags, identification cards, or acceptable product identification markers to be in compliance with this regulation.

Color coded tags, identification cards, or acceptable product identification markers may not be removed from a discharge valve or connection until a different product is loaded and after thorough draining or when replacement is necessary.

Deliveries of motor fuel may not be made to any facility not in compliance with the color coding requirements of COMAR 03.03.05.14.

The requirements of this regulation are not applicable to the storage or transportation of liquefied petroleum gas (LPG) or liquefied natural gas (LNG).

Motor carriers shall file an IFTA report and fuel use tax schedule of their operations in all IFTA jurisdictions and pay all taxes due all IFTA jurisdictions for each filing period. The report, schedule, and any taxes due shall be postmarked or received by the Comptroller not later than the last day of the next month following the close of the filing period.

Filing of Quarterly IFTA Reports and Schedules.

Failure to file IFTA reports and schedules on time, or to pay taxes when due, may result in the denial of additional identification markers for the current year and the denial of an annual renewal application. The registration and IFTA license of any motor carrier currently delinquent for one or more tax filing periods will be considered revoked, and the Maryland State Police or the Field Enforcement Bureau is authorized to remove all identification markers and copies or originals of IFTA licenses from the vehicles of a motor carrier operating on State highways.

Every motor carrier shall notify this office within 30 days concerning any change of name, address, federal identifying number, or Social Security number.

When more than one operating division operates vehicles over State highways, a single IFTA report and schedules shall be filed by the parent company covering all operations under one IFTA license.

Any credits accrued and applied for fuel purchased in any IFTA jurisdiction shall be supported by invoices as defined in §D of this regulation.

If a motor carrier elects to file for refund of the excess credit, the motor carrier may do so under the provisions of §§C and D of this regulation by entering the appropriate refund amount requested on the IFTA report.

A motor carrier requesting refund under the provisions of Tax-General Article, §9-214, Annotated Code of Maryland, shall have filed quarterly IFTA tax reports and schedules.

Every motor carrier shall be prepared to present evidence to substantiate a claim for refund of the excess purchases of fuel on which any IFTA jurisdiction motor fuel tax has been paid. Those motor carriers who maintain bulk storage shall have records substantiating inventories and gallons metered for each unit. The evidence shall consist of invoices of the vendor which comply with the requirements of Tax-General Article, §9-310, Annotated Code of Maryland, and shall show:

Credit card invoices containing the purchaser's account number without the purchaser's name shall be accepted, if supporting documentation is provided that confirms the account number of the refund claimant.

Fuel credit card invoices, bank credit card invoices, or other purchase receipts will not be acceptable for refund purposes unless they meet all the requirements of §§D(2) and E of this regulation.

Account receivable invoices and monthly statements will not be acceptable for refund purposes.

Claims accompanied by invoices on which there is evidence of alteration will be investigated. If the investigation proves an invoice has been altered in any respect, the altered invoice will not be honored.

Except as provided in COMAR 03.03.02.03, carbon copies of invoices may not be accepted.

Refund claimants shall maintain an accurate record of gallonage used for highway and non-highway purposes.

All refund claims submitted shall be prepared on forms supplied by the Comptroller. Supporting schedules shall be complete and all trip records and fuel invoices shall be maintained for audit. Microfilm records of these documents, instead of the original, may be accepted if prior approval is obtained from the Comptroller and retrieval of those microfilm records is available at time of audit.

The refund may not be payable unless tax paid on the number of gallons of motor fuel purchased in all IFTA jurisdictions exceeds tax due on the number of gallons of motor fuel used in all IFTA jurisdictions during the period covered by the refund claim.

Retail Electronic Invoicing System. Electronically generated documents may be considered original invoices if they:

The Comptroller may require an applicant for an IFTA license to post a surety bond if an examination of the applicant's prior filing history indicates:

The applicant shall post a bond in an amount equal to the estimated average annual net tax due to IFTA member jurisdictions rounded to the next even $1,000.

Bond amounts may be adjusted at the discretion of the Comptroller to insure compliance with the IFTA requirements.

Every motor carrier required to register and report to the Comptroller shall keep satisfactory records of:

Miles traveled, fuel purchased, and fuel use records shall distinguish the operation of vehicles not subject to the IFTA from those vehicles subject to the IFTA.

