[Federal Register Volume 75, Number 89 (Monday, May 10, 2010)]
[Rules and Regulations]
[Pages 26025-26048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10851]
[[Page 26025]]
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Part IV
Environmental Protection Agency
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40 CFR Part 80
Regulation of Fuels and Fuel Additives: Modifications to Renewable Fuel
Standard Program; Final Rule and Proposed Rule
Federal Register / Vol. 75 , No. 89 / Monday, May 10, 2010 / Rules
and Regulations
[[Page 26026]]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2005-0161; FRL-9147-6]
RIN 2060-AQ31
Regulation of Fuels and Fuel Additives: Modifications to
Renewable Fuel Standard Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
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SUMMARY: EPA is taking direct final action to amend certain of the
Renewable Fuel Standard program regulations published on March 26,
2010, that are scheduled to take effect on July 1, 2010 (the ``RFS2
regulations''). Following publication of the RFS2 regulations,
promulgated in response to the requirements of the Energy Independence
and Security Act of 2007, EPA discovered some technical errors and
areas within the final RFS2 regulations that could benefit from
clarification or modification. This direct final rule amends the RFS2
regulations to make the appropriate corrections, clarifications, and
modifications.
DATES: This direct final rule is effective on July 1, 2010 without
further notice, except to the extent that EPA receives adverse comment
by June 9, 2010 or receives a request for a public hearing by May 25,
2010. If EPA receives adverse comment or a request for a hearing, we
will publish a timely withdrawal in the Federal Register informing the
public that the amendment, paragraph, or section of the rule on which
adverse comment or a hearing request were received will not take
effect. If a public hearing is requested, we will publish a notice in
the Federal Register announcing the date and location of the hearing at
least 14 days prior to the hearing.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2005-0161, by one of the following methods:
http://www.regulations.gov. Follow the on-line
instructions for submitting comments.
E-mail: [email protected], Attention Air and
Radiation Docket ID No. EPA-HQ-OAR-2005-0161.
Mail: Air and Radiation Docket, Docket No. EPA-HQ-OAR-
2005-0161, Environmental Protection Agency, Mail Code: 6406J, 1200
Pennsylvania Ave., NW., Washington, DC 20460. Please include a total of
2 copies.
Hand Delivery: EPA Docket Center, EPA/DC, EPA West, Room
3334, 1301 Constitution Ave., NW., Washington, DC, 20460, Attention Air
and Radiation Docket, ID No. EPA-HQ-OAR-2005-0161. Such deliveries are
only accepted during the Docket's normal hours of operation, and
special arrangements should be made for deliveries of boxed
information.
Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2005-0161. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov website
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses. For additional information about EPA's public
docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in http://www.regulations.gov or in hard copy at the Air and Radiation
Docket, EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW.,
Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding legal holidays. The telephone
number for the Public Reading Room is (202) 566-1744, and the telephone
number for the Air and Radiation Docket is (202) 566-1742.
FOR FURTHER INFORMATION CONTACT: Megan Brachtl, Compliance and
Innovative Strategies Division, Office of Transportation and Air
Quality, Mail Code: 6405J, U.S. Environmental Protection Agency, 1200
Pennsylvania Avenue, NW., 20460; telephone number: (202) 343-9473; fax
number: (202) 343-2802; e-mail address: [email protected].
SUPPLEMENTARY INFORMATION:
I. Why is EPA using a direct final rule?
EPA is publishing this rule without a prior proposed rule because
we view this as a non-controversial action and anticipate no adverse
comment. However, in the ``Proposed Rules'' section of today's Federal
Register, we are publishing a separate document that will serve as the
proposal to adopt the provisions in this direct final rule on which
adverse comments or a hearing request are filed. We will not institute
a second comment period on this action. Any parties interested in
commenting must do so at this time. For further information about
commenting on this rule, see the ADDRESSES section of this document.
If EPA receives adverse comment or a request for hearing on any
portion of this rule, we will publish a timely withdrawal in the
Federal Register informing the public that the portion of the rule on
which adverse comment or a hearing request was received will not take
effect. Any distinct amendment, paragraph, or section of today's rule
for which we do not receive adverse comment or a hearing request will
become effective on the date set out above, notwithstanding any adverse
comment or hearing request on any other distinct amendment, paragraph,
or section of this rule. We will address all public comments in any
subsequent final rule based on the proposed rule.
II. Does this action apply to me?
Entities potentially affected by this action include those involved
with the production, distribution and sale of transportation fuels,
including gasoline and diesel fuel, or renewable fuels such as ethanol
and biodiesel. Regulated categories and entities affected by this
action include:
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NAICS codes Examples of potentially
Category \a\ SIC codes \b\ regulated parties
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Industry...................................... 324110 2911 Petroleum refiners, importers.
Industry...................................... 325193 2869 Ethyl alcohol manufacturers.
Industry...................................... 325199 2869 Other basic organic chemical
manufacturers.
Industry...................................... 424690 5169 Chemical and allied products
merchant wholesalers.
Industry...................................... 424710 5171 Petroleum bulk stations and
terminals.
Industry...................................... 424720 5172 Petroleum and petroleum products
merchant wholesalers.
Industry...................................... 454319 5989 Other fuel dealers.
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\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) system code.
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that EPA is now aware
could be potentially regulated by this action. Other types of entities
not listed in the table could also be regulated. To determine whether
your entity is regulated by this action, you should carefully examine
the applicability criteria of Part 80, subparts D, E and F of title 40
of the Code of Federal Regulations. If you have any question regarding
applicability of this action to a particular entity, consult the person
in the preceding FOR FURTHER INFORMATION CONTACT section above.
III. What should I consider as I prepare my comments for EPA?
A. Submitting CBI. Do not submit this information to EPA through
http://www.regulations.gov or e-mail. Clearly mark the part or all of
the information that you claim to be CBI. For CBI information in a disk
or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM
as CBI and then identify electronically within the disk or CD ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
B. Tips for Preparing Your Comments. When submitting comments,
remember to:
Identify the rulemaking by docket number and other
identifying information (subject heading, Federal Register date and
page number).
Follow directions--The agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
Explain why you agree or disagree; suggest alternatives
and substitute language for your requested changes.
Describe any assumptions and provide any technical
information and/or data that you used.
If you estimate potential costs or burdens, explain how
you arrived at your estimate in sufficient detail to allow for it to be
reproduced.
Provide specific examples to illustrate your concerns, and
suggest alternatives.
Explain your views as clearly as possible, avoiding the
use of profanity or personal threats.
Make sure to submit your comments by the comment period
deadline identified.
C. Docket Copying Costs. You may be charged a reasonable fee for
photocopying docket materials, as provided in 40 CFR part 2.
IV. Renewable Fuel Standard (RFS2) Program Amendments
EPA is taking direct final action to amend certain of the Renewable
Fuel Standard regulations published on March 26, 2010, at 75 FR 14670
(the ``RFS2 regulations'') that are scheduled to take effect on July 1,
2010. Following publication of the RFS2 regulations, EPA discovered
some technical errors and areas that could benefit from clarification
or modification. As a result, we are making the following amendments to
the RFS2 regulations at 40 CFR part 80, subpart M.
A. Summary of Amendments
Below is a table listing the provisions that we are amending. Many
of the amendments address grammatical or typographical errors or
provide clarification of language contained in the final RFS2
regulations. A few amendments are being made in order to correct
regulatory language that inadvertently misrepresented our intent as
reflected in the preamble to the final RFS2 regulations. We have
provided additional explanation for several of these amendments in the
sections IV.B through IV.M below.
RFS2 Program Amendments
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Section Description
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80.1401.................................................................... Corrected typographical
errors in the definitions of
``advanced biofuel'' and
``forestland.''
Deleted definition of
``fractionation of feedstocks''
and added definitions of ``corn
oil fractionation,'' ``membrane
separation,'' and ``raw starch
hydrolysis'' to be consistent with
terms listed as advanced
technologies in Table 2 to Sec.
80.1426. See Section IV.B.
Deleted definition of
``yard waste,'' since the term
``separated yard waste'' is
defined in the context of Sec.
80.1426(f)(5)(i)(A).
Added definition of
``actual peak capacity'' (moved
from Sec. 80.1403(a)(3)) and
revised definition to clarify that
actual peak capacity for
facilities that commenced
construction prior to December 19,
2007, but that did not operate
prior to 2008, should be based on
any calendar year after startup
during the first three years of
operation. This definition was
also revised to clarify that for
facilities that commenced
construction after December 19,
2007 but before January 1, 2010,
that are fired with natural gas,
biomass, or a combination thereof,
the actual peak capacity is based
on any calendar year after startup
during the first three years of
operation.
Added definition of
``baseline volume'' (moved from
Sec. 80.1403(a)(3)). See Section
IV.C.
[[Page 26028]]
Added definition of
``foreign ethanol producer'' to
describe foreign parties that
produce ethanol for use in
transportation fuel, heating oil,
or jet fuel in the United States.
See Section IV.D.
Added definition of
``permitted capacity'' (moved from
80.1403(a)(3)) and revised
definition to clarify the dates
before which permits used to
establish a facility's permitted
capacity must have been issued or
revised. See Section IV.E.
Added definition of
``renewable electricity'' to
clarify that electricity must meet
the definition of renewable fuel
in order to qualify for RINs.
Revised definition of
``biogas'' to clarify that biogas
must meet the definition of
renewable fuel in order to qualify
for RINs.
Revised definition of
``combined heat and power'' to
clarify meaning. See Section IV.B.
Revised definition of
``corn oil extraction'' to clarify
that ``DGS'' means ``distillers
grains and solubles.'' See Section
IV.B.
Revised definition of
``exporter'' to clarify that
exported fuels must be exported
from the contiguous 48 states or
Hawaii.
Revised definition of
``naphtha'' to clarify that it can
be either a blendstock or fuel
blending component and need not be
renewable fuel. See Section IV.F.
Revised definition of
``non-ester renewable diesel'' to
clarify that it must be able to be
used in an engine designed to
operate on conventional diesel
fuel, or be heating oil or jet
fuel, and that it may also be
known as renewable diesel. Also
deleted requirement that non-ester
renewable diesel be registered
under 40 CFR part 79 for
consistency with other definitions
in Sec. 80.1401.
Revised definitions of
``pastureland'' and ``pre-
commercial thinnings'' to clarify
meaning.
Revised definition of
``Renewable Identification Number
(RIN)'' to clarify that a gallon-
RIN represents a gallon of
renewable fuel used for compliance
with renewable volume obligations
under Sec. 80.1427.
Revised definition of
``transportation fuel'' to clarify
that fuel used in ocean-going
vessels is not transportation fuel
under Subpart M.
80.1403(a)(1) and (a)(2); removed (a)(3)................................... Moved definitions of ``baseline
volume,'' ``permitted capacity,''
and ``actual peak capacity'' to
Sec. 80.1401 to consolidate with
other definitions.
80.1403(c)(2).............................................................. Revised to require that
construction of a grandfathered
renewable fuel production facility
for which construction commenced
prior to December 19, 2007, be
complete by December 19, 2010,
rather than within 36 months from
the date of commencement of
construction. See Section IV.G.
80.1405(c)................................................................. Revised definition of ``RFVCB,i''
to clarify that the volume of
cellulosic biofuel used to
calculate the annual standard for
cellulosic biofuel will either be
the statutory volume or the
adjusted volume in the event that
EPA waives a portion of the
statutory volume requirement.
80.1406(c)(1).............................................................. Revised to clarify that, unless
otherwise excepted, when
demonstrating compliance with the
RFS2 regulations on an aggregate
basis, an obligated party must
include all of the refineries that
it operates.
80.1406(f)................................................................. Revised to clarify that all joint
owners of a gasoline or diesel
refinery or import facility are
subject to the liability
provisions of Sec. 80.1461(d).
80.1415(a)(1).............................................................. Corrected references to paragraphs
that describe gallon equivalents
for biogas and electricity.
80.1415(a)(2).............................................................. Revised to clarify that the
equivalence value represents the
number of gallon-RINs that can be
generated for a gallon of
renewable fuel.
80.1415(b)(5) and (b)(6)................................................... Revised to clarify the equivalence
values for biogas and electricity,
respectively.
80.1415(c)(1).............................................................. Revised definition of variable
``R'' in equivalence value
equation to clarify that the
renewable content of a renewable
fuel is based on the portion that
came from renewable biomass, and
that it should be expressed as a
fraction, not a percentage.
80.1416(a) and (d)......................................................... Revised to clarify the
circumstances under which a party
may petition EPA for consideration
of a D code for their renewable
fuel.
80.1416(b)(2)(vi).......................................................... Revised to clarify that information
submitted to EPA by a company for
purposes of evaluating a new
renewable fuel pathway must
include the current and future
quantities of feedstocks used to
produce the renewable fuel,
including information on current
and projected yields for
feedstocks that are harvested or
collected.
80.1416(c)(2).............................................................. Revised to clarify that the
responsible corporate officer of
the company submitting a petition
for evaluation of a new renewable
fuel pathway must sign and certify
that the petition meets all the
applicable requirements.
80.1425.................................................................... Amended to clarify that RINs
generated after July 1, 2010, may
only be generated and transferred
using the EPA-Moderated
Transaction System (EMTS) and will
not be identified by a 38-digit
code.
80.1425(i)................................................................. Revised to clarify that the value
of EEEEEEEE in a batch-RIN will be
determined by the number of gallon-
RINs generated for the batch.
80.1426(a)(2).............................................................. Amended to clarify that renewable
fuel contained in imported heating
oil and jet fuel, in addition to
that contained in imported
transportation fuel, may qualify
for RIN generation.
80.1426(c)(2).............................................................. Corrected typographical error.
80.1426(c)(3) and 80.1455(c)............................................... Revised to clarify the conditions
under which a renewable fuel
producer may qualify for the
temporary producer threshold and
not be required to generate RINs
for their renewable fuel.
[[Page 26029]]
80.1426(c)(4).............................................................. Revised to prohibit importers of
renewable fuel produced by a
foreign renewable fuel producer,
or of renewable fuel made with
ethanol produced by a foreign
ethanol producer, from generating
RINs for such fuel or ethanol
unless the foreign renewable fuel
producer or foreign ethanol
producer is registered with EPA as
required in Sec. 80.1450. See
Section IV.D.
80.1426(c)(6).............................................................. Revised to prohibit the generation
of RINs for a volume of renewable
fuel produced from other renewable
fuel that was accompanied by RINs,
either assigned or separated.
80.1426(d)(1), (f)(3)(iv), and (f)(3)(v)................................... Revised to clarify that a unique
BBBBB code in the RIN, or its
equivalent in EMTS, is used to
identify a batch of renewable fuel
from a given renewable fuel
producer or importer.
80.1426(d)(2)(ii).......................................................... Amended to clarify that the RIN
volume used to determine the last
gallon-RIN of a batch of renewable
fuel is identified as VRIN in the
equations at Sec. 80.1426(f).
80.1426, Table 1........................................................... Revised to clarify which feedstocks
may be used to produce renewable
fuel, in order to be consistent
with definitions at Sec.
