Renewable Fuel Standard (RFS) Program: Extension of Compliance and Attest Engagement Reporting Deadlines, 67419-67424 [2021-25444]
Download as PDF
<![CDATA[
Federal Register / Vol. 86, No. 225 / Friday, November 26, 2021 / Proposed Rules
September 1, 2020 if it met the
applicable maximum allowable sulfur
content through August 31, 2020 at the
time it was stored.
This SIP revision to implement low
sulfur fuel oil provisions will reduce
regional haze and visibility impairment
in Pennsylvania. Additionally,
decreased emissions of SO2 will
contribute to the attainment and
maintenance, or both, of the SO2 and
PM2.5 NAAQS in Pennsylvania and the
MANE–VU region.
III. Proposed Action
EPA has determined that
Pennsylvania’s proposed SIP revisions
to 40 CFR 52.2020(c)(2), which
incorporate amendments made to
Article XXI, Air Pollution Control
§ 2104.10 will lower the maximum
allowable sulfur content limit in No. 2
fuel oil and lighter combusted or sold in
Allegheny County and aid in reducing
SO2 emissions. These emissions are a
cause of regional haze and reducing
them will help to attain or maintain the
SO2 and PM2.5 NAAQS. EPA is
proposing to approve the December 1,
2020 Pennsylvania SIP revision which
amends commercial No. 2 fuel oil and
lighter sulfur limits for combustion and
sale in Allegheny County. EPA is
soliciting public comments on the
issues discussed in this document.
These comments will be considered
before taking final action.
jspears on DSK121TN23PROD with PROPOSALS1
IV. Incorporation by Reference
In this document, EPA is proposing to
include in a final EPA rule regulatory
text that includes incorporation by
reference. In accordance with
requirements of 1 CFR 51.5, EPA is
proposing to incorporate by reference
Pennsylvania’s maximum allowable
sulfur content in commercial fuel oil
regulation as described in Section II of
this document. EPA has made, and will
continue to make, these materials
generally available through https://
www.regulations.gov and at the EPA
Region III Office (please contact the
person identified in the FOR FURTHER
INFORMATION CONTACT section of this
preamble for more information).
V. Statutory and Executive Order
Reviews
Under the CAA, the Administrator is
required to approve a SIP submission
that complies with the provisions of the
CAA and applicable Federal regulations.
42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions,
EPA’s role is to approve state choices,
provided that they meet the criteria of
the CAA. Accordingly, this action
merely approves state law as meeting
VerDate Sep<11>2014
16:58 Nov 24, 2021
Jkt 256001
Federal requirements and does not
impose additional requirements beyond
those imposed by state law. For that
reason, this proposed action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
Executive Orders 12866 (58 FR 51735,
October 4, 1993) and 13563 (76 FR 3821,
January 21, 2011);
• Does not impose an information
collection burden under the provisions
of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.);
• Is certified as not having a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.);
• Does not contain any unfunded
mandate or significantly or uniquely
affect small governments, as described
in the Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4);
• Does not have Federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• Is not subject to requirements of
section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
be inconsistent with the CAA; and
• Does not provide EPA with the
discretionary authority to address, as
appropriate, disproportionate human
health or environmental effects, using
practicable and legally permissible
methods, under Executive Order 12898
(59 FR 7629, February 16, 1994).
In addition, this proposed rule
regarding commercial fuel oil sulfur
limits for combustion and sale in
Allegheny County does not have tribal
implications as specified by Executive
Order 13175 (65 FR 67249, November 9,
2000), because the SIP is not approved
to apply in Indian country located in the
State, and EPA notes that it will not
impose substantial direct costs on tribal
governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Particulate matter, Regional
haze, Sulfur oxides.
Authority: 42 U.S.C. 7401 et seq.
PO 00000
Frm 00058
Fmt 4702
Sfmt 4702
67419
Dated: November 19, 2021.
Adam Ortiz,
Regional Administrator, Region III.
[FR Doc. 2021–25738 Filed 11–24–21; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2021–0793; FRL–8521.1–
02–OAR]
RIN 2060–AV57
Renewable Fuel Standard (RFS)
Program: Extension of Compliance
and Attest Engagement Reporting
Deadlines
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to modify
certain compliance dates under the
Renewable Fuel Standard (RFS)
program. First, EPA is proposing to
extend the RFS compliance reporting
deadline and the associated attest
engagement reporting deadline for the
2019 compliance year for small
refineries only. Second, EPA is
proposing to extend the RFS compliance
reporting deadline and the associated
attest engagement reporting deadline for
the 2020 and 2021 compliance years for
all obligated parties. Finally, EPA is
proposing to change the way in which
future RFS compliance and attest
engagement reporting deadlines are
determined.
SUMMARY:
Comments. Comments must be
received on or before January 3, 2022.
Public hearing. EPA will hold a
virtual public hearing on December 3,
2021. Please refer to the SUPPLEMENTARY
INFORMATION section for additional
information on the public hearing.
ADDRESSES: Comments. You may send
your comments, identified by Docket ID
No. EPA–HQ–OAR–2021–0793, by any
of the following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov (our
preferred method) Follow the online
instructions for submitting comments.
• Email: a-and-r-Docket@epa.gov.
Include Docket ID No. EPA–HQ–OAR–
2021–0793 in the subject line of the
message.
• Mail: U.S. Environmental
Protection Agency, EPA Docket Center,
Air Docket, Mail Code 28221T, 1200
Pennsylvania Avenue NW, Washington,
DC 20460.
DATES:
E:\FR\FM\26NOP1.SGM
26NOP1
jspears on DSK121TN23PROD with PROPOSALS1
67420
Federal Register / Vol. 86, No. 225 / Friday, November 26, 2021 / Proposed Rules
• Hand Delivery or Courier (by
scheduled appointment only): 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 confidential business
information (CBI) or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
Out of an abundance of caution for
members of the public and our staff, the
EPA Docket Center and Reading Room
are closed to the public, with limited
exceptions, to reduce the risk of
transmitting COVID–19. Our Docket
Center staff will continue to provide
remote customer service via email,
phone, and webform. We encourage the
public to submit comments via https://
www.regulations.gov or email, as there
may be a delay in processing mail and
faxes. Hand deliveries and couriers may
be received by scheduled appointment
only. For further information on EPA
Docket Center services and the current
status, please visit us online at https://
www.epa.gov/dockets.
EPA continues to carefully and
continuously monitor information from
the Centers for Disease Control and
Prevention (CDC), local area health
departments, and our Federal partners
so that we can respond rapidly as
conditions change regarding COVID–19.
Public hearing. The virtual public
hearing will be held on December 3,
2021. The hearing will begin at 10 a.m.
Eastern Time (ET) and end when all
parties who wish to speak have had an
opportunity to do so. All hearing
attendees (including even those who do
not intend to provide testimony) should
register for the public hearing by
November 30, 2021. Information on how
to register can be found at https://
www.epa.gov/renewable-fuel-standardprogram/proposed-extension-renewablefuel-standard-compliance-deadlines.
Additional information regarding the
hearing appears below under
SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT: For
questions regarding this action, contact
Karen Nelson, Office of Transportation
and Air Quality, Compliance Division,
Environmental Protection Agency, 2000
VerDate Sep<11>2014
16:58 Nov 24, 2021
Jkt 256001
Traverwood Drive, Ann Arbor, MI
48105; telephone number: (734) 214–
4657; email address: nelson.karen@
epa.gov. For questions regarding the
public hearing, contact Nick Parsons at
(734) 214–4479 or ASD-Registration@
epa.gov.
SUPPLEMENTARY INFORMATION:
Does this action apply to me?
Entities potentially affected by this
proposed rule are those involved with
the production, distribution, and sale of
transportation fuels, including gasoline,
diesel, and renewable fuels such as
ethanol, biodiesel, renewable diesel,
and biogas. Potentially affected
categories include:
Category
NAICS 1
code
Examples of
potentially
affected entities
Industry ....
