Notice of April 2022 Alternative Compliance Demonstration Approach for Certain Small Refineries Under the Renewable Fuel Standard Program Publication: Federal Register Agency: Environmental Protection Agency Byline: Joseph Goffman Date: 25 April 2022 Subjects: American Government , The Environment, Petroleum

[Federal Register Volume 87, Number 79 (Monday, April 25, 2022)]
[Notices]
[Pages 24294-24295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08687]


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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2021-0566; FRL-9720-01-OAR]


Notice of April 2022 Alternative Compliance Demonstration 
Approach for Certain Small Refineries Under the Renewable Fuel Standard 
Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: The Environmental Protection Agency (EPA) is providing notice 
of its action to provide an alternative compliance demonstration 
approach (the ``Compliance Action'') to certain small refineries whose 
2018 petitions for small refinery exemptions (SREs) under the Renewable 
Fuel Standard (RFS) program were denied in the April 2022 Denial of 
Petitions for RFS Small Refinery Exemptions (``SRE Denial'') after 
being remanded. EPA is providing this notice for public awareness of 
and the basis for the Compliance Action issued on April 7, 2022.

DATES: April 25, 2022.

FOR FURTHER INFORMATION 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: nelson.karen@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    The Clean Air Act (CAA) provides that a small refinery \1\ may at 
any time petition EPA for an extension of the exemption from the 
obligations of the RFS program for the reason of disproportionate 
economic hardship (DEH).\2\ In evaluating such petitions, the EPA 
Administrator, in consultation with the Secretary of Energy, will 
consider the findings of a Department of Energy (DOE) study and other 
economic factors.\3\ In a separate action issued on April 7, 2022, EPA 
denied 36 small refinery exemption (SRE) petitions for the 2018 
compliance year by finding the petitioning refineries do not face DEH 
caused by compliance with their RFS obligations.\4\
---------------------------------------------------------------------------

    \1\ The CAA defines a small refinery as ``a refinery for which 
the average aggregate daily crude oil throughput for a calendar year 
. . . does not exceed 75,000 barrels.'' CAA section 211(o)(1)(K).
    \2\ CAA section 211(o)(9)(B)(i).
    \3\ CAA section 211(o)(9)(B)(ii).
    \4\ ``April 2022 Denial of Petitions for RFS Small Refinery 
Exemptions,'' EPA-420-R-22-005, April 2022 (hereinafter the ``SRE 
Denial'').
---------------------------------------------------------------------------

II. Compliance Action

    In the Compliance Action,\5\ EPA is providing 31 specific small 
refineries with an alternative approach to demonstrating compliance 
with their RFS renewable volume obligations created by the SRE Denial. 
Each of the specified small refineries had previously been granted an 
SRE for the 2018 compliance year; however, each of their petitions 
again came before the Agency as the result of court remand. The 
Compliance Action is necessary because EPA has determined there are 
extenuating circumstances that warrant an alternative compliance 
demonstration approach that the specified small refineries may use to 
meet their 2018 obligations without retiring any additional RINs.
---------------------------------------------------------------------------

    \5\ ``April 2022 Alternative RFS Compliance Demonstration 
Approach for Certain Small Refineries,'' EPA-420-R-22-006, April 
2022.
---------------------------------------------------------------------------

III. Judicial Review

    Section 307(b)(1) of the CAA governs judicial review of final 
actions by the EPA. This section provides, in part, that petitions for 
review must be filed in the United States Court of Appeals for the 
District of Columbia Circuit: (i) When the agency action consists of 
``nationally applicable . . . final actions taken by the 
Administrator,'' or (ii) when such action is locally or regionally 
applicable, but ``such action is based on a determination of nationwide 
scope or effect and if in taking such action the Administrator finds 
and publishes that such action is based on such a determination.'' For 
locally or regionally applicable final actions, the CAA reserves to the 
EPA complete discretion whether to invoke the exception in (ii) 
described in the preceding sentence.
    This final action is ``nationally applicable'' within the meaning 
of CAA section 307(b)(1). In the alternative, to the extent a court 
finds this final action to be locally or regionally applicable, the 
Administrator is exercising the complete discretion afforded to him 
under the CAA to make and publish a finding that this action is based 
on a determination of ``nationwide scope or effect'' within the meaning 
of CAA section 307(b)(1).\6\ This final action provides an alternative 
approach to demonstrating compliance with the 2018 obligations for 31 
small refineries across the country and applies to small

[[Page 24295]]

refineries located within 16 states in 7 of the 10 EPA regions and in 7 
different Federal judicial circuits.\7\ This final action is based on 
the extenuating circumstances applicable to these 31 small refineries 
and the impacts their compliance with their newly created 2018 
obligations under the existing compliance scheme would have on the RFS 
program. For these reasons, this final action is nationally applicable 
or, alternatively, the Administrator is exercising the complete 
discretion afforded to him by the CAA and hereby finds that this final 
action is based on a determination of nationwide scope or effect for 
purposes of CAA section 307(b)(1) and is hereby publishing that finding 
in the Federal Register.
---------------------------------------------------------------------------

    \6\ In deciding whether to invoke the exception by making and 
publishing a finding that this final action is based on a 
determination of nationwide scope or effect, the Administrator has 
also taken into account a number of policy considerations, including 
his judgment balancing the benefit of obtaining the D.C. Circuit's 
authoritative centralized review versus allowing development of the 
issue in other contexts and the best use of Agency resources.
    \7\ In the report on the 1977 Amendments that revised section 
307(b)(1) of the CAA, Congress noted that the Administrator's 
determination that the ``nationwide scope or effect'' exception 
applies would be appropriate for any action that has a scope or 
effect beyond a single judicial circuit. See H.R. Rep. No. 95-294 at 
323, 324, reprinted in 1977 U.S.C.C.A.N. 1402-03.
---------------------------------------------------------------------------

    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the District of Columbia Circuit by June 24, 2022.

Joseph Goffman,
Principal Deputy Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2022-08687 Filed 4-22-22; 8:45 am]
BILLING CODE 6560-50-P