Regulation of Fuels and Fuel Additives: Cellulosic Waiver Credit Price and Minor Amendments to Renewable Fuel Standard Regulations, 18179-18184 [2015-07478]
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Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules
electronically (via email) or in hard
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unless we receive special requests in
advance. Commenters should notify Ms.
Long if they will need specific
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airquality/particlepollution/
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Verbatim transcripts of the hearing and
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How can I get copies of this document
and other related information?
The EPA has established a docket for
the proposed rule ‘‘Fine Particulate
Matter National Ambient Air Quality
Standards: State Implementation Plan
Requirements’’ under Docket ID No.
EPA–HQ–OAR–2013–0691 (available at
www.regulations.gov). The EPA has
made available information related to
the proposed rule at this Web site:
https://www.epa.gov/airquality/
particlepollution/actions.html.
Dated: March 26, 2015.
Stephen D. Page,
Director, Office of Air Quality Planning and
Standards.
[FR Doc. 2015–07774 Filed 4–2–15; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R07–OAR–2015–0159; FRL–9925–59–
Region 7]
Approval and Promulgation of
Implementation Plans; State of Iowa;
2015 Iowa State Implementation Plan;
Permit Modifications; Muscatine, Iowa
Environmental Protection
Agency.
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to approve
revisions to the State Implementation
Plan (SIP) for the State of Iowa to
include modified permits for Muscatine
County, Iowa. The SIP revision
addresses modifications to construction
permits that were included in the 2006
24-hour particulate matter less than 2.5
micrometers (PM2.5) National Ambient
Air Quality Standards (NAAQS) control
strategy proposed on August 11, 2014,
and published as a final rule in the
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SUMMARY:
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Federal Register on December 1, 2014,
with the effective date of December 31,
2014. The state’s submission of
modified permits includes a revised air
dispersion modeling analysis that
demonstrated continued attainment of
the 2006 24-hour PM2.5 NAAQS. This
action will also make an administrative
correction to permit numbers.
DATES: Comments on this proposed
action must be received in writing by
May 4, 2015.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R07–
OAR–2015–0159 by mail to: Heather
Hamilton, Environmental Protection
Agency, Air Planning and Development
Branch, 11201 Renner Road, Lenexa,
Kansas 66219. Comments may also be
submitted electronically or through
hand delivery/courier by following the
detailed instructions in the ADDRESSES
section of the direct final rule located in
the rules section of this Federal
Register.
FOR FURTHER INFORMATION CONTACT:
Heather Hamilton (913) 551–7039, or by
email at Hamilton.heather@epa.gov.
SUPPLEMENTARY INFORMATION: In the
final rules section of the Federal
Register, EPA is approving the state’s
revision to the SIP as a direct final rule
without prior proposal because the
Agency views this as a noncontroversial
revision amendment and anticipates no
relevant adverse comments to this
action. The detailed rationale for the
approval is set forth in the technical
support document that can be found in
Docket ID No. EPA–R07–OAR–2015–
0159. If no relevant adverse comments
are received in response to this action,
no further activity is contemplated in
relation to this action. If EPA receives
relevant adverse comments, the direct
final rule will be withdrawn and all
public comments received will be
addressed in a subsequent final rules
based on this proposed action. EPA will
not institute a second comment period
on this action. Any parties interested in
commenting on this action should do so
at this time. Please note that if EPA
receives adverse comments on part of
this rule and if that part can be severed
from the remainder of the rule, EPA may
adopt as final those parts of the rule that
are not the subject of an adverse
comment. For additional information,
see the direct final rule which is located
in the rules section of this Federal
Register.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference,
Intergovernmental relations, Particulate
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18179
matter, Reporting and recordkeeping
requirements.
Dated: March 20, 2015.
Mark Hague,
Acting Regional Administrator, Region 7.
[FR Doc. 2015–07489 Filed 4–2–15; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2015–0049; FRL–9924–70–
OAR]
RIN 2060–AS48
Regulation of Fuels and Fuel
Additives: Cellulosic Waiver Credit
Price and Minor Amendments to
Renewable Fuel Standard Regulations
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to clarify our
regulations related to the data sources
used to establish the cellulosic waiver
credit (CWC) price. We are also
proposing to remove references to CWC
prices from the renewable fuel standard
regulations, and instead intend to post
the prices on EPA’s Web site. This
proposed rule also indicates what the
CWC prices for 2014 and 2015 would be
using the data sources and methodology
contained in the rule; however these
prices will not be established until they
are posted on our Web site following the
effective date of the rule. In addition, we
are proposing minor amendments to the
renewable fuel standard program
regulations to reinsert sections
inadvertently overwritten by the Quality
Assurance Program final rule published
on July 18, 2014. In the ‘‘Rules and
Regulations’’ section of this Federal
Register, we are making these same
amendments as a direct final rule. If we
receive no adverse comment, the direct
final rule will go into effect and we will
not take further action on this proposed
rule.
DATES: A request for a public hearing
must be received by April 20, 2015. If
a public hearing request is received,
EPA will publish a notice in the Federal
Register indicating the time and place
for the hearing. If a public hearing is
held, written comments must be
received within 30 days after the date of
the hearing. If no public hearing is held
then comments must be received on or
before May 4, 2015.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
SUMMARY:
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Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
OAR–2015–0049, by one of the
following methods:
• www.regulations.gov: Follow the
on-line instructions for submitting
comments.
• Email: a-and-r-docket@epa.gov.
• Mail: Air and Radiation Docket and
Information Center, Environmental
Protection Agency, Mailcode: 28221T,
1200 Pennsylvania Ave. NW.,
Washington, DC 20460.
• Hand Delivery: EPA Docket Center,
EPA WJC West Building, Room 3334,
1301 Constitution Ave. NW.,
Washington, DC 20460. 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–2015–
0049. EPA’s policy is that all comments
received will be included in the public
docket without change and may be
made available online at
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 www.regulations.gov
or email. The www.regulations.gov Web
site 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 email
comment directly to EPA without going
through www.regulations.gov your email
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
NAICS 1
codes
Category
Industry
Industry
Industry
Industry
Industry
Industry
.......................................
.......................................
.......................................
.......................................
.......................................
.......................................
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about EPA’s public docket visit the EPA
Docket Center homepage at https://
www.epa.gov/epahome/dockets.htm.
For additional instructions on
submitting comments, go to Section I.B
of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: All documents in the docket
are listed in the 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
www.regulations.gov or in hard copy at
the Air and Radiation Docket and
Information Center, EPA/DC, EPA WJC
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 Docket is (202) 566–
1742.
