18136 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 

EPA-APPROVED IOWA SOURCE-SPECIFIC ORDERS/PERMITS—Continued 

Name of source Order/Permit No. 

State 

effective 

date 

EPA Approval date Explanation 

*******

(103) Union Tank Car 

Company.

Permit NO. 00–A–1089– 

S3.

9/2/14 4/3/15 and [Insert Federal Register citation].

(104) Union Tank Car 

Company.

Permit NO. 00–A–1090– 

S3.

9/2/14 4/3/15 and [Insert Federal Register citation].

(105) Union Tank Car 

Company.

Permit NO. 00–A–1091– 

S3.

9/2/14 4/3/15 and [Insert Federal Register citation].

(106) Union Tank Car 

Company.

Permit NO. 10–A–043–S3 9/2/14 4/3/15 and [Insert Federal Register citation].

(107) Union Tank Car 

Company.

Permit NO. 09–A–009–S3 9/2/14 4/3/15 and [Insert Federal Register citation].

(108) Union Tank Car 

Company.

Permit NO. 09–A–010–S3 9/2/14 4/3/15 and [Insert Federal Register citation].

*******

* * * * * 

[FR Doc. 2015–07488 Filed 4–2–15; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 80 

[EPA–HQ–OAR–2015–0049; FRL–9924–71– 

OAR] 

RIN 2060–AS48 

Regulation of Fuels and Fuel 

Additives: Cellulosic Waiver Credit 

Price and Minor Amendments to 

Renewable Fuel Standard Regulations 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is taking direct final 

action to clarify our regulations related 

to the data sources used to establish the 

cellulosic waiver credit (CWC) price. 

We are also removing references to CWC 

prices from the renewable fuel standard 

regulations, and instead intend to post 

the prices on EPA’s Web site. The direct 

final rule also indicates what the CWC 

prices for 2014 and 2015 would be using 

the data sources and methodology 

contained in the rule; however these 

prices will not be established until they 

are posted on our Web site following the 

effective date of the rule. In addition, we 

are making minor amendments to the 

renewable fuel standard program 

regulations to reinsert sections 

inadvertently overwritten by the Quality 

Assurance Program final rule published 

on July 18, 2014. 

DATES: This rule is effective on June 2, 

2015 without further notice, unless EPA 

receives relevant adverse comment by 

May 4, 2015. If EPA receives relevant 

adverse comment, we will publish in 

the Federal Register a timely 

withdrawal of the portions of this direct 

final rule on which adverse comment 

was received informing the public that 

those portions of the rule will not take 

effect. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–HQ– 

OAR–2015–0049, by one of the 

following methods: 

• www.regulations.gov: Follow the 

on-line instructions for submitting 

comments. 

• Email: a-and-r-docket@epa.gov. 

• Mail: Air and Radiation Docket and 

Information Center, Environmental 

Protection Agency, Mailcode: 28221T, 

1200 Pennsylvania Ave. NW., 

Washington, DC 20460. 

• Hand Delivery: EPA Docket Center, 

EPA WJC West Building, Room 3334, 

1301 Constitution Ave. NW., 

Washington, DC 20460. Such deliveries 

are only accepted during the Docket’s 

normal hours of operation, and special 

arrangements should be made for 

deliveries of boxed information. 

Instructions: Direct your comments to 

Docket ID No. EPA–HQ–OAR–2015– 

0049. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit information that you 

consider to be CBI or otherwise 

protected through www.regulations.gov 

or email. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means EPA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an email 

comment directly to EPA without going 

through www.regulations.gov your email 

address will be automatically captured 

and included as part of the comment 

that is placed in the public docket and 

made available on the Internet. If you 

submit an electronic comment, EPA 

recommends that you include your 

name and other contact information in 

the body of your comment and with any 

disk or CD–ROM you submit. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider your comment. 

Electronic files should avoid the use of 

special characters, any form of 

encryption, and be free of any defects or 

viruses. For additional information 

about EPA’s public docket visit the EPA 

Docket Center homepage at http://

www.epa.gov/epahome/dockets.htm. 

For additional instructions on 

submitting comments, go to Section I.B 

of the SUPPLEMENTARY INFORMATION

section of this document. 

