Federal Register / Vol. 79, No. 85 / Friday, May 2, 2014 / Rules and Regulations 25025 

* * * * * 

[FR Doc. 2014–09855 Filed 5–1–14; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 80 

[EPA–HQ–OAR–2012–0546; FRL–9910–18– 

OAR] 

RIN 2060–AS21 

Regulation of Fuels and Fuel 

Additives: 2013 Cellulosic Biofuel 

Standard 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is taking direct final 

action to revise the 2013 cellulosic 

biofuel standard published on August 

15, 2013. This action follows from EPA 

having granted two petitioners’ requests 

for reconsideration of the 2013 

cellulosic biofuel standard. EPA granted 

reconsideration because one of the two 

companies that EPA expected to 

produce cellulosic biofuel in 2013 

announced soon after EPA signed its 

final rule that it intended to produce 

substantially lower volumes of 

cellulosic biofuel in 2013 than it had 

earlier reported to EPA. Since the 

cellulosic biofuel standard was based on 

EPA’s projection of cellulosic biofuel 

production in 2013, EPA deemed this 

new information to be of central 

relevance to the rule, warranting 

reconsideration. On reconsideration, 

EPA is directed to base the standard on 

the lower of ‘‘projected’’ production of 

cellulosic fuel in 2013 or the cellulosic 

biofuel applicable volume set forth in 

the statute. Since data are available to 

show actual production volumes for 

2013, EPA’s ‘‘projection’’ and final rule 

are based on actual cellulosic biofuel 

production in 2013. This action only 

affects the 2013 cellulosic biofuel 

standard; all other RFS standards 

remain unchanged. EPA is finalizing a 

revised cellulosic biofuel standard of 

0.0005% for 2013. 

DATES: This rule is effective on July 1, 

2014 without further notice, unless EPA 

receives relevant adverse comment by 

June 2, 2014. If EPA receives relevant 

adverse comment, we will publish a 

timely withdrawal of this direct final 

rule in the Federal Register informing 

the public that this rule will not take 

effect. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–HQ– 

OAR–2012–00546, by one of the 

following methods: 

• www.regulations.gov: Follow the 

on-line instructions for submitting 

comments. 

• Email: a-and-r-docket@epa.gov. 

• Mail: Air and Radiation Docket and 

Information Center, Environmental 

Protection Agency, Mailcode: 2822T, 

1200 Pennsylvania Ave. NW., 

Washington, DC 20460. 

• Hand Delivery: EPA Docket Center, 

EPA West Building, Room 3334, 1301 

Constitution Ave. NW., Washington, DC 

20460. Such deliveries are only 

accepted during the Docket’s normal 

hours of operation, and special 

arrangements should be made for 

deliveries of boxed information. 

Instructions: Direct your comments to 

Docket ID No. EPA–HQ–OAR–2012– 

0546. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit information that you 

consider to be CBI or otherwise 

protected through www.regulations.gov 

or email. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means EPA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an email 

comment directly to EPA without going 

through www.regulations.gov your email 

address will be automatically captured 

and included as part of the comment 

that is placed in the public docket and 

made available on the Internet. If you 

submit an electronic comment, EPA 

recommends that you include your 

name and other contact information in 

the body of your comment and with any 

disk or CD–ROM you submit. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider your comment. 

Electronic files should avoid the use of 

special characters, any form of 

encryption, and be free of any defects or 

viruses. For additional information 

about EPA’s public docket visit the EPA 

Docket Center homepage at http://

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

For additional instructions on 

submitting comments, go to Section I.B 

of the SUPPLEMENTARY INFORMATION

section of this document. 

Docket: All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, e.g., CBI or other information 

whose disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, will be publicly 

available only in hard copy. Publicly 

available docket materials are available 

either electronically in 

www.regulations.gov or in hard copy at 

the Air and Radiation Docket and 

Information Center, EPA/DC, EPA 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: Julia 

MacAllister, Office of Transportation 

and Air Quality, Assessment and 

Standards Division, Environmental 

Protection Agency, 2000 Traverwood 

Drive, Ann Arbor, MI 48105; Telephone 

number: 734–214–4131; Fax number: 

734–214–4816; Email address: 

macallister.julia@epa.gov, or the public 

information line for the Office of 

Transportation and Air Quality; 

telephone number (734) 214–4333; 

Email address OTAQ@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Why is EPA using a direct final rule? 

EPA is publishing this rule without a 

prior proposed rule because we view 

this as a noncontroversial action. This 

action amends the 2013 cellulosic 

biofuel standard that was finalized in 

‘‘Regulation of Fuels and Fuel 

Additives: 2013 Renewable Fuel 

Standards; Final Rule,’’ (August 15, 

2013; 78 FR 49794). Finalizing this 

adjusted 2013 cellulosic biofuel 

standard expeditiously will reduce 

regulatory uncertainty and avoid 

unnecessary cost or burden for obligated 

parties. Until this adjusted cellulosic 

biofuel standard is finalized, obligated 

parties will have to comply with the 

current and significantly higher 2013 

cellulosic biofuel standard. This would 

likely involve a substantial purchase of 

cellulosic waiver credits, which EPA 

would subsequently need to reimburse. 

