Applications for licenses shall be on forms provided by the Comptroller and shall indicate the type and class of license sought, as follows: Dealer: Class “A”, Class “B”, Class “C”, Class “D”, Class “G-Temporary”; Special Fuel Seller; Special Fuel User; Distributor; or Turbine Fuel Seller. 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: When there has been a change in the name of the company even though the ownership remains the same; When the business of an individual or a partnership is taken over and continued by a corporation; When the licensee is a corporation and surrenders its charter and the business is continued by an individual, a partnership, or any other legal entity; When an individual is licensed as a dealer, user, or seller, dies, and the business is continued by another person or entity; When an individually owned business is taken over and continued by a partnership; When a business owned by a partnership is taken over and continued by an individual; When a business which is owned by a partnership is taken over and continued by an individual, another partnership, or corporation; When any other situation arises in which a business that is owned by one type of legal entity is taken over and continued by a different legal entity; or When there is a change in the Federal Identification Number. 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. When a licensed dealer fails to meet the qualifications required by Tax-General Article, §9-319, Annotated Code of Maryland, for the specific class of license held, the dealer shall immediately notify the Comptroller. The dealer shall provide the Comptroller any additional information requested by the Comptroller. The Comptroller may then issue to the dealer any alternative license to which the dealer may be entitled. Sales of motor fuel shall be made with the motor fuel tax, as applicable, included. Exceptions are as follows: Special fuel: When sold and delivered into a storage tank permanently and solely connected to a heating plant, commercial stationary apparatus, stationary vapor burning apparatus (including propane tanks not connected to the vehicle propulsion system on recreational type vehicles), or watercraft, When sold to the holder of a valid exemption certificate, provided the certificate exempts that particular type of special fuel; or When sold to agencies and instrumentalities of the United States Government; Aviation turbine fuel when sold to: Carriers and operators as specified in Tax-General Article, §9-303(c)(1) and (2), Annotated Code of Maryland, The State of Maryland, Local governments of this State, Agencies and instrumentalities of the United States Government, or Foreign governments. All dealers, special fuel users, special fuel sellers, and turbine fuel sellers shall provide the name and address of the person or persons responsible for preparing the applicable tax report. This person shall provide all information requested in the following areas: 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. A special fuel user engaged in the business of agriculture may request approval to file an annual fuel tax return. To qualify for the annual filing option, a special fuel user shall: Be engaged in the business of agriculture; Have an average taxable use of 2,000 gallons or less; and Submit a written request and receive written approval from the Comptroller, before filing. Special Fuel Sellers and Turbine Fuel Sellers. Special fuel sellers and turbine fuel sellers shall maintain records of all special fuels acquired, sold, or used, both taxable and nontaxable. Records shall include the total miles the seller's own vehicles were operated and all records shall be available at the time of the audit. All sales or use of special fuels made from retail type dispensers at retail service stations shall be made with tax included (kerosene may be excluded provided the seller is the holder of a valid Exemption Certificate). 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: The “fuels” sold move physically from the possession of the vendor to that of the vendee; or The “fuels” sold remain in the storage of the vendor, the full quantity being immediately available to the vendee for disposition. 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: To purchasers of gasoline possessing a valid Class A or D license; To purchasers of gasoline possessing a valid Class C license and a letter of special permission issued by the Motor Fuel Tax Bureau for the product to be acquired and exported; To purchasers of special fuels possessing a currently valid exemption certificate for type of special fuel being acquired; The transportation of motor fuel shall be accomplished by vehicles owned and operated by a petroleum transporter registered under Business Regulation Article, Title 10, Subtitle 4, Annotated Code of Maryland. 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: Contain the amount of Maryland motor fuel tax charged; or if the tax is not charged, the statement “Maryland motor fuel tax is not included”; Contain the date of delivery; Contain the name and address of purchaser; Contain the name and address of seller pre-printed on the invoice; Contain the number of gallons; Be serially or sequentially numbered; and Contain the trade name and type of fuel. 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. Inventory. If inventory is reported on a temperature adjusted basis (“net”), all receipts shall be reported on that basis. Sales. If inventories and receipts are reported on a “net” basis (temperature adjusted), and any sales are made on a “gross” (not temperature adjusted) basis, the sales shall be documented and the adjustments resulting therefrom reported on the appropriate form. Licensees Reporting on a Gross (Not Temperature Adjusted) Basis. Inventory. If inventory is reported on a “gross” (not temperature adjusted) basis, all receipts shall be reported on that basis. Sales. If inventories and receipts are reported on a “gross” (not temperature adjusted) basis, and any sales are made on a “net” (temperature adjusted) basis, the sales shall be documented and the adjustments reported on the appropriate form. “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: Liquefied natural gas: 100 cubic feet at 14.73 psi and 60?F shall be considered as 1 gallon of liquid motor fuel; Compressed natural gas: 1 cubic foot multiplied by .00831 shall be considered as 1 gallon of liquid motor fuel. Liquid Propane Gas. To determine the quantity of liquid propane gas consumed, the following formula will be used: If product is gauged in decitherms, divide by 9.1 to convert to gallons; If product is gauged in pounds, divide by 4.24 to convert to gallons (To convert decitherms to pounds, multiply by .465). 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: Imported, exported, or moved within the State without the written approval of the Comptroller; Commingled and inventoried in any gasoline or special fuel storage within the State without written approval of the Comptroller. 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. Licensed dealers under normal report procedures may take credit for motor fuel taxes on gallonage for which a refund would be allowed under these regulations, provided that adequate records are available at the time of the audit to support the refund credits. 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 shall keep a monthly physical inventory record which shall show the quantity of each product on hand at the close of each month's business which shall be the result of actual measurements taken physically on that date. At locations where multiple ownership of inventories are maintained, segregated or commingled, whether called throughput, terminal, or other identification, a reconciliation of ownership of each product shall be presented to each owner by the entity having control of the inventory. The physical inventory reconciliation schedule shall be reflective of the same date and time for all parties. Tax liability accrues on special fuel upon delivery to a retail service station unless that retail service station recipient is the holder of a valid exemption certificate for that specific type of fuel. Inventories of motor fuel that are the property of the supplier, but in the care of a service station dealer, are taxable upon delivery as are deliveries to supplier operated retail service stations. Kerosene, dyed fuel, and propane at supplier operated service stations are excluded, provided they are not sold for taxable use. 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. All authorized dealers, special fuel sellers, and turbine fuel sellers are required to report separately, on appropriate schedules, commingled, casinghead or natural gasoline, benzene, naphtha, heating oil, alcohol, additives, or any other component, or any combination of them, that is blended into a refined motor fuel after the fuel has been received in this State. The schedule shall indicate the percentages and gallonages of the various materials blended. 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: When there has been a change in the name of the company or entity even though the ownership remains the same; When the business of an individual or a partnership is taken over and continued by a corporation; When the licensee is a corporation and surrenders its charter and the business is continued by an individual, a partnership, or any other legal person; When an individual licensed as a dealer, user, or seller, dies, and the business is continued by another person or entity; When an individually owned business is taken over and continued by a partnership; When a business owned by a partnership is taken over and continued by an individual; When a business which is owned by an individual, partnership, or corporation is taken over and continued by a different individual, partnership, or corporation; When any other situation arises in which a business that is owned by one type of legal entity is taken over and continued by a different legal entity; When there is a change in the Federal Identification Number; or When the use of a previously exempted product for which the exemption was granted is changed. 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: Kerosene is the only special fuel (other than propane) offered for sale and never sold for taxable use; All other taxable special fuels (other than propane) offered for sale are purchased tax paid from the supplier; or The seller is a licensed special fuel seller. An exemption certificate for propane may be issued to sellers of propane at retail if: Propane is the only special fuel (other than kerosene) offered for sale and never sold for taxable use; All other taxable special fuels (other than kerosene) offered for sale are purchased tax paid from the supplier; or The seller is a licensed special fuel seller. 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: Considered a motor fuel as defined in Tax-General Article, §9-101, Annotated Code of Maryland; Blended with any other gasoline and offered for sale; or Used as a fuel, either straight or blended, in a motor vehicle operated on a highway. For the purpose of the administration of Tax-General Article, §9-319, Annotated Code of Maryland, relating to storage capacity requirements: “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. Unlicensed entities that provide motor fuel storage facilities or related services, or both, shall: 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. If a person fails to pay a tax when due, the Comptroller may assess a penalty in an amount not to exceed 10 percent of the tax. If a person fails to file a return when due, the Comptroller may assess a penalty in an amount not to exceed $25. Interest. If a person fails to file a return when due, interest shall be assessed as prescribed in Tax-General Article, Title 13, Annotated Code of Maryland. Interest will not be assessed, however, unless the computed interest for a return exceeds $2. Interest on unpaid tax assessments shall be assessed as prescribed in Tax-General Article, Title 13, Annotated Code of Maryland, but the $2 minimum does not apply. 