Industry ....
324110
325193
Industry ....
325199
Industry ....
424690
Industry ....
424710
Industry ....
424720
Industry ....
221210
Industry ....
454319
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.
1 North
American
System (NAICS).
Industry
Classification
This table is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
affected by this action. This table lists
the types of entities that EPA is now
aware could potentially be affected by
this action. Other types of entities not
listed in the table could also be affected.
To determine whether your entity
would be affected by this action, you
should carefully examine the
applicability criteria in 40 CFR part 80.
If you have any questions regarding the
applicability of this action to a
particular entity, consult the person
listed in the FOR FURTHER INFORMATION
CONTACT section.
Participation in Virtual Public Hearing
Please note that EPA is deviating from
its typical approach because the
President has declared a national
emergency. Because of current CDC
recommendations, as well as state and
local orders for social distancing to limit
the spread of COVID–19, EPA cannot
PO 00000
Frm 00059
Fmt 4702
Sfmt 4702
hold in-person public meetings at this
time.
Information on how to register for the
hearing can be found at https://
www.epa.gov/renewable-fuel-standardprogram/proposed-extension-renewablefuel-standard-compliance-deadlines.
The last day to pre-register to speak at
the hearing will be November 30, 2021.
Each commenter will have 3 minutes
to provide oral testimony. 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 oral comments and supporting
information presented at the public
hearing.
Please note that any updates made to
any aspect of the hearing will be posted
online at https://www.epa.gov/
renewable-fuel-standard-program/
proposed-extension-renewable-fuelstandard-compliance-deadlines. While
EPA expects the hearing to go forward
as set forth above, please monitor the
website or contact the person listed in
the FOR FURTHER INFORMATION CONTACT
section to determine if there are any
updates. EPA does not intend to publish
a document in the Federal Register
announcing updates.
If you require the services of a
translator or special accommodations
such as audio description, please preregister for the hearing and describe
your needs by November 30, 2021. EPA
may not be able to arrange
accommodations without advance
notice.
Outline of This Preamble
I. Background and Proposed Extension of
Deadlines
A. Extension of the 2019 RFS Compliance
Reporting Deadline for Small Refineries
B. Extension of the 2020 and 2021 RFS
Compliance Reporting Deadline for All
Obligated Parties
C. Corresponding Attest Engagement
Reporting Deadlines
D. Annual Compliance and Attest
Engagement Reporting Deadlines Based
on Effective Date
II. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act
(UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
E:\FR\FM\26NOP1.SGM
26NOP1
Federal Register / Vol. 86, No. 225 / Friday, November 26, 2021 / Proposed Rules
H. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
I. National Technology Transfer and
Advancement Act (NTTAA) and 1 CFR
Part 51
J. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
III. Statutory Authority
jspears on DSK121TN23PROD with PROPOSALS1
I. Background and Proposed Extension
of Deadlines
The RFS regulations establish
deadlines for obligated parties with
renewable volume obligations (RVOs) to
submit annual compliance reports to
EPA, and later deadlines for the same
parties to submit associated attest
engagement reports. Under existing RFS
regulations, obligated parties must
submit compliance reports for each
calendar year by March 31 of the
following year, and the associated attest
engagements by June 1 of the following
year.1 On April 1, 2021, EPA extended
the deadlines for small refineries to
demonstrate compliance with their 2019
RFS obligations and for all obligated
parties to demonstrate compliance with
their 2020 RFS obligations.2 In that
same action, we also extended the
deadlines for the corresponding attest
engagements reports.3 As discussed in
Sections I.A through C, we are
proposing to again extend certain
reporting deadlines applicable to the
2019 and 2020 compliance years, and
additionally extending certain reporting
deadlines for the 2021 compliance year,
due to continued delay in the
promulgation of the 2021 RFS standards
and uncertainty around EPA’s small
refinery exemption (SRE) policy. We are
also proposing a new approach to
setting reporting deadlines for obligated
parties that would automatically
establish the annual compliance and
attest engagement reporting deadlines
for a given compliance year based on
the effective date of the subsequent
compliance year’s RFS standards, if
such a date is after the March 31
regulatory deadline. We discuss this
proposed approach in more detail in
Section I.D.
A. Extension of the 2019 RFS
Compliance Reporting Deadline for
Small Refineries
For small refineries, we are proposing
to further extend the 2019 compliance
reporting deadline to the next quarterly
reporting deadline that is after the
1 See
2 See
40 CFR 80.1451(a) and 80.1464(d).
86 FR 17073 (April 1, 2021).
3 Id.
VerDate Sep<11>2014
16:58 Nov 24, 2021
Jkt 256001
effective date of the 2021 RFS
percentage standards,4 in light of the
continued uncertainty surrounding
SREs under the RFS program.5 For
example, under this proposal, if the
final rule establishing the 2021
standards is published in the Federal
Register on March 1, 2022, the effective
date of the 2021 standards would be 60
days later (April 30, 2022), and the 2019
compliance reporting deadline for small
refineries would be June 1, 2022,
because that would be the next quarterly
reporting deadline after the effective
date of the 2021 standards. We are
proposing to tie the 2019 compliance
reporting deadline to the effective date
of the 2021 standards to allow for the
proper sequencing of deadlines such
that 2019 compliance would be
complete prior to 2020 compliance, and
2020 compliance would be complete
prior to 2021 compliance, given the
continued delay in promulgating the
2021 standards. EPA is still evaluating
SRE petitions consistent with the recent
case law, including those for 2019.6
On January 24, 2020, the U.S. Court
of Appeals for the Tenth Circuit issued
a decision in Renewable Fuels
Association v. EPA (RFA) invalidating
on multiple grounds three SREs granted
by EPA.7 The small refineries whose
SREs were invalidated by the court in
the RFA case sought rehearing from the
Tenth Circuit, which was denied on
April 7, 2020.8 Thus, the Tenth Circuit’s
decision was not final until after the
2019 compliance reporting deadline of
March 31, 2020, had already passed. On
September 4, 2020, the small refinery
intervenors in that suit filed a petition
for a writ of certiorari from the U.S.
Supreme Court, which was granted on
January 8, 2021, in HollyFrontier v.
RFA.9 On June 25, 2021, the Supreme
Court issued its opinion in
HollyFrontier.10 EPA is still considering
how to adjust its SRE policy in light of
these two judicial opinions, including
holdings from the RFA case that were
not appealed; for this reason, there is
4 The effective date of 2021 RFS percentage
standards is generally expected to be 60 days after
publication of the action establishing the standards
in the Federal Register.
5 A small refinery may petition EPA for an
exemption from its RFS obligations under 40 CFR
80.1441(e)(2).
6 More information about SREs and the number
of SRE petitions that EPA is currently evaluating is
available at https://www.epa.gov/fuels-registrationreporting-and-compliance-help/rfs-small-refineryexemptions.
7 Renewable Fuels Ass’n v. EPA, 948 F.3d 1206
(10th Cir. 2020) (RFA).
8 Order, RFA, No. 18–9533 (10th Cir. Apr. 7,
2020).
9 HollyFrontier Cheyenne Refining, LLC v.
Renewable Fuels Ass’n, 114 S.Ct. 2172 (2021).
10 Id. at 2181.
PO 00000
Frm 00060
Fmt 4702
Sfmt 4702
67421
still uncertainty regarding the 2019 SRE
petitions.
