```

[Federal Register: May 10, 2010 (Volume 75, Number 89)]
[Rules and Regulations]               
[Page 26025-26048]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10my10-11]                         

[[Page 26025]]

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Part IV

Environmental Protection Agency

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40 CFR Part 80

Regulation of Fuels and Fuel Additives: Modifications to Renewable Fuel 
Standard Program; Final Rule and Proposed Rule

[[Page 26026]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2005-0161; FRL-9147-6]
RIN 2060-AQ31

 
Regulation of Fuels and Fuel Additives: Modifications to 
Renewable Fuel Standard Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to amend certain of the 
Renewable Fuel Standard program regulations published on March 26, 
2010, that are scheduled to take effect on July 1, 2010 (the ``RFS2 
regulations''). Following publication of the RFS2 regulations, 
promulgated in response to the requirements of the Energy Independence 
and Security Act of 2007, EPA discovered some technical errors and 
areas within the final RFS2 regulations that could benefit from 
clarification or modification. This direct final rule amends the RFS2 
regulations to make the appropriate corrections, clarifications, and 
modifications.

DATES: This direct final rule is effective on July 1, 2010 without 
further notice, except to the extent that EPA receives adverse comment 
by June 9, 2010 or receives a request for a public hearing by May 25, 
2010. If EPA receives adverse comment or a request for a hearing, we 
will publish a timely withdrawal in the Federal Register informing the 
public that the amendment, paragraph, or section of the rule on which 
adverse comment or a hearing request were received will not take 
effect. If a public hearing is requested, we will publish a notice in 
the Federal Register announcing the date and location of the hearing at 
least 14 days prior to the hearing.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2005-0161, by one of the following methods:
    http://www.regulations.gov. Follow the on-line 
instructions for submitting comments.
     E-mail: a-and-r-docket@epa.gov, Attention Air and 
Radiation Docket ID No. EPA-HQ-OAR-2005-0161.
     Mail: Air and Radiation Docket, Docket No. EPA-HQ-OAR-
2005-0161, Environmental Protection Agency, Mail Code: 6406J, 1200 
Pennsylvania Ave., NW., Washington, DC 20460. Please include a total of 
2 copies.
     Hand Delivery: EPA Docket Center, EPA/DC, EPA West, Room 
3334, 1301 Constitution Ave., NW., Washington, DC, 20460, Attention Air 
and Radiation Docket, ID No. EPA-HQ-OAR-2005-0161. 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-
2005-0161. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://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 http://www.regulations.gov or e-mail. The http://www.regulations.gov website 
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 e-mail comment directly to EPA without 
going through http://www.regulations.gov, your e-mail 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.
    Docket: All documents in the docket are listed in the http://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 http://www.regulations.gov or in hard copy at the Air and Radiation 
Docket, EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW., 
Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 
p.m., Monday through Friday, excluding legal holidays. The telephone 
number for the Public Reading Room is (202) 566-1744, and the telephone 
number for the Air and Radiation Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Megan Brachtl, Compliance and 
Innovative Strategies Division, Office of Transportation and Air 
Quality, Mail Code: 6405J, U.S. Environmental Protection Agency, 1200 
Pennsylvania Avenue, NW., 20460; telephone number: (202) 343-9473; fax 
number: (202) 343-2802; e-mail address: brachtl.megan@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Why is EPA using a direct final rule?

    EPA is publishing this rule without a prior proposed rule because 
we view this as a non-controversial action and anticipate no adverse 
comment. However, in the ``Proposed Rules'' section of today's Federal 
Register, we are publishing a separate document that will serve as the 
proposal to adopt the provisions in this direct final rule on which 
adverse comments or a hearing request are filed. 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 adverse comment or a request for hearing on any 
portion of this rule, we will publish a timely withdrawal in the 
Federal Register informing the public that the portion of the rule on 
which adverse comment or a hearing request was received will not take 
effect. Any distinct amendment, paragraph, or section of today's rule 
for which we do not receive adverse comment or a hearing request will 
become effective on the date set out above, notwithstanding any adverse 
comment or hearing request on any other distinct amendment, paragraph, 
or section of this rule. We will address all public comments in any 
subsequent final rule based on the proposed rule.

II. Does this action apply to me?

    Entities potentially affected by this action include those involved 
with the production, distribution and sale of transportation fuels, 
including gasoline and diesel fuel, or renewable fuels such as ethanol 
and biodiesel. Regulated categories and entities affected by this 
action include:

[[Page 26027]]

----------------------------------------------------------------------------------------------------------------
                                                  NAICS codes                        Examples of potentially
                   Category                           \a\        SIC codes \b\          regulated parties
----------------------------------------------------------------------------------------------------------------
Industry......................................          324110            2911  Petroleum refiners, importers.
Industry......................................          325193            2869  Ethyl alcohol manufacturers.
Industry......................................          325199            2869  Other basic organic chemical
                                                                                 manufacturers.
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.
----------------------------------------------------------------------------------------------------------------
\a\ North American Industry Classification System (NAICS).
\b\ Standard Industrial Classification (SIC) system code.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that EPA is now aware 
could be potentially regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your entity is regulated by this action, you should carefully examine 
the applicability criteria of Part 80, subparts D, E and F of title 40 
of the Code of Federal Regulations. If you have any question regarding 
applicability of this action to a particular entity, consult the person 
in the preceding FOR FURTHER INFORMATION CONTACT section above.

III. What should I consider as I prepare my comments for EPA?

    A. Submitting CBI. Do not submit this information to EPA through 
http://www.regulations.gov or e-mail. Clearly mark the part or all of 
the information that you claim to be CBI. For CBI information in a disk 
or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM 
as CBI and then identify electronically within the disk or CD ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    B. Tips for Preparing Your Comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree; suggest alternatives 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.
    C. Docket Copying Costs. You may be charged a reasonable fee for 
photocopying docket materials, as provided in 40 CFR part 2.

IV. Renewable Fuel Standard (RFS2) Program Amendments

    EPA is taking direct final action to amend certain of the Renewable 
Fuel Standard regulations published on March 26, 2010, at 75 FR 14670 
(the ``RFS2 regulations'') that are scheduled to take effect on July 1, 
2010. Following publication of the RFS2 regulations, EPA discovered 
some technical errors and areas that could benefit from clarification 
or modification. As a result, we are making the following amendments to 
the RFS2 regulations at 40 CFR part 80, subpart M.

A. Summary of Amendments

    Below is a table listing the provisions that we are amending. Many 
of the amendments address grammatical or typographical errors or 
provide clarification of language contained in the final RFS2 
regulations. A few amendments are being made in order to correct 
regulatory language that inadvertently misrepresented our intent as 
reflected in the preamble to the final RFS2 regulations. We have 
provided additional explanation for several of these amendments in the 
sections IV.B through IV.M below.

                                             RFS2 Program Amendments
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                                  Section                                                Description
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80.1401....................................................................   Corrected typographical
                                                                              errors in the definitions of
                                                                              ``advanced biofuel'' and
                                                                              ``forestland.''
                                                                              Deleted definition of
                                                                              ``fractionation of feedstocks''
                                                                              and added definitions of ``corn
                                                                              oil fractionation,'' ``membrane
                                                                              separation,'' and ``raw starch
                                                                              hydrolysis'' to be consistent with
                                                                              terms listed as advanced
                                                                              technologies in Table 2 to Sec.
                                                                              80.1426. See Section IV.B.
                                                                              Deleted definition of
                                                                              ``yard waste,'' since the term
                                                                              ``separated yard waste'' is
                                                                              defined in the context of Sec.
                                                                              80.1426(f)(5)(i)(A).
                                                                              Added definition of
                                                                              ``actual peak capacity'' (moved
                                                                              from Sec.   80.1403(a)(3)) and
                                                                              revised definition to clarify that
                                                                              actual peak capacity for
                                                                              facilities that commenced
                                                                              construction prior to December 19,
                                                                              2007, but that did not operate
                                                                              prior to 2008, should be based on
                                                                              any calendar year after startup
                                                                              during the first three years of
                                                                              operation. This definition was
                                                                              also revised to clarify that for
                                                                              facilities that commenced
                                                                              construction after December 19,
                                                                              2007 but before January 1, 2010,
                                                                              that are fired with natural gas,
                                                                              biomass, or a combination thereof,
                                                                              the actual peak capacity is based
                                                                              on any calendar year after startup
                                                                              during the first three years of
                                                                              operation.
                                                                              Added definition of
                                                                              ``baseline volume'' (moved from
                                                                              Sec.   80.1403(a)(3)). See Section
                                                                              IV.C.

[[Page 26028]]

                                                                              Added definition of
                                                                              ``foreign ethanol producer'' to
                                                                              describe foreign parties that
                                                                              produce ethanol for use in
                                                                              transportation fuel, heating oil,
                                                                              or jet fuel in the United States.
                                                                              See Section IV.D.
                                                                              Added definition of
                                                                              ``permitted capacity'' (moved from
                                                                              80.1403(a)(3)) and revised
                                                                              definition to clarify the dates
                                                                              before which permits used to
                                                                              establish a facility's permitted
                                                                              capacity must have been issued or
                                                                              revised. See Section IV.E.
                                                                              Added definition of
                                                                              ``renewable electricity'' to
                                                                              clarify that electricity must meet
                                                                              the definition of renewable fuel
                                                                              in order to qualify for RINs.
                                                                              Revised definition of
                                                                              ``biogas'' to clarify that biogas
                                                                              must meet the definition of
                                                                              renewable fuel in order to qualify
                                                                              for RINs.
                                                                              Revised definition of
                                                                              ``combined heat and power'' to
                                                                              clarify meaning. See Section IV.B.
                                                                              Revised definition of
                                                                              ``corn oil extraction'' to clarify
                                                                              that ``DGS'' means ``distillers
                                                                              grains and solubles.'' See Section
                                                                              IV.B.
                                                                              Revised definition of
                                                                              ``exporter'' to clarify that
                                                                              exported fuels must be exported
                                                                              from the contiguous 48 states or
                                                                              Hawaii.
                                                                              Revised definition of
                                                                              ``naphtha'' to clarify that it can
                                                                              be either a blendstock or fuel
                                                                              blending component and need not be
                                                                              renewable fuel. See Section IV.F.
                                                                              Revised definition of
                                                                              ``non-ester renewable diesel'' to
                                                                              clarify that it must be able to be
                                                                              used in an engine designed to
                                                                              operate on conventional diesel
                                                                              fuel, or be heating oil or jet
                                                                              fuel, and that it may also be
                                                                              known as renewable diesel. Also
                                                                              deleted requirement that non-ester
                                                                              renewable diesel be registered
                                                                              under 40 CFR part 79 for
                                                                              consistency with other definitions
                                                                              in Sec.   80.1401.
                                                                              Revised definitions of
                                                                              ``pastureland'' and ``pre-
                                                                              commercial thinnings'' to clarify
                                                                              meaning.
                                                                              Revised definition of
                                                                              ``Renewable Identification Number
                                                                              (RIN)'' to clarify that a gallon-
                                                                              RIN represents a gallon of
                                                                              renewable fuel used for compliance
                                                                              with renewable volume obligations
                                                                              under Sec.   80.1427.
                                                                              Revised definition of
                                                                              ``transportation fuel'' to clarify
                                                                              that fuel used in ocean-going
                                                                              vessels is not transportation fuel
                                                                              under Subpart M.
80.1403(a)(1) and (a)(2); removed (a)(3)...................................  Moved definitions of ``baseline
                                                                              volume,'' ``permitted capacity,''
                                                                              and ``actual peak capacity'' to
                                                                              Sec.   80.1401 to consolidate with
                                                                              other definitions.
80.1403(c)(2)..............................................................  Revised to require that
                                                                              construction of a grandfathered
                                                                              renewable fuel production facility
                                                                              for which construction commenced
                                                                              prior to December 19, 2007, be
                                                                              complete by December 19, 2010,
                                                                              rather than within 36 months from
                                                                              the date of commencement of
                                                                              construction. See Section IV.G.
80.1405(c).................................................................  Revised definition of ``RFVCB,i''
                                                                              to clarify that the volume of
                                                                              cellulosic biofuel used to
                                                                              calculate the annual standard for
                                                                              cellulosic biofuel will either be
                                                                              the statutory volume or the
                                                                              adjusted volume in the event that
                                                                              EPA waives a portion of the
                                                                              statutory volume requirement.
80.1406(c)(1)..............................................................  Revised to clarify that, unless
                                                                              otherwise excepted, when
                                                                              demonstrating compliance with the
                                                                              RFS2 regulations on an aggregate
                                                                              basis, an obligated party must
                                                                              include all of the refineries that
                                                                              it operates.
80.1406(f).................................................................  Revised to clarify that all joint
                                                                              owners of a gasoline or diesel
                                                                              refinery or import facility are
                                                                              subject to the liability
                                                                              provisions of Sec.   80.1461(d).
80.1415(a)(1)..............................................................  Corrected references to paragraphs
                                                                              that describe gallon equivalents
                                                                              for biogas and electricity.
80.1415(a)(2)..............................................................  Revised to clarify that the
                                                                              equivalence value represents the
                                                                              number of gallon-RINs that can be
                                                                              generated for a gallon of
                                                                              renewable fuel.
80.1415(b)(5) and (b)(6)...................................................  Revised to clarify the equivalence
                                                                              values for biogas and electricity,
                                                                              respectively.
80.1415(c)(1)..............................................................  Revised definition of variable
                                                                              ``R'' in equivalence value
                                                                              equation to clarify that the
                                                                              renewable content of a renewable
                                                                              fuel is based on the portion that
                                                                              came from renewable biomass, and
                                                                              that it should be expressed as a
                                                                              fraction, not a percentage.
80.1416(a) and (d).........................................................  Revised to clarify the
                                                                              circumstances under which a party
                                                                              may petition EPA for consideration
                                                                              of a D code for their renewable
                                                                              fuel.
80.1416(b)(2)(vi)..........................................................  Revised to clarify that information
                                                                              submitted to EPA by a company for
                                                                              purposes of evaluating a new
                                                                              renewable fuel pathway must
                                                                              include the current and future
                                                                              quantities of feedstocks used to
                                                                              produce the renewable fuel,
                                                                              including information on current
                                                                              and projected yields for
                                                                              feedstocks that are harvested or
                                                                              collected.
80.1416(c)(2)..............................................................  Revised to clarify that the
                                                                              responsible corporate officer of
                                                                              the company submitting a petition
                                                                              for evaluation of a new renewable
                                                                              fuel pathway must sign and certify
                                                                              that the petition meets all the
                                                                              applicable requirements.
80.1425....................................................................  Amended to clarify that RINs
                                                                              generated after July 1, 2010, may
                                                                              only be generated and transferred
                                                                              using the EPA-Moderated
                                                                              Transaction System (EMTS) and will
                                                                              not be identified by a 38-digit
                                                                              code.
80.1425(i).................................................................  Revised to clarify that the value
                                                                              of EEEEEEEE in a batch-RIN will be
                                                                              determined by the number of gallon-
                                                                              RINs generated for the batch.
80.1426(a)(2)..............................................................  Amended to clarify that renewable
                                                                              fuel contained in imported heating
                                                                              oil and jet fuel, in addition to
                                                                              that contained in imported
                                                                              transportation fuel, may qualify
                                                                              for RIN generation.
80.1426(c)(2)..............................................................  Corrected typographical error.
80.1426(c)(3) and 80.1455(c)...............................................  Revised to clarify the conditions
                                                                              under which a renewable fuel
                                                                              producer may qualify for the
                                                                              temporary producer threshold and
                                                                              not be required to generate RINs
                                                                              for their renewable fuel.

[[Page 26029]]

80.1426(c)(4)..............................................................  Revised to prohibit importers of
                                                                              renewable fuel produced by a
                                                                              foreign renewable fuel producer,
                                                                              or of renewable fuel made with
                                                                              ethanol produced by a foreign
                                                                              ethanol producer, from generating
                                                                              RINs for such fuel or ethanol
                                                                              unless the foreign renewable fuel
                                                                              producer or foreign ethanol
                                                                              producer is registered with EPA as
                                                                              required in Sec.   80.1450. See
                                                                              Section IV.D.
80.1426(c)(6)..............................................................  Revised to prohibit the generation
                                                                              of RINs for a volume of renewable
                                                                              fuel produced from other renewable
                                                                              fuel that was accompanied by RINs,
                                                                              either assigned or separated.