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. Tax-General Article, §2-103, Annotated Code of Maryland Effective date: April 1, 1973 Regulations .01—.04; .07C, E, F; .08C, D; .09A, D, F; .12A, C; .13C; .14C; .15A; .17 amended effective November 22, 1982 (9:23 Md. R. 2255) Regulations .02, .07F, and .13C amended, and .03G adopted effective October 8, 1984 (11:20 Md. R. 1740) Regulation .07F amended effective September 14, 1981 (8:18 Md. R. 1476) Regulation .18 adopted effective November 22, 1982 (9:23 Md. R. 2255); repealed effective October 8, 1984 (11:20 Md. R. 1740) Chapter repealed effective August 26, 1985 (12:17 Md. R. 1698) Regulations .01—.20 adopted effective August 26, 1985 (12:17 Md. R. 1698) Regulation .21 adopted as an emergency provision effective May 21, 1987 (14:12 Md. R. 1348); emergency status expired August 30, 1987 (Emergency provisions are temporary and not printed in COMAR) Chapter revised effective January 23, 1989 (16:1 Md. R. 66) Regulation .20 repealed effective August 6, 1990 (17:15 Md. R. 1853) Chapter revised effective August 20, 1990 (17:16 Md. R. 1987) Regulations .01, .02, .04—.06, and .17 amended, and new Regulation .21 adopted effective September 28, 1992 (19:19 Md. R. 1703) Regulation .05E amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .06C amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .07A amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .09B amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .10A amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .11B amended effective January 14, 1999 (26:1 Md. R. 19) Regulations .13C amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .16E, F amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .17A amended effective January 14, 1999 (26:1 Md. R. 19); May 16, 2022 (49:10 Md. R. 562) Regulation .18C adopted effective January 14, 1999 (26:1 Md. R. 19) Regulation .20A amended effective May 8, 1995 (22:9 Md. R. 644); January 14, 1999 (26:1 Md. R.19) Regulation .21 amended effective January 14, 1999 (26:1 Md. R. 19) Claims for the refund of motor fuel tax shall be made on forms required by the Comptroller and verified by the affidavit of the claimant or an officer if the claimant is a corporation. Claims shall be supported by original invoices to be approved for refund. Invoices for fuel delivered into claimant's bulk storage tank shall show: Actual date of delivery; Name and address of purchaser; Name and address of seller preprinted on the invoice; The amount of motor fuel tax charged; If tax is not charged, the statement “Maryland Motor Fuel Tax is not included”; Number of metered gallons purchased, type of fuel, and total cost of fuel; and Serial or sequential invoice numbers. Invoices for fuel purchased through retail dispensers shall show: Actual date of purchase; Name and address/location of seller; Name of purchaser; purchaser's signature shall be accepted on electronically generated invoices; Number of gallons purchased, type of fuel, and total cost of fuel; Serial or sequential invoice numbers; time referenced electronically generated retail invoices shall be accepted as serialized. Except as provided in §B of this regulation, carbon copies of invoices may not be accepted. Carbon copies may be accepted when used in: Meter imprinters to print the number of gallons metered; or Multi-part forms if: The original (top part) is used as a shipping/delivery ticket, The form has been approved by the Comptroller, and The part used as an invoice has preprinted on it the notation “Original Invoice” or other language approved by the Comptroller. 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. Accounts receivable invoices, buy back invoices, statements, and assignments are not acceptable for refund purposes. Claims accompanied by altered invoices shall be investigated thoroughly. If the investigation proves an invoice has been altered in any respect, the altered invoice may not be honored. 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. Electronically generated documents may be considered original invoices if they: Meet all the requirements of Regulation .02 of this chapter; and Have been approved for use by the Comptroller. The following shall be disallowed: 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: Determine physical inventory using gauge sticks; Maintain daily meter readings of all pumps; Maintain daily gauge stick readings of all tanks; Maintain gauge stick readings before and after each tank receipt; and Provide a copy of the credit memorandum from a supplier or casualty underwriter, or an affidavit to the fact that one or both have rejected any claim or part of a claim. 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: Federal identification number; Federal employers' identification number; or Social Security number. 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: Original invoices as prescribed by Regulation .02 of this chapter, and, in instances where the fuel is purchased from retail service stations, the invoices shall also include: Vehicle license tag number, or Vehicle unit number; A statement of fuel used, which indicates the following for each vehicle involved in the claim: Vehicle license tag number or unit number, and Total gallons of fuel used. Claims for refund of taxes paid on fuel used from a claimant's bulk storage facility shall: Include original invoices for all bulk purchases; Be submitted only after all fuel represented by that invoice, or invoices, is actually used and accounted for; and Include a statement of fuel used, which indicates for each vehicle, the information in §B(2) of this regulation, and if any fuel is used from the same bulk storage, for vehicles for which the tax is nonrefundable, indicate those gallons used. 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. Tax-General Article, §2-103, Annotated Code of Maryland Effective date: April 1, 1973 Regulations .01, .02D, .04, .06—.08, .10, .15A, .16 amended effective November 22, 1982 (9:23 Md. R. 2255) Regulations .01, .02, .08, .13, and .15A amended effective October 8, 1984 (11:20 Md. R. 1740) Regulation .14 repealed effective November 22, 1982 (9:23 Md. R. 2255) Regulation .17 adopted effective November 22, 1982 (9:23 Md. R. 2255); repealed effective October 8, 1984 (11:20 Md. R. 1740) Chapter repealed effective August 26, 1985 (12:17 Md. R. 1699) Regulations .01—.12 adopted effective August 26, 1985 (12:17 Md. R. 1699) Regulation .13 adopted effective November 17, 1986 (13:23 Md. R. 2479) Regulation .13 amended effective September 7, 1987 (14:18 Md. R. 1963) Chapter revised effective January 23, 1989 (16:1 Md. R. 66) Regulations .01—.04 amended effective September 28, 1992 (19:19 Md. R. 1703) Regulation .07 amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .08 adopted effective August 20, 1990 (17:16 Md. R. 1987) Regulation .12 repealed effective August 6, 1990 (17:15 Md. R. 1853) Regulation .13 recodified to Regulation .12 and amended effective August 20, 1990 (17:16 Md. R. 1987) Regulation .12 amended effective January 14, 1999 (26:1 Md. R. 19) Regulation .13 adopted effective September 28, 1992 (19:19 Md. R. 1703) Regulation .13A amended effective January 13, 1999 (26:1 Md. R. 19) Vehicles and vessels transporting petroleum products shall carry a loading ticket or manifest containing the following information: 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. Each pot or compartment of each vehicle shall be labeled to indicate the certified gallonage capacity, based on a volumetric gallon equaling 231 cubic inches of liquid, on each side of the pot or compartment in a place and manner that shall be readily discernible at a distance of 50 feet when the vehicle is not in motion. The gallonage capacity of each pot or compartment need not be labeled if the vehicle bears an identification plate affixed by the manufacturer indicating the certified gallonage capacity by pot or compartment. A loading ticket or manifest as described in Regulation .05 of this chapter is required to transport commingled products as defined in COMAR 03.03.05.15. Petroleum transporters making deliveries of fuel oil or kerosene for use as a heating fuel only by the purchasers, and when the gallons to be delivered are unknown until the actual delivery, shall have in their possession: 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. Any designated agent of the Field Enforcement Bureau of the Comptroller of the Treasury, or any police officer as defined in the Transportation Article, §11-147, Annotated Code of Maryland, may examine and inspect a vehicle, its manifest, its carried product, and other information in order to determine compliance with Business Regulation Article, Title 10, Subtitle 4, Annotated Code of Maryland, and related regulations. 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. Vehicles transporting motor vehicle fuel or aviation fuel in one or more cargo tanks having a combined capacity exceeding 1,000 pounds (approximately 140 U.S. gallons), shall display on all 4 sides of the vehicle, hazardous materials placards as prescribed by the United States Department of Transportation. 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). Whenever the operator of a petroleum transporter conveyance is intending to load a different grade or type of motor fuel than was previously contained in a pot, compartment, or hold, the operator shall first ensure complete drainage before loading. Business Regulation Article, §10-202 and Title 10, Subtitle 4; Tax-General Article, §2-103; Annotated Code of Maryland Effective date: June 30, 1975 (2:14 Md. R. 1010) Chapter revised effective December 16, 1977 (4:26 Md. R. 2022) Regulation .01 repealed and new Regulation .01 adopted effective September 7, 1987 (14:18 Md. R. 1963) Regulation .02 repealed and new Regulation .02 adopted effective September 7, 1987 (14:18 Md. R. 1963) Regulation .03 amended effective September 7, 1987 (14:18 Md. R. 1963) Regulation .04 amended effective September 7, 1987 (14:18 Md. R. 1963) Regulations .05J, K and .11 adopted effective November 22, 1982 (9:23 Md. R. 2256) Regulation .05K amended effective September 7, 1987 (14:18 Md. R. 1963) Regulations .05, .07, and .08 amended effective August 20, 1990 (17:16 Md. R. 1987) Regulation .09 amended effective September 7, 1987 (14:18 Md. R. 1963); August 20, 1990 (17:16 Md. R. 1987) Regulation .11 repealed and new Regulation .11 adopted effective September 7, 1987 (14:18 Md. R. 1963) Regulations .12—.14 adopted effective September 7, 1987 (14:18 Md. R. 1963) Regulation .15 adopted effective August 20, 1990 (17:16 Md. R. 1987) Regulation .16 adopted effective August 20, 1990 (17:16 Md. R. 1987) Chapter revised effective January 14, 1999 (26:1 Md. R. 20) Regulations .10 amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .15 amended effective May 16, 2022 (49:10 Md. R. 562) In this chapter, unless otherwise specified, “IFTA” means the International Fuel Tax Agreement. The provisions and requirements of the International Fuel Tax Agreement (IFTA) Articles of Agreement, Procedures Manual, and Audit Manual apply to the fuel use, taxation, registration, and reporting requirements of motor carriers licensed under IFTA by Maryland, without reference to any other Maryland statute or regulation under Tax-General Article, §9-205, Annotated Code of Maryland. 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. Motor carriers shall file on a quarterly basis for quarters ending the last day of March, June, September, and December. Annual Filing of Quarterly IFTA Reports and Schedules. Motor carriers that operate less than 5,000 miles annually in all IFTA jurisdictions except Maryland may submit a written request to the Comptroller to file the four quarterly reports and schedules once annually by January 31 for the prior year. The motor carrier shall have written permission from the Comptroller to file on the annual basis described in §B(2) of this regulation, after the Comptroller receives approval from all other affected IFTA jurisdictions. Reports shall be signed by an officer or authorized representative of the motor carrier, certifying that the IFTA reports and schedules are true and correct. 