Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61281 

of the United States. EPA will submit a 

report containing this action 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). 

Under section 307(b)(1) of the CAA, 

petitions for judicial review of this 

action must be filed in the United States 

Court of Appeals for the appropriate 

circuit by December 10, 2012. Filing a 

petition for reconsideration by the 

Administrator of this final rule does not 

affect the finality of this action for the 

purposes of judicial review nor does it 

extend the time within which a petition 

for judicial review may be filed, and 

shall not postpone the effectiveness of 

such rule or action. This action may not 

be challenged later in proceedings to 

enforce its requirements. See section 

307(b)(2). 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Incorporation by 

reference, Intergovernmental relations, 

Nitrogen dioxide, Particulate Matter, 

Reporting and recordkeeping 

requirements, Volatile organic 

compounds. 

Dated: September 25, 2012. 

A. Stanley Meiburg, 

Acting Regional Administrator, Region 4. 

40 CFR part 52 is amended as follows: 

PART 52—APPROVAL AND 

PROMULGATION OF 

IMPLEMENTATION PLANS 

■ 1. The authority citation for part 52 

continues to read as follows: 

Authority: 42 U.S.C. 7401 et seq. 

Subpart Z—Mississippi 

■ 2. Section 52.1270 paragraph (e), is 

amended by adding a new entry for 

‘‘110(a)(2)(G) Infrastructure 

Requirement for the 1997 and 2006 Fine 

Particulate Matter National Ambient Air 

Quality Standards’’ at the end of the 

table to read as follows: 

§ 52.1270 Identification of plan. 

* * * * * 

(e) * * * 

EPA-APPROVED MISSISSIPPI NON-REGULATORY PROVISIONS

Name of nonregulatory SIP provision Applicable geographic 

or nonattainment area 

State submittal 

date/effective 

date 

EPA approval date Explanation 

*******

110(a)(2)(G) Infrastructure Requirement for the 

1997 and 2006 Fine Particulate Matter National Ambient Air Quality Standards.

Mississippi .................... 7/26/2012 10/9/2012 [Insert citation of publication].

[FR Doc. 2012–24628 Filed 10–5–12; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 80 

[EPA–HQ–OAR–2012–0223; FRL 9733–3] 

Regulation of Fuels and Fuel 

Additives: Modifications to Renewable 

Fuel Standard and Diesel Sulfur 

Programs 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule. 

SUMMARY: EPA is issuing this direct final 

rule to amend the definition of heating 

oil in the Renewable Fuel Standard 

(‘‘RFS’’ or ‘‘RFS2’’) program under 

section 211(o) of the Clean Air Act. This 

amendment will expand the scope of 

renewable fuels that can generate 

Renewable Identification Numbers 

(RINs) as heating oil to include fuel oil 

produced from qualifying renewable 

biomass that will be used to generate 

heat to warm buildings or other 

facilities where people live, work, 

recreate, or conduct other activities. 

Fuel oils used to generate process heat, 

power, or other functions will not be 

included in the amended definition. 

Producers or importers of fuel oil that 

meets the amended definition of heating 

oil will be allowed to generate RINs, 

provided that the fuel oil meets the 

other requirements specified in the RFS 

regulations. This amendment will not 

modify or limit fuel included in the 

current definition of heating oil. EPA is 

also amending the requirements under 

EPA’s diesel sulfur program related to 

the sulfur content of locomotive and 

marine diesel fuel produced by transmix 

processors. These amendments will 

allow locomotive and marine diesel fuel 

produced by transmix processors to 

meet a maximum 500 parts per million 

(ppm) sulfur standard provided that; the 

fuel is used in older technology 

locomotive and marine engines that do 

not require 15 ppm sulfur diesel fuel, 

the fuel is used outside of the Northeast 

Mid-Atlantic Area, and the fuel is kept 

segregated from other fuel. These 

amendments will provide significant 

regulatory relief for transmix processors 

while having a neutral or net positive 

environmental impact. EPA is also 

amending the fuel marker requirements 

for 500 ppm sulfur locomotive and 

marine (LM) diesel fuel to address an 

oversight in the original rulemaking 

where the regulations failed to 

incorporate provisions described in the 

rulemaking preamble to allow for 

solvent yellow 124 marker to transition 

out of the distribution system. 

DATES: This rule is effective on 

December 10, 2012 without further 

notice, unless EPA receives adverse 

comment or a public hearing request by 

November 8, 2012. If EPA receives a 

timely adverse comment or a hearing 

request on the rule or any specific 

portion of this rule, we will publish a 

withdrawal of the rule or a specific 

portion of the rule in the Federal 

Register informing the public that the 

rule or portions of the rule with adverse 

comment 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–2012–0223, by one of the 

following methods: 

• www.regulations.gov: Follow the 

on-line instructions for submitting 

comments. 

• Email: a-and-r-docket@epa.gov, 

Attention Air and Radiation Docket ID 

EPA–HQ–OAR–2012–0223. 

• Fax: 731–214–4051. 

• Mail: Air and Radiation Docket, 

Docket No. EPA–HQ–OAR–2012–0223, 


wreier-aviles on DSK5TPTVN1PROD with RULES
61282 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

Environmental Protection Agency, 

Mailcode: 6406J, 1200 Pennsylvania 

Avenue NW., Washington, DC 20460. 

• 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–2012– 

0223. 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–2012– 

0223. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit information that you 

consider to be CBI or otherwise 

protected through www.regulations.gov 

or email. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means EPA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an email 

comment directly to EPA without going 

through www.regulations.gov your email 

address will be automatically captured 

and included as part of the comment 

that is placed in the public docket and 

made available on the Internet. If you 

submit an electronic comment, EPA 

recommends that you include your 

name and other contact information in 

the body of your comment and with any 

disk or CD–ROM you submit. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider your comment. 

Electronic files should avoid the use of 

special characters, any form of 

encryption, and be free of any defects or 

viruses. For additional information 

about EPA’s public docket visit the EPA 

Docket Center homepage at http:// 

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

Docket: All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, (e.g., CBI or other information 

whose disclosure is restricted by 

statute). Certain other material, such as 

copyrighted material, will be publicly 

available only in hard copy. Publicly 

available docket materials are available 

either electronically in 

www.regulations.gov or in hard copy at 

the Air and Radiation Docket and 

Information Center, EPA, 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 Docket is (202) 566– 

1742. 

FOR FURTHER INFORMATION CONTACT: 

Kristien Knapp, Office of Transportation 

and Air Quality, Mail Code: 6405J, U.S. 

Environmental Protection Agency, 1200 

Pennsylvania Avenue NW., 20460; 

telephone number: (202) 343–9949; fax 

number: (202) 343–2800; email address: 

knapp.kristien@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Executive Summary 

A. Purpose 

EPA is issuing a direct final rule to 

amend provisions in the renewable fuel 

standard (RFS) and diesel sulfur fuel 

programs. The RFS amendment changes 

the definition of home heating oil, and 

the diesel sulfur amendments provide 

additional flexibility for transmix 

processors who produce locomotive and 

marine diesel fuel, and allow solvent 

yellow 124 marker to transition out of 

the distribution system. EPA is taking 

this action under section 211 of the 

Clean Air Act. 

B. Summary of Today’s Rule 

Amended Definition of Home Heating 

Oil 

This rule amends the definition of 

heating oil in 40 CFR 80.1401 in the 

renewable fuel standard (‘‘RFS’’ or 

‘‘RFS2’’) program promulgated under 

section 211(o) of the Clean Air Act 

(CAA). This amendment will expand 

the scope of renewable fuels that can 

generate Renewable Identification 

Numbers (‘‘RINs’’) as ‘‘home heating 

oil’’ to include fuel oil that will be used 

to generate heat to warm buildings or 

other facilities where people live, work, 

recreate, or conduct other activities. 

This rule will allow producers or 

importers of fuel oil that meets the 

amended definition of heating oil to 

generate RINs, provided that other 

requirements specified in the 

regulations are met. Fuel oils used to 

generate process heat, power, or other 

functions will not be approved for RIN 

generation under the amended 

definition of heating oil. The 

amendment will not modify, limit, or 

change fuel included in the current 

definition of heating oil at 40 CFR 

80.2(ccc). 

Diesel Transmix Amendments 

The diesel transmix amendments will 

reinstate an allowance for transmix 

processors to produce 500 ppm sulfur 

diesel fuel for use in older technology 

locomotive and marine diesel outside of 

the Northeast Mid-Atlantic Area after 

2014. EPA’s ocean-going vessels rule 

forbade this allowance beginning 2014 

because a new stream of diesel, 

containing up to 1000 ppm sulfur, was 

introduced at that time, which we 

believed would provide a suitable outlet 

for transmix distillate product. 

Transmix processors stated that they 

were not aware of the changes to the 

500-ppm LM transmix provisions until 

after they were finalized, and that the 

ocean-going vessels market would not 

be a viable outlet for their distillate 

product. Based on additional input that 

we received from transmix processors 

and other stakeholders in the fuel 

distribution system during our 

consideration of the petition, EPA 

believed that it would be appropriate to 

extend the 500-ppm diesel transmix 

flexibility beyond 2014. EPA finalized a 

settlement agreement and this DFR and 

NPRM are in accord with the settlement 

agreement. Our analysis indicates that 

extending this flexibility beyond 2014 

will have a neutral or net beneficial 

effect on overall emissions. 

Yellow Marker Amendments 

The yellow marker amendments 

address an oversight in the original 

nonroad diesel rulemaking. In that 

rulemaking, the regulations failed to 

incorporate provisions described in the 

rulemaking preamble. The preamble 

made clear that EPA intended to allow 

500 ppm locomotive marine (LM) diesel 

fuel containing greater than 0.10 

milligrams per liter of Solvent Yellow 

124 (SY124) time to transition out of the 

fuel distribution system. However, the 

regulations are not consistent with the 

preamble and did not provide this same 

allowance. 

Specifically, the regulations as 

currently written do not provide any 

transition time for unmarked LM fuel 

delivered from a truck loading rack 

beginning June 1, 2012 to work its way 

through the fuel distribution system 

downstream of the truck loading rack. 

The yellow marker amendments will 

allow 500 ppm LM diesel fuel at any 

point in the fuel distribution and end 

use system to contain more than 0.10 

milligrams per liter of SY 124 through 

November 30, 2012. This regulatory 

change will allow marked LM diesel 

fuel to transition normally through the 

LM fuel distribution and use system. 

Today’s rule also amends the regulation 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61283 

1The proposed rule contains all aspects of this 

direct final rule and seeks comments. Additionally, 

this document also requests comments on one issue 

that is not included in the direct final rule: whether 

the amendments to the requirements for locomotive 

and marine diesel fuel produced by transmix 

processors should be extended to fuel used inside 

the Northeast Mid-Atlantic Area. 

2The Energy Independence and Security Act 

(EISA) of 2007 amended section 211(o) of the Clean 

Air Act (CAA), which was originally added by the 

Energy Policy Act (EPAct) of 2005. 

to clarify the transition of the solvent 

yellow 124 marker out of heating oil 

beginning June 1, 2014. After December 

1, 2014, EPA will no longer have any 

requirements with respect to the use of 

the SY 124 marker. 

C. Costs and Benefits 

These three sets of amendments 

attempt to provide new opportunities 

for RIN generation under the RFS 

program and necessary flexibilities and 

transition periods for those affected by 

EPA’s transmix and marker 

requirements. Therefore, EPA believes 

that these amendments will impose no 

new direct costs or burdens on regulated 

entities beyond the minimal costs 

associated with reporting and 

recordkeeping requirements. At the 

same time, EPA does not believe that 

any of these amendments will adversely 

impact emissions. 