Docket: All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, e.g., CBI or other information 

whose disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, will be publicly 

available only in hard copy. Publicly 

available docket materials are available 

either electronically in 

www.regulations.gov or in hard copy at 

the Air and Radiation Docket and 

Information Center, EPA/DC, EPA WJC 

West, Room 3334, 1301 Constitution 

Ave. NW., Washington, DC. The Public 

Reading Room is open from 8:30 a.m. to 

4:30 p.m., Monday through Friday, 


asabaliauskas on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 18137 

1CAA 211(o)(7)(D)(ii). 

excluding legal holidays. The telephone 

number for the Public Reading Room is 

(202) 566–1744, and the telephone 

number for the Air Docket is (202) 566– 

1742. 

FOR FURTHER INFORMATION CONTACT: Julia 

MacAllister, Office of Transportation 

and Air Quality, Assessment and 

Standards Division, Environmental 

Protection Agency, 2000 Traverwood 

Drive, Ann Arbor MI 48105; Telephone 

number: 734–214–4131; Fax number: 

734–214–4816; Email address: 

macallister.julia@epa.gov, or the public 

information line for the Office of 

Transportation and Air Quality; 

telephone number (734) 214–4333; 

Email address: OTAQ@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Why is EPA issuing a direct final rule? 

EPA is publishing this rule without a 

prior proposed rule because we view 

this as a noncontroversial action and we 

anticipate no adverse comment. This 

action clarifies our regulations related to 

the data sources used to establish the 

price for cellulosic waiver credits 

(CWC). EPA is also removing the CWC 

prices from our regulations so as to 

allow the prices to be established in a 

more expeditious manner. The CWC 

prices will instead be published on 

EPA’s ‘‘Renewable Fuels: Regulations & 

Standards’’ Web site (http://

www.epa.gov/otaq/fuels/

renewablefuels/regulations.htm). The 

action also reinserts regulatory 

provisions in the renewable fuel 

standard (RFS) program regulations that 

were inadvertently overwritten by the 

Quality Assurance Program (QAP) final 

rule (79 FR 42078, July 18, 2014). 

Clarifying the data sources used in 

calculating the CWC price will 

eliminate uncertainty regarding EPA’s 

process in establishing the CWC prices, 

will enable stakeholders to better 

predict the annual CWC price before it 

is established, and will allow EPA to 

establish the CWC price in a more 

timely manner. This action does not 

change the formula used to establish the 

CWC price (listed in our regulations at 

40 CFR 80.1456(d)). 

In the ‘‘Proposed Rules’’ section of 

today’s Federal Register, we are 

publishing a separate document that 

will serve as the proposed rule to make 

the changes described herein if adverse 

comments are received on this direct 

final rule. We will not institute a second 

comment period on this action. Any 

parties interested in commenting must 

do so at this time. For further 

information about commenting on this 

rule, see the ADDRESSES section of this 

document. 

If EPA receives relevant adverse 

comment or a request for a public 

hearing, we will publish a timely 

withdrawal in the Federal Register 

informing the public of the portions of 

this direct final rule that will not take 

effect. We will address all public 

comments in a subsequent final rule 

based on the proposed rule. 

Does this action apply to me? 

Entities potentially affected by this 

direct final rule are those involved with 

the production, distribution, and sale of 

transportation fuels, including gasoline 

and diesel fuel or renewable fuels such 

as ethanol and biodiesel. Potentially 

regulated categories include: 

Category NAICS1 codes SIC 2 codes Examples of potentially regulated 

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 ................................................................ 454319 5989 Other fuel dealers. 

1 North American Industry Classification System (NAICS). 

2Standard Industrial Classification (SIC) system code. 

This table is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

regulated by this action. This table lists 

the types of entities that EPA is now 

aware could potentially be regulated by 

this action. Other types of entities not 

listed in the table could also be 

regulated. To determine whether your 

activities would be regulated by this 

action, you should carefully examine 

the applicability criteria in 40 CFR part 

80. If you have any questions regarding 

the applicability of this action to a 

particular entity, consult the person 

listed in FOR FURTHER INFORMATION

CONTACT. 