Records maintained on fuel purchases and use shall be identified as to type of fuel used.

A motor carrier may obtain a trip permit for an unregistered commercial motor vehicle from either the Field Enforcement Bureau or one of its duly authorized trip permit agents.

Registered and unregistered motor carriers may obtain a trip permit for an unregistered commercial motor vehicle, provided that the request for the trip permit includes:

Trip permits are valid for 15 consecutive days beginning and ending on the dates specified on the face of the trip permit.

Trip permits shall be carried in the cab of the vehicle whenever the vehicle is in the State, and they are not transferable between motor carriers or between vehicles.

A trip permit may not be issued to any licensee who is currently suspended or revoked in any IFTA jurisdiction.

A lessor, lessee, independent contractor, or household goods agent shall be licensed, liable for reporting, and liable for payment of fuel use taxes as required by the International Fuel Tax Agreement (IFTA).

A lessor regularly engaged in the business of leasing or renting motor vehicles without drivers, for compensation to licensees or to other lessees, may be deemed to be the licensee. The lessor may be issued a license if an application has been properly filed and approved by the base jurisdiction.

In the case of a carrier using independent contractors under long-term leases (30 days or more), the lessor and lessee are given the option of designating which party will report and pay fuel use tax. In the absence of a written agreement or contract, or if the document is silent regarding responsibility for reporting and paying fuel use tax, the lessee is responsible for reporting and paying fuel use tax. If the lessee (carrier) through a written agreement or contract assumes responsibility for reporting and paying fuel use taxes, the base jurisdiction for purposes of IFTA is the base jurisdiction of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor.

In the case of a short-term motor vehicle rental by a lessor regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to licensees or other lessees of 29 days or less, the lessor shall report and pay the fuel use tax unless the following two conditions are met:

In the case of a carrier using independent contractors under short-term/trip leases of 29 days or less, the trip lessor shall report and pay all fuel taxes.

Household Goods Carrier.

Filing of leases is not required as a condition of licensing, but leases shall be made available upon request of an IFTA jurisdiction.

IFTA Licenses and Identification Markers (Decals). IFTA licenses and decals shall be valid upon issuance and shall expire on December 31 of the year indicated on the license. A carrier is allowed a 2-month grace period during January and February to display the new year IFTA license and decals, if the carrier displays the immediate prior year IFTA license and decals.

Display of IFTA Decals. A motor carrier shall display an IFTA decal on the exterior portion of both sides of the cab, permanently affixed in a conspicuous place, and shall follow the directions for applying the decals to the vehicle as indicated on the reverse side of the decal. In the case of transporters, manufacturers, dealers, or driveway operations, the decals need not be permanently affixed, but may be temporarily displayed in a visible manner on both sides of the cab.

If an IFTA decal which has been issued by the Field Enforcement Bureau becomes illegible, the motor carrier may apply to the Field Enforcement Bureau for issuance of a duplicate decal.

A motor carrier shall be issued an IFTA license and a 2-decal set for each vehicle and the original license or copy shall be carried in the vehicle at all times. Once IFTA decals are affixed to a specific vehicle, they are not transferable to any other vehicle.

When a vehicle to which IFTA decals have been affixed is sold, traded, or otherwise disposed of by the operator, or passes from the control of the operator through lease or otherwise, the Field Enforcement Bureau shall be notified within 30 days of the cancellation. If the motor carrier neglects or fails to notify the Field Enforcement Bureau, the motor carrier is responsible for reporting the miles traveled by the vehicle and paying the tax due.

A motor carrier shall return unused IFTA decals to the Field Enforcement Bureau.

A Maryland domiciled carrier that is required under Tax-General Article, §9-219, Annotated Code of Maryland, to display IFTA decals on each commercial motor vehicle, and that purchases a commercial motor vehicle for titling in Maryland, has 30 days from the date of purchase to obtain an IFTA license and affix IFTA decals to the vehicle. The bill of sale or temporary registration identification documents issued under Transportation Article, §13-402 or 13-405, Annotated Code of Maryland, shall be carried in the cab of the vehicle during this 30-day period. The motor carrier may not operate the vehicle outside Maryland until IFTA decals are displayed.

