Renewable Fuel Standard Program: Standards for 2020 and Biomass-Based Diesel Volume for 2021, and Response to the Remand of the 2016 Standards; Supplemental Notice of Proposed Rulemaking, 57677-57685 [2019-23379]
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Federal Register / Vol. 84, No. 208 / Monday, October 28, 2019 / Proposed Rules
Section
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4. Amend § 17.106 by:
a. Revising paragraph (c)(4).
b. Adding new paragraph (f)(2)(viii).
The revisions and additions read as
follows:
ACTION:
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§ 17.106
payers.
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(4) A third-party payer may not,
without the consent of a U.S.
Government official authorized to take
action under 38 U.S.C. 1729 and this
part, offset or reduce any payment due
under 38 U.S.C. 1729 or this part on the
grounds that the payer considers itself
due a refund from a VA facility. A
written request for a refund must be
submitted within 18 months from the
original payment date and adjudicated
separately from any other claims
submitted to the third-party payer under
38 U.S.C. 1729 or this part. If third-party
payers do not submit requests for a
refund within this 18-month time frame,
VA will not provide a refund to thirdparty payers for a paid claim for any
reason.
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(viii) A provision in a third-party
payer’s plan that directs payment for
care or services be refused or lessened
because the billing is not presented in
accordance with a specified
methodology (such as a line item
methodology) is not by itself a
permissible ground for refusing or
reducing third-party payment.
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[FR Doc. 2019–22972 Filed 10–25–19; 8:45 am]
BILLING CODE 8320–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
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[EPA–HQ–OAR–2019–0136; FRL–10001–36–
OAR]
Renewable Fuel Standard Program:
Standards for 2020 and BiomassBased Diesel Volume for 2021, and
Response to the Remand of the 2016
Standards; Supplemental Notice of
Proposed Rulemaking
Environmental Protection
Agency (EPA).
AGENCY:
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Add
Percent Sample.
6.5.
2.0.
Proposed rule.
In a July 29, 2019 notice of
proposed rulemaking, Environmental
Protection Agency (EPA) proposed
percentage standards for four categories
of renewable fuel that would apply to
obligated parties in 2020 under the
Renewable Fuel Standard. This action
takes into consideration certain
comments received in response to the
proposed rule. Based on these
comments and additional information,
EPA is issuing a supplemental proposal
and requests comment on adjustments
to the percentage standards for 2020 that
result from the amended definitions of
two of the terms used to calculate the
percentage standards. We are proposing
to project the volume of gasoline and
diesel that will be exempt in 2020 due
to small refinery exemptions based on a
three-year average of the relief
recommended by the Department of
Energy (DOE). From 2016–2018 the
relief recommended by the DOE would
have resulted in a reduction to the
renewable volume obligation of
approximately 770 million RINs per
year. The amended definitions proposed
in this rule would effectively increase
the percentage standards that apply to
non-exempt obligated parties to offset
future small refinery exemptions and
help ensure that the required volumes
are met.
DATES:
Comments: Comments must be
received on or before November 29,
2019.
Public Hearing: EPA will hold a
public hearing will be held on October
30, 2019, at the location noted below
under ADDRESSES. The hearing will
begin at 9:00 a.m. and end when all
parties present who wish to speak have
had an opportunity to do so. Parties
wishing to testify at the hearing should
notify the contact person listed under
FOR FURTHER INFORMATION CONTACT by
October 24, 2019. Additional
information regarding the hearing
appears below under SUPPLEMENTARY
INFORMATION.
SUMMARY:
VA collection rules; third-party
You may send your
comments, identified by Docket ID No.
EPA–HQ–OAR–2019–0136, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov (our preferred
ADDRESSES:
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method) Follow the online instructions
for submitting comments.
• Mail: U.S. Environmental
Protection Agency, EPA Docket Center,
Office of Air and Radiation Docket, Mail
Code 28221T, 1200 Pennsylvania
Avenue NW, Washington, DC 20460.
• Hand Delivery/Courier: EPA Docket
Center, WJC West Building, Room 3334,
1301 Constitution Avenue NW,
Washington, DC 20004. The Docket
Center’s hours of operations are 8:30
a.m.–4:30 p.m., Monday–Friday (except
Federal Holidays).
Instructions: All submissions received
must include the Docket ID No. for this
rulemaking. Comments received may be
posted without change to https://
www.regulations.gov, including any
personal information provided. For the
full EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
Hearing: The hearing will be held at
the following location: Ann Arbor
Marriott Ypsilanti at Eagle Crest, 1275 S.
Huron St., Ypsilanti, MI 48197
(telephone number (734) 487–2000). A
complete set of documents related to the
proposal will be available for public
inspection through the Federal
eRulemaking Portal: https://
www.regulations.gov, Docket ID No.
EPA–HQ–OAR–2019–0136. Documents
can also be viewed at the EPA Docket
Center, located at 1301 Constitution
Avenue NW, Room 3334, Washington,
DC between 8:30 a.m. and 4:30 p.m.,
Monday through Friday, excluding legal
holidays.
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; for questions
regarding this proposed action, email
address: RFS-Rulemakings@epa.gov; for
information regarding the public
hearing and to register for the public
hearing, email address: RFS-Hearing@
epa.gov.
FOR FURTHER INFORMATION CONTACT:
Entities
potentially affected by the July 29, 2019,
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 84, No. 208 / Monday, October 28, 2019 / Proposed Rules
proposed rule,1 should it become final,
are those involved with the production,
distribution, and sale of transportation
NAICS 1 codes
Category
Industry
Industry
Industry
Industry
Industry
Industry
Industry
Industry
1 North
fuels, including gasoline and diesel fuel
or renewable fuels such as ethanol,
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
SIC 2 codes
324110
325193
325199
424690
424710
424720
221210
454319
2911
2869
2869
5169
5171
5172
4925
5989
biodiesel, renewable diesel, and biogas.
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.
Manufactured gas production and distribution.
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
engage in activities that may 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.
Hearing: The public hearing will
provide interested parties the
opportunity to present data, views, or
arguments concerning the proposal
(which can be found at https://
www.epa.gov/renewable-fuel-standardprogram/regulations-and-volumestandards-under-renewable-fuelstandard). EPA may ask clarifying
questions during the oral presentations
but will not respond to the
presentations at that time. Written
statements and supporting information
submitted during the comment period
will be considered with the same weight
as any oral comments and supporting
information presented at the public
hearing. Written comments must be
received by the last day of the comment
period, as specified in this notice.
khammond on DSKJM1Z7X2PROD with PROPOSALS
Outline
I. Overview
II. Consideration of Proposed Adjustments to
the Percentage Standard Calculations for
2020
A. Proposed Changes to the Projected
Volume of Gasoline and Diesel for
Exempt Small Refineries
B. Projecting the Exempted Volume of
Gasoline and Diesel in 2020
1 84
FR 36762 (July 29, 2019).
84 FR 36762 (July 29, 2019).
3 See, e.g., comments from the Renewable Fuels
Association (Docket Item No. EPA–HQ–OAR–2019–
0136–0281).
2 See
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C. Example Calculation of Proposed
Percentage Standards for 2020
III. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
B. Executive Order 13771: Reducing
Regulations and Controlling Regulatory
Costs
C. Paperwork Reduction Act (PRA)
D. Regulatory Flexibility Act (RFA)
E. Unfunded Mandates Reform Act
(UMRA)
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation
and Coordination with Indian Tribal
Governments
H. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
I. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
J. National Technology Transfer and
Advancement Act (NTTAA)
K. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
IV. Statutory Authority
I. Overview
On July 29, 2019, EPA proposed
‘‘Renewable Fuel Standard Program:
Standards for 2020 and Biomass-Based
Diesel Volume for 2021, Response to the
Remand of the 2016 Standards, and
Other Changes’’ (‘‘the July 29
proposal’’). We proposed reductions in
the statutory volume targets for
cellulosic biofuel, advanced biofuel, and
total renewable fuel using the cellulosic
waiver authority in Clean Air Act (CAA)
section 211(o)(7)(D). We also proposed
percentage standards that would apply
to obligated parties in 2020 for each of
the four categories of renewable fuel
4 See
84 FR 36797 and fn. 165 (July 29, 2019).
also denied SRE requests from 6 small
refineries. Petitions from 3 parties were declared
ineligible or withdrawn, and 2 petitions were
pending at the time EPA issued this supplemental
proposal. More information about the number of
5 EPA
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(cellulosic biofuel, biomass-based
diesel, advanced biofuel, and total
renewable fuel) based on the proposed
volumes and a projection of the volume
of gasoline and diesel used in the U.S.
in 2020.2
In response to the July 29 proposal, a
number of stakeholders provided
comments on the proposed percentage
standards for 2020.3 Some of these
parties requested that we change our
interpretation of two terms used to
calculate the percentage formula: The
amount of gasoline projected to be
produced by exempt small refineries
and small refiners (collectively,
‘‘exempt small refineries’’), and the
amount of diesel projected to be
produced by exempt small refineries.
Rather than interpreting these terms to
refer to the projected production of
gasoline and diesel produced by
refineries that have been exempted from
their 2020 RFS obligations at the time
the 2020 annual rule is finalized, many
commenters stated that EPA should
instead project the volumes of gasoline
and diesel that will be exempted for the
2020 compliance year and use these
projected volumes in calculating the
percentage standards for 2020. In the
July 29 proposal, we informed the
public that these issues were beyond the
scope of that proposal.4 On further
consideration, we are issuing this
supplemental proposal of a method to
address these issues.
Since the July 29 proposal, EPA has
granted small refinery exemptions
(‘‘SREs’’) for 31 small refineries for the
2018 compliance year.5 We believe
these comments and the 2018 SREs are
germane to our approach for calculating
the percentage standards for 2020. In
light of this additional information, and
SREs granted and the volume of RINs not required
to be retired as a result of those exemptions can be
found at https://www.epa.gov/fuels-registrationreporting-and-compliance-help/rfs-small-refineryexemptions.
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in order to give all stakeholders an
opportunity to consider potential
changes to the calculation of the
percentage standards, we are issuing
this supplemental proposal. We are
proposing to amend the definitions of
‘‘GEi’’ and ‘‘DEi’’ in the RFS percentage
standard formula at 40 CFR 80.1405(c)
to represent the projected volumes of
exempt gasoline and diesel in the
compliance year (in this case 2020),
regardless of whether EPA has
adjudicated exemption petitions by the
time of the final rule establishing the
percentage standards for that
compliance year. These changes are
intended to help ensure that the
renewable fuel volumes established in
the action that we take with regard to
the July 29 proposal and this
supplemental proposal (the ‘‘final rule’’)
are achieved. We request additional
comment on this proposed change. This
action does not solicit comment on any
other aspect of the formula at 40 CFR
80.1405(c) or the July 29 proposal, nor
are we soliciting comment on increasing
the required volume of renewable fuel
to account for the reductions in the
required renewable fuel volumes that
resulted from SRE decisions issued
prior to the 2020 compliance year.
II. Consideration of Proposed
Adjustments to the Percentage Standard
Calculations for 2020
In the July 29 proposal, we proposed
percentage standards for each of the four
categories of renewable fuel based on
the volumes that resulted from the
exercise of the cellulosic waiver
authority and projections of the volume
of gasoline and diesel used in the U.S.
in 2020.6 We received comments on that
proposal suggesting that, in determining
the percentage standards for 2020, we
should project the volume of gasoline
and diesel produced by small refineries
that will be exempted from their
renewable volume obligations in 2020.7
In light of these comments and the
recent SREs, we are proposing new
definitions for two of the terms used in
calculating the percentage standards for
2020 to account for the projected
volume of gasoline and diesel produced
by small refineries that will be
exempted from their renewable volume
obligations in 2020.
