(c) No supplier (including a retailer) shall require any purchaser to purchase ration rights from any firm (including itself) as a condition of transferring gasoline.

(d) No supplier (including a retailer) shall discriminate against any purchaser offering valid ration coupons as evidence of entitlement to purchase gasoline if such coupons are tendered by a customer at the time of sale. A supplier may accept ration checks, including Government ration checks, from a customer as evidence of entitlement to purchase gasoline, but if there are insufficient ration rights in the ration rights account on which the ration check (other than a Government ration check) is drawn, the payee shall be liable for the deficiency, with recourse against the payor.

(e) A supplier of gasohol and similar blends of gasoline and non-petroleum products shall require a purchaser to transfer ration rights or redeemed ration rights, as applicable, only for that portion of the gasohol or similar blend which is gasoline.

§ 570.44 Supplier disposition of ration rights and ration checks.

A supplier (including a retailer) which receives ration coupons or ration checks (including Government ration checks) in exchange for gasoline shall at the time of exchange redeem all such coupons or checks by indelibly marking them with the supplier's name, its redemption account number, if any, and the legend "redeemed." No supplier shall sell or otherwise transfer gasoline for consumption to a purchaser in exchange for ration coupons that have previously been redeemed.

§ 570.45 Principal suppliers' obligations to DOE.

Each principal supplier shall file with DOE in such form and for such period as shall be designated by DOE, a report certifying the volume of gasoline sold during the reporting period, and shall submit with such report a redemption check equal on a gallon basis to the volume of gasoline sold during the reporting period.

§ 570.46 Redemption advances.

(a) Suppliers shall be entitled to receive an initial redemption advance according to a formula to be established and published by DOE. Such formula shall take into account the needs, if any, of suppliers located in remote areas subject to infrequent or irregular delivery schedules and suppliers in areas subject to highly seasonal demand.

(b) DOE may provide for such additional redemption advances as it

deems necessary.

(c) DOE shall require suppliers receiving redemption advances to repay such advances to DOE according to terms and conditions established and published by DOE.

(d) DOE shall make such redemption advances as are deemed necessary and appropriate to compensate suppliers for losses due to spillage, evaporation and shrinkage. DOE shall establish criteria for the determination of such advances so that the total of redeemed ration rights does not exceed the total amount of gasoline sold by principal suppliers.

§ 570.47 Inventory changes.

(a) Each supplier (including a retailer) shall report, according to forms and instructions to be issued by DOE, its inventory of gasoline measured on the first day of rationing before any sales of gasoline are made, measured at the end of the rationing program and measured at intervals to be specified by DOE.

(b) Any supplier (including a retailer) whose inventory at the close of the rationing program or at such other intervals as designated by DOE is less than its inventory measured on the first day of rationing may be required to submit a redemption check or redeemed ration rights to DOE equal on a gallon basis to the amount of inventory drawdown, less an amount to be specified by DOE for losses due to spillage, evaporation and shrinkage.

Subpart F-Allocation of Gasoline

§ 570.51 Relationship to Parts 210 and 211. (a) If the provisions of 10 CFR 211.103 are in effect, § 211.103(b) shall not apply when this part is in effect. DOE may change the allocation levels for firms receiving supplemental allotments or with priority classification.

(b) If the provisions of 10 CFR Part 211 are in effect at the time this part is in effect, each purchaser's right to receive product shall be limited by the requirements under § 570.42 of this part to provide either ration rights or redeemed ration rights to its supplier, as applicable.

(c) If the provisions of Part 211 are not in effect at the time this part is in effect, the Secretary of Energy may prohibit a supplier from increasing above a specified level the amount of gasoline sold or otherwise transferred to a purchaser or class of purchasers, where such supplier owns, operates or otherwise controls such purchaser(s).

Subpart G-Ration Banking

§ 570.61 Coupon issuance points and participating banks.

(a) Subject to terms and procedures to be established by DOE, DOE may authorize certain firms and institutions to act as (1) coupon issuance points to issue ration coupons in exchange for ration checks, and (2) participating banks to provide ration rights accounts and redemption accounts.

(b) Coupon issuance points and participating banks shall maintain such records and issue such reports as may be required from time to time by DOE.

§ 570.62 Ration rights accounts.

(a) Any firm or individual may establish a ration rights account. DOE may by order and notice establish a minimum initial deposit, allowable fees, and other forms, procedures, terms and conditions governing the operation and maintenance of ration rights accounts.

(b) No individual or firm shall issue a ration check for which no ration rights account has been established or drawn upon a ration rights account in

which there are insufficient ration rights to cover that ration check and other outstanding ration checks drawn on that account.

§ 570.63 Redemption accounts.

(a) Pursuant to procedures to be established by DOE, suppliers, including retailers, may open redemption accounts at participating banks for the deposit of initial redemption advances, if any, redeemed ration rights, and redemption checks.

(b) DOE may require some or all suppliers to open and maintain redemption accounts.

(c) The opening of a redemption account and the receipt of deposits therefor shall be made at participating banks according to forms and procedures to be established by DOE.

(d) No individual or firm shall issue a redemption check for which no redemption account has been established or drawn upon a redemption account in which there are insufficient deposits to cover that redemption check and other outstanding redemption checks drawn on that account.

(e) Redemption checks shall not be valid for deposit in a ration rights account, nor shall redemption checks be valid for the purchase of gasoline by a wholesale purchaser-consumer, bulk purchaser or other ultimate consumer.

(f) DOE may impose limitations on the sale or transfer of redeemed ration rights if such a limitation is deemed to be necessary to prevent fraud or abuse.

any other purpose at the discretion of DOE.