II. Why is EPA issuing a direct final 

rule? 

EPA is publishing this rule without a 

prior proposed rule because this may be 

viewed as a noncontroversial action that 

would not receive 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 if 

adverse comments or a hearing request 

are filed on the rule or any portion of 

the rule.1 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. 

III. 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, as well as 

those involved with the production, 

distribution and sale of other fuel oils 

that are not transportation fuel. 

Regulated categories and entities 

affected by this action include: 

Category NAICS codes a SIC codes b Examples of potentially 

regulated parties 

Industry ............................................................. 324110 2911 Petroleum refiners, importers. 

Industry ............................................................. 325193 2869 Ethyl alcohol manufacturers. 

Industry ............................................................. 325199 2869 Other basic organic chemical manufacturers. 

Industry ............................................................. Various Various Transmix Processors. 

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). 

bStandard 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. 

IV. What should I consider as I prepare 

my comments for EPA? 

A. Submitting information claimed as 

CBI. Do not submit this information to 

EPA through www.regulations.gov or 

email. Clearly mark the part or all of the 

information that you claim to be CBI. 

For CBI information in a disk or CD 

ROM that you mail to EPA, mark the 

outside of the disk or CD ROM as CBI 

and then identify electronically within 

the disk or CD ROM the specific 

information that is claimed as CBI. In 

addition to one complete version of the 

comment that includes information 

claimed as CBI, a copy of the comment 

that does not contain the information 

claimed as CBI must be submitted for 

inclusion in the public docket. 

Information so marked will not be 

disclosed except in accordance with 

procedures set forth in 40 CFR part 2. 

B. Tips for Preparing Your Comments. 

When submitting comments, remember 

to: 

• Identify the rulemaking by docket 

number and other identifying 

information (subject heading, Federal 

Register date and page number). 

• Follow directions—The agency may 

ask you to respond to specific questions 

or organize comments by referencing a 

Code of Federal Regulations (CFR) part 

or section number. 

• Explain why you agree or disagree. 

Suggest alternatives and substitute 

language for your requested changes. 

• Describe any assumptions and 

provide any technical information and/ 

or data that you used. 

• If you estimate potential costs or 

burdens, explain how you arrived at 

your estimate in sufficient detail to 

allow for it to be reproduced. 

• Provide specific examples to 

illustrate your concerns, and suggest 

alternatives. 

• Explain your views as clearly as 

possible, avoiding the use of profanity 

or personal threats. 

• 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. 

V. Amendments Under the Renewable 

Fuel Standard Program 

A. Amended Definition of Heating Oil 

EPA is issuing a direct final rule to 

amend the definition of heating oil in 40 

CFR 80.1401 in the renewable fuel 

standard (‘‘RFS’’ or ‘‘RFS2’’) program 

promulgated under section 211(o) of the 

Clean Air Act (CAA).2 This amendment 

will expand the scope of renewable 

fuels that can generate Renewable 

Identification Numbers (‘‘RINs’’) as 


wreier-aviles on DSK5TPTVN1PROD with RULES
61284 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

3 ‘‘EISA changed the definition of ‘renewable fuel’ 

to require that it be made from feedstocks that 

qualify as ‘renewable biomass.’ EISA’s definition of 

the term ‘renewable biomass’ limits the types of 

biomass as well as the types of land from which the 

biomass may be harvested.’’ Regulation of Fuels and 

Fuel Additives: Changes to Renewable Fuel 

Standard Program, 75 FR 14670, 14681 (March 26, 

2010). 

4See CAA sections 211(o)(1)(A) and (o)(5)(E). 5 75 FR 14670, 14687 (March 26, 2010). 

home heating oil to include fuel oil that 

will be used to generate heat to warm 

buildings or other facilities where 

people live, work, recreate, or conduct 

other activities. This rule will allow 

producers or importers of fuel oil that 

meets the amended definition of heating 

oil to generate RINs, provided that other 

requirements specified in the 

regulations are met. Fuel oils used to 

generate process heat, power, or other 

functions will not be approved for RIN 

generation under the amended 

definition of heating oil, as these fuels 

are not within the scope of ‘‘home 

heating oil’’ as that term is used in the 

Energy Independence and Security Act 

of 2007 (‘‘EISA’’), for the RFS program. 

The amendment will not modify or limit 

fuel included in the current definition 

of heating oil at 40 CFR 80.2(ccc). 

The RFS program requires the 

production and use of renewable fuel to 

replace or reduce the quantity of fossil 

fuel present in transportation fuel. 

Under EPA’s RFS program this is 

accomplished by providing for the 

generation of RINs by producers or 

importers of qualified renewable fuel. 

RINs are transferred to the producers or 

importers of gasoline and diesel 

transportation fuel who then use the 

RINs to demonstrate compliance with 

their renewable fuel volume obligations. 

RINs also serve the function of credits 

under the RFS program. 

Congress provided that EPA could 

also establish provisions for the 

generation of credits by producers of 

certain renewable fuel that was not used 

in transportation fuel, called ‘‘additional 

renewable fuel.’’ 3 Additional renewable 

fuel is defined as fuel that is produced 

from renewable biomass and that is 

used to replace or reduce the quantity 

of fossil fuel present in home heating oil 

or jet fuel.4 In essence, additional 

renewable fuel has to meet all of the 

requirements applicable to qualify it as 

renewable fuel under the regulations, 

with the only difference being that it is 

blended into or is home heating oil or 

jet fuel. This does not change the 

volume requirements of the statute 

itself, however this can provide an 

important additional avenue for parties 

to generate RINs for use by obligated 

parties, thus promoting the overall costeffective production and use of 

renewable fuels. 

EPA addressed the provision for 

additional renewable fuels in the RFS2 

rulemaking, specifically addressing the 

category of ‘‘home heating oil.’’ EPA 

determined that this term was 

ambiguous, and defined it by 

incorporating the existing definition of 

heating oil at 40 CFR 80.2(ccc). EPA 

stated that: 

EISA uses the term ‘‘home heating oil’’ in 

the definition of ‘‘additional renewable fuel.’’ 

The statute does not clarify whether the term 

should be interpreted to refer only to heating 

oil actually used in homes, or to all fuel of 

a type that can be used in homes. We note 

that the term ‘home heating oil’ is typically 

used in industry in the latter manner, to refer 

to a type of fuel, rather than a particular use 

of it, and the term is typically used 

interchangeably in industry with heating oil, 

heating fuel, home heating fuel, and other 

terms depending on the region and market. 

We believe this broad interpretation based on 

typical industry usage best serves the goals 

and purposes of the statute. If EPA 

interpreted the term to apply only to heating 

oil actually used in homes, we would 

necessarily require tracking of individual 

gallons from production through ultimate 

[use] in homes in order to determine 

eligibility of the fuel for RINs. Given the 

fungible nature of the oil delivery market, 

this would likely be sufficiently difficult and 

potentially expensive so as to discourage the 

generation of RINs for renewable fuels used 

as home heating oil. This problem would be 

similar to that which arose under RFS1 for 

certain renewable fuels (in particular 

biodiesel) that were produced for the 

highway diesel market but were also suitable 

for other markets such as heating oil and 

non-road applications where it was unclear 

at the time of fuel production (when RINs are 

typically generated under the RFS program) 

whether the fuel would ultimately be eligible 

to generate RINs. Congress eliminated the 

complexity with regards to non-road 

applications in RFS2 by making all fuels 

used in both motor vehicle and nonroad 

applications subject to the renewable fuel 

standard program. We believe it best to 

interpret the Act so as to also avoid this type 

of complexity in the heating oil context. 

Thus, under today’s regulations, RINs may be 

generated for renewable fuel used as ‘‘heating 

oil,’’ as defined in existing EPA regulations 

at § 80.2(ccc). In addition to simplifying 

implementation and administration of the 

Act, this interpretation will best realize the 

intent of EISA to reduce or replace the use 

of fossil fuels.5

The existing definition of heating oil 

at 40 CFR 80.2(ccc) means ‘‘any #1, #2, 

or non-petroleum diesel blend that is 

sold for use in furnaces, boilers, 

stationary diesel engines, and similar 

applications and which is commonly or 

commercially known or sold as heating 

oil, fuel oil, or similar trade names, and 

that is not jet fuel, kerosene, or [Motor 

Vehicle, Non-Road, Locomotive and 

Marine (MVNRLM)] diesel fuel.’’ The 

existing definition of non-petroleum 

diesel at 40 CFR 80.2(sss) means a diesel 

fuel that contains at least 80 percent 

mono-alkyl esters of long chain fatty 

acids derived from vegetable oils or 

animal fats. Thus, in order to generate 

RINs for home heating oil that is a nonpetroleum diesel blend, the fuel must 

contain at least 80 percent mono-alkyl 

esters of long chain fatty acids derived 

from vegetable oils or animal fats, as 

well as meeting all other requirements 

of the RFS2 regulations. Since the 

promulgation of the RFS2 final rule, we 

have received a number of requests from 

producers to consider expanding the 

scope of the home heating oil provision 

to include additional fuel oils that are 

produced from qualifying renewable 

biomass but do not meet the regulatory 

definition of heating oil because they 

are not #1 or #2 diesel and do not 

contain at least 80 percent mono-alkyl 

esters. Parties raising this issue have 

suggested that limiting ‘‘home heating 

oil’’ to the fuel types defined in 40 CFR 

80.2(ccc) disqualifies certain types of 

renewable fuel oils that could be used 

for home heating and that this limitation 

does not align with our reasoning in the 

preamble to take a broad interpretation 

of the term ‘‘home heating oil’’ in CAA 

section 211(o). 

EPA has considered this issue further 

and is revising the definition of heating 

oil in the RFS2 program to expand the 

scope of fuels that can generate RINs as 

heating oil. EPA is revising the 

definition such that RINs also may be 

generated by renewable fuel that is fuel 

oil and is used to heat interior spaces of 

homes or buildings to control ambient 

climate for human comfort. This will 

not include fuel oils used to generate 

process heat, power, or other functions. 

The fuel oil must be used to generate 

heat to warm buildings or other 

facilities where people live, work, 

recreate, or conduct other activities. The 

fuel oil must only be used in heating 

applications, where the sole purpose of 

the fuel’s use is for heating and not for 

any other combined use such as process 

energy use. We are amending the 

existing definition of heating oil in 40 

CFR 80.1401 to include fuel oils that are 

used in this way. This is in addition to 

the fuel oils currently included in the 

definition of heating oil at 40 CFR 

80.2(ccc), and will not modify or limit 

the fuel included in the current 

definition. 

EPA believes this expansion of the 

scope of the home heating oil provision 

is appropriate and authorized under 

CAA section 211(o). As EPA described 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61285 

6This is different from other renewable fuels in 

the RFS program, which are defined in terms of 

their use as transportation fuel or jet fuel. See 40 

CFR 80.1401, definitions of ‘‘renewable fuel’’ and 

‘‘transportation fuel.’’ 7See Table 1 to 40 CFR 80.1426. 

in the RFS2 final rule, Congress did not 

define the term ‘‘home heating oil,’’ and 

it does not have a fixed or definite 

commercial meaning. In the RFS2 final 

rulemaking, EPA focused on whether 

the provision was limited to heating oil 

actually used in homes. EPA noted that 

the term home heating oil is usually 

used in the industry to refer to one type 

of fuel, and not to a specific use for the 

fuel. Given this more general usage of 

the term, and the practical barriers that 

would have arisen if the term was 

defined as fuel actually used to heat 

homes, EPA defined the scope of home 

heating oil in a more specific fashion by 

identifying those types of fuel oils that 

are typically used to heat homes. EPA 

determined this was a reasonable 

interpretation of an ambiguous statutory 

provision that simplified 

implementation and administration of 

the Act and promoted achievement of 

the goals of the RFS program. 