Where:
StdRF,i = The renewable fuel standard for year
i, in percent.
RFVRF,i = Annual volume of renewable fuel
required by 42 U.S.C. 7545(o)(2)(B) for
year i, in gallons.
Gi = Amount of gasoline projected to be used
in the 48 contiguous states and Hawaii,
in year i, in gallons.
Di = Amount of diesel projected to be used
in the 48 contiguous states and Hawaii,
in year i, in gallons.
RGi = Amount of renewable fuel blended into
gasoline that is projected to be consumed
in the 48 contiguous states and Hawaii,
in year i, in gallons.
RDi = Amount of renewable fuel blended into
diesel that is projected to be consumed
in the 48 contiguous states and Hawaii,
in year i, in gallons.
GSi = Amount of gasoline projected to be
used in Alaska or a U.S. territory, in year
i, if the state or territory has opted-in or
opts-in, in gallons.
RGSi = Amount of renewable fuel blended
into gasoline that is projected to be
consumed in Alaska or a U.S. territory,
in year i, if the state or territory opts-in,
in gallons.
DSi = Amount of diesel projected to be used
in Alaska or a U.S. territory, in year i, if
the state or territory has opted-in or optsin, in gallons.
RDSi = Amount of renewable fuel blended
into diesel that is projected to be
consumed in Alaska or a U.S. territory,
in year i, if the state or territory opts-in,
in gallons.
GEi = The amount of gasoline projected to be
produced by exempt small refineries and
small refiners, in year i, in gallons in any
year they are exempt per §§ 80.1441 and
80.1442.
DEi = The amount of diesel fuel projected to
be produced by exempt small refineries
and small refiners in year i, in gallons,
in any year they are exempt per
§§ 80.1441 and 80.1442.
6 See Section VIII of the July 29 proposal for more
detail on the proposed percentage standard
calculations.
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A. Proposed Changes to the Projected
Volume of Gasoline and Diesel for
Exempt Small Refineries
The renewable fuel standards are
expressed as volume percentages and
Historically, EPA has interpreted the
terms referring to the amount of gasoline
and diesel projected to be produced by
exempt small refineries (terms GEi and
DEi in the equation above) to refer to the
amount of gasoline and diesel projected
7 See, e.g., comments from the Renewable Fuels
Association (Docket Item No. EPA–HQ–OAR–2019–
0136–0281).
8 See, e.g., 84 FR 36797 (July 29, 2019).
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those volume percentages are used by
each obligated party to determine their
Renewable Volume Obligations (RVOs).
These percentage standards are
calculated by EPA using the volumes of
renewable fuel established in the annual
rules following any reductions made
using the cellulosic waiver authority
and/or the general waiver authority. The
formulas used to calculate the
percentage standards applicable to
producers and importers of gasoline and
diesel are provided in 40 CFR
80.1405(c). The formulas rely on
estimates of the volumes of gasoline and
diesel fuel, for both highway and
nonroad uses, which are projected to be
used in the year in which the standards
will apply. The formula for the
percentage standard calculation for total
renewable fuel, including the
definitions of the terms, is shown
below. The formulas for the other three
percentage standards follow the same
format, with the numerator of the
fraction replaced with the annual
volume of cellulosic biofuel, biomassbased diesel, and advanced biofuel,
respectively.
to be produced by small refineries that
have already been granted exemptions
from their obligations prior to issuing
the final rule for the relevant
compliance year.8 As a result of this
interpretation, any SREs granted after
we issue the annual rule containing the
percentage standards for that year
effectively reduces the required volume
of renewable fuel for that year. For
example, in August 2019 we granted 31
SREs for the 2018 compliance year after
the percentage standards for 2018 had
been established.9 These SREs reduced
the obligated volume of gasoline and
diesel for 2018 by 13.42 billion gallons,
effectively reducing the required
volume of total renewable fuel for 2018
by 1.43 billion RINs.
In comments on the July 29 proposal,
many commenters requested that EPA
adopt a different interpretation of the
terms for the amount of gasoline and
diesel projected to be produced by
exempt small refineries in the existing
9 The percentage standards for 2018 were
established in December 2017 (82 FR 58486,
December 12, 2017).
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percentage standard formula.10 Many
commenters requested that these terms
should refer to a projection of the
exempted volume of gasoline and diesel
produced by small refineries, regardless
of whether EPA had already adjudicated
such exemption petitions by the time of
the final rule. These commenters argued
that this interpretation of the regulations
is reasonable and better implements the
statutory requirement that EPA must
‘‘ensure’’ the renewable fuel volumes
are met. Some commenters suggested
that adjusting the percentage standards
formula is more important now than in
earlier years of the program as we have
recently granted exemptions for more
significant volumes of gasoline and
diesel, resulting in applicable volumes
that are not being met at the time of
compliance.11
The comments described above raise
issues similar to those raised by a
pending petition for administrative
reconsideration.12 That petition, filed by
parties who also commented on the July
29 proposal, also asked EPA to
reconsider our approach to accounting
for exempted volumes through the
formula at 40 CFR 80.1405(c). In
response to this petition, EPA is
undertaking a process to reconsider this
issue; however, we are doing so under
our inherent authority to revise or
amend a rulemaking.13
We are proposing to change the
definitions of the two terms in the
percentage standard formula at 40 CFR
80.1405(c), GEi and DEi, to represent a
projection of the exempted volume of
10 See, e.g., comments from the Renewable Fuels
Association (Docket Item No. EPA–HQ–OAR–2019–
0136–0281).
11 See, e.g., comments from Growth Energy
(Docket Item No. EPA–HQ–OAR–2019–0136–0312).
12 ‘‘Petition for Reconsideration of 40 CFR
80.1405(c), EPA Docket No. EPA–HQ–OAR–2005–
0161, promulgated in 75 FR 14670 (Mar. 26, 2010);
Petition for Reconsideration of Periodic Reviews for
the Renewable Fuel Standard Program, 82 FR 58364
(Dec. 12, 2017)’’ (June 4, 2018).
13 The petition asserted that reconsideration was
required under CAA section 307(d)(7)(B).
Consistent with caselaw and recent representations
by the petitioners, we do not believe that the
reconsideration criteria under CAA section
307(d)(7)(B) have been met; we instead are treating
the petition as a petition to revise or amend a
rulemaking. See EPA’s Sur-Reply in Opp. To Petr’s
Mot. to Lift Stay of Proceedings, D.C. Cir. No. 18–
1154, ECF No. 1807187, 3 (Sept. 19, 2019); Petr’s
Reply in Further Support of Their Mot. to Lift Stay
of Proceedings, D.C. Cir. No. 18–1154, ECF No.
1806347, 3 n.1 (Sept. 12, 2019); Pet. for Rev., D.C.
Cir. No. 19–1201, ECF No. 1808877, 2 n.2 (Sept. 27,
2019). Regardless, we note that we are providing
notice and a public hearing followed by a 30-day
comment period, consistent with CAA section
307(d) procedures. We also take no position today
on whether this administrative petition and the
related judicial petitions meet the ‘‘grounds arising
after’’ requirements, under CAA section 307(b)(1)
and relevant caselaw, to challenge prior EPA
rulemakings.
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gasoline and diesel, regardless of
whether we have adjudicated
exemptions for that year by the time of
the final rule establishing the percentage
standards for the four renewable fuel
types. We propose that the term ‘‘GEi’’,
representing the volume of exempt
gasoline, be defined as ‘‘the total
amount of gasoline projected to be
exempt in year i, in gallons, per
§§ 80.1441 and 80.1442.’’ We similarly
propose that the term ‘‘DEi’’,
representing the volume of exempt
diesel, be defined as ‘‘the total amount
of diesel projected to be exempt in year
i, in gallons, per §§ 80.1441 and
80.1442.’’
While the statute does not specifically
require EPA to redistribute exempted
volumes in this manner, we believe that
this is a reasonable interpretation of our
authority pursuant to the statute under
Chevron v. NRDC,14 especially in light
of our authority to ‘‘ensure’’ that the
renewable fuel volumes are met.15 We
also acknowledge that this
supplemental proposal, if finalized,
would reflect a change in policy
direction as described in FCC v. Fox.16
We believe the newly proposed
definitions are a reasonable measure to
appropriately account for volumes that
may become exempted after the
promulgation of the final rule
establishing the percentage standards
and furthers Congressional intent to
‘‘ensure’’ the renewable fuel volumes
are met. In other words, should we grant
SREs without accounting for them in the
percentage formula, those exemptions
would effectively reduce the volumes of
renewable fuel required by the RFS
program, potentially impacting the
volume of renewable fuel used in the
U.S. By contrast, were we to adopt this
proposed change to the percentage
standards for 2020, the percentage
standard for each category of renewable
fuel would increase (see Section II.C for
example calculations). These higher
percentage standards would have the
effect of ensuring that the required
volumes of renewable fuel are met when
small refineries are granted exemptions
from their 2020 obligations, provided
EPA’s projection of the amount of
gasoline and diesel produced by exempt
small refineries in 2020 is accurate. We
acknowledge the uncertainty in the
projection, a topic we discuss further in
the next section.
We also believe that accounting in the
percentage formula for a projection of
14 Chevron, U.S.A., Inc. v. Nat. Res. Def. Council,
Inc., 467 U.S. 837, 842–44 (1984).
15 See CAA section 211(o)(2)(A)(i), (2)(A)(iii)(I),
(3)(B)(i); see also CAA section 301(a).
16 FCC v. Fox Television Stations, Inc., 556 U.S.
502, 515 (2009).
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volumes that would be exempted after
the final rule is particularly appropriate
where those volume are projected to
constitute a significant portion of the
total volume of obligated fuel as
established in the final rule. This has
occurred in recent years but did not
occur in the first years of the program
when we first established the regulatory
definitions and interpretations.
We solicit comment on other
formulations of these definitions in
order to accurately describe our intent
that these terms represent a projection
of the volume of gasoline and diesel
produced by exempt small refineries,
regardless of whether EPA had already
adjudicated those exemptions by the
time of the final rule.
B. Projecting the Exempted Volume of
Gasoline and Diesel in 2020
Adoption of the proposed revised
definitions of the terms referring to the
amount of gasoline and diesel produced
by exempt small refineries, as discussed
in Section II.A, would require that we
determine how to project the exempted
volumes of these fuels in 2020.
Although subject to uncertainty, this
projection would affect the percentage
standards and thus the actual volume of
renewable fuel required to be used in
2020. If we over-project the volume of
gasoline and diesel produced by exempt
small refineries in 2020, the actual
required volumes of renewable fuel will
be higher than the volumes used in
calculating the percentage standards. By
contrast, if we under-project the volume
of exempted gasoline and diesel, the
actual required volumes of renewable
fuel will be lower than the volumes
used in calculating the percentage
standards.
We acknowledge that there is
uncertainty with projecting the
exempted volume for 2020, as petitions
for 2020 SREs have not yet been
submitted to or evaluated by the
Department of Energy (DOE) or EPA.
EPA independently evaluates SRE
petitions while taking DOE’s
recommendation into account and has
discretion to provide relief that is
different than the DOE
recommendation. In 2020 we anticipate
granting partial exemptions where such
exemptions are appropriate. This is an
approach we could have taken in
response to recommendations from DOE
in recent years, which included partial
exemption recommendations on some
applications. We therefore believe it is
appropriate to consider the exempt
volumes of gasoline and diesel in
previous years had EPA followed DOE’s
recommendations without deviation.