80.1401. Also revised to clarify
the extent to which distillers
grains and solubles may be dried
via the application of thermal
energy for renewable fuel to
qualify for certain fuel pathways.
80.1426, Table 2........................................................... Revised to clarify the extent to
which renewable fuel producers
must use certain advanced
technologies in order for them to
be considered when determining the
proper D code for their fuel. See
Section IV.B.
80.1426, Table 3........................................................... Corrected typographical errors in
the definitions of VRIN,AB and
VRIN,RF.
80.1426, Table 4........................................................... Revised definitions of different
feedstock energy value (``FE'') to
clarify that they represent
feedstock energy from all
feedstocks used to produce
renewable fuel with a certain D
code.
80.1426(f)(4).............................................................. Revised to clarify that partially
renewable fuel may be used as
transportation fuel, heating oil,
or jet fuel.
80.1426(f)(4)(ii).......................................................... Revised to clarify that the
contribution of non-renewable
feedstocks to the production of
partially renewable fuel should be
ignored when determining the
appropriate pathway for the fuel.
80.1426(f)(5)(i)........................................................... Corrected grammatical and
typographical errors in
definitions of ``separated yard
waste,'' ``separated food waste,''
and ``separated municipal solid
waste.''
80.1426(f)(5)(iii)(B)...................................................... Revised to clarify that a renewable
fuel producer who uses separated
municipal solid waste as a
feedstock must have evidence of
all contracts relating to the
disposal of the specified
recyclable materials.
80.1426(f)(5)(vi).......................................................... Corrected typographical errors and
added the term ``separated'' to
``food waste'' and ``MSW'' to be
consistent with other sections.
80.1426(f)(9)(iv)(C)....................................................... Corrected typographical error.
80.1426(f)(10)............................................................. Revised to clarify the requirements
for generating RINs for renewable
electricity or biogas that is not
commingled with fuel derived from
non-renewable feedstocks.
80.1426(f)(11)............................................................. Revised to clarify the requirements
for generating RINs for renewable
electricity or biogas that is
introduced into a commercial
distribution system.
80.1426(f)(12)............................................................. Amended to clarify the requirements
for gas to be considered biogas
for purposes of determining a
renewable fuel's D code.
80.1427(a)(4)(i)........................................................... Amended to allow RFS1 RINs with an
RR code of ``16'' to be treated as
RFS2 biomass-based diesel RINs
with a D code of 4. See Section
IV.H.
80.1427(a)(7)(i)........................................................... Amended to allow RFS1 RINs with an
RR code of ``16'' to be subtracted
from the 2010 biomass-based diesel
RVO. See Section IV.H.
80.1428(c)................................................................. Revised to clarify that an expired
RIN is considered an invalid RIN
and cannot be used for compliance.
80.1429(b)(5).............................................................. Revised to clarify the requirement
that the producer of renewable
electricity or biogas separate any
RINs they generate for a given
volume of renewable electricity or
biogas.
80.1429(d)................................................................. Revised to clarify that separated
RINs must be accompanied by a PTD
when being transferred from one
party to another.
80.1429(g)................................................................. Revised to clarify that any 2009 or
2010 RINs retired because
renewable fuel was used in a
specific nonroad application may
be reinstated by the retiring
party and used for 2010 RVO
compliance.
80.1430(a)................................................................. Corrected references to subsequent
paragraphs in Sec. 80.1430.
80.1430(b)(2) and (b)(3)................................................... Revised definitions of VOLk to
eliminate redundant language.
80.1440(c)(3).............................................................. Revised to clarify that a renewable
fuel blender who delegates its RIN-
related responsibilities will
remain liable for any violation
associated with its renewable fuel
blending activities.
80.1440(d) and (e)......................................................... Revised to clarify restrictions on
small blenders who upward delegate
their RIN responsibilities.
80.1442(b)(1), (b)(4), (c), and (d)(1)..................................... Revised to clarify that the small
refiner exemption from obligated
party requirements is effective
immediately for those who qualify.
80.1450(a), (b), and (c)................................................... Revised to clarify that
registration information for
obligated parties and exporters of
renewable fuel, renewable fuel
producers (unless grandfathered),
and renewable fuel importers must
be submitted to and accepted by
EPA no later than July 1, 2010, or
60 days prior to generating or
owning RINs, whichever date comes
later.
80.1450(b)................................................................. Revised to require foreign ethanol
producers, as defined in Sec.
80.1401, that produce ethanol used
in renewable fuel for which RINs
are generated by a United States
importer to register their
facilities with EPA prior to the
generation of any RINs for fuel
made with their ethanol. See
Section IV.D.
[[Page 26030]]
80.1450(b)(1)(v)(A), (b)(1)(v)(B), (b)(1)(v)(C), and (b)(1)(vi); removed Revised to require all renewable
(b)(1)(v)(D) and (b)(1)(v)(E). fuel producers to submit
information on their baseline
production volume, including
copies of applicable air permits
and other documents, when
registering their facility. See
Section IV.C. Also revised to
correct typographical and
grammatical errors.
80.1450(b)(1)(vi).......................................................... Revised to clarify the documents
required as part of registration
for a renewable fuel production
facility claiming grandfathered
status in order to demonstrate the
date that construction of the
facility commenced.
80.1450(b)(1)(vii) and (b)(1)(viii)........................................ Revised to clarify specific
registration requirements for
producers of renewable fuel made
from separated yard waste,
separated food waste, and
separated municipal solid waste.
80.1450(b)(2)(i)(A)........................................................ Revised to clarify that the
engineering review that must be
submitted to EPA as part of the
registration process for a
renewable fuel production facility
must be conducted by a
professional engineer licensed by
an appropriate state agency in the
U.S. for domestic facilities, or
by a foreign equivalent for
foreign facilities, and that the
engineer must be an independent
third party. See Section IV.I.
80.1450(b)(2)(ii)(E)....................................................... Moved to Sec. 80.1450(b)(2)(v)
for clarity.
Added 80.1450(b)(2)(vi).................................................... Amended to clarify that owners and
operators of grandfathered
renewable fuel production
facilities must submit the
engineering review no later than
December 31, 2010. While this
allowance was discussed in the
preamble to the final RFS2
regulations, it was inadvertently
left out of the final regulations.
80.1450(b)(3).............................................................. Moved to Sec. 80.1450(b)(1)(iv)
to clarify that a process heat
fuel supply plan must be submitted
as part of registration for all
renewable fuel production
facilities, and revised to clarify
the information that must be
included in such a plan. See
Section IV.J.
80.1450(d)(2).............................................................. Revised to clarify that any
renewable fuel producer who makes
changes to their facility that
will affect the producer's
registration information but will
not affect the renewable fuel
category for which the producer is
registered must update their
registration information seven (7)
days prior to the change. See
Section IV.K.
80.1450(e)................................................................. Revised to clarify that
registration information for RIN
owners must be submitted to EPA at
least 30 days prior to RIN
ownership.
80.1450(f)................................................................. Revised to clarify that any
renewable fuel facility that
claims grandfathered status under
RFS2 must register with EPA no
later than July 1, 2013.
80.1451(a)(1)(xi).......................................................... Revised to clarify that the annual
compliance report that must be
submitted by obligated parties and
exporters of renewable fuel must
include a list of all RINs retired
for compliance in the reporting
period.
80.1451(b)(1)(ii)(D)....................................................... Corrected typographical error.
80.1451(b)(1)(ii)(H)....................................................... Revised to clarify that RIN
generators must report the fuel
type of each batch in their RIN
generation reports.
80.1451(b)(1)(ii)(K) and (b)(1)(ii)(N)..................................... Revised to require information on
quantities, rather than volume, of
renewable fuel feedstocks and co-
products, since feedstocks and co-
products can be measured in mass
or volume.
80.1451(b)(1)(ii)(M)....................................................... Deleted ``of renewable fuel'' to
make language consistent with
other reporting elements required
under Sec. 80.1454(b)(1)(ii).
80.1451(b)(1)(ii)(P) and (b)(1)(ii)(Q)..................................... Revised to clarify reporting
requirements for producers and
importers, as appropriate, of
renewable electricity and biogas
used for transportation and
producers and importers of
renewable fuel produced at
facilities that use biogas for
process heat. Specifically, these
amendments clarify that the
renewable electricity and biogas
should be reported as total energy
used (i.e., kW or BTU) rather than
as a rate (kW/hr or BTU/hr).
80.1451(b)(1)(ii)(R)....................................................... Added the term ``separated'' to
``municipal solid waste'' to be
consistent with other sections.
Also revised to clarify that the
amount of separated MSW used for
renewable fuel that is produced or
imported should be in units of
weight (in tons).
80.1451(c)(1)(iii)(D) and (c)(2)(xv)....................................... Revised to clarify that
reinstatement should apply to all
RFS1 RINs generated in 2009 or
2010.
80.1451(d) and (d)(1)...................................................... Revised to clarify that producers
and RIN-generating importers of
renewable fuel made from
feedstocks not covered by the
aggregate compliance approach must
submit quarterly reports
containing information on their
feedstocks, including a summary of
the types and quantities of
feedstocks used in that quarter.
80.1451(e)................................................................. Revised to clarify requirements for
quarterly reporting on feedstocks
by producers of renewable fuel
that is made from feedstocks
covered by the aggregate
compliance approach if the 2007
baseline amount of U.S.
agricultural land is found to have
been exceeded.
80.1452(b)................................................................. Revised to clarify that RINs must
be generated in EMTS within five
(5) business days of being
assigned to a batch of renewable
fuel. This paragraph is also
revised to clarify the information
required to be submitted via EMTS
for each batch of renewable fuel
produced or imported.
80.1452(c)................................................................. Revised to clarify that
transactions involving RINs
generated on or after July 1, 2010
must be conducted via EMTS within
five (5) business days of a
reportable event. This paragraph
is also revised to clarify the
meaning of the term ``reportable
event'' and to clarify the
information required to be
submitted via EMTS for each
transaction involving RINs
generated on or after July 1,
2010.
80.1453(a)(5).............................................................. Deleted the requirement for price
to appear on the PTD. Although
parties do not need to convey
price information on the PTD,
parties must still be in agreement
on whether they will submit the
price per RIN or price per gallon
of renewable fuel to EMTS.
80.1453(a)(7), (a)(8), and (a)(10)......................................... Revised to clarify the information
required on product transfer
documents (PTDs) that accompany
renewable fuel or separated RINs.
[[Page 26031]]
80.1453(a)(11)(i).......................................................... Revised to clarify the RIN
information required on PTDs for
RFS1 and RFS2 RINs, since RFS2
RINs may be transferred uniquely
or generically in EMTS. Section
80.1453(a)(11)(i) currently does
not identify the information for
RFS1 and RFS2 RINs that must be
transferred on a PTD.
80.1453(a)(11)(ii)......................................................... Revised to reference the
identifying information required
on a PTD for RFS1 and RFS2 RINs.
80.1454(a)(2).............................................................. Revised to clarify that obligated
parties and exporters are not
required to keep the production
outlook reports in Sec. 80.1449.
80.1454(a)(3)(iv).......................................................... Revised to clarify the records that
obligated parties and exporters of
renewable fuel must keep related
to RIN transactions and their
terms.
Added 80.1454(a)(6)........................................................ Amended to clarify that exporters
must maintain invoices, BOLs and
other documents related to the
purchase, transfer and export of
renewable fuel.
80.1454(c)(1)(i), (c)(1)(ii), (d)(3), and (g); added (d)(4)................ Revised to clarify that the
aggregate compliance approach
applies to planted crops and crop
residue from agricultural land in
the U.S. See Section IV.L.
80.1454(c)(2)(ii).......................................................... Deleted allowance that duplicate
copies of reports submitted to EPA
are not required, since this
language is not necessary.
80.1454(d)................................................................. Amended heading to be formatted
consistently when printed in the
Federal Register.
80.1454(d)(3).............................................................. Amended to clarify that domestic
renewable fuel producers that use
separated yard and food waste are
subject to additional
recordkeeping requirements located
at Sec. 80.1454(j). This
provision was also renumbered as
(d)(4). See Section IV.M.
80.1454(g) and (h)......................................................... Revised to include RIN-generating
importers of renewable fuel made
from planted crops or crop residue
from U.S. agricultural land under
the aggregate compliance approach
for renewable biomass.
80.1454(g)(2)(ii).......................................................... Corrected typographical error and
reference within paragraph
(g)(2)(ii).
80.1454(h)(6)(v)........................................................... Revised to clarify that EPA may
revoke approval of a survey plan
if it determines that the approved
survey plan was not fully
implemented.
80.1454(j)................................................................. Added the term ``solid'' to
``separated municipal waste'' to
be consistent with other sections.
80.1454(j)(2)(iii); added (j)(2)(iv)....................................... Amended to require renewable fuel
producers who use separated
municipal solid waste as feedstock
for renewable fuel to maintain
records that demonstrate the fuel
sampling methods used and the
results of all fuel analyses to
determine the non-fossil fraction
of the fuel.
80.1454(k)................................................................. Revised to clarify recordkeeping
requirements for a renewable fuel
producer that generates RINs for
biogas or electricity produced
from renewable biomass.
80.1455(a), (b), (c), and (d).............................................. Corrected typographical errors.
80.1460(c)(2); removed 80.1460(c)(3)....................................... Revised to eliminate redundant
language.
80.1463(a)................................................................. Corrected typographical error.
80.1463(b)................................................................. Revised to clarify that any person
that fails to meet their RVOs, or
causes another person to fail to
meet their RVOs during any
compliance period, is subject to a
separate day of violation for each
day in the compliance period.
80.1464(a)(1)(i)(A)........................................................ Corrected references to paragraphs
in Sec. 80.1430.
80.1464(a)(1)(iv)(A)....................................................... Corrected typographical error.
80.1464(a)(1)(iv)(D); removed 80.1464(a)(1)(vii)........................... Revised to clarify the attest
procedures specific to an exporter
of renewable fuel and deleted the
requirement that each exporter's
RVO be calculated from a sampling
of renewable fuel batches, as
doing so is infeasible.
80.1464(b)(1)(i)........................................................... Corrected references to paragraphs
(d) and (e).
80.1464(b)(1)(ii).......................................................... Revised to clarify that the number
of gallon-RINs must be computed
for each batch of renewable fuel
produced or imported by a RIN
generator as part of the attest
engagement requirements.
80.1464(c)(2)(ii).......................................................... Corrected typographical error.
80.1465(a)(6).............................................................. Restructured paragraph to clarify
meaning.
80.1465(d)(1)(ii).......................................................... Revised to clarify that the volume
of imported RFS-FRFUEL must be
temperature-corrected to 60
[deg]F.