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: For invoices where fuel is delivered into bulk storage of the motor carrier: Actual date of delivery, Name and address of purchaser, Preprinted name and address of seller on the invoice, The amount of motor fuel tax charged, If tax is not charged, the statement “Maryland (or appropriate other IFTA jurisdiction) Motor Fuel Tax is not included”, Number of metered gallons purchased, type of fuel, and total cost of fuel, and Serialized invoice number; For retail service station invoices: Date of purchase, Seller's name and address/location, Purchaser's name (in the case of a lessee/lessor agreement, invoices shall be accepted in either name, providing a legal connection can be made to the reporting party), Number of gallons and total cost of fuel, Fuel type, and Company unit number or vehicle license plate number and state. 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: Meet all the requirements of this regulation; and Have been approved for use by the Comptroller. 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 has failed to file a quarterly return; The applicant has failed to pay required tax; or A financial guarantee is necessary to protect the interest of the State or other IFTA jurisdiction. 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: The miles traveled in all operations within: Maryland, and Each other jurisdiction; and The fuel purchased within: Maryland, and Each other jurisdiction where the fuel is used in qualified motor vehicles. 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: Name, address, federal identification number or Social Security number of the motor carrier; and Make, serial number, and state in which the vehicle is licensed. 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: The lessor has a written rental contract which designates the lessee as the party responsible for reporting and paying the fuel use tax; and The lessor has a copy of the lessee's IFTA fuel tax license which is valid for the term of the rental. 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. In the case of a household goods carrier using independent contractors, agents, or service representatives, under intermittent leases, the party liable for motor fuel tax is: The lessee (carrier) when the qualified motor vehicle is being operated under the lessee's jurisdictional operating authority; or The lessor (independent contractor, agent, or service representative) when the qualified motor vehicle is being operated under the lessor's jurisdictional operating authority. Under §F(1)(a) of this regulation, the base jurisdiction for purposes of IFTA is the base jurisdiction of the lessee (carrier), regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor or lessee. Under §F(1)(b) of this regulation, the base jurisdiction for purposes of IFTA is the base jurisdiction of the lessor, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes. 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. The Comptroller is empowered to suspend or revoke the IFTA license and decals of any motor carrier, upon a finding by the Comptroller that the registrant has failed to comply with Tax-General Article, Title 9, Subtitle 2, Annotated Code of Maryland, or any regulation promulgated by the Comptroller under that statute. The revocation shall be made only after 30 days notice to the registrant to comply with all sections of the law and regulations. Reapplication for registration will not be granted until a motor carrier has complied with all sections of the law and regulations. The Maryland State Police shall remove and return to the Field Enforcement Bureau all IFTA licenses and decals that are being used in any improper manner. Any person who willfully and knowingly makes a false statement, orally or in writing, in the form of a receipt for the sale of motor fuel for the purposes of obtaining or attempting to obtain or to assist any other person, partnership, or corporation to obtain or attempt to obtain a credit or refund or reduction of liability for taxes under this subtitle will be notified to the effect that all permits and registrations have been revoked. 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: The applicant shall have 3 years experience in the issuance of trip permits or other similar experiences; The applicant shall possess a business rating, reputation, and capability satisfactory to the Field Enforcement Bureau; The applicant shall be capable of providing the service at all times specified by the Field Enforcement Bureau; The applicant shall be capable of delivering copies of all issued trip permits to the offices of the Field Enforcement Bureau by the next working day; and The applicant shall possess the financial capability to purchase trip permits from the Field Enforcement Bureau in advance of sale in quantities of not less than 200. Issuance of Trip Permits by Licensees. Licensees shall sell trip permits in the manner prescribed by the Field Enforcement Bureau. The licensee may charge the purchaser of a trip permit a fee for its service not to exceed the rate established by the Field Enforcement Bureau. Licensees may only sell permits to a motor carrier for a specific commercial motor vehicle. Permits may not be sold for resale. 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. If a person fails to file an IFTA report and schedules when due, a penalty shall be assessed in the amount of 10 percent of the tax due, with a minimum assessment of $50. A penalty of $50 shall be assessed when an IFTA report and schedules are not filed when due, even if taxes are not due. If a person files an IFTA report and schedules timely but, for whatever reason, underpays the proper tax due an IFTA jurisdiction, a penalty shall be assessed in the amount of 10 percent of the additional tax due, with a minimum assessment of $50. Interest. If a person fails to file a return when due, interest shall be assessed as prescribed in Tax-General Article, Title 13, Annotated Code of Maryland. Interest on unpaid tax assessments shall be assessed as prescribed in Tax-General Article, Title 13, Annotated Code of Maryland. 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. Tax-General Article, §§2-103 and 9-205, Annotated Code of Maryland Effective date: June 1, 1974 Regulation .01 amended effective November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963) Regulation .01A amended effective September 14, 1981 (8:18 Md. R. 1476) Regulation .01C amended effective June 2, 1978 (5:11 Md. R. 881); September 14, 1981 (8:18 Md. R. 1476) Regulation .01D amended effective September 14, 1981 (8:18 Md. R. 1476) Regulation .02A amended effective September 7, 1987 (14:18 Md. R. 1963) Regulation .02C amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .02F amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .02H amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .03 amended effective October 20, 1986 (13:21 Md. R. 2319) Regulation .04A amended effective September 7, 1987 (14:18 Md. R. 1963) Regulation .05 amended effective June 2, 1978 (5:11 Md. R. 881) Regulation .05A amended effective September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); August 26, 1985 (12:17 Md. R. 1699) Regulation .05C amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .05D amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .05F amended effective March 23, 1979 (6:6 Md. R. 509); September 14, 1981 (8:18 Md. R. 1476) Regulation .05 repealed and new Regulation .05 adopted effective September 7, 1987 (14:18 Md. R. 1963) Regulation .06 amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .07 amended effective June 2, 1978 (5:11 Md. R. 881); September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963) Regulation .08 amended effective September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963) Regulation .09 amended effective September 14, 1981 (8:18 Md. R. 1476); November 22, 1982 (9:23 Md. R. 2257); September 7, 1987 (14:18 Md. R. 1963) Regulation .10 amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .12 amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .12F amended effective June 2, 1978 (5:11 Md. R. 881) Regulation .13 adopted effective June 2, 1978 (5:11 Md. R. 881) Regulation .13 amended effective November 22, 1982 (9:23 Md. R. 2257) Regulation .13A amended effective September 7, 1987 (14:18 Md. R. 1963) Regulation .13B amended effective September 7, 1987 (14:18 Md. R. 1963) Regulation .13E amended effective September 7, 1987 (14:18 Md. R. 1963) Regulation .14 adopted effective November 22, 1982 (9:23 Md. R. 2257); repealed effective August 26, 1985 (12:17 Md. R. 1699) Chapter revised effective January 23, 1989 (16:1 Md. R. 66) Regulation .12 repealed effective August 6, 1990 (17:15 Md. R. 1853) Chapter revised and recodified from COMAR 03.03.06 to COMAR 03.03.04 effective August 20, 1990 (17:16 Md. R. 1987) Regulation .01 amended effective October 26, 1992 (19:21 Md. R. 1890) Regulations .02, .05, .07, .10, and .12 amended, and Regulation .14 adopted effective September 28, 1992 (19:19 Md. R. 1703) Regulation .13A amended effective May 8, 1995 (22:9 Md. R. 644) Chapter revised effective January 14, 1999 (26:1 Md. R. 20) Regulations .01-2C amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .03 amended effective June 21, 2004 (31:12 Md. R. 911) Regulations .05A amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .07 amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .08 amended effective June 19, 2006 (33:12 Md. R. 996) Regulations .10 amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .12 amended effective May 16, 2022 (49:10 Md. R. 562) In this chapter, the following terms have the meanings indicated, unless otherwise specified. Terms Defined. “ASTM” means the American Society for Testing and Materials. “Bureau” means the Field Enforcement Bureau of the Comptroller of the Treasury. “Conventional gasoline” means any gasoline meeting the minimum specifications established by ASTM, but not meeting the standards for reformulated gasoline established by the United States Environmental Protection Agency (US EPA). “Department” means the Department of the Environment. “Dispenser” means a device from which motor fuel is transferred from storage at a retail outlet or wholesale purchaser-consumer facility to an ultimate consumer. “Ethanol blend” means gasoline which contains at least 9 percent by volume ethanol, excluding denaturants, as determined in accordance with one of the test methodologies specified in COMAR 03.03.06.03B. “Ethanol-enhanced oxygenated gasoline” means gasoline containing less than 9 percent by volume ethanol, excluding denaturants, as determined in accordance with one of the test methods specified in COMAR 03.03.06.03B. “Ethanol flex fuel” means automotive fuel blend of gasoline and 51 to 83 percent volume ethanol, commercially known as “E85”, for use in ground vehicles equipped with flexible-fuel spark ignition engines. “Gasoline” means any fuel sold for use in internal combustion spark-ignited engines and which is commonly or commercially known or sold as gasoline, including oxygenated gasoline. “Motor fuel” means gasoline or special fuel. “Motor vehicle fuel” means motor fuel. “Nonoxygenated gasoline” means gasoline which contains no oxygenates or oxygenates in quantities less than or equal to 0.4 percent oxygen by weight. “Oxygenate” means any oxygen-containing compound approved for use in gasoline under the US EPA's substantially similar definition or under a bona fide US EPA oxygenate waiver. “Oxygenated gasoline” means gasoline which contains one or more oxygenates in quantities exceeding 0.4 percent oxygen by weight. “Oxygenated gasoline control area” means a geographic area in which all gasoline sold or dispensed during an oxygenated gasoline control period is subject to the minimum oxygen content requirements of Regulation .01-1N of this chapter. There are three oxygenated gasoline control areas as follows: The Northeast Oxygenated Gasoline Control Area is comprised of Cecil County; The Baltimore Oxygenated Gasoline Control Area is comprised of Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, Howard, and Queen Anne's counties; and The Washington Oxygenated Gasoline Control Area is comprised of Calvert, Charles, Frederick, Montgomery, and Prince George's counties. “Oxygenated gasoline control period” means the 4-month period which begins each November 1 and runs without interruption through the following February 28 or, in leap years, the following February 29. “Oxygenate waiver” means an