We believe the approach described
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above is appropriate for two
independent reasons.
First, in prior years, EPA has taken
different approaches in evaluating
petitions. For instance, in the EPA final
action, the August 9, 2019,
Memorandum Decision, we granted or
denied 36 then-pending SRE petitions
for the 2018 compliance year.17 We
granted full exemptions to petitioners
where DOE either recommended full or
50% relief. That is, in cases where DOE
found a small refinery experienced
either disproportionate impacts or
viability impairment, EPA found the
small refinery experienced
disproportionate economic hardship
and granted a full exemption. By
contrast, in earlier years of the program,
we denied petitions and provided no
exemption in certain cases where DOE
recommended a 50% exemption,
finding that disproportionate economic
hardship existed only where the small
refinery experienced both
disproportionate impacts and viability
impairment.18 The proposed approach
to projection, then, takes a middle
ground between these prior approaches,
and is a reasonable estimate of the
aggregate expected exempted volume in
2020.
Second, this approach approximates
our intended approach for adjudicating
2020 SRE petitions. The statute directs
EPA to make an independent decision
as to SRE petitions based on DOE’s
recommendation and other economic
factors. While final decisions on 2020
SREs must await EPA’s receipt and
adjudication of those petitions, we
generally have the statutory authority to
issue a final decision consistent with
DOE’s recommendation following our
own review and analysis.19 This reading
of the statute is consistent with
congressional guidance to DOE 20 and
17 ‘‘Decision on 2018 Small Refinery Exemption
Petitions,’’ Memorandum from Anne Idsal, Acting
Assistant Administrator, Office of Air and Radiation
to Sarah Dunham, Director, Office of Transportation
and Air Quality. August 9, 2019 (‘‘August 9
Memorandum Decision’’).
18 See, e.g., Hermes Consol., LLC v. EPA, 787 F.3d
568, 575 (D.C. Cir. 2015).
19 EPA retains the authority to deviate from DOE’s
recommendation based upon ‘‘other economic
factors,’’ refinery-specific information, and other
persuasive evidence that EPA should reach a
different outcome. See CAA section 211(o)(9)(B)(ii).
20 See Consolidated Appropriations Act, 2016,
Public Law 114–113 (2015), Explanatory Statement
to Senate amendment to H.R. 2029 Military
Construction and Veterans Affairs and Related
Agencies Appropriations Act, 2016, Division DEnergy and Water Development and Related
Agencies Appropriations Act, 2016, available at
https://docs.house.gov/meetings/RU/RU00/
20151216/104298/HMTG-114-RU00-20151216SD005.pdf. Congress in this Statement directed
DOE, under certain circumstances, ‘‘to recommend
to the EPA Administrator a 50 percent waiver of
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EPA.21 Consistent with that guidance
and since 2014, DOE has also
recommended 50% exemptions as it
deemed appropriate.
We acknowledge that in the August 9
Memorandum Decision, we stated that
the ‘‘best interpretation’’ of the statute
was that EPA should either grant or
deny petitions in full, and ‘‘not grant
partial relief.’’ Specifically, we observed
that the statute provided for exemptions
as an ‘‘extension of the exemption under
subparagraph (A)’’, where subparagraph
(A) stated that the RFS program
requirements ‘‘shall not apply to small
refineries under calendar year 2011.’’ 22
We had implemented the statutory pre2011 exemption as a full exemption for
all qualifying small refineries. Thus, we
concluded that, under this
interpretation, ‘‘when Congress
authorized the Administrator to provide
an ‘extension’ of that exemption for the
reason of [disproportionate economic
hardship], Congress intended that
extension to be a full, and not partial,
exemption.’’ 23
We believe, however, that this is not
the only reasonable way to adjudicate
exemption petitions. Had Congress
spoken directly to the issue of the
amount of relief EPA could provide to
small refineries, EPA would be bound
by that directive. However, the statute is
silent with respect to EPA’s authority to
issue partial exemptions. Nothing in the
statute directly addresses this issue. No
statutory language exists characterizing
the scope of an exemption; there are no
terms employed such as ‘‘partial’’ or
‘‘full.’’
We think there is another reasonable
reading of this provision of the statute
besides the one articulated in the
RFS requirements for the [small refinery]
petitioner.’’ Id. at 35.
21 S. Rep. 114–281. See also Consolidated
Appropriations Act, 2019, Public Law 116–6 (2019),
H. Rep. 116–9 at 741, continuing the directive
contained in Senate Report 114–281. A recent
Senate Report reiterated: ‘‘The [Environmental
Protection] Agency is reminded that, regardless of
the Department of Energy’s recommendation,
additional relief may be granted if the Agency
believes it is warranted.’’ Sen. Rep. 116–123,
Department of the Interior, Environment, and
Related Agencies Appropriations Bill, 2020, Report
Accompanying Sen. 2580, at 87–88 (Sept. 26, 2019)
(again ‘‘continu[ing] the directive contained in
Senate Report 114–281 related to small refinery
relief’’), available at https://www.congress.gov/116/
crpt/srpt123/CRPT-116srpt123.pdf. This guidance,
read together with that discussed in the previous
footnote, supports the interpretation that DOE has
authority to recommend partial exemptions for
particular small refineries, and that EPA has
discretion, to the extent supported by the record
before it, either to accept that recommendation and
grant a partial exemption, or to depart from that
recommendation.
22 CAA section 211(o)(9)(B); CAA section
211(o)(9)(A).
23 August 9 Memorandum Decision at 2.
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August 9 Memorandum Decision.
Again, there we stated that we could
provide full relief to small refineries for
which DOE recommends 50% relief.24
At the same time, it is also reasonable
to construe the statute to allow EPA to
issue partial exemptions.25
Notably, EPA may determine that
only partial relief is warranted based on
a particular small refinery’s
circumstances. In that case, it is
reasonable for the level of relief that
EPA grants to reflect that determination.
Nowhere does Congress indicate that
EPA must take an all-or-nothing
approach. Specifically, nothing
obligates EPA to provide full relief
where we find that only partial relief is
warranted.
For purposes of making the projection
of the aggregate exempted volume of
gasoline and diesel in 2020, we propose
to adopt this interpretation of the
statute, under which EPA has the
authority to grant a partial exemption to
a small refinery under appropriate
circumstances.26 Were we to finalize
this approach, we would, in projecting
the exempted volume, depart from the
interpretation taken in the August 9
Memorandum Decision, under which
EPA ‘‘shall either grant or deny
petitions for small refinery hardship in
full, and not grant partial relief.’’ 27 We
propose to adopt this new approach for
several reasons. As already noted, this
new policy would allow EPA to ensure
that the level of relief that it grants
reflect the determination it makes as to
whether full or partial relief is
appropriate based on a particular small
refinery’s disproportionate economic
hardship. This allows EPA to more
precisely calibrate its RFS policy, and to
strike an appropriate balance between
furthering the production and use of
renewable fuels while granting relief to
small refineries that meet the statutory
criteria. This balance, moreover, is also
appropriate in light of the above-cited
recent Congressional direction.28
Furthermore, we note again that even
were EPA to deviate from this policy in
24 It could also be appropriate for EPA to deny an
exemption in some cases where DOE recommends
50% relief, as we did in earlier years of the
program.
25 EPA solicits comment on whether the
interpretation set forth in the August 9
Memorandum Decision is indeed the ‘‘best’’
interpretation. EPA notes in this regard that the
ultimate question is whether the statutory
interpretation under which it operates is a
reasonable one.
26 See Chevron, 467 U.S. at 842–44.
27 August 9 Memorandum Decision at 2. See FCC,
556 U.S. at 515.
28 See supra notes 20 and 21.
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adjudicating 2020 SRE petitions,29 this
approach to projection nonetheless
provides a reasonable estimate of the
aggregate exempted volume at this time.
All projections are inherently uncertain,
but this projection reflects a reasonable
projection of the future.
Further, although we acknowledge the
difficulty of making a precise
projection,30 this inherent uncertainty
does not preclude us from taking the
approach set forth in this supplemental
proposal. To the extent our prior
statements suggested we did not believe
such a projection was appropriate, we
propose to change course.31 The statute
impliedly contemplates EPA’s authority
to make this projection, as it requires
EPA to promulgate standards by
November 30 of the prior year to
‘‘ensure[ ]’’ that the renewable fuel
volumes are met,32 but authorizes small
refineries to petition for an exemption
based on disproportionate economic
hardship ‘‘at any time.’’ 33 This
projection, moreover, is hardly unique
in the RFS program as Congress
required EPA to make numerous
projections to implement the program.34
Today’s approach, moreover, avoids
the problems we previously identified
with projecting small refinery
exemptions. Notably, we are projecting
the aggregate exempted volume in 2020.
We thus need not wrestle with the
difficulties of predicting precisely
which refineries will apply or the
economic circumstances of specific
refineries in 2020. We only need to
estimate the total exempted volume.
Moreover, we retain authority to adjust
the standards as appropriate should our
approach to 2020 small refinery
exemptions significantly change from
what we anticipate it will be as it is set
forth here.35 Finally, we have the benefit
of additional experience administering
the RFS program, knowledge of the
relatively high levels of exempted
volumes in prior years, and a proposed
approach for how we intend to
adjudicate 2020 small refinery
exemption petitions that allows us to
anticipate with a high degree of
probability that there will be a non-zero
aggregate exempted volume as a result
of those petitions. Each of these
developments independently support
making a non-zero projection of the
exempted volume in 2020.
To project the exempted volume
under this methodology, it is instructive
to look back at what the exempted
volumes of gasoline and diesel in
previous years would have been had
EPA followed DOE’s recommendations,
including granting partial exemptions.
These volumes, along with the
Renewable Volume Obligation (RVO)
that would have been exempted, are
shown in Table II.B–1.
TABLE II.B–1—ESTIMATED EXEMPTED VOLUME OF GASOLINE AND DIESEL AND ESTIMATED RVO EXEMPTED BY
COMPLIANCE YEAR FOLLOWING DOE’S RECOMMENDATIONS
Estimated exempted
volume of gasoline
(million gallons)
Compliance year
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2015
2016
2017
2018
.........................................................................................................
.........................................................................................................
.........................................................................................................
.........................................................................................................
Estimated exempted
volume of diesel
(million gallons)
1,590
2,450
5,650
4,620
1,450
1,930
3,870
3,270
Estimated
RVO exempted
(million RINs)
290
440
1020
840
As demonstrated in Table II.B–1, the
volume of gasoline and diesel that
would have been exempted if EPA had
followed DOE’s recommendations has
varied significantly in previous years.
This is because there are many factors
that affect the number of SREs that are
granted in a given year and those factors
are inherently difficult to estimate with
precision. We believe that it is
appropriate to use an average volume of
the gasoline and diesel that would have
been exempted over a three-year period
as our projection of gasoline and diesel
that will be exempted in 2020, rather
than the volume of gasoline and diesel
that would have been exempted in any
single year, as it helps to average out the
effects of unique events or market
circumstances that occurred in
individual years in the past that may or
may not occur in 2020.
We propose to project the volume of
gasoline and diesel that will be
exempted in 2020 per the proposed
definitions described in Section II.A
consistent with our current intention for
evaluating the 2020 SRE petitions.
While we cannot predict with certainty
the approach that we will in fact take
once we have received and reviewed
petitions, at this time, we anticipate our
evaluation will result in an exempted
volume that is on the aggregate
consistent with DOE’s
recommendations. The average volume
of these fuels that would have been
exempted in 2016–2018 if EPA had
followed DOE’s recommendations is
4,240 and 3,020 million gallons, for
gasoline and diesel fuel, respectively.