----------------------------------------------------------------------------------------------------------------
B. Advanced Technologies for Renewable Fuel Pathways
The final RFS2 rule includes two corn ethanol pathways in Table 1
of Sec. 80.1426 that require the use of advanced technologies at the
production facility as a prerequisite to the generation of RINs. The
advanced technologies are listed in Table 2 of Sec. 80.1426. However,
only three of these advanced technologies are explicitly defined in
Sec. 80.1401. To clarify our intent with regard to implementation of
these advanced technologies, we have created new definitions for
membrane separation and raw starch hydrolysis. We also replaced the
existing definition of ``fractionation of feedstocks'' with the
definition for ``corn oil fractionation'' to be more consistent with
the terminology used in Table 2 of Sec. 80.1426. Finally, we modified
the definition of ``combined heat and power (CHP)'' and clarified in
Table 2 of Sec. 80.1426 the degree to which it, as well as the other
advanced technologies, must be implemented in order to represent a
valid advanced technology for the generation of RINs.
C. Baseline Production Volume for All Renewable Fuel Production
Facilities
Section 80.1450(b)(1)(v) currently requires information pertinent
to facilities described in Sec. 80.1403(c) and (d), i.e., those
facilities for which the renewable fuel would be exempted
(``grandfathered'') from the requirement of 20 percent GHG emission
reduction. This amendment modifies Sec. 80.1450(b)(1)(v) to require
all renewable fuel producers to include information on their
facilities' baseline volume when registering for RFS2 in order for EPA
to verify renewable fuel
[[Page 26032]]
production volumes and RIN generation reports. Specifically, all owners
and operators of renewable fuel facilities, including those described
in Sec. 80.1403(c) and (d), must submit copies of their most recent
air permits. In addition, the facilities described in Sec. 80.1403(c)
must submit copies of air permits issued no later than December 19,
2007; those described in Sec. 80.1403(d) must submit copies of air
permits issued no later than December 31, 2009. Thus, for those
facilities we will have information on permitted capacity for 2007 and
2009 from which baseline volumes will be determined. We will also have
the most recent permitted capacity for those facilities. In case of
discrepancies in permitted capacity between the most recent permits and
those representing operation in 2007 and 2009, EPA may ask for
additional information. The information required to establish when
construction of the grandfathered facilities commenced is now contained
in Sec. 80.1450(b)(vi), since Sec. 80.1450(b)(v) now addresses only
baseline volume.
D. Foreign Ethanol Producers
We have added a new definition of ``foreign ethanol producer'' to
Sec. 80.1401 that describes foreign producers that produce ethanol for
use in transportation fuel, heating oil or jet fuel but who do not add
denaturant to their product, and therefore do not technically produce
``renewable fuel'' as defined in our regulations. We have also added
amendments to the registration provisions at Sec. 80.1450(b) to
require the registration of these parties if the ethanol they produce
is used to make renewable fuel for which RINs are ultimately generated.
The result of these changes is to require foreign ethanol facilities
that produce ethanol that ultimately becomes part of a renewable fuel
for which RINs are generated to provide EPA the same registration
information as foreign renewable fuel facilities that export their
product to the United States. In both cases the required registration
information is important for enforcement purposes, including verifying
the use of renewable biomass as feedstock and the assignment of
appropriate D codes. The changes made today conform the regulations to
EPA's intent at the time the RFS2 regulations were issued.
E. Permitted Capacity
EPA is modifying the definition of ``permitted capacity'' to
reference the specific permits, by year, which are to be used in
establishing the permitted capacity of facilities claiming the
exemptions specified in Sec. 80.1403(c) and (d). Permitted capacity is
one means by which ``baseline volume'' is determined for purposes of
these exemptions. The registration provisions in the existing
regulations at Sec. 80.1450(b)(1)(v)(C) accurately identify the
permits (by year) that are relevant in establishing ``permitted
capacity'' for facilities claiming the exemptions in Sec. 80.1403(c)
and (d), but EPA neglected to include comparable references in the
existing definition of ``permitted capacity.'' Today's amendments will
help to clarify the regulations by adding comparable references in the
definition of ``permitted capacity.''
F. Definition for ``Naphtha''
The final RFS2 rule includes the term naphtha in Table 1 to Sec.
80.1426 in the form of both ``naphtha'' and ``cellulosic naphtha.'' The
final rule also includes a definition of naphtha in Sec. 80.1401
indicating that naphtha must be a renewable fuel or fuel blending
component. Since naphtha is generally not used as transportation fuel
in its neat form, requiring naphtha to be renewable fuel could cause
confusion. Therefore, we have modified the definition of naphtha to
indicate that it must be a blendstock or fuel blending component.
G. Grandfathering Exemption for Renewable Fuel Production Facilities
Section 80.1403(c)(2) requires as a condition of the exemption from
the 20 percent greenhouse gas (GHG) emission reduction that
construction of the renewable fuel facility be completed within 36
months of commencement. In the proposed RFS2 rule, however, the
regulatory language required completion of construction within 36
months of EISA enactment, which would be December 19, 2010. In
preparing the final rulemaking package we mistakenly removed the
proposed language. Today's rule provides that construction must be
completed within 36 months of December 19, 2007, for facilities that
commenced construction prior to that date. For facilities that
commenced construction after that date, as described in Sec.
80.1403(d), the requirement remains that construction must be completed
within three years of commencement of construction.
H. Use of RFS1 RINs for RFS2 Compliance in 2010
The RFS2 final rule allows RFS1 RINs to be used for compliance
purposes under RFS2. With regard to biodiesel and renewable diesel, the
regulations at Sec. 80.1427(a)(4)(i) indicate that RFS1 RINs with a D
code of 2 and RR code of 15 or 17 may be deemed equivalent to an RFS2
RIN with a D code of 4 representing biomass-based diesel. The RR codes
of 15 and 17 were included in this provision because they are
indicative of biodiesel and renewable diesel, respectively, as
described in the assignment of Equivalence Values in Sec. 80.1415.
However, EPA also approved an Equivalence Value of 1.6 for a particular
renewable fuel diesel substitute that is compositionally similar to
biodiesel. Therefore, we are modifying the RFS1/RFS2 transition
provisions at Sec. 80.1427(a)(4)(i) to also allow RFS1 RINs with a D
code of 2 and RR code of 16 to be deemed equivalent to an RFS2 RIN with
a D code of 4.
I. Engineering Review
Section 80.1450(b)(2)(i)(A) and (b)(2)(i)(B) are amended to clarify
the types of professional engineers who may qualify to conduct the
third-party engineering review for renewable fuel facilities located in
the United States or in a foreign country. The original requirements in
the final regulations in Sec. 80.1450(b)(2)(i)(A) state that domestic
renewable fuel production facilities must have an engineering review
conducted by a ``Professional Chemical Engineer.'' For foreign
facilities, Sec. 80.1450(b)(2)(i)(B) provides that the review should
be conducted by ``a licensed professional engineer or foreign
equivalent who works in the chemical engineering field.'' EPA
interprets these provisions similarly but is amending the regulations
to clarify that the requirements are the same. For both domestic and
foreign facilities the third party engineering review should be
conducted by a professional engineer (or foreign equivalent) who works
in the chemical engineering field. EPA views renewable fuel production
to fall generally within the chemical engineering field, and is
amending the regulation to clarify that professional work experience
related to renewable fuel production will satisfy this requirement. As
required in Sec. 80.1450(b)(2)(ii)(E), the professional engineer shall
provide to EPA documentation of their qualifications to conduct the
engineering review, including but not limited to proof of a license as
a professional engineer and relevant work experience. Additional
language is added to clarify that the professional engineer must also
be an independent third-party, which is further defined in Sec.
80.1450(b)(2)(ii), to qualify to conduct the engineering review.
J. Process Heat Fuel Supply Plan
The requirements for the process heat fuel supply plan were moved
from
[[Page 26033]]
Sec. 80.1450(b)(3) and inserted under Sec. 80.1450(b)(1)(iv) in these
amendments to minimize duplicative requirements and to provide clear
instruction that the process heat fuel supply plan is required to be
submitted as part of registration and will be subject to verification
in the engineer review required in Sec. 80.1450(b)(2).
The requirements for the process heat fuel supply plan have been
divided into two subparts. Section 80.1450(b)(1)(iv)(A) is applicable
to all renewable fuel producers and requires submissions of information
on any process heat fuel that is used at a renewable fuel facility.
Examples of process heat fuel include biomass, biogas, coal, and
natural gas. The information submitted on the type of process heat fuel
and its supply source will help EPA determine if a renewable fuel
facility qualifies as a grandfathered facility pursuant to Sec.
80.1403(d) and help verify a producer's fuel pathway pursuant to Table
1 to Sec. 80.1426.
The required information in Sec. 80.1450(b)(1)(iv)(B) for
renewable fuel producers using biogas as process heat fuel will help
EPA verify the contractual pathway of the biogas from the supplier to
the renewable fuel facility for the purposes of confirming the
applicable fuel pathway pursuant to Table 1 to Sec. 80.1426 and to
Sec. 80.1426(f)(12).
The information submitted under Sec. 80.1450(b)(1)(iv)(A) and
(b)(1)(iv)(B) will also help EPA in our evaluation of the engineering
review that is conducted and submitted by an independent third party
engineer pursuant to Sec. 80.1450(b)(2). Since the requirements for
the process heat fuel supply plan have been revised and relocated
within the regulations, the requirements stipulated in the original
Sec. 80.1450(b)(3)(ii) through (iv) have been deleted to avoid
redundancy.
K. Updating Registration To Account for Facility Changes Not Affecting
the Renewable Fuel Category
Section 80.1450(d)(2) currently requires producers of renewable
fuel to update their facility registration seven (7) days prior to any
change to the facility that does not affect the renewable fuel category
for which the producer is registered. EPA is revising Sec.
80.1450(d)(2) to narrow the scope of changes that would require a
producer to update their registration. The revisions clarify that not
just any change, but only changes to the facility that actually affect
the information submitted to EPA in the producer's original
registration, will trigger such a registration update.
L. Applicability of the Renewable Biomass Aggregate Compliance Approach
Sections 80.1451 and 80.1454 include requirements for renewable
fuel producers to report and maintain records to affirm that their
feedstocks meet the definition of renewable biomass and come from
qualifying land. Through amendments to these two sections, EPA is
clarifying our intent, as discussed in the preamble to the final RFS2
regulations, that producers, either domestic or foreign, who use crops
and crop residue from existing U.S. agricultural land are covered by
the renewable biomass aggregate compliance approach for those
particular feedstocks, as described in Sec. 80.1454(g), and need not
keep detailed records or report to EPA concerning whether those
particular feedstocks meet the definition of renewable biomass.
However, if a producer (domestic or foreign) uses any type of feedstock
other than crops and crop residue from existing U.S. agricultural land,
then he or she must keep records and report to EPA to demonstrate that
their feedstocks meet the definition of renewable biomass. This
includes maintaining records that show that the feedstock type is one
allowed under the renewable biomass definition under the RFS2
regulations and that the feedstock is harvested from qualifying lands,
where applicable.
M. Additional Recordkeeping Requirements for Renewable Fuel Producers
Using Separated Yard and Food Waste as a Feedstock
Section 80.1454(d)(3) currently requires that domestic renewable
fuel producers using feedstock other than planted trees or tree residue
from actively managed tree plantations, slash or pre-commercial
thinnings from non-federal forestland, biomass from areas at risk of
wildfire, crops or crop residue covered by the aggregate compliance
approach under Sec. 80.1454(g), or any feedstock covered by an
alternative biomass tracking approach under Sec. 80.1454(h) must
maintain documents from their feedstock supplier certifying that their
feedstocks meet the definition of renewable biomass. While separated
yard and food waste falls into this category, parties using these
feedstocks are also subject to the additional recordkeeping
requirements in Sec. 80.1454(j). Therefore, EPA is revising Sec.
80.1454(d)(3) to clarify that renewable fuel producers that use
separated yard and food waste as a feedstock are subject to the
additional requirements in Sec. 80.1454(j).
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) the
Agency must determine whether the regulatory action is ``significant''
and therefore subject to OMB review and the requirements of the
Executive Order. The Order defines ``significant regulatory action'' as
one that is likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
It has been determined that this action is not a ``significant
regulatory action'' under the terms of Executive Order 12866 and is
therefore not subject to OMB review.
B. Paperwork Reduction Act
This action does not impose any new information collection burden.
The corrections, clarifications, and modifications to the final RFS2
regulations contained in this rule are within the scope of the
information collection requirements submitted to the Office of
Management and Budget (OMB) for the final RFS2 regulations. OMB has
partially approved the information collection requirements contained in
the existing regulations at 40 CFR part 80, subpart M under the
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and
has assigned OMB control number 2060-0637. The remaining RFS2
information collection requirements are currently pending approval at
OMB (EPA ICR No. 2333.02). The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the
[[Page 26034]]
Administrative Procedure Act or any other statute unless the agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. Small entities include small
businesses, small organizations, and small governmental jurisdictions.
For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's (SBA) regulations at 13 CFR
121.201; (2) a small governmental jurisdiction that is a government of
a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
After considering the economic impacts of this action on small
entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. This direct
final rule will not impose any requirements on small entities that were
not already considered under the final RFS2 regulations, as it makes
relatively minor corrections and modifications to those regulations.
D. Unfunded Mandates Reform Act
This rule does not contain a Federal mandate that may result in
expenditures of $100 million or more for State, local, and tribal
governments, in the aggregate, or the private sector in any one year.
We have determined that this action will not result in expenditures of
$100 million or more for the above parties and thus, this rule is not
subject to the requirements of sections 202 or 205 of UMRA.
This rule is also not subject to the requirements of section 203 of
UMRA because it contains no regulatory requirements that might
significantly or uniquely affect small governments. It only applies to
gasoline, diesel, and renewable fuel producers, importers, distributors
and marketers and makes relatively minor corrections and modifications
to the RFS2 regulations.
E. Executive Order 13132 (Federalism)
This action does not have federalism implications. It will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132. This action only applies to
gasoline, diesel, and renewable fuel producers, importers, distributors
and marketers and makes relatively minor corrections and modifications
to the RFS2 regulations. Thus, Executive Order 13132 does not apply to
this action.
F. Executive Order 13175 (Consultation and Coordination With Indian
Tribal Governments)
This direct final rule does not have tribal implications, as
specified in Executive Order 13175 (65 FR 67249, November 9, 2000). It
applies to gasoline, diesel, and renewable fuel producers, importers,
distributors and marketers. This action makes relatively minor
corrections and modifications to the RFS regulations, and does not
impose any enforceable duties on communities of Indian tribal
governments. Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as applying
only to those regulatory actions that concern health or safety risks,
such that the analysis required under section 5-501 of the EO has the
potential to influence the regulation. This action is not subject to EO
13045 because it does not establish an environmental standard intended
to mitigate health or safety risks.
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This rule is not subject to Executive Order 13211 (66 FR 18355 (May
22, 2001)), because it is not a significant regulatory action under
Executive Order 12866.
I. National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
This action does not involve technical standards. Therefore, EPA
did not consider the use of any voluntary consensus standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
Federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
EPA has determined that this direct final rule will not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it does not
affect the level of protection provided to human health or the
environment. These technical amendments do not relax the control
measures on sources regulated by the RFS regulations and therefore will
not cause emissions increases from these sources.