This action follows from EPA having 

granted, on January 23, 2014, requests 

for reconsideration of the 2013 

cellulosic biofuel standard submitted by 

the American Petroleum Institute and 

the American Fuel & Petrochemical 

Manufacturers. In granting 

reconsideration, EPA determined that 

petitioners had met the statutory criteria 

of section 307(d)(7)(B) of the Clean Air 

Act, since petitioners had identified 


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25026 Federal Register / Vol. 79, No. 85 / Friday, May 2, 2014 / Rules and Regulations 

1 78 FR 49794 (August 15, 2013). 

2EPA has not yet taken action on aspects of these 

petitions that relate to matters other than the 2013 

cellulosic biofuel standard. 

3Sum of D3 RINs (422,740) and D7 RINs 

(395,777) generated in 2013. Data from the EMTS 

(last accessed February 25, 2014). 

4 Data from the EMTS (last accessed March 19, 

2014). 

new information of central relevance 

that became available after the comment 

period closed but within the time period 

specified for parties to seek judicial 

review. 

In the ‘‘Proposed Rules’’ section of 

today’s Federal Register, we are 

publishing a separate document that 

will serve as the proposed rule to revise 

the 2013 cellulosic standard if adverse 

comments are received on this direct 

final rule. We will not institute a second 

comment period on this action. Any 

parties interested in commenting must 

do so at this time. For further 

information about commenting on this 

rule, see the ADDRESSES section of this 

document. 

If EPA receives relevant adverse 

comment or a request for a public 

hearing, we will publish a timely 

withdrawal in the Federal Register 

informing the public that this direct 

final rule will not take effect. We would 

address all public comments in any 

subsequent final rule based on the 

proposed rule. 

II. Does this action apply to me? 

Entities potentially affected by this 

direct final rule are those involved with 

the production, distribution, and sale of 

transportation fuels, including gasoline 

and diesel fuel or renewable fuels such 

as ethanol and biodiesel. Potentially 

regulated categories include: 

Category NAICS1 codes SIC 2

codes Examples of potentially regulated entities 

Industry ............................................ 324110 2911 Petroleum Refineries. 

Industry ............................................ 325193 2869 Ethyl alcohol manufacturing. 

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

Industry ............................................ 424690 5169 Chemical and allied products merchant wholesalers. 

Industry ............................................ 424710 5171 Petroleum bulk stations and terminals. 

Industry ............................................ 424720 5172 Petroleum and petroleum products merchant wholesalers. 

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

1 North American Industry Classification System (NAICS). 

2Standard Industrial Classification (SIC) system code 

This table is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

regulated by this action. This table lists 

the types of entities that EPA is now 

aware could potentially be regulated by 

this action. Other types of entities not 

listed in the table could also be 

regulated. To determine whether your 

activities would be regulated by this 

action, you should carefully examine 

the applicability criteria in 40 CFR part 

80. If you have any questions regarding 

the applicability of this action to a 

particular entity, consult the person 

listed in the preceding section. 

Outline of This Preamble 

I. Executive Summary 

II. Assessment of the Petitions for 

Reconsideration of the Cellulosic Biofuel 

Standard 

III. Cellulosic Biofuel Volume for 2013 

IV. Percentage Standards for 2013 

A. Background 

B. Calculation of the Cellulosic Biofuel 

Standard 

1. How is the standard calculated? 

2. Small Refineries and Small Refiners 

3. Cellulosic Standard 

V. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

B. Paperwork Reduction Act 

C. Regulatory Flexibility Act 

D. Unfunded Mandates Reform Act 

E. Executive Order 13132: Federalism 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

I. National Technology Transfer and 

Advancement Act 

J. Executive Order 12898: Federal Action 

To Address Environmental Justice in 

Minority Populations and Low-Income 

Populations 

K. Congressional Review Act 

VI. Statutory Authority 

I. Executive Summary 

On October 10, 2013, and October 11, 

2013, the U.S. Environmental Protection 

Agency (EPA) received petitions from 

the American Fuel & Petrochemical 

Manufacturers and the American 

Petroleum Institute requesting that EPA 

reconsider portions of the final rule 

entitled Regulation of Fuels and Fuel 

Additives: 2013 Renewable Fuel 

Standards1. Petitioners noted the 

substantial reduction (from 3–5 million 

gallons to 1–2 million gallons) in 

anticipated cellulosic biofuel 

production in 2013 that was announced 

shortly after EPA signed its final rule by 

one of two companies expected to 

produce cellulosic biofuel in 2013. After 

review, EPA determined that the 

petitions for reconsideration with regard 

to the 2013 cellulosic biofuel standard 

had demonstrated the statutory criteria 

specified in Section 307(d)(7)(B) of the 

Clean Air Act for the reconsideration. 

On January 23, 2014, the Administrator 

notified petitioners that their petitions, 

with regard to the 2013 cellulosic 

biofuel standard, had been granted and 

that EPA would initiate a notice and 

comment rulemaking to reconsider the 

standard.2

In this rulemaking, EPA is revising 

the 2013 cellulosic biofuel standard. In 

reconsidering the earlier cellulosic 

standard, EPA is directed to base the 

standard on the lower of the ‘‘projected’’ 

production volume of cellulosic fuel in 

2013 or the cellulosic biofuel volume 

target set forth in the statute. At this 

time, since data are available to show 

actual production volumes of cellulosic 

for 2013, our ‘‘projection’’ is based on 

actual cellulosic production in 2013. 