These exempted volumes would have
resulted in an average reduction to the
RVO of approximately 770 million RINs.
This projection of exempted gasoline
and diesel would effectively increase
the percentage standards that apply to
obligated parties to offset future SREs
and help ensure that the required
volumes are met.
We also request comment on an
alternative approach using the average
volume of gasoline and diesel that
would have been exempted from 2015–
2017 (3,230 and 2,420 million gallons,
respectively, resulting in an average
reduction to the RVO of approximately
580 million RINs) as our projection for
the exempted volumes of gasoline and
diesel in 2020. We note that if for any
reason we anticipate a different
approach to evaluating SRE petitions by
the time of the final rule, we may also
consider adjusting our methodology for
projecting the exempt volumes of
gasoline and diesel accordingly.
29 For instance, EPA may deviate from DOE’s
recommendation where we find that other
economic factors compel a different outcome than
what DOE recommended. Other factors, such as
judicial resolution of pending decisions or
subsequent Congressional direction, could also
potentially affect EPA’s SRE policy going forward.
30 See EPA’s Br., Doc No. 1757157, D.C. Cir. No.
17–1258, AFPM v. EPA (Oct. 25, 2018).
31 See FCC, 556 U.S. at 515.
32 CAA section 211(o)(3)(B)(i).
33 CAA section 211(o)(9)(B)(i).
34 See, e.g., CAA section 211(o)(7)(D) (projection
of the volume of cellulosic biofuel production);
(o)(3)(A) (projection of the volumes of
transportation fuel, biomass-based diesel, and
cellulosic biofuel).
35 See, e.g., Ams. for Clean Energy v. EPA, 864
F.3d 691, 718 (D.C. Cir. 2017) (upholding EPA’s
authority to promulgate late renewable fuel
requirements so long as EPA reasonably balances
the burdens and benefits of its approach).
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C. Example Calculation of Proposed
Percentage Standards for 2020
As described in Section II.A, the
calculation of the applicable percentage
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standards would differ from that
described in the July 29 proposal only
in the definition and values of those
terms representing projections of
gasoline and diesel production by
exempt small refineries. Rather than
being assigned a value of zero as in the
July 29 proposal, they would be
assigned a value equal to our projection
of the exempted volume of gasoline and
diesel as discussed in Section II.B in
accordance with our proposed
definitions for GEi and DEi.
The values of all the variables used to
calculate the applicable percentage
standards are shown in Table II.C–1 for
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both the proposed approach to
estimating 2020 SREs as well as the
alternative on which we are seeking
comment. All formulas for calculating
the percentage standards are provided
in 40 CFR 80.1405(c), subject to this
action’s proposed revision.
TABLE II.C–1—EXAMPLE VALUES FOR TERMS IN CALCULATION OF 2020 STANDARDS 36
[Billion gallons]
Term
Description
RFVCB .............................
RFVBBD ...........................
RFVAB .............................
RFVRF .............................
G .....................................
D .....................................
RG ..................................
RD ..................................
GS ..................................
RGS ................................
DS ...................................
RDS ................................
GE ..................................
DE ...................................
Required volume of cellulosic biofuel .............................................................
Required volume of biomass-based diesel ....................................................
Required volume of advanced biofuel ............................................................
Required volume of renewable fuel ................................................................
Projected volume of gasoline .........................................................................
Projected volume of diesel .............................................................................
Projected volume of renewables in gasoline ..................................................
Projected volume of renewables in diesel ......................................................
Projected volume of gasoline for opt-in areas ...............................................
Projected volume of renewables in gasoline for opt-in areas ........................
Projected volume of diesel for opt-in areas ...................................................
Projected volume of renewables in diesel for opt-in areas ............................
Projected volume of exempt gasoline ............................................................
Projected volume of exempt diesel ................................................................
As described in Section II.B, the
values for GE and DE in Table II.C–1 do
not represent the SREs actually granted
in the years cited, but rather the SREs
that would have been granted had EPA
followed, without deviation, the
recommendations received from DOE
following their independent assessment
of the information provided by each
small refinery. We updated the
projected volumes of total gasoline and
diesel, and the renewable fuels
contained within them, since the July 29
proposal to use volumes derived from
values in the September 2019 version of
EIA’s Short-Term Energy Outlook. An
estimate of fuel consumed in Alaska,
derived from the June 28, 2019, release
of EIA’s State Energy Data System and
based on the 2017 volumes contained
therein, was subtracted from the
nationwide volumes. The required
volumes of renewable fuel used in Table
II.C–1 are based on the July 29 proposal.
Proposed values
based on average
of 2016–2018
estimated
exemptions
Alternative values
based on average
of 2015–2017
estimated
exemptions
0.54
2.43
5.04
20.04
142.49
56.77
14.58
2.48
0
0
0
0
4.24
3.02
0.54
2.43
5.04
20.04
142.49
56.77
14.58
2.48
0
0
0
0
3.23
2.42
These volumes have not been updated
to reflect data available since the July 29
proposal; however, we intend to adjust
these volumes to account for more
recent information in the final rule.
Using the volumes shown in Table
II.C–1, we have calculated two versions
of revised proposed applicable
percentage standards for 2020 as shown
in Table II.C–2. We have also included
the percentage standards from the July
29 proposal.
TABLE II.C–2—EXAMPLE PERCENTAGE STANDARDS FOR 2020
Proposed values
in the July 29
proposal
(percent)
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Cellulosic biofuel ........................................................................................................
Biomass-based diesel ................................................................................................
Advanced biofuel .......................................................................................................
Renewable fuel ..........................................................................................................
The percentage standards in the final
rule will depend upon not only the
value of projected volume of exempt
gasoline and diesel, which could differ
from those used above, but also the
projected volumes of gasoline and diesel
Proposed values
based on average
of 2016–2018
estimated
exemptions
(percent)
Alternative values
based on average
of 2015–2017
estimated
exemptions
(percent)
0.31
2.08
2.88
11.46
0.31
2.06
2.85
11.35
0.29
1.99
2.75
10.92
produced by all refineries as well as the
volume requirements for renewable fuel.
Our determination of all of these values
will be informed by the comments we
received on the July 29 proposal and
this supplemental proposal, as well as
other information that may become
available.
36 See ‘‘Calculation of supplemental proposed %
standards for 2020’’ in docket EPA–HQ–OAR–
2019–0136.
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III. Statutory and Executive Order
Reviews
E. Unfunded Mandates Reform Act
(UMRA)
J. National Technology Transfer and
Advancement Act (NTTAA)
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
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 rulemaking does not involve
technical standards.
This action is a significant regulatory
action that was submitted to the Office
of Management and Budget (OMB) for
review. Any changes made in response
to OMB recommendations have been
documented in the docket.
B. Executive Order 13771: Reducing
Regulations and Controlling Regulatory
Costs
This action is expected to be an
Executive Order 13771 regulatory
action. There are no quantified cost
estimates for this supplemental
proposed rule because it does not
change the applicable volumes
proposed in the July 29 proposal.
This action does not impose any new
information collection burden under the
PRA. OMB has previously approved the
information collection activities
contained in the existing regulations
and has assigned OMB control numbers
2060–0637 and 2060–0640. The
proposed revisions will not impose new
or different reporting requirements on
regulated parties than already exist for
the RFS program.
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D. 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, 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.
The small entities directly regulated
by the RFS program are small refiners,
which are defined at 13 CFR 121.201.
This supplemental proposed rule does
not change the applicable volumes
proposed in the July 29 proposal. Nor
does it change the compliance
flexibilities currently offered to small
entities under the RFS program
(including the SRE provisions we
continue to implement). We have
therefore concluded that this action will
have no net regulatory burden for
directly regulated small entities.
16:25 Oct 25, 2019
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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.
G. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
C. Paperwork Reduction Act (PRA)
VerDate Sep<11>2014
F. Executive Order 13132: Federalism
This action does not have tribal
implications as specified in Executive
Order 13175. This action will be
implemented at the Federal level and
affects transportation fuel refiners,
blenders, marketers, distributors,
importers, exporters, and renewable fuel
producers and importers. Tribal
governments will be affected only to the
extent they produce, purchase, or use
regulated fuels. Thus, Executive Order
13175 does not apply to this action.
H. 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 implements specific
standards established by Congress in
statutes (CAA section 211(o)) and does
not concern an environmental health
risk or safety risk.
I. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
This action is not a ‘‘significant
energy action’’ because it is not likely to
have a significant adverse effect on the
supply, distribution, or use of energy.
The RFS program and this rule are
designed to achieve positive effects on
the nation’s transportation fuel supply,
by increasing energy independence and
security and lowering lifecycle GHG
emissions of transportation fuel.
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K. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
EPA believes that this action does not
have disproportionately high and
adverse human health or environmental
effects on minority populations, low
income populations, and/or indigenous
peoples, as specified in Executive Order
12898 (59 FR 7629, February 16, 1994).
This regulatory action does not affect
the level of protection provided to
human health or the environment by
applicable air quality standards. This
action does not relax the control
measures on sources regulated by the
RFS regulations.
IV. Statutory Authority
Statutory authority for this action
comes from sections 114, 203–05, 208,
211, and 301 of the Clean Air Act, 42
U.S.C. 7414, 7522–24, 7542, 7545, and
7601.
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: October 15, 2019.
Andrew R. Wheeler,
Administrator.
For the reasons set forth in the
preamble, EPA proposes to amend 40
CFR part 80 as follows:
PART 80—REGULATION OF FUELS
AND FUEL ADDITIVES
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
2. Amend § 80.1405 by revising the
equation in paragraph (c) definitions of
GEi and DEi to read as follows:
■
§ 80.1405 What are the Renewable Fuel
Standards?
*
*
*
*
*
(c) * * *
GEi = The total amount of gasoline
projected to be exempt in year i, in
gallons, per §§ 80.1441 and 80.1442.
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DEi = The total amount of diesel fuel
projected to be exempt in year i, in
gallons, per §§ 80.1441 and 80.1442.
*
*
*
*
*
[FR Doc. 2019–23379 Filed 10–25–19; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
any groups or segments of the
population who, as a result of their
location, cultural practices, or other
factors, may have atypical or
disproportionately high and adverse
human health impacts or environmental
effects from exposure to the pesticides
discussed in this document, compared
to the general population.
I. General Information
II. What action is the Agency taking?
EPA is announcing receipt of a
pesticide petition filed under section
408 of the Federal Food, Drug, and
Cosmetic Act (FFDCA), 21 U.S.C. 346a,
requesting the establishment or
modification of regulations in 40 CFR
part 180 for residues of pesticide
chemicals in or on various food
commodities. The Agency is taking
public comment on the request before
responding to the petitioner. EPA is not
proposing any particular action at this
time. EPA has determined that the
pesticide petition described in this
document contains data or information
prescribed in FFDCA section 408(d)(2),
21 U.S.C. 346a(d)(2); however, EPA has
not fully evaluated the sufficiency of the
submitted data at this time or whether
the data supports granting of the
pesticide petition. After considering the
public comments, EPA intends to
evaluate whether and what action may
be warranted. Additional data may be
needed before EPA can make a final
determination on this pesticide petition.
Pursuant to 40 CFR 180.7(f), a
summary of the petition that is the
subject of this document, prepared by
the petitioner, is included in a docket
EPA has created for this rulemaking.
The docket for this petition is available
at https://www.regulations.gov.