80.1426(d)(1), (f)(3)(iv), and (f)(3)(v)...................................  Revised to clarify that a unique
                                                                              BBBBB code in the RIN, or its
                                                                              equivalent in EMTS, is used to
                                                                              identify a batch of renewable fuel
                                                                              from a given renewable fuel
                                                                              producer or importer.
80.1426(d)(2)(ii)..........................................................  Amended to clarify that the RIN
                                                                              volume used to determine the last
                                                                              gallon-RIN of a batch of renewable
                                                                              fuel is identified as VRIN in the
                                                                              equations at Sec.   80.1426(f).
80.1426, Table 1...........................................................  Revised to clarify which feedstocks
                                                                              may be used to produce renewable
                                                                              fuel, in order to be consistent
                                                                              with definitions at Sec.
                                                                              80.1401. Also revised to clarify
                                                                              the extent to which distillers
                                                                              grains and solubles may be dried
                                                                              via the application of thermal
                                                                              energy for renewable fuel to
                                                                              qualify for certain fuel pathways.
80.1426, Table 2...........................................................  Revised to clarify the extent to
                                                                              which renewable fuel producers
                                                                              must use certain advanced
                                                                              technologies in order for them to
                                                                              be considered when determining the
                                                                              proper D code for their fuel. See
                                                                              Section IV.B.
80.1426, Table 3...........................................................  Corrected typographical errors in
                                                                              the definitions of VRIN,AB and
                                                                              VRIN,RF.
80.1426, Table 4...........................................................  Revised definitions of different
                                                                              feedstock energy value (``FE'') to
                                                                              clarify that they represent
                                                                              feedstock energy from all
                                                                              feedstocks used to produce
                                                                              renewable fuel with a certain D
                                                                              code.
80.1426(f)(4)..............................................................  Revised to clarify that partially
                                                                              renewable fuel may be used as
                                                                              transportation fuel, heating oil,
                                                                              or jet fuel.
80.1426(f)(4)(ii)..........................................................  Revised to clarify that the
                                                                              contribution of non-renewable
                                                                              feedstocks to the production of
                                                                              partially renewable fuel should be
                                                                              ignored when determining the
                                                                              appropriate pathway for the fuel.
80.1426(f)(5)(i)...........................................................  Corrected grammatical and
                                                                              typographical errors in
                                                                              definitions of ``separated yard
                                                                              waste,'' ``separated food waste,''
                                                                              and ``separated municipal solid
                                                                              waste.''
80.1426(f)(5)(iii)(B)......................................................  Revised to clarify that a renewable
                                                                              fuel producer who uses separated
                                                                              municipal solid waste as a
                                                                              feedstock must have evidence of
                                                                              all contracts relating to the
                                                                              disposal of the specified
                                                                              recyclable materials.
80.1426(f)(5)(vi)..........................................................  Corrected typographical errors and
                                                                              added the term ``separated'' to
                                                                              ``food waste'' and ``MSW'' to be
                                                                              consistent with other sections.
80.1426(f)(9)(iv)(C).......................................................  Corrected typographical error.
80.1426(f)(10).............................................................  Revised to clarify the requirements
                                                                              for generating RINs for renewable
                                                                              electricity or biogas that is not
                                                                              commingled with fuel derived from
                                                                              non-renewable feedstocks.
80.1426(f)(11).............................................................  Revised to clarify the requirements
                                                                              for generating RINs for renewable
                                                                              electricity or biogas that is
                                                                              introduced into a commercial
                                                                              distribution system.
80.1426(f)(12).............................................................  Amended to clarify the requirements
                                                                              for gas to be considered biogas
                                                                              for purposes of determining a
                                                                              renewable fuel's D code.
80.1427(a)(4)(i)...........................................................  Amended to allow RFS1 RINs with an
                                                                              RR code of ``16'' to be treated as
                                                                              RFS2 biomass-based diesel RINs
                                                                              with a D code of 4. See Section
                                                                              IV.H.
80.1427(a)(7)(i)...........................................................  Amended to allow RFS1 RINs with an
                                                                              RR code of ``16'' to be subtracted
                                                                              from the 2010 biomass-based diesel
                                                                              RVO. See Section IV.H.
80.1428(c).................................................................  Revised to clarify that an expired
                                                                              RIN is considered an invalid RIN
                                                                              and cannot be used for compliance.
80.1429(b)(5)..............................................................  Revised to clarify the requirement
                                                                              that the producer of renewable
                                                                              electricity or biogas separate any
                                                                              RINs they generate for a given
                                                                              volume of renewable electricity or
                                                                              biogas.
80.1429(d).................................................................  Revised to clarify that separated
                                                                              RINs must be accompanied by a PTD
                                                                              when being transferred from one
                                                                              party to another.
80.1429(g).................................................................  Revised to clarify that any 2009 or
                                                                              2010 RINs retired because
                                                                              renewable fuel was used in a
                                                                              specific nonroad application may
                                                                              be reinstated by the retiring
                                                                              party and used for 2010 RVO
                                                                              compliance.
80.1430(a).................................................................  Corrected references to subsequent
                                                                              paragraphs in Sec.   80.1430.
80.1430(b)(2) and (b)(3)...................................................  Revised definitions of VOLk to
                                                                              eliminate redundant language.
80.1440(c)(3)..............................................................  Revised to clarify that a renewable
                                                                              fuel blender who delegates its RIN-
                                                                              related responsibilities will
                                                                              remain liable for any violation
                                                                              associated with its renewable fuel
                                                                              blending activities.
80.1440(d) and (e).........................................................  Revised to clarify restrictions on
                                                                              small blenders who upward delegate
                                                                              their RIN responsibilities.
80.1442(b)(1), (b)(4), (c), and (d)(1).....................................  Revised to clarify that the small
                                                                              refiner exemption from obligated
                                                                              party requirements is effective
                                                                              immediately for those who qualify.
80.1450(a), (b), and (c)...................................................  Revised to clarify that
                                                                              registration information for
                                                                              obligated parties and exporters of
                                                                              renewable fuel, renewable fuel
                                                                              producers (unless grandfathered),
                                                                              and renewable fuel importers must
                                                                              be submitted to and accepted by
                                                                              EPA no later than July 1, 2010, or
                                                                              60 days prior to generating or
                                                                              owning RINs, whichever date comes
                                                                              later.
80.1450(b).................................................................  Revised to require foreign ethanol
                                                                              producers, as defined in Sec.
                                                                              80.1401, that produce ethanol used
                                                                              in renewable fuel for which RINs
                                                                              are generated by a United States
                                                                              importer to register their
                                                                              facilities with EPA prior to the
                                                                              generation of any RINs for fuel
                                                                              made with their ethanol. See
                                                                              Section IV.D.

[[Page 26030]]

80.1450(b)(1)(v)(A), (b)(1)(v)(B), (b)(1)(v)(C), and (b)(1)(vi); removed     Revised to require all renewable
 (b)(1)(v)(D) and (b)(1)(v)(E).                                               fuel producers to submit
                                                                              information on their baseline
                                                                              production volume, including
                                                                              copies of applicable air permits
                                                                              and other documents, when
                                                                              registering their facility. See
                                                                              Section IV.C. Also revised to
                                                                              correct typographical and
                                                                              grammatical errors.
80.1450(b)(1)(vi)..........................................................  Revised to clarify the documents
                                                                              required as part of registration
                                                                              for a renewable fuel production
                                                                              facility claiming grandfathered
                                                                              status in order to demonstrate the
                                                                              date that construction of the
                                                                              facility commenced.
80.1450(b)(1)(vii) and (b)(1)(viii)........................................  Revised to clarify specific
                                                                              registration requirements for
                                                                              producers of renewable fuel made
                                                                              from separated yard waste,
                                                                              separated food waste, and
                                                                              separated municipal solid waste.
80.1450(b)(2)(i)(A)........................................................  Revised to clarify that the
                                                                              engineering review that must be
                                                                              submitted to EPA as part of the
                                                                              registration process for a
                                                                              renewable fuel production facility
                                                                              must be conducted by a
                                                                              professional engineer licensed by
                                                                              an appropriate state agency in the
                                                                              U.S. for domestic facilities, or
                                                                              by a foreign equivalent for
                                                                              foreign facilities, and that the
                                                                              engineer must be an independent
                                                                              third party. See Section IV.I.
80.1450(b)(2)(ii)(E).......................................................  Moved to Sec.   80.1450(b)(2)(v)
                                                                              for clarity.
Added 80.1450(b)(2)(vi)....................................................  Amended to clarify that owners and
                                                                              operators of grandfathered
                                                                              renewable fuel production
                                                                              facilities must submit the
                                                                              engineering review no later than
                                                                              December 31, 2010. While this
                                                                              allowance was discussed in the
                                                                              preamble to the final RFS2
                                                                              regulations, it was inadvertently
                                                                              left out of the final regulations.
80.1450(b)(3)..............................................................  Moved to Sec.   80.1450(b)(1)(iv)
                                                                              to clarify that a process heat
                                                                              fuel supply plan must be submitted
                                                                              as part of registration for all
                                                                              renewable fuel production
                                                                              facilities, and revised to clarify
                                                                              the information that must be
                                                                              included in such a plan. See
                                                                              Section IV.J.
80.1450(d)(2)..............................................................  Revised to clarify that any
                                                                              renewable fuel producer who makes
                                                                              changes to their facility that
                                                                              will affect the producer's
                                                                              registration information but will
                                                                              not affect the renewable fuel
                                                                              category for which the producer is
                                                                              registered must update their
                                                                              registration information seven (7)
                                                                              days prior to the change. See
                                                                              Section IV.K.
80.1450(e).................................................................  Revised to clarify that
                                                                              registration information for RIN
                                                                              owners must be submitted to EPA at
                                                                              least 30 days prior to RIN
                                                                              ownership.
80.1450(f).................................................................  Revised to clarify that any
                                                                              renewable fuel facility that
                                                                              claims grandfathered status under
                                                                              RFS2 must register with EPA no
                                                                              later than July 1, 2013.
80.1451(a)(1)(xi)..........................................................  Revised to clarify that the annual
                                                                              compliance report that must be
                                                                              submitted by obligated parties and
                                                                              exporters of renewable fuel must
                                                                              include a list of all RINs retired
                                                                              for compliance in the reporting
                                                                              period.
80.1451(b)(1)(ii)(D).......................................................  Corrected typographical error.
80.1451(b)(1)(ii)(H).......................................................  Revised to clarify that RIN
                                                                              generators must report the fuel
                                                                              type of each batch in their RIN
                                                                              generation reports.
80.1451(b)(1)(ii)(K) and (b)(1)(ii)(N).....................................  Revised to require information on
                                                                              quantities, rather than volume, of
                                                                              renewable fuel feedstocks and co-
                                                                              products, since feedstocks and co-
                                                                              products can be measured in mass
                                                                              or volume.
80.1451(b)(1)(ii)(M).......................................................  Deleted ``of renewable fuel'' to
                                                                              make language consistent with
                                                                              other reporting elements required
                                                                              under Sec.   80.1454(b)(1)(ii).
80.1451(b)(1)(ii)(P) and (b)(1)(ii)(Q).....................................  Revised to clarify reporting
                                                                              requirements for producers and
                                                                              importers, as appropriate, of
                                                                              renewable electricity and biogas
                                                                              used for transportation and
                                                                              producers and importers of
                                                                              renewable fuel produced at
                                                                              facilities that use biogas for
                                                                              process heat. Specifically, these
                                                                              amendments clarify that the
                                                                              renewable electricity and biogas
                                                                              should be reported as total energy
                                                                              used (i.e., kW or BTU) rather than
                                                                              as a rate (kW/hr or BTU/hr).
80.1451(b)(1)(ii)(R).......................................................  Added the term ``separated'' to
                                                                              ``municipal solid waste'' to be
                                                                              consistent with other sections.
                                                                              Also revised to clarify that the
                                                                              amount of separated MSW used for
                                                                              renewable fuel that is produced or
                                                                              imported should be in units of
                                                                              weight (in tons).
80.1451(c)(1)(iii)(D) and (c)(2)(xv).......................................  Revised to clarify that
                                                                              reinstatement should apply to all
                                                                              RFS1 RINs generated in 2009 or
                                                                              2010.
80.1451(d) and (d)(1)......................................................  Revised to clarify that producers
                                                                              and RIN-generating importers of
                                                                              renewable fuel made from
                                                                              feedstocks not covered by the
                                                                              aggregate compliance approach must
                                                                              submit quarterly reports
                                                                              containing information on their
                                                                              feedstocks, including a summary of
                                                                              the types and quantities of
                                                                              feedstocks used in that quarter.
80.1451(e).................................................................  Revised to clarify requirements for
                                                                              quarterly reporting on feedstocks
                                                                              by producers of renewable fuel
                                                                              that is made from feedstocks
                                                                              covered by the aggregate
                                                                              compliance approach if the 2007
                                                                              baseline amount of U.S.
                                                                              agricultural land is found to have
                                                                              been exceeded.
80.1452(b).................................................................  Revised to clarify that RINs must
                                                                              be generated in EMTS within five
                                                                              (5) business days of being
                                                                              assigned to a batch of renewable
                                                                              fuel. This paragraph is also
                                                                              revised to clarify the information
                                                                              required to be submitted via EMTS
                                                                              for each batch of renewable fuel
                                                                              produced or imported.
80.1452(c).................................................................  Revised to clarify that
                                                                              transactions involving RINs
                                                                              generated on or after July 1, 2010
                                                                              must be conducted via EMTS within
                                                                              five (5) business days of a
                                                                              reportable event. This paragraph
                                                                              is also revised to clarify the
                                                                              meaning of the term ``reportable
                                                                              event'' and to clarify the
                                                                              information required to be
                                                                              submitted via EMTS for each
                                                                              transaction involving RINs
                                                                              generated on or after July 1,
                                                                              2010.
80.1453(a)(5)..............................................................  Deleted the requirement for price
                                                                              to appear on the PTD. Although
                                                                              parties do not need to convey
                                                                              price information on the PTD,
                                                                              parties must still be in agreement
                                                                              on whether they will submit the
                                                                              price per RIN or price per gallon
                                                                              of renewable fuel to EMTS.
80.1453(a)(7), (a)(8), and (a)(10).........................................  Revised to clarify the information
                                                                              required on product transfer
                                                                              documents (PTDs) that accompany
                                                                              renewable fuel or separated RINs.

[[Page 26031]]

80.1453(a)(11)(i)..........................................................  Revised to clarify the RIN
                                                                              information required on PTDs for
                                                                              RFS1 and RFS2 RINs, since RFS2
                                                                              RINs may be transferred uniquely
                                                                              or generically in EMTS. Section
                                                                              80.1453(a)(11)(i) currently does
                                                                              not identify the information for
                                                                              RFS1 and RFS2 RINs that must be
                                                                              transferred on a PTD.
80.1453(a)(11)(ii).........................................................  Revised to reference the
                                                                              identifying information required
                                                                              on a PTD for RFS1 and RFS2 RINs.
80.1454(a)(2)..............................................................  Revised to clarify that obligated
                                                                              parties and exporters are not
                                                                              required to keep the production
                                                                              outlook reports in Sec.   80.1449.
80.1454(a)(3)(iv)..........................................................  Revised to clarify the records that
                                                                              obligated parties and exporters of
                                                                              renewable fuel must keep related
                                                                              to RIN transactions and their
                                                                              terms.
Added 80.1454(a)(6)........................................................  Amended to clarify that exporters
                                                                              must maintain invoices, BOLs and
                                                                              other documents related to the
                                                                              purchase, transfer and export of
                                                                              renewable fuel.
80.1454(c)(1)(i), (c)(1)(ii), (d)(3), and (g); added (d)(4)................  Revised to clarify that the
                                                                              aggregate compliance approach
                                                                              applies to planted crops and crop
                                                                              residue from agricultural land in
                                                                              the U.S. See Section IV.L.
80.1454(c)(2)(ii)..........................................................  Deleted allowance that duplicate
                                                                              copies of reports submitted to EPA
                                                                              are not required, since this
                                                                              language is not necessary.
80.1454(d).................................................................  Amended heading to be formatted
                                                                              consistently when printed in the
                                                                              Federal Register.
80.1454(d)(3)..............................................................  Amended to clarify that domestic
                                                                              renewable fuel producers that use
                                                                              separated yard and food waste are
                                                                              subject to additional
                                                                              recordkeeping requirements located
                                                                              at Sec.   80.1454(j). This
                                                                              provision was also renumbered as
                                                                              (d)(4). See Section IV.M.