In the RFS2 rulemaking, EPA focused 

on the kinds of fuel oils that can be used 

to heat homes. The expansion of the 

definition adopted in this rulemaking 

will address two types of fuel oils not 

included in the current definition of 

heating oil. First, the amended 

definition will include additional fuel 

oils that are actually used to heat 

homes, even if they do not meet the 

current definition of heating oil. This is 

clearly within the scope of the statutory 

provision for home heating oil. 

Second, the amended definition will 

include fuel oils that are used to heat 

facilities other than homes to control 

ambient climate for human comfort. 

Under the current definition of heating 

oil, a fuel oil meets the definition based 

on its physical properties and its use in 

furnaces, boilers, stationary diesel 

engines, and similar applications, not 

whether it is actually used to heat a 

home. The basic decision made in the 

RFS2 final rulemaking was to allow RIN 

generation for the group of fuel oils that 

are typically used for home heating 

purposes. Under the current definition 

the relationship of the fuel oil to heating 

homes is that the fuel oil is of the type 

that is typically used for and can be 

used for that purpose.6

In the amended definition, qualifying 

fuel oils will be used for heating places 

where people live, work, or recreate, 

and not just their homes. It focuses more 

on what is getting heated—people—and 

not where the people are located. EPA 

believes this is a reasonable 

interpretation of the phrase ‘‘home 

heating oil,’’ while recognizing that it is 

not an obvious interpretation. This 

interpretation recognizes the ambiguity 

of the phrase used by Congress, which 

is not defined and does not have a clear 

and definite commercial meaning. It 

gives reasonable meaning to the term 

home heating oil, by limiting the 

additional fuel oils to fuel oils when 

used for heating of facilities that people 

will occupy, and excluding fuel oils 

when used for other purposes such as 

generation of energy used in the 

manufacture of products. It also focuses 

on the aspect of home that is important 

here—the heating of people— 

recognizing that EPA has already 

determined that fuel oil can be included 

in the scope of home heating oil even if 

it is not actually used to heat a home. 

This interpretation will also promote 

the purposes of the EISA and the RFS 

program. It will promote the purposes of 

the EISA in that it will increase the 

production and use of renewable fuels 

by introducing new sources of fuel 

producers to the RFS program. It will 

specifically promote the RFS 

programmatic goals by facilitating the 

generation of RINs for renewable fuels 

that reduce emissions of greenhouse 

gases compared to fossil fuels. For 

example, EPA has received information 

from Envergent Technologies (alliance 

of Ensyn and UOP/Honeywell) that such 

an expanded definition of heating oil 

would result in nearly immediate 

production of 3.5 million gallons from 

their existing facilities, with an 

additional projected production of up to 

45 million gallons per year within 24 

months following regulatory action. 

Based on this information from 

Envergent Technologies, application of 

the expanded definition of heating oil to 

the entire industry would result in the 

production of many more million 

additional gallons of renewable fuel. 

B. Lifecycle Greenhouse Gas Assessment 

of the Amended Definition of Heating 

Oil 

EPA has also evaluated whether any 

revisions will need to be made to Table 

1 to 40 CFR 80.1426 that lists the 

applicable D codes for each fuel 

pathway for use in generating RINs in 

the RFS2 regulations in light of the 

additional fuel oils included in the 

expanded definition of heating oil. As 

discussed below, EPA has determined 

that the applicable D code entries for 

heating oil in Table 1 to 40 CFR 80.1426 

will continue to be appropriate and will 

not need to be revised in light of the 

expanded definition of heating oil. 

Under the RFS program, EPA must 

assess lifecycle greenhouse gas (GHG) 

emissions to determine which fuel 

pathways meet the GHG reduction 

thresholds for the four required 

renewable fuel categories. The RFS 

program requires a 20% reduction in 

lifecycle GHG emissions for 

conventional renewable fuel (except for 

grandfathered facilities and volumes), a 

50% reduction for biomass-based diesel 

or advanced biofuel, and a 60% 

reduction for cellulosic biofuel. For the 

final RFS2 rule, EPA assessed the 

lifecycle greenhouse gas emissions of 

multiple renewable fuel pathways and 

classified pathways based on these GHG 

thresholds, as compared to the EISA 

statutory baseline.7 In addition, EPA has 

added several pathways since the final 

rule was published. Expanding the 

definition of heating oil does not affect 

these prior analyses. 

The fuel pathways consist of fuel 

type, feedstock, and production process 

requirements. GHG emissions are 

assessed at all points throughout the 

lifecycle pathway. For instance, 

emissions associated with sowing and 

harvesting of feedstocks and in the 

production, distribution and use of the 

renewable fuel are examples of what are 

accounted for in the GHG assessment. A 

full accounting of emissions is then 

compared with the petroleum baseline 

emissions for the transportation fuel 

being replaced. The lifecycle GHG 

emissions determination is one factor 

used to determine compliance with the 

regulations. 

There are currently several fuel 

pathways that list heating oil as a fuel 

type with various types of feedstock and 

production processes used, qualifying 

the heating oil pathways as either 

biomass-based diesel, advanced, or 

cellulosic. The determinations for these 

different pathways were based on the 

current definition of heating oil. The 

pathways also include several types of 

distillate product including diesel fuel, 

jet fuel and heating oil. 

The lifecycle calculations and 

threshold determinations are based on 

the GHG emissions associated with 

production of the fuel and processing of 

the feedstock. Converting biomass 

feedstocks such as triglycerides (if oils 

are used as feedstock) or hemi-cellulose, 

cellulose, lignin, starches, etc. (if solid 

biomass feedstock is used) into heating 

oil products and can be accomplished 

through either a biochemical or 

thermochemical process converting 

those molecules into a fuel product. The 

existing heating oil pathways were 

based on the current definition of the 

fuel, and were based on a certain level 

of processing to produce #1, #2, or a 

non-petroleum diesel blend and the 


wreier-aviles on DSK5TPTVN1PROD with RULES
61286 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

8This describes the Fischer-Tropsch process. 

Other processes rely on forming different sets of 

compounds from the biomass, and then producing 

the fuel product from the set of compounds. 

9 ‘‘Regulation of Fuel and Fuel Additives; 

Changes to Renewable Fuel Standard Program,’’ 75 

FR 14670, available at http://www.gpo.gov/fdsys/ 

pkg/FR-2010-03-26/pdf/2010–3851.pdf. See also, 

EPA’s summary factsheet, ‘‘EPA Lifecycle Analysis 

of Greenhouse Gas Emissions from Renewable 

Fuels,’’ available at http://www.epa.gov/otaq/ 

renewablefuels/420f10006.pdf. 

related energy use and GHG emissions 

that were part of the lifecycle 

determination for those fuel pathways. 

The main difference between the 

current definition of heating oil, which 

refers to #1, #2, or a non-petroleum 

diesel blend, and the expanded 

definition adopted in this rulemaking is 

that the expanded definition will 

include heavier types of fuel oil with 

larger molecules. Based on the type of 

conversion process, producing these 

heavier fuel oil products versus the #1, 

#2, or a non-petroleum diesel blend will 

affect the amount of energy used and 

therefore the GHG emissions from the 

process. There are two main paths for 

producing a fuel oil product from 

biomass. In one the biomass is 

converted into a biocrude which is 

further refined into lighter products. In 

this case producing a heavier fuel oil 

product will require less processing 

energy and have lower GHG emissions 

than converting the same feedstock into 

a #1, #2, or non-petroleum diesel blend. 

In the other type of process the 

compounds in the biomass are changed 

into a set of intermediary products, such 

as hydrogen (H) and carbon monoxide 

(CO).8 These compounds are then either 

catalytically or biochemically converted 

into the fuel product. In this case, the 

vast majority of the energy is associated 

with breaking down the feedstock into 

the set of intermediary compounds. The 

process used and the energy needed for 

it does not vary based on the type of fuel 

that is then produced from these 

intermediary compounds. The type of 

fuel could affect the type of catalyst or 

biological process used to change the 

intermediary compounds into the fuel 

product, but based on EPA calculations 

and assessments developed as part of 

the RFS2 rulemaking,9 this will have no 

real impact on the energy used or the 

GHG emissions associated with 

converting the biomass into a different 

fuel product. 

Based on these considerations, EPA 

believes the GHG emissions associated 

with producing the fuel oil included in 

the expanded definition will be the 

same or lower than the GHG emissions 

associated with producing #1, #2, or 

non-petroleum diesel blend. Therefore, 

EPA believes the prior life cycle 

analysis for heating oil support applying 

the existing pathways for fuel oil in the 

RFS2 regulations to the expanded 

definition of heating oil. Once the 

regulatory change to the definition of 

‘‘heating oil’’ is final, all of the 

pathways currently applicable to 

heating oil under Table 1 to 40 CFR 

§ 80.1426 would apply to the expanded 

definition of heating oil. 

C. Additional Registration, Reporting, 

Product Transfer Document, and 

Recordkeeping Requirements 

1. Additional Requirements for the 

Amended Definition of Heating Oil 

An important issue to address is how 

to implement such an expanded 

definition. As EPA recognized in the 

RFS2 rulemaking, fuel oils end up being 

used in a variety of different uses, where 

the fuel producer may have little 

knowledge at the time of production as 

to eventual use of the fuel. This is 

especially the case where the fuel oil is 

distributed in a fungible distribution 

system. EPA addressed this in the RSF2 

rulemaking by defining home heating 

oil as a type of fuel with certain 

characteristics, irrespective of where it 

was used. This approach avoided the 

need to track the fuel to its actual use, 

and including the characteristics of the 

fuel in its definition in 40 CFR 80.1401, 

was adequate to retain a close tie to the 

concept underlying home heating oil. 

The expansion of the definition raises 

this same issue but in a more significant 

way. While the expansion of the 

definition includes some limited 

physical characteristics that fuels oils 

will need to meet in order to qualify for 

generating RINs, it does not provide 

sufficient specificity to differentiate 

between those fuels oils used to heat 

buildings for climate control for human 

comfort and those used to generate 

process heat or other purposes. 

Therefore, for eligible fuel oils other 

than those qualifying under the existing 

definition in 40 CFR 80.2(ccc), EPA is 

requiring that the renewable fuel 

producer or importer have adequate 

documentation to demonstrate that the 

fuel oil volume for which RINs were 

generated was used to heat buildings for 

climate control for human comfort and 

meets the expanded definition of 

heating oil prior to generating RINs. 

EPA recognizes that under the current 

definition of heating oil no tracking or 

other documentation of end use is 

required, and some heating oils that 

meet the current definition could end 

up being used for other purposes. 

However, in all cases the heating oil 

under the current definition has to have 

the physical or other characteristics that 

tie it to the type of fuel oil used to heat 

homes. In addition, because these fuel 

oils will qualify to generate RINs under 

the RFS program, it will likely lead to 

their use for heating of buildings, and 

not for generation of process heat. For 

the fuel oils included in the expanded 

definition, the tie to home heating oil 

will not be the physical characteristics 

of the fuel oil but instead its actual 

usage for heating for the purposes of 

climate control for human comfort. 