As specified in FFDCA section
408(d)(3), 21 U.S.C. 346a(d)(3), EPA is
publishing notice of the petition so that
the public has an opportunity to
comment on this request for the
establishment or modification of
regulations for residues of pesticides in
or on food commodities. Further
information on the petition may be
obtained through the petition summary
referenced in this unit.
A. Does this action apply to me?
[EPA–HQ–OPP–2019–0041; FRL–10001–11]
You may be potentially affected by
this action if you are an agricultural
producer, food manufacturer, or
pesticide manufacturer. The following
list of North American Industrial
Classification System (NAICS) codes is
not intended to be exhaustive, but rather
provides a guide to help readers
determine whether this document
applies to them. Potentially affected
entities may include:
• Crop production (NAICS code 111).
• Animal production (NAICS code
112).
• Food manufacturing (NAICS code
311).
• Pesticide manufacturing (NAICS
code 32532).
Environmental Protection
Agency (EPA).
ACTION: Notice of filing of petition and
request for comment.
AGENCY:
This document announces the
Agency’s receipt of an initial filing of a
pesticide petition requesting the
establishment or modification of
regulations for residues of pesticide
chemicals in or on various commodities.
DATES: Comments must be received on
or before November 27, 2019.
ADDRESSES: Submit your comments,
identified by docket identification (ID)
number by one of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Do not submit electronically any
information you consider to be
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute.
• Mail: OPP Docket, Environmental
Protection Agency Docket Center (EPA/
DC), (28221T), 1200 Pennsylvania Ave.
NW, Washington, DC 20460–0001.
• Hand Delivery: To make special
arrangements for hand delivery or
delivery of boxed information, please
follow the instructions at https://
www.epa.gov/dockets/contacts.html.
Additional instructions on commenting
or visiting the docket, along with more
information about dockets generally, is
available at https://www.epa.gov/
dockets.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
khammond on DSKJM1Z7X2PROD with PROPOSALS
contact person is: Office of Pesticide
Programs, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460–0001. As part of
the mailing address, include the contact
person’s name, division, and mail code.
The division to contact is listed at the
end of each pesticide petition summary.
SUPPLEMENTARY INFORMATION:
40 CFR Part 180
Receipt of a Pesticide Petition Filed for
Residues of Pesticide Chemicals in or
on Various Commodities (September
2019)
Michael Goodis, Registration Division
(7505P), main telephone number: (703)
305–7090, email address:
RDFRNotices@epa.gov; or Robert
McNally, Biopesticides and Pollution
Prevention Division (7511P), main
telephone number: (703) 305–7090,
email address: BPPDFRNotices@
epa.gov. The mailing address for each
VerDate Sep<11>2014
16:25 Oct 25, 2019
Jkt 250001
57685
B. What should I consider as I prepare
my comments for EPA?
1. Submitting CBI. Do not submit this
information to EPA through
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.
2. Tips for preparing your comments.
When preparing and submitting your
comments, see the commenting tips at
https://www.epa.gov/dockets/
comments.html.
3. Environmental justice. EPA seeks to
achieve environmental justice, the fair
treatment and meaningful involvement
of any group, including minority and/or
low-income populations, in the
development, implementation, and
enforcement of environmental laws,
regulations, and policies. To help
address potential environmental justice
issues, the Agency seeks information on
PO 00000
Frm 00031
Fmt 4702
Sfmt 4702
A. Amended Tolerances for Non-Inerts
1. PP 9E8771. (EPA–HQ–OPP–2019–
0460). The Interregional Research
Project No. 4 (IR–4), Rutgers, The State
University of New Jersey, 500 College
Road East, Suite 201 W, Princeton, NJ
08540, proposes upon establishment of
tolerances referenced in this document
under ‘‘New Tolerances’’ for PP#
9E8771, to remove existing tolerances in
40 CFR 180.679 for residues of the
insecticide flupyradifurone, 4-[[(6chloro-3-pyridinyl)methyl](2,2-
E:\FR\FM\28OCP1.SGM
28OCP1
]]>Agencies
[Federal Register Volume 84, Number 208 (Monday, October 28, 2019)]
[Proposed Rules]
[Pages 57677-57685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23379]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2019-0136; FRL-10001-36-OAR]
Renewable Fuel Standard Program: Standards for 2020 and Biomass-
Based Diesel Volume for 2021, and Response to the Remand of the 2016
Standards; Supplemental Notice of Proposed Rulemaking
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In a July 29, 2019 notice of proposed rulemaking,
Environmental Protection Agency (EPA) proposed percentage standards for
four categories of renewable fuel that would apply to obligated parties
in 2020 under the Renewable Fuel Standard. This action takes into
consideration certain comments received in response to the proposed
rule. Based on these comments and additional information, EPA is
issuing a supplemental proposal and requests comment on adjustments to
the percentage standards for 2020 that result from the amended
definitions of two of the terms used to calculate the percentage
standards. We are proposing to project the volume of gasoline and
diesel that will be exempt in 2020 due to small refinery exemptions
based on a three-year average of the relief recommended by the
Department of Energy (DOE). From 2016-2018 the relief recommended by
the DOE would have resulted in a reduction to the renewable volume
obligation of approximately 770 million RINs per year. The amended
definitions proposed in this rule would effectively increase the
percentage standards that apply to non-exempt obligated parties to
offset future small refinery exemptions and help ensure that the
required volumes are met.
DATES:
Comments: Comments must be received on or before November 29, 2019.
Public Hearing: EPA will hold a public hearing will be held on
October 30, 2019, at the location noted below under ADDRESSES. The
hearing will begin at 9:00 a.m. and end when all parties present who
wish to speak have had an opportunity to do so. Parties wishing to
testify at the hearing should notify the contact person listed under
FOR FURTHER INFORMATION CONTACT by October 24, 2019. Additional
information regarding the hearing appears below under SUPPLEMENTARY
INFORMATION.
ADDRESSES: You may send your comments, identified by Docket ID No. EPA-
HQ-OAR-2019-0136, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov
(our preferred method) Follow the online instructions for submitting
comments.
Mail: U.S. Environmental Protection Agency, EPA Docket
Center, Office of Air and Radiation Docket, Mail Code 28221T, 1200
Pennsylvania Avenue NW, Washington, DC 20460.
Hand Delivery/Courier: EPA Docket Center, WJC West
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004.
The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m.,
Monday-Friday (except Federal Holidays).
Instructions: All submissions received must include the Docket ID
No. for this rulemaking. Comments received may be posted without change
to https://www.regulations.gov, including any personal information
provided. For the full EPA public comment policy, information about CBI
or multimedia submissions, and general guidance on making effective
comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.
Hearing: The hearing will be held at the following location: Ann
Arbor Marriott Ypsilanti at Eagle Crest, 1275 S. Huron St., Ypsilanti,
MI 48197 (telephone number (734) 487-2000). A complete set of documents
related to the proposal will be available for public inspection through
the Federal eRulemaking Portal: https://www.regulations.gov, Docket ID
No. EPA-HQ-OAR-2019-0136. Documents can also be viewed at the EPA
Docket Center, located at 1301 Constitution Avenue NW, Room 3334,
Washington, DC between 8:30 a.m. and 4:30 p.m., Monday through Friday,
excluding legal holidays.
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; for questions regarding this
proposed action, email address: [email protected]; for
information regarding the public hearing and to register for the public
hearing, email address: [email protected].
SUPPLEMENTARY INFORMATION: Entities potentially affected by the July
29, 2019,
[[Page 57678]]
proposed rule,\1\ should it become final, are those involved with the
production, distribution, and sale of transportation fuels, including
gasoline and diesel fuel or renewable fuels such as ethanol, biodiesel,
renewable diesel, and biogas. Potentially regulated categories include:
---------------------------------------------------------------------------
\1\ 84 FR 36762 (July 29, 2019).
----------------------------------------------------------------------------------------------------------------
NAICS \1\ Examples of potentially regulated
Category codes SIC \2\ 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.
Industry................................... 221210 4925 Manufactured gas production and
distribution.
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 engage in activities
that may 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.
Hearing: The public hearing will provide interested parties the
opportunity to present data, views, or arguments concerning the
proposal (which can be found at https://www.epa.gov/renewable-fuel-standard-program/regulations-and-volume-standards-under-renewable-fuel-standard). EPA may ask clarifying questions during the oral
presentations but will not respond to the presentations at that time.
Written statements and supporting information submitted during the
comment period will be considered with the same weight as any oral
comments and supporting information presented at the public hearing.
Written comments must be received by the last day of the comment
period, as specified in this notice.
Outline
I. Overview
II. Consideration of Proposed Adjustments to the Percentage Standard
Calculations for 2020
A. Proposed Changes to the Projected Volume of Gasoline and
Diesel for Exempt Small Refineries
B. Projecting the Exempted Volume of Gasoline and Diesel in 2020
C. Example Calculation of Proposed Percentage Standards for 2020
III. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs
C. Paperwork Reduction Act (PRA)
D. Regulatory Flexibility Act (RFA)
E. Unfunded Mandates Reform Act (UMRA)
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation and Coordination with
Indian Tribal Governments
H. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
J. National Technology Transfer and Advancement Act (NTTAA)
K. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
IV. Statutory Authority
I. Overview
On July 29, 2019, EPA proposed ``Renewable Fuel Standard Program:
Standards for 2020 and Biomass-Based Diesel Volume for 2021, Response
to the Remand of the 2016 Standards, and Other Changes'' (``the July 29
proposal''). We proposed reductions in the statutory volume targets for
cellulosic biofuel, advanced biofuel, and total renewable fuel using
the cellulosic waiver authority in Clean Air Act (CAA) section
211(o)(7)(D). We also proposed percentage standards that would apply to
obligated parties in 2020 for each of the four categories of renewable
fuel (cellulosic biofuel, biomass-based diesel, advanced biofuel, and
total renewable fuel) based on the proposed volumes and a projection of
the volume of gasoline and diesel used in the U.S. in 2020.\2\
---------------------------------------------------------------------------
\2\ See 84 FR 36762 (July 29, 2019).
---------------------------------------------------------------------------
In response to the July 29 proposal, a number of stakeholders
provided comments on the proposed percentage standards for 2020.\3\
Some of these parties requested that we change our interpretation of
two terms used to calculate the percentage formula: The amount of
gasoline projected to be produced by exempt small refineries and small
refiners (collectively, ``exempt small refineries''), and the amount of
diesel projected to be produced by exempt small refineries. Rather than
interpreting these terms to refer to the projected production of
gasoline and diesel produced by refineries that have been exempted from
their 2020 RFS obligations at the time the 2020 annual rule is
finalized, many commenters stated that EPA should instead project the
volumes of gasoline and diesel that will be exempted for the 2020
compliance year and use these projected volumes in calculating the
percentage standards for 2020. In the July 29 proposal, we informed the
public that these issues were beyond the scope of that proposal.\4\ On
further consideration, we are issuing this supplemental proposal of a
method to address these issues.
---------------------------------------------------------------------------
\3\ See, e.g., comments from the Renewable Fuels Association
(Docket Item No. EPA-HQ-OAR-2019-0136-0281).
\4\ See 84 FR 36797 and fn. 165 (July 29, 2019).