80.1454(g) and (h).........................................................  Revised to include RIN-generating
                                                                              importers of renewable fuel made
                                                                              from planted crops or crop residue
                                                                              from U.S. agricultural land under
                                                                              the aggregate compliance approach
                                                                              for renewable biomass.
80.1454(g)(2)(ii)..........................................................  Corrected typographical error and
                                                                              reference within paragraph
                                                                              (g)(2)(ii).
80.1454(h)(6)(v)...........................................................  Revised to clarify that EPA may
                                                                              revoke approval of a survey plan
                                                                              if it determines that the approved
                                                                              survey plan was not fully
                                                                              implemented.
80.1454(j).................................................................  Added the term ``solid'' to
                                                                              ``separated municipal waste'' to
                                                                              be consistent with other sections.
80.1454(j)(2)(iii); added (j)(2)(iv).......................................  Amended to require renewable fuel
                                                                              producers who use separated
                                                                              municipal solid waste as feedstock
                                                                              for renewable fuel to maintain
                                                                              records that demonstrate the fuel
                                                                              sampling methods used and the
                                                                              results of all fuel analyses to
                                                                              determine the non-fossil fraction
                                                                              of the fuel.
80.1454(k).................................................................  Revised to clarify recordkeeping
                                                                              requirements for a renewable fuel
                                                                              producer that generates RINs for
                                                                              biogas or electricity produced
                                                                              from renewable biomass.
80.1455(a), (b), (c), and (d)..............................................  Corrected typographical errors.
80.1460(c)(2); removed 80.1460(c)(3).......................................  Revised to eliminate redundant
                                                                              language.
80.1463(a).................................................................  Corrected typographical error.
80.1463(b).................................................................  Revised to clarify that any person
                                                                              that fails to meet their RVOs, or
                                                                              causes another person to fail to
                                                                              meet their RVOs during any
                                                                              compliance period, is subject to a
                                                                              separate day of violation for each
                                                                              day in the compliance period.
80.1464(a)(1)(i)(A)........................................................  Corrected references to paragraphs
                                                                              in Sec.   80.1430.
80.1464(a)(1)(iv)(A).......................................................  Corrected typographical error.
80.1464(a)(1)(iv)(D); removed 80.1464(a)(1)(vii)...........................  Revised to clarify the attest
                                                                              procedures specific to an exporter
                                                                              of renewable fuel and deleted the
                                                                              requirement that each exporter's
                                                                              RVO be calculated from a sampling
                                                                              of renewable fuel batches, as
                                                                              doing so is infeasible.
80.1464(b)(1)(i)...........................................................  Corrected references to paragraphs
                                                                              (d) and (e).
80.1464(b)(1)(ii)..........................................................  Revised to clarify that the number
                                                                              of gallon-RINs must be computed
                                                                              for each batch of renewable fuel
                                                                              produced or imported by a RIN
                                                                              generator as part of the attest
                                                                              engagement requirements.
80.1464(c)(2)(ii)..........................................................  Corrected typographical error.
80.1465(a)(6)..............................................................  Restructured paragraph to clarify
                                                                              meaning.
80.1465(d)(1)(ii)..........................................................  Revised to clarify that the volume
                                                                              of imported RFS-FRFUEL must be
                                                                              temperature-corrected to 60
                                                                              [deg]F.
----------------------------------------------------------------------------------------------------------------

B. Advanced Technologies for Renewable Fuel Pathways

    The final RFS2 rule includes two corn ethanol pathways in Table 1 
of Sec.  80.1426 that require the use of advanced technologies at the 
production facility as a prerequisite to the generation of RINs. The 
advanced technologies are listed in Table 2 of Sec.  80.1426. However, 
only three of these advanced technologies are explicitly defined in 
Sec.  80.1401. To clarify our intent with regard to implementation of 
these advanced technologies, we have created new definitions for 
membrane separation and raw starch hydrolysis. We also replaced the 
existing definition of ``fractionation of feedstocks'' with the 
definition for ``corn oil fractionation'' to be more consistent with 
the terminology used in Table 2 of Sec.  80.1426. Finally, we modified 
the definition of ``combined heat and power (CHP)'' and clarified in 
Table 2 of Sec.  80.1426 the degree to which it, as well as the other 
advanced technologies, must be implemented in order to represent a 
valid advanced technology for the generation of RINs.

C. Baseline Production Volume for All Renewable Fuel Production 
Facilities

    Section 80.1450(b)(1)(v) currently requires information pertinent 
to facilities described in Sec.  80.1403(c) and (d), i.e., those 
facilities for which the renewable fuel would be exempted 
(``grandfathered'') from the requirement of 20 percent GHG emission 
reduction. This amendment modifies Sec.  80.1450(b)(1)(v) to require 
all renewable fuel producers to include information on their 
facilities' baseline volume when registering for RFS2 in order for EPA 
to verify renewable fuel

[[Page 26032]]

production volumes and RIN generation reports. Specifically, all owners 
and operators of renewable fuel facilities, including those described 
in Sec.  80.1403(c) and (d), must submit copies of their most recent 
air permits. In addition, the facilities described in Sec.  80.1403(c) 
must submit copies of air permits issued no later than December 19, 
2007; those described in Sec.  80.1403(d) must submit copies of air 
permits issued no later than December 31, 2009. Thus, for those 
facilities we will have information on permitted capacity for 2007 and 
2009 from which baseline volumes will be determined. We will also have 
the most recent permitted capacity for those facilities. In case of 
discrepancies in permitted capacity between the most recent permits and 
those representing operation in 2007 and 2009, EPA may ask for 
additional information. The information required to establish when 
construction of the grandfathered facilities commenced is now contained 
in Sec.  80.1450(b)(vi), since Sec.  80.1450(b)(v) now addresses only 
baseline volume.

D. Foreign Ethanol Producers

    We have added a new definition of ``foreign ethanol producer'' to 
Sec.  80.1401 that describes foreign producers that produce ethanol for 
use in transportation fuel, heating oil or jet fuel but who do not add 
denaturant to their product, and therefore do not technically produce 
``renewable fuel'' as defined in our regulations. We have also added 
amendments to the registration provisions at Sec.  80.1450(b) to 
require the registration of these parties if the ethanol they produce 
is used to make renewable fuel for which RINs are ultimately generated. 
The result of these changes is to require foreign ethanol facilities 
that produce ethanol that ultimately becomes part of a renewable fuel 
for which RINs are generated to provide EPA the same registration 
information as foreign renewable fuel facilities that export their 
product to the United States. In both cases the required registration 
information is important for enforcement purposes, including verifying 
the use of renewable biomass as feedstock and the assignment of 
appropriate D codes. The changes made today conform the regulations to 
EPA's intent at the time the RFS2 regulations were issued.

E. Permitted Capacity

    EPA is modifying the definition of ``permitted capacity'' to 
reference the specific permits, by year, which are to be used in 
establishing the permitted capacity of facilities claiming the 
exemptions specified in Sec.  80.1403(c) and (d). Permitted capacity is 
one means by which ``baseline volume'' is determined for purposes of 
these exemptions. The registration provisions in the existing 
regulations at Sec.  80.1450(b)(1)(v)(C) accurately identify the 
permits (by year) that are relevant in establishing ``permitted 
capacity'' for facilities claiming the exemptions in Sec.  80.1403(c) 
and (d), but EPA neglected to include comparable references in the 
existing definition of ``permitted capacity.'' Today's amendments will 
help to clarify the regulations by adding comparable references in the 
definition of ``permitted capacity.''

F. Definition for ``Naphtha''

    The final RFS2 rule includes the term naphtha in Table 1 to Sec.  
80.1426 in the form of both ``naphtha'' and ``cellulosic naphtha.'' The 
final rule also includes a definition of naphtha in Sec.  80.1401 
indicating that naphtha must be a renewable fuel or fuel blending 
component. Since naphtha is generally not used as transportation fuel 
in its neat form, requiring naphtha to be renewable fuel could cause 
confusion. Therefore, we have modified the definition of naphtha to 
indicate that it must be a blendstock or fuel blending component.

G. Grandfathering Exemption for Renewable Fuel Production Facilities

    Section 80.1403(c)(2) requires as a condition of the exemption from 
the 20 percent greenhouse gas (GHG) emission reduction that 
construction of the renewable fuel facility be completed within 36 
months of commencement. In the proposed RFS2 rule, however, the 
regulatory language required completion of construction within 36 
months of EISA enactment, which would be December 19, 2010. In 
preparing the final rulemaking package we mistakenly removed the 
proposed language. Today's rule provides that construction must be 
completed within 36 months of December 19, 2007, for facilities that 
commenced construction prior to that date. For facilities that 
commenced construction after that date, as described in Sec.  
80.1403(d), the requirement remains that construction must be completed 
within three years of commencement of construction.

H. Use of RFS1 RINs for RFS2 Compliance in 2010

    The RFS2 final rule allows RFS1 RINs to be used for compliance 
purposes under RFS2. With regard to biodiesel and renewable diesel, the 
regulations at Sec.  80.1427(a)(4)(i) indicate that RFS1 RINs with a D 
code of 2 and RR code of 15 or 17 may be deemed equivalent to an RFS2 
RIN with a D code of 4 representing biomass-based diesel. The RR codes 
of 15 and 17 were included in this provision because they are 
indicative of biodiesel and renewable diesel, respectively, as 
described in the assignment of Equivalence Values in Sec.  80.1415. 
However, EPA also approved an Equivalence Value of 1.6 for a particular 
renewable fuel diesel substitute that is compositionally similar to 
biodiesel. Therefore, we are modifying the RFS1/RFS2 transition 
provisions at Sec.  80.1427(a)(4)(i) to also allow RFS1 RINs with a D 
code of 2 and RR code of 16 to be deemed equivalent to an RFS2 RIN with 
a D code of 4.

I. Engineering Review

    Section 80.1450(b)(2)(i)(A) and (b)(2)(i)(B) are amended to clarify 
the types of professional engineers who may qualify to conduct the 
third-party engineering review for renewable fuel facilities located in 
the United States or in a foreign country. The original requirements in 
the final regulations in Sec.  80.1450(b)(2)(i)(A) state that domestic 
renewable fuel production facilities must have an engineering review 
conducted by a ``Professional Chemical Engineer.'' For foreign 
facilities, Sec.  80.1450(b)(2)(i)(B) provides that the review should 
be conducted by ``a licensed professional engineer or foreign 
equivalent who works in the chemical engineering field.'' EPA 
interprets these provisions similarly but is amending the regulations 
to clarify that the requirements are the same. For both domestic and 
foreign facilities the third party engineering review should be 
conducted by a professional engineer (or foreign equivalent) who works 
in the chemical engineering field. EPA views renewable fuel production 
to fall generally within the chemical engineering field, and is 
amending the regulation to clarify that professional work experience 
related to renewable fuel production will satisfy this requirement. As 
required in Sec.  80.1450(b)(2)(ii)(E), the professional engineer shall 
provide to EPA documentation of their qualifications to conduct the 
engineering review, including but not limited to proof of a license as 
a professional engineer and relevant work experience. Additional 
language is added to clarify that the professional engineer must also 
be an independent third-party, which is further defined in Sec.  
80.1450(b)(2)(ii), to qualify to conduct the engineering review.

J. Process Heat Fuel Supply Plan

    The requirements for the process heat fuel supply plan were moved 
from

[[Page 26033]]

Sec.  80.1450(b)(3) and inserted under Sec.  80.1450(b)(1)(iv) in these 
amendments to minimize duplicative requirements and to provide clear 
instruction that the process heat fuel supply plan is required to be 
submitted as part of registration and will be subject to verification 
in the engineer review required in Sec.  80.1450(b)(2).
    The requirements for the process heat fuel supply plan have been 
divided into two subparts. Section 80.1450(b)(1)(iv)(A) is applicable 
to all renewable fuel producers and requires submissions of information 
on any process heat fuel that is used at a renewable fuel facility. 
Examples of process heat fuel include biomass, biogas, coal, and 
natural gas. The information submitted on the type of process heat fuel 
and its supply source will help EPA determine if a renewable fuel 
facility qualifies as a grandfathered facility pursuant to Sec.  
80.1403(d) and help verify a producer's fuel pathway pursuant to Table 
1 to Sec.  80.1426.
    The required information in Sec.  80.1450(b)(1)(iv)(B) for 
renewable fuel producers using biogas as process heat fuel will help 
EPA verify the contractual pathway of the biogas from the supplier to 
the renewable fuel facility for the purposes of confirming the 
applicable fuel pathway pursuant to Table 1 to Sec.  80.1426 and to 
Sec.  80.1426(f)(12).
    The information submitted under Sec.  80.1450(b)(1)(iv)(A) and 
(b)(1)(iv)(B) will also help EPA in our evaluation of the engineering 
review that is conducted and submitted by an independent third party 
engineer pursuant to Sec.  80.1450(b)(2). Since the requirements for 
the process heat fuel supply plan have been revised and relocated 
within the regulations, the requirements stipulated in the original 
Sec.  80.1450(b)(3)(ii) through (iv) have been deleted to avoid 
redundancy.

K. Updating Registration To Account for Facility Changes Not Affecting 
the Renewable Fuel Category

    Section 80.1450(d)(2) currently requires producers of renewable 
fuel to update their facility registration seven (7) days prior to any 
change to the facility that does not affect the renewable fuel category 
for which the producer is registered. EPA is revising Sec.  
80.1450(d)(2) to narrow the scope of changes that would require a 
producer to update their registration. The revisions clarify that not 
just any change, but only changes to the facility that actually affect 
the information submitted to EPA in the producer's original 
registration, will trigger such a registration update.

L. Applicability of the Renewable Biomass Aggregate Compliance Approach

    Sections 80.1451 and 80.1454 include requirements for renewable 
fuel producers to report and maintain records to affirm that their 
feedstocks meet the definition of renewable biomass and come from 
qualifying land. Through amendments to these two sections, EPA is 
clarifying our intent, as discussed in the preamble to the final RFS2 
regulations, that producers, either domestic or foreign, who use crops 
and crop residue from existing U.S. agricultural land are covered by 
the renewable biomass aggregate compliance approach for those 
particular feedstocks, as described in Sec.  80.1454(g), and need not 
keep detailed records or report to EPA concerning whether those 
particular feedstocks meet the definition of renewable biomass. 
However, if a producer (domestic or foreign) uses any type of feedstock 
other than crops and crop residue from existing U.S. agricultural land, 
then he or she must keep records and report to EPA to demonstrate that 
their feedstocks meet the definition of renewable biomass. This 
includes maintaining records that show that the feedstock type is one 
allowed under the renewable biomass definition under the RFS2 
regulations and that the feedstock is harvested from qualifying lands, 
where applicable.

M. Additional Recordkeeping Requirements for Renewable Fuel Producers 
Using Separated Yard and Food Waste as a Feedstock

    Section 80.1454(d)(3) currently requires that domestic renewable 
fuel producers using feedstock other than planted trees or tree residue 
from actively managed tree plantations, slash or pre-commercial 
thinnings from non-federal forestland, biomass from areas at risk of 
wildfire, crops or crop residue covered by the aggregate compliance 
approach under Sec.  80.1454(g), or any feedstock covered by an 
alternative biomass tracking approach under Sec.  80.1454(h) must 
maintain documents from their feedstock supplier certifying that their 
feedstocks meet the definition of renewable biomass. While separated 
yard and food waste falls into this category, parties using these 
feedstocks are also subject to the additional recordkeeping 
requirements in Sec.  80.1454(j). Therefore, EPA is revising Sec.  
80.1454(d)(3) to clarify that renewable fuel producers that use 
separated yard and food waste as a feedstock are subject to the 
additional requirements in Sec.  80.1454(j).

V. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to OMB review and the requirements of the 
Executive Order. The Order defines ``significant regulatory action'' as 
one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    It has been determined that this action is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 and is 
therefore not subject to OMB review.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden. 
The corrections, clarifications, and modifications to the final RFS2 
regulations contained in this rule are within the scope of the 
information collection requirements submitted to the Office of 
Management and Budget (OMB) for the final RFS2 regulations. OMB has 
partially approved the information collection requirements contained in 
the existing regulations at 40 CFR part 80, subpart M under the 
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and 
has assigned OMB control number 2060-0637. The remaining RFS2 
information collection requirements are currently pending approval at 
OMB (EPA ICR No. 2333.02). The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the

[[Page 26034]]

Administrative Procedure Act or any other statute unless the agency 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. Small entities include small 
businesses, small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small 
entities, small entity is defined as: (1) A small business as defined 
by the Small Business Administration's (SBA) regulations at 13 CFR 
121.201; (2) a small governmental jurisdiction that is a government of 
a city, county, town, school district or special district with a 
population of less than 50,000; and (3) a small organization that is 
any not-for-profit enterprise which is independently owned and operated 
and is not dominant in its field.