authorization granted by the Administrator of the US EPA under §211(f)(4) of the federal Clean Air Act which permits the addition of specified oxygenates in specified volumes to unleaded nonoxygenated gasoline. “Ozone attainment areas” means the geographic areas of the State which are not ozone nonattainment areas. “Ozone nonattainment area” means the geographic areas of the State comprised of Baltimore City and Anne Arundel, Baltimore, Calvert, Carroll, Cecil, Charles, Frederick, Harford, Howard, Kent, Montgomery, Prince George's, and Queen Anne's counties. “Reformulated gasoline (RFG)” means gasoline meeting the requirements of the US EPA definition established under §211(k) of the federal Clean Air Act (42 U.S.C. §7545). “Reformulated gasoline control area” means ozone nonattainment areas. “Retail outlet” means an establishment at which motor fuel is sold or offered for sale to an ultimate consumer. “Special fuel” means any fuel other than gasoline which is sold for use in motor vehicles. “Substantially similar definition” means an interpretive rule issued by the Administrator of the US EPA under §211(f)(1) of the federal Clean Air Act which permits the addition of specified oxygenates in specified volumes to unleaded nonoxygenated gasoline. The most recent definition appeared in the February 11, 1991, Federal Register (56 FR 5352). “Transfer” means the physical transfer of custody or the transfer of title of motor fuel from one person to another, excluding the sale or dispensing of motor fuel at a retail outlet or wholesale purchaser-consumer facility for direct consumption in a motor vehicle. “Ultimate consumer” means a person who purchases or obtains motor fuel for direct consumption in an automotive engine and who does not transfer or offer to transfer the motor fuel to any other person following purchase or receipt. “Unleaded gasoline” means gasoline which is produced without the use of any lead additive and which contains not more than 0.013 gram of lead per liter (0.05 gram of lead per gallon) and not more than 0.0013 gram of phosphorus per liter (0.005 gram of phosphorus per gallon). “VOC control region 1” means all of the Maryland reformulated gasoline control area except for Cecil County. “VOC control region 2” means that portion of the Maryland reformulated gasoline control area consisting of Cecil County. “Wholesale purchaser-consumer” means an ultimate consumer who receives delivery of motor fuel solely intended for ultimate consumption into a storage tank with a capacity of at least 550 gallons which is substantially under the control of the ultimate consumer. “Wholesale purchaser-consumer facility” means an establishment at which a wholesale purchaser-consumer stores and dispenses motor fuel for direct consumption in a motor vehicle or an internal combustion engine. 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: Evaporation — during the months of, January, February, March, and December 10 percent — 50°C (122°F) maximum Evaporation — during the months of, January, February, March, and December 50 percent — 110°C (230°F) maximum 90 percent — 185°C (365°F) maximum End Point — 225°C (437°F) maximum Residue — 2 percent maximum Evaporation — during the months of April, October, and November 10 percent — 55°C (131°F) maximum 50 percent — 62.8°C (145°F) minimum 50 percent — 113°C (235°F) maximum 90 percent — 185°C (365°F) maximum End Point — 225°C (437°F) maximum Residue — 2 percent maximum Evaporation — May through September 15 10 percent — 70°C (158°F) maximum 50 percent — 77°C (170°F) minimum 50 percent — 121°C (250°F) maximum 90 percent — 190°C (374°F) maximum End Point — 225°C (437°F) maximum Residue — 2 percent maximum An ethanol blend and an ethanol-enhanced oxygenated gasoline are subject to the following limit: 50 percent — 66°C (150°F) minimum Evaporation — September 16 through September 30 10 percent — 60°C (140°F) maximum 50 percent — 66°C (150°F) minimum 50 percent — 116°C (240°F) maximum 90 percent — 185°C (365°F) maximum End point — 225°C (437°F) maximum Residue — 2 percent maximum An ethanol blend and an ethanol-enhanced oxygenated gasoline are subject to the following limit: 50 percent — 66°C (150°F) minimum To accommodate for the receipt of new product and disbursement of old stock, the following allowances are made from the fixed change-over date: Product complying with the specifications for the volatility period beginning May 1 is acceptable up to 45 days before May 1; Product complying with the specifications for the volatility period beginning September 16 is acceptable only on or after September 16; and Product complying with the specifications for any other volatility period is acceptable 15 days before or after the fixed change-over date. Vapor Pressure. The vapor pressure of gasoline may not exceed the following limits when tested in accordance with ASTM Test Method D-5191 or as otherwise required under COMAR 03.03.06: 103 kPa (15.0 psi) during the months of January, February, and December; 93 kPa (13.5 psi) during the months of March, April, October, and November; 62 kPa (9.0 psi) during the month of May; During the months of June, July, and August and from September 1 through September 15: 51 kPa (7.4 psi) for all gasoline sold, intended for sale, or supplied to an ultimate consumer in RFG VOC control region 1, 57.2 kPa (8.3 psi) for all gasoline sold, intended for sale, or supplied to an ultimate consumer in RFG VOC control region 2, and 62 kPa (9.0 psi) for all gasoline sold, intended for sale, or supplied to an ultimate consumer in ozone attainment areas; and 79 kPa (11.5 psi) September 16 through September 30, inclusive. Ethanol blend and ethanol-enhanced oxygenated gasoline are subject to the following conditions: An ethanol blend is considered to be in compliance with §D(1)(a), (b), (c), (d), and (e) of this regulation if its measured vapor pressure does not exceed the limit specified by more than 1.0 psi, the gasoline portion of the product was not produced and identified as VOC gasoline by the refiner, and the product is sold only for use or distribution outside a VOC control region; An ethanol-enhanced oxygenated gasoline is considered to be in compliance with §D(1)(a), (b), and (e) of this regulation if its measured vapor pressure does not exceed the limit specified by more than 1.0 psi from September 16—May 31, the gasoline portion of the product was not produced and identified as VOC gasoline by the refiner, and the product is sold only for use or distribution outside a VOC control region; A 15-day transition period is allowed before and following each change in vapor pressure limits as specified in §D(1) of this regulation, except as follows: Gasoline complying with the April vapor pressure limit is allowed throughout May at retail outlets and wholesale purchaser-consumer facilities; Gasoline complying with the April vapor pressure limit is not allowed after April 30 at any location other than retail outlets or wholesale purchaser-consumer facilities, unless the gasoline also complies with the May vapor pressure limit; Gasoline complying with the May vapor pressure limit is not allowed after May 31, unless the gasoline also complies with the June vapor pressure limit; and Gasoline complying with the September 16 through September 30 vapor pressure limit is not allowed before September 16, unless the gasoline also complies with the September 1 through September 15 vapor pressure limit. 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: 39°C (102°F) during the months of January, February, and December. 42°C (107°F) during the months of March, April, October, and November. 47°C (116°F) during the months of May, June, July, August, and September. To accommodate for the receipt of new product and disbursement of old stock, the following allowances are made from the fixed change-over date: Product complying with the specifications for the volatility period beginning May 1 is acceptable on or after March 16; Product complying with the specifications for the volatility period beginning September 16 is acceptable only on or after September 16; and Product complying with the specifications for any other volatility period is acceptable 15 days before or after the fixed change-over date for that volatility period. Corrosion (ASTM D-130). Copper Strip Scale, No. 1, maximum at 50°C (122°F). Sulfur (ASTM D-2622-21 or ASTM D-7039). Conventional gasoline — 0.0095 percent by mass, maximum. Reformulated gasoline — 0.0095 percent by mass, maximum. 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). Unleaded — 0.013 gram per liter maximum (0.05 gram per U.S. gallon maximum). Leaded — Greater than 0.013 gram per liter (0.05 gram per U.S. gallon), except that after December 31, 1995, leaded gasoline may not be sold for or used as fuel in a highway motor vehicle. 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. Gasoline shall meet the oxygen content requirements specified in §N(2)—(4) of this regulation when tested in accordance with ASTM Test Method D-4815-22 or as otherwise required under COMAR 03.03.06. Oxygenates used in gasoline shall be of a type and quality allowed under either the US EPA's substantially similar definition or under a bona fide US EPA oxygenate waiver. The maximum allowable oxygen content of gasoline shall be limited to that established under either the US EPA's substantially similar definition or that established under a bona fide US EPA oxygenate waiver. Phase Separation. Oxygenated gasoline shall consist of a single homogenous mixture, presenting no indication of phase separation when tested at the following temperatures in accordance with the test methods described in X8 of ASTM Specification D-4814-24a, as follows: -9°C (16°F) during the month of January; -8°C (17°F) during the month of February; -3°C (27°F) during the month of March; 3°C (37°F) during the month of April; 9°C (48°F) during the month of May; 10°C (50°F) during the months of June, July, August, and September; 4°C (39°F) during the month of October; -2°C (28°F) during the month of November; and -8°C (17°F) during the month of December. All No.1-D diesel fuel and No. 2-D diesel fuel shall meet the requirements of the following specifications, when tested in accordance with the latest version of the American Society for Testing and Materials Methods of Tests: Cloud Point (ASTM D-2500) — -7°C (20°F) maximum. Flash Point (ASTM D-93). No. 1-D Diesel — 38°C (100°F) minimum. No. 2-D Diesel. 52°C (125°F) minimum (May, June, July, August, September, October). 43°C (110°F) minimum (November, December, January, February, March, April). Viscosity (ASTM D-445). No. 1-D Diesel. Kinematic at 40°C, 1.3 centistokes minimum, 2.4 centistokes maximum. Kinematic at 100°F, 1.4 centistokes minimum, 2.5 centistokes maximum. No. 2-D Diesel. Kinematic at 40°C, 1.9 centistokes minimum, 4.1 centistokes maximum. Kinematic at 100°F, 2.0 centistokes minimum, 4.3 centistokes maximum. Visible water and sediment (ASTM D-1796) — 0.05 percent maximum by volume. Carbon Residue on 10 percent Residuum (ASTM D-524). No. 1-D Diesel, 0.15 percent, maximum. No. 2-D Diesel, 0.35 percent, maximum. Ash (ASTM D-482) — 0.01 percent, maximum. Cetane. Number method (ASTM D-613) 40, minimum. Index method (ASTM D-976) 40, minimum. Distillation (ASTM D-86). No. 1-D Diesel — 90 percent point, 288°C (550°F) maximum. No. 2-D Diesel — 90 percent point: 282°C (540°F) minimum*; 338°C (640°F) maximum. * When cloud point less than -12°C (10°F) is specified, the minimum viscosity shall be 1.7 cSt (or mm2/s) and the 90 percent point shall be waived. 