FOR FURTHER INFORMATION CONTACT: Julia
MacAllister, Office of Transportation
and Air Quality, Assessment and
Standards Division, Environmental
Protection Agency, 2000 Traverwood
Drive, Ann Arbor, MI 48105; Telephone
number: 734–214–4131; Fax number:
734–214–4816; Email address:
macallister.julia@epa.gov, or the public
information line for the Office of
Transportation and Air Quality;
telephone number (734) 214–4333;
Email address: OTAQ@epa.gov.
SUPPLEMENTARY INFORMATION:
Why is EPA issuing a proposed rule?
EPA is proposing to take action to
clarify our regulations related to the
data sources used to establish the price
for cellulosic waiver credits (CWC). EPA
is also proposing to remove the CWC
prices from our regulations so as to
allow the prices to be established in a
more expeditious manner. The CWC
prices would instead be published on
EPA’s ‘‘Renewable Fuels: Regulations &
Standards’’ Web site (https://
www.epa.gov/otaq/fuels/
SIC 2 codes
324110
325193
325199
424690
424710
424720
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PO 00000
2911
2869
2869
5169
5171
5172
Frm 00022
renewablefuels/regulations.htm). EPA is
also proposing to reinsert regulatory
provisions in the renewable fuel
standard (RFS) program regulations that
were inadvertently overwritten by the
Quality Assurance Program (QAP) final
rule (79 FR 42078, July 18, 2014).
Clarifying the data sources used in
calculating the CWC price would
eliminate uncertainty regarding EPA’s
process in establishing the CWC prices,
would enable stakeholders to better
predict the annual CWC price before it
is established, and would allow EPA to
establish the CWC price in a more
timely manner. This action does not
change the formula used to establish the
CWC price (listed in our regulations at
40 CFR 80.1456(d)).
If we receive no relevant adverse
comment or hearing request on the
direct final rule, we will not take further
action on this proposed rule. If EPA
receives relevant adverse comment or a
hearing request, we will publish a
timely withdrawal in the Federal
Register of the portions of the direct
final rule on which adverse comment
was received. We will address all public
comments in any subsequent final rule
based on this proposed rule. 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.
The proposed changes to the
regulatory text are identical to those
presented in the direct final rule
published in the ‘‘Rules and
Regulations’’ section of today’s Federal
Register. For further information,
including a detailed explanation and
rationale for the proposal and the text of
the proposed regulatory revisions, see
the direct final rule published in the
‘‘Rules and Regulations’’ section of
today’s Federal Register.
Does this action apply to me?
Entities potentially affected by this
proposed rule are those involved with
the production, distribution, and sale of
transportation fuels, including gasoline
and diesel fuel or renewable fuels such
as ethanol and biodiesel. Potentially
regulated categories include:
Examples of potentially regulated entities
Petroleum refineries.
Ethyl alcohol manufacturing.
Other basic organic chemical manufacturing.
Chemical and allied products merchant wholesalers.
Petroleum bulk stations and terminals.
Petroleum and petroleum products merchant wholesalers.
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NAICS 1
codes
Category
Industry .......................................
1 North
SIC 2 codes
454319
5989
18181
Examples of potentially regulated entities
Other fuel dealers.
American Industry Classification System (NAICS).
Industrial Classification (SIC) system code.
2 Standard
This table is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
regulated by this proposed action. This
table lists the types of entities that EPA
is now aware could potentially be
regulated by this proposed action. Other
types of entities not listed in the table
could also be regulated. To determine
whether your activities would be
regulated 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 proposed action to
a particular entity, consult the person
listed in FOR FURTHER INFORMATION
CONTACT.
Outline of This Preamble
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I. Executive Summary
II. Clarifications Related to CWC Price
Calculation
III. CWC Price Calculations for 2014 and
2015
IV. Reinsertion of Inadvertently Overwritten
Language
V. What Should I Consider as I Prepare My
Comments for EPA?
VI. 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
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
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
J. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
VII. Statutory Authority
I. Executive Summary
For any calendar year for which the
projected volume of cellulosic biofuel
production is less than the applicable
volume of cellulosic biofuel set forth in
CAA 211(o)(2)(B)(III), EPA must reduce
the required volume of cellulosic
biofuel for that year to the projected
volume, and must provide obligated
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parties the opportunity to purchase
cellulosic waiver credits (CWC). The
price of these credits is determined
using a formula specified in the CAA.1
The cellulosic waiver credit price is the
greater of $0.25 or $3.00 minus the
wholesale price of gasoline, where both
the $0.25 and $3.00 are adjusted for
inflation. In this action we are
proposing to clarify the data sources we
use to calculate the inflation
adjustments used in this formula. This
would eliminate potential uncertainty
regarding EPA’s approach to
establishing the CWC prices. We are not
making any modifications to the
formula used to calculate the CWC
price.
Additionally, in order to provide
more certainty to the market through
timely publication of CWC prices, EPA
is also amending the procedure it uses
to announce CWC prices. To date, we
have established the prices by
rulemaking and published them in the
Code of Federal Regulations. To allow
more expeditious publication of these
prices, EPA is proposing to remove
references to CWC prices from the CFR.
The prices would instead be posted by
the Office of Transportation and Air
Quality within the Office of Air and
Radiation on EPA’s ‘‘Renewable Fuels:
Regulations & Standards’’ Web site
(https://www.epa.gov/otaq/fuels/
renewablefuels/regulations.htm).
We are also proposing minor
amendments to the regulations to
reinsert language applicable to biofuel
producers using Arundo donax or
Pennisetum purpureum as feedstock,
which was inadvertently overwritten by
the Quality Assurance Program (QAP)
final rule (79 FR 42078, July 18, 2014),
and to make minor conforming changes
to the numbering of other regulatory
provisions.
II. Clarifications Related to CWC Price
Calculation
EPA is proposing to clarify sections of
the regulations related to the CWC price
calculation. These proposed changes are
consistent with the CWC price formula
set forth in the statute, and more
specifically, with the statutory direction
to adjust certain terms in the formula for
inflation. We believe these proposed
regulations would more clearly
articulate the data sources that EPA uses
in calculating the CWC price for each
year.
The regulations that outline the
process used by EPA to calculate the
CWC price are set forth in 40 CFR
80.1456(d). The regulations currently
state that ‘‘the wholesale price of
gasoline used in the CWC calculation
will be calculated by averaging the most
recent twelve monthly values for U.S.