---------------------------------------------------------------------------
Since the July 29 proposal, EPA has granted small refinery
exemptions (``SREs'') for 31 small refineries for the 2018 compliance
year.\5\ We believe these comments and the 2018 SREs are germane to our
approach for calculating the percentage standards for 2020. In light of
this additional information, and
[[Page 57679]]
in order to give all stakeholders an opportunity to consider potential
changes to the calculation of the percentage standards, we are issuing
this supplemental proposal. We are proposing to amend the definitions
of ``GEi'' and ``DEi'' in the RFS percentage
standard formula at 40 CFR 80.1405(c) to represent the projected
volumes of exempt gasoline and diesel in the compliance year (in this
case 2020), regardless of whether EPA has adjudicated exemption
petitions by the time of the final rule establishing the percentage
standards for that compliance year. These changes are intended to help
ensure that the renewable fuel volumes established in the action that
we take with regard to the July 29 proposal and this supplemental
proposal (the ``final rule'') are achieved. We request additional
comment on this proposed change. This action does not solicit comment
on any other aspect of the formula at 40 CFR 80.1405(c) or the July 29
proposal, nor are we soliciting comment on increasing the required
volume of renewable fuel to account for the reductions in the required
renewable fuel volumes that resulted from SRE decisions issued prior to
the 2020 compliance year.
---------------------------------------------------------------------------
\5\ EPA also denied SRE requests from 6 small refineries.
Petitions from 3 parties were declared ineligible or withdrawn, and
2 petitions were pending at the time EPA issued this supplemental
proposal. More information about the number of SREs granted and the
volume of RINs not required to be retired as a result of those
exemptions can be found at https://www.epa.gov/fuels-registration-reporting-and-compliance-help/rfs-small-refinery-exemptions.
---------------------------------------------------------------------------
II. Consideration of Proposed Adjustments to the Percentage Standard
Calculations for 2020
In the July 29 proposal, we proposed percentage standards for each
of the four categories of renewable fuel based on the volumes that
resulted from the exercise of the cellulosic waiver authority and
projections of the volume of gasoline and diesel used in the U.S. in
2020.\6\ We received comments on that proposal suggesting that, in
determining the percentage standards for 2020, we should project the
volume of gasoline and diesel produced by small refineries that will be
exempted from their renewable volume obligations in 2020.\7\ In light
of these comments and the recent SREs, we are proposing new definitions
for two of the terms used in calculating the percentage standards for
2020 to account for the projected volume of gasoline and diesel
produced by small refineries that will be exempted from their renewable
volume obligations in 2020.
---------------------------------------------------------------------------
\6\ See Section VIII of the July 29 proposal for more detail on
the proposed percentage standard calculations.
\7\ See, e.g., comments from the Renewable Fuels Association
(Docket Item No. EPA-HQ-OAR-2019-0136-0281).
---------------------------------------------------------------------------
A. Proposed Changes to the Projected Volume of Gasoline and Diesel for
Exempt Small Refineries
The renewable fuel standards are expressed as volume percentages
and those volume percentages are used by each obligated party to
determine their Renewable Volume Obligations (RVOs). These percentage
standards are calculated by EPA using the volumes of renewable fuel
established in the annual rules following any reductions made using the
cellulosic waiver authority and/or the general waiver authority. The
formulas used to calculate the percentage standards applicable to
producers and importers of gasoline and diesel are provided in 40 CFR
80.1405(c). The formulas rely on estimates of the volumes of gasoline
and diesel fuel, for both highway and nonroad uses, which are projected
to be used in the year in which the standards will apply. The formula
for the percentage standard calculation for total renewable fuel,
including the definitions of the terms, is shown below. The formulas
for the other three percentage standards follow the same format, with
the numerator of the fraction replaced with the annual volume of
cellulosic biofuel, biomass-based diesel, and advanced biofuel,
respectively.
[GRAPHIC] [TIFF OMITTED] TP28OC19.000
Where:
StdRF,i = The renewable fuel standard for year i, in
percent.
RFVRF,i = Annual volume of renewable fuel required by 42
U.S.C. 7545(o)(2)(B) for year i, in gallons.
Gi = Amount of gasoline projected to be used in the 48
contiguous states and Hawaii, in year i, in gallons.
Di = Amount of diesel projected to be used in the 48
contiguous states and Hawaii, in year i, in gallons.
RGi = Amount of renewable fuel blended into gasoline that
is projected to be consumed in the 48 contiguous states and Hawaii,
in year i, in gallons.
RDi = Amount of renewable fuel blended into diesel that
is projected to be consumed in the 48 contiguous states and Hawaii,
in year i, in gallons.
GSi = Amount of gasoline projected to be used in Alaska
or a U.S. territory, in year i, if the state or territory has opted-
in or opts-in, in gallons.
RGSi = Amount of renewable fuel blended into gasoline
that is projected to be consumed in Alaska or a U.S. territory, in
year i, if the state or territory opts-in, in gallons.
DSi = Amount of diesel projected to be used in Alaska or
a U.S. territory, in year i, if the state or territory has opted-in
or opts-in, in gallons.
RDSi = Amount of renewable fuel blended into diesel that
is projected to be consumed in Alaska or a U.S. territory, in year
i, if the state or territory opts-in, in gallons.
GEi = The amount of gasoline projected to be produced by
exempt small refineries and small refiners, in year i, in gallons in
any year they are exempt per Sec. Sec. 80.1441 and 80.1442.
DEi = The amount of diesel fuel projected to be produced
by exempt small refineries and small refiners in year i, in gallons,
in any year they are exempt per Sec. Sec. 80.1441 and 80.1442.
Historically, EPA has interpreted the terms referring to the amount
of gasoline and diesel projected to be produced by exempt small
refineries (terms GEi and DEi in the equation
above) to refer to the amount of gasoline and diesel projected to be
produced by small refineries that have already been granted exemptions
from their obligations prior to issuing the final rule for the relevant
compliance year.\8\ As a result of this interpretation, any SREs
granted after we issue the annual rule containing the percentage
standards for that year effectively reduces the required volume of
renewable fuel for that year. For example, in August 2019 we granted 31
SREs for the 2018 compliance year after the percentage standards for
2018 had been established.\9\ These SREs reduced the obligated volume
of gasoline and diesel for 2018 by 13.42 billion gallons, effectively
reducing the required volume of total renewable fuel for 2018 by 1.43
billion RINs.
---------------------------------------------------------------------------
\8\ See, e.g., 84 FR 36797 (July 29, 2019).
\9\ The percentage standards for 2018 were established in
December 2017 (82 FR 58486, December 12, 2017).
---------------------------------------------------------------------------
In comments on the July 29 proposal, many commenters requested that
EPA adopt a different interpretation of the terms for the amount of
gasoline and diesel projected to be produced by exempt small refineries
in the existing
[[Page 57680]]
percentage standard formula.\10\ Many commenters requested that these
terms should refer to a projection of the exempted volume of gasoline
and diesel produced by small refineries, regardless of whether EPA had
already adjudicated such exemption petitions by the time of the final
rule. These commenters argued that this interpretation of the
regulations is reasonable and better implements the statutory
requirement that EPA must ``ensure'' the renewable fuel volumes are
met. Some commenters suggested that adjusting the percentage standards
formula is more important now than in earlier years of the program as
we have recently granted exemptions for more significant volumes of
gasoline and diesel, resulting in applicable volumes that are not being
met at the time of compliance.\11\
---------------------------------------------------------------------------
\10\ See, e.g., comments from the Renewable Fuels Association
(Docket Item No. EPA-HQ-OAR-2019-0136-0281).
\11\ See, e.g., comments from Growth Energy (Docket Item No.
EPA-HQ-OAR-2019-0136-0312).
---------------------------------------------------------------------------
The comments described above raise issues similar to those raised
by a pending petition for administrative reconsideration.\12\ That
petition, filed by parties who also commented on the July 29 proposal,
also asked EPA to reconsider our approach to accounting for exempted
volumes through the formula at 40 CFR 80.1405(c). In response to this
petition, EPA is undertaking a process to reconsider this issue;
however, we are doing so under our inherent authority to revise or
amend a rulemaking.\13\
---------------------------------------------------------------------------
\12\ ``Petition for Reconsideration of 40 CFR 80.1405(c), EPA
Docket No. EPA-HQ-OAR-2005-0161, promulgated in 75 FR 14670 (Mar.
26, 2010); Petition for Reconsideration of Periodic Reviews for the
Renewable Fuel Standard Program, 82 FR 58364 (Dec. 12, 2017)'' (June
4, 2018).
\13\ The petition asserted that reconsideration was required
under CAA section 307(d)(7)(B). Consistent with caselaw and recent
representations by the petitioners, we do not believe that the
reconsideration criteria under CAA section 307(d)(7)(B) have been
met; we instead are treating the petition as a petition to revise or
amend a rulemaking. See EPA's Sur-Reply in Opp. To Petr's Mot. to
Lift Stay of Proceedings, D.C. Cir. No. 18-1154, ECF No. 1807187, 3
(Sept. 19, 2019); Petr's Reply in Further Support of Their Mot. to
Lift Stay of Proceedings, D.C. Cir. No. 18-1154, ECF No. 1806347, 3
n.1 (Sept. 12, 2019); Pet. for Rev., D.C. Cir. No. 19-1201, ECF No.
1808877, 2 n.2 (Sept. 27, 2019). Regardless, we note that we are
providing notice and a public hearing followed by a 30-day comment
period, consistent with CAA section 307(d) procedures. We also take
no position today on whether this administrative petition and the
related judicial petitions meet the ``grounds arising after''
requirements, under CAA section 307(b)(1) and relevant caselaw, to
challenge prior EPA rulemakings.
---------------------------------------------------------------------------
We are proposing to change the definitions of the two terms in the
percentage standard formula at 40 CFR 80.1405(c), GEi and
DEi, to represent a projection of the exempted volume of
gasoline and diesel, regardless of whether we have adjudicated
exemptions for that year by the time of the final rule establishing the
percentage standards for the four renewable fuel types. We propose that
the term ``GEi'', representing the volume of exempt
gasoline, be defined as ``the total amount of gasoline projected to be
exempt in year i, in gallons, per Sec. Sec. 80.1441 and 80.1442.'' We
similarly propose that the term ``DEi'', representing the
volume of exempt diesel, be defined as ``the total amount of diesel
projected to be exempt in year i, in gallons, per Sec. Sec. 80.1441
and 80.1442.''
While the statute does not specifically require EPA to redistribute
exempted volumes in this manner, we believe that this is a reasonable
interpretation of our authority pursuant to the statute under Chevron
v. NRDC,\14\ especially in light of our authority to ``ensure'' that
the renewable fuel volumes are met.\15\ We also acknowledge that this
supplemental proposal, if finalized, would reflect a change in policy
direction as described in FCC v. Fox.\16\
---------------------------------------------------------------------------
\14\ Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467
U.S. 837, 842-44 (1984).
\15\ See CAA section 211(o)(2)(A)(i), (2)(A)(iii)(I), (3)(B)(i);
see also CAA section 301(a).
\16\ FCC v. Fox Television Stations, Inc., 556 U.S. 502, 515
(2009).
---------------------------------------------------------------------------
We believe the newly proposed definitions are a reasonable measure
to appropriately account for volumes that may become exempted after the
promulgation of the final rule establishing the percentage standards
and furthers Congressional intent to ``ensure'' the renewable fuel
volumes are met. In other words, should we grant SREs without
accounting for them in the percentage formula, those exemptions would
effectively reduce the volumes of renewable fuel required by the RFS
program, potentially impacting the volume of renewable fuel used in the
U.S. By contrast, were we to adopt this proposed change to the
percentage standards for 2020, the percentage standard for each
category of renewable fuel would increase (see Section II.C for example
calculations). These higher percentage standards would have the effect
of ensuring that the required volumes of renewable fuel are met when
small refineries are granted exemptions from their 2020 obligations,
provided EPA's projection of the amount of gasoline and diesel produced
by exempt small refineries in 2020 is accurate. We acknowledge the
uncertainty in the projection, a topic we discuss further in the next
section.