Therefore, we believe it appropriate to
further extend the 2019 annual
compliance reporting deadline for small
refineries. We believe that it is
appropriate to do so only for small
refineries because it is only their
compliance requirements that have been
affected by the recent HollyFrontier
decision. We are proposing to extend
this flexibility to all small refineries
regardless of whether they have an SRE
petition for 2019 pending before EPA
because those that do not may elect to
submit petitions in the future. All other
obligated parties’ compliance obligation
deadlines for 2019 have already passed
and remain unchanged.11
We recognize that some small
refineries, despite the previous
compliance reporting deadline
extension for 2019, have already
submitted their 2019 compliance
reports. However, we are proposing to
allow small refineries to revisit their
2019 compliance reports before their
new 2019 compliance reporting
deadline. This means that if a small
refinery carried forward a deficit to
demonstrate compliance for 2019 by
March 31, 2020, but later receives an
SRE for 2019 or retires RINs in
accordance with its RVOs, that initial
decision to carry forward a deficit will
not constitute a carry-forward deficit
(i.e., failing to meet the requirement to
retire sufficient RINs as described in 40
CFR 80.1427(a)(1)) that would make the
small refinery ineligible to do the same
for 2020 under 40 CFR 80.1427(b).
Small refineries that did not submit a
compliance report by March 31, 2020,
would need to submit a compliance
report to comply with the new 2019
compliance reporting deadline, unless
they receive an exemption for 2019.
This proposed deadline extension
would apply only to those parties who
meet the definition of small refinery in
Clean Air Act (CAA) section 211(o)(1)(k)
and 40 CFR 80.1441(e)(2)(iii) for the
2019 compliance year. Limiting the
extension in this way is appropriate
because only small refineries’
compliance obligations are affected by
the HollyFrontier and RFA opinions and
it is consistent with our eligibility
requirements regarding SREs. We
recognize that, in recent years, we have
determined that some parties who have
petitioned for SREs have been deemed
ineligible by EPA, often due to the
refinery’s throughput (i.e., more than
75,000 barrels of crude oil per day) or
11 The 2019 compliance and attest engagement
reporting deadlines were March 31, 2020, and June
1, 2020, respectively.
E:\FR\FM\26NOP1.SGM
26NOP1
67422
Federal Register / Vol. 86, No. 225 / Friday, November 26, 2021 / Proposed Rules
the nature of their business (i.e., not a
petroleum refinery). The parties that
EPA has found ineligible because they
do not meet the definition of small
refinery in recent years will similarly
not be eligible for the 2019 compliance
date extension for small refineries.
We note that all of the existing
regulatory flexibilities for small
refineries—including the ability to
satisfy up to 20 percent of their 2019
RVOs using 2018 carryover RINs under
40 CFR 80.1427(a)(5) and the ability to
carry forward a deficit from 2019 to
2020 if they did not carry forward a
deficit from 2018 under 40 CFR
80.1427(b)—would continue to be
available to them to demonstrate
compliance for 2019 by the proposed
2019 compliance reporting deadline.
This means that small refineries that
carried forward a deficit for 2019 in
their initial 2019 compliance reports
(filed in 2020) could reverse that
decision in new compliance reports and
retain their ability to carry forward a
deficit for 2020. It also means that small
refineries that did not submit a 2019
compliance report by March 31, 2020,
could also carry forward a deficit for
2020. Finally, small refineries could
either carry forward a deficit for 2019 (if
they did not do so for 2018) or for 2020
(if they do not do so for 2019). We seek
comments on the proposed deadlines
for small refineries for the 2019
compliance year.
jspears on DSK121TN23PROD with PROPOSALS1
B. Extension of the 2020 and 2021 RFS
Compliance Reporting Deadline for All
Obligated Parties
We are proposing to further extend
the 2020 compliance reporting deadline
for all obligated parties from January 31,
2022, to the next quarterly reporting
deadline after the 2019 compliance
reporting deadline for small refineries,
and to extend the 2021 compliance
reporting deadline for all obligated
parties from March 31, 2022, to the next
quarterly reporting deadline that is after
the 2020 compliance reporting deadline.
We are proposing to do so because EPA
has not yet established the 2021 or 2022
standards, including applicable
volumes, and we recognize the
importance to obligated parties of
planning their compliance for a given
calendar year by understanding their
obligations for the years before and
after.12 This is particularly true given
the two-year ‘‘lifespan’’ for RINs, such
that 2020 RINs can be used for
compliance with either 2020 or 2021
12 For discussion of obligated parties’ interest in
such extensions in past actions, see 80 FR 33100,
33149–50 (June 10, 2015) and 78 FR 49794, 49823
(August 15, 2013).
VerDate Sep<11>2014
16:58 Nov 24, 2021
Jkt 256001
obligations. Compliance obligations for
2021 and 2022 will remain unknown
until EPA finalizes the 2021 and 2022
standards.
These proposed deadline extensions
would allow several things to occur
prior to those compliance dates. First, it
would allow small refineries to
complete compliance with their 2019
obligations before having to comply
with their 2020 RFS obligations.
Second, it would provide at least 60
days between the 2019 and 2020
compliance reporting deadlines and at
least 60 days between the 2020 and
2021 compliance reporting deadlines to
allow for obligated parties to make
additional RIN acquisitions, transfers,
transactions, and retirements prior to
the compliance reporting deadlines.
Finally, these deadlines would provide
at least 60 days between 2021 and 2022
compliance reporting deadlines,
allowing the 2022 compliance reporting
deadline to remain on March 31, 2023,
as currently prescribed in our
regulations.13
Using the prior example, if the final
rule establishing the 2021 standards is
published in the Federal Register on
March 1, 2022, the 2019 compliance
reporting deadline for small refineries
would be June 1, 2022. Furthermore, by
operation of law, under this scenario,
the 2020 compliance reporting deadline
for all obligated parties would be
September 1, 2022, and the 2021
compliance reporting deadline would be
December 1, 2022. This would allow for
at least 60 days before the 2022
compliance reporting deadline of March
31, 2023. We seek comments on the
proposed deadlines for all obligated
parties for the 2020 and 2021
compliance years.
C. Corresponding Attest Engagement
Reporting Deadlines
We are proposing to extend the
deadline for attest engagement reports
required under 40 CFR 80.1464(g) for
small refineries for 2019 compliance
demonstrations and for all obligated
parties for 2020 and 2021 compliance
demonstrations to the next June 1
annual attest engagement reporting
deadline that is at least 60 days after the
applicable 2019, 2020, and 2021
compliance reporting deadline. Using
the example described in Section IX.C
where the final rule establishing the
2021 standards is published in the
Federal Register on March 1, 2022,
under this proposal, the 2019 attest
engagement reporting deadline for small
refineries and the 2020 and 2021 attest
engagement reporting deadline for all
13 See
PO 00000
40 CFR 80.1451.
Frm 00061
Fmt 4702
Sfmt 4702
obligated parties would be due on June
1, 2023.
We are proposing these extended
attest engagement reporting deadlines to
ensure enough time for attest auditors to
reasonably conduct the 2019, 2020, and
2021 attest engagement reports. Because
the annual attest engagement reporting
deadline occurs only once each year
(June 1), it is likely that with the
proposed compliance deadline
extensions, several or all of the affected
2019, 2020, and 2021 attest engagement
reports would be due on the same
deadline (June 1, 2023). This proposed
change would therefore minimize
confusion and maximize efficiency for
the attest auditors to conduct and
prepare reports. We seek comment on
the proposed attest engagement
reporting deadlines for 2019, 2020, and
2021.
D. Annual Compliance and Attest
Engagement Reporting Deadlines Based
on Effective Date
For annual compliance and annual
attest engagement reporting deadlines
for 2022 and beyond, we are proposing
the same approach as that outlined
above for 2019, 2020, and 2021. Under
this proposal, for 2022 and beyond, the
annual compliance reporting deadline
would be the latest date of the
following:
• March 31st of the subsequent
calendar year;
• The next quarterly reporting
deadline that is after the effective date
of the subsequent compliance year’s
renewable fuel standards (typically 60
days after publication of the final rule
in the Federal Register); or
• The next quarterly reporting
deadline under 40 CFR 80.1451(f)(2)
after the annual compliance reporting
deadline for the prior compliance year.