Specifically, we are calculating the 

volume of cellulosic biofuel to be used 

in 2013 by reference to the actual 

number of cellulosic biofuel renewable 

identification numbers (RINs) generated 

and reported through the EPA 

Monitored Transaction System (EMTS) 

in 2013. 

In 2013 a total of 818,517 cellulosic 

biofuel RINs were generated.3 Of this 

total, 8,332 RINs were invalidly 

generated and were retired.4 This leaves 

a total of 810,185 cellulosic biofuel RINs 

that are available for use by obligated 

parties. EPA believes that the EMTS 

data best represent the number of 

cellulosic RINs actually produced in 

2013 and are therefore an appropriate 

volume on which to base the required 

volume of cellulosic biofuel for 2013. 


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Federal Register / Vol. 79, No. 85 / Friday, May 2, 2014 / Rules and Regulations 25027 

5 78 FR 49794, August 15, 2013. 

The percentage standard for cellulosic 

biofuel for 2013 is shown below in 

Table I–1. The specific formula we used 

in calculating the cellulosic renewable 

fuel percentage standard is contained in 

the regulations at 40 CFR 80.1405 and 

described in Section V of this preamble. 

The percentage standard for cellulosic 

biofuel represents the ratio of the 

renewable fuel volume we have 

determined should be required for 2013 

to the non-renewable gasoline and 

diesel volume used in 2013, with 

appropriate corrections. Detailed 

calculations can be found in Section IV, 

including a description of the 2013 

gasoline and diesel volumes used. 

TABLE I–1—PERCENTAGE STANDARDS

FOR 2013 

Cellulosic biofuel ................... 0.0005% 

Since EPA’s revised cellulosic biofuel 

standard for 2013 is lower than the preexisting standard, it is possible that 

some obligated parties may have 

purchased more cellulosic waiver 

credits than will ultimately be needed 

for 2013 compliance. EPA will issue a 

refund for all such excess cellulosic 

waiver credits. 

II. Assessment of the Petitions for 

Reconsideration of the Cellulosic 

Biofuel Standard 

On August 6, 2013, EPA finalized the 

annual standard for cellulosic biofuel as 

required under the Clean Air Act 

Section 211(o).5 EPA set the 2013 

cellulosic biofuel percentage standard 

using the volume of cellulosic biofuel (6 

million ethanol-equivalent gallons) that 

EPA expected to be produced and used 

in the United States in 2013. This 

projection was based on expected 

production from two companies: INEOS 

Bio (0–1 million actual gallons, 0–1 

million ethanol-equivalent gallons) and 

KiOR (3–4 million actual gallons, 5–6 

million ethanol-equivalent gallons. 

KiOR’s facility is located in Columbus, 

Mississippi, while INEOS Bio’s facility 

is located in Vero Beach, Florida. 

EPA subsequently received petitions 

from the American Fuel & 

Petrochemical Manufacturers and 

American Petroleum Institute, dated 

October 10 and October 11, 2013, 

respectively, requesting that EPA 

reconsider the 2013 cellulosic biofuel 

standard and other parts of the rule 

entitled Regulation of Fuels and Fuel 

Additives: 2013 Renewable Fuel 

Standards. 

Both the American Petroleum 

Institute and the American Fuel & 

Petrochemical Manufacturers in their 

petitions for reconsideration cited a 

conference call held by KiOR on August 

8, 2013, two days after EPA finalized the 

2013 rule, as providing new information 

that required EPA to reconsider its 2013 

cellulosic biofuel standard. In this 

conference call, KiOR issued updated 

guidance on their expected volume of 

cellulosic biofuel production in 2013 

and KiOR lowered its projection to 1– 

2 million actual gallons in 2013. This 

represented a significant reduction from 

KiOR’s previous projection of 3–5 

million actual gallons in a May 9, 2013, 

conference call. This updated KiOR 

guidance was also lower than EPA’s 

projected cellulosic biofuel production 

from KiOR’s facility of 3–4 million 

actual gallons, which had been based in 

part on information from the earlier May 

9, 2013, conference call. KiOR’s 

announcement on August 8, 2013, 

therefore clearly represents new 

information that was not available 

during the comment period, and which 

became available after the comment 

period had closed but within the period 

for parties to seek judicial review. 

EPA next considered whether the 

objection was of central relevance to the 

outcome of the rule. EPA interprets the 

phrase ‘‘of central relevance to the 

outcome of the rule’’ to mean that the 

objection provides substantial support 

for the argument that the regulation 

should be revised. Because we projected 

that only two firms would contribute to 

the cellulosic biofuel volume in 2013, 

and because KiOR’s anticipated 

production reflected more than 80% of 

our volume projection, KiOR’s reduced 

production estimate for 2013 from 3–5 

million actual gallons of cellulosic 

biofuel to 1–2 million actual gallons of 

cellulosic biofuel, announced in their 

public conference call on August 8, 

2013, strongly indicated that the 

production of cellulosic biofuel in 2013 

was likely to be significantly lower than 

EPA’s projection. 