Outline of This Preamble 

I. Executive Summary 

II. Clarifications Related to CWC Price 

Calculation 

III. CWC Price Calculations for 2014 and 

2015 

IV. Reinsertion of Inadvertently Overwritten 

Language 

V. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

B. Paperwork Reduction Act 

C. Regulatory Flexibility Act 

D. Unfunded Mandates Reform Act 

E. Executive Order 13132: Federalism 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

I. National Technology Transfer and 

Advancement Act 

J. Executive Order 12898: Federal Actions 

To Address Environmental Justice in 

Minority Populations and Low-Income 

Populations 

K. Congressional Review Act 

VI. Statutory Authority 

I. Executive Summary 

For any calendar year for which the 

projected volume of cellulosic biofuel 

production is less than the applicable 

volume of cellulosic biofuel set forth in 

CAA 211(o)(2)(B)(III), EPA must reduce 

the required volume of cellulosic 

biofuel for that year to the projected 

volume, and must provide obligated 

parties the opportunity to purchase 

cellulosic waiver credits (CWC). The 

price of these credits is determined 

using a formula specified in the CAA.1

The cellulosic waiver credit price is the 

greater of $0.25 or $3.00 minus the 

wholesale price of gasoline, where both 

the $0.25 and $3.00 are adjusted for 

inflation. In this action we are clarifying 

the data sources we use to calculate the 

inflation adjustments used in this 

formula. This will eliminate potential 

uncertainty regarding EPA’s approach to 

establishing the CWC prices. We are not 


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18138 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 

2 40 CFR 80.1456(d)(2). 

3 40 CFR 80.1456(d)(3). 

4For more information on Seasonally Adjusted 

vs. Unadjusted Indexes see http://www.bls.gov/cpi/ 

cpisapage.htm. 

5 40 CFR 80.1405(d). 

6The calculations for the 2013 CWC were 

explained in a memo to the docket for our 

rulemaking establishing the 2013 standards (EPA– 

HQ–OAR–2012–0546–0134). The 2013 CWC price 

was calculated in accordance with the methodology 

and data sources described in this rule, with one 

minor difference. To calculate the Inflation Factor 

the August 2012 Index (230.037) was used rather 

than the June 2012 Index (229.815). Using the June 

2012 Index in place of the August 2012 Index does 

not change the CWC waiver credit price for 2013 

of $0.42. EPA will therefore confirm the 2013 CWC 

price in the announcement on our Web site 

following the effective date of this rule. 

making any modifications to the 

formula used to calculate the CWC 

price. 

Additionally, in order to provide 

more certainty to the market through 

timely publication of CWC prices, EPA 

is also amending the procedure it uses 

to announce CWC prices. To date, we 

have established the prices by 

rulemaking and published them in the 

Code of Federal Regulations. To allow 

more expeditious publication of these 

prices, EPA is removing references to 

CWC prices from the CFR. The prices 

will instead be posted by the Office of 

Transportation and Air Quality within 

the Office of Air and Radiation on EPA’s 

‘‘Renewable Fuels: Regulations & 

Standards’’ Web site (http://

www.epa.gov/otaq/fuels/

renewablefuels/regulations.htm). 

We are also making minor 

amendments to the regulations to 

reinsert language applicable to biofuel 

producers using Arundo donax or 

Pennisetum purpureum as feedstock, 

which was inadvertently overwritten by 

the Quality Assurance Program (QAP) 

final rule (79 FR 42078, July 18, 2014), 

and to make minor conforming changes 

to the numbering of other regulatory 

provisions. 

II. Clarifications Related to CWC Price 

Calculation 

EPA is taking action to clarify sections 

of the regulations related to the CWC 

price calculation. These changes are 

consistent with the CWC price formula 

set forth in the statute, and more 

specifically, with the statutory direction 

to adjust certain terms in the formula for 

inflation. We believe the regulations as 

amended will more clearly articulate the 

data sources that EPA will use in 

calculating the CWC price for each year. 

The regulations that outline the 

process used by EPA to calculate the 

CWC price are set forth in 40 CFR 

80.1456(d). The regulations currently 

state that ‘‘the wholesale price of 

gasoline used in the CWC calculation 

will be calculated by averaging the most 

recent twelve monthly values for U.S. 

Total Gasoline Bulk Sales (Price) by 

Refiners as provided by the Energy 

Information Administration (EIA) that 

are available as of September 30 of the 

year preceding the compliance 

period.’’ 2 In practice, given the 

publication schedule for the referenced 

EIA publication, this means that EPA 

calculates the wholesale price of 

gasoline using data from the 12 months 

prior to July of the year preceding the 

compliance period (i.e., July 2011–June 

2012 data for the 2013 CWC price). We 

are not making any modifications to this 

portion of the regulations. 