Qualifications. In order to ensure a sufficient number and availability of locations where a motor carrier may purchase a trip permit required by Tax-General Article, §9-219, Annotated Code of Maryland, before entering this State, the Field Enforcement Bureau, in its discretion, may license applicants to issue trip permits if they meet the following qualifications:

Issuance of Trip Permits by Licensees.

Liability. The Field Enforcement Bureau is not liable for the illegal or improper acts of its licensees.

Inspection of Records. The applicant agrees to the availability and inspection of all its records by the Field Enforcement Bureau, during normal business hours, for the determination of compliance with the Field Enforcement Bureau requirements.

Transferability and Revocation of License. The license to sell trip permits is nontransferable and revocable for cause or for no cause upon 10 days written notice from the Field Enforcement Bureau to the licensee that the license is revoked. Licensees may terminate the license by giving 30 days written notice to the Field Enforcement Bureau. If the license arrangement is cancelled by either party, the licensee shall promptly turn in to the offices of the Field Enforcement Bureau all unissued trip permits, and the Field Enforcement Bureau shall refund their cost.

Penalties.

Interest.

A person desiring to appeal an assessment or denial of a refund may apply for an informal hearing which shall be held in accordance with procedures set forth in COMAR 03.01.01.04.

Informal hearings shall be held at a location determined by the Comptroller, and the location shall be set in the notice issued by the Comptroller.

In this chapter, the following terms have the meanings indicated, unless otherwise specified.

Terms Defined.

Exemptions. Gasoline not sold or dispensed to an ultimate consumer may be exempted from the requirements of this regulation upon written approval of the Bureau and the Department. Exemption from vapor pressure requirements shall only be granted in instances where the applicant complies with the requirements of proposed 40 CFR §80.27(e), which is incorporated by reference as published in the October 18, 1991, Federal Register (56 FR 52321). Requests for exemption from oxygen content requirements shall comply with the requirements of 40 CFR §80.27(e), except that all data shall be applicable to oxygen content rather than vapor pressure.

Unless the gasoline is segregated and clearly documented as noncomplying and not for sale or supply to an ultimate consumer in an applicable control area, a person may not produce, store, transport, supply, offer to supply, transfer or otherwise handle, sell, offer for sale, or dispense gasoline that does not meet the limits specified in §§C—N of this regulation when tested in accordance with the latest version of the specified test methods.

Distillation. Except as provided in §C(5) of this regulation, the rates of evaporation under the ASTM D-86 standards for the stated months of the year are:

Vapor Pressure.

V/L Ratio. Except as provided in §E(4) of this regulation, the V/L Ratio Temperature in °C (°F) for a Vapor-Liquid Ratio of 20 Minimum under ASTM-D5188 standards is:

Corrosion (ASTM D-130). Copper Strip Scale, No. 1, maximum at 50°C (122°F).

Sulfur (ASTM D-2622-21 or ASTM D-7039).

Existent Gum Content (ASTM D-381). 5 milligrams per 100 milliliters, maximum (after heptane wash).

Visible Water and Sediment. Shall be visually free of undissolved water, sediment, and suspended matter and shall be clear and bright at the ambient temperature or 21°C (70°F), whichever is higher.

Lead (ASTM D-3237).

Octane Test. The octane rating shall be determined in accordance with Title II of the Petroleum Marketing Practices Act and regulations adopted under that title. In addition, gasoline with an anti-knock index of 87 shall have a motor octane number not less than 82.0.

Phosphorus (ASTM D-3231). Unleaded — 0.0013 gram per liter maximum (0.005 gram per U.S. gallon maximum).

Gasoline with a lead content of 0.013 gram per liter (0.05 gram per U.S. gallon) or less shall only be sold as unleaded.

Oxygen Content.

Cloud Point (ASTM D-2500) — -7°C (20°F) maximum.

Flash Point (ASTM D-93).

Viscosity (ASTM D-445).

Visible water and sediment (ASTM D-1796) — 0.05 percent maximum by volume.

Carbon Residue on 10 percent Residuum (ASTM D-524).

Ash (ASTM D-482) — 0.01 percent, maximum.

Cetane.

Distillation (ASTM D-86).