K. Congressional Review Act
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
L. Clean Air Act Section 307(d)
This rule is subject to Section 307(d) of the CAA. Section
307(d)(7)(B) provides that ``[o]nly an objection to a rule or procedure
which was raised with reasonable specificity during the period for
public comment (including any public hearing) may be raised during
judicial review.'' This section also provides a mechanism for the EPA
to
[[Page 26035]]
convene a proceeding for reconsideration, ``[i]f the person raising an
objection can demonstrate to the EPA that it was impracticable to raise
such objection within [the period for public comment] or if the grounds
for such objection arose after the period for public comment (but
within the time specified for judicial review) and if such objection is
of central relevance to the outcome of the rule.'' Any person seeking
to make such a demonstration to the EPA should submit a Petition for
Reconsideration to the Office of the Administrator, U.S. EPA, Room
3000, Ariel Rios Building, 1200 Pennsylvania Ave., NW., Washington, DC
20460, with a copy to both the person(s) listed in the preceding FOR
FURTHER INFORMATION CONTACT section, and the Director of the Air and
Radiation Law Office, Office of General Counsel (Mail Code 2344A), U.S.
EPA, 1200 Pennsylvania Ave., NW., Washington, DC 20460.
List of Subjects in 40 CFR Part 80
Environmental protection, Administrative practice and procedure,
Agriculture, Air pollution control, Confidential business information,
Diesel Fuel, Energy, Forest and Forest Products, Fuel additives,
Gasoline, Imports, Motor vehicle pollution, Penalties, Petroleum,
Reporting and recordkeeping requirements.
Dated: April 30, 2010.
Lisa P. Jackson,
Administrator.
0
For the reasons set forth in the preamble, 40 CFR part 80 is amended as
follows:
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7542, 7545, and 7601(a).
0
2. Section 80.1401 is amended as follows:
0
a. By revising the definitions of ``Advanced biofuel'', ``Biogas'',
``Combined heat and power (CHP)'', ``Corn oil extraction'', ``Exporter
of renewable fuel'', ``Forestland'', ``Naphtha'', ``Non-ester renewable
diesel'', ``Pastureland'', ``Pre-commercial thinnings'', ``Renewable
Identification Number (RIN)'', and ``Transportation fuel''.
0
b. By removing the definitions of ``Fractionation of feedstocks'' and
``Yard waste''.
0
c. By adding definitions of ``Actual peak capacity'', ``Baseline
volume'', ``Corn oil fractionation'', Foreign ethanol producer'',
``Membrane separation'', ``Permitted capacity'', ``Raw starch
hydrolysis'', and ``Renewable electricity'', in alphabetical order.
Sec. 80.1401 Definitions.
* * * * *
Actual peak capacity means 105% of the maximum annual volume of
renewable fuels produced from a specific renewable fuel production
facility on a calendar year basis.
(1) For facilities that commenced construction prior to December
19, 2007, the actual peak capacity is based on the last five calendar
years prior to 2008, unless no such production exists, in which case
actual peak capacity is based on any calendar year after startup during
the first three years of operation.
(2) For facilities that commenced construction after December 19,
2007 and before January 1, 2010 that are fired with natural gas,
biomass, or a combination thereof, the actual peak capacity is based on
any calendar year after startup during the first three years of
operation.
(3) For all other facilities not included above, the actual peak
capacity is based on the last five calendar years prior to the year in
which the owner or operator registers the facility under the provisions
of Sec. 80.1450, unless no such production exists, in which case
actual peak capacity is based on any calendar year after startup during
the first three years of operation.
Advanced biofuel means renewable fuel, other than ethanol derived
from cornstarch, that has lifecycle greenhouse gas emissions that are
at least 50 percent less than baseline lifecycle greenhouse gas
emissions.
* * * * *
Baseline volume means the permitted capacity or, if permitted
capacity cannot be determined, the actual peak capacity of a specific
renewable fuel production facility on a calendar year basis.
* * * * *
Biogas means a mixture of hydrocarbons that is a gas at 60 degrees
Fahrenheit and 1 atmosphere of pressure that is produced through the
conversion of organic matter. Only biogas that is used as renewable
fuel can generate RINs. Biogas includes propane, landfill gas, manure
digester gas, and sewage waste treatment gas.
* * * * *
Combined heat and power (CHP), also known as cogeneration, refers
to industrial processes in which waste heat from the production of
electricity is used for process energy in the renewable fuel production
facility.
* * * * *
Corn oil extraction means the recovery of corn oil from the thin
stillage and/or the distillers grains and solubles produced by a dry
mill corn ethanol plant, most often by mechanical separation.
Corn oil fractionation means a process whereby seeds are divided in
various components and oils are removed prior to fermentation for the
production of ethanol.
* * * * *
Exporter of renewable fuel means:
(1) A person that transfers any renewable fuel from a location
within the contiguous 48 states or Hawaii to a location outside the
contiguous 48 states and Hawaii; and
(2) A person that transfers any renewable fuel from a location in
the contiguous 48 states or Hawaii to Alaska or a United States
territory, unless that state or territory has received an approval from
the Administrator to opt-in to the renewable fuel program pursuant to
Sec. 80.1443.
* * * * *
Foreign ethanol producer means a person from a foreign country or
from an area that has not opted into the program requirements of this
subpart who produces ethanol for use in transportation fuel, heating
oil, or jet fuel but who does not add denaturant to their product as
described in paragraph (2) of the definition of renewable fuel in this
section.
Forestland is generally undeveloped land covering a minimum area of
1 acre upon which the primary vegetative species are trees, including
land that formerly had such tree cover and that will be regenerated and
tree plantations. Tree-covered areas in intensive agricultural crop
production settings, such as fruit orchards, or tree-covered areas in
urban settings, such as city parks, are not considered forestland.
* * * * *
Membrane separation means the process of dehydrating ethanol to
fuel grade (> 99.5% purity) using a hydrophilic membrane.
* * * * *
Naphtha means a blendstock or fuel blending component falling
within the boiling range of gasoline.
* * * * *
Non-ester renewable diesel, also known as renewable diesel, means
renewable fuel which is all of the following:
(1) A fuel which can be used in an engine designed to operate on
conventional diesel fuel, or be heating oil or jet fuel.
(2) Not a mono-alkyl ester.
* * * * *
[[Page 26036]]
Pastureland is land managed for the production of select indigenous
or introduced forage plants for livestock grazing or hay production,
and to prevent succession to other plant types.
Permitted capacity means 105% of the maximum permissible volume
output of renewable fuel that is allowed under operating conditions
specified in the most restrictive of all applicable preconstruction,
construction and operating permits issued by regulatory authorities
(including local, regional, state or a foreign equivalent of a state,
and federal permits, or permits issued by foreign governmental
agencies) that govern the construction and/or operation of the
renewable fuel facility, based on an annual volume output in a calendar
year basis. If the permit specifies maximum rated volume output on an
hourly basis, then annual volume output is determined by multiplying
the hourly output by 8,322 hours per year.
(1) For facilities that commenced construction prior to December
19, 2007, the permitted capacity is based on permits issued or revised
no later than December 19, 2007.
(2) For facilities that commenced construction after December 19,
2007 and before January 1, 2010 that are fired with natural gas,
biomass, or a combination thereof, the permitted capacity is based on
permits issued or revised no later than December 31, 2009.
(3) For facilities other than those described in paragraphs (1) and
(2) of this definition, permitted capacity is based on the most recent
applicable permits.
* * * * *
Pre-commercial thinnings are trees, including unhealthy or diseased
trees, removed to reduce stocking to concentrate growth on more
desirable, healthy trees, or other vegetative material that is removed
to promote tree growth.
Raw starch hydrolysis means the process of hydrolyzing corn starch
into simple sugars at low temperatures, generally not exceeding 100
[deg]F (38 [deg]C), using enzymes designed to be effective under these
conditions.
* * * * *
Renewable electricity means electricity that meets the definition
of renewable fuel.
* * * * *
Renewable Identification Number (RIN), is a unique number generated
to represent a volume of renewable fuel pursuant to Sec. Sec. 80.1425
and 80.1426.
(1) Gallon-RIN is a RIN that represents an individual gallon of
renewable fuel used for compliance purposes pursuant to Sec. 80.1427
to satisfy a renewable volume obligation.
(2) Batch-RIN is a RIN that represents multiple gallon-RINs.
* * * * *
Transportation fuel means fuel for use in motor vehicles, motor
vehicle engines, nonroad vehicles, or nonroad engines (except fuel for
use in ocean-going vessels).
* * * * *
0
3. Section 80.1403 is amended as follows:
0
a. By revising paragraph (a).
0
b. By revising paragraph (c)(2).
0
c. By revising paragraphs (d) introductory text and (d)(3).
Sec. 80.1403 Which fuels are not subject to the 20% GHG thresholds?
(a) For purposes of this section, the following definitions apply:
(1) Commence construction, as applied to facilities that produce
renewable fuel, means that:
(i) The owner or operator has all necessary preconstruction
approvals or permits (as defined at 40 CFR 52.21(b)(10)), and has
satisfied either of the following:
(A) Begun, or caused to begin, a continuous program of actual
construction on-site (as defined in 40 CFR 52.21(b)(11)).
(B) Entered into binding agreements or contractual obligations,
which cannot be cancelled or modified without substantial loss to the
owner or operator, to undertake a program of actual construction of the
facility.
(ii) For multi-phased projects, the commencement of construction of
one phase does not constitute commencement of construction of any later
phase, unless each phase is mutually dependent for physical and
chemical reasons only.
(2) [Reserved]
* * * * *
(c) * * *
(2) Completed construction by December 19, 2010.
(d) The baseline volume of ethanol that is produced from facilities
and any expansions all of which commenced construction after December
19, 2007 and on or before December 31, 2009, shall not be subject to
the requirement that lifecycle greenhouse gas emissions be at least 20
percent less than baseline lifecycle greenhouse gas emissions if such
facilities are fired with natural gas, biomass, or a combination
thereof at all times the facility operated between December 19, 2007
and December 31, 2009 and if:
* * * * *
(3) The baseline volume continues to be produced through processes
fired with natural gas, biomass, or any combination thereof.
* * * * *
0
4. Section 80.1405 is amended by revising paragraph (c) to read as
follows:
Sec. 80.1405 What are the Renewable Fuel Standards?
* * * * *
(c) EPA will calculate the annual renewable fuel percentage
standards using the following equations:
[GRAPHIC] [TIFF OMITTED] TR10MY10.001
[GRAPHIC] [TIFF OMITTED] TR10MY10.002
[GRAPHIC] [TIFF OMITTED] TR10MY10.003
[[Page 26037]]
[GRAPHIC] [TIFF OMITTED] TR10MY10.004
Where:
StdCB,i = The cellulosic biofuel standard for year i, in
percent.
StdBBD,i = The biomass-based diesel standard for year i,
in percent.
StdAB,i = The advanced biofuel standard for year i, in
percent.
StdRF,i = The renewable fuel standard for year i, in
percent.
RFVCB,i = Annual volume of cellulosic biofuel required by
section 211(o)(2)(B) of the Clean Air Act for year i, or volume as
adjusted pursuant to section 211(o)(7)(D) of the Clean Air Act, in
gallons.
RFVBBD,i = Annual volume of biomass-based diesel required
by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVAB,i = Annual volume of advanced biofuel required by
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVRF,i = Annual volume of renewable fuel required by
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
Gi = Amount of gasoline projected to be used in the 48
contiguous states and Hawaii, in year i, in gallons.
Di = Amount of diesel projected to be used in the 48
contiguous states and Hawaii, in year i, in gallons.
RGi = Amount of renewable fuel blended into gasoline that
is projected to be consumed in the 48 contiguous states and Hawaii,
in year i, in gallons.
RDi = Amount of renewable fuel blended into diesel that
is projected to be consumed in the 48 contiguous states and Hawaii,
in year i, in gallons.
GSi = Amount of gasoline projected to be used in Alaska
or a U.S. territory, in year i, if the state or territory has opted-
in or opts-in, in gallons.
RGSi = Amount of renewable fuel blended into gasoline
that is projected to be consumed in Alaska or a U.S. territory, in
year i, if the state or territory opts-in, in gallons.
DSi = Amount of diesel projected to be used in Alaska or
a U.S. territory, in year i, if the state or territory has opted-in
or opts-in, in gallons.
RDSi = Amount of renewable fuel blended into diesel that
is projected to be consumed in Alaska or a U.S. territory, in year
i, if the state or territory opts-in, in gallons.
GEi = The amount of gasoline projected to be produced by
exempt small refineries and small refiners, in year i, in gallons in
any year they are exempt per Sec. Sec. 80.1441 and 80.1442,
respectively. Assumed to equal 0.119*(Gi-RGi).
DEi = The amount of diesel fuel projected to be produced
by exempt small refineries and small refiners in year i, in gallons,
in any year they are exempt per Sec. Sec. 80.1441 and 80.1442,
respectively. Assumed to equal 0.152*(Di-RDi).
* * * * *
0
5. Section 80.1406 is amended by revising paragraphs (c)(1) and (f) to
read as follows:
Sec. 80.1406 Who is an obligated party under the RFS program?
* * * * *
(c) * * *
(1) Except as provided in paragraphs (c)(2), (d) and (e) of this
section, an obligated party may comply with the requirements of
paragraph (b) of this section in the aggregate for all of the
refineries that it operates, or for each refinery individually.
* * * * *
(f) Where a refinery or import facility is jointly owned by two or
more parties, the requirements of paragraph (b) of this section may be
met by one of the joint owners for all of the gasoline or diesel fuel
produced/imported at the facility, or each party may meet the
requirements of paragraph (b) of this section for the portion of the
gasoline or diesel fuel that it produces or imports, as long as all of
the gasoline or diesel fuel produced/imported at the facility is
accounted for in determining the Renewable Volume Obligations under
Sec. 80.1407. In either case, all joint owners are subject to the
liability provisions of Sec. 80.1461(d).
* * * * *
0
6. Section 80.1415 is amended as follows:
0
a. By revising paragraph (a).
0
b. By revising paragraphs (b)(5) and (b)(6).
0
c. By revising paragraph (c)(1).
Sec. 80.1415 How are equivalence values assigned to renewable fuel?
(a)(1) Each gallon of a renewable fuel, or gallon equivalent
pursuant to paragraph (b)(5) or (b)(6) of this section, shall be
assigned an equivalence value by the producer or importer pursuant to
paragraph (b) or (c) of this section.
(2) The equivalence value is a number that is used to determine how
many gallon-RINs can be generated for a gallon of renewable fuel
according to Sec. 80.1426.
(b) * * *
(5) 77,000 Btu (lower heating value) of biogas shall represent one
gallon of renewable fuel with an equivalence value of 1.0.
(6) 22.6 kW-hr of electricity shall represent one gallon of
renewable fuel with an equivalence value of 1.0.
* * * * *
(c) * * *
(1) The equivalence value for renewable fuels described in
paragraph (b)(7) of this section shall be calculated using the
following formula:
EV = (R/0.972) * (EC/77,000)
Where:
EV = Equivalence Value for the renewable fuel, rounded to the
nearest tenth.
