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Amendments Related to: Tier 3 Motor Vehicle Emission and Fuel Standards


American Government

Amendments Related to: Tier 3 Motor Vehicle Emission and Fuel Standards

Gina McCarthy
Environmental Protection Agency
22 April 2016


[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Rules and Regulations]
[Pages 23641-23645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08912]



[[Page 23641]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2011-0135; FRL-9941-85-OAR]
RIN 2060-AS36


Amendments Related to: Tier 3 Motor Vehicle Emission and Fuel 
Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action on technical corrections and clarifications withdrawn from a 
previous direct final rule that amended provisions from the April 2014 
Tier 3 final rulemaking and the July 2014 Quality Assurance Program 
final rulemaking. The regulatory changes being finalized in this final 
rule correct errors identified by the commenters and provide more 
clarity in the regulations to ensure that the regulations properly 
reflect the requirements established in those rules.

DATES: This final rule is effective on June 21, 2016.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2011-0135. All documents in the docket are 
listed on the http://www.regulations.gov Web site. 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, is not placed on the 
Internet and will be publicly available only in hard copy form. 
Publicly available docket materials are available electronically 
through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Julia MacAllister, Office of 
Transportation and Air Quality, Assessment and Standards Division 
(ASD), Environmental Protection Agency, 2000 Traverwood Drive, Ann 
Arbor MI 48105; Telephone number: (734) 214-4131; 
macallister.julia@epa.gov.

SUPPLEMENTARY INFORMATION: 

Does this action apply to me?

    Entities potentially affected by this rule include gasoline 
refiners and importers, ethanol producers, ethanol denaturant 
producers, butane and pentane producers, gasoline additive 
manufacturers, transmix processors, terminals, and fuel distributors.
    Potentially regulated categories include:

----------------------------------------------------------------------------------------------------------------
                Category                    NAICS \a\ Code        Examples of potentially affected entities
----------------------------------------------------------------------------------------------------------------
Industry................................             324110  Petroleum refineries (including importers).
Industry................................             325110  Butane and pentane manufacturers.
Industry................................             325193  Ethyl alcohol manufacturing.
Industry................................     324110, 211112  Ethanol denaturant manufacturers.
Industry................................             211112  Natural gas liquids extraction and fractionation.
Industry................................             325199  Other basic organic chemical manufacturing.
Industry................................             486910  Natural gas liquids pipelines, refined petroleum
                                                              products pipelines.
Industry................................             424690  Chemical and allied products merchant wholesalers.
Industry................................             325199  Manufacturers of gasoline additives.
Industry................................             424710  Petroleum bulk stations and terminals.
Industry................................             493190  Other warehousing and storage--bulk petroleum
                                                              storage.
----------------------------------------------------------------------------------------------------------------
\a\ 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 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 are regulated by this action, you should carefully 
examine the applicability criteria in the referenced regulations. If 
you have any questions regarding the applicability of this action to a 
particular entity, consult the person listed in the preceding FOR 
FURTHER INFORMATION CONTACT section.

Table of Contents

I. Introduction
II. Quality Assurance Program Amendments
III. Tier 3 Gasoline Sulfur Program Amendments
IV. Statutory and Executive Order Reviews

I. Introduction

    In this action we are finalizing amendments withdrawn from a 
February 2015 direct final rule and parallel Notice of Proposed 
Rulemaking (80 FR 9078 and 80 FR 8826, February 19, 2015). Both of 
those actions were initiated to correct and clarify various provisions 
of the Tier 3 Motor Vehicle Emission and Fuel Standards (``Tier 3'') 
rule without either expanding or making substantive changes to the 
applicable provisions. We also stated that if we received adverse 
comment by April 6, 2015, as to any part of the direct final rule, 
those parts would be withdrawn by publishing a timely notice in the 
Federal Register. We received adverse comment on three specific 
amendments--two provisions intended to correct and clarify portions of 
the Tier 3 rule (79 FR 23414, April 28, 2014) and one intended to 
clarify an aspect of the Renewable Fuel Standard (RFS) Renewable 
Identification Number (RIN) Quality Assurance Program (``QAP'') rule 
(79 FR 42078, July 18, 2014). We withdrew all of the proposed 
amendments that received adverse comment, and they did not take effect. 
These changes are discussed in Sections II and III.