Corrosion (ASTM D-130). Copper Strip, 3 hours at 50°C (122°F), No. 3 maximum.

Sulfur (ASTM D-2622 or ASTM D-7039) 0.0015 percent by mass, maximum.

Color.

No. 1-K Kerosene.

No. 2-K Kerosene.

A person acquiring kerosene for resale or redistribution as 1-K kerosene shall only acquire the product from a supplier who certifies to the purchaser that it is, in fact, 1-K kerosene.

Color. No. 1 and No. 2 fuel oil, containing greater than 0.0015 percent by mass sulfur, shall be dyed with Solvent Red 164 at the concentration spectrally equivalent to at least 3.9 pounds of the solid dye Standard Red 26 per 1,000 barrels in accordance with the mandates of the US EPA and IRS.

Cetane. Unless sold specifically and documented on all transfer documents as a burner fuel only, off-highway No. 2 fuel oil shall meet the same cetane requirements as stated in Regulation .02G of this chapter.

The Bureau shall label all retail dispensing pumps.

The label in §A of this regulation at the discretion of the Bureau, shall be placed as close as practical to the product dispensing nozzle or the money value display indicator.

The retailer shall further identify and label all retail dispensing pumps with the following:

A location registered under the Motor Fuel and Lubricants Law shall retain on the premises to which motor fuel has been delivered a loading ticket, a delivery ticket, or any other combination of documents that provides the following information:

Retention of documentation required by this regulation shall be limited to the four most recent deliveries of each grade of the product; however, all parties should be aware that federal retention requirements are for 5 years.

All documents shall be readily available for inspection at the delivery site during normal business hours.

To determine compliance with Business Regulation Article, §10-304.1, Annotated Code of Maryland, the Comptroller shall inspect the documents specified in Regulation .06A(1) of this chapter at the site of the registered location about which the complaint was made. If the information required in Regulation .06 of this chapter is not immediately available upon request, the Comptroller shall promptly determine the:

If product cost and freight charges are determined in accordance with §A(1) and (2) of this regulation, and the price computed is not lower than the selling price, the retailer shall immediately adjust the current retail price of motor fuel so that it is not below the cost computed under §A(1) and (2) of this regulation.

If required documents become available to review at the site during the inspection or are provided to the Comptroller within 3 business days from the date of inspection, and if the documents are determined by the Comptroller to be acceptable and show that the price computed is lower than or equal to the selling price, a violation may not be determined to have occurred and the Comptroller shall authorize appropriate price adjustments.

Definitions. As used in this regulation and for the purposes of the administration of Business Regulation Article, §10-303, Annotated Code of Maryland:

Registration. Each company proposing to sell motor fuel in Maryland as a wholesaler, diesel fuel seller, heating oil distributor, manufacturer, refiner, jobber, or retail service station dealer, shall:

Form of Application. Applications for Certificates of Registration for each class of motor fuel seller shall be in such form and require such information that is not inconsistent with these regulations and the Motor Fuel and Lubricants Law, as required by the Comptroller for enforcement of these regulations and that law.

Restriction on Issuance of Certificates of Registration to the Retail Service Station Dealer Class.

Issuance of Temporary Retail Service Station Dealer Certificates of Registration to Producers or Refiners.

A sample taken to determine compliance with the provisions of this chapter and COMAR 03.03.06 may not exceed 4 liters.

Unless otherwise indicated, all samples necessary to determine compliance with this chapter and COMAR 03.03.06 shall be taken in accordance with the methodologies detailed in 40 CFR Part 80, Appendix D, which is incorporated by reference.

Tolerances.

A facility in this State required to register under the Motor Fuel and Lubricants law and used to store motor fuel in fixed bulk storage tanks shall implement the American Petroleum Institute (API) recommended system of color coding equipment which is set out as follows:

Methods of Coloring.

A facility required to use the color coding system in this regulation shall post a sign or signs in a prominent location on the premises indicating the color scheme.

Product Transfer — Prohibition. Motor fuel may not be transferred from a shipping facility or delivered to a receiving facility in this State unless the:

For the specific purpose of this regulation, “commingled products” means:

Commingled products may be blended into gasoline for redistribution, provided the:

Addition of Commingled Products.