R = Renewable content of the renewable fuel. This is a measure of
the portion of a renewable fuel that came from renewable biomass,
expressed as a fraction, on an energy basis.
EC = Energy content of the renewable fuel, in Btu per gallon (lower
heating value).
* * * * *
0
7. Section 80.1416 is revised to read as follows:
Sec. 80.1416 Petition process for evaluation of new renewable fuels
pathways.
(a) Pursuant to this section, a party may petition EPA to assign a
D code for their renewable fuel if any of the following apply:
(1) The renewable fuel pathway has not been evaluated by EPA to
determine if it qualifies for a D code pursuant to Sec. 80.1426(f).
(2) The renewable fuel pathway has been determined by EPA not to
qualify for a D code pursuant to Sec. 80.1426(f) and the party can
document significant differences between their fuel production
processes and the fuel production processes already considered by EPA.
(3) The renewable fuel pathway has been determined to qualify for a
certain D code pursuant to Sec. 80.1426(f) and the party can document
significant differences between their fuel production processes and the
fuel production processes already considered by EPA that may qualify
their fuel pathway for a different D code.
(b)(1) Any petition under paragraph (a) of this section shall
include all the following:
(i) The information specified under Sec. 80.76.
(ii) A technical justification that includes a description of the
renewable fuel, feedstock(s) used to make it, and the production
process. The justification must include process modeling flow charts.
(iii) A mass balance for the pathway, including feedstocks, fuels
produced, co-products, and waste materials production.
[[Page 26038]]
(iv) Information on co-products, including their expected use and
market value.
(v) An energy balance for the pathway, including a list of any
energy and process heat inputs and outputs used in the pathway,
including such sources produced off site or by another entity.
(vi) Any other relevant information, including information
pertaining to energy saving technologies or other process improvements.
(vii) The Administrator may ask for additional information to
complete the lifecycle greenhouse gas assessment of the new fuel or
pathway.
(2) For those companies who use a feedstock not previously
evaluated by EPA under this subpart, the petition must include all the
following in addition to the requirements in paragraph (b)(1) of this
section:
(i) Type of feedstock and description of how it meets the
definition of renewable biomass.
(ii) Market value of the feedstock.
(iii) List of other uses for the feedstock.
(iv) List of chemical inputs needed to produce the renewable
biomass source of the feedstock and prepare the renewable biomass for
processing into feedstock.
(v) Identify energy needed to obtain the feedstock and deliver it
to the facility. If applicable, identify energy needed to plant and
harvest the renewable biomass source of the feedstock and modify the
source to create the feedstock.
(vi) Current and projected quantities of the feedstock that will be
used to produce the fuel, including information on current and
projected yields for feedstocks that are harvested or collected.
(vii) The Administrator may ask for additional information to
complete the lifecycle Greenhouse Gas assessment of the new fuel or
pathway.
(c)(1) A company may only submit one petition per pathway. If EPA
determines the petition to be incomplete, then the company may
resubmit.
(2) The petition must be signed and certified as meeting all the
applicable requirements of this subpart by the responsible corporate
officer of the applicant company.
(3) If EPA determines that the petition is incomplete then EPA will
notify the applicant in writing that the petition is incomplete and
will not be reviewed further. However, an amended petition that
corrects the omission may be re-submitted for EPA review.
(4) If the fuel or pathway described in the petition does not meet
the definitions in Sec. 80.1401 of renewable fuel, advanced biofuel,
cellulosic biofuel, or biomass-based diesel, then EPA will notify the
applicant in writing that the petition is denied and will not be
reviewed further.
(d) A D code must be approved prior to the generation of RINs for
the fuel in question.
(e) The petition under this section shall be submitted on forms and
following procedures as prescribed by EPA.
0
8. Section 80.1425 is amended by revising the introductory text and
paragraph (i) to read as follows:
Sec. 80.1425 Renewable Identification Numbers (RINs).
RINs generated on or after July 1, 2010 shall not be generated as a
38-digit code, but shall be identified by the information specified in
paragraphs (a) through (i) of this section and introduced into EMTS as
data elements during the generation of RINs pursuant to Sec.
80.1452(b). For RINs generated prior to July 1, 2010, each RIN is a 38-
digit code of the following form:
KYYYYCCCCFFFFFBBBBBRRDSSSSSSSSEEEEEEEE
* * * * *
(i) EEEEEEEE is a number representing the last gallon-RIN
associated with a batch of renewable fuel. EEEEEEEE will be identical
to SSSSSSSS if the batch-RIN represents a single gallon-RIN. The value
of EEEEEEEE will be determined by the number of gallon-RINs being
generated for the batch as described in Sec. 80.1426(f).
0
9. Section 80.1426 is amended as follows:
0
a. By revising paragraph (a)(2).
0
b. By revising paragraphs (c)(2), (c)(3), (c)(4), and (c)(6)(ii).
0
c. By revising paragraphs (d)(1) introductory text and (d)(2)(ii).
0
d. By revising paragraph (f)(1) and Table 1 to Sec. 80.1426 and Table
2 to Sec. 80.1426.
0
e. By revising paragraphs (f)(3)(iv) and (f)(3)(v), and Table 3 to
Sec. 80.1426.
0
f. By revising paragraph (f)(4).
0
g. By revising paragraphs (f)(5)(i) and (f)(5)(iii)(B).
0
h. By revising paragraph (f)(10).
0
i. By revising paragraphs (f)(11)(i) introductory text, (f)(11)(i)(C),
(f)(11)(ii) introductory text, (f)(11)(iii) introductory text,
(f)(11)(iii)(A), and (f)(11)(iv).
0
j. By revising paragraph (f)(12).
Sec. 80.1426 How are RINs generated and assigned to batches of
renewable fuel by renewable fuel producers or importers?
(a) * * *
(2) To generate RINs for imported renewable fuel, including any
renewable fuel contained in imported transportation fuel, heating oil,
or jet fuel, importers must obtain information from a foreign producer
that is registered pursuant to Sec. 80.1450 sufficient to make the
appropriate determination regarding the applicable D code and
compliance with the renewable biomass definition for each imported
batch for which RINs are generated.
* * * * *
(c) * * *
(2) Small producer/importer threshold. Pursuant to Sec. 80.1455(a)
and (b), renewable fuel producers that produce less than 10,000 gallons
a year of renewable fuel, and importers that import less than 10,000
gallons a year of renewable fuel, are not required to generate and
assign RINs to batches of renewable fuel that satisfy the requirements
of paragraph (a)(1) of this section that they produce or import.
(3) Temporary new producer threshold. Pursuant to Sec. 80.1455(c)
and (d), new renewable fuel producers that produce less than 125,000
gallons of renewable fuel a year are not required to generate and
assign RINs to batches of renewable fuel to satisfy the requirements of
paragraph (a)(1) of this section.
(i) The provisions of this paragraph (c)(3) apply only to new
facilities, for a maximum of three years beginning with the calendar
year in which the production facility produces its first gallon of
renewable fuel.
(ii) [RESERVED]
(4) Importers shall not generate RINs for renewable fuel imported
from a foreign renewable fuel producer, or for renewable fuel made with
ethanol produced by a foreign ethanol producer, unless the foreign
renewable fuel producer or foreign ethanol producer is registered with
EPA as required in Sec. 80.1450.
* * * * *
(6) * * *
(ii) The fuel has been produced from a chemical conversion process
that uses another renewable fuel as a feedstock, the renewable fuel
used as a feedstock was produced by another party, and RINs were
received with the renewable fuel.
(A) Parties who produce renewable fuel made from a feedstock which
itself was a renewable fuel received with RINs, shall assign the
original RINs to the new renewable fuel.
[[Page 26039]]
(B) [Reserved]
(d)(1) Definition of batch. For the purposes of this section and
Sec. 80.1425, a ``batch of renewable fuel'' is a volume of renewable
fuel that has been assigned a unique BBBBB code in the RIN, or its
equivalent in EMTS, within a calendar year by the producer or importer
of the renewable fuel in accordance with the provisions of this section
and Sec. 80.1425.
* * * * *
(2) * * *
(ii) The value of EEEEEEEE in the batch-RIN shall represent the
last gallon-RIN associated with the volume of renewable fuel, based on
the RIN volume VRIN determined pursuant to paragraph (f) of
this section.
* * * * *
(f) * * *
(1) Applicable pathways. D codes shall be used in RINs generated by
producers or importers of renewable fuel according to the pathways
listed in Table 1 to this section, or as approved by the Administrator.
In choosing an appropriate D code, producers and importers may
disregard any incidental, de minimis feedstock contaminants that are
impractical to remove and are related to customary feedstock production
and transport.
Table 1 to Sec. 80.1426--Applicable D Codes for Each Fuel Pathway for Use in Generating RINs
----------------------------------------------------------------------------------------------------------------
Fuel type Feedstock Production process requirements D-code
----------------------------------------------------------------------------------------------------------------
Ethanol............................. Corn starch............ All of the following:................. 6
Dry mill process, using natural gas,
biomass, or biogas for process energy
and at least two advanced
technologies from Table 2 to this
section..
Ethanol............................. Corn starch............ All of the following:................. 6
Dry mill process, using natural gas,
biomass, or biogas for process energy
and at least one of the advanced
technologies from Table 2 to this
section plus drying no more than 65%
of the distillers grains with
solubles it markets annually..
Ethanol............................. Corn starch............ All of the following:................. 6
Dry mill process, using natural gas,
biomass, or biogas for process energy
and drying no more than 50% of the
distillers grains with solubles it
markets annually..
Ethanol............................. Corn starch............ Wet mill process using biomass or 6
biogas for process energy..
Ethanol............................. Starches from crop Fermentation using natural gas, 6
residue and annual biomass, or biogas for process energy.
covercrops.
Biodiesel, and renewable diesel..... Soy bean oil; One of the following:................. 4
Oil from annual Trans-Esterification..................
covercrops;.
Algal oil; Hydrotreating
Biogenic waste oils/ Excluding processes that co-process
fats/greases; renewable biomass and petroleum.
Non-food grade corn oil
Biodiesel, and renewable diesel..... Soy bean oil; One of the following:................. 5
Oil from annual Trans-Esterification..................
covercrops;.
Algal oil; Hydrotreating
Biogenic waste oils/ Includes only processes that co-
fats/greases; process renewable biomass and
petroleum.
Non-food grade corn oil
Ethanol............................. Sugarcane.............. Fermentation.......................... 5
Ethanol............................. Cellulosic Biomass from Any................................... 3
crop residue, slash,
pre-commercial
thinnings and tree
residue, annual
covercrops,
switchgrass, and
miscanthus; cellulosic
components of
separated yard waste;
cellulosic components
of separated food
waste; and cellulosic
components of
separated MSW.
Cellulosic Diesel, Jet Fuel and Cellulosic Biomass from Any................................... 7
Heating Oil. crop residue, slash,
pre-commercial
thinnings and tree
residue, annual
covercrops,
switchgrass, and
miscanthus; cellulosic
components of
separated yard waste;
cellulosic components
of separated food
waste; and cellulosic
components of
separated MSW.
Butanol............................ Corn starch............ Fermentation; dry mill using natural 6
gas, biomass, or biogas for process
energy.
[[Page 26040]]
Cellulosic Naphtha.................. Cellulosic Biomass from Fischer-Tropsch process............... 3
crop residue, slash,
pre-commercial
thinnings and tree
residue, annual
covercrops,
switchgrass, and
miscanthus; cellulosic
components of
separated yard waste;
cellulosic components
of separated food
waste; and cellulosic
components of
separated MSW.
Ethanol, renewable diesel, jet fuel, The non-cellulosic Any................................... 5
heating oil, and naphtha. portions of separated
food waste.
Biogas.............................. Landfills, sewage waste Any................................... 5
treatment plants,
manure digesters.
----------------------------------------------------------------------------------------------------------------
Table 2 to Sec. 80.1426--Advanced Technologies
------------------------------------------------------------------------
-------------------------------------------------------------------------
Corn oil fractionation that is applied to all corn used to produce
ethanol in the facility.
Corn oil extraction that is applied to all the thin stillage and
distillers grains and solubles produced by the ethanol production
facility.
Membrane separation in which all ethanol dehydration in the ethanol
production facility is done using a hydrophilic membrane.
Raw starch hydrolysis that is used for all starch hydrolysis in the
ethanol production facility instead of hydrolysis using a traditional
high heat (>120 [deg]C) cooking process.
Combined heat and power such that all the thermal energy used at the
facility (including thermal energy produced at the facility and that
which is derived from an off-site waste heat supplier), exclusive of
any thermal energy used for the drying of distillers grains and
solubles, is used to produce electricity prior to being used to meet
the process heat requirements of the facility.
------------------------------------------------------------------------
* * * * *
(3) * * *
(iv) If the pathway applicable to a producer changes on a specific
date, such that one pathway applies before the date and another pathway
applies on and after the date, and each batch is of a single fuel type,
then the applicable D code and unique BBBBB code, or its equivalent in
EMTS, used in generating RINs must change on the date that the change
in pathway occurs and the number of gallon-RINs that shall be generated
for a batch of renewable fuel shall be equal to a volume calculated
according to the following formula:
VRIN = EV * Vs
Where:
VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for a batch with a
single applicable D code.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
(v) If a producer produces batches that are comprised of a mixture
of fuel types with different equivalence values and different
applicable D codes, then separate values for VRIN shall be
calculated for each category of renewable fuel according to formulas in
Table 3 to this section. All batch-RINs thus generated shall be
assigned unique BBBBB codes in the RIN, or their equivalents in EMTS,
for each portion of the batch with a different D code.
Table 3 to Sec. 80.1426--Number of Gallon-RINs To assign to Batch-RINs
With D codes dependent on Fuel Type
------------------------------------------------------------------------
D code to use in batch-RIN Number of gallon-RINs
------------------------------------------------------------------------
D = 3.......................... VRIN, CB = EVCB * Vs, CB
D = 4.......................... VRIN, BBD = EVBBD * Vs, BBD
D = 5.......................... VRIN, AB = EVAB * Vs, AB
D = 6.......................... VRIN, RF = EVRF * Vs, RF
D = 7.......................... VRIN, CD = EVCD * Vs, CD
------------------------------------------------------------------------
Where:
VRIN,CB = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the cellulosic
biofuel portion of the batch with a D code of 3.
VRIN,BBD = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the biomass-
based diesel portion of the batch with a D code of 4.
VRIN,AB = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the advanced
biofuel portion of the batch with a D code of 5.
VRIN,RF = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the renewable
fuel portion of the batch with a D code of 6.
VRIN,CD = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the cellulosic
diesel portion of the batch with a D code of 7.
EVCB = Equivalence value for the cellulosic biofuel
portion of the batch per Sec. 80.1415.
EVBBD = Equivalence value for the biomass-based diesel
portion of the batch per Sec. 80.1415.
EVAB = Equivalence value for the advanced biofuel portion
of the batch per Sec. 80.1415.
EVRF = Equivalence value for the renewable fuel portion
of the batch per Sec. 80.1415.
EVCD = Equivalence value for the cellulosic diesel
portion of the batch per Sec. 80.1415.