Total Gasoline Bulk Sales (Price) by
Refiners as provided by the Energy
Information Administration (EIA) that
are available as of September 30 of the
year preceding the compliance
period.’’ 2 In practice, given the
publication schedule for the referenced
EIA publication, this means that EPA
calculates the wholesale price of
gasoline using data from the 12 months
prior to July of the year preceding the
compliance period (i.e., July 2011–June
2012 data for the 2013 CWC price). We
are not proposing to make any
modifications to this portion of the
regulations.
The regulations also currently state
that the inflation adjustment used in
calculating the CWC price will be
calculated at the time EPA sets the
cellulosic biofuel standard.3 In an effort
to provide certainty to the market in
relation to the CWC price as soon as
reasonably practical, EPA believes it
would be preferable to announce the
CWC price as soon as the relevant data
on the wholesale price of gasoline is
available. Therefore, we are proposing
to calculate the inflation adjustment
using data from June of the year
preceding the compliance period. We
believe this is appropriate as it is the
most recent month within the time
period over which we calculate the
average wholesale price of gasoline. We
are also proposing to eliminate the
regulatory references to CWC prices.
Instead we intend to announce the CWC
price in a notice on our ‘‘Renewable
Fuels: Regulations & Standards’’ Web
site by November of the year preceding
the compliance period. Consistent with
previous CWC calculations, EPA would
continue to base the inflation
adjustment on the Consumer Price
Index for All Urban Consumers (CPI–U):
U.S. City Average, Unadjusted Index for
2 40
1 CAA
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CFR 80.1456(d)(2).
CFR 80.1456(d)(3).
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All Items expenditure category as
provided by the Bureau of Labor and
Statistics. We are proposing to amend
our regulations in this action to clarify
that we are using the unadjusted price
index, rather than the seasonally
adjusted price index, to calculate the
inflation adjustment. We believe this is
appropriate as the unadjusted index
most accurately reflects the prices
consumers actually pay and do not
change, whereas the seasonally adjusted
indexes are subject to revision for up to
five years after their release.4 We are
also clarifying that we are using ‘‘US
City Average’’ data, as opposed to data
for geographic subsets of the country.
This is appropriate in light of the
nation-wide applicability of the RFS
program. Both of these changes simply
clarify EPA’s current practice, and are
designed to promote regulatory certainty
and understanding by stakeholders.
We are also proposing to amend the
section of our regulations where the
CWC price for previous years is listed.5
EPA has included the prices for 2010,
2011, 2012, and 2013 CWCs in our
regulations. Promulgating prices in
regulations, however, requires EPA to
undertake a rulemaking, which we
believe may unnecessarily delay the
announcement of the CWC price.
Furthermore, we believe the CWC price
need not be established by rulemaking,
for the following reasons. First, the
formula and all data sources for the
CWC price are specified in our
regulations, so the actual price
calculation is a procedural action that
will not benefit from a notice and
comment rulemaking. Second, CWCs
are purchased from EPA, and EPA can
ensure that the correct price is paid for
them. Finally, the publication of the
CWC price in the CFR is not necessary
for informational purposes as EPA
intends to promptly post the CWC
prices on our Web site.
Therefore, in this action EPA is
proposing to delete the sections of our
regulations containing the CWC prices
for previous years and is instead
including a statement in the regulations
indicating that the CWC price for each
year will be posted on EPA’s
‘‘Renewable Fuels: Regulations &
Standards’’ Web site (https://
4 For more information on Seasonally Adjusted
vs. Unadjusted Indexes see https://www.bls.gov/cpi/
cpisapage.htm.
5 40 CFR 80.1405(d).
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www.epa.gov/otaq/fuels/
renewablefuels/regulations.htm).
Adopting this approach would allow
EPA to announce the CWC prices at the
earliest opportunity. We believe this
would benefit both cellulosic biofuel
producers and obligated parties. EPA
would post the CWC prices for 2013,
2014, and 2015 on our Web site
following the effective date of this rule.
III. CWC Price Calculations for 2014
and 2015
To illustrate the derivation of CWC
prices pursuant to the statutory formula,
and with the data sources specified in
this proposed rule, we explain in this
section the derivation of CWC prices for
2014 and 2015.6 EPA determined the
average wholesale (refinery gate) price
of gasoline using the monthly average
prices for the 12 months prior to July of
the year preceding each compliance
period. In this calculation EPA uses the
U.S. Total Gasoline Bulk Sales Price by
Refiners (Dollars per Gallon) as reported
by the U.S. Energy Information
Administration (EIA). The data are
shown below in Table 1 and Table 2 for
the calculations for 2014 and 2015,
respectively, and can be found at:
(https://www.eia.gov/dnav/pet/hist/
LeafHandler.ashx?n=PET&s=EMA_
EPM0_PBR_NUS_DPG&f=M).
TABLE 1—WHOLESALE GASOLINE
PRICES FOR 2014 CWC CALCULATION—Continued
Month
June 2013 .............................
Average price
in $
2.817
TABLE 2—WHOLESALE GASOLINE
PRICES FOR 2015 CWC CALCULATION
Month
July 2013 ..............................
August 2013 .........................
September 2013 ...................
October 2013 ........................
November 2013 ....................
December 2013 ....................
January 2014 ........................
February 2014 ......................
March 2014 ...........................
April 2014 .............................
May 2014 ..............................
June 2014 .............................
Average price
in $
2.879
2.916
2.831
2.610
2.496
2.551
2.598
2.650
2.763
2.829
2.853
2.924
The average monthly price in dollars
for the calculation of the 2014 CWC
price is 2.823. The average monthly
price in dollars for the calculation of the
2015 CWC price is 2.742.
The CAA requires that EPA adjust for
inflation the comparison values of
twenty-five cents ($0.25) and three
TABLE 1—WHOLESALE GASOLINE
PRICES FOR 2014 CWC CALCULATION dollars ($3.00) in the CWC price
formula. EPA must compare the inflated
Average price twenty-five cent value with the amount
Month
the inflated three dollar value exceeds
in $
the average wholesale price of gasoline.
July 2012 ..............................
2.703 EPA is required to use the greater of the
August 2012 .........................
2.961 two values as the price for the cellulosic
September 2012 ...................
3.133 biofuel waiver credits.
October 2012 ........................
2.922
EPA evaluated inflation by using the
November 2012 ....................
2.622
December 2012 ....................
2.554 Unadjusted Index values from the
January 2013 ........................