Even if both companies produced 

cellulosic biofuel at the high end of 

their projected production ranges after 

the KiOR revision (1 million ethanolequivalent gallons for INEOS Bio, 3 

million ethanol-equivalent gallons for 

KiOR) the total availability of cellulosic 

biofuel RINs generated in 2013 would 

still be 33% lower than the EPA 

projection in the final rule. Had the 

updated production estimate from 

KiOR’s conference call on August 8, 

2013, been available to EPA at the time 

the 2013 cellulosic biofuel standard was 

finalized, it is highly probable that it 

would have impacted the outcome of 

that standard. On these grounds, EPA 

determined that KiOR’s updated 

production estimate is of central 

relevance to the 2013 cellulosic biofuel 

standard, as it provides substantial 

support for the argument that the 

regulation should be revised. 

Although not relevant to EPA’s action 

on the 2013 cellulosic standard, it 

should be noted that EPA does not 

anticipate that future modifications to 

company cellulosic biofuel production 

estimates that are received after the 

close of the comment period but within 

the period for parties to seek judicial 

review, will necessarily be grounds for 

the reconsideration of the cellulosic 

biofuel standard in future years. Here, 

reconsideration was granted due to the 

substantially reduced production 

estimates (from 3–5 million gallons to 

1–2 million gallons) by one of only two 

companies expected to produce 

cellulosic biofuel in 2013. Any similar 

situation will be evaluated on a case-bycase basis. As the number of facilities 

from which cellulosic biofuel 

production increases, and as the 

potential production volume from each 

facility increases, it becomes 

increasingly less likely that changes in 

the production estimate from any single 

company will be of central relevance to 

the overall cellulosic biofuel standard. 

The greater the number of companies 

expected to produce cellulosic biofuel, 

the more likely it is that a reduction in 

the expected volume from any single 

company would either be insignificant 

in the context of the total standard, or 

can be made up with higher production 

volumes from another, or more likely 

several other companies. 

Our decision to grant reconsideration 

of the 2013 cellulosic biofuel standard 

has no impact on other 2013 RFS 

standards. 

III. Cellulosic Biofuel Volume for 2013 

EPA is directed by Section 

211(o)(7)(D)(i) of the Clean Air Act to 

base the 2013 cellulosic biofuel 

standard on the lower of the ‘‘projected’’ 

production volume of cellulosic fuel in 

2013 or the 1.0 billion gallon 2013 

cellulosic biofuel ‘‘applicable volume’’ 

set forth in Section 211(o)(2)(B)(III) of 

the statute. In projecting biofuel 

production for a given year, EPA must 

consider an estimate provided by the 

Energy Information Administration 

(EIA), and may also consider additional 

available and relevant information. API 

v. EPA, 706 F.3d 474 (D.C. Cir. 2013) 

Since EPA is now tasked with making 

a ‘‘projection’’ after the year has ended, 

we believe the most appropriate 

information and data in this instance is 


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6More than one RIN is generated for each 

physical gallon of renewable fuel that has a higher 

energy content than ethanol. For example, 1.7 RINs 

are generated for one physical gallon of cellulosic 

diesel fuel. Ethanol-equivalent gallons are used to 

project cellulosic biofuel production when setting 

the cellulosic biofuel standard, and RINs, generated 

on an ethanol-equivalent basis, are used to comply 

with the standard. 7RFS2 EMTS Informational Data. See http://

www.epa.gov/otaq/fuels/rfsdata/2013emts.htm (last 

accessed March 19, 2014). 

8RINs may be generated in error for reasons such 

as improperly functioning flow meters, temperature 

volume correction errors, clerical errors, or fraud. 

9RIN numbers are from the EMTS (last accessed 

March 19, 2014). 

the actual cellulosic biofuel production 

(in ethanol-equivalent gallons 6) in 2013. 

EPA tracks and publically reports the 

number of RINs generated in the RFS 

program through the EPA Moderated 

Transaction System (EMTS).7 There are 

two types of RINs that may be used to 

satisfy a company’s cellulosic biofuel 

RVO: Cellulosic biofuel RINs (D3) and 

cellulosic diesel RINs (D7). The total 

number of 2013 RINs available to satisfy 

the cellulosic biofuel RVO can be 

calculated by adding the number of D3 

and D7 RINs generated in 2013 and 

subtracting the number of RINs 

generated in error.8 Using this method, 

the total number of valid RINs generated 

and which can be used towards the 

cellulosic biofuel obligation in 2013 is 

810,185. This calculation for cellulosic 

biofuel RINs is shown in Figure III–1 

below. 

FIGURE III–1—VALID CELLULOSIC

RINS GENERATED IN 2013 9

D3 RINs Generated .................. 422,740 

D7 RINs Generated .................. 395,777 

Total Cellulosic RINs Generated .................................... 818,517 

D3 RINs Generated in Error ..... 0 

D7 RINs Generated in Error ..... 8,332 

Total Valid Cellulosic RINs 

Generated in 2013 ................ 810,185 

IV. Percentage Standards for 2013 

A. Background 

The renewable fuel standards are 

expressed as volume percentages and 

are used by each refiner or importer to 

determine their Renewable Volume 

Obligation (RVO). Each standard applies 

to the sum of all gasoline and diesel 

produced or imported by an obligated 

party. The applicable percentage 

standard is set so that if every obligated 

party meets the percentages, then the 

amount of cellulosic biofuel used will 

meet the volumes required on a 

nationwide basis. As discussed in 

Section III, the required volume of 

cellulosic biofuel for 2013 is 810,185 

ethanol-equivalent gallons. 

