Document ID: EPA-HQ-OAR-2021-0793-0018
Agency: epa
Document Type: Rule
Title: Renewable Fuel Standard Program: Extension of Compliance and Attest Engagement Reporting Deadlines
Posted Date: 2022-02-02T05:00Z

[Federal Register Volume 87, Number 22 (Wednesday, February 2, 2022)]
[Rules and Regulations]
[Pages 5696-5702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02149]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2021-0793; FRL-8521.1-01-OAR]
RIN 2060-AV57

Renewable Fuel Standard (RFS) Program: Extension of Compliance 
and Attest Engagement Reporting Deadlines

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is finalizing 
modifications of certain compliance dates under the Renewable Fuel 
Standard (RFS) program. First, EPA is extending the RFS compliance 
reporting deadline and the associated attest engagement reporting 
deadline for the 2019 compliance year for small refineries only. 
Second, EPA is extending the RFS compliance reporting deadline and the 
associated attest engagement reporting deadline for the 2020, 2021, and 
2022 compliance years for all obligated parties. Finally, EPA is 
changing the way in which future RFS compliance and attest engagement 
reporting deadlines are determined.

DATES: 
    Effective date: The amendatory instructions in this final rule are 
effective on January 31, 2022.
    Operational dates: For operational purposes under the Clean Air Act 
(CAA), this final rule is effective as of January 27, 2022.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OAR-2021-0793. All documents in the docket are listed on the 
https://www.regulations.gov website. Although listed in the index, some 
information is not publicly available, e.g., confidential business 
information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material is not available on the internet and 
will be publicly available only in hard copy form. Publicly available 
docket materials are available electronically through https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For questions regarding this action, 
contact Karen Nelson, Office of Transportation and Air Quality, 
Compliance Division, Environmental Protection Agency, 2000 Traverwood 
Drive, Ann Arbor, MI 48105; telephone number: (734) 214-4657; email 
address: [email protected].

SUPPLEMENTARY INFORMATION:

Dates

    Section 553(d) of the Administrative Procedure Act (APA), 5 U.S.C. 
chapter 5, generally provides that rules may not take effect until 30 
days after they are published in the Federal Register. EPA is issuing 
this final rule under CAA section 307(d), which states, ``The 
provisions of section 553 through 557 . . . of Title 5 shall not, 
except as expressly provided in this section, apply to actions to which 
this subsection applies.'' Thus, section 553(d) of the APA does not 
apply to this rule. EPA is nevertheless acting consistently with the 
policies underlying APA section 553(d) in making this final rule 
effective upon signature. The purpose of this APA provision is to 
``give affected parties a reasonable time to adjust their behavior 
before the final rule takes effect.'' Omnipoint Corp. v. Fed. Commc'n 
Comm'n, 78 F.3d 620, 630 (D.C. Cir. 1996); see also United States v. 
Gavrilovic, 551 F.2d 1099, 1104 (8th Cir. 1977) (quoting legislative 
history). However, when an agency grants or recognizes an exemption or 
relieves a restriction, affected parties do not need a reasonable time 
to adjust because the effect is not adverse. Thus, APA section 553(d) 
allows an effective date less than 30 days after publication for any 
rule that ``grants or recognizes an exemption or relieves a 
restriction'' (see 5 U.S.C. 553(d)(1)). An accelerated effective date

[[Page 5697]]

may also be appropriate for good cause pursuant to APA section 
553(d)(3) where an agency can ``balance the necessity for immediate 
implementation against principles of fundamental fairness which require 
that all affected persons be afforded a reasonable amount of time to 
prepare for the effective date of its ruling.'' Gavrilovic, 551 F.2d at 
1105.
    EPA has determined that the regulatory amendments to 40 CFR part 
80, subpart M, are effective upon signature because they relieve a 
restriction by extending the 2019-2022 compliance reporting deadlines 
(and associated attest engagement report deadlines) ahead of the 
otherwise imminent 2020 and 2021 compliance reporting deadlines 
(January 31, 2022, and March 31, 2023, respectively), thereby providing 
obligated parties with additional time to demonstrate compliance.\1\ 
There is additionally good cause for immediate implementation of these 
provisions such that they are effective in advance of the finalization 
of two different but related RFS actions, as this will ensure regulated 
parties have clarity on their present and future RFS obligations before 
they are required to demonstrate compliance for the years at issue. 
First, EPA has proposed to deny all pending small refinery exemption 
(SRE) petitions, including 29 petitions for 2019.\2\ There is therefore 
good cause for this action to be effective upon signature to extend the 
regulatory deadline for small refineries to comply with their 2019 
obligations (previously November 30, 2021) because EPA believes that 
the most equitable approach for the small refineries that have pending 
SRE petitions is to take final action on those petitions before small 
refineries are required to comply with their 2019 obligations. Second, 
EPA has proposed to revise the 2020 standards as well as to establish 
the 2021 and 2022 standards.\3\ There is good cause for this action to 
be effective upon signature to relieve regulated entities of the 
requirement to comply with their 2020 obligations that may be modified 
by the final 2020-2022 rule; any delay in the effectiveness of this 
action past January 31, 2022, would result in confusion among regulated 
entities regarding the timing of their compliance obligations.
---------------------------------------------------------------------------