    After considering the economic impacts of this action on small 
entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. This direct 
final rule will not impose any requirements on small entities that were 
not already considered under the final RFS2 regulations, as it makes 
relatively minor corrections and modifications to those regulations.

D. Unfunded Mandates Reform Act

    This rule does not contain a Federal mandate that may result in 
expenditures of $100 million or more for State, local, and tribal 
governments, in the aggregate, or the private sector in any one year. 
We have determined that this action will not result in expenditures of 
$100 million or more for the above parties and thus, this rule is not 
subject to the requirements of sections 202 or 205 of UMRA.
    This rule is also not subject to the requirements of section 203 of 
UMRA because it contains no regulatory requirements that might 
significantly or uniquely affect small governments. It only applies to 
gasoline, diesel, and renewable fuel producers, importers, distributors 
and marketers and makes relatively minor corrections and modifications 
to the RFS2 regulations.

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, as 
specified in Executive Order 13132. This action only applies to 
gasoline, diesel, and renewable fuel producers, importers, distributors 
and marketers and makes relatively minor corrections and modifications 
to the RFS2 regulations. Thus, Executive Order 13132 does not apply to 
this action.

F. Executive Order 13175 (Consultation and Coordination With Indian 
Tribal Governments)

    This direct final rule does not have tribal implications, as 
specified in Executive Order 13175 (65 FR 67249, November 9, 2000). It 
applies to gasoline, diesel, and renewable fuel producers, importers, 
distributors and marketers. This action makes relatively minor 
corrections and modifications to the RFS regulations, and does not 
impose any enforceable duties on communities of Indian tribal 
governments. 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 EO 13045 (62 FR 19885, April 23, 1997) as applying 
only to those regulatory actions that concern health or safety risks, 
such that the analysis required under section 5-501 of the EO has the 
potential to influence the regulation. This action is not subject to EO 
13045 because it does not establish an environmental standard intended 
to mitigate health or safety risks.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211 (66 FR 18355 (May 
22, 2001)), because it is not a significant regulatory action under 
Executive Order 12866.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note) 
directs EPA to use voluntary consensus standards in its regulatory 
activities unless to do so would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
voluntary consensus standards bodies. NTTAA directs EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This action does not involve technical standards. Therefore, EPA 
did not consider the use of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes 
Federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    EPA has determined that this direct final rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it does not 
affect the level of protection provided to human health or the 
environment. These technical amendments do not relax the control 
measures on sources regulated by the RFS regulations and therefore will 
not cause emissions increases from these sources.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).

L. Clean Air Act Section 307(d)

    This rule is subject to Section 307(d) of the CAA. Section 
307(d)(7)(B) provides that ``[o]nly an objection to a rule or procedure 
which was raised with reasonable specificity during the period for 
public comment (including any public hearing) may be raised during 
judicial review.'' This section also provides a mechanism for the EPA 
to

[[Page 26035]]

convene a proceeding for reconsideration, ``[i]f the person raising an 
objection can demonstrate to the EPA that it was impracticable to raise 
such objection within [the period for public comment] or if the grounds 
for such objection arose after the period for public comment (but 
within the time specified for judicial review) and if such objection is 
of central relevance to the outcome of the rule.'' Any person seeking 
to make such a demonstration to the EPA should submit a Petition for 
Reconsideration to the Office of the Administrator, U.S. EPA, Room 
3000, Ariel Rios Building, 1200 Pennsylvania Ave., NW., Washington, DC 
20460, with a copy to both the person(s) listed in the preceding FOR 
FURTHER INFORMATION CONTACT section, and the Director of the Air and 
Radiation Law Office, Office of General Counsel (Mail Code 2344A), U.S. 
EPA, 1200 Pennsylvania Ave., NW., Washington, DC 20460.

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedure, 
Agriculture, Air pollution control, Confidential business information, 
Diesel Fuel, Energy, Forest and Forest Products, Fuel additives, 
Gasoline, Imports, Motor vehicle pollution, Penalties, Petroleum, 
Reporting and recordkeeping requirements.

    Dated: April 30, 2010.
Lisa P. Jackson,
Administrator.

0
For the reasons set forth in the preamble, 40 CFR part 80 is amended as 
follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

0
1. The authority citation for part 80 continues to read as follows:

    Authority: 42 U.S.C. 7414, 7542, 7545, and 7601(a).

0
2. Section 80.1401 is amended as follows:
0
a. By revising the definitions of ``Advanced biofuel'', ``Biogas'', 
``Combined heat and power (CHP)'', ``Corn oil extraction'', ``Exporter 
of renewable fuel'', ``Forestland'', ``Naphtha'', ``Non-ester renewable 
diesel'', ``Pastureland'', ``Pre-commercial thinnings'', ``Renewable 
Identification Number (RIN)'', and ``Transportation fuel''.
0
b. By removing the definitions of ``Fractionation of feedstocks'' and 
``Yard waste''.
0
c. By adding definitions of ``Actual peak capacity'', ``Baseline 
volume'', ``Corn oil fractionation'', Foreign ethanol producer'', 
``Membrane separation'', ``Permitted capacity'', ``Raw starch 
hydrolysis'', and ``Renewable electricity'', in alphabetical order.

Sec.  80.1401  Definitions.

* * * * *
    Actual peak capacity means 105% of the maximum annual volume of 
renewable fuels produced from a specific renewable fuel production 
facility on a calendar year basis.
    (1) For facilities that commenced construction prior to December 
19, 2007, the actual peak capacity is based on the last five calendar 
years prior to 2008, unless no such production exists, in which case 
actual peak capacity is based on any calendar year after startup during 
the first three years of operation.
    (2) For facilities that commenced construction after December 19, 
2007 and before January 1, 2010 that are fired with natural gas, 
biomass, or a combination thereof, the actual peak capacity is based on 
any calendar year after startup during the first three years of 
operation.
    (3) For all other facilities not included above, the actual peak 
capacity is based on the last five calendar years prior to the year in 
which the owner or operator registers the facility under the provisions 
of Sec.  80.1450, unless no such production exists, in which case 
actual peak capacity is based on any calendar year after startup during 
the first three years of operation.
    Advanced biofuel means renewable fuel, other than ethanol derived 
from cornstarch, that has lifecycle greenhouse gas emissions that are 
at least 50 percent less than baseline lifecycle greenhouse gas 
emissions.
* * * * *
    Baseline volume means the permitted capacity or, if permitted 
capacity cannot be determined, the actual peak capacity of a specific 
renewable fuel production facility on a calendar year basis.
* * * * *
    Biogas means a mixture of hydrocarbons that is a gas at 60 degrees 
Fahrenheit and 1 atmosphere of pressure that is produced through the 
conversion of organic matter. Only biogas that is used as renewable 
fuel can generate RINs. Biogas includes propane, landfill gas, manure 
digester gas, and sewage waste treatment gas.
* * * * *
    Combined heat and power (CHP), also known as cogeneration, refers 
to industrial processes in which waste heat from the production of 
electricity is used for process energy in the renewable fuel production 
facility.
* * * * *
    Corn oil extraction means the recovery of corn oil from the thin 
stillage and/or the distillers grains and solubles produced by a dry 
mill corn ethanol plant, most often by mechanical separation.
    Corn oil fractionation means a process whereby seeds are divided in 
various components and oils are removed prior to fermentation for the 
production of ethanol.
* * * * *
    Exporter of renewable fuel means:
    (1) A person that transfers any renewable fuel from a location 
within the contiguous 48 states or Hawaii to a location outside the 
contiguous 48 states and Hawaii; and
    (2) A person that transfers any renewable fuel from a location in 
the contiguous 48 states or Hawaii to Alaska or a United States 
territory, unless that state or territory has received an approval from 
the Administrator to opt-in to the renewable fuel program pursuant to 
Sec.  80.1443.
* * * * *
    Foreign ethanol producer means a person from a foreign country or 
from an area that has not opted into the program requirements of this 
subpart who produces ethanol for use in transportation fuel, heating 
oil, or jet fuel but who does not add denaturant to their product as 
described in paragraph (2) of the definition of renewable fuel in this 
section.
    Forestland is generally undeveloped land covering a minimum area of 
1 acre upon which the primary vegetative species are trees, including 
land that formerly had such tree cover and that will be regenerated and 
tree plantations. Tree-covered areas in intensive agricultural crop 
production settings, such as fruit orchards, or tree-covered areas in 
urban settings, such as city parks, are not considered forestland.
* * * * *
    Membrane separation means the process of dehydrating ethanol to 
fuel grade (> 99.5% purity) using a hydrophilic membrane.
* * * * *
    Naphtha means a blendstock or fuel blending component falling 
within the boiling range of gasoline.
* * * * *
    Non-ester renewable diesel, also known as renewable diesel, means 
renewable fuel which is all of the following:
    (1) A fuel which can be used in an engine designed to operate on 
conventional diesel fuel, or be heating oil or jet fuel.
    (2) Not a mono-alkyl ester.
* * * * *

[[Page 26036]]

    Pastureland is land managed for the production of select indigenous 
or introduced forage plants for livestock grazing or hay production, 
and to prevent succession to other plant types.
    Permitted capacity means 105% of the maximum permissible volume 
output of renewable fuel that is allowed under operating conditions 
specified in the most restrictive of all applicable preconstruction, 
construction and operating permits issued by regulatory authorities 
(including local, regional, state or a foreign equivalent of a state, 
and federal permits, or permits issued by foreign governmental 
agencies) that govern the construction and/or operation of the 
renewable fuel facility, based on an annual volume output in a calendar 
year basis. If the permit specifies maximum rated volume output on an 
hourly basis, then annual volume output is determined by multiplying 
the hourly output by 8,322 hours per year.
    (1) For facilities that commenced construction prior to December 
19, 2007, the permitted capacity is based on permits issued or revised 
no later than December 19, 2007.
    (2) For facilities that commenced construction after December 19, 
2007 and before January 1, 2010 that are fired with natural gas, 
biomass, or a combination thereof, the permitted capacity is based on 
permits issued or revised no later than December 31, 2009.
    (3) For facilities other than those described in paragraphs (1) and 
(2) of this definition, permitted capacity is based on the most recent 
applicable permits.
* * * * *
    Pre-commercial thinnings are trees, including unhealthy or diseased 
trees, removed to reduce stocking to concentrate growth on more 
desirable, healthy trees, or other vegetative material that is removed 
to promote tree growth.
    Raw starch hydrolysis means the process of hydrolyzing corn starch 
into simple sugars at low temperatures, generally not exceeding 100 
[deg]F (38 [deg]C), using enzymes designed to be effective under these 
conditions.
* * * * *
    Renewable electricity means electricity that meets the definition 
of renewable fuel.
* * * * *
    Renewable Identification Number (RIN), is a unique number generated 
to represent a volume of renewable fuel pursuant to Sec. Sec.  80.1425 
and 80.1426.
    (1) Gallon-RIN is a RIN that represents an individual gallon of 
renewable fuel used for compliance purposes pursuant to Sec.  80.1427 
to satisfy a renewable volume obligation.
    (2) Batch-RIN is a RIN that represents multiple gallon-RINs.
* * * * *
    Transportation fuel means fuel for use in motor vehicles, motor 
vehicle engines, nonroad vehicles, or nonroad engines (except fuel for 
use in ocean-going vessels).
* * * * *

0
3. Section 80.1403 is amended as follows:
0
a. By revising paragraph (a).
0
b. By revising paragraph (c)(2).
0
c. By revising paragraphs (d) introductory text and (d)(3).

Sec.  80.1403  Which fuels are not subject to the 20% GHG thresholds?

    (a) For purposes of this section, the following definitions apply:
    (1) Commence construction, as applied to facilities that produce 
renewable fuel, means that:
    (i) The owner or operator has all necessary preconstruction 
approvals or permits (as defined at 40 CFR 52.21(b)(10)), and has 
satisfied either of the following:
    (A) Begun, or caused to begin, a continuous program of actual 
construction on-site (as defined in 40 CFR 52.21(b)(11)).
    (B) Entered into binding agreements or contractual obligations, 
which cannot be cancelled or modified without substantial loss to the 
owner or operator, to undertake a program of actual construction of the 
facility.
    (ii) For multi-phased projects, the commencement of construction of 
one phase does not constitute commencement of construction of any later 
phase, unless each phase is mutually dependent for physical and 
chemical reasons only.
    (2) [Reserved]
* * * * *
    (c) * * *
    (2) Completed construction by December 19, 2010.
    (d) The baseline volume of ethanol that is produced from facilities 
and any expansions all of which commenced construction after December 
19, 2007 and on or before December 31, 2009, shall not be subject to 
the requirement that lifecycle greenhouse gas emissions be at least 20 
percent less than baseline lifecycle greenhouse gas emissions if such 
facilities are fired with natural gas, biomass, or a combination 
thereof at all times the facility operated between December 19, 2007 
and December 31, 2009 and if:
* * * * *
    (3) The baseline volume continues to be produced through processes 
fired with natural gas, biomass, or any combination thereof.
* * * * *

0
4. Section 80.1405 is amended by revising paragraph (c) to read as 
follows:

Sec.  80.1405  What are the Renewable Fuel Standards?

* * * * *
    (c) EPA will calculate the annual renewable fuel percentage 
standards using the following equations:
[GRAPHIC] [TIFF OMITTED] TR10MY10.001

[GRAPHIC] [TIFF OMITTED] TR10MY10.002

[GRAPHIC] [TIFF OMITTED] TR10MY10.003

[[Page 26037]]

[GRAPHIC] [TIFF OMITTED] TR10MY10.004

Where:

StdCB,i = The cellulosic biofuel standard for year i, in 
percent.
StdBBD,i = The biomass-based diesel standard for year i, 
in percent.
StdAB,i = The advanced biofuel standard for year i, in 
percent.
StdRF,i = The renewable fuel standard for year i, in 
percent.
RFVCB,i = Annual volume of cellulosic biofuel required by 
section 211(o)(2)(B) of the Clean Air Act for year i, or volume as 
adjusted pursuant to section 211(o)(7)(D) of the Clean Air Act, in 
gallons.
RFVBBD,i = Annual volume of biomass-based diesel required 
by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVAB,i = Annual volume of advanced biofuel required by 
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVRF,i = Annual volume of renewable fuel required by 
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
Gi = Amount of gasoline projected to be used in the 48 
contiguous states and Hawaii, in year i, in gallons.
Di = Amount of diesel projected to be used in the 48 
contiguous states and Hawaii, in year i, in gallons.
RGi = Amount of renewable fuel blended into gasoline that 
is projected to be consumed in the 48 contiguous states and Hawaii, 
in year i, in gallons.
RDi = Amount of renewable fuel blended into diesel that 
is projected to be consumed in the 48 contiguous states and Hawaii, 
in year i, in gallons.
GSi = Amount of gasoline projected to be used in Alaska 
or a U.S. territory, in year i, if the state or territory has opted-
in or opts-in, in gallons.
RGSi = Amount of renewable fuel blended into gasoline 
that is projected to be consumed in Alaska or a U.S. territory, in 
year i, if the state or territory opts-in, in gallons.
DSi = Amount of diesel projected to be used in Alaska or 
a U.S. territory, in year i, if the state or territory has opted-in 
or opts-in, in gallons.
RDSi = Amount of renewable fuel blended into diesel that 
is projected to be consumed in Alaska or a U.S. territory, in year 
i, if the state or territory opts-in, in gallons.
GEi = The amount of gasoline projected to be produced by 
exempt small refineries and small refiners, in year i, in gallons in 
any year they are exempt per Sec. Sec.  80.1441 and 80.1442, 
respectively. Assumed to equal 0.119*(Gi-RGi).
DEi = The amount of diesel fuel projected to be produced 
by exempt small refineries and small refiners in year i, in gallons, 
in any year they are exempt per Sec. Sec.  80.1441 and 80.1442, 
respectively. Assumed to equal 0.152*(Di-RDi).
* * * * *

0
5. Section 80.1406 is amended by revising paragraphs (c)(1) and (f) to 
read as follows:

Sec.  80.1406  Who is an obligated party under the RFS program?

* * * * *
    (c) * * *
    (1) Except as provided in paragraphs (c)(2), (d) and (e) of this 
section, an obligated party may comply with the requirements of 
paragraph (b) of this section in the aggregate for all of the 
refineries that it operates, or for each refinery individually.