TABLE IV.A–1—VOLUME FOR USE IN

SETTING THE APPLICABLE PERCENTAGE STANDARDS FOR 2013 a

Cellulosic biofuel ................... 810,185 

a Due to the manner in which the percentage standards are calculated, the volume is 

given in terms of ethanol-equivalent gallons 

The formulas used in deriving the 

annual standards are typically based in 

part on estimates of the volumes of 

gasoline and diesel fuel, for both 

highway and nonroad uses, that are 

projected to be used in the year in 

which the standard will apply. 

However, as discussed below, for this 

rule we will use the most recent EIA 

estimate, published in March 2014. 

Producers of other transportation fuels, 

such as natural gas, propane, and 

electricity from fossil fuels, are not 

subject to the standards, and volumes of 

such fuels are not used in calculating 

the annual standards. Since the 

standards apply to producers and 

importers of gasoline and diesel, these 

are the transportation fuels used to set 

the standards, and then again to 

determine the annual volume 

obligations of an individual gasoline or 

diesel producer or importer. 

B. Calculation of the Cellulosic Biofuel 

Standard 

1. How is the standard calculated? 

The following formula is used to 

calculate the four percentage standards 

applicable to producers and importers 

of gasoline and diesel (see § 80.1405): 

Where 

StdCB,i = The cellulosic biofuel standard for 

year i, in percent. 

RFVCB,i = Annual volume of cellulosic 

biofuel required by section 211(o) of the 

Clean Air Act for year i, in gallons. 

Gi = Amount of gasoline projected to be used 

in the 48 contiguous states and Hawaii, 

in year i, in gallons. 

Di = Amount of diesel projected to be used 

in the 48 contiguous states and Hawaii, 

in year i, in gallons. This value excludes 

diesel used in ocean-going vessels. 

RGi = Amount of renewable fuel blended into 

gasoline that is projected to be consumed 

in the 48 contiguous states and Hawaii, 

in year i, in gallons. 

RDi = Amount of renewable fuel blended into 

diesel that is projected to be consumed 

in the 48 contiguous states and Hawaii, 

in year i, in gallons. 

GSi = Amount of gasoline projected to be 

used in Alaska or a U.S. territory in year 

i if the state or territory opts-in, in 

gallons. 

RGSi = Amount of renewable fuel blended 

into gasoline that is projected to be 

consumed in Alaska or a U.S. territory in 

year i if the state or territory opts-in, in 

gallons. 

DSi = Amount of diesel projected to be used 

in Alaska or a U.S. territory in year i if 

the state or territory opts-in, in gallons. 

RDSi = Amount of renewable fuel blended 

into diesel that is projected to be 

consumed in Alaska or a U.S. territory in 

year i if the state or territory opts-in, in 

gallons. 

GEi = Amount of gasoline projected to be 

produced by exempt small refineries and 

small refiners in year i, in gallons, in any 

year they are exempt per §§ 80.1441 and 

80.1442, respectively. For 2013, this 

value is 0.12 billion gallons. See further 

discussion in Section IV.B.2 below. 

DEi = Amount of diesel projected to be 

produced by exempt small refineries and 

small refiners in year i, in gallons, in any 

year they are exempt per §§ 80.1441 and 

80.1442, respectively. For 2013, this 

value is 0.14 billion gallons. See further 

discussion in Section IV.B.2 below. 

The statute requires that EIA provide 

EPA in October of each year an estimate 

of the projected gasoline and diesel 

consumption in the forthcoming 

calendar year (as well as additional 

information on projected cellulosic 

biofuel and biomass diesel 

consumption), and EPA is to 

‘‘determine’’ the annual percentage 

standards ‘‘based on’’ the information 

provided by EIA. This structure 

envisions standards enacted prior to the 

compliance year. The United States 

Court of Appeals for the District of 

Columbia Circuit recently interpreted 

this provision in the context of a 

challenge to the 2012 cellulosic biofuel 

standard. API v. EPA, 706 F.3d 474 (D.C. 

Cir. 2013). The Court held that the Act 

‘‘[p]lainly . . . [does not] contemplate 


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10Energy Information Administration/Short-Term 

Energy Outlook—March 2014. (See http://

www.eia.gov/forecasts/steo/outlook.cfm; last 

accessed March 14, 2014). 

11Energy Information Administration/Short-Term 

Energy Outlook—March 2014, (See http://

www.eia.gov/forecasts/steo/outlook.cfm; last 

accessed March 14, 2014). 

12 72 FR 23900, May 1, 2007. 

13 40 CFR 80.1141, 80.1142. 

14See 40 CFR 80.1441, 80.1442. 

15 ‘‘Small Refinery Exemption Study: An 

Investigation into Disproportionate Economic 

Hardship,’’ U.S. Department of Energy, March 2011. 

16 40 CFR 80.1441(e)(2), 80.1442(h). 

17EPA’s consideration of updated EIA data on 

2013 gasoline and diesel use in the rule establishing 

the 2013 annual standards, and EPA’s adjustment 

of that value to account for small refinery 

exemptions, are currently being reviewed in 

Monroe v. EPA, Nos. 13–1265, 13–1267, 13–1268 

(D.C. Cir.). EPA notes that the cellulosic biofuel 

standard in this rule would remain unchanged if 

EPA used data provided in EIA’s October 2012 

letter to EPA for total gasoline and diesel in 2013 

and assumed no small refinery exemptions in 

calculating the standard. 