    \1\ This action postdates the previous 2019 compliance reporting 
deadline of November 30, 2021 (86 FR 17073, 17074; April 1, 2021).
    \2\ 86 FR 70999 (December 14, 2021) (hereinafter ``the Proposed 
SRE Denial'').
    \3\ 86 FR 72436 (December 21, 2021) (hereinafter ``the 2020-2022 
rule'').
---------------------------------------------------------------------------

Does this action apply to me?

    Entities potentially affected by this final rule are those involved 
with the production, distribution, and sale of transportation fuels, 
including gasoline, diesel, and renewable fuels such as ethanol, 
biodiesel, renewable diesel, and biogas. Potentially affected 
categories include:

------------------------------------------------------------------------
                                        NAICS
               Category                  \1\     Examples of potentially
                                         code       affected entities
------------------------------------------------------------------------
Industry.............................   324110  Petroleum refineries.
Industry.............................   325193  Ethyl alcohol
                                                 manufacturing.
Industry.............................   325199  Other basic organic
                                                 chemical manufacturing.
Industry.............................   424690  Chemical and allied
                                                 products merchant
                                                 wholesalers.
Industry.............................   424710  Petroleum bulk stations
                                                 and terminals.
Industry.............................   424720  Petroleum and petroleum
                                                 products merchant
                                                 wholesalers.
Industry.............................   221210  Manufactured gas
                                                 production and
                                                 distribution.
Industry.............................   454319  Other fuel dealers.
------------------------------------------------------------------------
\1\ North American Industry Classification System (NAICS).

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be affected by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be affected by this action. Other types of entities 
not listed in the table could also be affected. To determine whether 
your entity would be affected by this action, you should carefully 
examine the applicability criteria in 40 CFR part 80. If you have any 
questions regarding the applicability of this action to a particular 
entity, consult the person listed in the FOR FURTHER INFORMATION 
CONTACT section.

Table of Contents

I. Background and Extension of Deadlines
    A. Extension of the 2019 RFS Compliance Reporting Deadline for 
Small Refineries
    B. Extension of the 2020, 2021, and 2022 RFS Compliance 
Reporting Deadline for All Obligated Parties
    C. Corresponding Attest Engagement Reporting Deadlines
    D. Annual Compliance and Attest Engagement Reporting Deadlines 
Based on Effective Date
    E. Severability
II. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act (NTTAA) and 
1 CFR Part 51
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Congressional Review Act (CRA)
III. Statutory Authority

I. Background and Extension of Deadlines

    The RFS regulations establish deadlines for obligated parties with 
renewable volume obligations (RVOs) to submit annual compliance reports 
to EPA, and later deadlines for the same parties to submit associated 
attest engagement reports. Under the previous RFS regulations, 
obligated parties needed to submit compliance reports for each calendar 
year by March 31 of the following year and the associated attest 
engagements by June 1 of the following year.\4\ On April 1, 2021, EPA 
extended the deadlines for small refineries to demonstrate compliance 
with their 2019 RFS obligations and for all obligated parties to 
demonstrate compliance with their 2020 RFS obligations.\5\ In that same 
action, we also extended the deadlines for the corresponding attest 
engagements reports.\6\
---------------------------------------------------------------------------

    \4\ See 40 CFR 80.1451(a) and 80.1464(d).
    \5\ 86 FR 17073 (April 1, 2021).
    \6\ Id.
---------------------------------------------------------------------------

    On November 26, 2021, we again proposed to extend certain reporting 
deadlines applicable to the 2019 and 2020 compliance years, and 
additionally to extend certain reporting deadlines for the 2021 
compliance year, due to continued delay in the promulgation of the 2021 
and 2022 standards and uncertainty around EPA's SRE policy.\7\ 
Following this proposal, on December 14, 2021, we issued the Proposed 
SRE Denial, proposing to deny all pending SRE petitions. And on 
December 21, 2021, we proposed the 2020-2022 rule to establish the 2021 
and 2022 standards and to modify the 2020 standards.
---------------------------------------------------------------------------

    \7\ 86 FR 67419 (November 26, 2021).
---------------------------------------------------------------------------

    Table I-1 summarizes the new annual compliance and attest 
engagement reporting deadlines for the 2019-2022 compliance years that 
EPA is finalizing.

