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Regulation of Fuels and Fuel Additives: Extension of Compliance and Attest Engagement Reporting Deadlines for 2013 Renewable Fuel Standards


American Government

Regulation of Fuels and Fuel Additives: Extension of Compliance and Attest Engagement Reporting Deadlines for 2013 Renewable Fuel Standards

Gina McCarthy
Environmental Protection Agency
August 8, 2014


[Federal Register Volume 79, Number 153 (Friday, August 8, 2014)]
[Rules and Regulations]
[Pages 46353-46356]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18568]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2014-0575; FRL 9914-88-OAR]
RIN 2060-AS29


Regulation of Fuels and Fuel Additives: Extension of Compliance 
and Attest Engagement Reporting Deadlines for 2013 Renewable Fuel 
Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is taking direct 
final action to extend two reporting deadlines for the 2013 compliance 
period under the Renewable Fuel Standard (RFS) program. This action 
specifically affects the annual compliance and attest engagement 
reporting requirement deadlines for regulated parties. The annual 
compliance reports and attest engagement reports for the 2013 RFS 
compliance period will not be due until 30 days and 90 days, 
respectively, following publication of the final rule establishing the 
2014 renewable fuel percentage standards for cellulosic biofuel, 
biomass-based diesel, advanced biofuel and total renewable fuel in the 
Federal Register. This action ensures timely amendment of existing 
deadlines, before compliance obligations would otherwise go into 
effect.

DATES: This rule is effective on September 29, 2014 without further 
notice, unless the EPA receives adverse comment by September 15, 2014. 
If the EPA receives adverse comment, we will publish a timely 
withdrawal notice in the Federal Register informing the public that the 
rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2014-0575, 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-
2014-0575. The 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 the 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 the EPA without

[[Page 46354]]

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, the 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 the EPA cannot read your comment due 
to technical difficulties and cannot contact you for clarification, the 
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 the 
EPA's public docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in www.regulations.gov or in hard copy at the Air and Radiation Docket 
and Information Center, EPA/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 the EPA using a direct final rule?

    The EPA is publishing this rule without a prior proposed rule 
because we view this as a noncontroversial action and anticipate no 
adverse comment. However, in the ``Proposed Rules'' section of today's 
Federal Register, we are publishing a separate document that will serve 
as the proposed rule to extend certain reporting requirement deadlines 
for the 2013 RFS compliance period 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 the EPA receives adverse comment, 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 a 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:

----------------------------------------------------------------------------------------------------------------
                                                                               Examples of potentially regulated
                 Category                   NAICS \1\ Codes    SIC \2\ Codes                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).
\2\ Standard Industrial Classification (SIC) system code.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that the EPA is now 
aware could be potentially regulated by this action. Other types of 
entities not listed in the table could also be regulated. To determine 
whether your 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.

III. Background and Purpose

    The EPA is today taking action to amend existing regulatory 
deadlines for regulated parties under the RFS program regarding the 
submission of annual compliance reports and attest engagement reports 
for the 2013 RFS compliance period.
    We received comments on our November 29, 2013 proposed rulemaking 
to establish the 2014 renewable fuel percentage standards for 
cellulosic biofuel, biomass-based diesel, advanced biofuel and total 
renewable fuel \1\ reiterating the importance to obligated parties of 
knowing their RFS obligations for the 2014 RFS compliance period prior 
to the compliance demonstration deadline for the 2013 RFS compliance 
period. The EPA recognized the value of this timing to obligated 
parties in the 2013 RFS final rule, and for that reason delayed the 
normally applicable February 28 compliance demonstration deadline to 
June 30, 2014 for the 2013 RFS compliance period.\2\ We reasoned at 
that time that an extension to June 30, 2014 would be sufficient in 
light of the expected date of issuance of the final rule establishing 
the 2014 renewable fuel percentage standards for cellulosic biofuel, 
biomass-based diesel, advanced biofuel and total renewable fuel.
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    \1\ 78 FR 71732 (November 29, 2013).
    \2\ 78 FR 49794, 49800 (August 15, 2013).
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    Because the 2014 renewable fuel standards were not final at the 
time the annual compliance reports for the 2013 RFS compliance period 
were coming due, we further extended this reporting deadline until 
September 30, 2014 (as well as the associated deadline for attest 
engagement reports until January 30, 2015).\3\ However, in light of the 
further delay in issuing the final rule establishing the 2014 renewable 
fuel