(b) For each ration period, DOE shall determine a percentage of the national total number of ration rights for which ration rights shall be reserved by DOE for the National Ration Reserve.

Subpart I-State Ration Reserves

§ 570.81

State Ration Reserves.

(a) For each ration period, DOE shall establish for each State which has been delegated authority pursuant to § 570.82, a percentage of that State's total number of ration rights (STR, as determined in Subpart C) for which ration rights shall be reserved by DOE for that State as a State Ration Reserve to meet the needs and hardships of end-users.

(b) For the initial ration period the State Ration Reserve shall be a minimum of five percent of the State total number of ration rights. A State may apply to DOE at any time to reduce or increase the amount of ration rights to be included in the State Ration Reserve.

(c) For each subsequent ration period, the State Ration Reserve allotment shall be determined by DOE after consultation with each State.

(d) Except as provided in § 570.82(i), no State may sell or otherwise transfer for consideration ration rights provided to such State as a State Ration Reserve.

§ 570.82 Establishment of State Rationing Offices and local boards.

(a) As soon as practicable after the Standby Gasoline Rationing Plan is approved by Congress in accordance with EPCA sec. 201(d), DOE will establish procedures for delegation of functions under this part to a State Rationing Office and to officers or local boards (of balanced composition reflecting the community as a whole) of a State or political subdivision thereof.

(b) Within 60 days after DOE establishes procedures under paragraph (a), each State may submit to DOE a plan to receive a delegation of authority from DOE and to administer the State Ration Reserve. The State plans shall

include such information as DOE may request, including the following:

(1) How the State proposes to establish a State Rationing Office and local boards to meet hardship needs and to provide for the mobility needs of the handicapped;

(2) Efforts to be undertaken during the effective period of the Standby Gasoline Rationing Plan to meet the needs of those persons in suburban and rural areas, particularly mid-sized cities, small towns and rural communities not adequately served by any public transportation system;

(3) The percentage of the State total number of ration rights requested by the State as a State Ration Reserve; and

(4) Procedures to prohibit recipients of hardship allotments from selling or otherwise transferring for consideration ration rights received as part of such allotments.

(c) DOE shall review the State plan submitted under paragraph (b), and if approved DOE shall delegate appropriate authority to administer the State Ration Reserve allotted by DOE to that State. DOE also shall inform the State of the percentage of the State total number of ration rights to be allotted as a State Ration Reserve.

(d) Any State which does not have a State plan approved under paragraph (c) shall not be provided any ration rights for a State Ration Reserve.

(e) The State Ration Reserves will be distributed by DOE to the State Rationing Offices by transmitting a Government ration check to each State.

(f) Each month the State Rationing Office shall report to DOE with respect to the preceding month: (1) The number of hardship petitions received by category of hardship alleged, (2) The disposition made of hardship applications, (3) The amount of ration rights issued from the State's Ration Reserve, and (4) Such other information as DOE shall require.

(g) The State Rationing Office may redelegate the authority given to it by DOE to local rationing boards, provided they meet the balanced composition criteria set forth in paragraph (a).

(h) No State shall issue a ration check drawn upon a ration rights ac

er the mobility needs of handicapped persons. In addition, the State Rationing Office or its delegate shall consider the hardship needs of other individuals and firms, such as low-income, long-distance commuters, migrant

workers, persons engaged in household moves, and other recurring or onetime hardship needs, and the needs of persons in suburban and rural areas, particularly mid-sized cities, small towns and rural communities not adequately served by any public transportation system.

(b) For purposes of this section, the term "handicapped person" means any individual who, by reason of disease, injury, age, congenital malfunction, or other incapacity or disability, is unable without special facilities, planning or design to utilize mass transportation vehicles, facilities and services and who has a substantial impediment to mobility.

(a) Terms defined in section 2 of the Natural Gas Policy Act of 1978 shall have the same meaning, as applicable, for purposes of this part, unless further defined in paragraph (b) of this section.

(b) The following definitions are applicable to this part:

(1) Commercial establishmentmeans any establishment, (including institutions and local, state and federal government agencies) engaged primarily in the sale of goods or services, where natural gas is used for purposes other than those involving manufacturing or electric power generation. (2) Essential agricultural means any use of natural gas:

use

(i) For agricultural production, natural fiber production, natural fiber processing, food processing, food quality maintenance, irrigation pumping, crop drying; or

(ii) As a process fuel or feedstock in the production of fertilizer, agricultural chemicals, animal feed, or food which the Secretary of Agriculture determines is necessary for full food and fiber production.

(3) Essential agricultural usermeans any person who uses natural gas for an essential agricultural use as defined in paragraph (b)(2) of this section.

(4) Hospital-means a facility whose primary function is delivering medical care to patients who remain at the facility, including nursing and convalescent homes. Outpatient clinics or doctors' offices are not included in this definition.

(5) High-priority use-means any use of natural gas by a high-priority user as defined in paragraph (a)(6) of this section.

(6) High-priority user-means, in no specific order, any person who uses natural gas:

(i) In a residence, or

(ii) In a commercial establishment in amounts of less than 50 Mcf on a peak day; or

(iii) In any school or hospital; or

(iv) For minimum plant protection when operations are shut down, for police protection, for fire protection, in a sanitation facility, in a correctional facility, or for emergency situations pursuant to 18 CFR 2.78(a)(4)

(7) Interstate pipeline-means any person engaged in natural gas transportation subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act.

(8) Residence-means a dwelling using natural gas predominately for residential purposes such as space heating, air conditioning, hot water heating, cooking, clothes drying, and other residential uses, and includes