[[Page 5698]]

Obligated party commenters generally supported our proposal to extend 
the compliance deadlines, although some suggested that longer 
compliance deadline extensions would be helpful. In contrast, biofuels 
industry groups opposed our proposal and suggested that extensions were 
not necessary or disruptive to the program. We have considered these 
comments, and in some cases (i.e., 2022 deadlines), slightly adjusted 
our regulations in response to the comments.\8\
---------------------------------------------------------------------------

    \8\ Further discussion of the comments received, and our 
responses to them, can be found in the Response to Comments 
document, available in the docket for this action.

 Table I-1--Summary of RFS Annual Compliance and Attest Engagement Reporting Deadlines for Obligated Parties for
                                                    2019-2022
----------------------------------------------------------------------------------------------------------------
                                                      Annual compliance  reporting  Attest engagement  reporting
      Compliance year            Obligated party                deadline                      deadline
----------------------------------------------------------------------------------------------------------------
2019.......................  All obligated parties    March 31, 2020..............  June 1, 2020.
                              (except small
                              refineries).
2019.......................  Small refineries.......  Next quarterly reporting      Next June 1 annual attest
                                                       deadline \a\ after the        engagement reporting
                                                       effective date of the 2021    deadline after the 2019
                                                       standards.                    compliance reporting
                                                                                     deadline for small
                                                                                     refineries.
2020.......................  All obligated parties..  Next quarterly reporting      Next June 1 annual attest
                                                       deadline after the 2019       engagement reporting
                                                       compliance reporting          deadline after the 2020
                                                       deadline for small            compliance reporting
                                                       refineries.                   deadline.
2021.......................  All obligated parties..  Next quarterly reporting      Next June 1 annual attest
                                                       deadline after the 2020       engagement reporting
                                                       compliance reporting          deadline after the 2021
                                                       deadline.                     compliance reporting
                                                                                     deadline.
2022.......................  All obligated parties..  Next quarterly reporting      Next June 1 annual attest
                                                       deadline after either the     engagement reporting
                                                       effective date of the 2023    deadline after the 2022
                                                       standards or the 2021         compliance reporting
                                                       compliance reporting          deadline.
                                                       deadline, whichever is
                                                       later.
----------------------------------------------------------------------------------------------------------------
\a\ The RFS quarterly reporting deadlines are March 31, June 1, September 1, and December 1, as specified in 40
  CFR 80.1451(f)(2).

    We are also finalizing a new approach to setting reporting 
deadlines for obligated parties that will automatically establish the 
annual compliance and attest engagement reporting deadlines for a given 
compliance year based on the effective date of the subsequent 
compliance year's standards, if such a date is after the March 31 
regulatory deadline. We discuss this new approach in more detail in 
section I.D. Comments from both obligated parties and biofuels industry 
groups generally opposed the automatic extensions of the reporting 
deadlines. One obligated party commenter stated that an approach for 
automatic extensions should instead be considered as part of EPA's 
upcoming ``Set Rule'' for years 2023 and beyond. Biofuels industry 
groups stated that creating a system for automatic extensions of the 
reporting deadlines would disincentivize EPA from promulgating future-
year standards on time. We have considered these comments, but we have 
concluded that having regulations in place that remove one source of 
uncertainty in the RFS program, were EPA to ever again be late in 
promulgating standards, is in the best interest of our implementation 
of the program, as it will render future rulemakings like this one to 
extend compliance deadlines unnecessary and prevent placing an 
unnecessary burden on obligated parties to prepare, submit, and then 
possibly retract and revise compliance reports for deadlines that were 
later extended. Therefore, we are finalizing our approach as 
proposed.\9\
---------------------------------------------------------------------------

    \9\ Further discussion of the comments received on the automatic 
reporting deadline extensions, and our responses to them, can be 
found in section 3 of the Response to Comments document, available 
in the docket for this action.
---------------------------------------------------------------------------

A. Extension of the 2019 RFS Compliance Reporting Deadline for Small 
Refineries

    For small refineries, we are extending the 2019 compliance 
reporting deadline to the next quarterly reporting deadline after the 
effective date of the 2021 standards, as proposed.\10\ In December 
2021, EPA proposed two RFS actions that, if finalized, are likely to 
affect 2019 compliance for small refineries. First, in the 2020-2022 
rule, we proposed to lower the existing 2020 standards. As explained in 
that proposal, this revision is justified by decreased transportation 
fuel demand due to the COVID-19 pandemic and due to a potential change 
in approach to how EPA evaluates SRE petitions compared to the policy 
that was in place at the time the 2020 standards were finalized. 
Second, in the Proposed SRE Denial, we proposed to deny all pending SRE 
petitions currently before EPA.\11\ The comment periods for these 
actions close after both the previous 2019 compliance deadline for 
small refineries and the previous 2020 compliance deadline for all 
obligated parties. Because we have not yet made a final decision on the 
SRE petitions nor finalized changes to the 2020 standards, and given 
the continued uncertainty surrounding SREs under the RFS program, we 
are finalizing our proposed extension of the 2019 compliance deadline 
until the next quarterly reporting deadline after the 2021 standards 
become effective.\12\ We note also that, if we adjust the 2020 
standards downward as proposed in the 2020-2022 rule, additional 
Renewable Identification Numbers (RINs) will likely become available in 
the marketplace for small refineries to demonstrate compliance with 
their 2019 obligations.
---------------------------------------------------------------------------