Under this approach, the annual
compliance reporting deadline would
also be at least 60 days after publication
of the subsequent year’s RFS standards
in the Federal Register and 60 days after
the prior year’s compliance reporting
deadline. This approach would also
avoid EPA having to repeatedly extend
compliance reporting deadlines for
obligated parties should promulgation
of the subsequent year’s standards be
delayed. We believe this approach
would provide regulatory certainty for
obligated parties, and we seek comment
on whether we should adopt this
approach for 2022 and beyond.
Similarly, for 2022 and beyond, we
are proposing to tie the annual attest
engagement reporting deadline to the
effective date of the RFS standards in
the same manner as proposed for the
2019, 2020, and 2021 annual attest
E:\FR\FM\26NOP1.SGM
26NOP1
Federal Register / Vol. 86, No. 225 / Friday, November 26, 2021 / Proposed Rules
engagement reporting deadlines, which
would make it the latest date of the
following:
• June 1 of the subsequent calendar
year; or
• The next June 1 annual attest
engagement reporting deadline that is at
least 60 days after the annual
compliance reporting deadline.
Under this proposed approach,
annual attest engagement reports would
be due at least 60 days after the annual
compliance reporting deadline like
under the current regulations. We seek
comment on whether we should adopt
this approach for 2022 and beyond.
To help communicate the annual
compliance and annual attest
engagement reporting deadlines, we are
also proposing to post the annual
compliance and annual attest
engagement reporting deadlines on our
website.14
II. Statutory and Executive Order
Reviews
Additional information about these
statutes and Executive orders can be
found at https://www.epa.gov/lawsregulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
This action is not a significant
regulatory action and was therefore not
submitted to the Office of Management
and Budget (OMB) for review.
jspears on DSK121TN23PROD with PROPOSALS1
B. 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 number
2060–0725 and 2060–0723. This action
only makes a one-time change in the
compliance dates for certain regulated
parties and adjusts the due date of their
compliance reports and attest
engagements to reflect this change. It
does not change the information to be
collected or increase the frequency of
collection.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have
a significant economic impact on a
substantial number of small entities
under the RFA. In making this
determination, EPA concludes that the
impact of concern for this proposed rule
is any significant adverse economic
14 Information related to annual compliance and
attest engagement reporting is available at: https://
www.epa.gov/fuels-registration-reporting-andcompliance-help/reporting-fuel-programs.
VerDate Sep<11>2014
16:58 Nov 24, 2021
Jkt 256001
impact on small entities and that the
agency is certifying that this rulemaking
will not have a significant economic
impact on a substantial number of small
entities if the proposed rule has no net
burden on the small entities subject to
the proposed rule. This action extends
the RFS compliance and attest
engagement reporting deadlines. We do
not anticipate that there will be any
costs associated with these changes. We
have therefore concluded that this
action will have no net regulatory
burden for all directly regulated small
entities.
D. Unfunded Mandates Reform Act
(UMRA)
This action does not contain an
unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C.
1531–1538, and does not significantly or
uniquely affect small governments. This
action imposes no enforceable duty on
any state, local or tribal governments.
Requirements for the private sector do
not exceed $100 million in any one
year.
E. Executive Order 13132: Federalism
This action does not have federalism
implications. It will not have substantial
direct effects on the states, on the
relationship between the National
Government and the states, or on the
distribution of power and
responsibilities among the various
levels of government.
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
67423
H. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
This action is not subject to Executive
Order 13211, because it is not a
significant regulatory action under
Executive Order 12866.
I. National Technology Transfer and
Advancement Act (NTTAA) and 1 CFR
Part 51
This action does not involve technical
standards.
J. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
The EPA believes that this action is
not subject to Executive Order 12898 (59
FR 7629, February 16, 1994) because it
does establish an environmental health
or safety standard. This action addresses
the RFS compliance and attest
engagement reporting deadlines and
does not impact the RFS standards
themselves.
III. Statutory Authority
Statutory authority for this action
comes from section 211(o) of the Clean
Air Act, 42 U.S.C. 7545(o).
List of Subjects in 40 CFR Part 80
Environmental protection,
Administrative practice and procedure,
Air pollution control, Diesel fuel, Fuel
additives, Gasoline, Imports, Oil
imports, Penalties, Petroleum,
Renewable fuel, Reporting and
recordkeeping requirements.
Michael S. Regan,
Administrator.
This action does not have tribal
implications as specified in Executive
Order 13175. This proposed rule only
affects RFS obligated parties. Thus,
Executive Order 13175 does not apply
to this action.
For the reasons set forth in the
preamble, EPA proposes to amend 40
CFR part 80 as follows:
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
■
EPA interprets Executive Order 13045
as applying only to those regulatory
actions that concern environmental
health or safety risks that EPA has
reason to believe may
disproportionately affect children, per
the definition of ‘‘covered regulatory
action’’ in section 2–202 of the
Executive order. This action is not
subject to Executive Order 13045
because it does not concern an
environmental health risk or safety risk.
PO 00000
Frm 00062
Fmt 4702
Sfmt 4702
PART 80—REGISTRATION 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 § 80.1451 by:
a. Revising paragraph (a)(1)
introductory text;
■ b. Removing and reserving paragraph
(a)(1)(xiv);
■ c. Revising paragraph (f) introductory
text; and
■ d. Adding paragraph (f)(1) and section
headings for paragraphs (f)(2) and (3).
The revisions and additions read as
follows:
■
■
E:\FR\FM\26NOP1.SGM
26NOP1
67424
Federal Register / Vol. 86, No. 225 / Friday, November 26, 2021 / Proposed Rules
jspears on DSK121TN23PROD with PROPOSALS1
§ 80.1451 What are the reporting
requirements under the RFS program?
(a) * * *
(1) Annual compliance reports must
include all the following information:
*
*
*
*
*
(f) Report submission deadlines. The
submission deadlines for annual and
quarterly reports are as follows:
(1) Annual compliance reports—(i)
Obligated parties. (A) Except as
specified in paragraph (f)(1)(i)(B) of this
section, for obligated parties, annual
compliance reports must be submitted
by whichever of the following dates is
latest:
(1) March 31 of the subsequent
calendar year.
(2) The next quarterly reporting
deadline under paragraph (f)(2) of this
section that is after the date the
subsequent compliance year’s
renewable fuel standards become
effective in § 80.1405(a).
(3) The next quarterly reporting
deadline under paragraph (f)(2) of this
section after the annual compliance
reporting deadline for the prior
compliance year.
(B)(1) For obligated parties that meet
the requirements for a small refinery
under § 80.1441(e)(2)(iii), for the 2019
compliance year, annual compliance
reports must be submitted no later than
the next quarterly reporting deadline
under paragraph (f)(2) of this section
that is after the date the 2021 renewable
fuel standards become effective in
§ 80.1405(a).
(2) For the 2020 compliance year,
annual compliance reports must be
submitted no later than the next
quarterly reporting deadline in
paragraph (f)(2) of this section after the
deadline in paragraph (f)(1)(i)(B)(1) of
this section.
(3) For the 2021 compliance year,
annual compliance reports must be
submitted no later than the next
quarterly reporting deadline in
paragraph (f)(2) of this section after the
deadline in paragraph (f)(1)(i)(B)(2) of
this section.
(ii) All other parties. For all parties
other than obligated parties, annual
compliance reports must be submitted
by March 31 of the subsequent year.
(iii) Deadline publication. The annual
compliance reporting deadline will be
calculated in accordance with paragraph
(f)(1)(i) of this section and published on
EPA’s website.
(2) Quarterly compliance reports.