In order to verify that the fuel oils are 

actually used to generate heat for 

climate control purposes, EPA is 

adopting the following registration, 

recordkeeping, product transfer 

document (PTD) and reporting 

requirements. These requirements will 

not apply to fuels qualifying under the 

existing 40 CFR 80.2(ccc) of the 

regulations. If RINs are generated for 

fuel oils under the expansion of the 

scope of home heating oil in today’s 

rule, and those fuel oils are designated 

for but not actually used to generate 

heat for climate control purposes, but 

for some other purpose, all parties 

involved in either the generation, 

assignment, transfer or use of that RIN, 

including the end user of that fuel oil, 

are subject to and liable for violations of 

the RFS2 regulations and the CAA. 

a. Registration 

For the purpose of registration, EPA is 

allowing the producer of the expanded 

fuel oil types to establish their facility’s 

baseline volume in the same manner as 

all other producers under the RFS 

program, e.g., based on the facility’s 

permitted capacity or actual peak 

capacity. Additionally though, we are 

requiring producers of the expanded 

fuel oil types to submit affidavits in 

support of their registration, including a 

statement that the fuel will be used for 

the purposes of heating interior spaces 

of homes or buildings to control 

ambient climate for human comfort, and 

no other purpose. We also require that 

producers submit secondary affidavits 

from the existing end users to verify that 

the fuel is actually being used for a 

qualifying purpose. We are also 

adopting new reporting, product 

transfer documents (PTD), and 

recordkeeping requirements discussed 

below that will be used as a means for 

verification that the qualifying fuel is 

being used in an approved application. 

These requirements are necessary to 

assure confidence that the fuel used to 

generate RINs is actually used for a 

qualifying purpose because these types 

of fuel have not previously been used as 

heating oil, and are not readily 

identifiable by their physical 

characteristics. Without such 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61287 

10EPA does not expect that the expanded 

definition of home heating oil will result in an 

obligation on home owners or small businesses. 

Based on our analysis of the market, qualifying fuel 

oil is expected to be used in large industrial settings 

or apartment buildings, not in individual homes. 

Therefore, EPA anticipates that the information it 

is requiring would be readily available and 

producible by these entities. 

11 69 FR 38958 (June 24, 2004). 

12 75 FR 22896 (April 30, 2010). 

safeguards, EPA could not be confident 

that the fuel is used as heating oil, and 

end users might not have adequate 

notice that the fuel must be used as 

heating oil. EPA believes these 

requirements will place a small burden 

on producers and end users, and greatly 

benefit the integrity of the program. 

b. Reporting, Product Transfer 

Documents and Recordkeeping 

Requirements 

For the purpose of continued 

verification after registration, EPA is 

adopting additional requirements for 

reporting in § 80.1451(b)(1)(ii)(T), PTDs 

in § 80.1453(d), and recordkeeping in 40 

CFR 80.1454(b), for the expanded fuel 

oil types. 

The reporting, PTD, and 

recordkeeping requirements will help 

ensure that the expanded fuel oil types 

that are used to generate RINs are 

actually used in a qualifying 

application. For reporting, producers are 

required to file quarterly reports with 

EPA that identify certain information 

about the volume of fuel oil produced 

and used as heating oil. The additional 

reporting requirements stipulate that the 

producer of fuel oils submit affidavits to 

EPA reporting the total quantity of the 

fuel oils produced, the total quantity of 

the fuel oils sold to end users, and the 

total quantity of fuel oils sold to end 

users for which RINs were generated. 

Additionally, affidavits from each end 

user must be obtained by the producer 

and reported to EPA, describing the 

total quantity of fuel oils received from 

the producer, the total amount of fuel 

oil used for qualifying purposes, the 

date the fuel oil was received from the 

producer, the blend level of the fuel oil, 

quantity of assigned RINs received with 

the renewable fuel, and quantity of 

assigned RINs that the end user 

separated from the renewable fuel, if 

applicable.10 The additional product 

transfer document requirement 

associated with the expanded definition 

of heating oil is that a PTD must be 

prepared and maintained between the 

fuel oil producer and the final end user 

for the legal transfer of title or custody 

of a specific volume of fuel oil that is 

designated for use, and is actually used, 

only for the purpose of heating interior 

spaces of buildings to control ambient 

climate for human comfort. This 

additional PTD requirement requires 

that the PTD used to transfer ownership 

or custody of the renewable fuel must 

contain the statement: ‘‘This volume of 

renewable fuel is designated and 

intended to be used to heat interior 

spaces of homes or buildings to control 

ambient climate for human comfort. Do 

NOT use for process heat or any other 

purpose, pursuant to 40 CFR 

§ 80.1460(g).’’ EPA believes that this 

PTD requirement will help to ensure 

that each gallon of fuel oil that is 

transferred from the producer to the end 

user is used for qualifying purposes 

under the expanded definition of 

heating oil. If the fuel oil is sent to the 

end user, but the fuel oil is not actually 

used to generate heat for climate control 

purposes, but for some other nonqualifying purpose, then the RINs that 

were generated for that fuel oil must be 

immediately retired and reported under 

40 CFR 80.1451. The additional 

recordkeeping requirement is that 

producers are required to keep copies of 

the contracts which describe the fuel oil 

under contract with each end user. 

Consistent with existing regulations, 

producers are required to maintain all 

documents and records submitted for 

registration, reporting, and PTDs as part 

of the producer’s recordkeeping 

requirements. EPA believes the 

producer’s maintenance of these records 

will allow for continued tracking and 

verification that the end use of the fuel 

oil is in compliance with the expanded 

definition of heating oil. 

D. Additional Requirement for RIN 

Generation 

We are also amending the regulatory 

text that describes the general 

requirements for how RINs are 

generated and assigned to batches of 

renewable fuel by renewable fuel 

producers and importers. This will 

explicitly clarify a requirement that 

always existed: that producers and 

importer of renewable fuel who generate 

RINs must comply with the registration 

requirements of 40 CFR 80.1450, the 

reporting requirements of 40 CFR 

80.1451, the recordkeeping 

requirements of 40 CFR 80.1454, and all 

other applicable regulations of this 

subpart M. This is a generally applicable 

requirement—not specific to fuel 

meeting the definition of home heating 

oil. See amended section 

80.1426(a)(1)(iii). 

VI. Amendments Related to Transmix 

The final regulations for the nonroad 

diesel program were published in the 

Federal Register on June 24, 2004.11

The provisions in the nonroad diesel 

rule related to transmix processors were 

modified by the Category 3 Marine 

diesel final rule that was published on 

April 30, 2010.12 This action amends 

the requirements for diesel fuel 

produced by transmix processors. Below 

is a table listing the provisions that we 

are amending. The following sections 

provide a discussion of these 

amendments. 

Proposed amendments to the 

diesel program section Description 

80.511(b)(4) .................................... Amended to allow for the production and sale of 500 ppm locomotive and marine (LM) diesel fuel produced from transmix past 2014. 

80.513 (entire section) .................... Amended to allow for the production and sale of 500 ppm LM diesel fuel produced from transmix past 

2014. 

80.572(d) ......................................... Amended to extend 500 ppm LM diesel fuel label past 2012. 

80.597(d)(3)(ii) ................................ Amended to include 500 ppm LM diesel fuel in the list of fuels that an entity may deliver or receive custody 

of past June 1, 2014. 


wreier-aviles on DSK5TPTVN1PROD with RULES
61288 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

13Control of Emissions of Air Pollution from 

Nonroad Diesel Engines and Fuel, Final Rule, 69 FR 

38958 (June 24, 2004). 

14As discussed in the original nonroad diesel 

rulemaking, as LM equipment is retired from 

service, the market for 500 ppm LM will gradually 

diminish and eventually disappear. Given the long 

lifetime of LM equipment (in many cases 40 years 

or more), we anticipate that a market for 500 ppm 

LM will remain for a significant amount of time. 

This phase-out time will also allow transmix 

processors to transition to their >15ppm sulfur 

distillate product to other markets (C3 marine, 

heating oil, process heat). It may also allow 

sufficient time for the introduction of 

desulfurization equipment that is suitable for use at 

transmix processing facilities. 

15The NEMA area is defined in 40 CFR 

80.510(g)(1) as follows: (1) Northeast/Mid-Atlantic 

Area, which includes the following States and 

counties, through May 31, 2014: North Carolina, 

Virginia, Maryland, Delaware, New Jersey, 

Connecticut, Rhode Island, Massachusetts, 

Vermont, New Hampshire, Maine, Washington DC, 

New York (except for the counties of Chautauqua, 

Cattaraugus, and Allegany), Pennsylvania (except 

for the counties of Erie, Warren, McKean, Potter, 

Cameron, Elk, Jefferson, Clarion, Forest, Venango, 

Mercer, Crawford, Lawrence, Beaver, Washington, 

and Greene), and the eight eastern-most counties of 

West Virginia (Jefferson, Berkeley, Morgan, 

Hampshire, Mineral, Hardy, Grant, and Pendleton). 

16This included the now-completed phase-in of 

15 ppm highway diesel fuel and 15 ppm nonroad 

diesel fuel as well as the phase-out of the small 

refiner and credits provisions for LM diesel fuel 

that will be completed in 2014. 

17Control of Emissions From New Marine 

Compression-Ignition Engines at or Above 30 Liters 

per Cylinder; Proposed Rule, 74 FR 44442 (August 

28, 2009). 

18Control of Emissions From New Marine 

Compression-Ignition Engines at or Above 30 Liters 

per Cylinder; Final Rule, 75 FR 22896 (April 30, 

2010). 

19 ‘‘Petition to Reconsider Final Rule: Control of 

Emissions from New Marine Compression Ignition 

Engines at or Above 30 Liters per Cylinder; Final 

Rule,’’ 75 FR 22,896 (April 30, 2010), Letter to EPA 

Administrator Lisa Jackson dated June 29, 2010, 

from Chet Thompson of Crowell and Moring LLP, 

on behalf of Allied Energy Company, Gladieux 

Trading and Marketing, Insight Equity Acquisition 

Partners, LP, Liquid Titan, LLC, and Seaport 

Refining and Environmental, LLC. 

20Petition for Review, United States Court of 

Appeals for the District of Columbia Circuit, 

Petitioners, Allied Energy Company, Gladieux 

Trading and Marketing, Insight Equity Acquisition 

Partners, LP, LiquidTitan, LLC, and Seaport 

Refining and Environmental LLC, v. Respondent, 

U.S. Environmental Protection Agency, Case 10– 

1146, Document 1252640, Filed 06/29/2010. 

A. Extension of the Diesel Transmix 

Provisions Outside of the Northeast 

Mid-Atlantic Area and Alaska Beyond 

2014 

Batches of different fuel products 

commonly abut each other as they are 

shipped in sequence by pipeline. When 

the mixture between two adjacent 

products is not compatible with either 

product, it is removed from the pipeline 

and segregated as transmix. Transmix 

typically is gathered for reprocessing at 

the end of the fuel distribution system 

far from a refinery. In addition to the 

long transportation distances to return 

transmix to a refinery for reprocessing, 

incorporating transmix into a refinery’s 

feed also presents technical and 

logistical refining process challenges 

that typically make refinery 

reprocessing an unattractive option. 

Thus, transmix processers provide a 

valuable service in maintaining an 

efficient fuel distribution system. 