* * * * *
    (f) Where a refinery or import facility is jointly owned by two or 
more parties, the requirements of paragraph (b) of this section may be 
met by one of the joint owners for all of the gasoline or diesel fuel 
produced/imported at the facility, or each party may meet the 
requirements of paragraph (b) of this section for the portion of the 
gasoline or diesel fuel that it produces or imports, as long as all of 
the gasoline or diesel fuel produced/imported at the facility is 
accounted for in determining the Renewable Volume Obligations under 
Sec.  80.1407. In either case, all joint owners are subject to the 
liability provisions of Sec.  80.1461(d).
* * * * *

0
6. Section 80.1415 is amended as follows:
0
a. By revising paragraph (a).
0
b. By revising paragraphs (b)(5) and (b)(6).
0
c. By revising paragraph (c)(1).

Sec.  80.1415  How are equivalence values assigned to renewable fuel?

    (a)(1) Each gallon of a renewable fuel, or gallon equivalent 
pursuant to paragraph (b)(5) or (b)(6) of this section, shall be 
assigned an equivalence value by the producer or importer pursuant to 
paragraph (b) or (c) of this section.
    (2) The equivalence value is a number that is used to determine how 
many gallon-RINs can be generated for a gallon of renewable fuel 
according to Sec.  80.1426.
    (b) * * *
    (5) 77,000 Btu (lower heating value) of biogas shall represent one 
gallon of renewable fuel with an equivalence value of 1.0.
    (6) 22.6 kW-hr of electricity shall represent one gallon of 
renewable fuel with an equivalence value of 1.0.
* * * * *
    (c) * * *
    (1) The equivalence value for renewable fuels described in 
paragraph (b)(7) of this section shall be calculated using the 
following formula:

EV = (R/0.972) * (EC/77,000)

Where:

EV = Equivalence Value for the renewable fuel, rounded to the 
nearest tenth.
R = Renewable content of the renewable fuel. This is a measure of 
the portion of a renewable fuel that came from renewable biomass, 
expressed as a fraction, on an energy basis.
EC = Energy content of the renewable fuel, in Btu per gallon (lower 
heating value).
* * * * *

0
7. Section 80.1416 is revised to read as follows:

Sec.  80.1416  Petition process for evaluation of new renewable fuels 
pathways.

    (a) Pursuant to this section, a party may petition EPA to assign a 
D code for their renewable fuel if any of the following apply:
    (1) The renewable fuel pathway has not been evaluated by EPA to 
determine if it qualifies for a D code pursuant to Sec.  80.1426(f).
    (2) The renewable fuel pathway has been determined by EPA not to 
qualify for a D code pursuant to Sec.  80.1426(f) and the party can 
document significant differences between their fuel production 
processes and the fuel production processes already considered by EPA.
    (3) The renewable fuel pathway has been determined to qualify for a 
certain D code pursuant to Sec.  80.1426(f) and the party can document 
significant differences between their fuel production processes and the 
fuel production processes already considered by EPA that may qualify 
their fuel pathway for a different D code.
    (b)(1) Any petition under paragraph (a) of this section shall 
include all the following:
    (i) The information specified under Sec.  80.76.
    (ii) A technical justification that includes a description of the 
renewable fuel, feedstock(s) used to make it, and the production 
process. The justification must include process modeling flow charts.
    (iii) A mass balance for the pathway, including feedstocks, fuels 
produced, co-products, and waste materials production.

[[Page 26038]]

    (iv) Information on co-products, including their expected use and 
market value.
    (v) An energy balance for the pathway, including a list of any 
energy and process heat inputs and outputs used in the pathway, 
including such sources produced off site or by another entity.
    (vi) Any other relevant information, including information 
pertaining to energy saving technologies or other process improvements.
    (vii) The Administrator may ask for additional information to 
complete the lifecycle greenhouse gas assessment of the new fuel or 
pathway.
    (2) For those companies who use a feedstock not previously 
evaluated by EPA under this subpart, the petition must include all the 
following in addition to the requirements in paragraph (b)(1) of this 
section:
    (i) Type of feedstock and description of how it meets the 
definition of renewable biomass.
    (ii) Market value of the feedstock.
    (iii) List of other uses for the feedstock.
    (iv) List of chemical inputs needed to produce the renewable 
biomass source of the feedstock and prepare the renewable biomass for 
processing into feedstock.
    (v) Identify energy needed to obtain the feedstock and deliver it 
to the facility. If applicable, identify energy needed to plant and 
harvest the renewable biomass source of the feedstock and modify the 
source to create the feedstock.
    (vi) Current and projected quantities of the feedstock that will be 
used to produce the fuel, including information on current and 
projected yields for feedstocks that are harvested or collected.
    (vii) The Administrator may ask for additional information to 
complete the lifecycle Greenhouse Gas assessment of the new fuel or 
pathway.
    (c)(1) A company may only submit one petition per pathway. If EPA 
determines the petition to be incomplete, then the company may 
resubmit.
    (2) The petition must be signed and certified as meeting all the 
applicable requirements of this subpart by the responsible corporate 
officer of the applicant company.
    (3) If EPA determines that the petition is incomplete then EPA will 
notify the applicant in writing that the petition is incomplete and 
will not be reviewed further. However, an amended petition that 
corrects the omission may be re-submitted for EPA review.
    (4) If the fuel or pathway described in the petition does not meet 
the definitions in Sec.  80.1401 of renewable fuel, advanced biofuel, 
cellulosic biofuel, or biomass-based diesel, then EPA will notify the 
applicant in writing that the petition is denied and will not be 
reviewed further.
    (d) A D code must be approved prior to the generation of RINs for 
the fuel in question.
    (e) The petition under this section shall be submitted on forms and 
following procedures as prescribed by EPA.

0
8. Section 80.1425 is amended by revising the introductory text and 
paragraph (i) to read as follows:

Sec.  80.1425  Renewable Identification Numbers (RINs).

    RINs generated on or after July 1, 2010 shall not be generated as a 
38-digit code, but shall be identified by the information specified in 
paragraphs (a) through (i) of this section and introduced into EMTS as 
data elements during the generation of RINs pursuant to Sec.  
80.1452(b). For RINs generated prior to July 1, 2010, each RIN is a 38-
digit code of the following form:

KYYYYCCCCFFFFFBBBBBRRDSSSSSSSSEEEEEEEE
* * * * *
    (i) EEEEEEEE is a number representing the last gallon-RIN 
associated with a batch of renewable fuel. EEEEEEEE will be identical 
to SSSSSSSS if the batch-RIN represents a single gallon-RIN. The value 
of EEEEEEEE will be determined by the number of gallon-RINs being 
generated for the batch as described in Sec.  80.1426(f).

0
9. Section 80.1426 is amended as follows:
0
a. By revising paragraph (a)(2).
0
b. By revising paragraphs (c)(2), (c)(3), (c)(4), and (c)(6)(ii).
0
c. By revising paragraphs (d)(1) introductory text and (d)(2)(ii).
0
d. By revising paragraph (f)(1) and Table 1 to Sec.  80.1426 and Table 
2 to Sec.  80.1426.
0
e. By revising paragraphs (f)(3)(iv) and (f)(3)(v), and Table 3 to 
Sec.  80.1426.
0
f. By revising paragraph (f)(4).
0
g. By revising paragraphs (f)(5)(i) and (f)(5)(iii)(B).
0
h. By revising paragraph (f)(10).
0
i. By revising paragraphs (f)(11)(i) introductory text, (f)(11)(i)(C), 
(f)(11)(ii) introductory text, (f)(11)(iii) introductory text, 
(f)(11)(iii)(A), and (f)(11)(iv).
0
j. By revising paragraph (f)(12).

Sec.  80.1426  How are RINs generated and assigned to batches of 
renewable fuel by renewable fuel producers or importers?

    (a) * * *
    (2) To generate RINs for imported renewable fuel, including any 
renewable fuel contained in imported transportation fuel, heating oil, 
or jet fuel, importers must obtain information from a foreign producer 
that is registered pursuant to Sec.  80.1450 sufficient to make the 
appropriate determination regarding the applicable D code and 
compliance with the renewable biomass definition for each imported 
batch for which RINs are generated.
* * * * *
    (c) * * *
    (2) Small producer/importer threshold. Pursuant to Sec.  80.1455(a) 
and (b), renewable fuel producers that produce less than 10,000 gallons 
a year of renewable fuel, and importers that import less than 10,000 
gallons a year of renewable fuel, are not required to generate and 
assign RINs to batches of renewable fuel that satisfy the requirements 
of paragraph (a)(1) of this section that they produce or import.
    (3) Temporary new producer threshold. Pursuant to Sec.  80.1455(c) 
and (d), new renewable fuel producers that produce less than 125,000 
gallons of renewable fuel a year are not required to generate and 
assign RINs to batches of renewable fuel to satisfy the requirements of 
paragraph (a)(1) of this section.
    (i) The provisions of this paragraph (c)(3) apply only to new 
facilities, for a maximum of three years beginning with the calendar 
year in which the production facility produces its first gallon of 
renewable fuel.
    (ii) [RESERVED]
    (4) Importers shall not generate RINs for renewable fuel imported 
from a foreign renewable fuel producer, or for renewable fuel made with 
ethanol produced by a foreign ethanol producer, unless the foreign 
renewable fuel producer or foreign ethanol producer is registered with 
EPA as required in Sec.  80.1450.
* * * * *
    (6) * * *
    (ii) The fuel has been produced from a chemical conversion process 
that uses another renewable fuel as a feedstock, the renewable fuel 
used as a feedstock was produced by another party, and RINs were 
received with the renewable fuel.
    (A) Parties who produce renewable fuel made from a feedstock which 
itself was a renewable fuel received with RINs, shall assign the 
original RINs to the new renewable fuel.

[[Page 26039]]

    (B) [Reserved]
    (d)(1) Definition of batch. For the purposes of this section and 
Sec.  80.1425, a ``batch of renewable fuel'' is a volume of renewable 
fuel that has been assigned a unique BBBBB code in the RIN, or its 
equivalent in EMTS, within a calendar year by the producer or importer 
of the renewable fuel in accordance with the provisions of this section 
and Sec.  80.1425.
* * * * *
    (2) * * *
    (ii) The value of EEEEEEEE in the batch-RIN shall represent the 
last gallon-RIN associated with the volume of renewable fuel, based on 
the RIN volume VRIN determined pursuant to paragraph (f) of 
this section.
* * * * *
    (f) * * *
    (1) Applicable pathways. D codes shall be used in RINs generated by 
producers or importers of renewable fuel according to the pathways 
listed in Table 1 to this section, or as approved by the Administrator. 
In choosing an appropriate D code, producers and importers may 
disregard any incidental, de minimis feedstock contaminants that are 
impractical to remove and are related to customary feedstock production 
and transport.

         Table 1 to Sec.   80.1426--Applicable D Codes for Each Fuel Pathway for Use in Generating RINs
----------------------------------------------------------------------------------------------------------------
              Fuel type                      Feedstock             Production process requirements       D-code
----------------------------------------------------------------------------------------------------------------
Ethanol.............................  Corn starch............  All of the following:.................          6
                                                               Dry mill process, using natural gas,
                                                                biomass, or biogas for process energy
                                                                and at least two advanced
                                                                technologies from Table 2 to this
                                                                section..
Ethanol.............................  Corn starch............  All of the following:.................          6
                                                               Dry mill process, using natural gas,
                                                                biomass, or biogas for process energy
                                                                and at least one of the advanced
                                                                technologies from Table 2 to this
                                                                section plus drying no more than 65%
                                                                of the distillers grains with
                                                                solubles it markets annually..
Ethanol.............................  Corn starch............  All of the following:.................          6
                                                               Dry mill process, using natural gas,
                                                                biomass, or biogas for process energy
                                                                and drying no more than 50% of the
                                                                distillers grains with solubles it
                                                                markets annually..
Ethanol.............................  Corn starch............  Wet mill process using biomass or               6
                                                                biogas for process energy..
Ethanol.............................  Starches from crop       Fermentation using natural gas,                 6
                                       residue and annual       biomass, or biogas for process energy.
                                       covercrops.
Biodiesel, and renewable diesel.....  Soy bean oil;            One of the following:.................          4
                                      Oil from annual          Trans-Esterification..................
                                       covercrops;.
                                      Algal oil;               Hydrotreating
                                      Biogenic waste oils/     Excluding processes that co-process
                                       fats/greases;            renewable biomass and petroleum.
                                      Non-food grade corn oil
Biodiesel, and renewable diesel.....  Soy bean oil;            One of the following:.................          5
                                      Oil from annual          Trans-Esterification..................
                                       covercrops;.
                                      Algal oil;               Hydrotreating
                                      Biogenic waste oils/     Includes only processes that co-
                                       fats/greases;            process renewable biomass and
                                                                petroleum.
                                      Non-food grade corn oil
Ethanol.............................  Sugarcane..............  Fermentation..........................          5
Ethanol.............................  Cellulosic Biomass from  Any...................................          3
                                       crop residue, slash,
                                       pre-commercial
                                       thinnings and tree
                                       residue, annual
                                       covercrops,
                                       switchgrass, and
                                       miscanthus; cellulosic
                                       components of
                                       separated yard waste;
                                       cellulosic components
                                       of separated food
                                       waste; and cellulosic
                                       components of
                                       separated MSW.
Cellulosic Diesel, Jet Fuel and       Cellulosic Biomass from  Any...................................          7
 Heating Oil.                          crop residue, slash,
                                       pre-commercial
                                       thinnings and tree
                                       residue, annual
                                       covercrops,
                                       switchgrass, and
                                       miscanthus; cellulosic
                                       components of
                                       separated yard waste;
                                       cellulosic components
                                       of separated food
                                       waste; and cellulosic
                                       components of
                                       separated MSW.
 Butanol............................  Corn starch............  Fermentation; dry mill using natural            6
                                                                gas, biomass, or biogas for process
                                                                energy.

[[Page 26040]]

Cellulosic Naphtha..................  Cellulosic Biomass from  Fischer-Tropsch process...............          3
                                       crop residue, slash,
                                       pre-commercial
                                       thinnings and tree
                                       residue, annual
                                       covercrops,
                                       switchgrass, and
                                       miscanthus; cellulosic
                                       components of
                                       separated yard waste;
                                       cellulosic components
                                       of separated food
                                       waste; and cellulosic
                                       components of
                                       separated MSW.
Ethanol, renewable diesel, jet fuel,  The non-cellulosic       Any...................................          5
 heating oil, and naphtha.             portions of separated
                                       food waste.
Biogas..............................  Landfills, sewage waste  Any...................................          5
                                       treatment plants,
                                       manure digesters.
----------------------------------------------------------------------------------------------------------------

            Table 2 to Sec.   80.1426--Advanced Technologies
------------------------------------------------------------------------

-------------------------------------------------------------------------
Corn oil fractionation that is applied to all corn used to produce
 ethanol in the facility.
Corn oil extraction that is applied to all the thin stillage and
 distillers grains and solubles produced by the ethanol production
 facility.
Membrane separation in which all ethanol dehydration in the ethanol
 production facility is done using a hydrophilic membrane.
Raw starch hydrolysis that is used for all starch hydrolysis in the
 ethanol production facility instead of hydrolysis using a traditional
 high heat (>120 [deg]C) cooking process.
Combined heat and power such that all the thermal energy used at the
 facility (including thermal energy produced at the facility and that
 which is derived from an off-site waste heat supplier), exclusive of
 any thermal energy used for the drying of distillers grains and
 solubles, is used to produce electricity prior to being used to meet
 the process heat requirements of the facility.
------------------------------------------------------------------------

* * * * *
    (3) * * *
    (iv) If the pathway applicable to a producer changes on a specific 
date, such that one pathway applies before the date and another pathway 
applies on and after the date, and each batch is of a single fuel type, 
then the applicable D code and unique BBBBB code, or its equivalent in 
EMTS, used in generating RINs must change on the date that the change 
in pathway occurs and the number of gallon-RINs that shall be generated 
for a batch of renewable fuel shall be equal to a volume calculated 
according to the following formula:

VRIN = EV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the 
number of gallon-RINs that shall be generated for a batch with a 
single applicable D code.
EV = Equivalence value for the batch of renewable fuel per Sec.  
80.1415.
Vs = Standardized volume of the batch of renewable fuel 
at 60 [deg]F, in gallons, calculated in accordance with paragraph 
(f)(8) of this section.

