Title of Regulation: 2VAC5-420. Regulations for the Enforcement of the Virginia Gasoline and Motor Fuel Law (repealing 2VAC5-420-10 through 2VAC5-420-80).

Statutory Authority: § 59.1-156 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: March 4, 2011.

Agency Contact: Erin Williams, Policy and Planning Coordinator, Department of Agriculture and Consumer Services, P.O. Box 1163, Richmond, VA 23218, telephone (804) 786-1308, FAX (804) 371-7479, TTY (800) 828-1120, or email erin.williams@vdacs.virginia.gov.

Basis: Section 59.1-156 of the Code of Virginia establishes the discretionary authority for the Board of Agriculture and Consumer Services to adopt regulations for the efficient enforcement of the Virginia Motor Fuels and Lubricating Oils Law (Chapter 12 (§ 59.1-149 et seq.) of Title 59.1 of the Code of Virginia).

Purpose: The 2009 General Assembly Session amended the Motor Fuels and Lubricating Oils Law by incorporating by reference the inspection and testing specifications adopted by the National Conference on Weights and Measures and published by the National Institute of Standards and Technology in Handbook 130, Uniform Laws and Regulations in the Areas of Legal Metrology and Engine Fuel Quality. The incorporation by reference of national specifications will help ensure the uninterrupted flow and availability of motor fuels throughout Virginia, will facilitate the introduction to market of new motor fuels such as biodiesel, and will ensure that specifications and methods of testing of motor fuels in Virginia remain current and conform continually to corresponding national standards. Thus, the regulation is no longer needed and can be repealed.

Substance: This action seeks to repeal 2VAC5-420, Regulations for the Enforcement of the Virginia Gasoline and Motor Fuel Law, because the essential elements of the regulation have been incorporated into the Virginia Motor Fuels and Lubricating Oils Law and the regulation is no longer needed.

Issues: The repeal of the regulation will benefit the public because the incorporation by reference of national specifications will help ensure the uninterrupted flow and availability of motor fuels throughout Virginia, facilitate the introduction to market of new motor fuels such as biodiesel, and ensure that specifications and methods of testing of motor fuels in Virginia remain current and conform continually to corresponding national standards. This regulatory action poses no disadvantages to the public or the Commonwealth.

The Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Virginia Department of Agriculture and Consumer Services proposes to repeal these regulations.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. The regulations prescribe certain requirements for the enforcement of the Virginia Motor Fuels and Lubricating Oils Law, Title 59.1, Chapter 12 of the Code of Virginia, including specifications for the inspection and testing of motor fuels. HB 2446 of the 2009 session of the Virginia General Assembly amended the Motor Fuels and Lubricating Oils Law by incorporating by reference certain national inspection and testing specifications for motor fuels. Given that the essential elements of the regulations have now been incorporated by reference into the Virginia Motor Fuels and Lubricating Oils Law, the proposed repeal will have no impact beyond perhaps reducing a small amount of potential confusion.

Businesses and Entities Affected. The regulations affect motor fuel retailers and refineries. The repeal of the regulations will not significantly affect these firms since the essential elements of the regulations have now been incorporated by reference into the Virginia Motor Fuels and Lubricating Oils Law.

Localities Particularly Affected. The proposed amendments do not disproportionately affect particular localities.

Projected Impact on Employment. The proposal amendments are unlikely to significantly affect employment.

Effects on the Use and Value of Private Property. The proposed amendments are unlikely to significantly affect the use and value of private property.

Small Businesses: Costs and Other Effects. The proposed amendments are unlikely to significantly affect small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed amendments are unlikely to significantly affect small businesses.

Real Estate Development Costs. The proposed amendments are unlikely to significantly affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 107 (09). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPBs best estimate of these economic impacts.

Agency's Response to the Department of Planning and Budget's Economic Impact Analysis: The agency concurs with the Department of Planning and Budget's economic impact analysis.

Summary:

This proposed regulatory action repeals 2VAC5-420, Regulations for the Enforcement of the Virginia Gasoline and Motor Fuel Law. The regulation prescribes certain requirements for the enforcement of the Virginia Motor Fuels and Lubricating Oils Law (Chapter 12 (§ 59.1-149 et seq.) of Title 59.1 of the Code of Virginia), including specifications for the inspection and testing of motor fuels. Chapter 650 of the 2009 Acts of Assembly amended the Motor Fuels and Lubricating Oils Law by incorporating by reference certain national inspection and testing specifications for motor fuels. Given that the essential elements of the regulation have now been incorporated by reference into the Virginia Motor Fuels and Lubricating Oils Law, the regulation is no longer needed and can be repealed.