Transmix processing facilities handle 

very low volumes of fuel compared to 

a refinery and hence are limited to the 

use of a simple distillation tower and 

additional blendstocks to manufacture 

finished fuels. There is currently no 

desulfurization equipment which has 

been demonstrated to be suitable for 

application at a transmix processor 

facility. The cost of installing and 

operating a currently available 

desulfurization unit is too high in 

relation to the small volume of distillate 

fuel produced at transmix processing 

facilities. Some products shipped by 

pipeline such as jet fuel and heating oil 

are subject to relatively high sulfur 

specifications (e.g., maximum 3,000 

ppm for jet fuel). The presence of such 

high sulfur products in multi-product 

pipelines and consequently in transmix 

constrains the ability of transmix 

processors to produce a low sulfur 

distillate product. 

The engine emission standards 

finalized in the nonroad diesel 

rulemaking for new nonroad, 

locomotive, and Category 1 & 2 (C1 & 

C2) marine engines necessitates the use 

of sulfur-sensitive emissions control 

equipment which requires 15 ppm 

sulfur diesel fuel to function properly.13

Accordingly, the nonroad rule required 

that nonroad, locomotive and marine 

(NRLM) diesel fuel must meet a 15 ppm 

sulfur standard in parallel with the 

introduction of new sulfur-sensitive 

emission control technology to NRLM 

equipment. Beginning June 1, 2014, the 

nonroad diesel rule required that all 

NRLM diesel fuel produced by refiners 

and importers must meet a 15 ppm 

sulfur standard. The nonroad diesel rule 

included special provisions to allow the 

continued use of 500 ppm sulfur 

locomotive and marine (LM) diesel fuel 

produced from transmix beyond 2014 in 

older technology engines as long as such 

engines remained in the in-use fleet. 

These provisions along with other now 

expired flexibilities in the diesel 

program were designed to minimize and 

postpone the impacts on transmix 

processors of transitioning to a 

condition where all highway, nonroad, 

locomotive, and marine diesel engines 

can only operate on 15 ppm diesel 

fuel.14 The 500 ppm LM diesel transmix 

provisions were limited to areas outside 

of the Northeast Mid-Atlantic Area 

(NEMA) and Alaska because it was 

judged that the heating oil market in 

these areas would provide a sufficient 

outlet for transmix distillate in these 

areas.15 Excluding the NEMA area and 

Alaska also allowed us to exempt the 

NEMA area and Alaska from the fuel 

marker provisions that are a part of the 

compliance assurance regime. The 

continuation of the 500 ppm LM diesel 

transmix provisions beyond 2014 

(finalized in the nonroad rule) was 

supported by ongoing recordkeeping, 

reporting, and fuel marker provisions 

that were established to facilitate 

enforcement during the phase in of the 

diesel sulfur program.16

In the development of the proposed 

requirements for Category 3 (C3) marine 

engines, EPA worked with industry to 

evaluate how the enforcement 

provisions for the new 1,000-ppm C3 

marine diesel fuel to be introduced in 

June of 2014 could be incorporated into 

existing diesel program provisions.17

Our assessment based on input from 

industry at the time indicated that 

incorporating the new C3 marine fuel 

into the diesel program enforcement 

mechanisms while preserving the 500 

ppm diesel transmix flexibility could 

not be accomplished without retaining 

significant existing burdens and 

introducing new burdens on a broad 

number of regulated parties. We also 

concluded that the new C3 marine 

diesel market would provide a sufficient 

outlet for transmix processors distillate 

product in place of the 500 ppm LM 

diesel market. Thus, we believed the 

500 ppm LM diesel transmix flexibility 

would no longer be needed after 2014. 

Hence, we requested comment on 

whether we should eliminate the 500 

ppm LM transmix provisions in parallel 

with the implementation of the C3 

marine diesel sulfur requirement. This 

approach allowed for a significant 

reduction in the regulatory burden on a 

large number of industry stakeholders 

through the retirement of the diesel 

program’s designate-and-track and fuel 

marker requirements. All of the 

comments that we received on the 

proposed rule were supportive of the 

approach. Consequently, we finalized 

the approach in the C3 marine final rule 

that was published on April 30, 2010.18

EPA received a petition from a group 

of transmix processors on June 29, 2010, 

requesting that the Agency reconsider 

and reverse the 2014 sunset date for the 

500 ppm LM transmix flexibility.19 A 

parallel petition for judicial review was 

filed with the U.S. Court of Appeals, DC 

Circuit.20 The transmix processors 

stated that they were not aware of the 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61289 

21Notice of Proposed Settlement Agreement; 

Request for Public Comment, 76 FR 56194 

(September 12, 2011). 

22This is based on our review of data on the 

sulfur levels of transmix distillate product from 

various transmix processors. 

23Based on information provided by transmix 

processors, we estimate that approximately 750 

million gallons per year of transmix is produced 

annually and that 2⁄3 of the transmix-derived 

product is distillate fuel and 1⁄3 is gasoline. 

24Sulfate PM was converted to PM2.5 to allow a 

comparison with PM2.5 from increased fuel 

transport emissions. 

25There is no ability to ship transmix distillate 

product to the C3 marine diesel market by pipeline. 

26 In the 2011 edition of ‘‘Railroad Facts,’’ the 

Association of American Railroads reported that in 

2010 approximately 35% of the locomotive fleet 

was at least 21 years old. 27See 40 CFR 80.554(a)(4). 

changes to the 500 ppm LM transmix 

provisions until after they were 

finalized. The petitioners also stated 

that they believe that the C3 marine 

market would not be a viable outlet for 

their distillate product given the 

increased distribution costs compared to 

the 500 ppm LM market. Based on the 

additional input that we received from 

transmix processors and other 

stakeholders in the fuel distribution 

system during our consideration of the 

petition, EPA believes that while the 

increased costs for transportation of 

transmix distillate product could be 

accommodated, there is no compelling 

reason not to extend the 500 ppm diesel 

transmix flexibility beyond 2014 if such 

costs can be avoided or deferred without 

affecting the benefits from the diesel 

sulfur program. A settlement agreement 

has been finalized between EPA and the 

petitioners under which EPA would 

propose regulatory changes to 

reintroduce the 500 ppm LM transmix 

diesel flexibility for legacy LM 

equipment.21 The amendments to the 

diesel transmix provisions contained in 

today’s action are in accord with the 

settlement agreement. 

Our analysis indicates that extending 

the 500 ppm LM flexibility beyond 2014 

would have a neutral or net beneficial 

effect on overall vehicle emissions. The 

use of 500 ppm LM from transmix 

would be limited to older technology 

engines that do not possess sulfursensitive emissions control technology. 

We believe that the 500 ppm LM 

segregation and other associated 

requirements would prevent misfueling 

of sulfur-sensitive engines. 

To evaluate the environmental 

consequences of extending the diesel 

transmix provisions, we compared the 

potential increase in sulfate particulate 

matter (PM) from the use of 500 ppm 

LM from transmix in older engines to 

the additional transportation emissions 

associated with shipment to the 

Category 3 (C3) marine market which 

might be deferred by allowing 

continued access to the 500 ppm LM 

market. Markets for locomotive and 

marine diesel tend to be nearer to 

transmix processing facilities than 

markets for C3 marine diesel. Therefore, 

extending the diesel transmix 

provisions would result in a reduction 

in nitrogen oxides (NOX), volatile 

organic compounds (VOCs), carbon 

monoxide (CO), as well as PM emissions 

that would otherwise be associated with 

transporting transmix distillate product 

to the more distant C3 market. 

Although some batches of transmix 

distillate product may approach the 500 

ppm sulfur limit, we estimate that the 

average sulfur content of transmix 

distillate product would be no more 

than 300 ppm.22 We estimate that 

approximately 500 million gallons of 

distillate fuel per year is produced from 

transmix.23 Assuming that all of the 

transmix distillate product would be 

used as 500 ppm LM in older engines, 

we estimate that an additional 70 tons 

of sulfate PM would be produced 

annually compared to the use of 15 ppm 

diesel fuel.24 We believe that a 

substantial fraction of transmix distillate 

product would be used as heating oil 

and C3 diesel fuel regardless of whether 

the diesel transmix provisions are 

extended. Also, as the older LM engines 

are retired from service, the size of the 

potential 500 ppm LM market will 

diminish until all LM engines must use 

15 ppm diesel fuel. Therefore, assuming 

that all transmix distillate product 

would be used as 500 ppm LM provides 

an upper bound estimate of the 

potential impact on PM emissions. We 

estimate on average that transmix 

processors would need to ship their 

transmix distillate product an additional 

150 miles by tank truck to reach the C3 

Emission Control Area (ECA) marine 

market as compared to the 500 ppm LM 

market.25 This would result in an 

additional 80 tons of PM emissions 

annually. Thus, the PM emissions 

associated with transport to the C3 

marine market are roughly equal to the 

increased sulfate PM emissions 

associated with the continued use of 

500 ppm LM. We estimate that the 

increased transport distances could also 

result in an additional 2,200 tons of 

NOX, 220 tons of VOC, and 650 tons of 

CO annually. Based on the above 

discussion, we believe that the 

extension of the 500 ppm LM provisions 

beyond 2014 outside the NEMA area 

and Alaska would have a neutral or net 

positive environmental impact. 

The extension of the 500 ppm LM 

transmix flexibility would defer 

additional transportation costs and 

provide a lower-cost fuel for use in 

older LM engines for many years to 

come given that the useful life of LM 

engines can exceed 40 years.26

Therefore, extending this flexibility 

would reduce the overall burden on 

industry of compliance with EPA’s 

diesel sulfur program. Providing 

additional time for transmix processors 

to evaluate how the C3 ECA marine 

market will develop after 2014 would 

also facilitate a smoother transition for 

transmix processors from the 500 ppm 

LM market as it gradually disappears 

due to fleet turnover. 

B. Revised Diesel Transmix Provisions 

Industry stakeholders suggested 

alternative enforcement mechanisms to 

support the extended flexibility which 

would not necessitate reinstating and 

expanding the designate-and-track and 

fuel marker provisions that were retired 

by the C3 marine final rule. 

Reinstatement and expansion of these 

provisions would likely place an 

unacceptable burden on a large number 

of stakeholders, most of whom would 

not handle 500 ppm LM. The suggested 

alternative enforcement mechanism 

would impose minimal additional 

reporting and recordkeeping burdens 

only on the parties that produce, 

handle, and use 500 ppm LM. We 

believe that this alternative enforcement 

approach would meet the Agency’s 

goals of ensuring that the pool of 500 

ppm LM is limited to transmix distillate 

and that 500 ppm LM is not used in 

sulfur-sensitive emissions control 

equipment. 

The compliance assurance provisions 

that we are using to support the 

extension of the diesel transmix 

flexibility are similar to those that were 

used to support the small refiner 

flexibilities in Alaska during the phasein of EPA’s diesel sulfur program.27 In 

addition to registering as a refiner and 

certifying that each batch of fuel 

complies with the fuel quality 

requirements for 500 ppm LM diesel 

fuel, producers of 500 ppm transmix 

distillate product would be required to 

submit a compliance plan for approval 

by EPA. This compliance plan would 

provide details on how the 500 ppm LM 

would be segregated through to the 

ultimate consumer and its use limited to 

the legacy LM fleet. The plan would be 

required to identify the entities that 

would handle the fuel and the means of 

segregation. We believe that it is 

appropriate to limit the number of 

entities that would be allowed to handle 

the fuel between the producer and the 

ultimate consumer in order to facilitate 


wreier-aviles on DSK5TPTVN1PROD with RULES
61290 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

28An entity is defined as any company that takes 

custody of 500 ppm LM diesel fuel. 

