[Federal Register Volume 87, Number 170 (Friday, September 2, 2022)]
[Rules and Regulations]
[Pages 54158-54166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18870]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2022-0434; FRL-9821-02-OAR]
RIN 2060-AV72
Renewable Fuel Standard (RFS) Program: Alternative RIN Retirement
Schedule for Small Refineries
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: EPA is finalizing an optional alternative renewable
identification number (RIN) retirement schedule for small refineries
under the Renewable Fuel Standard (RFS) program for the 2020 compliance
year. Small refineries that elect to use the alternative RIN retirement
schedule will have to fully comply with their 2020 RFS obligations--
including any RIN deficits from 2019 carried forward into the 2020
compliance year--by February 1, 2024. EPA is taking this action because
small refineries may need more time to plan for compliance with their
RFS obligations given EPA's delay in deciding small refinery exemption
(SRE) petitions and setting the associated compliance deadlines.
DATES: This rule is effective on September 2, 2022.
ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-HQ-OAR-2022-0434. All documents in the docket are listed on the
https://www.regulations.gov website. 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 is
not available on the internet and will be publicly available only in
hard copy form. Publicly available docket materials are available
electronically through https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For questions regarding this action,
contact Robert Anderson, Office of Transportation and Air Quality,
Compliance Division, Environmental Protection Agency, 2000 Traverwood
Drive, Ann Arbor, MI 48105; telephone number: (734) 214-4280; email
address: [email protected].
SUPPLEMENTARY INFORMATION:
Dates
Section 553(d) of the Administrative Procedure Act (APA), 5 U.S.C.
chapter 5, generally provides that rules may not take effect until 30
days after they are
[[Page 54159]]
published in the Federal Register. EPA is issuing this final rule under
section 307(d) of the Clean Air Act (CAA or ``the Act''), which states,
``The provisions of section 553 through 557 . . . of Title 5 shall not,
except as expressly provided in this section, apply to actions to which
this subsection applies.'' Thus, section 553(d) of the APA does not
apply to this rule. EPA is nevertheless acting consistently with the
policies underlying APA section 553(d) in making this final rule
effective upon publication. The purpose of this APA provision is to
``give affected parties a reasonable time to adjust their behavior
before the final rule takes effect.'' \1\ However, when an agency
grants or recognizes an exemption or relieves a restriction, affected
parties do not need a reasonable time to adjust because the effect is
not adverse. Thus, APA section 553(d) allows an effective date less
than 30 days after publication for any rule that ``grants or recognizes
an exemption or relieves a restriction.'' \2\ An accelerated effective
date may also be appropriate for good cause pursuant to APA section
553(d)(3) where an agency can ``balance the necessity for immediate
implementation against principles of fundamental fairness which require
that all affected persons be afforded a reasonable amount of time to
prepare for the effective date of its ruling.'' \3\
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\1\ Omnipoint Corp. v. Fed. Commc'n Comm'n, 78 F.3d 620, 630
(D.C. Cir. 1996); see also United States v. Gavrilovic, 551 F.2d
1099, 1104 (8th Cir. 1977) (quoting legislative history).
\2\ See 5 U.S.C. 553(d)(1).
\3\ Gavrilovic, 551 F.2d at 1105.
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EPA has determined that the regulatory amendments to 40 CFR part
80, subpart M, are effective upon publication in the Federal Register
because they relieve a restriction by providing small refineries with
an alternative schedule for retiring RINs toward their 2020 renewable
volume obligations (RVOs), thereby providing small refineries with
additional time to demonstrate compliance. There is additionally good
cause for implementation of these provisions upon publication because
it will ensure that the provisions are effective prior to the 2020 RFS
compliance deadline (December 1, 2022), which is the point at which
small refineries intending to utilize the alternative RIN retirement
schedule provided in this action will need to notify EPA. Any delay in
effectiveness could cause uncertainty regarding its availability.
Does this action apply to me?
Entities potentially affected by this final rule are those involved
with the production, distribution, and sale of transportation fuels,
including gasoline, diesel, and renewable fuels such as ethanol,
biodiesel, renewable diesel, and biogas. Potentially affected
categories include:
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Examples of potentially
Category NAICS \1\ code affected entities
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Industry....................... 324110 Petroleum refineries.
Industry....................... 325193 Ethyl alcohol
manufacturing.
Industry....................... 325199 Other basic organic
chemical
manufacturing.
Industry....................... 424690 Chemical and allied
products merchant
wholesalers.
Industry....................... 424710 Petroleum bulk stations
and terminals.
Industry....................... 424720 Petroleum and petroleum
products merchant
wholesalers.
Industry....................... 221210 Manufactured gas
production and
distribution.
Industry....................... 454319 Other fuel dealers.
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\1\ North American Industry Classification System (NAICS).
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be affected by this
action. This table lists the types of entities that EPA is now aware
could potentially be affected by this action. Other types of entities
not listed in the table could also be affected. To determine whether
your entity would be affected by this action, you should carefully
examine the applicability criteria in 40 CFR part 80. If you have any
questions regarding the applicability of this action to a particular
entity, consult the person listed in the FOR FURTHER INFORMATION
CONTACT section.
Outline of This Preamble
I. Background
II. Small Refineries and RFS Compliance
A. Unique Small Refinery Compliance Challenges
B. Overview of Compliance Approach
III. Alternative RIN Retirement Schedule for Small Refineries for
the 2020 Compliance Year
IV. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act (UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act (NTTAA) and
1 CFR Part 51
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
K. Congressional Review Act (CRA)
V. Statutory Authority
I. Background
The RFS program sets annual, nationally applicable volume targets
for renewable fuel. EPA translates those volume targets into compliance
obligations that obligated parties must meet each year. EPA has
designated refiners and importers of gasoline and diesel fuel used as
transportation fuel to be those obligated parties.\4\ Small refineries,
a subset of refiners, are defined by the Act as ``refiner[ies] for
which the average aggregate daily crude oil throughput for a calendar
year . . . does not exceed 75,000 barrels.'' \5\ At the start of the
RFS program, Congress initially granted all eligible small refineries a
temporary exemption from the obligations of the RFS program until
2011.\6\ Under EPA's regulations, small refineries that were producing
either ``gasoline'' under RFS1 \7\ or ``transportation fuel'' under
RFS2 \8\ were required to notify EPA that they qualified for the
temporary exemption by submitting verification letters stating
[[Page 54160]]
their average crude oil throughput rate during the applicable
qualification period.\9\ The CAA provides that a small refinery 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).\10\ 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.\11\
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\4\ 40 CFR 80.1406(a).