    \10\ The effective date of 2021 standards is generally expected 
to be 60 days after publication of the action establishing the 
standards in the Federal Register.
    \11\ EPA currently has before it over 60 SRE petitions for 2019-
2021.
    \12\ A small refinery may petition EPA for an exemption from its 
RFS obligations under 40 CFR 80.1441(e)(2).
---------------------------------------------------------------------------

    As an example of the potential timing of this deadline, if the 
final rule establishing the 2021 standards is published in the Federal 
Register on May 15, 2022, then the effective date of the 2021 standards 
would be 60 days later on July 14, 2022, and the 2019 compliance 
reporting deadline for small refineries would be September 1, 2022, 
because that would be the next quarterly reporting deadline after the 
effective date of the 2021 standards.\13\ We are

[[Page 5699]]

tying the 2019 compliance reporting deadline to the effective date of 
the 2021 standards to allow for the proper sequencing of deadlines such 
that 2019 compliance will be complete prior to 2020 compliance, and 
2020 compliance will be complete prior to 2021 compliance, given the 
continued delay in promulgating the 2021 standards. As noted earlier, 
we proposed to revise the 2020 standards in the 2020-2022 rule; thus, 
the 2020 standards may be revised along with the promulgation of the 
2021 standards. The compliance schedule finalized in this action 
sequences the 2019 and 2020 compliance reporting deadlines to eliminate 
the need for small refineries to demonstrate compliance with their 2020 
obligations before EPA takes a final action on revising the 2020 
standards.
---------------------------------------------------------------------------

    \13\ Table I.C-1 illustrates this example deadline for 2019 
based on an effective date of July 14, 2022.
---------------------------------------------------------------------------

    On January 24, 2020, the U.S. Court of Appeals for the Tenth 
Circuit issued a decision in Renewable Fuels Association v. EPA (RFA) 
invalidating on multiple grounds three SREs granted by EPA.\14\ The 
small refineries whose SREs were invalidated by the court in the RFA 
case sought rehearing from the Tenth Circuit, which was denied on April 
7, 2020.\15\ Thus, the Tenth Circuit's decision was not final until 
after the 2019 compliance reporting deadline of March 31, 2020, had 
already passed. On September 4, 2020, the small refinery intervenors in 
that suit filed a petition for a writ of certiorari from the U.S. 
Supreme Court, which was granted on January 8, 2021, in HollyFrontier 
v. RFA.\16\ On June 25, 2021, the Supreme Court issued its opinion in 
HollyFrontier.\17\ In line with this case law, EPA has proposed to deny 
all of the pending SRE petitions in the Proposed SRE Denial, but as the 
comment period for that action is still ongoing, EPA has not yet made a 
final decision and there remains uncertainty about the resolution of 
the 2019 and other pending SRE petitions at this time.
---------------------------------------------------------------------------

    \14\ Renewable Fuels Ass'n v. EPA, 948 F.3d 1206 (10th Cir. 
2020) (RFA).
    \15\ Order, RFA, No. 18-9533 (10th Cir. Apr. 7, 2020).
    \16\ HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels 
Ass'n, 114 S.Ct. 2172 (2021).
    \17\ Id. at 2181.
---------------------------------------------------------------------------

    Therefore, we believe it appropriate to extend the 2019 compliance 
reporting deadline for small refineries as proposed. Additionally, 
because we proposed to modify the 2020 standards in the 2020-2022 rule, 
RIN availability in the market is likely to change due to the two-year 
``lifespan'' of RINs. Obligated parties may satisfy up to 20 percent of 
their individual 2020 obligations through the use of 2019 RINs. If 
finalized, our proposed reductions to the 2020 volumes would likely 
result in additional 2019 RINs being available in the market as parties 
make adjustments to their RIN holdings. These 2019 RINs could thus 
become available to small refineries for compliance with their 2019 RFS 
obligations. We believe that it is appropriate to extend the 2019 
compliance reporting deadline only for small refineries because it is 
only their compliance requirements that have been affected by the 
recent HollyFrontier and RFA decisions. We are extending this 
flexibility to all small refineries regardless of whether they have an 
SRE petition for 2019 pending before EPA. All other obligated parties' 
compliance obligation deadlines for 2019 have already passed and remain 
unchanged.\18\
---------------------------------------------------------------------------

    \18\ The 2019 compliance and attest engagement reporting 
deadlines were March 31, 2020, and June 1, 2020, respectively.
---------------------------------------------------------------------------