    (v) If a producer produces batches that are comprised of a mixture 
of fuel types with different equivalence values and different 
applicable D codes, then separate values for VRIN shall be 
calculated for each category of renewable fuel according to formulas in 
Table 3 to this section. All batch-RINs thus generated shall be 
assigned unique BBBBB codes in the RIN, or their equivalents in EMTS, 
for each portion of the batch with a different D code.

Table 3 to Sec.   80.1426--Number of Gallon-RINs To assign to Batch-RINs
                   With D codes dependent on Fuel Type
------------------------------------------------------------------------
   D code to use in batch-RIN             Number of gallon-RINs
------------------------------------------------------------------------
D = 3..........................  VRIN, CB = EVCB * Vs, CB
D = 4..........................  VRIN, BBD = EVBBD * Vs, BBD
D = 5..........................  VRIN, AB = EVAB * Vs, AB
D = 6..........................  VRIN, RF = EVRF * Vs, RF
D = 7..........................  VRIN, CD = EVCD * Vs, CD
------------------------------------------------------------------------

Where:

VRIN,CB = RIN volume, in gallons, for use in determining 
the number of gallon-RINs that shall be generated for the cellulosic 
biofuel portion of the batch with a D code of 3.
VRIN,BBD = RIN volume, in gallons, for use in determining 
the number of gallon-RINs that shall be generated for the biomass-
based diesel portion of the batch with a D code of 4.
VRIN,AB = RIN volume, in gallons, for use in determining 
the number of gallon-RINs that shall be generated for the advanced 
biofuel portion of the batch with a D code of 5.
VRIN,RF = RIN volume, in gallons, for use in determining 
the number of gallon-RINs that shall be generated for the renewable 
fuel portion of the batch with a D code of 6.
VRIN,CD = RIN volume, in gallons, for use in determining 
the number of gallon-RINs that shall be generated for the cellulosic 
diesel portion of the batch with a D code of 7.
EVCB = Equivalence value for the cellulosic biofuel 
portion of the batch per Sec.  80.1415.
EVBBD = Equivalence value for the biomass-based diesel 
portion of the batch per Sec.  80.1415.
EVAB = Equivalence value for the advanced biofuel portion 
of the batch per Sec.  80.1415.
EVRF = Equivalence value for the renewable fuel portion 
of the batch per Sec.  80.1415.
EVCD = Equivalence value for the cellulosic diesel 
portion of the batch per Sec.  80.1415.
Vs,CB = Standardized volume at 60 [deg]F of the portion 
of the batch that must be assigned a D code of 3, in gallons, 
calculated in accordance with paragraph (f)(8) of this section.
Vs,BBD = Standardized volume at 60 [deg]F of the portion 
of the batch that must be assigned a D code of 4, in gallons, 
calculated in accordance with paragraph (f)(8) of this section.
Vs,AB = Standardized volume at 60 [deg]F of the portion 
of the batch that must be assigned a D code of 5, in gallons, 
calculated in accordance with paragraph (f)(8) of this section.
Vs,RF = Standardized volume at 60 [deg]F of the portion 
of the batch that must be assigned a D code of 6, in gallons, 
calculated in accordance with paragraph (f)(8) of this section.
Vs,CD = Standardized volume at 60 [deg]F of the portion 
of the batch that must be assigned a D code of 7, in gallons, 
calculated in accordance with paragraph (f)(8) of this section.
* * * * *
    (4) Renewable fuel that is produced by co-processing renewable 
biomass and non-renewable feedstocks simultaneously to produce a fuel 
that is partially renewable.
    (i) The number of gallon-RINs that shall be generated for a batch 
of partially renewable fuel shall be equal

[[Page 26041]]

to a volume VRIN calculated according to Method A or Method 
B.
    (A) Method A.
    (1) VRIN shall be calculated according to the following 
formula:

VRIN = EV * Vs * FER/(FER + 
FENR)

Where:

VRIN = RIN volume, in gallons, for use in determining the 
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.  
80.1415.
Vs = Standardized volume of the batch of renewable fuel 
at 60 [deg]F, in gallons, calculated in accordance with paragraph 
(f)(8) of this section.
FER = Feedstock energy from renewable biomass used to 
make the transportation fuel, heating oil, or jet fuel, in Btu.
FENR = Feedstock energy from non-renewable feedstocks 
used to make the transportation fuel, heating oil, or jet fuel, in 
Btu.

    (2) The value of FE for use in paragraph (f)(4)(i)(A)(1) of this 
section shall be calculated from the following formula:

FE = M * (1-m) * CF * E

Where:

FE = Feedstock energy, in Btu.
M = Mass of feedstock, in pounds, measured on a daily or per-batch 
basis.
m = Average moisture content of the feedstock, in mass percent.
CF = Converted Fraction in annual average mass percent, representing 
that portion of the feedstock that is converted into transportation 
fuel, heating oil, or jet fuel by the producer.
E = Energy content of the components of the feedstock that are 
converted to fuel, in annual average Btu/lb, determined according to 
paragraph (f)(7) of this section.

    (B) Method B. VRIN shall be calculated according to the 
following formula:

    VRIN = EV * Vs * R

Where:

VRIN = RIN volume, in gallons, for use in determining the 
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.  
80.1415.
Vs = Standardized volume of the batch of renewable fuel 
at 60 [deg]F, in gallons, calculated in accordance with paragraph 
(f)(8) of this section.
R = The renewable fraction of the fuel as measured by a carbon-14 
dating test method as provided in paragraph (f)(9) of this section.

    (ii) The D code that shall be used in the RINs generated to 
represent partially renewable transportation fuel, heating oil, or jet 
fuel shall be the D code specified in Table 1 to this section, or a D 
code as approved by the Administrator, which corresponds to the pathway 
that describes a producer's operations. In determining the appropriate 
pathway, the contribution of non-renewable feedstocks to the production 
of partially renewable fuel shall be ignored.
    (5) * * *
    (i) Separated yard waste and food waste means, for the purposes of 
this section, waste that is one of the following:
    (A) Separated yard waste, which is a feedstock stream consisting of 
yard waste kept separate since generation from other waste materials. 
Separated yard waste is deemed to be composed entirely of cellulosic 
materials.
    (B) Separated food waste, which is a feedstock stream consisting of 
food waste kept separate since generation from other waste materials, 
and which includes food and beverage production waste and post-consumer 
food and beverage waste. Separated food waste is deemed to be composed 
entirely of non-cellulosic materials, unless a party demonstrates that 
a portion of the feedstock is cellulosic through approval of their 
facility registration.
    (C) Separated municipal solid waste (separated MSW), which is 
material remaining after separation actions have been taken to remove 
recyclable paper, cardboard, plastics, rubber, textiles, metals, and 
glass from municipal solid waste, and which is composed of both 
cellulosic and non-cellulosic materials.
* * * * *
    (iii) * * *
    (B) The fuel producer has evidence of all contracts relating to the 
disposition of paper, cardboard, plastics, rubber, textiles, metals, 
and glass that are recycled.
* * * * *
    (10)(i) For purposes of this section, renewable electricity or 
biogas that is not introduced into a distribution system with fuels 
derived from non-renewable feedstocks is considered renewable fuel and 
the producer may generate RINs 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 received approval for use of a 
D code by the Administrator;
    (B) The fuel producer has entered into a written contract for the 
sale and use of a specific quantity of renewable electricity or biogas 
as transportation fuel; and
    (C) The renewable electricity or biogas is used as a transportation 
fuel.
    (ii) A producer of renewable electricity that is generated by co-
firing a combination of renewable biomass and fossil fuel may generate 
RINs only for the portion attributable to the renewable biomass, using 
the procedure described in paragraph (f)(4) of this section.
    (11)(i) For purposes of this section, renewable electricity or 
biogas that is introduced into a commercial distribution system may be 
considered renewable fuel and the producer may generate RINs if:
* * * * *
    (C) The quantity of biogas or renewable electricity for which RINs 
were generated was sold for use as transportation fuel and for no other 
purposes.
    (ii) For biogas that is introduced into a commercial distribution 
system, the producer may generate RINs only for the volume of biogas 
that has been gathered, processed, and injected into a common carrier 
pipeline if:
* * * * *
    (iii) The fuel used for transportation purposes is considered 
produced from renewable biomass only to the extent that:
    (A) The amount of fuel sold for use as transportation fuel matches 
the amount of fuel derived from renewable biomass that the producer 
contracted to have placed into the commercial distribution system; and
* * * * *
    (iv) For renewable electricity that is generated by co-firing a 
combination of renewable biomass and fossil fuel, the producer may 
generate RINs only for the portion attributable to the renewable 
biomass, using the procedure described in paragraph (f)(4) of this 
section.
    (12) For purposes of Table 1 to 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.
    (D) The common carrier pipeline into which the biogas is placed 
ultimately serves the producer's renewable fuel facility.
    (ii) For biogas that has been gathered, processed and injected into 
a common carrier pipeline, all of the following conditions must be met:

[[Page 26042]]

    (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 placed into a common carrier pipeline is 
ultimately withdrawn from that 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.

0
10. Section 80.1427 is amended by revising paragraphs (a)(4)(i) and 
(a)(7)(i) to read as follows:

Sec.  80.1427  How are RINs used to demonstrate compliance?

    (a) * * *
    (4) * * *
    (i) A RIN generated pursuant to Sec.  80.1126 with a D code of 2 
and an RR code of 15, 16, or 17 is deemed equivalent to a RIN generated 
pursuant to Sec.  80.1426 having a D code of 4.
* * * * *
    (7) * * *
    (i) Prior to determining compliance with the 2010 biomass-based 
diesel RVO, obligated parties may reduce the value of 
RVOBBD,2010 by an amount equal to the sum of all 2008 and 
2009 RINs that they used for compliance purposes for calendar year 2009 
which have a D code of 2 and an RR code of 15, 16, or 17.
* * * * *

0
11. Section 80.1428 is amended by revising paragraph (c) to read as 
follows:

Sec.  80.1428  General requirements for RIN distribution.

* * * * *
    (c) RIN expiration. Except as provided in Sec.  80.1427(a)(7), a 
RIN is valid for compliance during the calendar year in which it was 
generated, or the following calendar year. Any RIN that is not used for 
compliance purposes for the calendar year in which it was generated, or 
for the following calendar year, will be considered an expired RIN. 
Pursuant to Sec.  80.1431(a), an expired RIN will be considered an 
invalid RIN and cannot be used for compliance purposes.
* * * * *

0
12. Section 80.1429 is amended by revising paragraphs (d) and (g) to 
read as follows:

Sec.  80.1429  Requirements for separating RINs from volumes of 
renewable fuel.

* * * * *
    (d) Upon and after separation of a RIN from its associated volume 
of renewable fuel, the separated RIN must be accompanied by a PTD 
pursuant to Sec.  80.1453 when transferred to another party.
* * * * *
    (g) Any 2009 or 2010 RINs retired pursuant to Sec.  80.1129 because 
renewable fuel was used in a nonroad vehicle or nonroad engine (except 
for ocean-going vessels), or as heating oil or jet fuel may be 
reinstated by the retiring party for sale or use to demonstrate 
compliance with a 2010 RVO.

0
13. Section 80.1430 is amended by revising paragraphs (a), (b)(2), and 
(b)(3) to read as follows:

Sec.  80.1430  Requirements for exporters of renewable fuels.

    (a) Any party that owns any amount of renewable fuel, whether in 
its neat form or blended with gasoline or diesel, that is exported from 
any of the regions described in Sec.  80.1426(b) shall acquire 
sufficient RINs to comply with all applicable Renewable Volume 
Obligations under paragraphs (b) through (e) of this section 
representing the exported renewable fuel.
    (b) * * *
    (2) Biomass-based diesel.

RVOBBD,i = [Sigma](VOLk * 
EVk)i + DBBD,i-1

Where:

RVOBBD,i = The Renewable Volume Obligation for biomass-
based diesel for the exporter for calendar year i, in gallons.
k = A discrete volume of exported renewable fuel.
VOLk = The standardized volume of discrete volume k of 
exported renewable fuel that is biodiesel or renewable diesel, in 
gallons, calculated in accordance with Sec.  80.1426(f)(8).
EVk = The equivalence value associated with discrete 
volume k.
[Sigma] = Sum involving all volumes of biodiesel or renewable diesel 
exported.
DBBD,i-1 = Deficit carryover from the previous year for 
biomass-based diesel, in gallons.

    (3) Advanced biofuel.

RVOAB,i = [Sigma](VOLk * 
EVk)i + DAB,i-1

Where:

RVOAB,i = The Renewable Volume Obligation for advanced 
biofuel for the exporter for calendar year i, in gallons.
k = A discrete volume of exported renewable fuel.
VOLk = The standardized volume of discrete volume k of 
exported renewable fuel that is biodiesel or renewable diesel, or 
that the exporter knows or has reason to know is cellulosic biofuel 
or advanced biofuel, in gallons, calculated in accordance with Sec.  
80.1426(f)(8).
EVk = The equivalence value associated with discrete 
volume k.
[Sigma] = Sum involving all volumes of advanced biofuel exported.
DAB,i-1 = Deficit carryover from the previous year for 
advanced biofuel, in gallons.
* * * * *

0
14. Section 80.1440 is amended by revising paragraphs (c)(3), (d), and 
(e) to read as follows:

Sec.  80.1440  What are the provisions for blenders who handle and 
blend less than 125,000 gallons of renewable fuel per year?

* * * * *
    (c) * * *
    (3) A renewable fuel blender who delegates its RIN-related 
responsibilities under this section will remain liable for any 
violation of this subpart M associated with its renewable fuel blending 
activities.
    (d) Renewable fuel blenders who handle and blend less than 125,000 
gallons of renewable fuel per year and delegate their RIN-related 
responsibilities under paragraph (b) of this section must register 
pursuant to Sec.  80.1450(e), and may not own RINs.
    (e) Renewable fuel blenders who handle and blend less than 125,000 
gallons of renewable fuel per year and who do not opt to delegate their 
RIN-related responsibilities, or own RINs, will be subject to all 
requirements stated in paragraph (b) of this section, and all other 
applicable requirements of this subpart M.

0
15. Section 80.1442 is amended as follows:
0
a. By revising paragraph (b)(1).
0
b. By removing and reserving paragraph (b)(4).
0
c. By revising paragraph (c).
0
d. By revising paragraph (d)(1).

Sec.  80.1442  What are the provisions for small refiners under the RFS 
program?

* * * * *
    (b)(1) The small refiner exemption in paragraph (c) of this section 
is effective immediately, except as provided in paragraph (b)(5) of 
this section, provided that all requirements of this section are 
satisfied.
* * * * *
    (4) [Reserved]
* * * * *

[[Page 26043]]

    (c) Small refiner temporary exemption.
    (1) Transportation fuel produced by an small refiner pursuant to 
paragraph (b)(1) of this section, or an approved foreign small refiner 
(as defined at Sec.  80.1465(a)), is exempt from January 1, 2010 
through December 31, 2010 from the renewable fuel standards of Sec.  
80.1405 and the requirements that apply to obligated parties under this 
subpart if the refiner or foreign refiner meets all the criteria of 
paragraph (a)(1) of this section.
    (2) The small refiner exemption shall apply to a small refiner 
pursuant to paragraph (b)(1) of this section or an approved foreign 
small refiner unless that refiner chooses to waive this exemption (as 
described in paragraph (d) of this section).
    (d)(1) A refiner may, at any time, waive the small refiner 
exemption under paragraph (c) of this section upon notification to EPA.
* * * * *

0
16. Section 80.1450 is amended by revising paragraphs (b), (c), (d)(2), 
(e), and (f) to read as follows:

Sec.  80.1450  What are the registration requirements under the RFS 
program?

* * * * *
    (b) Producers. Any RIN-generating foreign or domestic producer of 
renewable fuel, any foreign renewable fuel producer that sells 
renewable fuel for RIN generation by a United States importer, or any 
foreign ethanol producer that produces ethanol used in renewable fuel 
for which RINs are generated by a United States importer, must provide 
EPA the information specified under Sec.  80.76 if such information has 
not already been provided under the provisions of this part, and must 
receive EPA-issued company and facility identification numbers prior to 
the generation of any RINs for their fuel or for fuel made with their 
ethanol. Unless otherwise specifically indicated, all the following 
registration information must be submitted and accepted by EPA by July 
1, 2010, or 60 days prior to the generation of RINs, whichever date 
comes later, subject to this subpart:
    (1) A description of the types of renewable fuels or ethanol that 
the producer intends to produce at the facility and that the facility 
is capable of producing without significant modifications to the 
existing facility. For each type of renewable fuel or ethanol, the 
renewable fuel producer or foreign ethanol producer shall also provide 
all the following:
    (i) A list of all the feedstocks the facility is capable of 
utilizing without significant modification to the existing facility.