\5\ CAA section 211(o)(1)(K).
\6\ CAA section 211(o)(9)(A)(i).
\7\ 72 FR 23900, 23926 (May 1, 2007).
\8\ 40 CFR 80.1441(a)(1).
\9\ 72 FR 23900, 23925-26 (May 1, 2007); 40 CFR 80.1441(b).
EPA's regulations allowed small refineries that had submitted
verification letters to qualify for the original statutory exemption
under EPAct/RFS1 to not have to submit an additional verification
letter to qualify under the SRE provisions in EISA/RFS2.
\10\ CAA section 211(o)(9)(B)(i).
\11\ CAA section 211(o)(9)(B)(ii).
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On December 7, 2021, EPA proposed to deny 65 pending SRE petitions
for the 2016-2021 compliance years \12\ and took public comment via a
Federal Register notification.\13\ That proposal included proposed
changes to EPA's interpretation of the SRE provisions in the CAA that
were informed by the holdings of the U.S. Court of Appeals for the
Tenth Circuit in Renewable Fuels Association et al. v. EPA (RFA) \14\
and EPA's long-held findings regarding RFS compliance costs being
passed through ultimately to wholesale purchasers (generally referred
to as RIN cost passthrough). Consistent with that proposal, on April 7,
2022, EPA announced the April 2022 SRE Denial,\15\ which denied 36
previously-decided SRE petitions for the 2018 compliance year that had
been remanded to EPA for reconsideration by the U.S. Court of Appeals
for the D.C. Circuit.\16\ Then, on June 3, 2022, EPA announced the June
2022 SRE Denial,\17\ which denied 69 SRE petitions for the 2016-2021
compliance years that were still pending.\18\ On that same day, EPA
also announced and sought comment on this alternative RIN retirement
schedule.
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\12\ ``Proposed RFS Small Refinery Exemption Decision,'' EPA-
420-D-21-001, December 2021.
\13\ 86 FR 70999 (December 14, 2021).
\14\ Renewable Fuels Ass'n et al. v. EPA, 948 F.3d 1206 (10th
Cir. 2020). The court held that (1) the disproportionate economic
hardship required in order to receive an SRE under the CAA must be
caused by RFS compliance, (2) EPA acted arbitrarily and capriciously
when it granted the SREs at issue without reconciling those
decisions with the Agency's previous findings on RIN cost
passthrough, and (3) ``extension'' as used in the CAA SRE provisions
required continuity, such that small refineries were only eligible
for SREs if they had been continuously exempted from the outset of
the RFS program. On September 4, 2020, the small refineries filed a
petition for a writ of certiorari from the Supreme Court requesting
review only of the holding regarding the meaning of ``extension,''
which was granted on January 8, 2021, and following oral argument,
was decided on June 25, 2021, in HollyFrontier Cheyenne Refining,
LLC et al. v. Renewable Fuels Ass'n et al., 114 S.Ct. 2172 (2021)
(HollyFrontier). The Supreme Court held in HollyFrontier that
``extension'' as used in the SRE provisions of the CAA does not
require continuous exemption. The other holdings in RFA were not
appealed.
\15\ ``April 2022 Denial of Petitions for RFS Small Refinery
Exemptions,'' EPA-420-R-22-005, April 2022.
\16\ Sinclair Wyoming Refining Co. v. EPA, No. 19-1196 (D.C.
Cir.), Dec. 8, 2021 Order, Doc. No. 1925942.
\17\ ``June 2022 Denial of Petitions for RFS Small Refinery
Exemptions,'' EPA-420-R-22-011, June 2022.
\18\ More information about SREs is available at https://www.epa.gov/fuels-registration-reporting-and-compliance-help/rfs-small-refinery-exemptions.
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II. Small Refineries and RFS Compliance
A. Unique Small Refinery Compliance Challenges
We understand that some small refineries that recently had their
2019 and 2020 SRE petitions denied may not be prepared to comply with
their renewable volume obligations (RVOs or ``RFS obligations'') for
the 2020 compliance year by the applicable compliance deadlines, likely
because they received SREs in recent years and assumed they would
continue. Additionally, the 2019, 2020, and 2021 compliance deadlines
have been compressed \19\ and some small refineries have stated that
they have been unable to acquire the RINs they need to comply with
their RFS obligations.\20\ For these reasons, EPA believes it is
appropriate to allow all small refineries--including those that carried
forward a 2019 RIN deficit into the 2020 compliance year pursuant to 40
CFR 80.1427(b)--to elect to use the alternative RIN retirement schedule
described in Section III to meet their 2020 RFS obligations. This will
give small refineries additional time and open a broader range of RIN
vintages to acquire and retire the RINs needed to demonstrate
compliance for the 2020 compliance year.
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\19\ The RFS regulations establish deadlines for obligated
parties--including small refineries--to comply with their annual
RVOs; the deadlines provide the dates by which obligated parties
must retire sufficient RINs to comply with those RVOs and submit
associated compliance reports. The 2019 compliance deadline for
small refineries is September 1, 2022; the 2020 compliance deadline
for all obligated parties is December 1, 2022; and the 2021
compliance deadline for all obligated parties is March 31, 2023.
\20\ See, e.g., Comments on 2020-2022 RFS Rule from the Small
Refinery Coalition, Docket Item No. EPA-HQ-OAR-2021-0324-0570.