* * *
(3) Report certification. * * *
*
*
*
*
*
■ 3. Amend § 80.1464 by:
■ a. Revising paragraph (d); and
VerDate Sep<11>2014
16:58 Nov 24, 2021
Jkt 256001
b. Removing and reserving paragraphs
(g) and (i)(3).
The revision reads as follows:
ENVIRONMENTAL PROTECTION
AGENCY
§ 80.1464 What are the attest engagement
requirements under the RFS program?
[EPA–HQ–OAR–2019–5304; FRL–9213–01–
OAR]
■
*
*
*
*
*
(d) Report submission deadlines—(1)
Obligated parties. (i) Except as specified
in paragraph (d)(1)(ii) of this section, for
obligated parties, annual attest
engagement reports must be submitted
to EPA by whichever of the following
dates is latest:
(A) June 1 of the subsequent calendar
year.
(B) The next June 1 annual attest
engagement reporting deadline that is at
least 60 days after the annual
compliance reporting deadline under
§ 80.1451(f)(1)(i)(A).
(ii)(A) For obligated parties that meet
the requirements for a small refinery
under § 80.1441(e)(2)(iii), for the 2019
compliance year, annual attest
engagement reports must be submitted
to EPA no later than the next June 1
annual attest engagement reporting
deadline that is at least 60 days after the
annual compliance reporting deadline
under § 80.1451(f)(1)(i)(B)(1).
(B) For obligated parties, for the 2020
compliance year, annual attest
engagement reports must be submitted
to EPA no later than the next June 1
annual attest engagement reporting
deadline that is at least 60 days after the
annual compliance reporting deadline
under § 80.1451(f)(1)(i)(B)(2).
(C) For obligated parties, for the 2021
compliance year, annual attest
engagement reports must be submitted
to EPA no later than the next June 1
annual attest engagement reporting
deadline that is at least 60 days after the
annual compliance reporting deadline
under § 80.1451(f)(1)(i)(B)(3).
(2) All other parties. All parties other
than obligated parties must submit
annual attest engagement reports to EPA
by June 1 of the subsequent calendar
year.
(3) Deadline publication. The annual
attest engagement reporting deadline
will be calculated in accordance with
paragraph (d)(1) of this section and
published on EPA’s website.
*
*
*
*
*
[FR Doc. 2021–25444 Filed 11–24–21; 8:45 am]
BILLING CODE 6560–50–P
PO 00000
Frm 00063
Fmt 4702
Sfmt 4702
40 CFR Part 194
Notification of Completeness of the
Department of Energy’s Compliance
Recertification Application for the
Waste Isolation Pilot Plant
Environmental Protection
Agency (EPA).
ACTION: Plant 2019 Compliance
Recertification Application is complete;
end of comment period concerning the
2019 Compliance Recertification
Application.
AGENCY:
The Environmental Protection
Agency (EPA or the Agency) has
determined that the Department of
Energy (DOE) 2019 Compliance
Recertification Application (CRA) for
the Waste Isolation Pilot Plant (WIPP) is
complete. The EPA provided written
notice of the completeness decision to
the Department of Energy on November
17, 2021.The Agency has determined
that the CRA is complete, in accordance
with the, ‘‘Criteria for the Certification
and Recertification of the WIPP’s
Compliance with the Disposal
Regulations’’ (Compliance Certification
Criteria). The EPA also gives notice of
the end of the comment period relating
to the CRA.
DATES: The EPA opened the public
comment period after receipt of some
documentation of continued compliance
and before the completeness
determination concerning the CRA and
gave notice that the comment period
would remain open until after the
completeness determination to a date
which would be specified later (84 FR
50367, September 25, 2019). Comments
must be received on or before December
27, 2021.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
OAR–2019–5304, to the Federal
eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or withdrawn. The EPA may
publish any comment received to its
public docket. Do not submit
electronically any information you
consider to be Confidential Business
Information (CBI), or other information
of which disclosure is restricted by
statute. Multimedia submissions (audio,
video, etc.) must be accompanied by a
written comment. The written comment
is considered the official comment and
should include discussion of all points
SUMMARY:
E:\FR\FM\26NOP1.SGM
26NOP1
]]>Agencies
[Federal Register Volume 86, Number 225 (Friday, November 26, 2021)]
[Proposed Rules]
[Pages 67419-67424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25444]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2021-0793; FRL-8521.1-02-OAR]
RIN 2060-AV57
Renewable Fuel Standard (RFS) Program: Extension of Compliance
and Attest Engagement Reporting Deadlines
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is proposing to
modify certain compliance dates under the Renewable Fuel Standard (RFS)
program. First, EPA is proposing to extend the RFS compliance reporting
deadline and the associated attest engagement reporting deadline for
the 2019 compliance year for small refineries only. Second, EPA is
proposing to extend the RFS compliance reporting deadline and the
associated attest engagement reporting deadline for the 2020 and 2021
compliance years for all obligated parties. Finally, EPA is proposing
to change the way in which future RFS compliance and attest engagement
reporting deadlines are determined.
DATES: Comments. Comments must be received on or before January 3,
2022.
Public hearing. EPA will hold a virtual public hearing on December
3, 2021. Please refer to the SUPPLEMENTARY INFORMATION section for
additional information on the public hearing.
ADDRESSES: Comments. You may send your comments, identified by Docket
ID No. EPA-HQ-OAR-2021-0793, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov
(our preferred method) Follow the online instructions for submitting
comments.
Email: [email protected]. Include Docket ID No. EPA-
HQ-OAR-2021-0793 in the subject line of the message.
Mail: U.S. Environmental Protection Agency, EPA Docket
Center, Air Docket, Mail Code 28221T, 1200 Pennsylvania Avenue NW,
Washington, DC 20460.
[[Page 67420]]
Hand Delivery or Courier (by scheduled appointment only):
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
confidential business information (CBI) or multimedia submissions, and
general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.
Out of an abundance of caution for members of the public and our
staff, the EPA Docket Center and Reading Room are closed to the public,
with limited exceptions, to reduce the risk of transmitting COVID-19.
Our Docket Center staff will continue to provide remote customer
service via email, phone, and webform. We encourage the public to
submit comments via https://www.regulations.gov or email, as there may
be a delay in processing mail and faxes. Hand deliveries and couriers
may be received by scheduled appointment only. For further information
on EPA Docket Center services and the current status, please visit us
online at https://www.epa.gov/dockets.
EPA continues to carefully and continuously monitor information
from the Centers for Disease Control and Prevention (CDC), local area
health departments, and our Federal partners so that we can respond
rapidly as conditions change regarding COVID-19.
Public hearing. The virtual public hearing will be held on December
3, 2021. The hearing will begin at 10 a.m. Eastern Time (ET) and end
when all parties who wish to speak have had an opportunity to do so.
All hearing attendees (including even those who do not intend to
provide testimony) should register for the public hearing by November
30, 2021. Information on how to register can be found at https://www.epa.gov/renewable-fuel-standard-program/proposed-extension-renewable-fuel-standard-compliance-deadlines. Additional information
regarding the hearing appears below under SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT: For questions regarding this action,
contact Karen Nelson, Office of Transportation and Air Quality,
Compliance Division, Environmental Protection Agency, 2000 Traverwood
Drive, Ann Arbor, MI 48105; telephone number: (734) 214-4657; email
address: [email protected]. For questions regarding the public
hearing, contact Nick Parsons at (734) 214-4479 or [email protected].
SUPPLEMENTARY INFORMATION:
Does this action apply to me?
Entities potentially affected by this proposed rule are those
involved with the production, distribution, and sale of transportation
fuels, including gasoline, diesel, and renewable fuels such as ethanol,
biodiesel, renewable diesel, and biogas. Potentially affected
categories include:
------------------------------------------------------------------------
NAICS
Category \1\ Examples of potentially
code affected entities
------------------------------------------------------------------------
Industry............................. 324110 Petroleum refineries.
Industry............................. 325193 Ethyl alcohol
manufacturing.