18To determine the 49-state values for gasoline 

and diesel, the amounts of these fuels used in 

Alaska are subtracted from the totals provided by 

the Department of Energy. The Alaska fractions are 

determined from the EIA State Energy Data System 

(SEDS) 2012 Updates. (U.S. Gasoline Consumption 

(March 2014 STEO)=8.78 MMbbl/day; U.S. Ethanol 

Consumption (March 2014 STEO)=0.859 MMBD; 

U.S. Diesel Fuel Consumption (March 2014 

STEO)=3.49 MMBD; U.S. Biodiesel Consumption 

(March 2014 STEO)=0.086 MMBD; U.S. Diesel 

Ocean-going vessels (AEO2013)=52.429TBtu.) 

Alaska Gasoline (2012SEDS)=6.499 MMbbl: Alaska 

Ethanol (2012 SEDS)=0.728 MMbbl; Alaska Diesel 

(2012 SEDS)=6.375 MMbbl: Alaska Biodiesel 

(Estimate based on biodiesel production capacity 

per EIA)=0; Alaska Ocean-going vessels estimated at 

4.5% of U.S. vessel bunkering and applied to the 

U.S. ocean-going vessel volume (information 

provided by EIA). 

slavish adherence by EPA to the EIA 

estimate’’; had Congress so intended, ‘‘it 

could have skipped the EPA 

‘determination’ altogether.’’ Id. Instead, 

‘‘EPA [i]s entitled . . . to read the 

phrase ‘based on’ as requiring great 

respect but allowing deviation 

consistent with that respect.’’ Id. 

Accordingly, the Court upheld EPA’s 

supplementation of EIA’s estimate with 

information EPA received from 

prospective biofuel producers— 

including information submitted after 

EPA had received EIA’s estimate—for 

the purpose of ‘‘determin[ing]’’ the 2012 

cellulosic biofuel standard. Id. 

For purposes of this rulemaking, we 

believe it is appropriate to rely on EIA’s 

most recent reports of actual gasoline 

and diesel consumption in the United 

States in 2013 rather than previous 

projections, such as their October 2012 

projection. Doing so allows a more 

accurate assessment of a percentage 

standard that will help to ensure that 

the volume of cellulosic biofuel we have 

determined should be used for 

compliance in 2013 will in fact be 

required. This approach is also 

consistent with our use of actual 

cellulosic biofuel production data for 

2013, rather than projections, in 

deriving the cellulosic biofuel standard. 

We have used EIA’s March 2014 ShortTerm Energy Outlook (STEO) 10 for the 

gasoline and diesel statistics. Gasoline 

and diesel volumes are adjusted to 

account for renewable fuel contained in 

the EIA projections. To estimate the 

ethanol and biodiesel projected volumes 

for the purposes of this rule, we have 

used the values 11 for ethanol and 

biodiesel used in 2013 that is provided 

in the March 2014 STEO. 

2. Small Refineries and Small Refiners 

In CAA section 211(o)(9), enacted as 

part of the Energy Policy Act of 2005, 

Congress provided a temporary 

exemption to small refineries (those 

refineries with a crude throughput of no 

more than 75,000 barrels of crude per 

day) through December 31, 2010. In our 

initial rulemaking to implement the new 

RFS program,12 we exercised our 

discretion under section 211(o)(3)(B) 

and extended this temporary exemption 

to the few remaining small refiners that 

met the Small Business 

Administration’s (SBA) definition of a 

small business (1,500 employees or less 

company-wide) but did not meet the 

statutory small refinery definition as 

noted above.13 Because the Energy 

Independence and Security Act of 2007 

did not alter the small refinery 

exemption in any way, the RFS2 

program regulations maintained the 

exemptions for gasoline and diesel 

produced by small refineries and small 

refiners through 2010 (unless the 

exemption was waived).14

Congress provided two ways that 

small refineries could receive a 

temporary extension of the exemption 

beyond 2010. One was based on the 

results of a study conducted by the 

Department of Energy (DOE) to 

determine whether small refineries 

would face a disproportionate economic 

hardship under the RFS program. In 

March of 2011, DOE evaluated the 

impacts of the RFS program on small 

entities and concluded that some small 

refineries would suffer a 

disproportionate hardship.15 The other 

way that small refineries could receive 

a temporary extension is based on EPA 

determination of disproportionate 

economic hardship on a case-by-case 

basis in response to refiner petitions.16

The regulations in 80.1405 that 

specify formulas for calculating the 

annual renewable fuel standards require 

that EPA subtract from the total volume 

of gasoline and diesel estimated to be 

produced and imported in the 

compliance year the volume attributed 

to small refineries and small refiners 

that have received exemptions from RFS 

requirements for that year. Depending 

on the size of the exempt volume, and 

rounding, this may or may not have the 

effect of increasing the standard. The 

purpose of this aspect of the 

computation is to make it more likely 

that the appropriate volume of 

renewable fuel is used by obligated 

parties notwithstanding the small 

refinery/small refiner exemptions. At 

the time the 2013 cellulosic biofuel 

standard was originally promulgated on 

August 6, 2013, only one small refinery 

exemption had been granted for the 

2013 compliance year. At this time, EPA 

has approved three small refinery 

exemptions for 2013. These three 

refineries produced a combined total of 

approximately 820 million gallons of 

gasoline and 660 million gallons of 

diesel fuel in 2013. These volumes have 

been used in the calculations below in 

Section IV.B.3.17

3. Cellulosic Standard 

The values of the variables used to 

derive the 2013 cellulosic biofuel 

standard are shown in Table IV.B.3–1.18

Terms not included in this table have a 

value of zero. 