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Several commenters supported EPA's proposed alternative RIN
retirement schedule. However, other commenters stated that the
alternative RIN retirement schedule for small refineries is
unnecessary, that a small refinery's decision to postpone its RIN
purchases is not an adequate reason for providing this additional
flexibility, and that EPA should explicitly limit the alternative RIN
retirement schedule to only the 2020 compliance year. These commenters
asserted that small refineries were put on notice regarding the
uncertainty of their 2019 and 2020 SRE petitions by the RFA opinion,
then notified again in December 2021 when EPA proposed to deny 65
pending SRE petitions. Thus, the commenters argued, small refineries
had ample awareness of EPA's SRE petition evaluation criteria such that
they should have had no reasonable expectation of receiving exemptions,
given the high burden of demonstrating that EPA's RIN cost passthrough
findings do not apply to them. Furthermore, they argued, small
refineries had ample opportunity to begin planning and preparing for
RFS compliance and should not again postpone their compliance planning
and preparation. These commenters also asserted that EPA already
provided significant support to small refineries by retroactively
lowering the 2020 volumes, extending the 2019, 2020, 2021, and 2022
compliance deadlines, and issuing the April 2022 and June 2022
Compliance Actions (hereinafter the ``Compliance Actions''),\21\
thereby negating the need for the alternative RIN retirement schedule.
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\21\ ``April 2022 Alternative Compliance Demonstration Approach
for Certain Small Refineries Under the Renewable Fuel Standard
Program,'' EPA-420-R-22-006, April 2022; and ``June 2022 Alternative
Compliance Demonstration Approach for Certain Small Refineries Under
the Renewable Fuel Standard Program,'' EPA-420-R-22-012, June 2022.
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We generally agree that compliance should not be indefinitely
postponed for any obligated party--including small refineries--and that
small refineries should plan for compliance and not delay their RIN
purchases. However, this is not EPA's sole justification for this
action. Instead, we aim to avoid having small refineries fall into
noncompliance due to their expectation that EPA would continue to grant
SREs, largely because such noncompliance would exacerbate existing
uncertainty in the RIN market. The goal of the alternative RIN
retirement schedule is not to provide small refineries with a means of
avoiding compliance with their RFS obligations, but rather to support
small refineries in their transition into positions where they will be
able to comply with their RVOs on an ongoing basis. This will also
ensure the use of renewable fuels in the U.S. as required by the RFS
program and help provide certainty in the RFS program
[[Page 54161]]
and fuels markets given the unique circumstances as a result of our
June 2022 actions. While we agree that small refineries were given some
notice regarding the importance of RIN cost passthrough in our
evaluation of SRE petitions by the RFA opinion and the likelihood that
it would affect their ability to continue receiving annual SREs, that
awareness does not resolve the consequences of the challenges facing
small refineries, including the current limitations on RIN availability
and the resulting impact on the RFS program and the fuels markets in
general. Additionally, we did not propose, nor are we finalizing, an
extension of the alternative RIN retirement schedule beyond the 2020
compliance year.
B. Overview of Compliance Approach
For the reasons provided herein, we are providing an alternative
RIN retirement schedule to small refineries for the 2020 compliance
year to facilitate their transition into full compliance with the RFS
program. This alternative RIN retirement schedule will decrease the
number of RINs that small refineries must acquire in the near term,
extend the time period over which small refineries can plan and
implement their RIN transactions, and allow the use of RINs generated
in future compliance years, thereby reducing the immediate financial
impacts on small refineries, and in so doing the impacts on the RIN
market and the RFS program as a whole within the broader fuels market.
Some commenters asserted that the alternative RIN retirement
schedule would harm the RFS program and lead to increased uncertainty
in the RIN market. The commenters stated that the market would not know
how small refineries would choose to comply--whether by the 2020
compliance deadline or using the alternative RIN retirement schedule--
and that this would undermine reliability and predictability in the RIN
market. We disagree with these assertions. The alternative RIN
retirement schedule aims to bring small refineries into a routine of
complying with their RVOs, thereby restoring predictability and
reliability in the RIN market while moderating the immediate impacts on
the RFS program and fuels markets. While the alternative RIN retirement
schedule may result in some limited uncertainty in the RIN market, we
believe it is outweighed by the benefit of increasing the likelihood
that small refineries will be able to comply with their 2020
obligations and that any such uncertainty can be reduced by providing
greater transparency on the utilization of the alternative RIN
retirement schedule. Therefore, we intend to post information and
aggregated data related to the alternative RIN retirement schedule on
the RFS SRE website.\22\ Such information may include the number of
small refineries that opt-in to the alternative RIN retirement
schedule, the refinery names and facility locations,\23\ and the total
portion of the 2020 RVO that small refineries are complying with using
the alternative RIN retirement schedule. We believe that posting this
information will provide necessary transparency as to the size and
scope of the impact of the alternative RIN retirement schedule.
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\22\ See https://www.epa.gov/fuels-registration-reporting-and-compliance-help/rfs-small-refinery-exemptions.
\23\ 40 CFR 80.1402(c).
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We are allowing any refinery that meets the definition of ``small
refinery'' \24\ for the 2020 compliance year to use this alternative
RIN retirement schedule, regardless of whether it submitted an SRE
petition for 2020 or recently received an SRE denial. Almost all small
refineries submitted an SRE petition for 2020 that was denied in the
June 2022 SRE Denial. We further believe that the alternative RIN
retirement schedule should be provided to all small refineries because
the previous uncertainty surrounding the availability of SREs
potentially affected all small refineries, which ``may at any time
petition'' for an SRE.\25\
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\24\ CAA section 211(o)(1)(K), 40 CFR 80.1401.
\25\ CAA section 211(o)(9)(B)(i).
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Several commenters highlighted that the proposed regulations were
inconsistent with EPA's stated intent in the preamble of the proposed
rule to allow all small refineries to use the proposed alternative RIN
retirement schedule. The proposed regulations, they noted, stated that
a small refinery must meet the requirements of 40 CFR
80.1441(e)(2)(iii) in order to avail itself of the alternative RIN
retirement schedule. The commenters stated that there is a distinction
between meeting the requirements of the definition of ``small
refinery'' in 40 CFR 80.1401 and qualifying for an SRE under 40 CFR
80.1441(e)(2)(iii).\26\ We agree and have clarified the final
regulations to reflect that a small refinery must meet the definition
of ``small refinery'' in 40 CFR 80.1401 in the applicable compliance
year (i.e., 2020) in order to elect to use the alternative RIN
retirement schedule.