29 In most cases, fewer entities would take 

custody of the product. In many cases, only a single 

entity (a tank truck operator) would be in the 

distribution chain between the transmix processor 

and the ultimate consumer. However, we 

understand that as many as 4 separate entities may 

handle the product between the producer and 

ultimate consumer if it is shipped by pipeline: the 

tank truck operator to ship the product from the 

producer to the pipeline, the pipeline operator, the 

product terminal that receives the fuel from the 

pipeline, and another tank truck operator to ship 

the product to the ultimate consumer from the 

terminal. 

30 500 ppm LM diesel fuel is shipped by a short 

dedicated pipeline from a product terminal to a 

locomotive refueling facility. 

31 ‘‘Control of Emissions for Air Pollution From 

Nonroad Diesel Engines and Fuel; Final Rule,’’ 

Section V.C.1.c., ‘‘The Period From June 1, 2012 

Through May 31, 2014, 69 FR 39083, 39084 (June 

29, 2004). 

EPA’s compliance assurance 

activities.28 Based on conversations 

with transmix processors, we believe 

that specifying that no more than 4 

separate entities handle the fuel 

between the producer and the ultimate 

consumer would not hinder the ability 

to distribute the fuel.29 The plan would 

need to identify the ultimate consumers 

and include information on how the 

product would be prevented from being 

used in sulfur-sensitive equipment. 

We understand that some transmix 

processors currently rely on shipment 

by pipeline to reach the 500 ppm 

locomotive diesel market.30 As a result, 

the regulations allow 500 ppm LM to be 

shipped by pipeline provided that it 

does not come into contact with 

distillate products that have a sulfur 

content greater than 15 ppm. The 

compliance plan would need to include 

information from the pipeline operator 

regarding how this segregation would be 

maintained. Discussions with transmix 

processors indicate that this 

requirement would not limit their 

ability to ship 500 ppm LM by pipeline. 

If 500 ppm LM was shipped by pipeline 

abutting 15 ppm diesel, the volume of 

500 ppm LM delivered would likely be 

slightly greater than that which was 

introduced into the pipeline as a 

consequence of cutting the pipeline 

interface between the two fuel batches 

into the 500 ppm LM batch. This small 

increase in 500 ppm LM volume would 

be acceptable. 

To provide an additional safeguard to 

ensure that volume of 500 ppm LM 

diesel fuel does not swell 

inappropriately, the volume increase 

during any single pipeline shipment 

must be limited to 2 volume percent or 

less. This limitation on volume swell to 

2 volume percent or less is consistent 

with the limitation in 40 CFR 80.599 

(b)(5) regarding the allowed swell in 

volume during the shipment of highway 

diesel fuel for the purposes of the 

determination of compliance with the 

now expired volume balance 

requirements under 40 CFR 

80.598(b)(9)(vii)(B). Industry did not 

object to this requirement, and 

therefore, we believe that limiting the 

volume swell of 500 ppm LM diesel fuel 

during shipment by pipeline to 2 

volume percent or less should provide 

sufficient flexibility. 

Product transfer documents (PTDs) for 

500 ppm LM diesel are required to 

indicate that the fuel must be 

distributed in compliance with the 

approved compliance assurance plan. 

Entities in the distribution chain for 500 

ppm LM diesel fuel are required to keep 

records on the volumes of the 500 ppm 

that they receive from and deliver to 

each other entity. Based on input from 

fuel distributors, keeping these records 

will be a minimal additional burden, as 

discussed in section VIII.B. Such 

entities are also required to keep records 

on how the fuel was transported and 

segregated. We would typically expect 

that the volumes of 500 ppm LM 

delivered would be equal to or less than 

those received unless shipment by 

pipeline occurred. Some minimal 

increase in 500 ppm LM volume would 

be acceptable due to differences in 

temperature between when the shipped 

and received volumes were measured 

and interface cuts during shipment by 

pipeline. Entities that handle 500 ppm 

LM are required to calculate a balance 

of 500 ppm LM received versus 

delivered/used on an annual basis. If the 

volume of fuel delivered/dispensed is 

greater than that received, EPA would 

expect that the records would indicate 

the cause. If an entity’s evaluation of 

their receipts and deliveries of 500 ppm 

LM fuel indicated noncompliance with 

the product segregation requirements, 

the custodian would be required to 

notify EPA. All entities in the 500 ppm 

LM distribution chain are required to 

maintain the specified records for 5 

years and provide them to EPA upon 

request. 

VII. Amendments Related to the 

Marker Requirements for Locomotive 

and Marine Fuel 

Today’s rule amends the regulatory 

provisions regarding the transition in 

the fuel marker requirements for 500 

ppm LM diesel fuel in 2012 to address 

an oversight in the original rulemaking 

where the regulations failed to 

incorporate provisions described in the 

rulemaking preamble. Today’s rule also 

amends the regulatory provisions 

regarding the transition in the fuel 

marker requirements for heating oil in 

2014 to provide improved clarity. 

The preamble in the nonroad diesel 

final rule stated that EPA intended to 

allow 500 ppm LM diesel fuel 

containing greater than 0.10 milligrams 

per liter of solvent yellow 124 (SY124) 

to be present at any location in the fuel 

distribution system (up to and including 

retail and wholesale-purchaserconsumer storage tanks) until 

September 30, 2012.31 Although it was 

not explicitly stated in the preamble, it 

was implied that additional time would 

be allowed for marked 500 ppm LM to 

transition from the fuel tanks connected 

to locomotive and marine engines, 

consistent with the approach taken 

regarding the implementation of more 

stringent diesel fuel sulfur standards. 

However, the nonroad diesel regulations 

are not consistent with the preamble 

and do not provide the allowance for 

marked 500 ppm LM diesel fuel to 

transition from fuel distribution and 

end-user tanks. 40 CFR 80.510(e) 

requires that all 500 ppm LM diesel fuel 

delivered from a truck loading rack 

located outside of the Northeast MidAtlantic (NEMA) area and Alaska must 

contain at least 6 mg/liter of SY124 

through May 31, 2012. However, the 

regulatory text at 40 CFR 80.510(f) 

requires that beginning June 1, 2012, 

any diesel fuel that contains 0.10 mg/ 

liter of SY124 must be designated as 

heating oil. Thus, the regulations as 

currently written do not provide any 

transition time for marked LM fuel that 

is present the distribution system as of 

May 31, 2012 to work its way through 

the fuel distribution system downstream 

of the truck loading rack and through 

the tanks connected to locomotive and 

marine engines. 

A number of locomotive and marine 

wholesale purchaser-consumers have 

taken custody of marked 500 ppm LM 

diesel fuel that they will not be able to 

consume prior to June 1, 2012. A 

number of fuel suppliers also have 

inventories of 500 ppm LM diesel fuel 

on hand that they may not be able to sell 

to LM diesel fuel users because such 

users are concerned about clearing their 

tanks of marked LM diesel fuel by June 

1, 2012. This new rule allows marked 

500 ppm LM diesel fuel to transition 

normally through the fuel distribution 

and use system, consistent with the 

original intent of the nonroad diesel rule 

preamble. Today’s rule allows 500 ppm 

LM diesel fuel at any point in the fuel 

distribution and end use system to 

contain more than 0.10 milligrams per 

liter of SY 124 through November 30, 

2012. 

We are implementing a single 

transition date applicable at all points in 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61291 

32We project that the number of effected parties 

will remain essentially constant over time. 

33This includes the time to train staff, formulate 

and transmit responses, and other miscellaneous 

compliance related activities. 

34This is based on current transmix production. 

Although the total volume of transmix produced in 

the fuel distribution system may decline in parallel 

with the projected decrease in overall petroleumbased fuel use, we anticipate that the number of 

transmix processors will remain essentially 

constant since their number is dependent on the 

configuration of the petroleum-based fuel 

distribution system. 

the fuel distribution and use system 

rather than a separate date applicable 

through retail and wholesale-purchaserconsumer (WPC) facilities and another 

date applicable at all locations 

including the tanks attached to 

locomotive and marine equipment 

because we believe that a stepped 

compliance schedule is not necessary 

and a single transition date provides the 

most flexibility for regulated parties. We 

expect that the marker will typically 

transition out of retailer and WPC LM 

diesel storage tanks well in advance of 

November 30, 2012. We further expect 

that users of LM diesel fuel can 

coordinate with retail and WPC 

facilities regarding deliveries of marked 

500 ppm LM diesel fuel to ensure that 

the fuel in storage tanks attached to LM 

equipment is in compliance by 

November 30, 2012. 

Today’s rule also amends the 

regulation to clarify the transition of the 

solvent yellow 124 marker out of 

heating oil beginning June 1, 2014. 

Specifically, today’s rule amends the 

regulations to clarify that after 

December 1, 2014, EPA will no longer 

have any requirements with respect to 

the use of the solvent yellow 124 

marker. This is consistent with the 

intent expressed in our original nonroad 

diesel fuel rulemaking. We do not 

believe these changes will adversely 

impact emissions. 

VIII. Statutory and Executive Order 

Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

Under Executive Order 12866 (58 CFR 

51735 (October 4, 1993), this action is 

a ‘‘significant regulatory action.’’ 

Accordingly, EPA submitted this action 

to the Office of Management and Budget 

(OMB) for review under Executive 

Orders 12866 and 13563 (76 FR 3821 

(January 21, 2011) and any changes 

made in response to OMB 

recommendations have been 

documented in the docket for this 

action. 

B. Paperwork Reduction Act 

The information collection 

requirements in this notice of proposed 

rulemaking and direct final rule have 

been submitted for approval to the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act, 44 U.S.C. 3501 et. seq. The 

Information Collection Request (ICR) 

document prepared by EPA related to 

the amended heating oil definition has 

been assigned EPA ICR number 2462.01 

and the ICR document prepared by EPA 

for diesel fuel produced by transmix 

producers has been assigned EPA ICR 

number 2463.01. Supporting statements 

for these proposed ICRs have been 

placed in the docket. The proposed 

information collections are described in 

the following paragraphs. 

This action contains recordkeeping 

and reporting (registration and product 

transfer documentation) that may affect 

parties who produce or import 

renewable fuels subject to the revised 

definition of heating oil. EPA expects 

that very few parties will be subject to 

additional recordkeeping and reporting. 

We estimate that up to 11 parties (i.e., 

RIN generators, consisting of up to 10 

producers and one importer) may be 

subject to the proposed information 

collection over the next several years.32

We estimate an annual reporting burden 

of 21 hours per respondent and an 

annual recordkeeping burden of 24 

hours, yielding a total per respondent 

burden of 45 hours.33 Burden means the 

total time, effort, or financial resources 

expended by persons to generate, 

maintain, retain, or disclose or provide 

information to or for a Federal agency. 

This includes the time needed to review 

the instructions; develop, acquire, 

install, and utilize technology and 

systems for the purpose of collecting, 

validating, and verifying information, 

processing and maintaining 

information, and disclosing and 

providing information; adjust the 

existing ways to comply with any 

previously applicable instructions and 

requirements; train personnel to be able 

to respond to a collection of 

information; search data sources; 

complete and review the collection of 

information; and transit or otherwise 

disclose the information. Burden is as 

defined at 5 CFR 1320.3(b). 

This action also contains provisions 

related to diesel fuel that is produced by 

transmix processors. We have proposed 

reporting requirements that would 

apply to transmix processors (all of 

whom are refiners) and other parties 

(such as carriers or distributors) in the 

distribution chain who handle diesel 

fuel produced by transmix producers. 