    (ii) A description of the facility's renewable fuel or ethanol 
production processes.
    (iii) The type of co-products produced with each type of renewable 
fuel or ethanol.
    (iv) A process heat fuel supply plan that includes all of the 
following:
    (A) For all process heat fuel, provide all the following 
information:
    (1) Each type of process heat fuel used at the facility.
    (2) Name and address of the company supplying each process heat 
fuel to the renewable fuel or foreign ethanol facility.
    (B) For biogas used for process heat, provide all the following 
information:
    (1) Locations from which the biogas was produced or extracted.
    (2) Name of suppliers of all biogas the producer purchases for use 
for process heat in the facility.
    (3) An affidavit from the biogas supplier stating its intent to 
supply biogas to the renewable fuel producer or foreign ethanol 
producer, and the quantity and energy content of the biogas that it 
intends to provide to the renewable fuel producer or foreign ethanol 
producer.
    (v) The following records that support the facility's baseline 
volume as defined in Sec.  80.1401 or, for foreign ethanol facilities, 
their production volume:
    (A) For all facilities except those described in paragraph 
(b)(1)(v)(B) of this section, copies of the most recent applicable air 
permits issued by the U.S. Environmental Protection Agency, state, 
local air pollution control agencies, or foreign governmental agencies 
and that govern the construction and/or operation of the renewable fuel 
or foreign ethanol facility.
    (B) For facilities claiming the exemption described in Sec.  
80.1403(c) or (d), applicable air permits issued by the U.S. 
Environmental Protection Agency, state, local air pollution control 
agencies, or foreign governmental agencies that govern the construction 
and/or operation of the renewable fuel facility that were:
    (1) Issued or revised no later than December 19, 2007, for 
facilities described in Sec.  80.1403(c); or
    (2) Issued or revised no later than December 31, 2009, for 
facilities described in Sec.  80.1403(d).
    (C) For all facilities, copies of documents demonstrating each 
facility's actual peak capacity as defined in Sec.  80.1401 if the 
maximum rated annual volume output of renewable fuel is not specified 
in the air permits specified in paragraphs (b)(1)(v)(A) and 
(b)(1)(v)(B) of this section, as appropriate.
    (D) Such other records as may be requested by the Administrator.
    (vi) For facilities claiming the exemption described in Sec.  
80.1403(c) or (d), evidence demonstrating the date that construction 
commenced (as defined in Sec.  80.1403(a)(1)) including all of the 
following:
    (A) Contracts with construction and other companies.
    (B) Applicable air permits issued by the U.S. Environmental 
Protection Agency, state, local air pollution control agencies, or 
foreign governmental agencies that governed the construction and/or 
operation of the renewable fuel facility during construction and when 
first operated.
    (vii)(A) For a producer of renewable fuel or a foreign producer of 
ethanol made from separated yard waste per Sec.  80.1426(f)(5)(i)(A):
    (1) The location of any municipal waste facility or other facility 
from which the waste stream consisting solely of separated yard waste 
is collected; and
    (2) A plan documenting how the waste will be collected and how the 
renewable fuel producer or foreign ethanol producer will conduct 
ongoing verification that such waste consists only of yard waste (and 
incidental other components such as paper and plastics) that is kept 
separate since generation from other waste materials.
    (B) For a producer of renewable fuel or a foreign producer of 
ethanol made from separated food waste per Sec.  80.1426(f)(5)(i)(B):
    (1) The location of any municipal waste facility or other facility 
from which the waste stream consisting solely of separated food waste 
is collected; and
    (2) A plan documenting how the waste will be collected, how the 
cellulosic and non-cellulosic portions of the waste will be quantified, 
and for ongoing verification that such waste consists only of food 
waste (and incidental other components such as paper and plastics) that 
is kept separate since generation from other waste materials.
    (viii) For a producer of renewable fuel, or a foreign producer of 
ethanol, made from separated municipal solid waste per Sec.  
80.1426(f)(5)(i)(C):
    (A) The location of the municipal waste facility from which the 
separated municipal solid waste is collected or from which material is 
collected that will be processed to produce separated municipal solid 
waste.
    (B) A plan providing ongoing verification that there is separation 
of recyclable paper, cardboard, plastics, rubber, textiles, metals, and 
glass wastes

[[Page 26044]]

to the extent reasonably practicable and which documents the following:
    (1) Extent and nature of recycling that occurred prior to receipt 
of the waste material by the renewable fuel producer or foreign ethanol 
producer;
    (2) Identification of available recycling technology and practices 
that are appropriate for removing recycling materials from the waste 
stream by the fuel producer or foreign ethanol producer; and
    (3) Identification of the technology or practices selected for 
implementation by the fuel producer or foreign ethanol producer 
including an explanation for such selection, and reasons why other 
technologies or practices were not.
    (C) Contracts relevant to materials recycled from municipal waste 
streams as described in Sec.  80.1426(f)(5)(iii).
    (D) Certification by the producer that recycling is conducted in a 
manner consistent with goals and requirements of applicable State and 
local laws relating to recycling and waste management.
    (2) An independent third-party engineering review and written 
report and verification of the information provided pursuant to 
paragraph (b)(1) of this section. The report and verification shall be 
based upon a site visit and review of relevant documents and shall 
separately identify each item required by paragraph (b)(1) of this 
section, describe how the independent third-party evaluated the 
accuracy of the information provided, state whether the independent 
third-party agrees with the information provided, and identify any 
exceptions between the independent third-party's findings and the 
information provided.
    (i) The verifications required under this section must be conducted 
by a professional engineer, as specified in paragraphs (b)(2)(i)(A) and 
(b)(2)(i)(B) of this section, who is an independent third-party. The 
verifying engineer must be:
    (A) For a domestic renewable fuel production facility or a foreign 
ethanol production facility, a professional engineer who is licensed by 
an appropriate state agency in the United States, with professional 
work experience in the chemical engineering field or related to 
renewable fuel production.
    (B) For a foreign renewable fuel production facility, an engineer 
who is a foreign equivalent to a professional engineer licensed in the 
United States with professional work experience in the chemical 
engineering field or related to renewable fuel production.
    (ii) To be considered an independent third-party under this 
paragraph (b)(2):
    (A) The third-party shall not be operated by the renewable fuel 
producer or foreign ethanol producer, or any subsidiary or employee of 
the renewable fuel producer or foreign ethanol producer.
    (B) The third-party shall be free from any interest in the 
renewable fuel producer or foreign ethanol producer's business.
    (C) The renewable fuel producer or foreign ethanol producer shall 
be free from any interest in the third-party's business.
    (D) Use of a third-party that is debarred, suspended, or proposed 
for debarment pursuant to the Government-wide Debarment and Suspension 
regulations, 40 CFR part 32, or the Debarment, Suspension and 
Ineligibility provisions of the Federal Acquisition Regulations, 48 
CFR, part 9, subpart 9.4, shall be deemed noncompliance with the 
requirements of this section.
    (iii) The independent third-party shall retain all records 
pertaining to the verification required under this section for a period 
of five years from the date of creation and shall deliver such records 
to the Administrator upon request.
    (iv) The renewable fuel producer or foreign ethanol producer must 
retain records of the review and verification, as required in Sec.  
80.1454(b)(6).
    (v) The third-party must provide to EPA documentation of his or her 
qualifications as part of the engineering review, including proof of 
appropriate professional license or foreign equivalent.
    (vi) Owners and operators of facilities described in Sec.  
80.1403(c) and (d) must submit the engineering review no later than 
December 31, 2010.
    (c) Importers. Importers of renewable fuel must provide EPA the 
information specified under Sec.  80.76, if such information has not 
already been provided under the provisions of this part and must 
receive an EPA-issued company identification number prior to generating 
or owning RINs. Registration information must be submitted and accepted 
by EPA by July 1, 2010, or 60 days prior to an importer importing any 
renewable fuel with assigned RINs or generating any RINs for renewable 
fuel, whichever dates comes later.
    (d) * * *
    (2) Any producer of renewable fuel who makes any other changes to a 
facility that will affect the producer's registration information but 
will not affect the renewable fuel category for which the producer is 
registered per paragraph (b) of this section must update his 
registration information 7 days prior to the change.
    (e) Any party who owns RINs, intends to own RINs, or intends to 
allow another party to separate RINs as per Sec.  80.1440, but who is 
not covered by paragraph (a), (b), or (c) of this section, must provide 
EPA the information specified under Sec.  80.76, if such information 
has not already been provided under the provisions of this part and 
must receive an EPA-issued company identification number prior to 
owning any RINs. Registration information must be submitted at least 30 
days prior to RIN ownership.
    (f) Registration for any facility claiming an exemption under Sec.  
80.1403(c) or (d), must be submitted by July 1, 2013. EPA may in its 
sole discretion waive this requirement if it determines that the 
information submitted in any later registration can be verified by EPA 
in the same manner as would have been possible with a timely 
submission.
* * * * *

0
17. Section 80.1451 is amended as follows:
0
a. By revising paragraph (a)(1)(xi).
0
b. By revising paragraphs (b)(1)(ii)(H), (b)(1)(ii)(K), (b)(1)(ii)(N), 
(b)(1)(ii)(P), (b)(1)(ii)(Q), and (b)(1)(ii)(R).
0
c. By revising paragraphs (c)(1)(iii)(D) and (c)(2)(xv).
0
d. By revising paragraphs (d) introductory text and (d)(1).
0
e. By revising paragraph (e).

Sec.  80.1451  What are the reporting requirements under the RFS 
program?

    (a) * * *
    (1) * * *
    (xi) A list of all RINs retired for compliance in the reporting 
period.
* * * * *
    (b) * * *
    (1) * * *
    (ii) * * *
    (H) The fuel type of each batch.
* * * * *
    (K) The types and quantities of feedstocks used.
* * * * *
    (M) The type of co-products produced with each batch.
    (N) The quantity of co-products produced in each quarter.
* * * * *
    (P) Producers of renewable electricity and producers or importers 
of biogas used for transportation as described in Sec.  80.1426(f)(10) 
and (11), shall report all of the following:
    (1) The total energy produced and supplied for use as a 
transportation fuel, in units of energy (for example, MMBtu or MW) 
based on metering of gas volume or electricity.

[[Page 26045]]

    (2) The name and location of where the fuel is sold for use as a 
transportation fuel.
    (Q) Producers or importers of renewable fuel produced at facilities 
that use biogas for process heat as described in Sec.  80.1426(f)(12), 
shall report the total energy supplied to the renewable fuel facility, 
in MMBtu based on metering of gas volume.
    (R) Producers or importers of renewable fuel made from separated 
municipal solid waste as described in Sec.  80.1426(f)(5)(i)(C), shall 
report the amount of paper, cardboard, plastics, rubber, textiles, 
metals, and glass separated from municipal solid waste for recycling. 
Reporting shall be in units of weight (in tons).
* * * * *
    (c) * * *
    (1) * * *
    (iii) * * *
    (D) Transaction type (i.e., RIN buy, RIN sell, RIN separation, RIN 
retire, reinstated 2009 or 2010 RINs).
* * * * *
    (2) * * *
    (xv) The total 2009 and 2010 retired RINs reinstated.
* * * * *
    (d) Except for those producers using feedstocks subject to the 
aggregate compliance approach described in Sec.  80.1454(g), producers 
and RIN-generating importers of renewable fuel made from feedstocks 
that are planted crops and crop residue from existing foreign 
agricultural land, planted trees or tree residue from actively managed 
tree plantations, slash and pre-commercial thinnings from forestlands 
or biomass obtained from areas at risk of wildfire must submit 
quarterly reports according to the schedule in paragraph (f)(2) of this 
section that include all of the following:
    (1) A summary of the types and quantities of feedstocks used in 
that quarter.
* * * * *
    (e) If EPA finds that the 2007 baseline amount of agricultural land 
has been exceeded in any year beginning in 2010, beginning on the first 
day of July of the following calendar year any producers or importers 
of renewable fuel as defined in Sec.  80.1401 who use planted crops 
and/or crop residue from existing U.S. agricultural lands as feedstock 
must submit quarterly reports according to the schedule in paragraph 
(f)(2) of this section that include all of the following:
    (1) A summary of the types and quantities of feedstocks used in 
that quarter.
    (2) Electronic data identifying the land by coordinates of the 
points defining the boundaries from which each type of feedstock listed 
per paragraph (d)(1) of this section was harvested.
    (3) If electronic data identifying a plot of land have been 
submitted previously, producers and RIN-generating importers may submit 
a cross-reference to that electronic data.
* * * * *

0
18. Section 80.1452 is amended as follows:
0
a. By revising paragraphs (b) introductory text, (b)(2), (b)(4), 
(b)(6), (b)(9), (b)(13), and (b)(15).
0
b. By revising paragraphs (c) introductory text, (c)(4), (c)(5), and 
(c)(7).

Sec.  80.1452  What are the requirements related to the EPA Moderated 
Transaction System (EMTS)?

* * * * *
    (b) Starting July 1, 2010, each time a domestic or foreign producer 
or importer of renewable fuel assigns RINs to a batch of renewable fuel 
pursuant to Sec.  80.1426(e), all the following information must be 
submitted to EPA via the submitting party's EMTS account within five 
(5) business days of the date of RIN assignment.
* * * * *
    (2) The EPA company registration number of the producer of 
renewable fuel.
* * * * *
    (4) The EPA facility registration number of the producer of the 
renewable fuel.
* * * * *
    (6) The D code of RINs generated for the batch.
* * * * *
    (9) The fuel type of the batch.
* * * * *
    (13) The type and quantity of feedstock(s) used for the batch.
* * * * *
    (15) The type and quantity of co-products produced with the batch 
of renewable fuel.
* * * * *
    (c) Starting July 1, 2010, each time any party engages in a 
transaction involving RINs generated on or after July 1, 2010, all the 
following information must be submitted to EPA via the submitting 
party's EMTS account within five (5) business days of the reportable 
event. The reportable event for a RIN purchase or sale occurs on the 
date of transfer per Sec.  80.1453(a)(4). The reportable event for a 
RIN separation or retirement occurs on the date of separation or 
retirement as described in Sec.  80.1429.
* * * * *
    (4) The RIN status (Assigned or Separated).
    (5) The D code of the RINs.
* * * * *
    (7) The date of transfer per Sec.  80.1453(a)(4), if applicable.
* * * * *

0
19. Section 80.1453 is amended as follows:
0
a. By removing and reserving paragraph (a)(5).
0
b. By revising paragraphs (a)(7), (a)(8), (a)(10), and (a)(11).

Sec.  80.1453  What are the product transfer document (PTD) 
requirements for the RFS program?

    (a) * * *
    (5) [Reserved]
* * * * *
    (7) The D code of the RINs.
    (8) The RIN status (Assigned or Separated).
* * * * *
    (10) The associated reason for the sell or buy transaction (e.g., 
standard trade or remedial action).
    (11) Additional RIN-related information, as follows:
    (i) If assigned RINs are being transferred on the same PTD used to 
transfer ownership of the renewable fuel, then the assigned RIN 
information shall be identified on the PTD.
    (A) The identifying information for a RIN that is transferred in 
EMTS generically is the information specified in paragraphs (a)(1) 
through (a)(10) of this section.
    (B) The identifying information for a RIN that is transferred in 
EMTS uniquely is the information specified in paragraphs (a)(1) through 
(a)(10) of this section, the RIN generator company ID, the RIN 
generator facility ID, and the batch number.
    (C) The identifying information for a RIN that is generated prior 
to July 1, 2010, is the 38-digit code pursuant to Sec.  80.1425, in its 
entirety.
    (ii) If assigned RINs are being transferred on a separate PTD from 
that which is used to transfer ownership of the renewable fuel, then 
the PTD which is used to transfer ownership of the renewable fuel shall 
include all the following:
    (A) The number of gallon-RINs being transferred.
    (B) A unique reference to the PTD which is transferring the 
assigned RINs.
    (C) The information specified in paragraphs (a)(11)(i)(A) through 
(a)(11)(i)(C) of this section, as appropriate.