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\26\ The definition of ``small refinery'' in 40 CFR 80.1401
requires that a refinery's average aggregate daily crude oil
throughput does not exceed 75,000 bpd for a given year. The
requirements of 40 CFR 80.1441(e)(2)(iii) require that a refinery
meet the definition of ``small refinery'' for both the year in
question and the year prior. For purposes of the proposed
alternative RIN retirement schedule, the proposed regulations would
have meant that a refinery needed to qualify as a ``small refinery''
for both 2019 and 2020 in order to use the alternative RIN
retirement schedule.
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We did not receive any comments objecting to limiting the
alternative RIN retirement schedule for 2020 to only small refineries
and, therefore, are finalizing it as proposed. However, one commenter
stated that EPA's prior action to retroactively reduce the 2020
standards to preserve the carryover RIN bank and ensure that sufficient
RINs were available for 2020 compliance made the proposed alternative
RIN retirement schedule unnecessary. We disagree with this assertion
and believe that it is appropriate to provide this alternative RIN
retirement schedule for small refineries for their 2020 RFS obligations
because it responds to their unique circumstances at this time. Some
small refineries have stated that they have not been acquiring RINs
ratably while producing transportation fuels that incur an RFS
obligation in anticipation of EPA granting their SRE petitions as it
had in past years, a result that did not manifest.\27\ Currently, the
available RINs \28\ small refineries need for compliance with their
2020 RVOs are being held in large part by other obligated parties that
likely intend to use these RINs for compliance with their own RFS
obligations, and those parties may not be willing to sell them.\29\
While the revisions to the 2020
[[Page 54162]]
standards made it possible for them to be met by the market as a whole,
those revisions did not take targeted action to assist individual
compliance by small refineries. For these reasons, many small
refineries may not be prepared to comply with their 2020 RVOs by the
2020 compliance deadline. Therefore, we are providing small refineries
with more time to acquire RINs and allow the use of a broader range of
RIN vintages through the alternative RIN retirement schedule, which we
believe will help resolve some of the obstacles small refineries may
currently be facing.
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\27\ We note, however, that the RIN cost passthrough analysis
presented in the April 2022 and June 2022 SRE Denials puts small
refineries on notice regarding the high burden they bear when
petitioning for an SRE to demonstrate that their alleged DEH is
caused by compliance with the RFS program. Thus, absent a compelling
demonstration that a small refinery experiences DEH caused by
compliance with the RFS program, a small refinery should have no
reasonable expectation that its SRE petition will be granted in the
future and has no reason to again delay the acquisition of RINs to
demonstrate compliance with its RFS obligations. This is a long-held
position by EPA; for example, in its December 6, 2016, SRE guidance
document, EPA stated that ``[p]etitioning small refineries should
always presume that they are subject to the requirements of the RFS
program and include RFS compliance in their overall planning.''
Accordingly, as has been true in the past, every small refinery
should plan and prepare to demonstrate compliance with their RFS
obligations unless and until they receive an exemption.
\28\ ``Available RINs'' refers to those RINs that can be used to
demonstrate compliance because they have not been retired as
required under 40 CFR 80.1434.
\29\ RIN-holding data indicates that just four obligated
parties--which represented approximately 40 percent of the 2019
total RVO--currently hold over half of all available 2019 RINs, and
nine obligated parties--which represent approximately 55 percent of
the 2019 total RVO--hold over three-quarters of all available 2019
RINs. Similarly, just five obligated parties currently hold over
half of all available 2020 and 2021 RINs, and 12 obligated parties
hold over three-quarters of all available 2020 and 2021 RINs. See
``EMTS RIN Holding Data as of August 1, 2022,'' available in the
docket for this action. RIN holdings are presented in relation to
the 2019 total RVO because this is the most recent year for which
EPA has compliance data.
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III. Alternative RIN Retirement Schedule for Small Refineries for the
2020 Compliance Year
The alternative RIN retirement schedule is an extended period over
which small refineries must acquire and retire RINs to demonstrate
compliance with their 2020 RFS obligations. The alternative RIN
retirement schedule includes five quarterly RIN retirement deadlines
that extend into the 2024 calendar year, thereby allowing small
refineries to potentially use 2021, 2022, 2023, and 2024 RINs to
satisfy a portion of their 2020 RVOs. We are providing this schedule to
allow over 18 months between the June 2022 SRE Denial and the final
2020 RVO quarterly RIN retirement deadline of February 1, 2024, for
small refineries to satisfy, in full, their 2020 RVOs. Table III.1
provides the alternative RIN retirement schedule and expected RIN
vintages that can be used for each quarterly RIN retirement deadline,
along with annual compliance reporting deadlines:
Table III.1--2020 RVO Alternative RIN Retirement Schedule With Annual Compliance Reporting Deadlines
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RIN vintage
Milestone Deadline --------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024
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2019 Compliance Deadline...... September 1, 2022 C X ....... ....... ....... ....... .......
2020 Compliance Deadline...... December 1, 2022. ....... C X ....... ....... ....... .......
2020 RVO RIN Retirement 1 February 1, 2023. ....... ....... X X X X .......
(20%).
2021 Compliance Deadline...... March 31, 2023... ....... ....... C X ....... ....... .......
2020 RVO RIN Retirement 2 May 1, 2023...... ....... ....... ....... X X X .......
(40%).
2020 RVO RIN Retirement 3 August 1, 2023... ....... ....... ....... X X X .......
(60%).
2022 Compliance Deadline \a\.. September 1, 2023 ....... ....... ....... C X ....... .......
2020 RVO RIN Retirement 4 November 1, 2023. ....... ....... ....... ....... X X .......
(80%).
2020 RVO RIN Retirement 5 February 1, 2024. ....... ....... ....... ....... X X X
(100%).
2023 Compliance Deadline \a\.. March 31, 2024... ....... ....... ....... ....... C X .......
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\a\ The 2022 and 2023 compliance deadlines are provided for illustrative purposes but have not yet been
established. See 40 CFR 80.1451(f)(1)(A).
X = RINs of this vintage may be used in any amount.
C = RINs of this vintage may be used to satisfy up to 20 percent of the RVO, per 40 CFR 80.1427(a)(5).