    We recognize that some small refineries have already submitted 
their 2019 compliance reports. However, we will allow all small 
refineries to revisit their 2019 compliance reports before their new 
2019 compliance reporting deadline. This means that if a small refinery 
carried forward a deficit to demonstrate compliance for 2019 by 
November 30, 2021, but later receives an SRE for 2019 or retires RINs 
in accordance with its RVOs, that initial decision to carry forward a 
deficit will not constitute a carry-forward deficit (i.e., failing to 
meet the requirement to retire sufficient RINs as described in 40 CFR 
80.1427(a)(1)) that would make the small refinery ineligible to do the 
same for 2020 under 40 CFR 80.1427(b). Small refineries that did not 
submit a compliance report by November 30, 2021, will need to submit a 
compliance report to comply with the new 2019 compliance reporting 
deadline, unless they receive an exemption for 2019.
    This deadline extension will apply only to those parties who meet 
the definition of small refinery in Clean Air Act (CAA) section 
211(o)(1)(k) and 40 CFR 80.1441(e)(2)(iii) for the 2019 compliance 
year. Limiting the extension in this way is appropriate because only 
small refineries' compliance obligations are affected by the 
HollyFrontier and RFA opinions and it is consistent with our 
eligibility requirements regarding SREs. We recognize that, in recent 
years, we have determined that some parties who have petitioned for 
SREs have been deemed ineligible by EPA, often due to the refinery's 
throughput (i.e., more than 75,000 barrels of crude oil per day) or the 
nature of their business (i.e., not a petroleum refinery). The parties 
that EPA has found ineligible because they do not meet the definition 
of small refinery in recent years will similarly not be eligible for 
the 2019 compliance date extension for small refineries.
    We note that all of the existing regulatory flexibilities for small 
refineries--including the ability to satisfy up to 20 percent of their 
2019 RVOs using 2018 carryover RINs under 40 CFR 80.1427(a)(5) and the 
ability to carry forward a deficit from 2019 to 2020 if they did not 
carry forward a deficit from 2018 under 40 CFR 80.1427(b)--continue to 
be available to them to demonstrate compliance for 2019 by the new 2019 
compliance reporting deadline. This means that small refineries that 
carried forward a deficit for 2019 in their initial 2019 compliance 
reports (filed in 2020 or 2021) can reverse that decision in new 
compliance reports and retain their ability to carry forward a deficit 
for 2020. It also means that small refineries that did not submit a 
2019 compliance report by November 30, 2021, can also carry forward a 
deficit for 2020. Finally, small refineries can either carry forward a 
deficit for 2019 (if they did not do so for 2018) or for 2020 (if they 
do not do so for 2019).

B. Extension of the 2020, 2021, and 2022 RFS Compliance Reporting 
Deadline for All Obligated Parties

    As proposed, we are finalizing the extension of the 2020 compliance 
reporting deadline for all obligated parties from January 31, 2022, to 
the next quarterly reporting deadline after the 2019 compliance 
reporting deadline for small refineries, and the extension of the 2021 
compliance reporting deadline for all obligated parties from March 31, 
2022, to the next quarterly reporting deadline after the 2020 
compliance reporting deadline. Also, in response to comments and in 
order to ensure proper sequencing of the compliance reporting 
deadlines, we are extending the 2022 compliance reporting deadline for 
all obligated parties from March 31, 2023, to the next quarterly 
reporting deadline after either the effective date of the 2023 
standards or the 2021 compliance reporting deadline, whichever is 
later. We are doing so because EPA has not yet established the 2021 or 
2022 standards, including applicable volumes, and we recognize the 
importance to obligated parties of planning their compliance for a 
given calendar year by understanding their obligations for the years 
before and

[[Page 5700]]

after.\19\ This is particularly true given the two-year ``lifespan'' 
for RINs, such that 2020 RINs can be used for compliance with either 
2020 or 2021 obligations. Compliance obligations for 2021 and 2022 will 
remain unknown until EPA finalizes the 2021 and 2022 standards. 
Additionally, EPA has proposed to modify the 2020 standards in the 
2020-2022 rule. Delaying the 2020 compliance deadline until after EPA 
completes its revision of the 2020 standards would avoid unnecessary 
RIN retirements and corresponding unretirements due to potential 
modification of the standards. Finally, several commenters noted that 
it is likely that the 2022 compliance reporting deadline will be 
affected by the new sequencing of the 2019, 2020, and 2021 compliance 
reporting deadlines, and recommended that EPA take the same approach to 
extending the 2022 deadline as for 2020 and 2021. We agree with the 
commenters and are extending the 2022 compliance reporting deadline as 
well. However, unlike 2019, 2020, and 2021, for 2022 we have not yet 
proposed the subsequent year's standards (i.e., the 2023 standards). 
Therefore, we are establishing the 2022 compliance reporting deadline 
as the next quarterly reporting deadline after either the effective 
date of the 2023 standards or the 2021 compliance reporting deadline, 
whichever is later. This will ensure that obligated parties know their 
2023 obligations before complying with their 2022 obligations, 
consistent with our approach for 2019-2021.
---------------------------------------------------------------------------