The regulations also currently state 

that the inflation adjustment used in 

calculating the CWC price will be 

calculated at the time EPA sets the 

cellulosic biofuel standard.3 In an effort 

to provide certainty to the market in 

relation to the CWC price as soon as 

reasonably practical, EPA believes it 

would be preferable to announce the 

CWC price as soon as the relevant data 

on the wholesale price of gasoline is 

available. Therefore, we are amending 

these regulations to calculate the 

inflation adjustment using data from 

June of the year preceding the 

compliance period. We believe this is 

appropriate as it is the most recent 

month within the time period over 

which we calculate the average 

wholesale price of gasoline. We are also 

amending our regulations to eliminate 

the regulatory references to CWC prices. 

Instead we intend to announce the CWC 

price in a notice on our ‘‘Renewable 

Fuels: Regulations & Standards’’ Web 

site by November of the year preceding 

the compliance period. Consistent with 

previous CWC calculations, EPA will 

continue to base the inflation 

adjustment on the Consumer Price 

Index for All Urban Consumers (CPI–U): 

U.S. City Average, Unadjusted Index for 

All Items expenditure category as 

provided by the Bureau of Labor and 

Statistics. We are amending our 

regulations in this action to clarify that 

we are using the unadjusted price index, 

rather than the seasonally adjusted price 

index, to calculate the inflation 

adjustment. We believe this is 

appropriate as the unadjusted index 

most accurately reflects the prices 

consumers actually pay and do not 

change, whereas the seasonally adjusted 

indexes are subject to revision for up to 

five years after their release.4 We are 

also clarifying that we are using ‘‘US 

City Average’’ data, as opposed to data 

for geographic subsets of the country. 

This is appropriate in light of the 

nation-wide applicability of the RFS 

program. Both of these changes simply 

clarify EPA’s current practice, and are 

designed to promote regulatory certainty 

and understanding by stakeholders. 

We are also amending the section of 

our regulations where the CWC price for 

previous years is listed.5 EPA has 

included the prices for 2010, 2011, 

2012, and 2013 CWCs in our 

regulations. Promulgating prices in our 

regulations, however, requires EPA to 

undertake a rulemaking, which we 

believe may unnecessarily delay the 

announcement of the CWC price. 

Furthermore, we believe the CWC price 

need not be established by rulemaking, 

for the following reasons. First, the 

formula and all data sources for the 

CWC price are specified in our 

regulations, so the actual price 

calculation is a procedural action that 

will not benefit from a notice and 

comment rulemaking. Second, CWCs 

are purchased from EPA, and EPA can 

ensure that the correct price is paid for 

them. Finally, the publication of the 

CWC price in the CFR is not necessary 

for informational purposes as EPA 

intends to promptly post the CWC 

prices on our Web site. 

Therefore, in this action EPA is 

deleting the sections of our regulations 

containing the CWC prices for previous 

years and is instead including a 

statement in the regulations indicating 

that the CWC price for each year will be 

posted on EPA’s ‘‘Renewable Fuels: 

Regulations & Standards’’ Web site 

(http://www.epa.gov/otaq/fuels/

renewablefuels/regulations.htm). 

Adopting this approach will allow EPA 

to announce the CWC prices at the 

earliest opportunity. We believe this 

will benefit both cellulosic biofuel 

producers and obligated parties. EPA 

will post the CWC prices for 2013, 2014, 

and 2015 on our Web site following the 

effective date of this rule. 

III. CWC Price Calculations for 2014 

and 2015 

To illustrate the derivation of CWC 

prices pursuant to the statutory formula, 

and with the data sources specified in 

this direct final rule, we explain in this 

section the derivation of CWC prices for 

2014 and 2015.6 EPA determined the 

average wholesale (refinery gate) price 

of gasoline using the monthly average 

prices for the 12 months prior to July of 

the year preceding each compliance 

period. In this calculation EPA uses the 

U.S. Total Gasoline Bulk Sales Price by 

Refiners (Dollars per Gallon) as reported 

by the U.S. Energy Information 

Administration (EIA). The data are 


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shown below in Table 1 and Table 2 for 

the calculations for 2014 and 2015, 

respectively, and can be found at: 

(http://www.eia.gov/dnav/pet/hist/

LeafHandler.ashx?n=PET&s=EMA_

EPM0_PBR_NUS_DPG&f=M). 

