[Federal Register Volume 87, Number 79 (Monday, April 25, 2022)]
[Notices]
[Pages 24294-24295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08687]
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ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2021-0566; FRL-9720-01-OAR]
Notice of April 2022 Alternative Compliance Demonstration
Approach for Certain Small Refineries Under the Renewable Fuel Standard
Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice.
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SUMMARY: The Environmental Protection Agency (EPA) is providing notice
of its action to provide an alternative compliance demonstration
approach (the ``Compliance Action'') to certain small refineries whose
2018 petitions for small refinery exemptions (SREs) under the Renewable
Fuel Standard (RFS) program were denied in the April 2022 Denial of
Petitions for RFS Small Refinery Exemptions (``SRE Denial'') after
being remanded. EPA is providing this notice for public awareness of
and the basis for the Compliance Action issued on April 7, 2022.
DATES: April 25, 2022.
FOR FURTHER INFORMATION CONTACT: Karen Nelson, Office of Transportation
and Air Quality, Compliance Division, Environmental Protection Agency,
2000 Traverwood Drive, Ann Arbor, MI 48105; telephone number: 734-214-
4657; email address: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The Clean Air Act (CAA) provides that a small refinery \1\ may at
any time petition EPA for an extension of the exemption from the
obligations of the RFS program for the reason of disproportionate
economic hardship (DEH).\2\ In evaluating such petitions, the EPA
Administrator, in consultation with the Secretary of Energy, will
consider the findings of a Department of Energy (DOE) study and other
economic factors.\3\ In a separate action issued on April 7, 2022, EPA
denied 36 small refinery exemption (SRE) petitions for the 2018
compliance year by finding the petitioning refineries do not face DEH
caused by compliance with their RFS obligations.\4\
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\1\ The CAA defines a small refinery as ``a refinery for which
the average aggregate daily crude oil throughput for a calendar year
. . . does not exceed 75,000 barrels.'' CAA section 211(o)(1)(K).
\2\ CAA section 211(o)(9)(B)(i).
\3\ CAA section 211(o)(9)(B)(ii).
\4\ ``April 2022 Denial of Petitions for RFS Small Refinery
Exemptions,'' EPA-420-R-22-005, April 2022 (hereinafter the ``SRE
Denial'').
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II. Compliance Action
In the Compliance Action,\5\ EPA is providing 31 specific small
refineries with an alternative approach to demonstrating compliance
with their RFS renewable volume obligations created by the SRE Denial.
Each of the specified small refineries had previously been granted an
SRE for the 2018 compliance year; however, each of their petitions
again came before the Agency as the result of court remand. The
Compliance Action is necessary because EPA has determined there are
extenuating circumstances that warrant an alternative compliance
demonstration approach that the specified small refineries may use to
meet their 2018 obligations without retiring any additional RINs.
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\5\ ``April 2022 Alternative RFS Compliance Demonstration
Approach for Certain Small Refineries,'' EPA-420-R-22-006, April
2022.
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III. Judicial Review
Section 307(b)(1) of the CAA governs judicial review of final
actions by the EPA. This section provides, in part, that petitions for
review must be filed in the United States Court of Appeals for the
District of Columbia Circuit: (i) When the agency action consists of
``nationally applicable . . . final actions taken by the
Administrator,'' or (ii) when such action is locally or regionally
applicable, but ``such action is based on a determination of nationwide
scope or effect and if in taking such action the Administrator finds
and publishes that such action is based on such a determination.'' For
locally or regionally applicable final actions, the CAA reserves to the
EPA complete discretion whether to invoke the exception in (ii)
described in the preceding sentence.
This final action is ``nationally applicable'' within the meaning
of CAA section 307(b)(1). In the alternative, to the extent a court
finds this final action to be locally or regionally applicable, the
Administrator is exercising the complete discretion afforded to him
under the CAA to make and publish a finding that this action is based
on a determination of ``nationwide scope or effect'' within the meaning
of CAA section 307(b)(1).\6\ This final action provides an alternative
approach to demonstrating compliance with the 2018 obligations for 31
small refineries across the country and applies to small
[[Page 24295]]
refineries located within 16 states in 7 of the 10 EPA regions and in 7
different Federal judicial circuits.\7\ This final action is based on
the extenuating circumstances applicable to these 31 small refineries
and the impacts their compliance with their newly created 2018
obligations under the existing compliance scheme would have on the RFS
program. For these reasons, this final action is nationally applicable
or, alternatively, the Administrator is exercising the complete
discretion afforded to him by the CAA and hereby finds that this final
action is based on a determination of nationwide scope or effect for
purposes of CAA section 307(b)(1) and is hereby publishing that finding
in the Federal Register.
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\6\ In deciding whether to invoke the exception by making and
publishing a finding that this final action is based on a
determination of nationwide scope or effect, the Administrator has
also taken into account a number of policy considerations, including
his judgment balancing the benefit of obtaining the D.C. Circuit's
authoritative centralized review versus allowing development of the
issue in other contexts and the best use of Agency resources.
\7\ In the report on the 1977 Amendments that revised section
307(b)(1) of the CAA, Congress noted that the Administrator's
determination that the ``nationwide scope or effect'' exception
applies would be appropriate for any action that has a scope or
effect beyond a single judicial circuit. See H.R. Rep. No. 95-294 at
323, 324, reprinted in 1977 U.S.C.C.A.N. 1402-03.
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Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the District of Columbia Circuit by June 24, 2022.
Joseph Goffman,
Principal Deputy Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2022-08687 Filed 4-22-22; 8:45 am]
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