[[Page 46355]]

percentage standards for cellulosic biofuel, biomass-based diesel, 
advanced biofuel and total renewable fuel, we are issuing this direct 
final rule (with a parallel proposal in the event that we receive 
adverse comments) providing an additional extension of the annual 
compliance and attest engagement reporting deadlines for the 2013 RFS 
compliance period. Regulated parties will not have to submit annual 
compliance reports and attest engagement reports for the 2013 RFS 
compliance period until 30 days and 90 days, respectively, following 
publication of the final rule establishing the 2014 renewable fuel 
percentage standards for cellulosic biofuel, biomass-based diesel, 
advanced biofuel and total renewable fuel in the Federal Register.
---------------------------------------------------------------------------

    \3\ 79 FR 34242 (June 16, 2014).
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IV. 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 this rulemaking. The extension of the existing regulatory 
deadlines for regulated parties under the RFS program imposes 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 the 
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 amends the 
existing regulatory deadlines for regulated parties under the RFS 
program to submit reports demonstrating their compliance with the 2013 
RFS standards, and to submit corresponding attest engagement reports. 
This action ensures timely amendment of existing deadlines, before 
compliance obligations would otherwise go into effect. The impacts of 
the RFS 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. 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 extends the otherwise applicable 
reporting deadlines.

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 amends the existing 
regulatory deadlines for regulated parties under the RFS program to 
submit reports demonstrating their compliance with the 2013 RFS 
standards, and to submit corresponding attest engagement reports. The 
new deadlines only apply 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 will be 
affected only to the extent they purchase and use regulated fuels. 
Thus, Executive Order 13175 does not apply to this action.

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

    The EPA interprets 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 amends certain reporting deadlines for regulated parties 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)

[[Page 46356]]

directs the 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 the 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, 
the EPA is not considering the use of any voluntary consensus 
standards.

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

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    The 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. The 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).

V. Statutory Authority

    Statutory authority for this action comes from sections 211 and 
301(a) of the Clean Air Act, 42 U.S.C 7545 and 7601(a).

List of Subjects in 40 CFR Part 80

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

    Dated: July 31, 2014.
Gina McCarthy,
Administrator.

    For the reasons set forth in the preamble, title 40, chapter I of 
the Code of Federal Regulations is amended as follows:

PART 80--REGULATION OF FUELS AND FUELS ADDITIVES

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

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

Subpart M--Renewable Fuel Standard

0
2. Section 80.1451 is amended by revising paragraph (a)(1)(xiv) to read 
as follows:


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

    (a) * * *
    (1) * * *
    (xiv) For the 2013 compliance year, annual compliance reports shall 
be submitted within 30 days after publication in the Federal Register 
of the final rule establishing the 2014 renewable fuel percentage 
standards for cellulosic biofuel, biomass-based diesel, advanced 
biofuel and total renewable fuel.
* * * * *

0
3. Section 80.1464 is amended by revising paragraph (g) to read as 
follows:


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

* * * * *
    (g) For the 2013 compliance year, reports required under this 
section shall be submitted to the EPA within 90 days after publication 
in the Federal Register of the final rule establishing the 2014 
renewable fuel percentage standards for cellulosic biofuel, biomass-
based diesel, advanced biofuel and total renewable fuel.

[FR Doc. 2014-18568 Filed 8-7-14; 8:45 am]
BILLING CODE 6560-50-P




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