We are establishing these specific RIN retirement deadlines so that
they will not overlap with other RFS compliance reporting deadlines.
This approach will allow EPA staff to implement and oversee the RIN
retirements more effectively and mitigate the potential for confusion
on the part of participating small refineries that will have
overlapping compliance reporting requirements. We are setting specific
dates for these deadlines--as opposed to tying them to the effective
date of this or another RFS-related action--to provide greater
certainty regarding the RIN retirement deadlines under the alternative
RIN retirement schedule.
We are establishing the five quarterly RIN retirement deadlines
because this will allow small refineries additional time to acquire
RINs, as well as provide small refineries with access to additional
newer RIN vintages, as any valid RIN at the time of retirement can be
used to demonstrate compliance. In this way, the alternative RIN
retirement schedule strikes a balance between easing the compliance
burden for small refineries while not indefinitely postponing their
compliance demonstrations, thereby also supporting the integrity of the
RFS program and ensuring the use of renewable fuels in the U.S. The
extended RIN retirement schedule and expanded RIN vintage eligibility
will help individual small refineries fully comply, and in so doing
will strengthen the entire RFS program following the recent delays in
issuing SRE petition decisions for 2019 and 2020 and in establishing
the RFS standards for 2021 and 2022 (and revised standards for 2020).
Several commenters stated that acquiring and retiring RINs for the
2020 compliance year over five quarterly installments would still
impose too high of a compliance burden that small refineries could not
bear. These commenters advocated for EPA to allow all small refineries
to use the same approach to demonstrating compliance with their 2019
and 2020 RFS obligations that EPA provided to the 31 small refineries
for their 2016-2018 RFS obligations in the Compliance Actions. These
commenters asserted that the RIN market fundamentally disadvantages
small refineries that comply by purchasing RINs, and that the extended
time to purchase RINs would not remedy this situation.
We disagree that using the approach suggested by commenters is
appropriate for the 2019 and 2020 compliance years. First, the unique
confluence of circumstances that justified the Compliance Actions for
the 31 small refineries' 2016-2018 RFS obligations does not exist for
the small refineries that have unmet 2019 and 2020 RFS obligations.\30\
In particular, EPA had not previously granted SREs for 2019 and 2020,
which it then subsequently revoked, nor do we find that compliance is
not feasible for small refineries for 2019 and 2020. Second, we
fundamentally disagree that a small refinery is disadvantaged by
needing to purchase RINs instead of being able to blend renewable fuels
into their petroleum-based transportation fuels to separate RINs, as
explained in the June 2022 SRE Denial. Indeed, extending the
[[Page 54163]]
unusual remedy provided in the Compliance Actions to the 2019 and 2020
RVOs would be wholly inappropriate, as it would be contrary to the
purpose of transitioning small refineries into a compliance posture and
ignore the unique circumstances that warranted such an extreme
compliance demonstration for the 2016-2018 RVOs, thereby exacerbating
uncertainty in the RIN market. Nevertheless, we believe the alternative
RIN retirement schedule for 2020 is necessary and appropriate for
facilitating RFS compliance by small refineries.
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\30\ See ``April 2022 Alternative Compliance Demonstration
Approach for Certain Small Refineries Under the Renewable Fuel
Standard Program,'' EPA-420-R-22-006, April 2022, at Section III.
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Under the alternative RIN retirement schedule, a small refinery
must retire at least 20 percent of its 2020 RVOs by the first quarterly
RIN retirement deadline, at least 40 percent by the second quarterly
RIN retirement deadline, and so on, as laid out in Table III.1, such
that a small refinery's full 2020 RVOs must be met on the final RIN
retirement deadline of February 1, 2024. For example, under the
alternative RIN retirement schedule, if a small refinery retired RINs
sufficient to meet 30 percent of its 2020 RVOs by the 2020 compliance
deadline of December 1, 2022, then it would not be obligated to retire
additional RINs towards its 2020 RVOs until the second quarterly RIN
retirement deadline (i.e., May 1, 2023), at which time it would be
obligated to retire RINs equal to at least 40 percent of its 2020 RVOs.
We are also allowing small refineries to use any valid RINs at the
time of retirement for compliance, including RIN vintages after 2020
(i.e., 2021, 2022, 2023, and 2024 RINs) until such RIN vintages expire
(e.g., 2021 RINs expire after the 2022 compliance deadline). This will
allow small refineries access to additional RINs while maintaining
compliance with the RFS regulations regarding the validity and
expiration of RINs.\31\ Doing so will increase the likelihood of a
small refinery satisfying its outstanding 2020 obligations and that the
volume targets are fulfilled. Given the relatively small proportion of
the overall demand for RINs that is represented by all small refineries
(i.e., less than 10 percent of the total RVO for any given year) and
that there is likely only a limited number of small refineries that
will utilize the alternative RIN retirement schedule, we do not
anticipate that this action will have any significant impact on the
overall RIN market in future years through increased demand for future
year vintages given the small volume of RINs likely to be used through
the alternative RIN retirement schedule as compared to the larger
renewable fuels market.
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\31\ 40 CFR 80.1428(a) specifies that 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 40 CFR 80.1431(a), an expired RIN will be
considered an invalid RIN. We are not reopening these regulations,
nor the regulations associated with which RIN vintages are available
for compliance under 40 CFR 1427(a).
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One commenter asserted that it is inappropriate to allow the use of
RINs generated in 2023 and 2024 as part of the alternative RIN
retirement schedule because EPA has not yet established the RVOs for
those years. However, the commenter did not explain why the fact the
EPA has not yet set the standards for 2023 and 2024 makes the use of
those vintage RINs inappropriate for the alternative RIN retirement
schedule. Indeed, this is an integral aspect of the alternative RIN
retirement schedule as it eases current RIN supply constraints and
provides small refineries with sufficient time to plan and execute
their RIN purchases.
Other commenters asserted that the proposal to allow small
refineries to use 2023 and 2024 RINs for compliance with their 2020
obligations under the alternative RIN retirement schedule did not go
far enough to support small refineries. These commenters asserted that
EPA should allow small refineries to use any 2019 or 2020 RINs they
currently hold for compliance in any compliance year through 2023. One
commenter further suggested that EPA could create a separate compliance
category for small refineries and set their RFS obligations at the same
average percentage of their RVOs based on the number of RINs the group
currently holds.