The collected data will permit EPA to: 

(1) Process compliance plans from 

transmix producers; and (2) Ensure that 

diesel fuel made from transmix meets 

the standards required under the 

regulations at 40 CFR Part 80, and that 

the associated benefits to human health 

and the environment are realized. We 

estimate that 25 transmix processors 

and 150 other parties may be subject to 

the proposed information collection.34

We estimate an annual reporting burden 

of 28 hours per transmix processor 

(respondent) and 8 hours per other party 

(respondent); considering all 

respondents (transmix producers and 

other parties) who would be subject to 

the proposed information collection, the 

annual reporting burden, per 

respondent, would be 11 hours. Burden 

means the total time, effort, or financial 

resources expended by persons to 

generate, maintain, retain, or disclose or 

provide information to or for a Federal 

agency. This includes the time needed 

to review the instructions; develop, 

acquire, install, and utilize technology 

and systems for the purpose of 

collecting, validating, and verifying 

information, processing and 

maintaining information, and disclosing 

and providing information; adjust the 

existing ways to comply with any 

previously applicable instructions and 

requirements; train personnel to be able 

to respond to a collection of 

information; search data sources; 

complete and review the collection of 

information; and transit or otherwise 

disclose the information. Burden is as 

defined at 5 CFR 1320.3(b). 

The amendments to the fuel marker 

requirements for locomotive and marine 

diesel fuel in today’s rule do not contain 

any new recordkeeping and reporting 

requirements. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid OMB 

control number. The OMB control 

numbers for EPA’s regulations are listed 

in 40 CFR part 9. 

To comment on the Agency’s need for 

this information, the accuracy of the 

provided burden estimates, and any 

suggested methods for minimizing 

respondent burden, EPA has established 

a public docket for this rule, which 

includes the ICRs described above, 

under Docket ID number EPA–HQ– 

OAR–2012–0223. Submit any comments 

related to the ICR to EPA and OMB. See 

the ADDRESSES section at the beginning 

of this notice for where to submit 

comments to EPA. Send comments to 

OMB at the Office of Information and 


wreier-aviles on DSK5TPTVN1PROD with RULES
61292 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

Regulatory Affairs, Office of 

Management and Budget, 725 17th 

Street NW., Washington, DC 20503, 

Attention: Desk Office for EPA. Since 

OMB is required to make a decision 

concerning the ICR between 30 and 60 

days after October 9, 2012, a comment 

to OMB is best assured of having its full 

effect if OMB receives it by November 

8, 2012. 

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 

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 final rule will not impose any new 

requirements on small entities. The 

amendments to the diesel transmix 

provisions would lessen the regulatory 

burden on all affected transmix 

processors and provide a source of 

lower cost locomotive and marine diesel 

fuel to consumers. The relatively minor 

corrections and modifications this rule 

do not impact small entities. 

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 and diesel 

sulfur 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 and diesel 

sulfur regulations. Thus, Executive 

Order 13132 does not apply to this 

action. 

F. Executive Order 13175 (Consultation 

and Coordination With Indian Tribal 

Governments) 

This 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 RFS2 and diesel 

sulfur 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 action is not a ‘‘significant 

energy action’’ as defined in Executive 

Order 13211 (66 FR 28355 (May 22, 

2001)), because it is not likely to have 

a significant adverse effect on the 

supply, distribution, or use of energy. 

We have concluded that this rule is not 

likely to have adverse energy effects 

because we do not anticipate adverse 

energy effects related to the additional 

generation of RINs for home heating oil 

or the reduced regulatory burden for 

transmix processors. This rule will 

facilitate the use of 500 ppm sulfur 

locomotive and marine (LM) diesel fuel, 

which contains the SY 124 marker that 

is already in the fuel distribution and 

use system consistent with EPA’s 

original intent. Today’s action will 

avoid the potential need to remove 

marked 500 ppm LM diesel fuel from 

the system for reprocessing, and the 

associated increased costs and potential 

disruption to the supply of LM diesel 

fuel. 

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 will 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 rule will 

not have disproportionately high and 

adverse human health or environmental 

effects on minority or low-income 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61293 

35See section VI and VII of today’s notice for 

details of this analysis. 

populations because it does not affect 

the level of protection provided to 

human health or the environment. 

These amendments will not relax the 

control measures on sources regulated 

by the RFS regulations and therefore 

will not cause emissions increases from 

these sources. We have determined that 

proposed amendments to the diesel 

transmix provisions and marker 

provisions for locomotive and marine 

diesel fuel under the diesel sulfur 

program would have a neutral or 

positive impact on diesel vehicle 

emissions.35

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). 

IX. Statutory Provisions and Legal 

Authority 

Statutory authority for the rule 

finalized today can be found in section 

211 of the Clean Air Act, 42 U.S.C. 

7545. Additional support for the 

procedural and compliance related 

aspects of today’s rule, including the 

recordkeeping requirements, come from 

sections 114, 208, and 301(a) of the 

Clean Air Act, 42 U.S.C. 7414, 7542, and 

7601(a). 

List of Subjects in 40 CFR Part 80 

Environmental protection, 

Administrative practice and procedure, 

Agriculture, Air pollution control, 

Confidential business information, 

Diesel fuel, Transmix, Energy, Forest 

and forest products, Fuel additives, 

Gasoline, Imports, Labeling, Motor 

vehicle pollution, Penalties, Petroleum, 

Reporting and recordkeeping 

requirements. 

Dated: September 17,2012. 

Lisa P. Jackson, 

Administrator. 

For the reasons set forth in the 

preamble, 40 CFR part 80 is amended as 

follows: 

PART 80—REGULATION OF FUELS 

AND FUEL ADDITIVES 

■ 1. The authority citation for part 80 

continues to read as follows: 

Authority: 42 U.S.C. 7414, 7542, 7545, and 

7601(a). 

Subpart I—[Amended] 

■ 2. Section 80.510 is amended by 

revising paragraph (f) to read as follows: 

§ 80.510 What are the standards and 

marker requirements for NRLM diesel fuel 

and ECA marine fuel? 

* * * * * 

(f) Marking provisions. From June 1, 

2012 through November 30, 2014: 

(1) Except as provided for in 

paragraph (i) of this section, prior to 

distribution from a truck loading 

terminal, all heating oil shall contain six 

milligrams per liter of marker solvent 

yellow 124 from June 1, 2012 through 

May 31, 2014. 

(2) All motor vehicle and NR diesel 

fuel shall be free of marker solvent 

yellow 124, and all LM diesel fuel shall 

be free of marker solvent yellow 124 

beginning December 1, 2012. 

(3) From June 1, 2012 through 

November 30, 2012, any diesel fuel that 

contains greater than or equal to 0.10 

milligrams per liter of marker solvent 

yellow 124 shall be deemed to be either 

heating oil or 500 ppm sulfur LM diesel 

fuel and shall be prohibited from use in 

any motor vehicle or nonroad diesel 

engine (excluding locomotive, or marine 

diesel engines). 

(4) From December 1, 2012 through 

November 30, 2014, any diesel fuel that 

contains greater than or equal to 0.10 

milligrams per liter of marker solvent 

yellow 124 shall be deemed to be 

heating oil and shall be prohibited from 

use in any motor vehicle or nonroad 

diesel engine (including locomotive, or 

marine diesel engines). 

(5) Except as provided for in 

paragraph (i) of this section, from June 

1, 2012 through November 30, 2014, any 

diesel fuel, other than jet fuel or 

kerosene that is downstream of a truck 

loading terminal, that contains less than 

0.10 milligrams per liter of marker 

solvent yellow 124 shall be considered 

motor vehicle diesel fuel or NRLM 

diesel fuel, as appropriate. 

(6) Any heating oil that is required to 

contain marker solvent yellow 124 

pursuant to the requirements of this 

paragraph (f) must also contain visible 

evidence of dye solvent red 164. 

(7) Beginning December 1, 2014 there 

are no requirements or restrictions on 

the use of marker solvent yellow 124 

under this subpart. 

* * * * * 

■ 3. Section 80.511 is amended by 

revising paragraphs (b)(4) and (b)(10) to 

read as follows: 

§ 80.511 What are the per-gallon and 

marker requirements that apply to NRLM 

diesel fuel, ECA marine fuel, and heating oil 

downstream of the refiner or importer? 

* * * * * 

(b) * * * 

(4) Except as provided in paragraphs 

(b)(5) through (8) of this section, the pergallon sulfur standard of § 80.510(c) 

shall apply to all NRLM diesel fuel 

beginning August 1, 2014 for all 

downstream locations other than retail 

outlets or wholesale purchaserconsumer facilities, shall apply to all 

NRLM diesel fuel beginning October 1, 

2014 for retail outlets and wholesale 

purchaser-consumer facilities, and shall 

apply to all NRLM diesel fuel beginning 

December 1, 2014 for all locations. This 

paragraph (b)(4) does not apply to LM 

diesel fuel produced from transmix or 

interface fuel that is sold or intended for 

sale in areas other than those listed in 

§ 80.510(g)(1) or (g)(2), as provided by 

§ 80.513(f). 

* * * * * 

(10) For the purposes of this subpart, 

on any occasion where a distributor 

directly dispenses fuel into vehicles or 

equipment from a mobile facility such 

as a tanker truck, the distributor shall be 

treated as a retailer, and the mobile 

facility shall be treated as a retail outlet. 

■ 4. Section 80.513 is amended as 

follows: 

■ a. By revising the section heading. 

■ b. By revising the introductory text. 

■ c. By revising paragraph (e). 

■ d. By adding a new paragraph (f). 

§ 80.513 What provisions apply to facilities 

that process transmix? 

For purposes of this section, transmix 

means a mixture of finished fuels, such 

as pipeline interface, that no longer 

meets the specifications for a fuel that 

can be used or sold without further 

processing. This section applies to 

refineries (or other facilities) that 

produce diesel fuel from transmix by 

distillation or other refining processes 

but do not produce diesel fuel by 

processing crude oil. This section only 

applies to the volume of diesel fuel 

produced by such a processor using 

these processes, and does not apply to 

any diesel fuel produced by the 


wreier-aviles on DSK5TPTVN1PROD with RULES
61294 Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 

blending of blendstocks. For the 

purposes of this section, pipeline 

interface means the mixture between 

different fuels that abut each other 

during shipment by pipeline. 

* * * * * 

(e) From June 1, 2012 through June 1, 

2014, NRLM diesel fuel produced by a 

facility that processes transmix is 

subject to the standards of § 80.510(c), 

except that LM diesel fuel produced 

from transmix is subject to the sulfur 

standard of § 80.510(a). This paragraph 

(e) does not apply to NRLM or LM 

diesel fuel that is sold or intended for 

sale in the areas listed in § 80.510(g)(1) 

or (g)(2). 

(f) Beginning June 1, 2014, LM diesel 

fuel produced from transmix is subject 

to the sulfur standard of § 80.510(a), 

provided that the conditions in this 

paragraph are satisfied. Diesel fuel 

produced from transmix that does not 

meet the conditions in this paragraph is 

subject to the sulfur standard in 

§ 80.510(c). 

(1) The fuel must be produced from 

transmix. 

(2) The fuel must not be sold or 

intended for sale in the areas listed in 

§ 80.510(g)(1) or (g)(2). 

(3) A facility producing 500 ppm LM 

diesel fuel must obtain approval from 

the Administrator for a compliance 

plan. The compliance plan must detail 

how the facility will segregate any 500 

ppm LM diesel fuel produced subject to 

the standards under § 80.510(a) from the 

producer through to the ultimate 

consumer from fuel having other 

designations. The compliance plan must 

identify the entities that handle the 500 

ppm LM through to the ultimate 

consumer. No more than 4 separate 

entities shall handle the 500 ppm LM 

between the producer and the ultimate 

consumer. The compliance plan must 

also identify all ultimate consumers to 

whom the refiner supplies the 500 ppm 

LM diesel fuel. The compliance plan 

must detail how misfueling of 500 ppm 

LM into vehicles or equipment that 

require the use of 15 ppm diesel fuel 

will be prevented. 