TABLE 1—WHOLESALE GASOLINE

PRICES FOR 2014 CWC CALCULATION

Month 

Average 

price in 

($) 

July 2012 ...................................... 2.703 

August 2012 ................................. 2.961 

September 2012 ........................... 3.133 

October 2012 ................................ 2.922 

November 2012 ............................ 2.622 

December 2012 ............................ 2.554 

January 2013 ................................ 2.668 

February 2013 .............................. 2.892 

March 2013 ................................... 2.963 

April 2013 ..................................... 2.822 

May 2013 ...................................... 2.824 

June 2013 ..................................... 2.817 

TABLE 2—WHOLESALE GASOLINE

PRICES FOR 2015 CWC CALCULATION

Month 

Average 

price in 

($) 

July 2013 ...................................... 2.879 

August 2013 ................................. 2.916 

September 2013 ........................... 2.831 

October 2013 ................................ 2.610 

November 2013 ............................ 2.496 

December 2013 ............................ 2.551 

January 2014 ................................ 2.598 

February 2014 .............................. 2.650 

March 2014 ................................... 2.763 

April 2014 ..................................... 2.829 

May 2014 ...................................... 2.853 

June 2014 ..................................... 2.924 

The average monthly price in dollars 

for the calculation of the 2014 CWC 

price is 2.823. The average monthly 

price in dollars for the calculation of the 

2015 CWC price is 2.742. 

The CAA requires that EPA adjust for 

inflation the comparison values of 

twenty-five cents ($0.25) and three 

dollars ($3.00) in the CWC price 

formula. EPA must compare the inflated 

twenty-five cent value with the amount 

the inflated three dollar value exceeds 

the average wholesale price of gasoline. 

EPA is required to use the greater of the 

two values as the price for the cellulosic 

biofuel waiver credits. 

EPA evaluated inflation by using the 

Unadjusted Index values from the 

Consumer Price Index for All Urban 

Consumers (CPI–U): U.S. City Average, 

for the All Items expenditure category as 

provided by the Bureau of Labor and 

Statistics, for the months of January 

2009 (the first comparable value after 

2008) and June 2013 and June 2014, as 

discussed in Section II of this preamble. 

These unadjusted indexes are used to 

calculate an Inflation Factor for each 

year, as shown in Table 4 below. 

Finally, we compare $0.25 (inflation 

adjusted) to $3.00 (inflation adjusted) 

minus the wholesale price of gasoline 

for each year. The greater of these values 

is the price for the cellulosic waiver 

credits. 

TABLE 3—INFLATION ADJUSTMENTS

Month Unadjusted 

index Source 

January 2009 ..................................................................................................... 211.143 http://www.bls.gov/cpi/cpid0901.pdf (Table 1). 

June 2013 .......................................................................................................... 233.504 http://www.bls.gov/cpi/cpid1306.pdf (Table 1). 

June 2014 .......................................................................................................... 238.343 http://www.bls.gov/cpi/cpid1406.pdf (Table 1). 

TABLE 4—INFLATION FACTORS

Months Equation Inflation 

factor 

Jan. 2009–June 2013 ............................................................................................................. 1+(233.504-211.143)/211.143 ....... 1.106 

Jan. 2009–June 2014 ............................................................................................................. 1+(238.343-211.143)/211.143 ....... 1.129 

TABLE 5—CELLULOSIC WAIVER CREDIT PRICE CALCULATIONS

Year $0.25 

(Inflation adjusted) 

$3—Wholesale price of gasoline 

(inflation adjusted) 

CWC Price 

(larger of the two 

values, rounded to 

the nearest cent) 

2014 .................... $0.25 *1.106 = $0.28 ............................ ($3.00 *1.106)¥$2.823 = $0.4947 ...................................... $0.49 

2015 .................... $0.25 *1.129 = $0.28 ............................ ($3.00 *1.129)¥$2.742 = $0.6445 ...................................... 0.64 

As shown in Table 5, using the data 

sources for the inflation adjustment that 

are specified in this direct final rule 

results in a CWC price of $0.49 for 2014 

and $0.64 for 2015. These prices, along 

with the CWC price for 2013 ($0.42) will 

be posted on EPA’s Web site after the 

effective date of this rule. 