We disagree that these additional flexibilities are appropriate or
necessary to bring small refineries into compliance with their RFS
obligations. Small refineries currently holding 2019 or 2020 RINs are
encouraged to use those RINs for 2019 or 2020 compliance, such that
there will be fewer RINs that they need to acquire going forward.
Additionally, EPA did not propose a new methodology to create small
refinery-specific RVOs and such comments overlook the fact that the RFS
obligations are already proportional to an obligated party's production
of gasoline and diesel fuel. Moreover, CAA section
211(o)(3)(B)(ii)(III) requires EPA to establish a single annual
standard applicable to all obligated parties. The commenter did not
provide any explanation as to how EPA could establish a separate annual
obligation for only small refineries under the terms of CAA section
211(o)(3)(B)(ii)(III).
We are requiring small refineries to notify EPA of their intent to
use the alternative RIN retirement schedule on or before the 2020
compliance deadline. This notice will inform EPA as to which small
refineries are using the alternative RIN retirement schedule and will
allow EPA to monitor and track the progress of the small refineries
towards full compliance with their 2020 RVOs. We are requiring a small
refinery to send us a letter signed by the responsible corporate
officer expressing their intent to comply using the alternative RIN
retirement schedule. We will acknowledge receipt of the small
refinery's notification of their intent to comply using the alternative
RIN retirement schedule. We did not receive any comments on this aspect
of the proposal. Accordingly, we are finalizing as proposed.
Under the alternative RIN retirement schedule, we will still
require that participating small refineries submit a 2020 annual
compliance report by the 2020 compliance deadline. The 2020 annual
compliance report is necessary to establish a small refinery's 2020
RVOs, which will be used by the small refinery to determine minimum RIN
retirements for each installment under the alternative RIN retirement
schedule, and for EPA to verify that the small refinery is meeting its
quarterly RIN retirement obligations. We did not receive any comments
on this aspect of the proposal and are finalizing it as proposed.
As a condition to use the alternative RIN retirement schedule, the
obligated party that owns/operates the small refinery must, on its
annual RFS compliance report, provide the individual-small refinery RVO
for the 2020 compliance year (i.e., comply on a refinery-basis for that
small refinery). Under the RFS program, obligated parties must either
comply with their RVOs on an individual-refinery basis or an aggregated
basis (i.e., they combine the RVOs from all of their refineries). If an
obligated party owns other refineries with RVOs in addition to the
small refinery and complies on an aggregated basis, it would be unclear
what portion of the aggregated RVOs apply to only the small refinery
and whether the obligated party has met the RIN retirement quotas under
the alternative RIN retirement schedule. Therefore, as a condition for
a small refinery to use the alternative RIN retirement schedule, the
small refinery must demonstrate compliance on an individual basis so
that RINs can be retired for the specific small refinery's RVOs.
Similarly, if an obligated party carries forward a RIN deficit from
2019 into 2020, that obligated party would need to comply on an
individual-refinery basis for the
[[Page 54164]]
2019 compliance year as well. This condition allows EPA to track the
small refinery's progress towards compliance with its 2020 obligations
more effectively, and will not unduly hinder obligated parties in
making their compliance demonstrations. We did not receive any comments
on this aspect of the proposal. Accordingly, we are finalizing as
proposed.
We are not changing the regulatory provisions governing the use of
cellulosic waiver credits (CWCs). The regulations currently state that
CWCs ``may only be used for an obligated party's current-year
cellulosic biofuel RVO and not towards any prior year deficit
cellulosic biofuel volume obligations.'' \32\ We believe this approach
is appropriate because, in recent years, the use of CWCs has decreased
as obligated parties have largely been complying with their cellulosic
RVO through RIN retirements.\33\ Accordingly, small refineries wishing
to use CWCs for their 2020 cellulosic biofuel RVO must purchase and use
CWCs by the 2020 compliance deadline.\34\ Additionally, allowing small
refineries to use CWCs to meet their cellulosic biofuel RVO through the
alternative RIN retirement schedule (i.e., after the 2020 compliance
deadline) would introduce logistical challenges for EPA and small
refineries that would complicate the implementation of the alternative
RIN retirement schedule. Moreover, it is unlikely that modifications to
the CWC regulations would provide small refineries with a meaningful
benefit in complying with their RFS obligations, when viewed in light
of what we have already provided in this alternative RIN retirement
schedule. We did not receive any comments on this aspect of the
proposal and are finalizing it as proposed.
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\32\ 40 CFR 80.1456(b)(4).
\33\ See Table 4: RFS2 RIN Retirements in EMTS Nested by RVO and
Table 6: Cellulosic Waiver Credits Purchased Annually at https://www.epa.gov/fuels-registration-reporting-and-compliance-help/annual-compliance-data-obligated-parties-and.
\34\ 40 CFR 80.1456(c)(2).
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Under the alternative RIN retirement schedule, a participating
small refinery will not be permitted to carry forward a RIN deficit
from 2021 or a subsequent year into the following compliance year
unless it had fully complied with its 2020 RFS obligations. We are
imposing this condition as a prerequisite to carrying forward a future
RIN deficit because we want to prevent the scenario in which a small
refinery continuously accrues annual RIN deficits, placing it in the
position where it is no longer capable of complying with its accrued
RFS obligations. The alternative RIN retirement schedule is intended to
support small refineries in achieving and maintaining full compliance
with their RFS obligations and get them on track for future compliance,
not to permit them to indefinitely delay their compliance
demonstrations.