2.668 Consumer Price Index for All Urban
February 2013 ......................
2.892 Consumers (CPI–U): U.S. City Average,
March 2013 ...........................
2.963 for the All Items expenditure category as
April 2013 .............................
2.822 provided by the Bureau of Labor and
May 2013 ..............................
2.824 Statistics, for the months of January
2009 (the first comparable value after
6 The calculations for the 2013 CWC were
2008) and June 2013 and June 2014, as
explained in a memo to the docket for our
discussed in Section II of this preamble.
rulemaking establishing the 2013 standards (EPA–
These unadjusted indexes are used to
HQ–OAR–2012–0546–0134). The 2013 CWC price
was calculated in accordance with the methodology calculate an Inflation Factor for each
and data sources described in this rule, with one
year, as shown in Table 4 below.
minor difference. To calculate the Inflation Factor
Finally, we compare $0.25 (inflation
the August 2012 Index (230.037) was used rather
adjusted) to $3.00 (inflation adjusted)
than the June 2012 Index (229.815). Using the June
2012 Index in place of the August 2012 Index does
minus the wholesale price of gasoline
not change the CWC waiver credit price for 2013
for each year. The greater of these values
of $0.42. EPA will therefore confirm the 2013 CWC
is the price for the cellulosic waiver
price in the announcement on our Web site
credits.
following the effective date of this rule.
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TABLE 3—INFLATION ADJUSTMENTS
Unadjusted
index
Month
January 2009 .............................................
June 2013 ..................................................
June 2014 ..................................................
211.143
233.504
238.343
Source
https://www.bls.gov/cpi/cpid0901.pdf (Table 1).
https://www.bls.gov/cpi/cpid1306.pdf (Table 1).
https://www.bls.gov/cpi/cpid1406.pdf (Table 1).
TABLE 4—INFLATION FACTORS
Months
Equation
Inflation factor
Jan. 2009–June 2013 ..............................................................
Jan. 2009–June 2014 ..............................................................
1+(233.504¥211.143)/211.143 ..............................................
1+(238.343¥211.143)/211.143 ..............................................
1.106
1.129
TABLE 5—CELLULOSIC WAIVER CREDIT PRICE CALCULATIONS
Year
$0.25 (Inflation adjusted)
$3—Wholesale price of gasoline
(Inflation adjusted)
2014 ...............
2015 ...............
$0.25*1.106 = $0.28 ........................................
$0.25*1.129 = $0.28 ........................................
($3.00*1.106)¥$2.823 = $0.4947 ......................................
($3.00*1.129)¥$2.742 = $0.6445 ......................................
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
As shown in Table 5, using the data
sources for the inflation adjustment that
are specified in this proposed rule
results in a CWC price of $0.49 for 2014
and $0.64 for 2015. These prices, along
with the CWC price for 2013 ($0.42)
would be posted on EPA’s Web site after
the effective date of a final rule.
EPA notes that in this action we are
not making a determination regarding
whether CWCs will actually be offered.
As required by statute, CWCs are only
made available for sale if EPA lowers
the required cellulosic biofuel volume
requirement below the applicable
volume set forth in the Act. EPA will
decide whether or not it will lower the
required cellulosic biofuel volumes in
future rules establishing the 2014 and
2015 cellulosic biofuel percentage
standards. At that time EPA will
determine if CWCs will be sold. If so,
they will be sold at the prices indicated
above. However EPA notes that it has
offered CWCs for every year since 2010,
the first year for which a separate
cellulosic biofuel standard was
established. Given the anticipated
shortfall in cellulosic biofuel
production, as compared to statutory
volumes, in these years it is probable
that CWCs will be offered.
IV. Reinsertion of Inadvertently
Overwritten Language
In the RFS RIN Quality Assurance
Program final rule (79 FR 42078, July
18, 2014), we moved the previous 40
CFR 80.1426(f)(12) (regarding process
heat produced from biogas) to 40 CFR
80.1426(f)(14) as we had proposed on
February 21, 2013 (78 FR 12158). When
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17:20 Apr 02, 2015
Jkt 235001
we moved 40 CFR 80.1426(f)(12) to 40
CFR 80.1426(f)(14), however, we
inadvertently overwrote the previous 40
CFR 80.1426(f)(14) (regarding renewable
fuel produced from giant reed (Arundo
donax) or napier grass (Pennisetum
purpureum)) that had been finalized in
a separate final rule which was
published on July 11, 2013 (78 FR
41703). The new 40 CFR 80.1426(f)(12)
finalized in the RFS RIN Quality
Assurance Program final rule dealt with
additional requirements for producers
and importers when generating RINs. In
today’s action, we are proposing to
amend the regulations to undo our
inadvertent elimination of the
regulatory provisions related to giant
reed and napier grass. Specifically, we
are proposing: (1) re-inserting the
inadvertently eliminated language as 40
CFR 80.1426(f)(14) (see 78 FR 41714,
July 11, 2013); (2) moving the current 40
CFR 80.1426(f)(14) (process heat
produced from biogas) back to 40 CFR
80.1426(f)(12), where it existed prior to
the RFS RIN Quality Assurance Program
final rule (see 75 FR 79977, December
21, 2010); and (3) moving the current 40
CFR 80.1426(f)(12) to a new 40 CFR
80.1426(f)(17).
V. What should I consider as I prepare
my comments for EPA?
A. Submitting CBI
Do not submit confidential business
information (CBI) to EPA through
www.regulations.gov or email. 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
PO 00000
Frm 00025
Fmt 4702
Sfmt 4702
CWC price (Larger of the two values, rounded to
the nearest cent)
$0.49
$0.64
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.
E:\FR\FM\03APP1.SGM
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18184
Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules
• Make sure to submit your
comments by the comment period
deadline identified.
without the exercise of any policy
discretion by the EPA.
C. Docket Copying Costs
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.
E. Executive Order 13132: Federalism
You may be charged a reasonable fee
for photocopying docket materials, as
provided in 40 CFR part 2.
VI. Statutory and Executive Order
Reviews
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
This action does not impose an
information collection burden under the
PRA. The changes made to the
regulations as a result of this action
impose no new or different reporting
requirements on regulated parties.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
C. Regulatory Flexibility Act
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, the impact of concern is
any significant adverse economic
impact on small entities. An agency may
certify that a rule will not have a
significant economic impact on a
substantial number of small entities if
the rule relieves regulatory burden, has
no net burden or otherwise has a
positive economic effect on the small
entities subject to the rule. This action
clarifies the data sources and
methodology used by EPA to establish
the CWC price, establishes these prices
for 2014 and 2015, and reinserts
inadvertently overwritten regulatory
language. The impacts of the RFS2
program on small entities were already
addressed in the RFS2 final rule
promulgated on March 26, 2010 (75 FR
14670), and this rule will not impose
any additional requirements on small
entities beyond those already analyzed.