Industry............................. 325199 Other basic organic
chemical manufacturing.
Industry............................. 424690 Chemical and allied
products merchant
wholesalers.
Industry............................. 424710 Petroleum bulk stations
and terminals.
Industry............................. 424720 Petroleum and petroleum
products merchant
wholesalers.
Industry............................. 221210 Manufactured gas
production and
distribution.
Industry............................. 454319 Other fuel dealers.
------------------------------------------------------------------------
\1\ North American Industry Classification System (NAICS).
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be affected by this
action. This table lists the types of entities that EPA is now aware
could potentially be affected by this action. Other types of entities
not listed in the table could also be affected. To determine whether
your entity would be affected by this action, you should carefully
examine the applicability criteria in 40 CFR part 80. If you have any
questions regarding the applicability of this action to a particular
entity, consult the person listed in the FOR FURTHER INFORMATION
CONTACT section.
Participation in Virtual Public Hearing
Please note that EPA is deviating from its typical approach because
the President has declared a national emergency. Because of current CDC
recommendations, as well as state and local orders for social
distancing to limit the spread of COVID-19, EPA cannot hold in-person
public meetings at this time.
Information on how to register for the hearing can be found at
https://www.epa.gov/renewable-fuel-standard-program/proposed-extension-renewable-fuel-standard-compliance-deadlines. The last day to pre-
register to speak at the hearing will be November 30, 2021.
Each commenter will have 3 minutes to provide oral testimony. 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 oral comments and supporting
information presented at the public hearing.
Please note that any updates made to any aspect of the hearing will
be posted online at https://www.epa.gov/renewable-fuel-standard-program/proposed-extension-renewable-fuel-standard-compliance-deadlines. While EPA expects the hearing to go forward as set forth
above, please monitor the website or contact the person listed in the
FOR FURTHER INFORMATION CONTACT section to determine if there are any
updates. EPA does not intend to publish a document in the Federal
Register announcing updates.
If you require the services of a translator or special
accommodations such as audio description, please pre-register for the
hearing and describe your needs by November 30, 2021. EPA may not be
able to arrange accommodations without advance notice.
Outline of This Preamble
I. Background and Proposed Extension of Deadlines
A. Extension of the 2019 RFS Compliance Reporting Deadline for
Small Refineries
B. Extension of the 2020 and 2021 RFS Compliance Reporting
Deadline for All Obligated Parties
C. Corresponding Attest Engagement Reporting Deadlines
D. Annual Compliance and Attest Engagement Reporting Deadlines
Based on Effective Date
II. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act (UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
[[Page 67421]]
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act (NTTAA) and
1 CFR Part 51
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
III. Statutory Authority
I. Background and Proposed Extension of Deadlines
The RFS regulations establish deadlines for obligated parties with
renewable volume obligations (RVOs) to submit annual compliance reports
to EPA, and later deadlines for the same parties to submit associated
attest engagement reports. Under existing RFS regulations, obligated
parties must submit compliance reports for each calendar year by March
31 of the following year, and the associated attest engagements by June
1 of the following year.\1\ On April 1, 2021, EPA extended the
deadlines for small refineries to demonstrate compliance with their
2019 RFS obligations and for all obligated parties to demonstrate
compliance with their 2020 RFS obligations.\2\ In that same action, we
also extended the deadlines for the corresponding attest engagements
reports.\3\ As discussed in Sections I.A through C, we are proposing to
again extend certain reporting deadlines applicable to the 2019 and
2020 compliance years, and additionally extending certain reporting
deadlines for the 2021 compliance year, due to continued delay in the
promulgation of the 2021 RFS standards and uncertainty around EPA's
small refinery exemption (SRE) policy. We are also proposing a new
approach to setting reporting deadlines for obligated parties that
would automatically establish the annual compliance and attest
engagement reporting deadlines for a given compliance year based on the
effective date of the subsequent compliance year's RFS standards, if
such a date is after the March 31 regulatory deadline. We discuss this
proposed approach in more detail in Section I.D.
---------------------------------------------------------------------------
\1\ See 40 CFR 80.1451(a) and 80.1464(d).
\2\ See 86 FR 17073 (April 1, 2021).
\3\ Id.
---------------------------------------------------------------------------
A. Extension of the 2019 RFS Compliance Reporting Deadline for Small
Refineries
For small refineries, we are proposing to further extend the 2019
compliance reporting deadline to the next quarterly reporting deadline
that is after the effective date of the 2021 RFS percentage
standards,\4\ in light of the continued uncertainty surrounding SREs
under the RFS program.\5\ For example, under this proposal, if the
final rule establishing the 2021 standards is published in the Federal
Register on March 1, 2022, the effective date of the 2021 standards
would be 60 days later (April 30, 2022), and the 2019 compliance
reporting deadline for small refineries would be June 1, 2022, because
that would be the next quarterly reporting deadline after the effective
date of the 2021 standards. We are proposing to tie the 2019 compliance
reporting deadline to the effective date of the 2021 standards to allow
for the proper sequencing of deadlines such that 2019 compliance would
be complete prior to 2020 compliance, and 2020 compliance would be
complete prior to 2021 compliance, given the continued delay in
promulgating the 2021 standards. EPA is still evaluating SRE petitions
consistent with the recent case law, including those for 2019.\6\
---------------------------------------------------------------------------
\4\ The effective date of 2021 RFS percentage standards is
generally expected to be 60 days after publication of the action
establishing the standards in the Federal Register.
\5\ A small refinery may petition EPA for an exemption from its
RFS obligations under 40 CFR 80.1441(e)(2).
\6\ More information about SREs and the number of SRE petitions
that EPA is currently evaluating is available at https://www.epa.gov/fuels-registration-reporting-and-compliance-help/rfs-small-refinery-exemptions.
---------------------------------------------------------------------------
On January 24, 2020, the U.S. Court of Appeals for the Tenth
Circuit issued a decision in Renewable Fuels Association v. EPA (RFA)
invalidating on multiple grounds three SREs granted by EPA.\7\ The
small refineries whose SREs were invalidated by the court in the RFA
case sought rehearing from the Tenth Circuit, which was denied on April
7, 2020.\8\ Thus, the Tenth Circuit's decision was not final until
after the 2019 compliance reporting deadline of March 31, 2020, had
already passed. On September 4, 2020, the small refinery intervenors in
that suit filed a petition for a writ of certiorari from the U.S.
Supreme Court, which was granted on January 8, 2021, in HollyFrontier
v. RFA.\9\ On June 25, 2021, the Supreme Court issued its opinion in
HollyFrontier.\10\ EPA is still considering how to adjust its SRE
policy in light of these two judicial opinions, including holdings from
the RFA case that were not appealed; for this reason, there is still
uncertainty regarding the 2019 SRE petitions.
---------------------------------------------------------------------------
\7\ Renewable Fuels Ass'n v. EPA, 948 F.3d 1206 (10th Cir. 2020)
(RFA).
\8\ Order, RFA, No. 18-9533 (10th Cir. Apr. 7, 2020).
\9\ HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels
Ass'n, 114 S.Ct. 2172 (2021).
\10\ Id. at 2181.
---------------------------------------------------------------------------
Therefore, we believe it appropriate to further extend the 2019
annual compliance reporting deadline for small refineries. We believe
that it is appropriate to do so only for small refineries because it is
only their compliance requirements that have been affected by the
recent HollyFrontier decision. We are proposing to extend this
flexibility to all small refineries regardless of whether they have an
SRE petition for 2019 pending before EPA because those that do not may
elect to submit petitions in the future. All other obligated parties'
compliance obligation deadlines for 2019 have already passed and remain
unchanged.\11\
---------------------------------------------------------------------------
\11\ The 2019 compliance and attest engagement reporting
deadlines were March 31, 2020, and June 1, 2020, respectively.