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. On-highway diesel fuel may not contain any dyes or coloring agents. Non-highway diesel fuel 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 mandate of the US EPA and Internal Revenue Service (IRS). It may not be used in any vehicle designed for on-highway use. A fuel other than those meeting the specifications detailed in Regulation .01-1 or .02 of this chapter may not be sold, offered for sale, or dispensed for use in motor vehicles unless approval for the sale or dispensation has been obtained in advance from the Bureau and the Department. Kerosene shall be a refined petroleum distillate consisting of a homogenous mixture of hydrocarbons essentially free from water, inorganic, acidic, or basic compounds, and excessive amounts of particulate contaminants. It shall meet the requirements of the following specifications when tested in accordance with the latest version of the American Society for Testing and Materials Methods of Tests: No. 1-K Kerosene. Color (ASTM D-156). The color may not be darker than +16 Saybolt Scale. Dyeing agents may not be used to change the naturally refined color except when required by the US EPA or IRS. When dyeing of 1-K kerosene is required, it 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 federal mandates. Flash Point (ASTM D-56)—38°C (100°F) minimum. Distillation (ASTM D-86)—End point 300°C (572°F) maximum. Sulfur (ASTM D-4045)—0.04 percent by mass, maximum. No. 2-K Kerosene. Color (ASTM D-156). The color, before dyeing, may not be darker than +16 Saybolt Scale. Additionally, 2-K kerosene 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 federal mandate to indicate that it is illegal for use as a propelling fuel in a vehicle designed for on-highway use. Flash Point (ASTM D-56)—38°C (100°F) minimum. Distillation (ASTM D-86)—End point 300°C (572°F) maximum. Sulfur (ASTM D-4045)—0.30 percent by mass, maximum. 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. No. 1 fuel oil is a distillate oil intended for vaporizing pot-type and similar burners. No. 2 fuel oil is a distillate oil for general purpose domestic heating use in burners not requiring No. 1 fuel oil. Both shall meet the requirements of the following specifications, when tested in accordance with the latest version of the American Society for Testing and Materials Methods of Tests: No. 1 Fuel Oil No. 2 Fuel Oil A. Flash Point (ASTM D-93). 38°C (100°F) minimum 38°C (100°F) minimum B. Pour Point (ASTM D-97). -18°C (0°F) maximum -7°C(20°F) maximum C. Visible Water and Sediment (ASTM D-1796) percent by volume maximum. 0.05 0.05 D. Viscosity (ASTM D-445). (1) Kinematic at 40°C, centistokes. (a) Minimum 1.3 1.9* (b) Maximum 2.1 3.4 (2) Kinematic at 100°F, centistokes. (a) Minimum 1.4 2.0* (b) Maximum 2.2 3.6 E. Gravity (ASTM D-287). API minimum. 35° 30° F. Distillation (ASTM D-86). (1) 10 percent point maximum 216°C (420°F) (2) 90 percent point maximum 288°C (550°F) 338°C (640°F) G. Sulfur (ASTM D-1552) percent by mass shall not exceed the following maximums: (1) On and after July 1, 2016 0.05 0.05 (2) On and after July 1, 2019 0.0015 0.0015 (3) No. 1 and No. 2 Fuel Oil that was stored in this State by the ultimate final consumer prior to July 1, 2019, which met the applicable maximum allowable sulfur content for fuel oil before July 1, 2019, set forth in §G(1) of this regulation at the time it was stored, may be used by the ultimate consumer in the State on and after July 1, 2019, until the supply is depleted. 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: The brand name and trade name of the product being sold except a trade name may not be used if it conflicts with one of the required grade names shown in §C(3) of this regulation; For gasoline, the octane rating 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 for each grade dispensed; For gasoline, the grade name in accordance with one of the following for each grade dispensed: “Regular” if the certified octane is 87 or 88; “Mid-grade” or “Plus” if the certified octane is 89 or 90; and “Premium” if the certified octane is 91 and above, but less than 98; For special fuel, the type of fuel which shall be either: 1-K Kerosene; 2-K kerosene; 1-D diesel (if purchased or sold as same); or Diesel, as applicable; and Identification as required under §C(3) and (4) of this regulation, which shall be in letters and numerals of uniform size, a minimum 2 inches high with a minimum 1/4 inch stroke. 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: Date, terminal name, city of origin, shipper, consignee name, volume of each grade, and type of motor fuel loaded and delivered including the product cost and freight charges per gallon; For gasoline, including oxygenated fuels, the certified minimum octane rating; For oxygenated and reformulated gasolines, the maximum concentration of individual oxygenates; and Name of the petroleum transporter making the delivery. 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: Product cost by type of motor fuel as specified in Business Regulation Article, §10-301(d)(1), Annotated Code of Maryland; and Freight charges referenced in Business Regulation Article, §10-301(d)(2), Annotated Code of Maryland, at the rate of 3 cents per gallon. 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: “Company” means a sole proprietorship, partnership, corporation, or other business entity; “Enclosed work areas” means a service bay; “Jobber” means a company other than a wholesaler, that acquires possession of motor fuel for bulk resale; “Manufacturer” means producer; “Motor vehicle fuel” or “motor fuel” means gasoline, special fuels, or both; “Producer” means a company which engages (or which has an agent, a parent company, a subsidiary, or a joint venturer which engages) in extracting crude oil from the earth; “Refiner” means a company which engages (or which has an agent, a parent company, a subsidiary, or a joint venturer which engages) in refining crude oil into motor fuel; “Retail outlet” means the real property and its improvements from which motor fuel is sold at retail and delivered into the tanks of motor vehicles or vessels; “Retail service station dealer” means a company offering motor fuel for sale at retail; “Service of motor vehicles” means at least lubrication, oil change, tire repair, battery charge, and replacement of fan belts, radiator hoses, and wiper blades; “Subsidiary” means a company which has more than 50 percent of its assets, capital stock, or voting securities held directly or through attribution by another company or which as a practical matter is controlled by another company. Practical control shall be presumed to exist if 15 percent or more of the assets, capital stock, or voting securities of a company are held directly or through attribution by another company; “Wholesaler” means a “dealer” or “distributor” as defined in Tax-General Article, §9-301, 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: Obtain a Certificate of Registration from the Bureau before initially selling or exposing or offering for sale any motor fuel; Obtain a renewal Certificate of Registration from the Bureau before June 1 before selling or exposing or offering for sale motor fuel during each State fiscal year after initial registration; and Display prominently a current Certificate of Registration at the location from which the motor fuel is sold. 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. A Certificate of Registration may not be issued to a company whose retail outlet has been physically changed in any manner, excepting normal maintenance, after July 1, 1977, and before October 1, 2000, unless the retail outlet contains enclosed work areas from which the applicant offers or will offer the service of motor vehicles, irrespective of whether motor vehicle fuel is purchased. Exceptions. This restriction does not apply to the following applications: An applicant whose retail outlet did not have enclosed work areas immediately before being physically changed in any manner, excepting normal maintenance; or An applicant at whose retail outlet motor fuel was not previously sold or exposed or offered for sale. Issuance of Temporary Retail Service Station Dealer Certificates of Registration to Producers or Refiners. Subject to §D of this regulation, a producer or refiner which satisfies the criteria specified in Regulation .25A will be issued upon application a 90-day retail service station dealer Certificate of Registration. Subject to §D of this regulation, a producer or refiner entitled, under Regulation .25E of this chapter, temporarily to operate a retail service station will be issued upon application a temporary retail service station dealer Certificate of Registration, the term of which will be coextensive with the period of entitlement. For the purposes of this subsection an authorization which expires due to the grant of an extension under Regulation .25 of this chapter will constitute an enlargement of the original period of entitlement. A Certificate of Registration issued under these regulations does not authorize the operation of a retail service station in violation of the provisions of Business Regulation Article, Title 10, Subtitle 3, Annotated Code of Maryland. 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 producer of motor fuels shall formulate, blend, and store fuels in such a manner that consideration is given for testing tolerances. Gasoline samples obtained for analysis shall meet: Vapor pressure specifications within a tolerance limit equal to +0.3 psi; and Oxygen content specifications within a tolerance limit equal to +/-0.30 percent oxygen by weight. Excluding gasoline vapor pressure and oxygen content analyses, the tolerance limits for motor fuel analyses shall be as determined by the Bureau. A “Stop Sale” notice will be issued to retail service station dealers for gasoline and special fuels failing to meet established specifications. The supplier shall be notified accordingly by the retail service station dealer, and a release will be awarded only after final disposition has been agreed upon by the Bureau. Confirmation of disposition shall be submitted in writing and contain an explanation for its failure to meet specification. The “Stop Sale” applies only to the location where sample analysis indicates specification violation. Upon discovery of fuels failing to meet established specifications, physical inventory shall be taken and reported in the confirmation of disposition. A “Stop Sale” notice will be issued when petroleum products maintained in bulk plant facilities fail to meet specifications. Confirmation of disposition of “Stop Sale” product in the bulk plant and all such products returned to that bulk plant shall be submitted in writing and contain an explanation for its failure to meet specification. The registrant shall immediately notify all customers that have received inferior product of the Bureau's findings and make any arrangements necessary to replace or adjust to specifications all products failing the specification. All records showing the delivery, notification, return, replacement, or adjustment of product shall be made available to the motor fuel agents upon request. A warning shall be issued to the retail service station dealer whenever an underground storage tank is found to contain 2 inches or more of water as determined by the use of water-finding paste on a gauge stick. A “Stop Sale” order will be issued if the water is not removed within the time period prescribed by the Bureau. All tank trucks, tank trailers, and tank semitrailers making metered sales or deliveries of gasoline or special fuels shall maintain a meter calibrated for that specific fuel being dispensed. Whenever a vehicle is utilized to deliver both gasoline and special fuels, separate meters shall be maintained and calibrated for gasoline and special fuels respectively, unless a National Type Evaluation Program (NTEP) approved multi-product metering system is utilized. 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: Gasoline — unleaded: E10 Regular — white; E10 Midgrade — blue; E10 Premium — red; E0 Regular — white with black "0"; E0 Midgrade — blue with white "0"; E0 Premium — red with white "0"; Isobutanol blend — blue with yellow “IB”; E15 — copper with black “E15”; E85 — copper with black “E85”; Diesel: On-Road (USLD) — yellow; On-Road (USLD) >5 percent biodiesel — yellow with black “BXX” (where “XX” is the biodiesel percentage); Off-Road (Dyed Red) — yellow with red “OFF”; Off-Road (Dyed Red) >5 percent biodiesel — yellow with red “OFF” and black “BXX” (where “XX” is the biodiesel percentage); Biodiesel — light blue; Fuel Oil: No. 1 — dark green with black "1"; No. 2 — dark green with black "2"; Kerosene — brown; Vapor recovery — orange; Observation or Monitoring Wells — white with black triangle in the center. Methods of Coloring. Facilities Except Bulk Plants, Terminals, and Distribution Points. The required color scheme shall be applied to all fillbox (manhole) covers and shall extend at least 3 inches beyond the fillbox cover to prevent mismatching of fillboxes with the appropriate cover. If the bulk storage tank is an above-ground tank, the required color coding shall be affixed to the tank close to the fill and to the draw-off point and be at least 8 inches in overall diameter. Other methods of identification such as tagging fillbox adapters, rims, or the use of plastic inserts inside the fillbox rim may be used in addition to the required coloring, but not as a substitute, for underground storage tanks. Bulk Plants, Terminals, and Distribution Points. The required color scheme shall be prominently placed on all rack-loading and vapor recovery equipment, as close as possible to the point of product or vapor transfer. Storage tanks may be labeled using the appropriate color scheme when operating conditions permit. Required color coding shall be maintained clean and clearly legible at all times. 