We have therefore concluded that this
action will have no net regulatory
burden for all directly regulated small
entities.
D. Unfunded Mandates Reform Act
This action does not contain any
unfunded mandate as described in
UMRA, 2 U.S.C. 1531–1538, and does
not significantly or uniquely affect small
governments. This action implements
mandate(s) specifically and explicitly
set forth in Clean Air Act section 211(o)
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17:20 Apr 02, 2015
Jkt 235001
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 rule will be
implemented at the Federal level and
potentially impacts gasoline, diesel, and
renewable fuel producers, importers,
distributors, and marketers. Tribal
governments would be affected only to
the extent they purchase and use
regulated fuels. Thus, Executive Order
13175 does not apply to this action.
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
The EPA interprets EO 13045 as
applying only to those regulatory
actions that concern environmental
health or safety risks that the 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 establish an
environmental standard intended to
mitigate health or safety risks and
because it implements specific
standards established by Congress in
statutes (section 211(o) of the Clean Air
Act).
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
This rulemaking does not involve
technical standards.
J. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
This proposed rule is a technical
correction and does not concern an
PO 00000
Frm 00026
Fmt 4702
Sfmt 4702
environmental health or safety risk.
Therefore, Executive Order 12898 does
not apply.
VII. Statutory Authority
Statutory authority for this proposed
action comes from section 211 of the
Clean Air Act, 42 U.S.C. 7545.
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, Petroleum, Renewable fuel.
Dated: March 24, 2015.
Gina McCarthy,
Administrator.
[FR Doc. 2015–07478 Filed 4–2–15; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 81
[EPA–R09–OAR–2008–0467; FRL–9925–57–
Region 9]
Designation of Areas for Air Quality
Planning Purposes; California; San
Joaquin Valley, South Coast Air Basin,
Coachella Valley, and Sacramento
Metro Ozone Nonattainment Areas;
Reclassification
Environmental Protection
Agency (EPA).
ACTION: Withdrawal of proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is withdrawing a
proposed action to reclassify the Indian
country pertaining to the Pechanga
˜
Band of Luiseno Mission Indians
(Pechanga Reservation) from ‘‘Severe17’’ to ‘‘Extreme’’ for the 1997 8-hour
ozone national ambient air quality
standard.
SUMMARY:
The proposed rule published on
August 27, 2009 (74 FR 43654) is
withdrawn with respect to the Pechanga
Reservation on April 3, 2015.
FOR FURTHER INFORMATION CONTACT: Ken
Israels, Grants and Program Integration
Office (AIR–8), U.S. Environmental
Protection Agency, Region IX, (415)
947–4102, israels.ken@epa.gov.
SUPPLEMENTARY INFORMATION: On August
27, 2009 (74 FR 43654), the EPA
published a proposed rule to grant
requests by the State of California to
reclassify four nonattainment areas for
the 1997 8-hour ozone national ambient
air quality standard (‘‘standard’’) and to
reclassify Indian country in keeping
with the classifications of
nonattainment areas within which they
DATES:
E:\FR\FM\03APP1.SGM
03APP1
]]>Agencies
[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Proposed Rules]
[Pages 18179-18184]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07478]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2015-0049; FRL-9924-70-OAR]
RIN 2060-AS48
Regulation of Fuels and Fuel Additives: Cellulosic Waiver Credit
Price and Minor Amendments to Renewable Fuel Standard Regulations
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is proposing to
clarify our regulations related to the data sources used to establish
the cellulosic waiver credit (CWC) price. We are also proposing to
remove references to CWC prices from the renewable fuel standard
regulations, and instead intend to post the prices on EPA's Web site.
This proposed rule also indicates what the CWC prices for 2014 and 2015
would be using the data sources and methodology contained in the rule;
however these prices will not be established until they are posted on
our Web site following the effective date of the rule. In addition, we
are proposing minor amendments to the renewable fuel standard program
regulations to reinsert sections inadvertently overwritten by the
Quality Assurance Program final rule published on July 18, 2014. In the
``Rules and Regulations'' section of this Federal Register, we are
making these same amendments as a direct final rule. If we receive no
adverse comment, the direct final rule will go into effect and we will
not take further action on this proposed rule.
DATES: A request for a public hearing must be received by April 20,
2015. If a public hearing request is received, EPA will publish a
notice in the Federal Register indicating the time and place for the
hearing. If a public hearing is held, written comments must be received
within 30 days after the date of the hearing. If no public hearing is
held then comments must be received on or before May 4, 2015.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
[[Page 18180]]
OAR-2015-0049, by one of the following methods:
www.regulations.gov: Follow the on-line instructions for
submitting comments.
Email: a-and-r-docket@epa.gov.
Mail: Air and Radiation Docket and Information Center,
Environmental Protection Agency, Mailcode: 28221T, 1200 Pennsylvania
Ave. NW., Washington, DC 20460.
Hand Delivery: EPA Docket Center, EPA WJC West Building,
Room 3334, 1301 Constitution Ave. NW., Washington, DC 20460. 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-
2015-0049. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
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 www.regulations.gov or email. The
www.regulations.gov Web site 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 email comment
directly to EPA without going through www.regulations.gov your email
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 https://www.epa.gov/epahome/dockets.htm. For additional
instructions on submitting comments, go to Section I.B of the
SUPPLEMENTARY INFORMATION section of this document.
Docket: All documents in the docket are listed in the
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 www.regulations.gov or in hard copy at the Air and Radiation Docket
and Information Center, EPA/DC, EPA WJC 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 Docket is (202) 566-
1742.
FOR FURTHER INFORMATION CONTACT: Julia MacAllister, Office of
Transportation and Air Quality, Assessment and Standards Division,
Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI
48105; Telephone number: 734-214-4131; Fax number: 734-214-4816; Email
address: macallister.julia@epa.gov, or the public information line for
the Office of Transportation and Air Quality; telephone number (734)
214-4333; Email address: OTAQ@epa.gov.
SUPPLEMENTARY INFORMATION:
Why is EPA issuing a proposed rule?