    \19\ For discussion of obligated parties' interest in such 
extensions in past actions, see 80 FR 33100, 33149-50 (June 10, 
2015) and 78 FR 49794, 49823 (August 15, 2013).
---------------------------------------------------------------------------

    These deadline extensions will allow proper sequencing of the 
compliance dates. It will allow small refineries to complete compliance 
with their 2019 obligations before having to comply with their 2020 RFS 
obligations. It will also allow for obligated parties to make 
additional RIN acquisitions, transfers, transactions, and retirements 
prior to the compliance reporting deadlines by providing at least 60 
days between each of the 2019-2022 compliance reporting deadlines.
    Using the prior example, if the final rule establishing the 2021 
standards has an effective date of July 14, 2022, the 2019 compliance 
reporting deadline for small refineries would be September 1, 2022. 
Furthermore, by operation of law, under this scenario, the 2020 
compliance reporting deadline for all obligated parties would be 
December 1, 2022, the 2021 compliance reporting deadline would be March 
31, 2023, and the 2022 compliance reporting deadline would be June 1, 
2023.\20\
---------------------------------------------------------------------------

    \20\ Table I.C-1 illustrates these example deadlines for 2020, 
2021, and 2022 based on an effective date of July 14, 2022.
---------------------------------------------------------------------------

C. Corresponding Attest Engagement Reporting Deadlines

    We are finalizing the deadline extension for attest engagement 
reports required under 40 CFR 80.1464(g) for small refineries for 2019 
compliance demonstrations and for all obligated parties for 2020 and 
2021 compliance demonstrations to the next June 1 annual attest 
engagement reporting deadline after the applicable 2019-2021 compliance 
reporting deadline. Also, in response to comments and in order to 
ensure proper sequencing of the attest engagement reporting deadlines, 
we are extending the 2022 attest engagement reporting deadline for all 
obligated parties from June 1, 2023, to the next June 1 annual attest 
engagement reporting deadline after the 2022 compliance reporting 
deadline. Using the prior example where the final rule establishing the 
2021 standards has an effective date of July 14, 2022, under this 
approach, the 2019 attest engagement reporting deadline for small 
refineries and the 2020 and 2021 attest engagement reporting deadline 
for all obligated parties would be due on June 1, 2023, and the 2022 
attest engagement reporting deadline for all obligated parties would be 
due on June 1, 2024.
    We are extending these attest engagement reporting deadlines to 
ensure enough time for attest auditors to reasonably conduct the 2019, 
2020, 2021, and 2022 attest engagement reports. Because the annual 
attest engagement reporting deadline occurs only once each year (June 
1), it is likely that with the new compliance deadline extensions, 
several of the affected 2019, 2020, 2021, and 2022 attest engagement 
reports will be due on the same June 1 deadline (either in 2023 or 
2024). This change will therefore minimize confusion and maximize 
efficiency for the attest auditors to conduct and prepare reports.
    Table I.C-1 illustrates the example deadlines for the 2019-2022 
annual compliance and attest engagement reporting deadlines. Note that 
these dates do not represent the actual reporting deadlines, which will 
be based on the effective date of the 2021 standards. We will post the 
actual reporting deadlines on our reporting deadlines website.\21\
---------------------------------------------------------------------------

    \21\ The reporting deadlines website is available at: https://www.epa.gov/fuels-registration-reporting-and-compliance-help/reporting-deadlines-fuel-programs.

 Table I.C-1--Example RFS Annual Compliance and Attest Engagement Reporting Deadlines for Obligated Parties \a\
----------------------------------------------------------------------------------------------------------------
                                                            Annual compliance      Attest  engagement  reporting
       Compliance year             Obligated party         reporting deadline                deadline
----------------------------------------------------------------------------------------------------------------
2019........................  All obligated parties     March 31, 2020..........  June 1, 2020.
                               (except small
                               refineries).
2019........................  Small refineries........  September 1, 2022.......  June 1, 2023.
2020........................  All obligated parties...  December 1, 2022........  June 1, 2023.
2021........................  All obligated parties...  March 31, 2023..........  June 1, 2023.
2022........................  All obligated parties...  June 1, 2023............  June 1, 2024.
----------------------------------------------------------------------------------------------------------------
\a\ Example based on an effective date of July 14, 2022, for the final rule establishing the 2021 standards.