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: Shipping and receiving facilities are in compliance with this regulation; and Petroleum transporter is in compliance with COMAR 03.03.03.15. For the specific purpose of this regulation, “commingled products” means: Pipeline interface or transmix; or A mixture of gasoline and light distillates. Commingled products may be blended into gasoline for redistribution, provided the: Person blending is a common carrier pipeline or holds a valid Class A dealer license issued by this State, and has obtained written approval from this State to blend; and Resultant product, after blending, at the time of the first sale or delivery, meets the specifications for the particular grade as prescribed by Regulation 01-1 of this chapter. Addition of Commingled Products. A common carrier pipeline may add commingled products only once to a particular batch of product between the point of origin and the final receiving terminal. If a commingled product is added to a batch, the: Quantity of the commingled product may not exceed 0.25 percent by volume of the batch movement and shall be dispersed throughout the batch; and Common carrier pipeline shall: Notify the receiving terminal, in advance of receipt, of the quantity added, and Indicate the volume of the commingled product added on the delivery ticket. A receiving or shipping terminal may “line blend” its own commingled product into a receipt or shipment, provided the: Finished blend meets all applicable specifications of Regulation .01-1 of this chapter and the specifications for the product as registered with this State by the Class A dealer; and Volume of the commingled product does not exceed 0.25 percent of the product being shipped or received, and is dispersed throughout the batch. A Class A dealer may “tank blend” commingled products with gasoline, provided the: Class A dealer can demonstrate the blending does not result in stratification; Volume of the commingled product does not exceed 0.25 percent of the tank volume at any time; and Finished blend meets all applicable Maryland specifications and the minimum specifications for the product as registered by the Class A dealer. 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. Terminal agreements shall be filed annually during the month of December for the anticipated succeeding calendar year's activity, on forms provided by the Bureau. A separate form shall be completed for each terminal location. A form required by this section shall: Address only the specific type and grade of product being stored for the product owner; and Contain original signatures of persons authorized to represent the terminal owner/operator and the product owner. 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. Exchange agreements shall be filed annually during the month of December for the succeeding calendar year's activity, on forms provided by the Bureau. A form required by this section shall: Address only the specific product to be acquired at each point of acquisition; and Contain original signatures of persons authorized to represent the receiver and the supplier. 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: Pipeline company makes direct terminal deliveries in Maryland; and Importer of the product is not a refiner. Additive specifications may be filed in detail or by means of an acceptable analytical method to be used to determine the presence or absence of any unique additive. Refinery or additive specifications considered to be a trade secret should be so indicated and shall meet with the concurrence of the Comptroller. Under normal operating procedures, all petroleum products refined and imported into Maryland shall be inventoried by the refined product identification used on the shipping or delivery manifest. Warnings will be issued at the discretion of the motor fuel agent for violations such as, but not limited to, price sign violations, failure to register, and unposted certificate of registration. If, after the time prescribed by the agent, the violation still exists, a “Stop Sale” notice will be issued. 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: Motor fuel imported from sources outside the State (foreign or domestic) may be placed directly into working tanks for immediate sale and distribution, providing the: Cargo manifest and specifications are available at time of inspection and those specifications meet or exceed State minimum requirements; and Bureau is notified by the receiving terminal operator at least 24 hours before the vessel's arrival. Motor fuel transported intrastate may be placed directly into working tanks for immediate sale, use, and distribution providing the: Shipper holds a valid dealer, special fuel seller, or special fuel user license issued pursuant to Tax-General Article, §9-318, Annotated Code of Maryland; Shipper of product for resale or distribution has on file with the Bureau specifications for that grade of motor fuel; and Bureau is notified by the receiving terminal operator at least 24 hours before the vessel's arrival. 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. “Commissioned agent” means a company (or any of its officers, directors, agents, or employees) which directly or indirectly receives, from a producer or refiner and for participation in the operation of a station, compensation determined by reference to the profits earned or revenues generated at a station. “Company” means a sole proprietorship, partnership, corporation, or other business entity. “Company personnel” means one or more employees, servants, or agents of a producer, a refiner, or a subsidiary of a producer or refiner. “Fee arrangement” means any agreement whereby a company (or any of its officers, directors, agents, or employees) directly or indirectly receives, from a producer or refiner and for participation in the operation of a station, compensation determined other than by reference to the profits earned or revenues generated at a station. “Motor vehicle fuel” or “motor fuel” means gasoline, special fuels, or both. “Producer” means a company which engages (or which has an agent, a parent company, a subsidiary, or a joint venturer which engages) in extracting crude oil from the earth. “Refiner” means a company which engages (or which has an agent, a parent company, a subsidiary, or a joint venturer which engages) in refining crude oil into motor fuel. “Retail service station” or “station” means the real property and its improvements from which motor fuel is sold at retail and delivered into the tanks of motor vehicles. “Retail service station dealer” or “dealer” means a company engaged in the operation of a station, which company (and its officers, directors, agents, and employees) is neither a producer, refiner, commission agent, party to a fee arrangement, subsidiary of a producer or refiner, nor operated by company personnel. “Subsidiary” means a company which has more than 50 percent of its assets, capital stock, or voting securities held directly or through attribution by another company or which as a practical matter is controlled by another company. Practical control shall be presumed to exist if 15 percent or more of the assets, capital stock, or voting securities of a company are held directly or through attribution by another company. Applicability. After July 13, 1979, a producer or refiner may operate a retail service station previously dealer-operated for a period not to exceed 90 days and pursuant to a Certificate of Registration issued under Regulation .07E(1) of this chapter if the: Dealer has died (if a sole proprietor); Dealer has vacated the station in breach of the lease; Dealer has been evicted by the producer or refiner for cause; Producer or refiner has notified all of its dealers in the State of its intent to withdraw from the Maryland market in compliance with Title 1 of the Petroleum Marketing Practices Act (15 U.S.C. §2801 et seq.) and the dealer has agreed to vacate the station before the announced market withdrawal date; or Producer or refiner has acquired the retail service station from the dealer as a result of a: Purchase of the retail service station property from the dealer, or Merger or acquisition of stock in the dealer or its parent corporation by a producer or refiner. Pursuant to this section, the producer or refiner may immediately commence operation of the retail service station and operate it for 5 business days under the Certificate of Registration issued to the prior dealer if, during that period, the producer or refiner notifies the Bureau in writing of its commencement. The notification shall set forth the date operation by the producer or refiner commenced, the address of the retail service station, and a statement of the reason for the operation by the producer or refiner. The date of commencement shall constitute the initial day of the 90-day temporary operation period. Applications for Extensions. Applications to the Comptroller for an extension of the time period specified in §A of this regulation will be considered only if they are submitted in writing and, with regard to each station specified therein, contain: The station address; The basis for the applicability of §A of this regulation; The name and address of the previous dealer; The reason why the extension is sought; The duration of the extension sought; and A complete description of the actions being taken to locate a new dealer. Applicants shall promptly provide additional information when requested by the Comptroller. Action by Comptroller on Applications. Decisions by the Comptroller on applications made pursuant to §B of this regulation will be written and sent by certified mail to the applicant at the return address appearing on the application. The Comptroller may grant or deny the extension sought or may grant an extension for a period of time less than that sought in the application. 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: The retailer or the supplier notifies the Bureau at least 10 days before the change; The notification includes the registered name and specific locations of the facility along with the product change date; and Dispensing equipment is properly identified as required under Regulation .05 of this chapter to reflect the new type of fuel actually being dispensed. A motor fuel agent shall visit the specific location before the newly alternated fuel is sold to verify that, when changing from: Diesel fuel to kerosene, the: Storage tanks are reasonably dry before the receipt of kerosene into storage, Delivery of kerosene and adequate purging of affected lines and dispensing equipment have taken place, and Proper identification of dispensers as to the type and grade of fuel has been made; A kerosene to diesel fuel: Current sales records, meter readings, and inventory are reconciled to the last day of kerosene sales, The Maryland motor fuel tax on any remaining inventory of kerosene is promptly paid, when applicable, as required under Tax-General Article, §9-314, Annotated Code of Maryland, Any bulk transfer to another location of unsold kerosene is properly documented, and The proper identification of dispensers as to the type and grade of fuel has been made. 