    (iii) If no assigned RINs are being transferred with the renewable 
fuel, the PTD which is used to transfer

[[Page 26046]]

ownership of the renewable fuel shall state ``No assigned RINs 
transferred.''.
    (iv) If RINs have been separated from the renewable fuel or fuel 
blend pursuant to Sec.  80.1429(b)(4), then all PTDs which are at any 
time used to transfer ownership of the renewable fuel or fuel blend 
shall state ``This volume of fuel must be used in the designated form, 
without further blending.''.
* * * * *

0
20. Section 80.1454 is amended as follows:
0
a. By revising paragraphs (a)(2) and (a)(3)(iv), and adding a new 
paragraph (a)(6).
0
b. By revising paragraphs (c)(1)(i) introductory text, (c)(1)(i)(A), 
(c)(1)(ii)(A), and (c)(2)(ii).
0
c. By revising paragraph (d) introductory text.
0
d. By redesignating paragraph (d)(3) as paragraph (d)(4), adding a new 
paragraph (d)(3), and revising newly designated paragraph (d)(4).
0
e. By revising paragraph (g).
0
f. By revising paragraphs (h) introductory text and (h)(6)(v).
0
g. By revising paragraph (j) introductory text.
0
h. By redesignating paragraph (j)(2)(iii) as paragraph (j)(2)(iv), and 
adding a new paragraph (j)(2)(iii).
0
i. By revising paragraphs (k)(1) through (k)(5).

Sec.  80.1454  What are the recordkeeping requirements under the RFS 
program?

    (a) * * *
    (2) Copies of all reports submitted to EPA under Sec.  80.1451(a), 
as applicable.
    (3) * * *
    (iv) Additional information, including contracts, correspondence, 
and invoices, related to details of the RIN transaction and its terms.
* * * * *
    (6) For exported renewable fuel, invoices, bills of lading and 
other documents describing the exported renewable fuel.
* * * * *
    (c) * * *
    (1) * * *
    (i) RIN-generating foreign producers and importers of renewable 
fuel made from feedstocks that are planted crops or crop residue from 
existing foreign agricultural land, planted trees or tree residue from 
actively managed tree plantations, slash and pre-commercial thinnings 
from forestlands or biomass obtained from wildland-urban interface must 
maintain all the following records to verify the location where these 
feedstocks were produced:
    (A) Maps or electronic data identifying the boundaries of the land 
where each type of feedstock was produced.
* * * * *
    (ii)(A) RIN-generating foreign producers and importers of renewable 
fuel made from planted crops or crop residue from existing foreign 
agricultural land must keep records that serve as evidence that the 
land from which the feedstock was obtained was cleared or cultivated 
prior to December 19, 2007 and actively managed or fallow, and 
nonforested on December 19, 2007. RIN-generating foreign producers or 
importers of renewable fuel made from planted trees or tree residue 
from actively managed tree plantations must keep records that serve as 
evidence that the land from which the feedstock was obtained was 
cleared prior to December 19, 2007 and actively managed on December 19, 
2007.
* * * * *
    (2) * * *
    (ii) Copies of all reports submitted to EPA under Sec. Sec.  
80.1449 and 80.1451(b).
* * * * *
    (d) Additional requirements for domestic producers of renewable 
fuel. Except as provided in paragraphs (g) and (h) of this section, 
beginning July 1, 2010, any domestic producer of renewable fuel as 
defined in Sec.  80.1401 that generates RINs for such fuel must keep 
documents associated with feedstock purchases and transfers that 
identify where the feedstocks were produced and are sufficient to 
verify that feedstocks used are renewable biomass (as defined in Sec.  
80.1401) if RINs are generated.
* * * * *
    (3) Domestic producers of renewable fuel made from planted crops or 
crop residue from existing foreign agricultural land must keep all the 
following records:
    (i) Records that serve as evidence that the land from which the 
feedstock was obtained was cleared or cultivated prior to December 19, 
2007 and actively managed or fallow, and nonforested on December 19, 
2007. The records must be provided by the feedstock producer and must 
include at least one of the following documents, which must be 
traceable to the land in question:
    (A) Sales records for planted crops, crop residue, or livestock.
    (B) Purchasing records for fertilizer, weed control, seeds, 
seedlings, or other nursery stock.
    (C) A written management plan for agricultural purposes.
    (D) Documentation of participation in an agricultural program 
sponsored by a Federal, State, or local government agency.
    (E) Documentation of land management in accordance with an 
agricultural product certification program.
    (ii) Records to verify the location where the feedstocks were 
produced:
    (A) Maps or electronic data identifying the boundaries of the land 
where each type of feedstock was produced; and
    (B) Bills of lading, product transfer documents or other commercial 
documents showing the quantity of feedstock purchased from each area 
identified in paragraph (d)(3)(ii)(A) of this section, and showing each 
transfer of custody of the feedstock from the location where it was 
produced to the renewable fuel facility.
    (4) Domestic producers of renewable fuel made from any other type 
of renewable biomass must have documents from their feedstock supplier 
certifying that the feedstock qualifies as renewable biomass as defined 
in Sec.  80.1401, describing the feedstock. Separated yard and food 
waste and separated municipal solid waste are subject to the 
requirements in paragraph (j) of this section.
* * * * *
    (g) Aggregate compliance with renewable biomass requirement. Any 
producer or RIN-generating importer of renewable fuel made from planted 
crops or crop residue from existing U.S. agricultural land as defined 
in Sec.  80.1401 is subject to the aggregate compliance approach and is 
not required to maintain feedstock records unless EPA publishes a 
finding that the 2007 baseline amount of agricultural land has been 
exceeded.
    (1) EPA will make a finding concerning whether the 2007 baseline 
amount of U.S. agricultural land has been exceeded and will publish 
this finding in the Federal Register by November 30 of the year 
preceding the compliance period.
    (2) If EPA finds that the 2007 baseline amount of U.S. agricultural 
land has been exceeded, beginning on the first day of July of the 
compliance period in question any producer or RIN-generating importer 
of renewable fuel made from planted crops and/or crop residue from U.S. 
agricultural lands as feedstock for renewable fuel for which RINs are 
generated must keep all the following records:
    (i) Records that serve as evidence that the land from which the 
feedstock was obtained was cleared or cultivated prior to December 19, 
2007 and actively managed or fallow, and nonforested on December 19, 
2007. The records must be provided by the feedstock producer and

[[Page 26047]]

must include at least one of the following documents, which must be 
traceable to the land in question:
    (A) Sales records for planted crops, crop residue or livestock.
    (B) Purchasing records for fertilizer, weed control, seeds, 
seedlings, or other nursery stock.
    (C) A written management plan for agricultural purposes.
    (D) Documentation of participation in an agricultural program 
sponsored by a Federal, state, or local government agency.
    (E) Documentation of land management in accordance with an 
agricultural product certification program.
    (ii) Records to verify the location where the feedstocks were 
produced:
    (A) Maps or electronic data identifying the boundaries of the land 
where each type of feedstock was produced; and
    (B) Bills of lading, product transfer documents or other commercial 
documents showing the quantity of feedstock purchased from each area 
identified in paragraph (g)(2)(ii)(A) of this section, and showing each 
transfer of custody of the feedstock from the location where it was 
produced to the renewable fuel facility.
    (h) Alternative renewable biomass tracking requirement. Any foreign 
or domestic renewable fuel producer or RIN-generating importer may 
comply with the following alternative renewable biomass tracking 
requirement instead of the recordkeeping requirements in paragraphs 
(c)(1), (d), and (g) of this section:
* * * * *
    (6) * * *
    (v) EPA may revoke any approval of a survey plan under this section 
for cause, including an EPA determination that the approved survey plan 
had proved inadequate in practice or that it was not fully implemented.
* * * * *
    (j) A renewable fuel producer that produces fuel from separated 
yard and food waste as described in Sec.  80.1426(f)(5)(i)(A) and (B) 
and separated municipal solid waste as described in Sec.  
80.1426(f)(5)(i)(C) shall keep all the following additional records:
* * * * *
    (2) * * *
    (iii) Documents demonstrating the fuel sampling methods used 
pursuant to Sec.  80.1426(f)(9) and the results of all fuel analyses to 
determine the non-fossil fraction of fuel made from separated municipal 
solid waste.
    (k) * * *
    (1) Contracts and documents memorializing the sale of biogas or 
renewable electricity for use as transportation fuel relied upon in 
Sec.  80.1426(f)(10), Sec.  80.1426(f)(11), or for use of biogas for 
use as process heat to make renewable fuel as relied upon in Sec.  
80.1426(f)(12), and the transfer of title of the biogas or renewable 
electricity and all associated environmental attributes from the point 
of generation to the facility which sells or uses the fuel for 
transportation purposes.
    (2) Documents demonstrating the volume and energy content of 
biogas, or kilowatts of renewable electricity, relied upon under Sec.  
80.1426(f)(10) that was delivered to the facility which sells or uses 
the fuel for transportation purposes.
    (3) Documents demonstrating the volume and energy content of 
biogas, or kilowatts of renewable electricity, relied upon under Sec.  
80.1426(f)(11), or biogas relied upon under Sec.  80.1426(f)(12), that 
was placed into the common carrier pipeline (for biogas) or 
transmission line (for renewable electricity).
    (4) Documents demonstrating the volume and energy content of 
biogas, or kilowatts of renewable electricity, relied upon under Sec.  
80.1426(f)(12) at the point of distribution.
    (5) Affidavits from the biogas or renewable electricity producer 
and all parties that held title to the biogas or renewable electricity 
confirming that title and environmental attributes of the biogas or 
renewable electricity relied upon under Sec.  80.1426(f)(10) and (11) 
were used for transportation purposes only, and that the environmental 
attributes of the biogas relied upon under Sec.  80.1426(f)(12) were 
used for process heat at the renewable fuel producer's facility, and 
for no other purpose. The renewable fuel producer shall create and/or 
obtain these affidavits at least once per calendar quarter.
* * * * *

0
21. Section 80.1455 is amended by revising paragraphs (a) introductory 
text, (b)(1), (c) introductory text, and (d)(1) to read as follows:

Sec.  80.1455  What are the small volume provisions for renewable fuel 
production facilities and importers?

    (a) Standard volume threshold. Renewable fuel production facilities 
located within the United States that produce less than 10,000 gallons 
of renewable fuel each year, and importers who import less than 10,000 
gallons of renewable fuel each year, are not subject to the 
requirements of Sec.  80.1426(a) and (e) related to the generation and 
assignment of RINs to batches of renewable fuel. Except as stated in 
paragraph (b) of this section, such production facilities and importers 
that do not generate and assign RINs to batches of renewable fuel are 
also exempt from all the following requirements of this subpart:
* * * * *
    (b)(1) Renewable fuel production facilities and importers who 
produce or import less than 10,000 gallons of renewable fuel each year 
and that generate and assign RINs to batches of renewable fuel are 
subject to the provisions of Sec. Sec.  80.1426, 80.1449 through 
80.1452, 80.1454, and 80.1464.
* * * * *
    (c) Temporary volume threshold. Renewable fuel production 
facilities located within the United States that produce less than 
125,000 gallons of renewable fuel each year are not subject to the 
requirements of Sec.  80.1426(a) and (e) related to the generation and 
assignment of RINs to batches of renewable fuel for up to three years, 
beginning with the calendar year in which the production facility 
produces its first gallon of renewable fuel. Except as stated in 
paragraph (d) of this section, such production facilities that do not 
generate and assign RINs to batches of renewable fuel are also exempt 
from all the following requirements of this subpart for a maximum of 
three years:
* * * * *
    (d)(1) Renewable fuel production facilities who produce less than 
125,000 gallons of renewable fuel each year and that generate and 
assign RINs to batches of renewable fuel are subject to the provisions 
of Sec. Sec.  80.1426, 80.1449 through 80.1452, 80.1454, and 80.1464.
* * * * *

0
22. Section 80.1460 is amended by revising paragraph (c)(2) to read as 
follows:

Sec.  80.1460  What acts are prohibited under the RFS program?

* * * * *
    (c) * * *
    (2) Use a validly generated RIN to meet the person's RVOs under 
Sec.  80.1427, or separate and transfer a validly generated RIN, where 
the person using the RIN ultimately uses the renewable fuel volume 
associated with the RIN in an application other than for use as 
transportation fuel, jet fuel, or heating oil (as defined in Sec.  
80.1401).
* * * * *

0
23. Section 80.1463 is amended by revising paragraphs (a) and (b) to 
read as follows:

[[Page 26048]]

Sec.  80.1463  What penalties apply under the RFS program?

    (a) Any person who is liable for a violation under Sec.  80.1461 is 
subject to a civil penalty as specified in sections 205 and 211(d) of 
the Clean Air Act, for every day of each such violation and the amount 
of economic benefit or savings resulting from each violation.
    (b) Any person liable under Sec.  80.1461(a) for a violation of 
Sec.  80.1460(c) for failure to meet its RVOs, or Sec.  80.1460(e) for 
causing another person to fail to meet their RVOs during any compliance 
period, is subject to a separate day of violation for each day in the 
compliance period.
* * * * *

0
24. Section 80.1464 is amended as follows:
0
a. By revising paragraphs (a)(1)(i)(A) and (a)(1)(iv)(A), adding 
paragraph (a)(1)(iv)(D), and removing paragraph (a)(1)(vii).
0
b. By revising paragraphs (b)(1)(i) and (b)(1)(ii).
0
c. By revising paragraph (c)(2)(ii).

Sec.  80.1464  What are the attest engagement requirements under the 
RFS program?

* * * * *
    (a) * * *
    (1) * * *
    (i) * * *
    (A) The obligated party's volume of all products listed in Sec.  
80.1407(c) and (e), or the exporter's volume of each category of 
exported renewable fuel identified in Sec.  80.1430(b)(1) through 
(b)(4).
* * * * *
    (iv) For exporters, perform all of the following:
    (A) Obtain the database, spreadsheet, or other documentation that 
the exporter maintains for all exported renewable fuel.
* * * * *
    (D) Select sample batches in accordance with the guidelines in 
Sec.  80.127 from each separate category of renewable fuel exported and 
identified in Sec.  80.1451(a); obtain invoices, bills of lading and 
other documentation for the representative samples; state whether any 
of these documents refer to the exported fuel as advanced biofuel or 
cellulosic biofuel; and report as a finding whether or not the exporter 
calculated an advanced biofuel or cellulosic biofuel RVO for these 
fuels pursuant to Sec.  80.1430(b)(1) or Sec.  80.1430(b)(3).
* * * * *
    (b) * * *
    (1) * * *
    (i) Obtain and read copies of the reports required under Sec.  
80.1451(b)(1), (d), and (e) for the compliance year.
    (ii) Obtain production data for each renewable fuel batch by type 
of renewable fuel that was produced or imported during the year being 
reviewed; compute the number of gallon-RINs production dates, types, 
volumes of denaturant and applicable equivalence values, and production 
volumes for each batch; report the total RINs generated during the year 
being reviewed; and state whether this information agrees with the 
party's reports to EPA. Report as a finding any exceptions.
* * * * *
    (c) * * *
    (2) * * *
    (ii) Obtain the database, spreadsheet, or other documentation used 
to generate the information in the RIN activity reports; compare the 
RIN transaction samples reviewed under paragraph (c)(1) of this section 
with the corresponding entries in the database or spreadsheet and 
report as a finding any discrepancies; compute the total number of 
current-year and prior-year RINs owned at the start and end of each 
quarter, purchased, sold, retired, separated, and reinstated and for 
parties that reported RIN activity for RINs assigned to a volume of 
renewable fuel, the volume of renewable fuel owned at the end of each 
quarter, as represented in these documents; and state whether this 
information agrees with the party's reports to EPA.
* * * * *
0
25. Section 80.1465 is amended by revising paragraphs (a)(6) and 
(d)(1)(ii) to read as follows:

Sec.  80.1465  What are the additional requirements under this subpart 
for foreign small refiners, foreign small refineries, and importers of 
RFS-FRFUEL?

    (a) * * *
    (6) Non-RFS-FRFUEL is transportation fuel produced at a foreign 
refinery that has not received a small refinery exemption under Sec.  
80.1441 or by a foreign refiner that has not received a small refiner 
exemption under Sec.  80.1442.
* * * * *
    (d) * * *
    (1) * * *
    (ii) Determine the volume of RFS-FRFUEL loaded onto the vessel, 
temperature-corrected to 60[deg]F (exclusive of any tank bottoms before 
loading).
* * * * *
[FR Doc. 2010-10851 Filed 5-7-10; 8:45 am]
BILLING CODE 6560-50-P
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