Some commenters supported the RIN deficit carry-forward
restriction, while several other commenters opposed this limitation as
being contrary to EPA's goal of providing meaningful support to small
refineries to achieve compliance. The commenters opposing this
restriction also asserted that it is contrary to CAA section
211(o)(5)(D) in that it denies small refineries that would be in
compliance with the alternative RIN retirement schedule a statutory
flexibility that would otherwise be available to them. We disagree that
this restriction is contrary to CAA section 211(o)(5)(D). In this
instance, EPA is allowing small refineries to carry forward RIN
deficits from 2019 into 2020 and satisfy their combined obligations
using the alternative RIN retirement schedule. Thus, EPA is not
depriving small refineries of that statutory flexibility. However, as
the statute requires that such a deficit be satisfied in the next
compliance year, and the compliance demonstration for 2020 is prolonged
by the alternative RIN retirement schedule, it would be a violation of
the statute and regulations to allow additional deficits to be carried
forward. Moreover, even if a small refinery chose not to carry forward
a 2019 RIN deficit and only used the alternative RIN retirement
schedule for its 2020 RVOs, permitting a 2021 deficit to be carried
forward before the 2020 obligations have been fully satisfied would
only encourage small refineries to again delay their compliance
preparation and demonstration, contrary to the goals of the alternative
RIN retirement schedule and the RFS program. Additionally, a small
refinery would again be eligible to carry forward a deficit upon full
demonstration of its 2020 obligation; thus, it is the decisions of the
small refinery itself that determine whether or not they can utilize
the statutory and regulatory flexibilities provided by the deficit
carry forward provision.
We note that all of the already existing regulatory flexibilities
for small refineries--including the ability to satisfy up to 20 percent
of their 2019 RVOs using 2018 carryover RINs under 40 CFR 80.1427(a)(5)
and the ability to carry forward a RIN deficit from 2019 to 2020 if
they did not carry forward a RIN deficit from 2018 under 40 CFR
80.1427(b)--will continue to be available under the alternative RIN
retirement schedule. It should also be noted that other current RFS
regulations will also remain in effect, including that small refineries
that use 2018 RINs to meet up to 20 percent of their 2019 RVOs must do
so by the 2019 compliance deadline because 2018 RINs expire after the
2019 compliance deadline and become invalid.\35\ Similarly, any 2019
RINs that a small refinery uses to satisfy up to 20 percent of its 2020
RVOs must be retired for compliance by the 2020 compliance deadline
because 2019 RINs expire after the 2020 annual compliance deadline and
become invalid.\36\
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\35\ 40 CFR 80.1427(a)(6), 80.1428(c).
\36\ 40 CFR 80.1427(a)(6).
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As described above, participating small refineries will still be
able to use any valid RINs at the time of retirement under the
alternative RIN retirement schedule. We believe that this approach will
encourage participating small refineries to retire a maximum number of
2019 RINs for their 2020 RVOs while providing flexibility for small
refineries to obtain and retire valid RINs for 2021, 2022, 2023, and
2024 to satisfy their 2020 RVOs.
To help implement the alternative RIN retirement schedule for
participating small refineries, we intend to assist parties with
procedures for submitting forms that they would use. For example, we
plan to leverage existing forms and procedures for the submission of
reports and transactions under our e-reporting systems. Due to the
limited number of small refineries, we plan to work individually with
participating small refineries. To further help communicate this
alternative RIN retirement schedule for small refineries, we also
intend to post the deadlines for the alternative RIN retirement
schedule on our website.\37\
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\37\ Information related to annual compliance and attest
engagement reporting is available at https://www.epa.gov/fuels-registration-reporting-and-compliance-help/reporting-fuel-programs.
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Lastly, we received comments from one commenter that were beyond
the scope of this rulemaking. This commenter raised issues facing the
RFS program as a whole, such as renewable fuel blending challenges
relating to the E10 ``blendwall,'' the imposition of RIN price
controls, and the potential environmental impacts of renewable fuel
production. While the proposed RIN retirement schedule touched on many
challenges small refineries currently face--including the final RFS
standards, RIN price controls, and the environmental impacts of
renewable fuel production--these matters are
[[Page 54165]]
beyond the scope of this rulemaking. Many of these issues, moreover,
have been addressed in separate proceedings. Therefore, these topics
are not further addressed in this action.
IV. Statutory and Executive Order Reviews
Additional information about these statutes and Executive orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Paperwork Reduction Act (PRA)
The information collection activities in this final rule have been
submitted for approval to the Office of Management and Budget (OMB)
under the PRA. The Information Collection Request (ICR) document that
the EPA prepared has been assigned EPA ICR number 2718.02. You can find
a copy of the ICR in the docket for this rule, and it is briefly
summarized here. The information collection requirements are not
enforceable until OMB approves them.
The information to be collected is necessary to implement the
alternative RIN retirement schedule for small refineries. As part of
this rule, a participating small refinery will submit a notification to
EPA indicating that the small refinery will use the alternative RIN
retirement schedule and maintain records related to the determination
and retirement of RINs under the alternative RIN retirement schedule.
We estimate that 13 small refineries will use the alternative RIN
retirement schedule.
Respondents/affected entities: Small refineries.
Respondent's obligation to respond: Mandatory in order to receive
compliance flexibility under Sec. 80.1444.
Estimated number of respondents: 39.\38\
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\38\ We note that under this alternative RIN retirement
schedule, each participating small refinery will have to submit a
notification letter, keep records of the submitted notification
letter, and keep records of the methods and variables used to
determine RIN retirements under the alternative RIN retirement
schedule. For purposes of estimating burden associated with
reporting and recordkeeping as a result of this rule, we count each
small refinery three times. Because we estimate that 13 small
refineries will elect to take advantage of the alternative RIN
retirement schedule, we estimate that the total number of
respondents under this collection will be 39.
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Frequency of response: Notification letters would typically be a
one-time response. Recordkeeping is performed on occasion, and as
needed.
Total estimated burden: 19 hours (per year). Burden is defined at 5
CFR 1320.3(b).
Total estimated cost: $1,710, all of which is labor costs, and
which includes $0 annualized capital or operation & maintenance costs.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for the
EPA's regulations in 40 CFR are listed in 40 CFR part 9. When OMB
approves this ICR, EPA will announce that approval in the Federal
Register and publish a technical amendment to 40 CFR part 9 to display
the OMB control number for the approved information collection
activities contained in this final rule.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. In
making this determination, EPA concludes that the impact of concern for
this rule is any significant adverse economic impact on small entities
and that the agency is certifying that this rule will not have a
significant economic impact on a substantial number of small entities
because the rule has no net burden on the small entities subject to the
rule. This action reduces burden to small refineries by creating an
alternative RIN retirement schedule for their 2020 RVOs. As small
refineries have no obligation to use the alternative RIN retirement
schedule, there is no additional cost to small refineries if they
simply comply with the existing regulatory schedule. We do not
anticipate that there will be any costs associated with these changes
and that the alternative RIN retirement schedule may reduce costs. We
have therefore concluded that this action will have no net regulatory
burden for all directly regulated small entities.