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. Brand integrity is applicable whenever a refiner files refinery specifications and trade name for a product to be marketed in this State. The branded product in §B(1) of this regulation may only be acquired from: Terminal source points designated by the refiner; or Distributors, as authorized by the refiner, who make: Direct deliveries of the product from the refiner's designated terminal to the distributor's customers, or Deliveries of the product from the distributor's segregated storage to the customer's storage tanks. 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: Brand integrity, when applicable, is maintained; A fixed blender or variable-blending retail dispensing device, meeting all 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, is used; The dispensing device is manufactured by a nationally recognized manufacturer; The dispensing device contains adequate security devices to prevent the change of any blend ratio except by personnel authorized by the dispenser manufacturer; and The blended product is registered with the Comptroller and, in the case of a major brand, does not conflict with the annual registration of the brand owner and is done with the written concurrence of the brand owner. Blending at bulk storage/terminal facilities shall be allowed only when: In the case of gasoline, the blending is done by the holder of a valid Class A dealer license who: Except in the case of ethanol flex fuel, uses an “inline blending” system between the bulk storage tanks and loading rack or under short-term emergency conditions and with the prior approval of the Comptroller, directly supervises the loading of blended product; Registers the resultant blend with the Comptroller before making a sale and on an annual basis after that; and Furnishes the petroleum transporter, at the time of loading, with sufficient documentation for compliance with COMAR 03.03.03.05. In the case of special fuel, the blending is done by the holder of a valid Class S special fuel seller license who: Blends previously registered special fuel products with the resulting blend conforming to specifications contained in Regulations .02 and .04 of this chapter; and Furnishes the petroleum transporter, at the time of loading, with sufficient documentation for compliance with COMAR 03.03.03.05. 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: Introduction of any additive to branded special fuel products is done with the prior written concurrence of the brand owner on an annual basis, with a copy of the concurrence forwarded to the Comptroller; Additive manufacturer has no restrictions on the use of the additive in any type of special fuel application; and Additive is introduced by an automatic metering pump or injection system at the: Time of product receipt, into a bulk storage tank of the special fuel seller; Loading rack of the special fuel seller at the time of filling a delivery truck; or Retail service station or fueling site in a manner approved by the Comptroller. 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. Each person required to file an inventory report shall file the report on forms provided by the Bureau. All inventories shall be reported in actual physical gallons. Book inventories are not acceptable. A report shall be filed regardless of whether there is end-of-month inventory. If there is no end-of-month inventory, the report shall so state. 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: A description of the system used to inject the additive into fuel, including a detailed summary of the additive injection and delivery process, verifiable identification that the process is “in-line blending” or equivalent to or superior to in-line blending, and any security systems to ensure proper additization of gasoline; Detailed system schematics and manufacturer information describing the equipment used in the system; and The EPA registration for the additive which shall be approved by the Comptroller. 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. Business Regulation Article, §§10-202, 10-308, 10-309, and 10-323.1; Tax-General Article, §2-103; Annotated Code of Maryland Effective date: June 30, 1975 (2:14 Md. R. 1010) Regulation .01 amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .01A amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .01B amended effective February 9, 1979 (6:3 Md. R. 148); November 24, 1979 (6:21 Md. R. 1706); October 3, 1980 (7:20 Md. R. 1876) Regulation .01C amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .01F amended effective May 21, 1984 (11:10 Md. R. 862) Regulation .01G amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .01H amended effective December 16, 1977 (4:26 Md. R. 2022); August 10, 1979 (6:16 Md. R. 1329); October 3, 1980 (7:20 Md. R. 1876) Regulation .01I amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .02 amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .02A amended effective February 9, 1979 (6:3 Md. R. 148); November 24, 1979 (6:21 Md. R. 1706) Regulation .02B amended effective February 9, 1979 (6:3 Md. R. 148); November 24, 1979 (6:21 Md. R. 1706); October 3, 1980 (7:20 Md. R. 1876) Regulation .02C amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .02D amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .02F amended effective May 21, 1984 (11:10 Md. R. 862) Regulation .02H amended effective December 16, 1977 (4:26 Md. R. 2022); August 10, 1979 (6:16 Md. R. 1329); September 14, 1981 (8:18 Md. R. 1477) Regulation .03 amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .03A—C amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .03H amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .03I amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .04 amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .04A—C amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .04H amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .04I amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .05 amended effective February 9, 1979 (6:3 Md. R. 148); March 15, 1982 (9:5 Md. R. 525); November 22, 1982 (9:23 Md. R. 2258); February 22, 1988 (15:4 Md. R. 470) Regulation .06 amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .06A amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .06B amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .06D amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .06F amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .07 amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .07A amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .07B amended effective February 9, 1979 (6:3 Md. R. 148); September 14, 1981 (8:18 Md. R. 1477) Regulation .07D amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .07F amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .08 amended effective August 10, 1979 (6:16 Md. R. 1329) Regulation .08D adopted effective November 22, 1982 (9:23 Md. R. 2258) Regulation .08D amended effective May 21, 1984 (11:10 Md. R. 862) Regulation .09 repealed and new Regulation .09 adopted effective May 21, 1984 (11:10 Md. R. 862) Regulation .09A amended effective February 22, 1988 (15:4 Md. R. 470) Regulation .10 amended effective April 7, 1978 (5:7 Md. R. 520); April 20, 1979 (6:8 Md. R. 650) Regulation .10A amended effective December 12, 1980 (7:25 Md. R. 2332) Regulation .10B amended effective May 21, 1984 (11:10 Md. R. 862) Regulation .10D amended effective October 3, 1980 (7:20 Md. R. 1876); September 14, 1981 (8:18 Md. R. 1477); February 22, 1988 (15:4 Md. R. 470) Regulation .11 amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .12 repealed effective February 9, 1979 (6:3 Md. R. 148) Regulation .12 adopted effective August 10, 1979 (6:16 Md. R. 1329) Regulation .12F—J adopted effective October 3, 1980 (7:20 Md. R. 1876) Regulation .12 repealed and new Regulation .12 adopted effective May 21, 1984 (11:10 Md. R. 862) Regulation .12 amended effective December 30, 1985 (12:26 Md. R. 2542) Regulation .12G amended as an emergency provision effective February 21, 1986 (13:6 Md. R. 667) (Emergency provisions are temporary and are not printed in COMAR) Regulation .18 amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .24 amended effective October 3, 1980 (7:20 Md. R. 1876) Regulation .28 amended effective September 14, 1981 (8:18 Md. R. 1477) Regulation .28 repealed effective February 22, 1988 (15:4 Md. R. 470) Regulation .30 amended effective February 9, 1979 (6:3 Md. R. 148) Regulation .31 repealed effective February 9, 1979 (6:3 Md. R. 148) Regulation .31 adopted effective May 21, 1984 (11:10 Md. R. 862) Regulation .31 repealed and new Regulation .31 adopted effective February 22, 1988 (15:4 Md. R. 470) Regulations .32—.34 originally adopted as Regulations .34—.36, respectively Regulation .32 adopted effective July 20, 1977 (4:15 Md. R. 1145) Regulation .32 amended effective April 20, 1979 (6:8 Md. R. 650) Regulation .32A amended effective December 12, 1980 (7:25 Md. R. 2332) Regulation .32B amended effective December 12, 1980 (7:25 Md. R. 2332); March 14, 1983 (10:5 Md. R. 463) Regulation .32D amended effective February 10, 1978 (5:3 Md. R. 135) Regulation .33 adopted effective July 20, 1977 (4:15 Md. R. 1145) Regulation .33 amended effective April 20, 1979 (6:8 Md. R. 650) Regulation .33A amended as an emergency provision effective June 24, 1985 (12:14 Md. R. 1428); adopted permanently effective November 4, 1985 (12:22 Md. R. 2103) Regulation .34 adopted effective July 20, 1977 (4:15 Md. R. 1145) Regulation .34 amended effective April 20, 1979 (6:8 Md. R. 650) Regulation .34 repealed effective August 6, 1990 (17:15 Md. R. 1853) Regulations .35 and .36 adopted as an emergency provision effective July 10, 1979 (6:15 Md. R. 1268); adopted permanently effective November 24, 1979 (6:21 Md. R. 1706); repealed effective February 22, 1988 (15:4 Md. R. 470) Annotation: COMAR 03.03.07.32 discussed in Comptroller of the Treasury v. Crown Central Petroleum Corporation, 52 Md. App. 581 (1982) Chapter revised and recodified from COMAR 03.03.07 to COMAR 03.03.05 effective August 20, 1990 (17:16 Md. R. 1988) Regulation .01 recodified to Regulation .01-1 and amended effective October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .01 adopted effective October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .01B amended as an emergency provision effective January 31, 1994 (21:5 Md. R. 400); emergency status expired March 1, 1994 Regulation .01B amended effective July 5, 1994 (21:13 Md. R. 1154) Regulation .01B amended as an emergency provision effective September 13, 1995 (22:20 Md. R. 1536); amended permanently effective December 18, 1995 (22:25 Md. R. 1960) Regulation .01-1C, D amended as an emergency provision effective January 31, 1994 (21:5 Md. R. 400); emergency status expired March 1, 1994 Regulation .01-1C, D amended effective July 5, 1994 (21:13 Md. R. 1154) Regulation .01-1N amended as an emergency provision effective September 13, 1995 (22:20 Md. R. 1536); amended permanently effective December 18, 1995 (22:25 Md. R. 1960) Regulation .02-1 adopted effective October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .05D amended effective October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .05D amended as an emergency provision effective September 13, 1995 (22:20 Md. R. 1536); amended permanently effective December 18, 1995 (22:25 Md. R. 1960) Regulation .06A amended as an emergency provision effective January 31, 1994 (21:5 Md. R. 400); emergency status expired March 1, 1994 Regulation .06A amended effective July 5, 1994 (21:13 Md. R. 1154) Regulations .08 and .09 repealed effective October 26, 1992 (19:21 Md. R. 1984) (19:22 Md. R. 1986) Regulation .08 adopted effective October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .15 amended effective October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .30 adopted as an emergency provision effective August 28, 1990 (17:19 Md. R. 2318) (Emergency provisions are temporary and not printed in COMAR) Regulation .30 adopted effective December 10, 1990 (17:24 Md. R. 2836) Regulation .31 adopted effective April 26, 1993 (20:8 Md. R. 722) Chapter revised effective January 14, 1999 (26:1 Md. R. 20) Regulation .01B amended effective March 3, 2014 (41:4 Md. R. 299); May 16, 2022 (49:10 Md. R. 562) Regulation .01-1 amended effective April 20, 2009 (36:8 Md. R. 594); May 16, 2022 (49:10 Md. R. 562); March 3, 2025 (52:4 Md. R. 218) Regulations .02J amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .04 