D. Annual Compliance and Attest Engagement Reporting Deadlines Based on 
Effective Date

    For annual compliance and annual attest engagement reporting 
deadlines for 2023 and beyond, we are finalizing the same approach as 
that outlined above for 2019-2022. Under this approach, for 2023 and 
beyond, the annual compliance reporting deadline will be the latest 
date of the following:
     March 31st of the subsequent calendar year;

[[Page 5701]]

     The next quarterly reporting deadline after the effective 
date of the subsequent compliance year's standards (typically 60 days 
after publication of the final rule in the Federal Register); or
     The next quarterly reporting deadline under 40 CFR 
80.1451(f)(2) after the annual compliance reporting deadline for the 
prior compliance year.
    Under this approach, which is consistent with the proposal, the 
annual compliance reporting deadline will also be at least 60 days 
after publication of the subsequent year's standards in the Federal 
Register and 60 days after the prior year's compliance reporting 
deadline. This approach will also avoid EPA having to repeatedly extend 
compliance reporting deadlines for obligated parties should 
promulgation of the subsequent year's standards be delayed, and will 
provide regulatory certainty for obligated parties. We will continue to 
strive to promulgate the standards for a given compliance year prior to 
the beginning of that year, and the provisions finalized in this action 
will apply only in the unusual circumstance where promulgation of the 
following year's standards are significantly delayed.
    Similarly, for 2023 and beyond, we are tying the annual attest 
engagement reporting deadline to the effective date of the standards in 
the same manner as finalized for the 2019-2022 annual attest engagement 
reporting deadlines, which will make it the latest date of the 
following:
     June 1 of the subsequent calendar year; or
     The next June 1 annual attest engagement reporting 
deadline after the annual compliance reporting deadline.
    Under this approach, annual attest engagement reports will be due 
at least 60 days after the annual compliance reporting deadline like 
under the current regulations.
    To help communicate the annual compliance and annual attest 
engagement reporting deadlines, we will also post the annual compliance 
and annual attest engagement reporting deadlines on our website.\22\
---------------------------------------------------------------------------

    \22\ Information related to annual compliance and attest 
engagement reporting is available at: https://www.epa.gov/fuels-registration-reporting-and-compliance-help/reporting-fuel-programs. 
The annual compliance and attest engagement reporting deadlines will 
be posted at: https://www.epa.gov/fuels-registration-reporting-and-compliance-help/reporting-deadlines-fuel-programs.
---------------------------------------------------------------------------

E. Severability

    We intend for our action in this final rule modifying the 
compliance reporting deadlines for 2019 for small refineries and 2020, 
2021 and 2022 for all obligated parties, as well as the associated 
annual attest engagement reporting deadlines, to be severable from our 
modifications of the regulations relating to future compliance 
deadlines (i.e., for compliance years 2023 and beyond).

II. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive orders 
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA. OMB has previously approved the information collection 
activities contained in the existing regulations and has assigned OMB 
control number 2060-0725 and 2060-0723. This action only makes a one-
time change in the compliance dates for certain regulated parties and 
adjusts the due date of their compliance reports and attest engagements 
to reflect this change. It does not change the information to be 
collected or increase the frequency of collection.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, EPA concludes that the impact of concern for 
this rule is any significant adverse economic impact on small entities 
and that the agency is certifying that this rulemaking will not have a 
significant economic impact on a substantial number of small entities 
if the rule has no net burden on the small entities subject to the 
rule. This action extends the RFS compliance and attest engagement 
reporting deadlines. We do not anticipate that there will be any costs 
associated with these changes. We have therefore concluded that this 
action will have no net regulatory burden for all directly regulated 
small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. This action imposes 
no enforceable duty on any state, local or tribal governments. 
Requirements for the private sector do not exceed $100 million in any 
one year.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the National Government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

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

    This action does not have tribal implications as specified in 
Executive Order 13175. This rule only affects RFS obligated parties. 
Thus, Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that EPA has reason to believe may disproportionately affect children, 
per the definition of ``covered regulatory action'' in section 2-202 of 
the Executive order. This action is not subject to Executive Order 
13045 because it does not concern an environmental health risk or 
safety risk.

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

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR 
Part 51

    This action does not involve technical standards.

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

    The EPA believes that this action is not subject to Executive Order 
12898 (59 FR 7629, February 16, 1994) because it does establish an 
environmental health or safety standard. This action addresses the RFS 
compliance and attest

[[Page 5702]]

engagement reporting deadlines and does not impact the standards 
themselves.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

III. Statutory Authority

    Statutory authority for this action comes from section 211(o) of 
the Clean Air Act, 42 U.S.C. 7545(o).

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Diesel fuel, Fuel additives, Gasoline, Imports, 
Oil imports, Penalties, Petroleum, Renewable fuel, Reporting and 
recordkeeping requirements.

    Dated: January 27, 2022.
Michael S. Regan,
Administrator.

    For the reasons set forth in the preamble, EPA amends 40 CFR part 
80 as follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

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

    Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).