We also believe that accounting in the percentage formula for a
projection of volumes that would be exempted after the final rule is
particularly appropriate where those volume are projected to constitute
a significant portion of the total volume of obligated fuel as
established in the final rule. This has occurred in recent years but
did not occur in the first years of the program when we first
established the regulatory definitions and interpretations.
We solicit comment on other formulations of these definitions in
order to accurately describe our intent that these terms represent a
projection of the volume of gasoline and diesel produced by exempt
small refineries, regardless of whether EPA had already adjudicated
those exemptions by the time of the final rule.
B. Projecting the Exempted Volume of Gasoline and Diesel in 2020
Adoption of the proposed revised definitions of the terms referring
to the amount of gasoline and diesel produced by exempt small
refineries, as discussed in Section II.A, would require that we
determine how to project the exempted volumes of these fuels in 2020.
Although subject to uncertainty, this projection would affect the
percentage standards and thus the actual volume of renewable fuel
required to be used in 2020. If we over-project the volume of gasoline
and diesel produced by exempt small refineries in 2020, the actual
required volumes of renewable fuel will be higher than the volumes used
in calculating the percentage standards. By contrast, if we under-
project the volume of exempted gasoline and diesel, the actual required
volumes of renewable fuel will be lower than the volumes used in
calculating the percentage standards.
We acknowledge that there is uncertainty with projecting the
exempted volume for 2020, as petitions for 2020 SREs have not yet been
submitted to or evaluated by the Department of Energy (DOE) or EPA. EPA
independently evaluates SRE petitions while taking DOE's recommendation
into account and has discretion to provide relief that is different
than the DOE recommendation. In 2020 we anticipate granting partial
exemptions where such exemptions are appropriate. This is an approach
we could have taken in response to recommendations from DOE in recent
years, which included partial exemption recommendations on some
applications. We therefore believe it is appropriate to consider the
exempt volumes of gasoline and diesel in previous years had EPA
followed DOE's recommendations without deviation. We believe the
approach described
[[Page 57681]]
above is appropriate for two independent reasons.
First, in prior years, EPA has taken different approaches in
evaluating petitions. For instance, in the EPA final action, the August
9, 2019, Memorandum Decision, we granted or denied 36 then-pending SRE
petitions for the 2018 compliance year.\17\ We granted full exemptions
to petitioners where DOE either recommended full or 50% relief. That
is, in cases where DOE found a small refinery experienced either
disproportionate impacts or viability impairment, EPA found the small
refinery experienced disproportionate economic hardship and granted a
full exemption. By contrast, in earlier years of the program, we denied
petitions and provided no exemption in certain cases where DOE
recommended a 50% exemption, finding that disproportionate economic
hardship existed only where the small refinery experienced both
disproportionate impacts and viability impairment.\18\ The proposed
approach to projection, then, takes a middle ground between these prior
approaches, and is a reasonable estimate of the aggregate expected
exempted volume in 2020.
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\17\ ``Decision on 2018 Small Refinery Exemption Petitions,''
Memorandum from Anne Idsal, Acting Assistant Administrator, Office
of Air and Radiation to Sarah Dunham, Director, Office of
Transportation and Air Quality. August 9, 2019 (``August 9
Memorandum Decision'').
\18\ See, e.g., Hermes Consol., LLC v. EPA, 787 F.3d 568, 575
(D.C. Cir. 2015).
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Second, this approach approximates our intended approach for
adjudicating 2020 SRE petitions. The statute directs EPA to make an
independent decision as to SRE petitions based on DOE's recommendation
and other economic factors. While final decisions on 2020 SREs must
await EPA's receipt and adjudication of those petitions, we generally
have the statutory authority to issue a final decision consistent with
DOE's recommendation following our own review and analysis.\19\ This
reading of the statute is consistent with congressional guidance to DOE
\20\ and EPA.\21\ Consistent with that guidance and since 2014, DOE has
also recommended 50% exemptions as it deemed appropriate.
---------------------------------------------------------------------------
\19\ EPA retains the authority to deviate from DOE's
recommendation based upon ``other economic factors,'' refinery-
specific information, and other persuasive evidence that EPA should
reach a different outcome. See CAA section 211(o)(9)(B)(ii).
\20\ See Consolidated Appropriations Act, 2016, Public Law 114-
113 (2015), Explanatory Statement to Senate amendment to H.R. 2029
Military Construction and Veterans Affairs and Related Agencies
Appropriations Act, 2016, Division D-Energy and Water Development
and Related Agencies Appropriations Act, 2016, available at https://docs.house.gov/meetings/RU/RU00/20151216/104298/HMTG-114-RU00-20151216-SD005.pdf. Congress in this Statement directed DOE, under
certain circumstances, ``to recommend to the EPA Administrator a 50
percent waiver of RFS requirements for the [small refinery]
petitioner.'' Id. at 35.
\21\ S. Rep. 114-281. See also Consolidated Appropriations Act,
2019, Public Law 116-6 (2019), H. Rep. 116-9 at 741, continuing the
directive contained in Senate Report 114-281. A recent Senate Report
reiterated: ``The [Environmental Protection] Agency is reminded
that, regardless of the Department of Energy's recommendation,
additional relief may be granted if the Agency believes it is
warranted.'' Sen. Rep. 116-123, Department of the Interior,
Environment, and Related Agencies Appropriations Bill, 2020, Report
Accompanying Sen. 2580, at 87-88 (Sept. 26, 2019) (again
``continu[ing] the directive contained in Senate Report 114-281
related to small refinery relief''), available at https://www.congress.gov/116/crpt/srpt123/CRPT-116srpt123.pdf. This
guidance, read together with that discussed in the previous
footnote, supports the interpretation that DOE has authority to
recommend partial exemptions for particular small refineries, and
that EPA has discretion, to the extent supported by the record
before it, either to accept that recommendation and grant a partial
exemption, or to depart from that recommendation.
---------------------------------------------------------------------------
We acknowledge that in the August 9 Memorandum Decision, we stated
that the ``best interpretation'' of the statute was that EPA should
either grant or deny petitions in full, and ``not grant partial
relief.'' Specifically, we observed that the statute provided for
exemptions as an ``extension of the exemption under subparagraph (A)'',
where subparagraph (A) stated that the RFS program requirements ``shall
not apply to small refineries under calendar year 2011.'' \22\ We had
implemented the statutory pre-2011 exemption as a full exemption for
all qualifying small refineries. Thus, we concluded that, under this
interpretation, ``when Congress authorized the Administrator to provide
an `extension' of that exemption for the reason of [disproportionate
economic hardship], Congress intended that extension to be a full, and
not partial, exemption.'' \23\
---------------------------------------------------------------------------
\22\ CAA section 211(o)(9)(B); CAA section 211(o)(9)(A).
\23\ August 9 Memorandum Decision at 2.
---------------------------------------------------------------------------
We believe, however, that this is not the only reasonable way to
adjudicate exemption petitions. Had Congress spoken directly to the
issue of the amount of relief EPA could provide to small refineries,
EPA would be bound by that directive. However, the statute is silent
with respect to EPA's authority to issue partial exemptions. Nothing in
the statute directly addresses this issue. No statutory language exists
characterizing the scope of an exemption; there are no terms employed
such as ``partial'' or ``full.''
We think there is another reasonable reading of this provision of
the statute besides the one articulated in the August 9 Memorandum
Decision. Again, there we stated that we could provide full relief to
small refineries for which DOE recommends 50% relief.\24\ At the same
time, it is also reasonable to construe the statute to allow EPA to
issue partial exemptions.\25\
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\24\ It could also be appropriate for EPA to deny an exemption
in some cases where DOE recommends 50% relief, as we did in earlier
years of the program.
\25\ EPA solicits comment on whether the interpretation set
forth in the August 9 Memorandum Decision is indeed the ``best''
interpretation. EPA notes in this regard that the ultimate question
is whether the statutory interpretation under which it operates is a
reasonable one.
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Notably, EPA may determine that only partial relief is warranted
based on a particular small refinery's circumstances. In that case, it
is reasonable for the level of relief that EPA grants to reflect that
determination. Nowhere does Congress indicate that EPA must take an
all-or-nothing approach. Specifically, nothing obligates EPA to provide
full relief where we find that only partial relief is warranted.
For purposes of making the projection of the aggregate exempted
volume of gasoline and diesel in 2020, we propose to adopt this
interpretation of the statute, under which EPA has the authority to
grant a partial exemption to a small refinery under appropriate
circumstances.\26\ Were we to finalize this approach, we would, in
projecting the exempted volume, depart from the interpretation taken in
the August 9 Memorandum Decision, under which EPA ``shall either grant
or deny petitions for small refinery hardship in full, and not grant
partial relief.'' \27\ We propose to adopt this new approach for
several reasons. As already noted, this new policy would allow EPA to
ensure that the level of relief that it grants reflect the
determination it makes as to whether full or partial relief is
appropriate based on a particular small refinery's disproportionate
economic hardship. This allows EPA to more precisely calibrate its RFS
policy, and to strike an appropriate balance between furthering the
production and use of renewable fuels while granting relief to small
refineries that meet the statutory criteria. This balance, moreover, is
also appropriate in light of the above-cited recent Congressional
direction.\28\ Furthermore, we note again that even were EPA to deviate
from this policy in
[[Page 57682]]
adjudicating 2020 SRE petitions,\29\ this approach to projection
nonetheless provides a reasonable estimate of the aggregate exempted
volume at this time. All projections are inherently uncertain, but this
projection reflects a reasonable projection of the future.
---------------------------------------------------------------------------
\26\ See Chevron, 467 U.S. at 842-44.
\27\ August 9 Memorandum Decision at 2. See FCC, 556 U.S. at
515.
\28\ See supra notes 20 and 21.
\29\ For instance, EPA may deviate from DOE's recommendation
where we find that other economic factors compel a different outcome
than what DOE recommended. Other factors, such as judicial
resolution of pending decisions or subsequent Congressional
direction, could also potentially affect EPA's SRE policy going
forward.
---------------------------------------------------------------------------
Further, although we acknowledge the difficulty of making a precise
projection,\30\ this inherent uncertainty does not preclude us from
taking the approach set forth in this supplemental proposal. To the
extent our prior statements suggested we did not believe such a
projection was appropriate, we propose to change course.\31\ The
statute impliedly contemplates EPA's authority to make this projection,
as it requires EPA to promulgate standards by November 30 of the prior
year to ``ensure[ ]'' that the renewable fuel volumes are met,\32\ but
authorizes small refineries to petition for an exemption based on
disproportionate economic hardship ``at any time.'' \33\ This
projection, moreover, is hardly unique in the RFS program as Congress
required EPA to make numerous projections to implement the program.\34\
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\30\ See EPA's Br., Doc No. 1757157, D.C. Cir. No. 17-1258, AFPM
v. EPA (Oct. 25, 2018).
\31\ See FCC, 556 U.S. at 515.
\32\ CAA section 211(o)(3)(B)(i).
\33\ CAA section 211(o)(9)(B)(i).
\34\ See, e.g., CAA section 211(o)(7)(D) (projection of the
volume of cellulosic biofuel production); (o)(3)(A) (projection of
the volumes of transportation fuel, biomass-based diesel, and
cellulosic biofuel).