A receiving or shipping terminal may “line blend” its own commingled product into a receipt or shipment, provided the:

A Class A dealer may “tank blend” commingled products with gasoline, provided the:

A Class A dealer shall routinely accept, when possible, drainages of small quantities of commingled products from tank vehicles. Quantities over 5 gallons may be accepted at the discretion of the terminal.

Before a terminal owner/operator stores product for another product owner, a terminal agreement shall be filed with the Bureau.

Forms.

Additional terminal agreements which may be entered into during the calendar year shall be filed with the Bureau before the start of new activity.

A person receiving for distribution within the State a product containing a unique, advertised additive shall file an exchange agreement with the Bureau.

Forms.

Additional exchange agreements which may be entered into during the calendar year shall be filed with the Bureau within 10 days of initial product receipt.

Refinery specifications mean typical specifications and the designation of any unique additives placed into any grade of product marketed within the State. For proper identification, the refinery specification shall include the trade name and, for gasoline, the certified octane number determined in accordance with 15 U.S.C. §§2821—2824, Title II of the Petroleum Marketing Practices Act and regulations under the Act, 16 CFR §306.0—306.11. Refinery specifications shall be filed annually in December for the succeeding calendar year and at least 10 days before any change occurs after the annual filing.

Pipeline specifications instead of typical refinery specifications will be accepted only if the:

Motor fuel, as defined in Tax-General Article, §9-101, Annotated Code of Maryland, imported into the State or transported within the State via a vessel, shall be considered to be under a “Stop Sale” order until after it has been inspected, sampled, analyzed, and approved for sale or use by the Bureau.

Exceptions. Section A of this regulation does not apply under the following conditions:

Terminal operators shipping motor fuel for export to another state shall notify the Bureau at least 24 hours before the vessel's scheduled departure.

In this regulation and Regulation .25 of this chapter, and for the purposes of the administration of Business Regulation Article, §10-311, Annotated Code of Maryland, the following terms have the meanings indicated:

Terms Defined.

Applicability.

Applications for Extensions.

Action by Comptroller on Applications.

Operation Pending Action by Comptroller. Operation of a previously dealer-operated station by a producer or refiner in excess of the time period specified in §A of this regulation and during the pendency of an application made pursuant to §B of this regulation will not be allowed unless the contrary has been authorized in writing by the Comptroller.

Entitlement to Temporary Certificate of Registration. A decision granting an extension to the time period specified in §A of this regulation or an authorization issued under §D of this regulation entitles the recipient to a temporary retail service station dealer Certificate of Registration pursuant to Regulation .07E(2) of this chapter.

The storage and sale of diesel fuel and kerosene at retail may be alternated seasonally from the same storage or dispensing system, under the following conditions:

A motor fuel agent shall visit the specific location before the newly alternated fuel is sold to verify that, when changing from:

Under no circumstances will a seasonal switch between gasoline and any other type of motor fuel be permitted.

“Brand integrity” means that the purchaser of a major brand product does not mix or commingle that product with any other major brand, secondary brand, or unbranded products for resale or distribution as the major brand.

When Applicable.

For the purpose of this regulation, “blending” means to combine for resale or distribution two grades of motor fuel, previously registered with the Comptroller, to create another grade. Blending does not include the addition of any additive.

Blending at retail service stations shall be allowed only when:

Blending at bulk storage/terminal facilities shall be allowed only when:

Under certain approved conditions by the Comptroller, additives may be added to special fuel, if they do not contain any dyes or coloring agents when used in on-highway diesel fuel.

Additives that have been properly registered with and approved by the Comptroller may be added to special fuel by a bulk supplier licensed as a special fuel seller, provided the:

Who Shall Report. Each person maintaining fixed bulk storage in Maryland for resale or redistribution (retail service stations are exempt), shall file an inventory report when required by the Comptroller.

What to Report. The report shall state the exact location and the amount in gallons of the month-end inventory of gasoline, kerosene, No. 1-D diesel fuel, No. 2-D diesel fuel, No. 1 fuel oil, No. 2 fuel oil, and propane (LPG). Inventories not physically located in Maryland may not be reported.

How to Report.