Subpart M--Renewable Fuel Standard

0
2. Amend Sec.  80.1451 by:
0
a. Revising paragraph (a)(1) introductory text;
0
b. Removing and reserving paragraph (a)(1)(xiv);
0
c. Revising paragraph (f) introductory text; and
0
d. Adding paragraph (f)(1) and headings for paragraphs (f)(2) and (3).
    The revisions and additions read as follows:

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

    (a) * * *
    (1) Annual compliance reports must include all the following 
information:
* * * * *
    (f) Report submission deadlines. The submission deadlines for 
annual and quarterly reports are as follows:
    (1) Annual compliance reports--(i) Obligated parties. (A) Except as 
specified in paragraph (f)(1)(i)(B) of this section, for obligated 
parties, annual compliance reports must be submitted by whichever of 
the following dates is latest:
    (1) March 31 of the subsequent calendar year.
    (2) The next quarterly reporting deadline under paragraph (f)(2) of 
this section after the date the subsequent compliance year's renewable 
fuel standards become effective in Sec.  80.1405(a).
    (3) The next quarterly reporting deadline under paragraph (f)(2) of 
this section after the annual compliance reporting deadline for the 
prior compliance year.
    (B)(1) For obligated parties that meet the requirements for a small 
refinery under Sec.  80.1441(e)(2)(iii), for the 2019 compliance year, 
annual compliance reports must be submitted no later than the next 
quarterly reporting deadline under paragraph (f)(2) of this section 
after the date the 2021 renewable fuel standards become effective in 
Sec.  80.1405(a).
    (2) For the 2020 compliance year, annual compliance reports must be 
submitted no later than the next quarterly reporting deadline in 
paragraph (f)(2) of this section after the deadline in paragraph 
(f)(1)(i)(B)(1) of this section.
    (3) For the 2021 compliance year, annual compliance reports must be 
submitted no later than the next quarterly reporting deadline in 
paragraph (f)(2) of this section after the deadline in paragraph 
(f)(1)(i)(B)(2) of this section.
    (4) For the 2022 compliance year, annual compliance reports must be 
submitted by whichever of the following dates is latest:
    (i) The next quarterly reporting deadline under paragraph (f)(2) of 
this section after the date the 2023 renewable fuel standards become 
effective in Sec.  80.1405(a).
    (ii) The next quarterly reporting deadline in paragraph (f)(2) of 
this section after the deadline in paragraph (f)(1)(i)(B)(3) of this 
section.
    (ii) All other parties. For all parties other than obligated 
parties, annual compliance reports must be submitted by March 31 of the 
subsequent year.
    (iii) Deadline publication. The annual compliance reporting 
deadline will be calculated in accordance with paragraph (f)(1)(i) of 
this section and published on EPA's website.
    (2) Quarterly compliance reports. * * *
    (3) Report certification. * * *
* * * * *

0
3. Amend Sec.  80.1464 by:
0
a. Revising paragraph (d); and
0
b. Removing and reserving paragraph (g); and
0
c. Removing paragraph (i)(3).
    The revision reads as follows:

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

* * * * *
    (d) Report submission deadlines--(1) Obligated parties. (i) Except 
as specified in paragraph (d)(1)(ii) of this section, for obligated 
parties, annual attest engagement reports must be submitted to EPA by 
whichever of the following dates is latest:
    (A) June 1 of the subsequent calendar year.
    (B) The next June 1 annual attest engagement reporting deadline 
after the annual compliance reporting deadline under Sec.  
80.1451(f)(1)(i)(A).
    (ii)(A) For obligated parties that meet the requirements for a 
small refinery under Sec.  80.1441(e)(2)(iii), for the 2019 compliance 
year, annual attest engagement reports must be submitted to EPA no 
later than the next June 1 annual attest engagement reporting deadline 
after the annual compliance reporting deadline under Sec.  
80.1451(f)(1)(i)(B)(1).
    (B) For obligated parties, for the 2020 compliance year, annual 
attest engagement reports must be submitted to EPA no later than the 
next June 1 annual attest engagement reporting deadline after the 
annual compliance reporting deadline under Sec.  
80.1451(f)(1)(i)(B)(2).
    (C) For obligated parties, for the 2021 compliance year, annual 
attest engagement reports must be submitted to EPA no later than the 
next June 1 annual attest engagement reporting deadline after the 
annual compliance reporting deadline under Sec.  
80.1451(f)(1)(i)(B)(3).
    (D) For obligated parties, for the 2022 compliance year, annual 
attest engagement reports must be submitted to EPA no later than the 
next June 1 annual attest engagement reporting deadline after the 
annual compliance reporting deadline under Sec.  
80.1451(f)(1)(i)(B)(4).
    (2) All other parties. All parties other than obligated parties 
must submit annual attest engagement reports to EPA by June 1 of the 
subsequent calendar year.
    (3) Deadline publication. The annual attest engagement reporting 
deadline will be calculated in accordance with paragraph (d)(1) of this 
section and published on EPA's website.
* * * * *
[FR Doc. 2022-02149 Filed 1-31-22; 8:45 am]
BILLING CODE 6560-50-P