EPA notes that in this action we are 

not making a determination regarding 

whether CWCs will actually be offered. 

As required by statute, CWCs are only 

made available for sale if EPA lowers 

the required cellulosic biofuel volume 

requirement below the applicable 

volume set forth in the Act. EPA will 

decide whether or not it will lower the 

required cellulosic biofuel volumes in 

future rules establishing the 2014 and 

2015 cellulosic biofuel percentage 

standards. At that time EPA will 

determine if CWCs will be sold. If so, 

they will be sold at the prices indicated 

above. However EPA notes that it has 

offered CWCs for every year since 2010, 

the first year for which a separate 

cellulosic biofuel standard was 

established. Given the anticipated 

shortfall in cellulosic biofuel 

production, as compared to statutory 

volumes, in these years it is probable 

that CWCs will be offered. 

IV. Reinsertion of Inadvertently 

Overwritten Language 

In the RFS RIN Quality Assurance 

Program final rule (79 FR 42078, July 

18, 2014), we moved the previous 40 

CFR 80.1426(f)(12) (regarding process 


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heat produced from biogas) to 40 CFR 

80.1426(f)(14) as we had proposed on 

February 21, 2013 (78 FR 12158). When 

we moved 40 CFR 80.1426(f)(12) to 40 

CFR 80.1426(f)(14), however, we 

inadvertently overwrote the previous 40 

CFR 80.1426(f)(14) (regarding renewable 

fuel produced from giant reed (Arundo 

donax) or napier grass (Pennisetum 

purpureum)) that had been finalized in 

a separate final rule which was 

published on July 11, 2013 (78 FR 

41703). The new 40 CFR 80.1426(f)(12) 

finalized in the RFS RIN Quality 

Assurance Program final rule dealt with 

additional requirements for producers 

and importers when generating RINs. In 

today’s action, we are amending the 

regulations to undo our inadvertent 

elimination of the regulatory provisions 

related to giant reed and napier grass. 

Specifically, we are: (1) Re-inserting the 

inadvertently eliminated language as 40 

CFR 80.1426(f)(14) (See 78 FR 41714, 

July 11, 2013); (2) moving the current 40 

CFR 80.1426(f)(14) (process heat 

produced from biogas) back to 40 CFR 

80.1426(f)(12), where it existed prior to 

the RFS RIN Quality Assurance Program 

final rule (See 75 FR 79977, December 

21, 2010); and (3) moving the current 40 

CFR 80.1426(f)(12) to a new 40 CFR 

80.1426(f)(17). 

V. Statutory and Executive Order 

Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

This action is not a significant 

regulatory action and was therefore not 

submitted to the Office of Management 

and Budget (OMB) for review. 

B. Paperwork Reduction Act 

This action does not impose an 

information collection burden under the 

PRA. The changes made to the 

regulations as a result of this action 

impose no new or different reporting 

requirements on regulated parties. 

C. Regulatory Flexibility Act 

I certify that this action will not have 

a significant economic impact on a 

substantial number of small entities 

under the RFA. In making this 

determination, the impact of concern is 

any significant adverse economic 

impact on small entities. An agency may 

certify that a rule will not have a 

significant economic impact on a 

substantial number of small entities if 

the rule relieves regulatory burden, has 

no net burden or otherwise has a 

positive economic effect on the small 

entities subject to the rule. This action 

clarifies the data sources and 

methodology used by EPA to establish 

the CWC price, establishes these prices 

for 2014 and 2015, and reinserts 

inadvertently overwritten regulatory 

language. The impacts of the RFS2 

program on small entities were already 

addressed in the RFS2 final rule 

promulgated on March 26, 2010 (75 FR 

14670), and this rule will not impose 

any additional requirements on small 

entities beyond those already analyzed. 

We have therefore concluded that this 

action will have no net regulatory 

burden for all directly regulated small 

entities. 

D. Unfunded Mandates Reform Act 

This action does not contain any 

unfunded mandate as described in 

UMRA, 2 U.S.C. 1531–1538, and does 

not significantly or uniquely affect small 

governments. This action implements 

mandate(s) specifically and explicitly 

set forth in Clean Air Act section 211(o) 

without the exercise of any policy 

discretion by the EPA. 