EPA is proposing to take action to clarify our regulations related
to the data sources used to establish the price for cellulosic waiver
credits (CWC). EPA is also proposing to remove the CWC prices from our
regulations so as to allow the prices to be established in a more
expeditious manner. The CWC prices would instead be published on EPA's
``Renewable Fuels: Regulations & Standards'' Web site (https://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm). EPA is also
proposing to reinsert regulatory provisions in the renewable fuel
standard (RFS) program regulations that were inadvertently overwritten
by the Quality Assurance Program (QAP) final rule (79 FR 42078, July
18, 2014).
Clarifying the data sources used in calculating the CWC price would
eliminate uncertainty regarding EPA's process in establishing the CWC
prices, would enable stakeholders to better predict the annual CWC
price before it is established, and would allow EPA to establish the
CWC price in a more timely manner. This action does not change the
formula used to establish the CWC price (listed in our regulations at
40 CFR 80.1456(d)).
If we receive no relevant adverse comment or hearing request on the
direct final rule, we will not take further action on this proposed
rule. If EPA receives relevant adverse comment or a hearing request, we
will publish a timely withdrawal in the Federal Register of the
portions of the direct final rule on which adverse comment was
received. We will address all public comments in any subsequent final
rule based on this proposed rule. 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.
The proposed changes to the regulatory text are identical to those
presented in the direct final rule published in the ``Rules and
Regulations'' section of today's Federal Register. For further
information, including a detailed explanation and rationale for the
proposal and the text of the proposed regulatory revisions, see the
direct final rule published in the ``Rules and Regulations'' section of
today's Federal Register.
Does this action apply to me?
Entities potentially affected by this proposed rule are those
involved with the production, distribution, and sale of transportation
fuels, including gasoline and diesel fuel or renewable fuels such as
ethanol and biodiesel. Potentially regulated categories include:
----------------------------------------------------------------------------------------------------------------
NAICS \1\ SIC \2\ Examples of potentially regulated
Category codes codes entities
----------------------------------------------------------------------------------------------------------------
Industry...................................... 324110 2911 Petroleum refineries.
Industry...................................... 325193 2869 Ethyl alcohol manufacturing.
Industry...................................... 325199 2869 Other basic organic chemical
manufacturing.
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.
[[Page 18181]]
Industry...................................... 454319 5989 Other fuel dealers.
----------------------------------------------------------------------------------------------------------------
\1\ North American Industry Classification System (NAICS).
\2\ 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
proposed action. This table lists the types of entities that EPA is now
aware could potentially be regulated by this proposed action. Other
types of entities not listed in the table could also be regulated. To
determine whether your activities would be regulated 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
proposed action to a particular entity, consult the person listed in
FOR FURTHER INFORMATION CONTACT.
Outline of This Preamble
I. Executive Summary
II. Clarifications Related to CWC Price Calculation
III. CWC Price Calculations for 2014 and 2015
IV. Reinsertion of Inadvertently Overwritten Language
V. What Should I Consider as I Prepare My Comments for EPA?
VI. 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
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
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
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
VII. Statutory Authority
I. Executive Summary
For any calendar year for which the projected volume of cellulosic
biofuel production is less than the applicable volume of cellulosic
biofuel set forth in CAA 211(o)(2)(B)(III), EPA must reduce the
required volume of cellulosic biofuel for that year to the projected
volume, and must provide obligated parties the opportunity to purchase
cellulosic waiver credits (CWC). The price of these credits is
determined using a formula specified in the CAA.\1\ The cellulosic
waiver credit price is the greater of $0.25 or $3.00 minus the
wholesale price of gasoline, where both the $0.25 and $3.00 are
adjusted for inflation. In this action we are proposing to clarify the
data sources we use to calculate the inflation adjustments used in this
formula. This would eliminate potential uncertainty regarding EPA's
approach to establishing the CWC prices. We are not making any
modifications to the formula used to calculate the CWC price.
---------------------------------------------------------------------------
\1\ CAA 211(o)(7)(D)(ii).
---------------------------------------------------------------------------
Additionally, in order to provide more certainty to the market
through timely publication of CWC prices, EPA is also amending the
procedure it uses to announce CWC prices. To date, we have established
the prices by rulemaking and published them in the Code of Federal
Regulations. To allow more expeditious publication of these prices, EPA
is proposing to remove references to CWC prices from the CFR. The
prices would instead be posted by the Office of Transportation and Air
Quality within the Office of Air and Radiation on EPA's ``Renewable
Fuels: Regulations & Standards'' Web site (https://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm).
We are also proposing minor amendments to the regulations to
reinsert language applicable to biofuel producers using Arundo donax or
Pennisetum purpureum as feedstock, which was inadvertently overwritten
by the Quality Assurance Program (QAP) final rule (79 FR 42078, July
18, 2014), and to make minor conforming changes to the numbering of
other regulatory provisions.
II. Clarifications Related to CWC Price Calculation
EPA is proposing to clarify sections of the regulations related to
the CWC price calculation. These proposed changes are consistent with
the CWC price formula set forth in the statute, and more specifically,
with the statutory direction to adjust certain terms in the formula for
inflation. We believe these proposed regulations would more clearly
articulate the data sources that EPA uses in calculating the CWC price
for each year.
The regulations that outline the process used by EPA to calculate
the CWC price are set forth in 40 CFR 80.1456(d). The regulations
currently state that ``the wholesale price of gasoline used in the CWC
calculation will be calculated by averaging the most recent twelve
monthly values for U.S. Total Gasoline Bulk Sales (Price) by Refiners
as provided by the Energy Information Administration (EIA) that are
available as of September 30 of the year preceding the compliance
period.'' \2\ In practice, given the publication schedule for the
referenced EIA publication, this means that EPA calculates the
wholesale price of gasoline using data from the 12 months prior to July
of the year preceding the compliance period (i.e., July 2011-June 2012
data for the 2013 CWC price). We are not proposing to make any
modifications to this portion of the regulations.
---------------------------------------------------------------------------
\2\ 40 CFR 80.1456(d)(2).