Vs,CB = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 3, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,BBD = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 4, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,AB = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 5, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,RF = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 6, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,CD = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 7, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
* * * * *
(4) Renewable fuel that is produced by co-processing renewable
biomass and non-renewable feedstocks simultaneously to produce a fuel
that is partially renewable.
(i) The number of gallon-RINs that shall be generated for a batch
of partially renewable fuel shall be equal
[[Page 26041]]
to a volume VRIN calculated according to Method A or Method
B.
(A) Method A.
(1) VRIN shall be calculated according to the following
formula:
VRIN = EV * Vs * FER/(FER +
FENR)
Where:
VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
FER = Feedstock energy from renewable biomass used to
make the transportation fuel, heating oil, or jet fuel, in Btu.
FENR = Feedstock energy from non-renewable feedstocks
used to make the transportation fuel, heating oil, or jet fuel, in
Btu.
(2) The value of FE for use in paragraph (f)(4)(i)(A)(1) of this
section shall be calculated from the following formula:
FE = M * (1-m) * CF * E
Where:
FE = Feedstock energy, in Btu.
M = Mass of feedstock, in pounds, measured on a daily or per-batch
basis.
m = Average moisture content of the feedstock, in mass percent.
CF = Converted Fraction in annual average mass percent, representing
that portion of the feedstock that is converted into transportation
fuel, heating oil, or jet fuel by the producer.
E = Energy content of the components of the feedstock that are
converted to fuel, in annual average Btu/lb, determined according to
paragraph (f)(7) of this section.
(B) Method B. VRIN shall be calculated according to the
following formula:
VRIN = EV * Vs * R
Where:
VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
R = The renewable fraction of the fuel as measured by a carbon-14
dating test method as provided in paragraph (f)(9) of this section.
(ii) The D code that shall be used in the RINs generated to
represent partially renewable transportation fuel, heating oil, or jet
fuel shall be the D code specified in Table 1 to this section, or a D
code as approved by the Administrator, which corresponds to the pathway
that describes a producer's operations. In determining the appropriate
pathway, the contribution of non-renewable feedstocks to the production
of partially renewable fuel shall be ignored.
(5) * * *
(i) Separated yard waste and food waste means, for the purposes of
this section, waste that is one of the following:
(A) Separated yard waste, which is a feedstock stream consisting of
yard waste kept separate since generation from other waste materials.
Separated yard waste is deemed to be composed entirely of cellulosic
materials.
(B) Separated food waste, which is a feedstock stream consisting of
food waste kept separate since generation from other waste materials,
and which includes food and beverage production waste and post-consumer
food and beverage waste. Separated food waste is deemed to be composed
entirely of non-cellulosic materials, unless a party demonstrates that
a portion of the feedstock is cellulosic through approval of their
facility registration.
(C) Separated municipal solid waste (separated MSW), which is
material remaining after separation actions have been taken to remove
recyclable paper, cardboard, plastics, rubber, textiles, metals, and
glass from municipal solid waste, and which is composed of both
cellulosic and non-cellulosic materials.
* * * * *
(iii) * * *
(B) The fuel producer has evidence of all contracts relating to the
disposition of paper, cardboard, plastics, rubber, textiles, metals,
and glass that are recycled.
* * * * *
(10)(i) For purposes of this section, renewable electricity or
biogas that is not introduced into a distribution system with fuels
derived from non-renewable feedstocks is considered renewable fuel and
the producer may generate RINs if all of the following apply:
(A) The fuel is produced from renewable biomass and qualifies for a
D code in Table 1 to this section or has received approval for use of a
D code by the Administrator;
(B) The fuel producer has entered into a written contract for the
sale and use of a specific quantity of renewable electricity or biogas
as transportation fuel; and
(C) The renewable electricity or biogas is used as a transportation
fuel.
(ii) A producer of renewable electricity that is generated by co-
firing a combination of renewable biomass and fossil fuel may generate
RINs only for the portion attributable to the renewable biomass, using
the procedure described in paragraph (f)(4) of this section.
(11)(i) For purposes of this section, renewable electricity or
biogas that is introduced into a commercial distribution system may be
considered renewable fuel and the producer may generate RINs if:
* * * * *
(C) The quantity of biogas or renewable electricity for which RINs
were generated was sold for use as transportation fuel and for no other
purposes.
(ii) For biogas that is introduced into a commercial distribution
system, the producer may generate RINs only for the volume of biogas
that has been gathered, processed, and injected into a common carrier
pipeline if:
* * * * *
(iii) The fuel used for transportation purposes is considered
produced from renewable biomass only to the extent that:
(A) The amount of fuel sold for use as transportation fuel matches
the amount of fuel derived from renewable biomass that the producer
contracted to have placed into the commercial distribution system; and
* * * * *
(iv) For renewable electricity that is generated by co-firing a
combination of renewable biomass and fossil fuel, the producer may
generate RINs only for the portion attributable to the renewable
biomass, using the procedure described in paragraph (f)(4) of this
section.
(12) For purposes of Table 1 to this section, process heat produced
from combustion of gas at a renewable fuel facility is considered
derived from biomass if the gas is biogas.
(i) For biogas directly transported to the facility without being
placed in a commercial distribution system, all of the following
conditions must be met:
(A) The producer has entered into a written contract for the
procurement of a specific volume of biogas with a specific heat
content.
(B) The volume of biogas was sold to the renewable fuel production
facility, and to no other facility.
(C) The volume and heat content of biogas injected into the
pipeline and the volume of gas used as process heat are measured by
continuous metering.
(D) The common carrier pipeline into which the biogas is placed
ultimately serves the producer's renewable fuel facility.
(ii) For biogas that has been gathered, processed and injected into
a common carrier pipeline, all of the following conditions must be met:
[[Page 26042]]
(A) The producer has entered into a written contract for the
procurement of a specific volume of biogas with a specific heat
content.
(B) The volume of biogas was sold to the renewable fuel production
facility, and to no other facility.
(C) The volume of biogas placed into a common carrier pipeline is
ultimately withdrawn from that pipeline is withdrawn in a manner and at
a time consistent with the transport of fuel between the injection and
withdrawal points.
(D) The volume and heat content of biogas injected into the
pipeline and the volume of gas used as process heat are measured by
continuous metering.
(E) The common carrier pipeline into which the biogas is placed
ultimately serves the producer's renewable fuel facility.
(iii) The process heat produced from combustion of gas at a
renewable fuel facility described in paragraph (f)(12)(i) of this
section shall not be considered derived from biomass if any other party
relied upon the contracted volume of biogas for the creation of RINs.
0
10. Section 80.1427 is amended by revising paragraphs (a)(4)(i) and
(a)(7)(i) to read as follows:
Sec. 80.1427 How are RINs used to demonstrate compliance?
(a) * * *
(4) * * *
(i) A RIN generated pursuant to Sec. 80.1126 with a D code of 2
and an RR code of 15, 16, or 17 is deemed equivalent to a RIN generated
pursuant to Sec. 80.1426 having a D code of 4.
* * * * *
(7) * * *
(i) Prior to determining compliance with the 2010 biomass-based
diesel RVO, obligated parties may reduce the value of
RVOBBD,2010 by an amount equal to the sum of all 2008 and
2009 RINs that they used for compliance purposes for calendar year 2009
which have a D code of 2 and an RR code of 15, 16, or 17.
* * * * *
0
11. Section 80.1428 is amended by revising paragraph (c) to read as
follows:
Sec. 80.1428 General requirements for RIN distribution.
* * * * *
(c) RIN expiration. Except as provided in Sec. 80.1427(a)(7), a
RIN is valid for compliance during the calendar year in which it was
generated, or the following calendar year. Any RIN that is not used for
compliance purposes for the calendar year in which it was generated, or
for the following calendar year, will be considered an expired RIN.
Pursuant to Sec. 80.1431(a), an expired RIN will be considered an
invalid RIN and cannot be used for compliance purposes.
* * * * *
0
12. Section 80.1429 is amended by revising paragraphs (d) and (g) to
read as follows:
Sec. 80.1429 Requirements for separating RINs from volumes of
renewable fuel.
* * * * *
(d) Upon and after separation of a RIN from its associated volume
of renewable fuel, the separated RIN must be accompanied by a PTD
pursuant to Sec. 80.1453 when transferred to another party.
* * * * *
(g) Any 2009 or 2010 RINs retired pursuant to Sec. 80.1129 because
renewable fuel was used in a nonroad vehicle or nonroad engine (except
for ocean-going vessels), or as heating oil or jet fuel may be
reinstated by the retiring party for sale or use to demonstrate
compliance with a 2010 RVO.
0
13. Section 80.1430 is amended by revising paragraphs (a), (b)(2), and
(b)(3) to read as follows:
Sec. 80.1430 Requirements for exporters of renewable fuels.
(a) Any party that owns any amount of renewable fuel, whether in
its neat form or blended with gasoline or diesel, that is exported from
any of the regions described in Sec. 80.1426(b) shall acquire
sufficient RINs to comply with all applicable Renewable Volume
Obligations under paragraphs (b) through (e) of this section
representing the exported renewable fuel.
(b) * * *
(2) Biomass-based diesel.
RVOBBD,i = [Sigma](VOLk *
EVk)i + DBBD,i-1
Where:
RVOBBD,i = The Renewable Volume Obligation for biomass-
based diesel for the exporter for calendar year i, in gallons.
k = A discrete volume of exported renewable fuel.
VOLk = The standardized volume of discrete volume k of
exported renewable fuel that is biodiesel or renewable diesel, in
gallons, calculated in accordance with Sec. 80.1426(f)(8).
EVk = The equivalence value associated with discrete
volume k.
[Sigma] = Sum involving all volumes of biodiesel or renewable diesel
exported.
DBBD,i-1 = Deficit carryover from the previous year for
biomass-based diesel, in gallons.
(3) Advanced biofuel.
RVOAB,i = [Sigma](VOLk *
EVk)i + DAB,i-1
Where:
RVOAB,i = The Renewable Volume Obligation for advanced
biofuel for the exporter for calendar year i, in gallons.
k = A discrete volume of exported renewable fuel.
VOLk = The standardized volume of discrete volume k of
exported renewable fuel that is biodiesel or renewable diesel, or
that the exporter knows or has reason to know is cellulosic biofuel
or advanced biofuel, in gallons, calculated in accordance with Sec.
80.1426(f)(8).
EVk = The equivalence value associated with discrete
volume k.
[Sigma] = Sum involving all volumes of advanced biofuel exported.
DAB,i-1 = Deficit carryover from the previous year for
advanced biofuel, in gallons.
* * * * *
0
14. Section 80.1440 is amended by revising paragraphs (c)(3), (d), and
(e) to read as follows:
Sec. 80.1440 What are the provisions for blenders who handle and
blend less than 125,000 gallons of renewable fuel per year?
* * * * *
(c) * * *
(3) A renewable fuel blender who delegates its RIN-related
responsibilities under this section will remain liable for any
violation of this subpart M associated with its renewable fuel blending
activities.
(d) Renewable fuel blenders who handle and blend less than 125,000
gallons of renewable fuel per year and delegate their RIN-related
responsibilities under paragraph (b) of this section must register
pursuant to Sec. 80.1450(e), and may not own RINs.
(e) Renewable fuel blenders who handle and blend less than 125,000
gallons of renewable fuel per year and who do not opt to delegate their
RIN-related responsibilities, or own RINs, will be subject to all
requirements stated in paragraph (b) of this section, and all other
applicable requirements of this subpart M.
0
15. Section 80.1442 is amended as follows:
0
a. By revising paragraph (b)(1).
0
b. By removing and reserving paragraph (b)(4).
0
c. By revising paragraph (c).
0
d. By revising paragraph (d)(1).
Sec. 80.1442 What are the provisions for small refiners under the RFS
program?
* * * * *
(b)(1) The small refiner exemption in paragraph (c) of this section
is effective immediately, except as provided in paragraph (b)(5) of
this section, provided that all requirements of this section are
satisfied.
* * * * *
(4) [Reserved]
* * * * *
[[Page 26043]]
(c) Small refiner temporary exemption.
(1) Transportation fuel produced by an small refiner pursuant to
paragraph (b)(1) of this section, or an approved foreign small refiner
(as defined at Sec. 80.1465(a)), is exempt from January 1, 2010
through December 31, 2010 from the renewable fuel standards of Sec.
80.1405 and the requirements that apply to obligated parties under this
subpart if the refiner or foreign refiner meets all the criteria of
paragraph (a)(1) of this section.
(2) The small refiner exemption shall apply to a small refiner
pursuant to paragraph (b)(1) of this section or an approved foreign
small refiner unless that refiner chooses to waive this exemption (as
described in paragraph (d) of this section).
(d)(1) A refiner may, at any time, waive the small refiner
exemption under paragraph (c) of this section upon notification to EPA.
* * * * *
0
16. Section 80.1450 is amended by revising paragraphs (b), (c), (d)(2),
(e), and (f) to read as follows:
Sec. 80.1450 What are the registration requirements under the RFS
program?
* * * * *
(b) Producers. Any RIN-generating foreign or domestic producer of
renewable fuel, any foreign renewable fuel producer that sells
renewable fuel for RIN generation by a United States importer, or any
foreign ethanol producer that produces ethanol used in renewable fuel
for which RINs are generated by a United States importer, must provide
EPA the information specified under Sec. 80.76 if such information has
not already been provided under the provisions of this part, and must
receive EPA-issued company and facility identification numbers prior to
the generation of any RINs for their fuel or for fuel made with their
ethanol. Unless otherwise specifically indicated, all the following
registration information must be submitted and accepted by EPA by July
1, 2010, or 60 days prior to the generation of RINs, whichever date
comes later, subject to this subpart:
(1) A description of the types of renewable fuels or ethanol that
the producer intends to produce at the facility and that the facility
is capable of producing without significant modifications to the
existing facility. For each type of renewable fuel or ethanol, the
renewable fuel producer or foreign ethanol producer shall also provide
all the following:
(i) A list of all the feedstocks the facility is capable of
utilizing without significant modification to the existing facility.
(ii) A description of the facility's renewable fuel or ethanol
production processes.
(iii) The type of co-products produced with each type of renewable
fuel or ethanol.
(iv) A process heat fuel supply plan that includes all of the
following:
(A) For all process heat fuel, provide all the following
information:
(1) Each type of process heat fuel used at the facility.
(2) Name and address of the company supplying each process heat
fuel to the renewable fuel or foreign ethanol facility.
(B) For biogas used for process heat, provide all the following
information:
(1) Locations from which the biogas was produced or extracted.
(2) Name of suppliers of all biogas the producer purchases for use
for process heat in the facility.
(3) An affidavit from the biogas supplier stating its intent to
supply biogas to the renewable fuel producer or foreign ethanol
producer, and the quantity and energy content of the biogas that it
intends to provide to the renewable fuel producer or foreign ethanol
producer.
(v) The following records that support the facility's baseline
volume as defined in Sec. 80.1401 or, for foreign ethanol facilities,
their production volume:
(A) For all facilities except those described in paragraph
(b)(1)(v)(B) of this section, copies of the most recent applicable air
permits issued by the U.S. Environmental Protection Agency, state,
local air pollution control agencies, or foreign governmental agencies
and that govern the construction and/or operation of the renewable fuel
or foreign ethanol facility.