E. Executive Order 13132: Federalism 

This action does not have federalism 

implications. It will not have substantial 

direct effects on the states, on the 

relationship between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

This action does not have tribal 

implications, as specified in Executive 

Order 13175. This rule will be 

implemented at the Federal level and 

potentially impacts gasoline, diesel, and 

renewable fuel producers, importers, 

distributors, and marketers. Tribal 

governments would be affected only to 

the extent they purchase and use 

regulated fuels. Thus, Executive Order 

13175 does not apply to this action. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

The EPA interprets E.O. 13045 as 

applying only to those regulatory 

actions that concern environmental 

health or safety risks that the EPA has 

reason to believe may 

disproportionately affect children, per 

the definition of ‘‘covered regulatory 

action’’ in section 2–202 of the 

Executive Order. This action is not 

subject to Executive Order 13045 

because it does not establish an 

environmental standard intended to 

mitigate health or safety risks and 

because it implements specific 

standards established by Congress in 

statutes (section 211(o) of the Clean Air 

Act). 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This action is not subject to Executive 

Order 13211 because it is not a 

significant regulatory action under 

Executive Order 12866. 

I. National Technology Transfer and 

Advancement Act 

This rulemaking does not involve 

technical standards. 

J. Executive Order 12898: Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Populations 

This rule is a technical correction and 

does not concern an environmental 

health or safety risk. Therefore, 

Executive Order 12898 does not apply. 

K. Congressional Review Act 

This action is subject to the CRA, and 

the EPA will submit a rule report to 

each House of the Congress and to the 

Comptroller General of the United 

States. This action is not a ‘‘major rule’’ 

as defined by 5 U.S.C. 804(2). 

VI. Statutory Authority 

Statutory authority for this action 

comes from section 211 of the Clean Air 

Act, 42 U.S.C. 7545. 

List of Subjects in 40 CFR Part 80 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Diesel fuel, Fuel 

additives, Gasoline, Imports, Oil 

imports, Petroleum, Renewable Fuel. 

Dated: March 24, 2015. 

Gina McCarthy, 

Administrator. 

For the reasons set forth in the 

preamble, title 40, chapter I of the Code 

of Federal Regulations is amended as set 

forth below. 

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. Section 80.1405 is amended by 

revising paragraph (d) to read as 

follows: 


asabaliauskas on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 18141 

§ 80.1405 What are the Renewable Fuel 

Standards? 

* * * * * 

(d) The price for cellulosic biofuel 

waiver credits will be calculated in 

accordance with § 80.1456(d) and 

published on EPA’s Web site. 

■ 3. Section 80.1426 is amended by 

revising paragraphs (f)(12) and (f)(14), 

and adding paragraph (f)(17) to read as 

follows: 

§ 80.1426 How are RINs generated and 

assigned to batches of renewable fuel by 

renewable fuel producers or importers? 

* * * * * 

(f) * * * 

(12) For purposes of Table 1 of this 

section, process heat produced from 

combustion of gas at a renewable fuel 

facility is considered derived from 

biomass if the gas is biogas. 

(i) For biogas directly transported to 

the facility without being placed in a 

commercial distribution system, all of 

the following conditions must be met: 

(A) The producer has entered into a 

written contract for the procurement of 

a specific volume of biogas with a 

specific heat content. 

(B) The volume of biogas was sold to 

the renewable fuel production facility, 

and to no other facility. 

(C) The volume and heat content of 

biogas injected into the pipeline and the 

volume of gas used as process heat are 

measured by continuous metering. 

(ii) For biogas that has been gathered, 

processed and injected into a common 

carrier pipeline, all of the following 

conditions must be met: 

(A) The producer has entered into a 

written contract for the procurement of 

a specific volume of biogas with a 

specific heat content. 

(B) The volume of biogas was sold to 

the renewable fuel production facility, 

and to no other facility. 

(C) The volume of biogas that is 

withdrawn from the pipeline is 

withdrawn in a manner and at a time 

consistent with the transport of fuel 

between the injection and withdrawal 

points. 

(D) The volume and heat content of 

biogas injected into the pipeline and the 

volume of gas used as process heat are 

measured by continuous metering. 

(E) The common carrier pipeline into 

which the biogas is placed ultimately 

serves the producer’s renewable fuel 

facility. 

(iii) The process heat produced from 

combustion of gas at a renewable fuel 

facility described in paragraph (f)(12)(i) 

of this section shall not be considered 

derived from biomass if any other party 

relied upon the contracted volume of 

biogas for the creation of RINs. 