---------------------------------------------------------------------------
The regulations also currently state that the inflation adjustment
used in calculating the CWC price will be calculated at the time EPA
sets the cellulosic biofuel standard.\3\ In an effort to provide
certainty to the market in relation to the CWC price as soon as
reasonably practical, EPA believes it would be preferable to announce
the CWC price as soon as the relevant data on the wholesale price of
gasoline is available. Therefore, we are proposing to calculate the
inflation adjustment using data from June of the year preceding the
compliance period. We believe this is appropriate as it is the most
recent month within the time period over which we calculate the average
wholesale price of gasoline. We are also proposing to eliminate the
regulatory references to CWC prices. Instead we intend to announce the
CWC price in a notice on our ``Renewable Fuels: Regulations &
Standards'' Web site by November of the year preceding the compliance
period. Consistent with previous CWC calculations, EPA would continue
to base the inflation adjustment on the Consumer Price Index for All
Urban Consumers (CPI-U): U.S. City Average, Unadjusted Index for
[[Page 18182]]
All Items expenditure category as provided by the Bureau of Labor and
Statistics. We are proposing to amend our regulations in this action to
clarify that we are using the unadjusted price index, rather than the
seasonally adjusted price index, to calculate the inflation adjustment.
We believe this is appropriate as the unadjusted index most accurately
reflects the prices consumers actually pay and do not change, whereas
the seasonally adjusted indexes are subject to revision for up to five
years after their release.\4\ We are also clarifying that we are using
``US City Average'' data, as opposed to data for geographic subsets of
the country. This is appropriate in light of the nation-wide
applicability of the RFS program. Both of these changes simply clarify
EPA's current practice, and are designed to promote regulatory
certainty and understanding by stakeholders.
---------------------------------------------------------------------------
\3\ 40 CFR 80.1456(d)(3).
\4\ For more information on Seasonally Adjusted vs. Unadjusted
Indexes see https://www.bls.gov/cpi/cpisapage.htm.
---------------------------------------------------------------------------
We are also proposing to amend the section of our regulations where
the CWC price for previous years is listed.\5\ EPA has included the
prices for 2010, 2011, 2012, and 2013 CWCs in our regulations.
Promulgating prices in regulations, however, requires EPA to undertake
a rulemaking, which we believe may unnecessarily delay the announcement
of the CWC price. Furthermore, we believe the CWC price need not be
established by rulemaking, for the following reasons. First, the
formula and all data sources for the CWC price are specified in our
regulations, so the actual price calculation is a procedural action
that will not benefit from a notice and comment rulemaking. Second,
CWCs are purchased from EPA, and EPA can ensure that the correct price
is paid for them. Finally, the publication of the CWC price in the CFR
is not necessary for informational purposes as EPA intends to promptly
post the CWC prices on our Web site.
---------------------------------------------------------------------------
\5\ 40 CFR 80.1405(d).
---------------------------------------------------------------------------
Therefore, in this action EPA is proposing to delete the sections
of our regulations containing the CWC prices for previous years and is
instead including a statement in the regulations indicating that the
CWC price for each year will be posted on EPA's ``Renewable Fuels:
Regulations & Standards'' Web site (https://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm). Adopting this approach would allow EPA
to announce the CWC prices at the earliest opportunity. We believe this
would benefit both cellulosic biofuel producers and obligated parties.
EPA would post the CWC prices for 2013, 2014, and 2015 on our Web site
following the effective date of this rule.
III. CWC Price Calculations for 2014 and 2015
To illustrate the derivation of CWC prices pursuant to the
statutory formula, and with the data sources specified in this proposed
rule, we explain in this section the derivation of CWC prices for 2014
and 2015.\6\ EPA determined the average wholesale (refinery gate) price
of gasoline using the monthly average prices for the 12 months prior to
July of the year preceding each compliance period. In this calculation
EPA uses the U.S. Total Gasoline Bulk Sales Price by Refiners (Dollars
per Gallon) as reported by the U.S. Energy Information Administration
(EIA). The data are shown below in Table 1 and Table 2 for the
calculations for 2014 and 2015, respectively, and can be found at:
(https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMA_EPM0_PBR_NUS_DPG&f=M).
---------------------------------------------------------------------------
\6\ The calculations for the 2013 CWC were explained in a memo
to the docket for our rulemaking establishing the 2013 standards
(EPA-HQ-OAR-2012-0546-0134). The 2013 CWC price was calculated in
accordance with the methodology and data sources described in this
rule, with one minor difference. To calculate the Inflation Factor
the August 2012 Index (230.037) was used rather than the June 2012
Index (229.815). Using the June 2012 Index in place of the August
2012 Index does not change the CWC waiver credit price for 2013 of
$0.42. EPA will therefore confirm the 2013 CWC price in the
announcement on our Web site following the effective date of this
rule.
Table 1--Wholesale Gasoline Prices for 2014 CWC Calculation
------------------------------------------------------------------------
Average price
Month in $
------------------------------------------------------------------------
July 2012............................................... 2.703
August 2012............................................. 2.961
September 2012.......................................... 3.133
October 2012............................................ 2.922
November 2012........................................... 2.622
December 2012........................................... 2.554
January 2013............................................ 2.668
February 2013........................................... 2.892
March 2013.............................................. 2.963
April 2013.............................................. 2.822
May 2013................................................ 2.824
June 2013............................................... 2.817
------------------------------------------------------------------------
Table 2--Wholesale Gasoline Prices for 2015 CWC Calculation
------------------------------------------------------------------------
Average price
Month in $
------------------------------------------------------------------------
July 2013............................................... 2.879
August 2013............................................. 2.916
September 2013.......................................... 2.831
October 2013............................................ 2.610
November 2013........................................... 2.496
December 2013........................................... 2.551
January 2014............................................ 2.598
February 2014........................................... 2.650
March 2014.............................................. 2.763
April 2014.............................................. 2.829
May 2014................................................ 2.853
June 2014............................................... 2.924
------------------------------------------------------------------------
The average monthly price in dollars for the calculation of the
2014 CWC price is 2.823. The average monthly price in dollars for the
calculation of the 2015 CWC price is 2.742.
The CAA requires that EPA adjust for inflation the comparison
values of twenty-five cents ($0.25) and three dollars ($3.00) in the
CWC price formula. EPA must compare the inflated twenty-five cent value
with the amount the inflated three dollar value exceeds the average
wholesale price of gasoline. EPA is required to use the greater of the
two values as the price for the cellulosic biofuel waiver credits.
EPA evaluated inflation by using the Unadjusted Index values from
the Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, for the All Items expenditure category as provided by the
Bureau of Labor and Statistics, for the months of January 2009 (the
first comparable value after 2008) and June 2013 and June 2014, as
discussed in Section II of this preamble. These unadjusted indexes are
used to calculate an Inflation Factor for each year, as shown in Table
4 below. Finally, we compare $0.25 (inflation adjusted) to $3.00
(inflation adjusted) minus the wholesale price of gasoline for each
year. The greater of these values is the price for the cellulosic
waiver credits.