---------------------------------------------------------------------------
Today's approach, moreover, avoids the problems we previously
identified with projecting small refinery exemptions. Notably, we are
projecting the aggregate exempted volume in 2020. We thus need not
wrestle with the difficulties of predicting precisely which refineries
will apply or the economic circumstances of specific refineries in
2020. We only need to estimate the total exempted volume. Moreover, we
retain authority to adjust the standards as appropriate should our
approach to 2020 small refinery exemptions significantly change from
what we anticipate it will be as it is set forth here.\35\ Finally, we
have the benefit of additional experience administering the RFS
program, knowledge of the relatively high levels of exempted volumes in
prior years, and a proposed approach for how we intend to adjudicate
2020 small refinery exemption petitions that allows us to anticipate
with a high degree of probability that there will be a non-zero
aggregate exempted volume as a result of those petitions. Each of these
developments independently support making a non-zero projection of the
exempted volume in 2020.
---------------------------------------------------------------------------
\35\ See, e.g., Ams. for Clean Energy v. EPA, 864 F.3d 691, 718
(D.C. Cir. 2017) (upholding EPA's authority to promulgate late
renewable fuel requirements so long as EPA reasonably balances the
burdens and benefits of its approach).
---------------------------------------------------------------------------
To project the exempted volume under this methodology, it is
instructive to look back at what the exempted volumes of gasoline and
diesel in previous years would have been had EPA followed DOE's
recommendations, including granting partial exemptions. These volumes,
along with the Renewable Volume Obligation (RVO) that would have been
exempted, are shown in Table II.B-1.
Table II.B-1--Estimated Exempted Volume of Gasoline and Diesel and Estimated RVO Exempted by Compliance Year
Following DOE's Recommendations
----------------------------------------------------------------------------------------------------------------
Estimated exempted Estimated exempted Estimated RVO
Compliance year volume of gasoline volume of diesel exempted (million
(million gallons) (million gallons) RINs)
----------------------------------------------------------------------------------------------------------------
2015.......................................... 1,590 1,450 290
2016.......................................... 2,450 1,930 440
2017.......................................... 5,650 3,870 1020
2018.......................................... 4,620 3,270 840
----------------------------------------------------------------------------------------------------------------
As demonstrated in Table II.B-1, the volume of gasoline and diesel
that would have been exempted if EPA had followed DOE's recommendations
has varied significantly in previous years. This is because there are
many factors that affect the number of SREs that are granted in a given
year and those factors are inherently difficult to estimate with
precision. We believe that it is appropriate to use an average volume
of the gasoline and diesel that would have been exempted over a three-
year period as our projection of gasoline and diesel that will be
exempted in 2020, rather than the volume of gasoline and diesel that
would have been exempted in any single year, as it helps to average out
the effects of unique events or market circumstances that occurred in
individual years in the past that may or may not occur in 2020.
We propose to project the volume of gasoline and diesel that will
be exempted in 2020 per the proposed definitions described in Section
II.A consistent with our current intention for evaluating the 2020 SRE
petitions. While we cannot predict with certainty the approach that we
will in fact take once we have received and reviewed petitions, at this
time, we anticipate our evaluation will result in an exempted volume
that is on the aggregate consistent with DOE's recommendations. The
average volume of these fuels that would have been exempted in 2016-
2018 if EPA had followed DOE's recommendations is 4,240 and 3,020
million gallons, for gasoline and diesel fuel, respectively. These
exempted volumes would have resulted in an average reduction to the RVO
of approximately 770 million RINs. This projection of exempted gasoline
and diesel would effectively increase the percentage standards that
apply to obligated parties to offset future SREs and help ensure that
the required volumes are met.
We also request comment on an alternative approach using the
average volume of gasoline and diesel that would have been exempted
from 2015-2017 (3,230 and 2,420 million gallons, respectively,
resulting in an average reduction to the RVO of approximately 580
million RINs) as our projection for the exempted volumes of gasoline
and diesel in 2020. We note that if for any reason we anticipate a
different approach to evaluating SRE petitions by the time of the final
rule, we may also consider adjusting our methodology for projecting the
exempt volumes of gasoline and diesel accordingly.
C. Example Calculation of Proposed Percentage Standards for 2020
As described in Section II.A, the calculation of the applicable
percentage
[[Page 57683]]
standards would differ from that described in the July 29 proposal only
in the definition and values of those terms representing projections of
gasoline and diesel production by exempt small refineries. Rather than
being assigned a value of zero as in the July 29 proposal, they would
be assigned a value equal to our projection of the exempted volume of
gasoline and diesel as discussed in Section II.B in accordance with our
proposed definitions for GEi and DEi.
The values of all the variables used to calculate the applicable
percentage standards are shown in Table II.C-1 for both the proposed
approach to estimating 2020 SREs as well as the alternative on which we
are seeking comment. All formulas for calculating the percentage
standards are provided in 40 CFR 80.1405(c), subject to this action's
proposed revision.
Table II.C-1--Example Values for Terms in Calculation of 2020 Standards 36
[Billion gallons]
----------------------------------------------------------------------------------------------------------------
Alternative
Proposed values values based on
based on average average of 2015-
Term Description of 2016-2018 2017 estimated
estimated exemptions
exemptions
----------------------------------------------------------------------------------------------------------------
RFVCB.............................. Required volume of cellulosic biofuel 0.54 0.54
RFVBBD............................. Required volume of biomass-based 2.43 2.43
diesel.
RFVAB.............................. Required volume of advanced biofuel.. 5.04 5.04
RFVRF.............................. Required volume of renewable fuel.... 20.04 20.04
G.................................. Projected volume of gasoline......... 142.49 142.49
D.................................. Projected volume of diesel........... 56.77 56.77
RG................................. Projected volume of renewables in 14.58 14.58
gasoline.
RD................................. Projected volume of renewables in 2.48 2.48
diesel.
GS................................. Projected volume of gasoline for opt- 0 0
in areas.
RGS................................ Projected volume of renewables in 0 0
gasoline for opt-in areas.
DS................................. Projected volume of diesel for opt-in 0 0
areas.
RDS................................ Projected volume of renewables in 0 0
diesel for opt-in areas.
GE................................. Projected volume of exempt gasoline.. 4.24 3.23
DE................................. Projected volume of exempt diesel.... 3.02 2.42
----------------------------------------------------------------------------------------------------------------
As described in Section II.B, the values for GE and DE in Table
II.C-1 do not represent the SREs actually granted in the years cited,
but rather the SREs that would have been granted had EPA followed,
without deviation, the recommendations received from DOE following
their independent assessment of the information provided by each small
refinery. We updated the projected volumes of total gasoline and
diesel, and the renewable fuels contained within them, since the July
29 proposal to use volumes derived from values in the September 2019
version of EIA's Short-Term Energy Outlook. An estimate of fuel
consumed in Alaska, derived from the June 28, 2019, release of EIA's
State Energy Data System and based on the 2017 volumes contained
therein, was subtracted from the nationwide volumes. The required
volumes of renewable fuel used in Table II.C-1 are based on the July 29
proposal. These volumes have not been updated to reflect data available
since the July 29 proposal; however, we intend to adjust these volumes
to account for more recent information in the final rule.
---------------------------------------------------------------------------
\36\ See ``Calculation of supplemental proposed % standards for
2020'' in docket EPA-HQ-OAR-2019-0136.
---------------------------------------------------------------------------
Using the volumes shown in Table II.C-1, we have calculated two
versions of revised proposed applicable percentage standards for 2020
as shown in Table II.C-2. We have also included the percentage
standards from the July 29 proposal.
Table II.C-2--Example Percentage Standards for 2020
----------------------------------------------------------------------------------------------------------------
Alternative
Proposed values values based on
Proposed values based on average average of 2015-
in the July 29 of 2016-2018 2017 estimated
proposal estimated exemptions
(percent) exemptions (percent)
(percent)
----------------------------------------------------------------------------------------------------------------
Cellulosic biofuel..................................... 0.29 0.31 0.31
Biomass-based diesel................................... 1.99 2.08 2.06
Advanced biofuel....................................... 2.75 2.88 2.85
Renewable fuel......................................... 10.92 11.46 11.35
----------------------------------------------------------------------------------------------------------------
The percentage standards in the final rule will depend upon not
only the value of projected volume of exempt gasoline and diesel, which
could differ from those used above, but also the projected volumes of
gasoline and diesel produced by all refineries as well as the volume
requirements for renewable fuel. Our determination of all of these
values will be informed by the comments we received on the July 29
proposal and this supplemental proposal, as well as other information
that may become available.
[[Page 57684]]
III. 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 a significant regulatory action that was submitted
to the Office of Management and Budget (OMB) for review. Any changes
made in response to OMB recommendations have been documented in the
docket.
B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs
This action is expected to be an Executive Order 13771 regulatory
action. There are no quantified cost estimates for this supplemental
proposed rule because it does not change the applicable volumes
proposed in the July 29 proposal.
C. Paperwork Reduction Act (PRA)
This action does not impose any new information collection burden
under the PRA. OMB has previously approved the information collection
activities contained in the existing regulations and has assigned OMB
control numbers 2060-0637 and 2060-0640. The proposed revisions will
not impose new or different reporting requirements on regulated parties
than already exist for the RFS program.
D. 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, 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.
The small entities directly regulated by the RFS program are small
refiners, which are defined at 13 CFR 121.201. This supplemental
proposed rule does not change the applicable volumes proposed in the
July 29 proposal. Nor does it change the compliance flexibilities
currently offered to small entities under the RFS program (including
the SRE provisions we continue to implement). We have therefore
concluded that this action will have no net regulatory burden for
directly regulated small entities.
E. 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.
F. 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.
G. 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 will be implemented at the Federal
level and affects transportation fuel refiners, blenders, marketers,
distributors, importers, exporters, and renewable fuel producers and
importers. Tribal governments will be affected only to the extent they
produce, purchase, or use regulated fuels. Thus, Executive Order 13175
does not apply to this action.
H. 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 implements specific standards established by Congress
in statutes (CAA section 211(o)) and does not concern an environmental
health risk or safety risk.
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This action is not a ``significant energy action'' because it is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy. The RFS program and this rule are
designed to achieve positive effects on the nation's transportation
fuel supply, by increasing energy independence and security and
lowering lifecycle GHG emissions of transportation fuel.
J. National Technology Transfer and Advancement Act (NTTAA)
This rulemaking does not involve technical standards.
K. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
EPA believes that this action does not have disproportionately high
and adverse human health or environmental effects on minority
populations, low income populations, and/or indigenous peoples, as
specified in Executive Order 12898 (59 FR 7629, February 16, 1994).
This regulatory action does not affect the level of protection provided
to human health or the environment by applicable air quality standards.
This action does not relax the control measures on sources regulated by
the RFS regulations.
IV. Statutory Authority
Statutory authority for this action comes from sections 114, 203-
05, 208, 211, and 301 of the Clean Air Act, 42 U.S.C. 7414, 7522-24,
7542, 7545, and 7601.
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: October 15, 2019.
Andrew R. Wheeler,
Administrator.
For the reasons set forth in the preamble, EPA proposes to amend 40
CFR part 80 as follows:
PART 80--REGULATION OF FUELS AND FUEL ADDITIVES
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).
Subpart M--Renewable Fuel Standard
0
2. Amend Sec. 80.1405 by revising the equation in paragraph (c)
definitions of GEi and DEi to read as follows:
Sec. 80.1405 What are the Renewable Fuel Standards?
* * * * *
(c) * * *
GEi = The total amount of gasoline projected to be
exempt in year i, in gallons, per Sec. Sec. 80.1441 and 80.1442.
[[Page 57685]]
DEi = The total amount of diesel fuel projected to be
exempt in year i, in gallons, per Sec. Sec. 80.1441 and 80.1442.
* * * * *
[FR Doc. 2019-23379 Filed 10-25-19; 8:45 am]
BILLING CODE 6560-50-P