(B) For facilities claiming the exemption described in Sec.
80.1403(c) or (d), applicable air permits issued by the U.S.
Environmental Protection Agency, state, local air pollution control
agencies, or foreign governmental agencies that govern the construction
and/or operation of the renewable fuel facility that were:
(1) Issued or revised no later than December 19, 2007, for
facilities described in Sec. 80.1403(c); or
(2) Issued or revised no later than December 31, 2009, for
facilities described in Sec. 80.1403(d).
(C) For all facilities, copies of documents demonstrating each
facility's actual peak capacity as defined in Sec. 80.1401 if the
maximum rated annual volume output of renewable fuel is not specified
in the air permits specified in paragraphs (b)(1)(v)(A) and
(b)(1)(v)(B) of this section, as appropriate.
(D) Such other records as may be requested by the Administrator.
(vi) For facilities claiming the exemption described in Sec.
80.1403(c) or (d), evidence demonstrating the date that construction
commenced (as defined in Sec. 80.1403(a)(1)) including all of the
following:
(A) Contracts with construction and other companies.
(B) Applicable air permits issued by the U.S. Environmental
Protection Agency, state, local air pollution control agencies, or
foreign governmental agencies that governed the construction and/or
operation of the renewable fuel facility during construction and when
first operated.
(vii)(A) For a producer of renewable fuel or a foreign producer of
ethanol made from separated yard waste per Sec. 80.1426(f)(5)(i)(A):
(1) The location of any municipal waste facility or other facility
from which the waste stream consisting solely of separated yard waste
is collected; and
(2) A plan documenting how the waste will be collected and how the
renewable fuel producer or foreign ethanol producer will conduct
ongoing verification that such waste consists only of yard waste (and
incidental other components such as paper and plastics) that is kept
separate since generation from other waste materials.
(B) For a producer of renewable fuel or a foreign producer of
ethanol made from separated food waste per Sec. 80.1426(f)(5)(i)(B):
(1) The location of any municipal waste facility or other facility
from which the waste stream consisting solely of separated food waste
is collected; and
(2) A plan documenting how the waste will be collected, how the
cellulosic and non-cellulosic portions of the waste will be quantified,
and for ongoing verification that such waste consists only of food
waste (and incidental other components such as paper and plastics) that
is kept separate since generation from other waste materials.
(viii) For a producer of renewable fuel, or a foreign producer of
ethanol, made from separated municipal solid waste per Sec.
80.1426(f)(5)(i)(C):
(A) The location of the municipal waste facility from which the
separated municipal solid waste is collected or from which material is
collected that will be processed to produce separated municipal solid
waste.
(B) A plan providing ongoing verification that there is separation
of recyclable paper, cardboard, plastics, rubber, textiles, metals, and
glass wastes
[[Page 26044]]
to the extent reasonably practicable and which documents the following:
(1) Extent and nature of recycling that occurred prior to receipt
of the waste material by the renewable fuel producer or foreign ethanol
producer;
(2) Identification of available recycling technology and practices
that are appropriate for removing recycling materials from the waste
stream by the fuel producer or foreign ethanol producer; and
(3) Identification of the technology or practices selected for
implementation by the fuel producer or foreign ethanol producer
including an explanation for such selection, and reasons why other
technologies or practices were not.
(C) Contracts relevant to materials recycled from municipal waste
streams as described in Sec. 80.1426(f)(5)(iii).
(D) Certification by the producer that recycling is conducted in a
manner consistent with goals and requirements of applicable State and
local laws relating to recycling and waste management.
(2) An independent third-party engineering review and written
report and verification of the information provided pursuant to
paragraph (b)(1) of this section. The report and verification shall be
based upon a site visit and review of relevant documents and shall
separately identify each item required by paragraph (b)(1) of this
section, describe how the independent third-party evaluated the
accuracy of the information provided, state whether the independent
third-party agrees with the information provided, and identify any
exceptions between the independent third-party's findings and the
information provided.
(i) The verifications required under this section must be conducted
by a professional engineer, as specified in paragraphs (b)(2)(i)(A) and
(b)(2)(i)(B) of this section, who is an independent third-party. The
verifying engineer must be:
(A) For a domestic renewable fuel production facility or a foreign
ethanol production facility, a professional engineer who is licensed by
an appropriate state agency in the United States, with professional
work experience in the chemical engineering field or related to
renewable fuel production.
(B) For a foreign renewable fuel production facility, an engineer
who is a foreign equivalent to a professional engineer licensed in the
United States with professional work experience in the chemical
engineering field or related to renewable fuel production.
(ii) To be considered an independent third-party under this
paragraph (b)(2):
(A) The third-party shall not be operated by the renewable fuel
producer or foreign ethanol producer, or any subsidiary or employee of
the renewable fuel producer or foreign ethanol producer.
(B) The third-party shall be free from any interest in the
renewable fuel producer or foreign ethanol producer's business.
(C) The renewable fuel producer or foreign ethanol producer shall
be free from any interest in the third-party's business.
(D) Use of a third-party that is debarred, suspended, or proposed
for debarment pursuant to the Government-wide Debarment and Suspension
regulations, 40 CFR part 32, or the Debarment, Suspension and
Ineligibility provisions of the Federal Acquisition Regulations, 48
CFR, part 9, subpart 9.4, shall be deemed noncompliance with the
requirements of this section.
(iii) The independent third-party shall retain all records
pertaining to the verification required under this section for a period
of five years from the date of creation and shall deliver such records
to the Administrator upon request.
(iv) The renewable fuel producer or foreign ethanol producer must
retain records of the review and verification, as required in Sec.
80.1454(b)(6).
(v) The third-party must provide to EPA documentation of his or her
qualifications as part of the engineering review, including proof of
appropriate professional license or foreign equivalent.
(vi) Owners and operators of facilities described in Sec.
80.1403(c) and (d) must submit the engineering review no later than
December 31, 2010.
(c) Importers. Importers of renewable fuel must provide EPA the
information specified under Sec. 80.76, if such information has not
already been provided under the provisions of this part and must
receive an EPA-issued company identification number prior to generating
or owning RINs. Registration information must be submitted and accepted
by EPA by July 1, 2010, or 60 days prior to an importer importing any
renewable fuel with assigned RINs or generating any RINs for renewable
fuel, whichever dates comes later.
(d) * * *
(2) Any producer of renewable fuel who makes any other changes to a
facility that will affect the producer's registration information but
will not affect the renewable fuel category for which the producer is
registered per paragraph (b) of this section must update his
registration information 7 days prior to the change.
(e) Any party who owns RINs, intends to own RINs, or intends to
allow another party to separate RINs as per Sec. 80.1440, but who is
not covered by paragraph (a), (b), or (c) of this section, must provide
EPA the information specified under Sec. 80.76, if such information
has not already been provided under the provisions of this part and
must receive an EPA-issued company identification number prior to
owning any RINs. Registration information must be submitted at least 30
days prior to RIN ownership.
(f) Registration for any facility claiming an exemption under Sec.
80.1403(c) or (d), must be submitted by July 1, 2013. EPA may in its
sole discretion waive this requirement if it determines that the
information submitted in any later registration can be verified by EPA
in the same manner as would have been possible with a timely
submission.
* * * * *
0
17. Section 80.1451 is amended as follows:
0
a. By revising paragraph (a)(1)(xi).
0
b. By revising paragraphs (b)(1)(ii)(H), (b)(1)(ii)(K), (b)(1)(ii)(N),
(b)(1)(ii)(P), (b)(1)(ii)(Q), and (b)(1)(ii)(R).
0
c. By revising paragraphs (c)(1)(iii)(D) and (c)(2)(xv).
0
d. By revising paragraphs (d) introductory text and (d)(1).
0
e. By revising paragraph (e).
Sec. 80.1451 What are the reporting requirements under the RFS
program?
(a) * * *
(1) * * *
(xi) A list of all RINs retired for compliance in the reporting
period.
* * * * *
(b) * * *
(1) * * *
(ii) * * *
(H) The fuel type of each batch.
* * * * *
(K) The types and quantities of feedstocks used.
* * * * *
(M) The type of co-products produced with each batch.
(N) The quantity of co-products produced in each quarter.
* * * * *
(P) Producers of renewable electricity and producers or importers
of biogas used for transportation as described in Sec. 80.1426(f)(10)
and (11), shall report all of the following:
(1) The total energy produced and supplied for use as a
transportation fuel, in units of energy (for example, MMBtu or MW)
based on metering of gas volume or electricity.
[[Page 26045]]
(2) The name and location of where the fuel is sold for use as a
transportation fuel.
(Q) Producers or importers of renewable fuel produced at facilities
that use biogas for process heat as described in Sec. 80.1426(f)(12),
shall report the total energy supplied to the renewable fuel facility,
in MMBtu based on metering of gas volume.
(R) Producers or importers of renewable fuel made from separated
municipal solid waste as described in Sec. 80.1426(f)(5)(i)(C), shall
report the amount of paper, cardboard, plastics, rubber, textiles,
metals, and glass separated from municipal solid waste for recycling.
Reporting shall be in units of weight (in tons).
* * * * *
(c) * * *
(1) * * *
(iii) * * *
(D) Transaction type (i.e., RIN buy, RIN sell, RIN separation, RIN
retire, reinstated 2009 or 2010 RINs).
* * * * *
(2) * * *
(xv) The total 2009 and 2010 retired RINs reinstated.
* * * * *
(d) Except for those producers using feedstocks subject to the
aggregate compliance approach described in Sec. 80.1454(g), producers
and RIN-generating importers of renewable fuel made from feedstocks
that are planted crops and crop residue from existing foreign
agricultural land, planted trees or tree residue from actively managed
tree plantations, slash and pre-commercial thinnings from forestlands
or biomass obtained from areas at risk of wildfire must submit
quarterly reports according to the schedule in paragraph (f)(2) of this
section that include all of the following:
(1) A summary of the types and quantities of feedstocks used in
that quarter.
* * * * *
(e) If EPA finds that the 2007 baseline amount of agricultural land
has been exceeded in any year beginning in 2010, beginning on the first
day of July of the following calendar year any producers or importers
of renewable fuel as defined in Sec. 80.1401 who use planted crops
and/or crop residue from existing U.S. agricultural lands as feedstock
must submit quarterly reports according to the schedule in paragraph
(f)(2) of this section that include all of the following:
(1) A summary of the types and quantities of feedstocks used in
that quarter.
(2) Electronic data identifying the land by coordinates of the
points defining the boundaries from which each type of feedstock listed
per paragraph (d)(1) of this section was harvested.
(3) If electronic data identifying a plot of land have been
submitted previously, producers and RIN-generating importers may submit
a cross-reference to that electronic data.
* * * * *
0
18. Section 80.1452 is amended as follows:
0
a. By revising paragraphs (b) introductory text, (b)(2), (b)(4),
(b)(6), (b)(9), (b)(13), and (b)(15).
0
b. By revising paragraphs (c) introductory text, (c)(4), (c)(5), and
(c)(7).
Sec. 80.1452 What are the requirements related to the EPA Moderated
Transaction System (EMTS)?
* * * * *
(b) Starting July 1, 2010, each time a domestic or foreign producer
or importer of renewable fuel assigns RINs to a batch of renewable fuel
pursuant to Sec. 80.1426(e), all the following information must be
submitted to EPA via the submitting party's EMTS account within five
(5) business days of the date of RIN assignment.
* * * * *
(2) The EPA company registration number of the producer of
renewable fuel.
* * * * *
(4) The EPA facility registration number of the producer of the
renewable fuel.
* * * * *
(6) The D code of RINs generated for the batch.
* * * * *
(9) The fuel type of the batch.
* * * * *
(13) The type and quantity of feedstock(s) used for the batch.
* * * * *
(15) The type and quantity of co-products produced with the batch
of renewable fuel.
* * * * *
(c) Starting July 1, 2010, each time any party engages in a
transaction involving RINs generated on or after July 1, 2010, all the
following information must be submitted to EPA via the submitting
party's EMTS account within five (5) business days of the reportable
event. The reportable event for a RIN purchase or sale occurs on the
date of transfer per Sec. 80.1453(a)(4). The reportable event for a
RIN separation or retirement occurs on the date of separation or
retirement as described in Sec. 80.1429.
* * * * *
(4) The RIN status (Assigned or Separated).
(5) The D code of the RINs.
* * * * *
(7) The date of transfer per Sec. 80.1453(a)(4), if applicable.
* * * * *
0
19. Section 80.1453 is amended as follows:
0
a. By removing and reserving paragraph (a)(5).
0
b. By revising paragraphs (a)(7), (a)(8), (a)(10), and (a)(11).
Sec. 80.1453 What are the product transfer document (PTD)
requirements for the RFS program?
(a) * * *
(5) [Reserved]
* * * * *
(7) The D code of the RINs.
(8) The RIN status (Assigned or Separated).
* * * * *
(10) The associated reason for the sell or buy transaction (e.g.,
standard trade or remedial action).
(11) Additional RIN-related information, as follows:
(i) If assigned RINs are being transferred on the same PTD used to
transfer ownership of the renewable fuel, then the assigned RIN
information shall be identified on the PTD.
(A) The identifying information for a RIN that is transferred in
EMTS generically is the information specified in paragraphs (a)(1)
through (a)(10) of this section.
(B) The identifying information for a RIN that is transferred in
EMTS uniquely is the information specified in paragraphs (a)(1) through
(a)(10) of this section, the RIN generator company ID, the RIN
generator facility ID, and the batch number.
(C) The identifying information for a RIN that is generated prior
to July 1, 2010, is the 38-digit code pursuant to Sec. 80.1425, in its
entirety.
(ii) If assigned RINs are being transferred on a separate PTD from
that which is used to transfer ownership of the renewable fuel, then
the PTD which is used to transfer ownership of the renewable fuel shall
include all the following:
(A) The number of gallon-RINs being transferred.
(B) A unique reference to the PTD which is transferring the
assigned RINs.
(C) The information specified in paragraphs (a)(11)(i)(A) through
(a)(11)(i)(C) of this section, as appropriate.
(iii) If no assigned RINs are being transferred with the renewable
fuel, the PTD which is used to transfer
[[Page 26046]]
ownership of the renewable fuel shall state ``No assigned RINs
transferred.''.
(iv) If RINs have been separated from the renewable fuel or fuel
blend pursuant to Sec. 80.1429(b)(4), then all PTDs which are at any
time used to transfer ownership of the renewable fuel or fuel blend
shall state ``This volume of fuel must be used in the designated form,
without further blending.''.
* * * * *
0
20. Section 80.1454 is amended as follows:
0
a. By revising paragraphs (a)(2) and (a)(3)(iv), and adding a new
paragraph (a)(6).
0
b. By revising paragraphs (c)(1)(i) introductory text, (c)(1)(i)(A),
(c)(1)(ii)(A), and (c)(2)(ii).
0
c. By revising paragraph (d) introductory text.