TABLE IV.B.3–1—VALUES FOR TERMS

IN CALCULATION OF THE STANDARD

[Billion gallons] 

Term Value 

RFVCB,2014 ............................. 0.0008 

G2013 ..................................... 134.17 

D2013 ...................................... 53.14 

RG2013 ................................... 13.14 

RD2013 ................................... 1.61 

GS2013 ................................... 0 

RGS2013 ................................ 0 

DS2013 ................................... 0 

RDS2013 ................................. 0 

GE2013 ................................... 0.82 

DE2013 ................................... 0.66 

Using the volumes shown in Table 

IV.B.3–1, we have calculated the 

percentage cellulosic biofuel standard 

for 2013 as shown in Table IV.B.3–2. 

TABLE IV.B.3–2—PERCENTAGE

STANDARDS FOR 2013 

Cellulosic biofuel ................... 0.0005% 


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25030 Federal Register / Vol. 79, No. 85 / Friday, May 2, 2014 / Rules and Regulations 

V. Statutory and Executive Order 

Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

This action is not a ‘‘significant 

regulatory action’’ under the terms of 

Executive Order 12866 (58 FR 51735, 

October 4, 1993) and is therefore not 

subject to review under Executive 

Orders 12866 and 13563 (76 FR 3821, 

January 21, 2011). 

B. Paperwork Reduction Act 

There are no new information 

collection requirements associated with 

the standards in this rulemaking. The 

standards impose no new or different 

reporting requirements on regulated 

parties. The existing information 

collection requests (ICR) that apply to 

the RFS program are sufficient to 

address the reporting requirements in 

the regulations. 

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 in 40 

CFR are listed in 40 CFR part 9. 

C. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

generally requires an agency to prepare 

a regulatory flexibility analysis of any 

rule subject to notice and comment 

rulemaking requirements under the 

Administrative Procedures 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 this 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 today’s rule on small entities, 

I certify that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

This rule reconsiders the annual volume 

requirement for cellulosic biofuel for 

2013 which is being reduced from the 

total of 6 million ethanol-equivalent 

gallons finalized in the 2013 RFS annual 

rule and published on August 15, 2013 

to 810,185 ethanol-equivalent gallons. 

The impacts of the RFS2 program on 

small entities were already addressed in 

the RFS2 final rule promulgated on 

March 26, 2010 (75 FR 14670), and this 

rule will not impose any additional 

requirements on small entities beyond 

those already analyzed. 

D. Unfunded Mandates Reform Act 

This action contains no Federal 

mandates under the provisions of Title 

II of the Unfunded Mandates Reform 

Act of 1995 (UMRA), 2 U.S.C. 1531– 

1538 for State, local, or tribal 

governments or the private sector. This 

action implements mandate(s) 

specifically and explicitly set forth by 

the Congress in Clean Air Act section 

211(o) without the exercise of any 

policy discretion by EPA. Therefore, 

this action is not subject to the 

requirements of sections 202 or 205 of 

the UMRA. 

This action 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. This 

rule only applies to gasoline, diesel, and 

renewable fuel producers, importers, 

distributors and marketers and merely 

revises the 2013 cellulosic biofuel 

standard to reflect actual production in 

2013 for the RFS program. 

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 

revises the 2013 annual cellulosic 

biofuel standard for the RFS program 

and only applies to gasoline, diesel, and 

renewable fuel producers, importers, 

distributors and marketers. Thus, 

Executive Order 13132 does not apply 

to this rule. 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

This action does not have tribal 

implications, as specified in Executive 

Order 13175 (65 FR 67249, November 9, 

2000). This rule will be implemented at 

the Federal level and affects 

transportation fuel refiners, blenders, 

marketers, distributors, importers, 

exporters, and renewable fuel producers 

and importers. Tribal governments 

would be affected only to the extent 

they purchase and use regulated fuels. 

Thus, Executive Order 13175 does not 

apply to this action. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

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 and 

because it implements specific 

standards established by Congress in 

statutes (section 211(o) of the Clean Air 

Act). 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This action is not a ‘‘significant 

energy action’’ as defined in Executive 

Order 13211, ‘‘Actions Concerning 

Regulations That Significantly Affect 

Energy Supply, Distribution, or Use’’ (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. This action simply revises the 

2013 annual cellulosic standard for 

renewable fuel under the RFS program. 

I. National Technology Transfer and 

Advancement Act 

Section 12(d) of the National 

Technology Transfer and Advancement 

Act of 1995 (‘‘NTTAA’’), Public Law 

104–113, 12(d) (15 U.S.C. 272 note) 

directs EPA to use voluntary consensus 

standards in its regulatory activities 

unless to do so would be inconsistent 

with applicable law or otherwise 

impractical. Voluntary consensus 

standards are technical standards (e.g., 

materials specifications, test methods, 

sampling procedures, and business 

practices) that are developed or adopted 

by voluntary consensus standards 

bodies. NTTAA directs EPA to provide 

Congress, through OMB, explanations 

when the Agency decides not to use 

available and applicable voluntary 

consensus standards. 

This rulemaking does not involve 

technical standards. Therefore, EPA is 

not considering the use of any voluntary 

consensus standards. 