* * * * * 

(14) A producer or importer of 

renewable fuel using giant reed (Arundo 

donax) or napier grass (Pennisetum 

purpureum) as a feedstock may generate 

RINs for that renewable fuel if: 

(i) The feedstock is produced, 

managed, transported, collected, 

monitored, and processed according to 

a Risk Mitigation Plan approved by EPA 

under the registration procedures 

specified in § 80.1450(b)(1)(x)(A); or, 

(ii) EPA has determined that there is 

not a significant likelihood of spread 

beyond the planting area of the 

feedstock used for production of the 

renewable fuel. Any determination that 

Arundo donax or Pennisetum 

purpureum does not present a 

significant likelihood of spread beyond 

the planting area must be based upon 

clear and compelling evidence, 

including information and supporting 

data submitted by the producer. Such a 

determination must be made by EPA as 

specified in § 80.1450(b)(1)(x)(B). 

* * * * * 

(17)(i) For purposes of this section, 

any renewable fuel other than ethanol, 

biodiesel, or renewable diesel that meets 

the ASTM D 975–13a Grade No. 1–D or 

No. 2–D specifications (incorporated by 

reference, see § 80.1468) is considered 

renewable fuel and the producer or 

importer may generate RINs for such 

fuel only if all of the following apply: 

(A) The fuel is produced from 

renewable biomass and qualifies for a D 

code in Table 1 to this section or has 

been otherwise approved by the 

Administrator. 

(B) The fuel producer or importer 

maintains records demonstrating that 

the fuel was produced for use as a 

transportation fuel, heating oil or jet fuel 

by any of the following: 

(1) Blending the renewable fuel into 

gasoline or diesel fuel to produce a 

transportation fuel, heating oil or jet fuel 

that meets all applicable standards. 

(2) Entering into a written contract for 

the sale of the renewable fuel, which 

specifies the purchasing party shall 

blend the fuel into gasoline or diesel 

fuel to produce a transportation fuel, 

heating oil or jet fuel that meets all 

applicable standards. 

(3) Entering into a written contract for 

the sale of the renewable fuel, which 

specifies that the fuel shall be used in 

its neat form as a transportation fuel, 

heating oil or jet fuel that meets all 

applicable standards. 

(C) The fuel was sold for use in or as 

a transportation fuel, heating oil, or jet 

fuel, and for no other purpose. 

(ii) [Reserved] 

* * * * * 

■ 4. Section 80.1456 is amended by 

revising paragraph (d)(3) to read as 

follows: 

§ 80.1456 What are the provisions for 

cellulosic biofuel waiver credits? 

* * * * * 

(d) * * * 

(3) The inflation adjustment will be 

calculated by comparing the Consumer 

Price Index for All Urban Consumers 

(CPI–U): U.S. City Average, Unadjusted 

Index for All Items expenditure category 

as provided by the Bureau of Labor 

Statistics for June of the year preceding 

the compliance period to the 

comparable value reported for January 

2009. 

* * * * * 

[FR Doc. 2015–07476 Filed 4–2–15; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2015–0125; FRL–9924–40] 

Extension of Tolerances for 

Emergency Exemptions (Multiple 

Chemicals) 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation extends or reestablishes time-limited tolerances for 

residues of the pesticides fluridone in or 

on cotton undelinted seed, and 

diflubenzuron in or on alfalfa forage and 

hay. These actions are in response to 

EPA’s granting of emergency 

exemptions under the Federal 

Insecticide, Fungicide, and Rodenticide 

Act (FIFRA) authorizing use of these 

pesticides. In addition, the Federal 

Food, Drug, and Cosmetic Act (FFDCA) 

requires EPA to establish a time-limited 

tolerance or exemption from the 

requirement for a tolerance for pesticide 

chemical residues in food that will 

result from the use of a pesticide under 

an emergency exemption granted by 

EPA. 

DATES: This regulation is effective April 

3, 2015. Objections and requests for 

hearings must be received on or before 

June 2, 2015, and must be filed in 

accordance with the instructions 

provided in 40 CFR part 178 (see also 

Unit I.C. of the SUPPLEMENTARY

INFORMATION). 

ADDRESSES: The docket for this action, 

identified by docket identification (ID) 


asabaliauskas on DSK5VPTVN1PROD with RULES