[[Page 18183]]
Table 3--Inflation Adjustments
------------------------------------------------------------------------
Unadjusted
Month index Source
------------------------------------------------------------------------
January 2009..................... 211.143 https://www.bls.gov/cpi/cpid0901.pdf (Table 1).
June 2013........................ 233.504 https://www.bls.gov/cpi/cpid1306.pdf (Table 1).
June 2014........................ 238.343 https://www.bls.gov/cpi/cpid1406.pdf (Table 1).
------------------------------------------------------------------------
Table 4--Inflation Factors
------------------------------------------------------------------------
Months Equation Inflation factor
------------------------------------------------------------------------
Jan. 2009-June 2013........... 1+(233.504-211.143)/ 1.106
211.143.
Jan. 2009-June 2014........... 1+(238.343-211.143)/ 1.129
211.143.
------------------------------------------------------------------------
Table 5--Cellulosic Waiver Credit Price Calculations
----------------------------------------------------------------------------------------------------------------
CWC price (Larger
$3--Wholesale price of of the two
Year $0.25 (Inflation gasoline (Inflation values, rounded
adjusted) adjusted) to the nearest
cent)
----------------------------------------------------------------------------------------------------------------
2014................................. $0.25*1.106 = $0.28..... ($3.00*1.106)-$2.823 = $0.49
$0.4947.
2015................................. $0.25*1.129 = $0.28..... ($3.00*1.129)-$2.742 = $0.64
$0.6445.
----------------------------------------------------------------------------------------------------------------
As shown in Table 5, using the data sources for the inflation
adjustment that are specified in this proposed rule results in a CWC
price of $0.49 for 2014 and $0.64 for 2015. These prices, along with
the CWC price for 2013 ($0.42) would be posted on EPA's Web site after
the effective date of a final rule.
EPA notes that in this action we are not making a determination
regarding whether CWCs will actually be offered. As required by
statute, CWCs are only made available for sale if EPA lowers the
required cellulosic biofuel volume requirement below the applicable
volume set forth in the Act. EPA will decide whether or not it will
lower the required cellulosic biofuel volumes in future rules
establishing the 2014 and 2015 cellulosic biofuel percentage standards.
At that time EPA will determine if CWCs will be sold. If so, they will
be sold at the prices indicated above. However EPA notes that it has
offered CWCs for every year since 2010, the first year for which a
separate cellulosic biofuel standard was established. Given the
anticipated shortfall in cellulosic biofuel production, as compared to
statutory volumes, in these years it is probable that CWCs will be
offered.
IV. Reinsertion of Inadvertently Overwritten Language
In the RFS RIN Quality Assurance Program final rule (79 FR 42078,
July 18, 2014), we moved the previous 40 CFR 80.1426(f)(12) (regarding
process heat produced from biogas) to 40 CFR 80.1426(f)(14) as we had
proposed on February 21, 2013 (78 FR 12158). When we moved 40 CFR
80.1426(f)(12) to 40 CFR 80.1426(f)(14), however, we inadvertently
overwrote the previous 40 CFR 80.1426(f)(14) (regarding renewable fuel
produced from giant reed (Arundo donax) or napier grass (Pennisetum
purpureum)) that had been finalized in a separate final rule which was
published on July 11, 2013 (78 FR 41703). The new 40 CFR 80.1426(f)(12)
finalized in the RFS RIN Quality Assurance Program final rule dealt
with additional requirements for producers and importers when
generating RINs. In today's action, we are proposing to amend the
regulations to undo our inadvertent elimination of the regulatory
provisions related to giant reed and napier grass. Specifically, we are
proposing: (1) re-inserting the inadvertently eliminated language as 40
CFR 80.1426(f)(14) (see 78 FR 41714, July 11, 2013); (2) moving the
current 40 CFR 80.1426(f)(14) (process heat produced from biogas) back
to 40 CFR 80.1426(f)(12), where it existed prior to the RFS RIN Quality
Assurance Program final rule (see 75 FR 79977, December 21, 2010); and
(3) moving the current 40 CFR 80.1426(f)(12) to a new 40 CFR
80.1426(f)(17).
V. What should I consider as I prepare my comments for EPA?
A. Submitting CBI
Do not submit confidential business information (CBI) to EPA
through www.regulations.gov or email. 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.
[[Page 18184]]
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.
VI. Statutory and Executive Order Reviews
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
This action does not impose an information collection burden under
the PRA. The changes made to the regulations as a result of this action
impose no new or different reporting requirements on regulated parties.
C. Regulatory Flexibility Act
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, the impact of concern is any significant
adverse economic impact on small entities. An agency may certify that a
rule will not have a significant economic impact on a substantial
number of small entities if the rule relieves regulatory burden, has no
net burden or otherwise has a positive economic effect on the small
entities subject to the rule. This action clarifies the data sources
and methodology used by EPA to establish the CWC price, establishes
these prices for 2014 and 2015, and reinserts inadvertently overwritten
regulatory language. The impacts of the RFS2 program on small entities
were already addressed in the RFS2 final rule promulgated on March 26,
2010 (75 FR 14670), and this rule will not impose any additional
requirements on small entities beyond those already analyzed. We have
therefore concluded that this action will have no net regulatory burden
for all directly regulated small entities.
D. Unfunded Mandates Reform Act
This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. This action implements mandate(s) specifically and
explicitly set forth in Clean Air Act section 211(o) without the
exercise of any policy discretion by the EPA.
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 rule will be implemented at the Federal
level and potentially impacts gasoline, diesel, and renewable fuel
producers, importers, distributors, and marketers. Tribal governments
would be affected only to the extent they purchase and use regulated
fuels. Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets EO 13045 as applying only to those regulatory
actions that concern environmental health or safety risks that the 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 establish an environmental standard intended to
mitigate health or safety risks and because it implements specific
standards established by Congress in statutes (section 211(o) of the
Clean Air Act).
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
This rulemaking does not involve technical standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
This proposed rule is a technical correction and does not concern
an environmental health or safety risk. Therefore, Executive Order
12898 does not apply.
VII. Statutory Authority
Statutory authority for this proposed action comes from section 211
of the Clean Air Act, 42 U.S.C. 7545.
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, Petroleum, Renewable fuel.
Dated: March 24, 2015.
Gina McCarthy,
Administrator.
[FR Doc. 2015-07478 Filed 4-2-15; 8:45 am]
BILLING CODE 6560-50-P