D. Unfunded Mandates Reform Act (UMRA)
This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C. 1531-1538, and does not
significantly or uniquely affect small governments. This action imposes
no enforceable duty on any state, local, or tribal governments.
Requirements for the private sector do not exceed $100 million in any
one year.
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.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications as specified in
Executive Order 13175. This action only affects RFS obligated parties.
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 Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that EPA has reason to believe may disproportionately affect children,
per the definition of ``covered regulatory action'' in section 2-202 of
the Executive order. This action is not subject to Executive Order
13045 because it does not concern an environmental health risk or
safety risk.
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR
Part 51
This action does not involve technical standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
EPA believes that this action is not subject to Executive Order
12898 (59 FR 7629, February 16, 1994) because it does establish an
environmental health or safety standard. This action addresses the 2020
compliance deadline for small refineries only and does not impact the
RFS standards themselves.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United
[[Page 54166]]
States. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
V. Statutory Authority
Statutory authority for this action comes from section 211(o) of
the Clean Air Act, 42 U.S.C. 7545(o).
List of Subjects in 40 CFR Part 80
Environmental protection, Administrative practice and procedure,
Air pollution control, Diesel fuel, Fuel additives, Gasoline, Imports,
Oil imports, Penalties, Petroleum, Renewable fuel, Reporting and
recordkeeping requirements.
Michael S. Regan,
Administrator.
For the reasons set forth in the preamble, EPA amends 40 CFR part
80 as follows:
PART 80--REGISTRATION OF FUELS AND FUEL ADDITIVES
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).
Subpart M--Renewable Fuel Standard
0
2. Add Sec. 80.1444 to read as follows:
Sec. 80.1444 Alternative RIN retirement schedule for small
refineries.
(a) Applicability. The provisions of this section apply to the
following compliance years:
(1) 2020.
(2) [Reserved]
(b) Eligibility. Any obligated party that has a refinery that meets
the definition of small refinery in Sec. 80.1401 for the applicable
compliance year in paragraph (a) of this section (hereinafter the
``applicable compliance year'') is eligible to use the provisions of
this section for each small refinery it operates (hereinafter the
``small refinery'').
(c) Treatment of RVOs. (1) In lieu of retiring sufficient RINs
under Sec. 80.1427(a) to demonstrate compliance with the small
refinery's RVOs for the applicable compliance year by the applicable
compliance deadline, the obligated party must meet all the requirements
of this section and all other applicable requirements of this subpart.
(2) If the obligated party does not meet all of the requirements in
this section, the obligated party is subject to the requirements of
Sec. 80.1427(a).
(d) Individual facility compliance. (1) If the obligated party
carries a deficit into the applicable compliance year from the previous
compliance year, the obligated party must comply with its RVOs for each
refinery it operates on an individual basis (as specified in Sec.
80.1406(c)) for both the previous compliance year and the applicable
compliance year.
(2) If the obligated party does not carry a deficit into the
applicable compliance year from the previous compliance year, the
obligated party must comply with its RVOs for each refinery it operates
on an individual basis (as specified in Sec. 80.1406(c)) for the
applicable compliance year.
(e) Compliance report submission and notification. The obligated
party must do all the following by the annual compliance reporting
deadline specified in Sec. 80.1451(f)(1)(i) for the applicable
compliance year (hereinafter the ``applicable compliance deadline''):
(1) Submit an annual compliance report for the small refinery for
the applicable compliance year.
(2) Notify EPA in a letter signed by the responsible corporate
officer (RCO) or RCO delegate, as specified at 40 CFR 1090.800(d), of
its intent to use the provisions of this section for the small
refinery.
(f) Alternative RIN retirement schedule. The obligated party must
retire sufficient RINs to satisfy the minimum percentages of each and
every RVO for the applicable compliance year (as determined under Sec.
80.1407(a)) according to the following RIN retirement schedule:
(1) For the 2020 compliance year:
Table 1 to Paragraph (f)(1)--2020 Compliance Year RIN Retirement
Schedule
------------------------------------------------------------------------
Minimum 2020 RVOs percentage RIN
retirement Deadline
------------------------------------------------------------------------
20................................... February 1, 2023.
40................................... May 1, 2023.
60................................... August 1, 2023.
80................................... November 1, 2023.
100.................................. February 1, 2024.
------------------------------------------------------------------------
(2) [Reserved]
(g) RIN vintages and retirements. (1) The obligated party may
retire for compliance any valid RINs at the time of retirement towards
the small refinery's RVOs for the applicable compliance year and is
exempt from the requirements in Sec. 80.1427(a)(6)(i).
(2) The obligated party must not retire for compliance any prior-
year RINs for the small refinery's RVOs after the applicable compliance
deadline.
(h) Deficit carry-forward for subsequent compliance years. The
obligated party may not carry forward any deficit under Sec.
80.1427(b) for the small refinery for compliance years after the
applicable compliance year until it has retired sufficient RINs to
satisfy each and every RVO for the applicable compliance year in its
entirety.
(i) Forms and procedures. The obligated party must submit annual
compliance reports and retire RINs under this section using forms and
procedures specified by EPA under Sec. Sec. 80.1451(j) and 80.1452(d).
0
3. Amend Sec. 80.1454 by adding paragraph (a)(7) to read as follows:
Sec. 80.1454 What are the recordkeeping requirements under the RFS
program?
(a) * * *
(7) Any obligated party that uses the provisions of Sec. 80.1444
for a small refinery must keep the following records:
(i) Copies of any notifications submitted to EPA under Sec.
80.1444(e)(2).
(ii) Copies of the methods and variables used to calculate the
number of RINs retired for the alternative RIN retirement schedule
under Sec. 80.1444(f).
* * * * *
[FR Doc. 2022-18870 Filed 9-1-22; 8:45 am]
BILLING CODE 6560-50-P