---------------------------------------------------------------------------
We recognize that some small refineries, despite the previous
compliance reporting deadline extension for 2019, have already
submitted their 2019 compliance reports. However, we are proposing to
allow small refineries to revisit their 2019 compliance reports before
their new 2019 compliance reporting deadline. This means that if a
small refinery carried forward a deficit to demonstrate compliance for
2019 by March 31, 2020, but later receives an SRE for 2019 or retires
RINs in accordance with its RVOs, that initial decision to carry
forward a deficit will not constitute a carry-forward deficit (i.e.,
failing to meet the requirement to retire sufficient RINs as described
in 40 CFR 80.1427(a)(1)) that would make the small refinery ineligible
to do the same for 2020 under 40 CFR 80.1427(b). Small refineries that
did not submit a compliance report by March 31, 2020, would need to
submit a compliance report to comply with the new 2019 compliance
reporting deadline, unless they receive an exemption for 2019.
This proposed deadline extension would apply only to those parties
who meet the definition of small refinery in Clean Air Act (CAA)
section 211(o)(1)(k) and 40 CFR 80.1441(e)(2)(iii) for the 2019
compliance year. Limiting the extension in this way is appropriate
because only small refineries' compliance obligations are affected by
the HollyFrontier and RFA opinions and it is consistent with our
eligibility requirements regarding SREs. We recognize that, in recent
years, we have determined that some parties who have petitioned for
SREs have been deemed ineligible by EPA, often due to the refinery's
throughput (i.e., more than 75,000 barrels of crude oil per day) or
[[Page 67422]]
the nature of their business (i.e., not a petroleum refinery). The
parties that EPA has found ineligible because they do not meet the
definition of small refinery in recent years will similarly not be
eligible for the 2019 compliance date extension for small refineries.
We note that all of the existing regulatory flexibilities for small
refineries--including the ability to satisfy up to 20 percent of their
2019 RVOs using 2018 carryover RINs under 40 CFR 80.1427(a)(5) and the
ability to carry forward a deficit from 2019 to 2020 if they did not
carry forward a deficit from 2018 under 40 CFR 80.1427(b)--would
continue to be available to them to demonstrate compliance for 2019 by
the proposed 2019 compliance reporting deadline. This means that small
refineries that carried forward a deficit for 2019 in their initial
2019 compliance reports (filed in 2020) could reverse that decision in
new compliance reports and retain their ability to carry forward a
deficit for 2020. It also means that small refineries that did not
submit a 2019 compliance report by March 31, 2020, could also carry
forward a deficit for 2020. Finally, small refineries could either
carry forward a deficit for 2019 (if they did not do so for 2018) or
for 2020 (if they do not do so for 2019). We seek comments on the
proposed deadlines for small refineries for the 2019 compliance year.
B. Extension of the 2020 and 2021 RFS Compliance Reporting Deadline for
All Obligated Parties
We are proposing to further extend the 2020 compliance reporting
deadline for all obligated parties from January 31, 2022, to the next
quarterly reporting deadline after the 2019 compliance reporting
deadline for small refineries, and to extend the 2021 compliance
reporting deadline for all obligated parties from March 31, 2022, to
the next quarterly reporting deadline that is after the 2020 compliance
reporting deadline. We are proposing to do so because EPA has not yet
established the 2021 or 2022 standards, including applicable volumes,
and we recognize the importance to obligated parties of planning their
compliance for a given calendar year by understanding their obligations
for the years before and after.\12\ This is particularly true given the
two-year ``lifespan'' for RINs, such that 2020 RINs can be used for
compliance with either 2020 or 2021 obligations. Compliance obligations
for 2021 and 2022 will remain unknown until EPA finalizes the 2021 and
2022 standards.
---------------------------------------------------------------------------
\12\ For discussion of obligated parties' interest in such
extensions in past actions, see 80 FR 33100, 33149-50 (June 10,
2015) and 78 FR 49794, 49823 (August 15, 2013).
---------------------------------------------------------------------------
These proposed deadline extensions would allow several things to
occur prior to those compliance dates. First, it would allow small
refineries to complete compliance with their 2019 obligations before
having to comply with their 2020 RFS obligations. Second, it would
provide at least 60 days between the 2019 and 2020 compliance reporting
deadlines and at least 60 days between the 2020 and 2021 compliance
reporting deadlines to allow for obligated parties to make additional
RIN acquisitions, transfers, transactions, and retirements prior to the
compliance reporting deadlines. Finally, these deadlines would provide
at least 60 days between 2021 and 2022 compliance reporting deadlines,
allowing the 2022 compliance reporting deadline to remain on March 31,
2023, as currently prescribed in our regulations.\13\
---------------------------------------------------------------------------
\13\ See 40 CFR 80.1451.
---------------------------------------------------------------------------
Using the prior example, if the final rule establishing the 2021
standards is published in the Federal Register on March 1, 2022, the
2019 compliance reporting deadline for small refineries would be June
1, 2022. Furthermore, by operation of law, under this scenario, the
2020 compliance reporting deadline for all obligated parties would be
September 1, 2022, and the 2021 compliance reporting deadline would be
December 1, 2022. This would allow for at least 60 days before the 2022
compliance reporting deadline of March 31, 2023. We seek comments on
the proposed deadlines for all obligated parties for the 2020 and 2021
compliance years.
C. Corresponding Attest Engagement Reporting Deadlines
We are proposing to extend the deadline for attest engagement
reports required under 40 CFR 80.1464(g) for small refineries for 2019
compliance demonstrations and for all obligated parties for 2020 and
2021 compliance demonstrations to the next June 1 annual attest
engagement reporting deadline that is at least 60 days after the
applicable 2019, 2020, and 2021 compliance reporting deadline. Using
the example described in Section IX.C where the final rule establishing
the 2021 standards is published in the Federal Register on March 1,
2022, under this proposal, the 2019 attest engagement reporting
deadline for small refineries and the 2020 and 2021 attest engagement
reporting deadline for all obligated parties would be due on June 1,
2023.
We are proposing these extended attest engagement reporting
deadlines to ensure enough time for attest auditors to reasonably
conduct the 2019, 2020, and 2021 attest engagement reports. Because the
annual attest engagement reporting deadline occurs only once each year
(June 1), it is likely that with the proposed compliance deadline
extensions, several or all of the affected 2019, 2020, and 2021 attest
engagement reports would be due on the same deadline (June 1, 2023).
This proposed change would therefore minimize confusion and maximize
efficiency for the attest auditors to conduct and prepare reports. We
seek comment on the proposed attest engagement reporting deadlines for
2019, 2020, and 2021.
D. Annual Compliance and Attest Engagement Reporting Deadlines Based on
Effective Date
For annual compliance and annual attest engagement reporting
deadlines for 2022 and beyond, we are proposing the same approach as
that outlined above for 2019, 2020, and 2021. Under this proposal, for
2022 and beyond, the annual compliance reporting deadline would be the
latest date of the following:
March 31st of the subsequent calendar year;
The next quarterly reporting deadline that is after the
effective date of the subsequent compliance year's renewable fuel
standards (typically 60 days after publication of the final rule in the
Federal Register); or
The next quarterly reporting deadline under 40 CFR
80.1451(f)(2) after the annual compliance reporting deadline for the
prior compliance year.
Under this approach, the annual compliance reporting deadline would
also be at least 60 days after publication of the subsequent year's RFS
standards in the Federal Register and 60 days after the prior year's
compliance reporting deadline. This approach would also avoid EPA
having to repeatedly extend compliance reporting deadlines for
obligated parties should promulgation of the subsequent year's
standards be delayed. We believe this approach would provide regulatory
certainty for obligated parties, and we seek comment on whether we
should adopt this approach for 2022 and beyond.