When and Where to File a Report. An inventory report shall be received by the Comptroller within 5 working days following the end of the month for which inventory is being reported. If the report is mailed, it shall be postmarked within 3 days following the end of the month. This report is in addition to any other report required by the Comptroller.

A motor fuel seller registered under Business Regulation Article, Title 10, Annotated Code of Maryland, shall report the volume of sales for each type of motor fuel sold to end users in the State exclusive of the motor fuel tax. Tax-free sales to a reseller are not to be included in this report.

A report shall be filed for each fiscal year ending June 30. A completed annual report shall be forwarded to and received by the Comptroller by July 15.

The Comptroller shall furnish the report form.

Additives may be injected by a licensed dealer, other than a Class A dealer, with an “in-line blending” process or an equivalent or superior to in-line blending system to ensure proper additization of gasoline and only with prior approval from the Comptroller.

Form of Applications. Applications shall include the following:

The Comptroller reserves the right to rescind any prior approval of additive introduction into gasoline by a dealer other than a licensed Class A dealer, or issue a stop sale to said dealer, for failure to comply with any statute, regulation or licensing requirements, or for product failure after the Comptroller’s laboratory analysis.

In this chapter, the following terms have the meanings indicated. The definitions in COMAR 03.03.05.01 also apply to this chapter.

Terms Defined.

The requirements of §§B—D of this regulation apply only in a control area and for control periods after:

During the period from November 1 through the following February 28 or, in leap years, the following February 29, the Bureau and the Department shall determine the oxygen content of gasoline in accordance with the requirements specified in §§C—D of this regulation. Regulated parties are free to use other accepted test methods for quality assurance programs. However, these programs do not exempt regulated parties from enforcement action. Regulated parties are encouraged to develop a correlation program with the Bureau and the Department to reduce the probability of inconsistent test results.

Test Methods.

Oxygen Calculation.

A person described in this regulation shall generate and maintain, for a period of not less than 2 years, records detailing compliance information as required by this regulation. Records pertaining to vapor pressure are required only for gasoline produced, stored, transported, supplied, offered for supply, transferred or otherwise handled, sold, offered for sale, or dispensed during the period from May 1 through September 15, inclusive, and records pertaining to oxygen content are required only for gasoline produced, stored, transported, supplied, offered for supply, transferred or otherwise handled, sold, offered for sale, or dispensed during an oxygenated gasoline control period. However, a person should consider that gasoline produced before May 1 for vapor pressure and before the beginning of an oxygenated gasoline control period for oxygen content will remain in the distribution system after the applicable control begins, and therefore should consider keeping appropriate records before the required dates in order to facilitate a defense in instances when violations are detected. All records shall be made available for review by the Bureau or the Department during normal business hours or submitted to the Bureau or the Department for review upon request. These record-keeping requirements are in addition to any motor fuel record keeping required under Tax-General Article, Annotated Code of Maryland.

Refiners, Importers, and Blenders. Refiners, importers, and blenders shall, for each separate quantity of gasoline produced or imported, generate and maintain records containing the following information:

Terminal Operators. A person who owns, leases, operates, or controls a gasoline terminal shall, for each separate quantity of gasoline handled, generate and maintain records containing the following information:

Retailers, wholesale purchaser-consumers, carriers, resellers, and distributors shall generate and maintain records containing the following information:

The documentation addressed by this regulation may be kept in electronic format and shall be available to the Comptroller upon demand.

Each time gasoline is transferred between May 1 and September 15, inclusive, or during a control period, as provided for under Regulation .03 of this chapter, the transferor shall provide the transferee a transfer document which shall legibly and conspicuously contain the following information:

The information required in §A of this regulation is in addition to any other information, such as bills of lading or invoices, which would otherwise accompany gasoline transfer, and may be incorporated into existing documentation or provided as a separate document.

While the transfer documentation detailed in §A of this regulation is only required during the period indicated, a person should consider that gasoline produced before May 1 for vapor pressure and before the beginning of an oxygenated gasoline control period for oxygen content will remain in the distribution system after the applicable control begins, and therefore should consider documenting transfers before the required dates in order to facilitate a defense in instances when violations are detected.

The documentation addressed by this regulation may be kept in electronic format and shall be available to the Comptroller upon demand.