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Federal Register / Vol. 79, No. 85 / Friday, May 2, 2014 / Rules and Regulations 25031 

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 

populations because it does not affect 

the level of protection provided to 

human health or the environment. This 

action does not relax the control 

measures on sources regulated by the 

RFS regulations and therefore will not 

cause emissions increases from these 

sources. 

K. Congressional Review Act 

The Congressional Review Act, 5 

U.S.C. 801 et seq., as added by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, generally provides 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report, which includes a 

copy of the rule, to each House of the 

Congress and to the Comptroller General 

of the United States. EPA will submit a 

report containing this rule and other 

required information to the U.S. Senate, 

the U.S. House of Representatives, and 

the Comptroller General of the United 

States prior to publication of the rule in 

the Federal Register. A major rule 

cannot take effect until 60 days after it 

is published in the Federal Register. 

This action is not a ‘‘major rule’’ as 

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

VI. Statutory Authority 

Statutory authority for this action 

comes from section 211 of the Clean Air 

Act, 42 U.S.C. 7545. 

List of Subjects in 40 CFR Part 80 

Administrative practice and 

procedure, Air pollution control, Diesel 

fuel, Environmental protection, Fuel 

additives, Gasoline, Imports, Oil 

imports, Petroleum, Renewable fuel. 

Dated: April 22, 2014. 

Gina McCarthy, 

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, 7521, 7542, 

7545, and 7601(a). 

■ 2. Section 80.1405 is amended by 

revising paragraph (a)(4)(i) to read as 

follows: 

§ 80.1405 What are the Renewable Fuel 

Standards? 

(a) * * * 

(4) * * * 

(i) The value of the cellulosic biofuel 

standard for 2013 shall be 0.0005 

percent. 

* * * * * 

[FR Doc. 2014–10135 Filed 5–1–14; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 300 

[EPA–HQ–SFUND–1983–0002; FRL–9910– 

41–OSWER] 

National Oil and Hazardous 

Substances Pollution Contingency 

Plan; National Priorities List 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Withdrawal of Direct Final Rule. 

SUMMARY: On March 12, 2014, EPA 

published a Notice of Intent to Delete 

(79 FR 13967) and a direct final Notice 

of Deletion (79 FR 13882) for the 

O’Connor Superfund Site from the 

National Priorities List. The EPA is 

withdrawing the Final Notice of 

Deletion due to adverse comments that 

were received during the public 

comment period. After consideration of 

the comments received, if appropriate, 

EPA will publish a Notice of Deletion in 

the Federal Register based on the 

parallel Notice of Intent to Delete and 

place a copy of the final deletion 

package, including a Responsiveness 

Summary, if prepared, in the Site 

repositories. 

DATES: This withdrawal of the direct 

final action published March 12, 2014 

(79 FR 13882) is effective as of May 2, 

2014. 

ADDRESSES: Information Repositories: 

Comprehensive information on the Site, 

as well as the comments that we 

received during the comment period, 

are available in docket [EPA–HQ– 

SFUND–1983–0002; FRL–9907–65– 

Region 1], accessed through the http:// 

www.regulations.gov Web site. Although 

listed in the docket index, some 

information is not publicly available, 

e.g., CBI or other information whose 

disclosure is restricted by statue. Certain 

other material, such as copyrighted 

material, will be publicly available only 

in hard copy. Publicly available docket 

materials are available either 

electronically in http://

www.regulations.gov or in hard copy at: 

U.S. EPA Region 1, 5 Post Office Square, 

Suite 100, Boston, MA 02109–3912, 

Monday–Friday 8:00 a.m.–5:00 p.m. 

Lithgow Public Library, 45 Winthrop 

Street, Augusta, Maine 04330, Mon– 

Thurs 9:00 a.m.–8 p.m., Friday 9:00 

a.m.–5 p.m., and Saturday 9:00 a.m.– 

12:00 p.m. 

FOR FURTHER INFORMATION CONTACT: 

Terrence Connelly, Remedial Project 

Manager, U.S. Environmental Protection 

Agency, Region 1, Mailcode OSRR07–1, 

5 Post Office Square, Boston, MA 

02109–3912, (617) 918–1373, email: 

connelly.terry@epa.gov. 

SUPPLEMENTARY INFORMATION: 

List of Subjects in 40 CFR Part 300 

Environmental protection, Air 

pollution control, Chemicals, Hazardous 

waste, Hazardous substances, 

Intergovernmental relations, Penalties, 

Reporting and recordkeeping 

requirements, Superfund, Water 

pollution control, Water supply. 

Authority: 33 U.S.C. 1321(c)(2); 42 U.S.C. 

9601–9657; E.O. 12777, 56 FR 54757, 3 CFR, 

1991 Comp., p. 351; E.O. 12580, 52 FR 2923; 

3 CFR, 1987 Comp., p. 193. 

Dated: April 24, 2014. 

H. Curtis Spalding, 

Regional Administrator Region 1. 

Accordingly, the amendment to Table 

1 of Appendix B to Part 300 to remove 

the entry ‘‘ME’’, ‘‘O’Connor Superfund 

Site’’, ‘‘Augusta/Kennebec County’’ is 

withdrawn as of May 2, 2014. 

[FR Doc. 2014–10109 Filed 5–1–14; 8:45 am] 

BILLING CODE 6560–50–P 


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