amended effective December 6, 2018 (45:24 Md. R. 1162) Regulation .04G amended effective October 13, 2014 (41:20 Md. R. 1111) Regulations .04H amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .05C amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .06A amended effective December 22, 2003 (30:25 Md. R. 1844) Regulation .06-1 adopted effective December 22, 2003 (30:25 Md. R. 1844) Regulation .06-1B, C amended effective June 16, 2008 (35:12 Md. R. 1120) Regulations .10 amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .11 amended effective June 19, 2006 (33:12 Md. R. 996); May 16, 2022 (49:10 Md. R. 562) Regulations .13 amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .14 amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .25A amended as an emergency provision effective May 15, 2000 (27:12 Md. R. 1136); emergency status expired November 10, 2000; adopted permanently effective November 27, 2000 (27:23 Md. R. 2146) Regulation .28C amended effective May 12, 2014 (41:9 Md. R. 519) Regulation .29 amended effective December 2, 2019 (46:24 Md. R. 1104) Regulations .30D amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .31B amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .32 adopted effective May 12, 2014 (41:9 Md. R. 519) 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. “Blender” means a person who owns, leases, operates, controls, or supervises an oxygenate blending facility. “Bureau” means the Field Enforcement Bureau of the Comptroller of the Treasury. “Carrier” means a distributor who transports, stores, or is responsible for the transportation or storage of motor fuel without taking title to or otherwise having any ownership of the motor fuel, and without altering either the quality or quantity of the motor fuel. “Control area” means an oxygenated gasoline control area as defined in COMAR 03.03.05.01. “Control period” means an oxygenated gasoline control period as defined in COMAR 03.03.05.01. “CO standard” means the primary national ambient air quality standard for carbon monoxide, as specified at 40 CFR §50.8, of: 9 parts per million (10 milligrams per cubic meter) for an average 8-hour concentration not to be exceeded more than once per year; or 35 parts per million (40 milligrams per cubic meter) for a 1-hour average concentration not to be exceeded more than once per year. “Distributor” means a person who transports, stores, or is responsible for the transportation or storage of motor fuel at any point between any refiner or importer facility and any retail outlet or wholesale purchaser-consumer facility. “Importer” means any person who imports motor fuel from a foreign country into the United States. “Monitored violation” means two or more exceedances as measured at a State CO monitor within a 1-year period, as specified at 40 CFR §50.8, of either the: 8-hour CO standard; or 1-hour CO standard. “Oxygen content” means the percentage of oxygen by weight in gasoline, based upon the percentage by volume of component oxygenates exclusive of denaturants and other non-oxygen-containing components, the mass fraction of oxygen in each component oxygenate, and the density of each component oxygenate. “Oxygenate blending facility” means a facility at which oxygenate is added to gasoline or gasoline blendstocks to produce a finished oxygenated gasoline, and at which the quality or quantity of gasoline is not altered in any other manner except through the addition of deposit control additives. “Refiner” means any person who owns, leases, operates, controls, or supervises a plant where motor fuel is produced. “Reseller” means a person who purchases motor fuel and resells or transfers the motor fuel to retailers or wholesale purchaser-consumers. “Terminal” means a facility capable of receiving motor fuel in bulk or where motor fuel is altered in quantity or quality, or both, and where motor fuel is sold or supplied for transportation to a retail outlet or wholesale purchaser-consumer facility. During the period from May 1 through September 15, inclusive, the Bureau and the Department shall, until such time as the United States Environmental Protection Agency approves the use of ASTM Test Method D-5191, determine the vapor pressure of gasoline in accordance with the test methods described in 40 CFR Part 80, Appendix E, which is incorporated by reference. Following approval by the United States Environmental Protection Agency, ASTM Test Method D-5191 shall be used. 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. The Bureau may grant a 1-pound waiver for ethanol blend gasoline in an ozone attainment area, as defined in COMAR 03.03.05.01B(18), in writing. The requirements of §§B—D of this regulation apply only in a control area and for control periods after: A monitored violation of the CO standard for that control area or in a larger area of which the control area is required by federal law to be treated as a unit; and Notice has been published in the Maryland Register not later than July 1 of the year in which §§B—D of this regulation become applicable that the requirements apply to the control area, and that §§B—D of this regulation remain applicable in that control area until a notice is published in the Maryland Register stating that the sections no longer apply. 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. Throughout each control period beginning before January 1, 1994, the percent by volume of component oxygenates in gasoline shall be determined in accordance with: For single-carbon through four-carbon alcohols and methyl tertiary butyl ether, ASTM Test Method D-4815-89; For ethyl tertiary butyl ether, ASTM Test Method D-4815-89 with an appropriate internal standard; and For other oxygenates, a method developed by the Bureau and the Department in consultation with refiners, importers, and blenders registered under Regulation .04 of this chapter, and approved by the United States Environmental Protection Agency. Throughout each control period beginning on or after January 1, 1994, the percent by volume of component oxygenates in gasoline shall be determined in accordance with Regulation .03C(1) of this chapter or the methodology described in Appendix C of the United States Environmental Protection Agency's Supplemental Notice of Proposed Guidelines for Oxygenated Gasoline Credit Programs as published in the February 5, 1992 Federal Register (57 FR 4413). Oxygen Calculation. The oxygen content of gasoline shall equal the sum of the density-corrected oxygen weight fractions of all component oxygenates divided by the sum of the density-corrected volumes of gasoline and all component oxygenates. The density-corrected oxygen weight fraction of each component oxygenate shall be calculated by multiplying the percent by volume of each oxygenate, as measured in accordance with §C of this regulation, by the oxygen weight fraction and specific gravity of the oxygenate. The density-corrected volume of gasoline and component oxygenates shall be calculated by multiplying the percent by volume of gasoline or oxygenate, as applicable, by the specific gravity of the gasoline or oxygenate. The oxygen weight fraction of oxygenates is as follows: 0.4993 for methyl alcohol; 0.3473 for ethyl alcohol; 0.2662 for propyl alcohols; 0.2158 for butyl alcohols; 0.1815 for methyl tertiary butyl ether (MTBE); 0.1566 for tertiary amyl methyl ether (TAME); 0.1566 for ethyl tertiary butyl ether (ETBE); and 0.1566 for diisopropyl ether (DIPE). For purposes of this chapter, the specific gravity of oxygenates is as follows: 0.7963 for methyl alcohol; 0.7939 for ethyl alcohol; 0.8080 for n-propyl alcohol; 0.7899 for isopropyl alcohol; 0.8137 for n-butyl alcohol; 0.8058 for isobutyl alcohol; 0.8114 for sec-butyl alcohol; 0.7922 for tert-butyl alcohol; 0.7460 for methyl tertiary butyl ether (MTBE); 0.7752 for tertiary amyl methyl ether (TAME); 0.7452 for ethyl tertiary butyl ether (ETBE); and 0.7257 for diisopropyl ether (DIPE). For purposes of this chapter, the specific gravity of gasoline is 0.7420. For purposes of this chapter, the oxygen weight fraction of oxygenates not included in §D(2) of this regulation and the specific gravity of oxygenates not included in §D(3) of this regulation shall be specified by the Bureau and the Department. For control periods beginning before January 1, 1994, refiners, importers, and blenders that intend to use oxygenates other than single-carbon through four-carbon alcohols or methyl tertiary butyl ether to comply with control period oxygen requirements shall register their intent with the Bureau and the Department at least 30 days before the beginning of each control period. 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: The results of the tests, conducted in accordance with Regulations .02 and .03 of this chapter, used to determine the vapor pressure and types and percentages by volume of component oxygenates; The oxygen content of the gasoline; The volume of the gasoline; and The name and address of the person to whom the gasoline was sold or transferred. 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: The owner of the gasoline; The volume of gasoline; For gasoline obtained from a refiner or importer and, if available, for gasoline obtained from other sources, the stated vapor pressure, type and percentage by volume of component oxygenates, and oxygen content of the gasoline; The results of any quality assurance tests performed; and As applicable, the name and address of the person from whom the gasoline was purchased or acquired or to whom the gasoline was sold or transferred. Retailers, wholesale purchaser-consumers, carriers, resellers, and distributors shall generate and maintain records containing the following information: The name and address of the person from whom each separate quantity of gasoline was received and the date of receipt; and Data on each separate quantity of gasoline received, sold, or transported, including: The volume of gasoline; If available, the vapor pressure of the gasoline; If available, the types and percent by volume of component oxygenates; If available, the oxygen content of the gasoline; The results of any quality assurance tests performed; and If applicable, the destination of the gasoline. 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 date of the transfer; The name and address of the transferor; The name and address of the transferee; The location of the gasoline at the time of the transfer; The volume of gasoline transferred; For all gasoline transferred between May 1 and September 15, inclusive, the proper identification of the gasoline as complying or noncomplying with vapor pressure requirements; For all gasoline transferred from a refiner, importer, or blender between May 1 and September 15, inclusive, the vapor pressure of the gasoline and the test method used for determination; For all gasoline transferred during a control period, the proper identification of the gasoline as oxygenated or nonoxygenated and complying or noncomplying with oxygen requirements; and For all gasoline transferred from a refiner, importer, or blender during a control period, and for all transfers during a control period of oxygenated gasoline containing less than 2.7 percent oxygen by weight, the type and volume of component oxygenates and the oxygen content of the gasoline. 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. Tax-General Article, §2-103; Business Regulation Article, §10-202; Annotated Code of Maryland Effective date: October 26, 1992 (19:21 Md. R. 1894) (19:22 Md. R. 1986) Regulation .01 amended as an emergency provision effective September 13, 1995 (22:20 Md. R. 1536); amended permanently effective December 18, 1995 (22:25 Md. R. 1960) Regulations .01B amended effective May 16, 2022 (49:10 Md. R. 562) Regulations .02 amended effective May 16, 2022 (49:10 Md. R. 562) Regulation .03 amended as an emergency provision effective September 13, 1995 (22:20 Md. R. 1536); amended permanently effective December 18, 1995 (22:25 Md. R. 1960) Regulations .05E adopted effective May 16, 2022 (49:10 Md. R. 562) Regulation .06A amended as an emergency provision effective September 13, 1995 (22:20 Md. R. 1536); amended permanently effective December 18, 1995 (22:25 Md. R. 1960) Regulations .06D adopted effective May 16, 2022 (49:10 Md. R. 562)