Similarly, for 2022 and beyond, we are proposing to tie the annual
attest engagement reporting deadline to the effective date of the RFS
standards in the same manner as proposed for the 2019, 2020, and 2021
annual attest
[[Page 67423]]
engagement reporting deadlines, which would make it the latest date of
the following:
June 1 of the subsequent calendar year; or
The next June 1 annual attest engagement reporting
deadline that is at least 60 days after the annual compliance reporting
deadline.
Under this proposed approach, annual attest engagement reports
would be due at least 60 days after the annual compliance reporting
deadline like under the current regulations. We seek comment on whether
we should adopt this approach for 2022 and beyond.
To help communicate the annual compliance and annual attest
engagement reporting deadlines, we are also proposing to post the
annual compliance and annual attest engagement reporting deadlines on
our website.\14\
---------------------------------------------------------------------------
\14\ Information related to annual compliance and attest
engagement reporting is available at: https://www.epa.gov/fuels-registration-reporting-and-compliance-help/reporting-fuel-programs.
---------------------------------------------------------------------------
II. Statutory and Executive Order Reviews
Additional information about these statutes and Executive orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Paperwork Reduction Act (PRA)
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 number 2060-0725 and 2060-0723. This action only makes a one-
time change in the compliance dates for certain regulated parties and
adjusts the due date of their compliance reports and attest engagements
to reflect this change. It does not change the information to be
collected or increase the frequency of collection.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. In
making this determination, EPA concludes that the impact of concern for
this proposed rule is any significant adverse economic impact on small
entities and that the agency is certifying that this rulemaking will
not have a significant economic impact on a substantial number of small
entities if the proposed rule has no net burden on the small entities
subject to the proposed rule. This action extends the RFS compliance
and attest engagement reporting deadlines. We do not anticipate that
there will be any costs associated with these changes. We have
therefore concluded that this action will have no net regulatory burden
for all directly regulated small entities.
D. Unfunded Mandates Reform Act (UMRA)
This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C. 1531-1538, and does not
significantly or uniquely affect small governments. This action imposes
no enforceable duty on any state, local or tribal governments.
Requirements for the private sector do not exceed $100 million in any
one year.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the National Government and the states, or on the distribution of power
and responsibilities among the various levels of government.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications as specified in
Executive Order 13175. This proposed rule only affects RFS obligated
parties. Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that EPA has reason to believe may disproportionately affect children,
per the definition of ``covered regulatory action'' in section 2-202 of
the Executive order. This action is not subject to Executive Order
13045 because it does not concern an environmental health risk or
safety risk.
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR
Part 51
This action does not involve technical standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
The EPA believes that this action is not subject to Executive Order
12898 (59 FR 7629, February 16, 1994) because it does establish an
environmental health or safety standard. This action addresses the RFS
compliance and attest engagement reporting deadlines and does not
impact the RFS standards themselves.
III. Statutory Authority
Statutory authority for this action comes from section 211(o) of
the Clean Air Act, 42 U.S.C. 7545(o).
List of Subjects in 40 CFR Part 80
Environmental protection, Administrative practice and procedure,
Air pollution control, Diesel fuel, Fuel additives, Gasoline, Imports,
Oil imports, Penalties, Petroleum, Renewable fuel, Reporting and
recordkeeping requirements.
Michael S. Regan,
Administrator.
For the reasons set forth in the preamble, EPA proposes to amend 40
CFR part 80 as follows:
PART 80--REGISTRATION OF FUELS AND FUEL ADDITIVES
0
1. The authority citation for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).
Subpart M--Renewable Fuel Standard
0
2. Amend Sec. 80.1451 by:
0
a. Revising paragraph (a)(1) introductory text;
0
b. Removing and reserving paragraph (a)(1)(xiv);
0
c. Revising paragraph (f) introductory text; and
0
d. Adding paragraph (f)(1) and section headings for paragraphs (f)(2)
and (3).
The revisions and additions read as follows:
[[Page 67424]]
Sec. 80.1451 What are the reporting requirements under the RFS
program?
(a) * * *
(1) Annual compliance reports must include all the following
information:
* * * * *
(f) Report submission deadlines. The submission deadlines for
annual and quarterly reports are as follows:
(1) Annual compliance reports--(i) Obligated parties. (A) Except as
specified in paragraph (f)(1)(i)(B) of this section, for obligated
parties, annual compliance reports must be submitted by whichever of
the following dates is latest:
(1) March 31 of the subsequent calendar year.
(2) The next quarterly reporting deadline under paragraph (f)(2) of
this section that is after the date the subsequent compliance year's
renewable fuel standards become effective in Sec. 80.1405(a).
(3) The next quarterly reporting deadline under paragraph (f)(2) of
this section after the annual compliance reporting deadline for the
prior compliance year.
(B)(1) For obligated parties that meet the requirements for a small
refinery under Sec. 80.1441(e)(2)(iii), for the 2019 compliance year,
annual compliance reports must be submitted no later than the next
quarterly reporting deadline under paragraph (f)(2) of this section
that is after the date the 2021 renewable fuel standards become
effective in Sec. 80.1405(a).
(2) For the 2020 compliance year, annual compliance reports must be
submitted no later than the next quarterly reporting deadline in
paragraph (f)(2) of this section after the deadline in paragraph
(f)(1)(i)(B)(1) of this section.
(3) For the 2021 compliance year, annual compliance reports must be
submitted no later than the next quarterly reporting deadline in
paragraph (f)(2) of this section after the deadline in paragraph
(f)(1)(i)(B)(2) of this section.
(ii) All other parties. For all parties other than obligated
parties, annual compliance reports must be submitted by March 31 of the
subsequent year.
(iii) Deadline publication. The annual compliance reporting
deadline will be calculated in accordance with paragraph (f)(1)(i) of
this section and published on EPA's website.
(2) Quarterly compliance reports. * * *
(3) Report certification. * * *
* * * * *
0
3. Amend Sec. 80.1464 by:
0
a. Revising paragraph (d); and
0
b. Removing and reserving paragraphs (g) and (i)(3).
The revision reads as follows:
Sec. 80.1464 What are the attest engagement requirements under the
RFS program?
* * * * *
(d) Report submission deadlines--(1) Obligated parties. (i) Except
as specified in paragraph (d)(1)(ii) of this section, for obligated
parties, annual attest engagement reports must be submitted to EPA by
whichever of the following dates is latest:
(A) June 1 of the subsequent calendar year.
(B) The next June 1 annual attest engagement reporting deadline
that is at least 60 days after the annual compliance reporting deadline
under Sec. 80.1451(f)(1)(i)(A).
(ii)(A) For obligated parties that meet the requirements for a
small refinery under Sec. 80.1441(e)(2)(iii), for the 2019 compliance
year, annual attest engagement reports must be submitted to EPA no
later than the next June 1 annual attest engagement reporting deadline
that is at least 60 days after the annual compliance reporting deadline
under Sec. 80.1451(f)(1)(i)(B)(1).
(B) For obligated parties, for the 2020 compliance year, annual
attest engagement reports must be submitted to EPA no later than the
next June 1 annual attest engagement reporting deadline that is at
least 60 days after the annual compliance reporting deadline under
Sec. 80.1451(f)(1)(i)(B)(2).
(C) For obligated parties, for the 2021 compliance year, annual
attest engagement reports must be submitted to EPA no later than the
next June 1 annual attest engagement reporting deadline that is at
least 60 days after the annual compliance reporting deadline under
Sec. 80.1451(f)(1)(i)(B)(3).
(2) All other parties. All parties other than obligated parties
must submit annual attest engagement reports to EPA by June 1 of the
subsequent calendar year.
(3) Deadline publication. The annual attest engagement reporting
deadline will be calculated in accordance with paragraph (d)(1) of this
section and published on EPA's website.
* * * * *
[FR Doc. 2021-25444 Filed 11-24-21; 8:45 am]
BILLING CODE 6560-50-P