(i) Producers of 500 ppm LM diesel 

fuel must be registered with EPA under 

§ 80.597 prior to the distribution of any 

500 ppm LM diesel fuel after June 1, 

2014. 

(ii) Producers of 500 ppm LM must 

initiate a PTD that meets the 

requirements in paragraph (f)(3)(iii) of 

this section. 

(iii) All transfers of 500 ppm LM 

diesel fuel must be accompanied by a 

PTD that clearly and accurately states 

the fuel designation; the PTD must also 

meet all other requirements of § 80.590. 

(iv) Batches of 500 ppm LM may be 

shipped by pipeline provided that such 

batches do not come into physical 

contact in the pipeline with batches of 

other distillate fuel products that have 

a sulfur content greater than 15 ppm. 

(v) The volume of 500 ppm LM 

shipped via pipeline under paragraph 

(f)(3)(iv) of this section may swell by no 

more than 2% upon delivery to the next 

party. Such a volume increase may only 

be due to volume swell due to 

temperature differences when the 

volume was measured or due to normal 

pipeline interface cutting practices 

notwithstanding the requirement under 

paragraph (f)(3)(iv) of this section. 

(vi) Entities that handle 500 ppm LM 

must calculate the balance of 500 ppm 

LM received versus the volume 

delivered and used on an annual basis. 

(vii) The records required in this 

section must be maintained for five 

years, by each entity that handles 500 

ppm LM and be made available to EPA 

upon request. 

(4) All parties that take custody of 500 

ppm LM must segregate the product 

from other fuels and observe the other 

requirements in the compliance plan 

approved by EPA pursuant to paragraph 

(f)(3) of this section. 

■ 5. Section 80.572 is amended by 

revising the section heading and 

paragraph (d) to read as follows: 

§ 80.572 What labeling requirements apply 

to retailers and wholesale purchaserconsumers of Motor Vehicle, NR, LM and 

NRLM diesel fuel and heating oil beginning 

June 1, 2010? 

* * * * * 

(d) From June 1, 2010 and beyond, for 

pumps dispensing LM diesel fuel 

subject to the 500 ppm sulfur standard 

of § 80.510(a): 

LOW SULFUR LOCOMOTIVE AND 

MARINE DIESEL FUEL (500 ppm 

Sulfur Maximum) 

WARNING 

Federal law prohibits use in nonroad 

engines or in highway vehicles or 

engines. 

* * * * * 

■ 6. Section 80.597 is amended by 

revising paragraph (d)(3)(ii) to read as 

follows: 

§ 80.597 What are the registration 

requirements? 

* * * * * 

(d) * * * 

(3) * * * 

(ii) Fuel designated as 500 ppm LM 

diesel fuel. 

* * * * * 

■ 7. Section 80.598 is amended by 

revising paragraph (b)(9)(ii) to read as 

follows: 

§ 80.598 What are the designation 

requirements for refiners, importers, and 

distributors? 

* * * * * 

(b) * * * 

(9) * * * 

(ii) Until June 1, 2014, any distillate 

fuel containing greater than or equal to 

0.10 milligrams per liter of marker 

solvent yellow 124 required under 

§ 80.510(d), (e), or (f) must be designated 

as heating oil except that from June 1, 

2010, through November 30, 2012, it 

may also be designated as LM diesel 

fuel as specified under § 80.510(e). 

* * * * * 

■ 8. Section 80.601 is amended by 

revising paragraph (a)(2) to read as 

follows: 

§ 80.610 What acts are prohibited under 

the diesel fuel sulfur program? 

(a) * * * 

(2) Beginning June 1, 2007, produce, 

import, sell, offer for sale, dispense, 

supply, offer for supply, store or 

transport any diesel fuel for use in 

motor vehicle or nonroad engines that 

contains greater than 0.10 milligrams 

per liter of solvent yellow 124, except 

for 500 ppm sulfur diesel fuel sold, 

offered for sale, dispensed, supplied, 

offered for supply, stored, or transported 

for use in LM. from June 1, 2010 

through November 30, 2012 for use only 

in locomotive or marine diesel engines 

that is marked under the provisions of 

§ 80.510(e). 

* * * * * 

■ 9. Section 80.1401 is amended by 

revising the definition of ‘‘Heating Oil’’ 

to read as follows: 

§ 80.1401 Definitions. 

* * * * * 

Heating oil means either of the 

following: 

(1) A #1, #2, or non-petroleum diesel 

meeting the definition set forth in 

§ 80.2(ccc); or 

(2) A fuel oil that, pursuant to 

§§ 80.1450(b)(1)(ix) and (d)(4), 

80.1451(b)(1)(ii)(T), 80.1453(d) and 

80.1454(b)(7), is demonstrated to be 

used to heat interior spaces of homes or 

buildings to control ambient climate for 

human comfort, is capable of flowing at 

60 degrees Fahrenheit and 1 atmosphere 

of pressure, and is not used for any 

other purpose. 

* * * * * 

■ 10. Section 80.1426 is amended by 

revising paragraph (a)(1)(ii) introductory 

text and adding (a)(1)(iii) to read as 

follows: 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 195 / Tuesday, October 9, 2012 / Rules and Regulations 61295 

§ 80.1426 How are RINs generated and 

assigned to batches of renewable fuel by 

renewable fuel producers or importers? 

(a) * * * 

(1) * * * 

(ii) Is demonstrated to be produced 

from renewable biomass pursuant to the 

reporting requirements of § 80.1451 and 

the recordkeeping requirements of 

§ 80.1454; and 

* * * * * 

(iii) Was produced in compliance 

with the registration requirements of 

§ 80.1450, the reporting requirements of 

§ 80.1451, the recordkeeping 

requirements of § 80.1454, and all other 

applicable regulations of this subpart M. 

* * * * * 

■ 11. Section 80.1450 is amended by 

adding new paragraph (b)(1)(ix) to read 

as follows: 

§ 80.1450 What are the registration 

requirements under the RFS program? 

* * * * * 

(b) * * * 

(1) * * * 

(ix) For a producer of fuel oil meeting 

paragraph (2) of the definition of heating 

oil in § 80.1401: 

(A) An affidavit from the producer of 

the fuel oil stating that the fuel oil for 

which RINs are generated will be sold 

for the purposes of heating interior 

spaces of homes or buildings to control 

ambient climate for human comfort, and 

no other purpose. 

(B) Affidavits from existing final end 

users of the fuel oil stating that the fuel 

oil for which RINs are generated is being 

used for purposes of heating interior 

spaces of homes or buildings to control 

ambient climate for human comfort, and 

no other purpose. 

* * * * * 

■ 12. Section 80.1451 is amended by 

adding a new paragraph (b)(1)(ii)(T) to 

read as follows: 

§ 80.1451 What are the reporting 

requirements under the RFS program? 

* * * * * 

(b) * * * 

(1) * * * 

(ii) * * * 

(T) Producers of fuel oil that meets the 

paragraph (2) of the definition of heating 

oil in § 80.1401, shall report, on a 

quarterly basis, all the following for 

each volume of fuel oil: 

(1) Total volume of fuel oil produced 

and sold to end users, in units of U.S. 

gallon, and the respective heating 

content of the fuel oil, in units of BTU 

per U.S. gallon. 

(2) Total volume of fuel oil for which 

RINs were generated, in units of U.S. 

gallon, and the respective quantities of 

fuel oil sold to end users, names and 

locations of the buildings in which the 

fuel oil was used to heat interior spaces 

of those buildings to control ambient 

climate for human comfort, and the RIN 

numbers assigned to each batch of fuel 

oil. 

(3) For each batch of transferred fuel 

oil for which RINs are generated that the 

renewable fuel producer claims to meet 

paragraph (2) of the definition of heating 

oil in § 80.1401 and is sold for those 

purposes, affidavits from the end user of 

the fuel that includes, but not limited to, 

the following information: 

(i) Quantity of fuel oil received from 

producer. 

(ii) Quantity of fuel oil used for 

purposes of heating interior spaces of 

homes or buildings to control ambient 

climate for human comfort, and no other 

purpose. 

(iii) Date the fuel oil was received 

from producer. 

(iv) Blend level of the fuel oil in 

petroleum based fuel oil when received 

(if applicable). 

(v) Quantity of assigned RINs received 

with the renewable fuel, if applicable. 

(vi) Quantity of assigned RINs that the 

end user separated from the renewable 

fuel, if applicable. 

* * * * * 

■ 13. Section 80.1453 is amended by 

adding a new paragraph (d) to read as 

follows: 

§ 80.1453 What are the product transfer 

document (PTD) requirements for the RFS 

program? 

* * * * * 

(d) For fuel oil meeting paragraph (2) 

of the definition of heating oil in 

§ 80.1401, the PTD which is used to 

transfer ownership or custody of the 

renewable fuel shall state: ‘‘This volume 

of renewable fuel is designated and 

intended to be used to heat interior 

spaces of homes or buildings to control 

ambient climate for human comfort. Do 

NOT use for process heat or any other 

purpose, pursuant to 40 CFR 

§ 80.1460(g).’’ 

■ 14. Section 80.1454 is amended by 

adding new paragraph (b)(7) to read as 

follows: 

§ 80.1454 What are the recordkeeping 

requirements under the RFS program? 

* * * * * 

(b) * * * 

(7) Copies of all contracts which 

describe the fuel oil under contract with 

each end user. 

* * * * * 

■ 15. Section 80.1460 is amended by 

adding a new paragraph (g). 

§ 80.1460 What acts are prohibited under 

the RFS program? 

* * * * * 

(g) Failing to use a renewable fuel for 

its intended use. No person shall use 

qualifying fuel oil that meets paragraph 

(2) of the definition of heating oil in 

§ 80.1401 in an application other than to 

heat interior spaces of homes or 

buildings to control ambient climate for 

human comfort. 

* * * * * 

[FR Doc. 2012–23713 Filed 10–5–12; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 622 

[Docket No. 120403249–2492–02] 

RIN 0648–BC03 

Snapper-Grouper Fishery off the 

Southern Atlantic States; SnapperGrouper Management Measures 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Final rule. 

SUMMARY: NMFS issues this final rule to 

implement a regulatory amendment 

(Regulatory Amendment 12) to the 

Fishery Management Plan for the 

Snapper-Grouper Fishery of the South 

Atlantic Region (FMP), as prepared by 

the South Atlantic Fishery Management 

Council (Council). Regulatory 

Amendment 12 revises the optimum 

yield (OY) for golden tilefish in the 

South Atlantic exclusive economic zone 

(EEZ) and modifies the golden tilefish 

annual catch limit (ACL) to be equal to 

the OY. Regulatory Amendment 12 also 

revises the recreational accountability 

measures (AMs). This rule specifies the 

revised commercial and recreational 

ACLs for golden tilefish and the revised 

recreational AMs for golden tilefish. 

Additionally, through this final rule, 

NMFS announces the reopening of the 

golden tilefish commercial sector with a 

commercial trip limit of 300 lb (136 kg) 

for the 2012 fishing year. The intent of 

this rule is to modify management 

measures for golden tilefish in the 

commercial and recreational sectors in 

the South Atlantic based on new stock 

assessment analyses. 

DATES: This rule is effective October 9, 

2012 except regulations at 

§ 622.49(b)(1)(ii) which will be effective 

November 8, 2012. The commercial 


wreier-aviles on DSK5TPTVN1PROD with RULES