0
d. By redesignating paragraph (d)(3) as paragraph (d)(4), adding a new
paragraph (d)(3), and revising newly designated paragraph (d)(4).
0
e. By revising paragraph (g).
0
f. By revising paragraphs (h) introductory text and (h)(6)(v).
0
g. By revising paragraph (j) introductory text.
0
h. By redesignating paragraph (j)(2)(iii) as paragraph (j)(2)(iv), and
adding a new paragraph (j)(2)(iii).
0
i. By revising paragraphs (k)(1) through (k)(5).
Sec. 80.1454 What are the recordkeeping requirements under the RFS
program?
(a) * * *
(2) Copies of all reports submitted to EPA under Sec. 80.1451(a),
as applicable.
(3) * * *
(iv) Additional information, including contracts, correspondence,
and invoices, related to details of the RIN transaction and its terms.
* * * * *
(6) For exported renewable fuel, invoices, bills of lading and
other documents describing the exported renewable fuel.
* * * * *
(c) * * *
(1) * * *
(i) RIN-generating foreign producers and importers of renewable
fuel made from feedstocks that are planted crops or crop residue from
existing foreign agricultural land, planted trees or tree residue from
actively managed tree plantations, slash and pre-commercial thinnings
from forestlands or biomass obtained from wildland-urban interface must
maintain all the following records to verify the location where these
feedstocks were produced:
(A) Maps or electronic data identifying the boundaries of the land
where each type of feedstock was produced.
* * * * *
(ii)(A) RIN-generating foreign producers and importers of renewable
fuel made from planted crops or crop residue from existing foreign
agricultural land must keep records that serve as evidence that the
land from which the feedstock was obtained was cleared or cultivated
prior to December 19, 2007 and actively managed or fallow, and
nonforested on December 19, 2007. RIN-generating foreign producers or
importers of renewable fuel made from planted trees or tree residue
from actively managed tree plantations must keep records that serve as
evidence that the land from which the feedstock was obtained was
cleared prior to December 19, 2007 and actively managed on December 19,
2007.
* * * * *
(2) * * *
(ii) Copies of all reports submitted to EPA under Sec. Sec.
80.1449 and 80.1451(b).
* * * * *
(d) Additional requirements for domestic producers of renewable
fuel. Except as provided in paragraphs (g) and (h) of this section,
beginning July 1, 2010, any domestic producer of renewable fuel as
defined in Sec. 80.1401 that generates RINs for such fuel must keep
documents associated with feedstock purchases and transfers that
identify where the feedstocks were produced and are sufficient to
verify that feedstocks used are renewable biomass (as defined in Sec.
80.1401) if RINs are generated.
* * * * *
(3) Domestic producers of renewable fuel made from planted crops or
crop residue from existing foreign agricultural land must keep all the
following records:
(i) Records that serve as evidence that the land from which the
feedstock was obtained was cleared or cultivated prior to December 19,
2007 and actively managed or fallow, and nonforested on December 19,
2007. The records must be provided by the feedstock producer and must
include at least one of the following documents, which must be
traceable to the land in question:
(A) Sales records for planted crops, crop residue, or livestock.
(B) Purchasing records for fertilizer, weed control, seeds,
seedlings, or other nursery stock.
(C) A written management plan for agricultural purposes.
(D) Documentation of participation in an agricultural program
sponsored by a Federal, State, or local government agency.
(E) Documentation of land management in accordance with an
agricultural product certification program.
(ii) Records to verify the location where the feedstocks were
produced:
(A) Maps or electronic data identifying the boundaries of the land
where each type of feedstock was produced; and
(B) Bills of lading, product transfer documents or other commercial
documents showing the quantity of feedstock purchased from each area
identified in paragraph (d)(3)(ii)(A) of this section, and showing each
transfer of custody of the feedstock from the location where it was
produced to the renewable fuel facility.
(4) Domestic producers of renewable fuel made from any other type
of renewable biomass must have documents from their feedstock supplier
certifying that the feedstock qualifies as renewable biomass as defined
in Sec. 80.1401, describing the feedstock. Separated yard and food
waste and separated municipal solid waste are subject to the
requirements in paragraph (j) of this section.
* * * * *
(g) Aggregate compliance with renewable biomass requirement. Any
producer or RIN-generating importer of renewable fuel made from planted
crops or crop residue from existing U.S. agricultural land as defined
in Sec. 80.1401 is subject to the aggregate compliance approach and is
not required to maintain feedstock records unless EPA publishes a
finding that the 2007 baseline amount of agricultural land has been
exceeded.
(1) EPA will make a finding concerning whether the 2007 baseline
amount of U.S. agricultural land has been exceeded and will publish
this finding in the Federal Register by November 30 of the year
preceding the compliance period.
(2) If EPA finds that the 2007 baseline amount of U.S. agricultural
land has been exceeded, beginning on the first day of July of the
compliance period in question any producer or RIN-generating importer
of renewable fuel made from planted crops and/or crop residue from U.S.
agricultural lands as feedstock for renewable fuel for which RINs are
generated must keep all the following records:
(i) Records that serve as evidence that the land from which the
feedstock was obtained was cleared or cultivated prior to December 19,
2007 and actively managed or fallow, and nonforested on December 19,
2007. The records must be provided by the feedstock producer and
[[Page 26047]]
must include at least one of the following documents, which must be
traceable to the land in question:
(A) Sales records for planted crops, crop residue or livestock.
(B) Purchasing records for fertilizer, weed control, seeds,
seedlings, or other nursery stock.
(C) A written management plan for agricultural purposes.
(D) Documentation of participation in an agricultural program
sponsored by a Federal, state, or local government agency.
(E) Documentation of land management in accordance with an
agricultural product certification program.
(ii) Records to verify the location where the feedstocks were
produced:
(A) Maps or electronic data identifying the boundaries of the land
where each type of feedstock was produced; and
(B) Bills of lading, product transfer documents or other commercial
documents showing the quantity of feedstock purchased from each area
identified in paragraph (g)(2)(ii)(A) of this section, and showing each
transfer of custody of the feedstock from the location where it was
produced to the renewable fuel facility.
(h) Alternative renewable biomass tracking requirement. Any foreign
or domestic renewable fuel producer or RIN-generating importer may
comply with the following alternative renewable biomass tracking
requirement instead of the recordkeeping requirements in paragraphs
(c)(1), (d), and (g) of this section:
* * * * *
(6) * * *
(v) EPA may revoke any approval of a survey plan under this section
for cause, including an EPA determination that the approved survey plan
had proved inadequate in practice or that it was not fully implemented.
* * * * *
(j) A renewable fuel producer that produces fuel from separated
yard and food waste as described in Sec. 80.1426(f)(5)(i)(A) and (B)
and separated municipal solid waste as described in Sec.
80.1426(f)(5)(i)(C) shall keep all the following additional records:
* * * * *
(2) * * *
(iii) Documents demonstrating the fuel sampling methods used
pursuant to Sec. 80.1426(f)(9) and the results of all fuel analyses to
determine the non-fossil fraction of fuel made from separated municipal
solid waste.
(k) * * *
(1) Contracts and documents memorializing the sale of biogas or
renewable electricity for use as transportation fuel relied upon in
Sec. 80.1426(f)(10), Sec. 80.1426(f)(11), or for use of biogas for
use as process heat to make renewable fuel as relied upon in Sec.
80.1426(f)(12), and the transfer of title of the biogas or renewable
electricity and all associated environmental attributes from the point
of generation to the facility which sells or uses the fuel for
transportation purposes.
(2) Documents demonstrating the volume and energy content of
biogas, or kilowatts of renewable electricity, relied upon under Sec.
80.1426(f)(10) that was delivered to the facility which sells or uses
the fuel for transportation purposes.
(3) Documents demonstrating the volume and energy content of
biogas, or kilowatts of renewable electricity, relied upon under Sec.
80.1426(f)(11), or biogas relied upon under Sec. 80.1426(f)(12), that
was placed into the common carrier pipeline (for biogas) or
transmission line (for renewable electricity).
(4) Documents demonstrating the volume and energy content of
biogas, or kilowatts of renewable electricity, relied upon under Sec.
80.1426(f)(12) at the point of distribution.
(5) Affidavits from the biogas or renewable electricity producer
and all parties that held title to the biogas or renewable electricity
confirming that title and environmental attributes of the biogas or
renewable electricity relied upon under Sec. 80.1426(f)(10) and (11)
were used for transportation purposes only, and that the environmental
attributes of the biogas relied upon under Sec. 80.1426(f)(12) were
used for process heat at the renewable fuel producer's facility, and
for no other purpose. The renewable fuel producer shall create and/or
obtain these affidavits at least once per calendar quarter.
* * * * *
0
21. Section 80.1455 is amended by revising paragraphs (a) introductory
text, (b)(1), (c) introductory text, and (d)(1) to read as follows:
Sec. 80.1455 What are the small volume provisions for renewable fuel
production facilities and importers?
(a) Standard volume threshold. Renewable fuel production facilities
located within the United States that produce less than 10,000 gallons
of renewable fuel each year, and importers who import less than 10,000
gallons of renewable fuel each year, are not subject to the
requirements of Sec. 80.1426(a) and (e) related to the generation and
assignment of RINs to batches of renewable fuel. Except as stated in
paragraph (b) of this section, such production facilities and importers
that do not generate and assign RINs to batches of renewable fuel are
also exempt from all the following requirements of this subpart:
* * * * *
(b)(1) Renewable fuel production facilities and importers who
produce or import less than 10,000 gallons of renewable fuel each year
and that generate and assign RINs to batches of renewable fuel are
subject to the provisions of Sec. Sec. 80.1426, 80.1449 through
80.1452, 80.1454, and 80.1464.
* * * * *
(c) Temporary volume threshold. Renewable fuel production
facilities located within the United States that produce less than
125,000 gallons of renewable fuel each year are not subject to the
requirements of Sec. 80.1426(a) and (e) related to the generation and
assignment of RINs to batches of renewable fuel for up to three years,
beginning with the calendar year in which the production facility
produces its first gallon of renewable fuel. Except as stated in
paragraph (d) of this section, such production facilities that do not
generate and assign RINs to batches of renewable fuel are also exempt
from all the following requirements of this subpart for a maximum of
three years:
* * * * *
(d)(1) Renewable fuel production facilities who produce less than
125,000 gallons of renewable fuel each year and that generate and
assign RINs to batches of renewable fuel are subject to the provisions
of Sec. Sec. 80.1426, 80.1449 through 80.1452, 80.1454, and 80.1464.
* * * * *
0
22. Section 80.1460 is amended by revising paragraph (c)(2) to read as
follows:
Sec. 80.1460 What acts are prohibited under the RFS program?
* * * * *
(c) * * *
(2) Use a validly generated RIN to meet the person's RVOs under
Sec. 80.1427, or separate and transfer a validly generated RIN, where
the person using the RIN ultimately uses the renewable fuel volume
associated with the RIN in an application other than for use as
transportation fuel, jet fuel, or heating oil (as defined in Sec.
80.1401).
* * * * *
0
23. Section 80.1463 is amended by revising paragraphs (a) and (b) to
read as follows:
[[Page 26048]]
Sec. 80.1463 What penalties apply under the RFS program?
(a) Any person who is liable for a violation under Sec. 80.1461 is
subject to a civil penalty as specified in sections 205 and 211(d) of
the Clean Air Act, for every day of each such violation and the amount
of economic benefit or savings resulting from each violation.
(b) Any person liable under Sec. 80.1461(a) for a violation of
Sec. 80.1460(c) for failure to meet its RVOs, or Sec. 80.1460(e) for
causing another person to fail to meet their RVOs during any compliance
period, is subject to a separate day of violation for each day in the
compliance period.
* * * * *
0
24. Section 80.1464 is amended as follows:
0
a. By revising paragraphs (a)(1)(i)(A) and (a)(1)(iv)(A), adding
paragraph (a)(1)(iv)(D), and removing paragraph (a)(1)(vii).
0
b. By revising paragraphs (b)(1)(i) and (b)(1)(ii).
0
c. By revising paragraph (c)(2)(ii).
Sec. 80.1464 What are the attest engagement requirements under the
RFS program?
* * * * *
(a) * * *
(1) * * *
(i) * * *
(A) The obligated party's volume of all products listed in Sec.
80.1407(c) and (e), or the exporter's volume of each category of
exported renewable fuel identified in Sec. 80.1430(b)(1) through
(b)(4).
* * * * *
(iv) For exporters, perform all of the following:
(A) Obtain the database, spreadsheet, or other documentation that
the exporter maintains for all exported renewable fuel.
* * * * *
(D) Select sample batches in accordance with the guidelines in
Sec. 80.127 from each separate category of renewable fuel exported and
identified in Sec. 80.1451(a); obtain invoices, bills of lading and
other documentation for the representative samples; state whether any
of these documents refer to the exported fuel as advanced biofuel or
cellulosic biofuel; and report as a finding whether or not the exporter
calculated an advanced biofuel or cellulosic biofuel RVO for these
fuels pursuant to Sec. 80.1430(b)(1) or Sec. 80.1430(b)(3).
* * * * *
(b) * * *
(1) * * *
(i) Obtain and read copies of the reports required under Sec.
80.1451(b)(1), (d), and (e) for the compliance year.
(ii) Obtain production data for each renewable fuel batch by type
of renewable fuel that was produced or imported during the year being
reviewed; compute the number of gallon-RINs production dates, types,
volumes of denaturant and applicable equivalence values, and production
volumes for each batch; report the total RINs generated during the year
being reviewed; and state whether this information agrees with the
party's reports to EPA. Report as a finding any exceptions.
* * * * *
(c) * * *
(2) * * *
(ii) Obtain the database, spreadsheet, or other documentation used
to generate the information in the RIN activity reports; compare the
RIN transaction samples reviewed under paragraph (c)(1) of this section
with the corresponding entries in the database or spreadsheet and
report as a finding any discrepancies; compute the total number of
current-year and prior-year RINs owned at the start and end of each
quarter, purchased, sold, retired, separated, and reinstated and for
parties that reported RIN activity for RINs assigned to a volume of
renewable fuel, the volume of renewable fuel owned at the end of each
quarter, as represented in these documents; and state whether this
information agrees with the party's reports to EPA.
* * * * *
0
25. Section 80.1465 is amended by revising paragraphs (a)(6) and
(d)(1)(ii) to read as follows:
Sec. 80.1465 What are the additional requirements under this subpart
for foreign small refiners, foreign small refineries, and importers of
RFS-FRFUEL?
(a) * * *
(6) Non-RFS-FRFUEL is transportation fuel produced at a foreign
refinery that has not received a small refinery exemption under Sec.
80.1441 or by a foreign refiner that has not received a small refiner
exemption under Sec. 80.1442.
* * * * *
(d) * * *
(1) * * *
(ii) Determine the volume of RFS-FRFUEL loaded onto the vessel,
temperature-corrected to 60[deg]F (exclusive of any tank bottoms before
loading).
* * * * *
[FR Doc. 2010-10851 Filed 5-7-10; 8:45 am]
BILLING CODE 6560-50-P