II. Quality Assurance Program Amendments for the Renewable Fuel 
Standard Program

    In the final QAP rule (79 FR 42078, July 18, 2014), the EPA added 
additional product transfer document (PTD) requirements for renewable 
fuels that informed parties who took ownership of renewable fuel that 
they would need to (a) use the fuel as it was intended, i.e., for 
transportation use; and (b) incur a renewable volume obligation (RVO) 
if the fuel was exported. Shortly after publication of the QAP final 
rule, we received questions on whether these PTD requirements would 
apply downstream to the end users, including residential heating oil 
owners and individuals filling up their vehicle fuel tanks at fuel 
retail stations. The EPA provides downstream end-user exemptions to the 
PTD requirements in other fuels programs, and the February 2015 direct 
final rule included similar exemptions for RFS PTD requirements. 
However, when the introductory text of 40 CFR 80.1453(a) was amended in 
the February 2015 direct final rule and parallel

[[Page 23642]]

proposed rule to provide these exemptions for RFS PTD requirements, the 
words ``custody or'' were inadvertently added. The addition of the 
language ``custody or'' would have further changed this provision such 
that we would also be adding PTD requirements to the transfer of 
custody of renewable fuels, which was not our intent. We received 
several comments pointing out that this would be costly to industry and 
not beneficial to the RFS program. Commenters noted that applying PTD 
requirements to transfers of custody went beyond the PTD requirements 
of all other 40 CFR part 80 fuels programs, and would impose a new 
obligation on several parties in the fuel supply chain who otherwise do 
not have specific PTD obligations.
    The February 2015 direct final rule and parallel proposal also 
included an amendment to the introductory text of 40 CFR 80.1453(a)(12) 
to remove an extraneous reference to Sec.  80.1433, as this section 
does not exist in the regulations (80 FR 9084, February 19, 2015). We 
did not receive any adverse comments on this amendment.
    In this action, we are finalizing the originally intended changes 
to 40 CFR 80.1453: In the introductory text of paragraph (a), we are 
providing downstream end-user exemptions to the PTD requirements in the 
RFS program similar to other EPA fuels programs, without the ``custody 
or'' language that was inadvertently added in the February 2015 direct 
final rule and parallel proposal; and, in the introductory text of 
paragraph (a)(12), we are deleting the extraneous reference to Sec.  
80.1433.

III. Tier 3 Gasoline Sulfur Program Amendments

    After promulgation of the Tier 3 final rulemaking (79 FR 23414, 
April 28, 2014), we discovered some typographical errors and other 
imprecise language in the fuels regulations of 40 CFR part 80 that we 
believed would benefit from additional clarity. Subsequently, we 
published amendments to certain provisions, including 40 CFR 80.1616 
and 80.1621 in the February 2015 direct final rule and parallel 
proposal (80 FR 9078 and 80 FR 8826, February 19, 2015). We explained 
that these amendments would correct and/or clarify various provisions 
of the Tier 3 rule without either expanding or making substantive 
changes to the applicable provisions. We received adverse comment on 
the amendments to 40 CFR 80.1616 and 80.1621. We are responding to 
those comments and finalizing changes to these provisions in this 
action, as described further below.

A. Amendments to 40 CFR 80.1616

    In the parallel proposal, we proposed to amend 40 CFR 80.1616(a) to 
correct a numbering error. The regulations currently jump from 
paragraph (a)(3) to (a)(5), so we added a ``Reserved'' paragraph (a)(4) 
for continuity in the February direct final rule. We did not receive 
adverse comment on this amendment. We are now finalizing this amendment 
in this action.
    We also proposed a clarifying amendment to 40 CFR 80.1616(b)(2). In 
the April 2014 Tier 3 final rule, we finalized language in paragraph 
(b)(2) specifying that credits generated relative to the Tier 2 
gasoline sulfur standard of 30 parts per million (ppm) will expire 
``after March 31, 2020, when the 2019 annual compliance report is 
due.'' The intent of this language was to state that unused credits 
(that are still valid for use) that were generated relative to the 30 
ppm Tier 2 gasoline sulfur standard would expire at the end of the 2019 
compliance year (December 31, 2019), and must be reconciled in the 2019 
annual compliance report. Refiners and importers are required to submit 
their annual compliance reports for the 2019 compliance year by March 
31, 2020. (Compliance reports for a given year are due on March 31 of 
the following year.) We also note that in the Tier 3 final rule 
preamble we specified that all credits generated relative to the Tier 2 
30 ppm sulfur standard prior to January 1, 2017 would be valid for five 
years or through December 31, 2019, whichever is earlier. (79 FR 23547, 
April 28, 2014.) In the Tier 3 Gasoline Sulfur program, as with all of 
our 40 CFR part 80 fuels programs, credits that expire on December 31 
of a given year must be retired and reconciled in that year's annual 
compliance report, which is due on March 31 of the following year. The 
language we finalized in the Tier 3 final rule regulations was intended 
to express this. However, following promulgation of the Tier 3 final 
rule, we were contacted by regulated entities who believed that the 
language was confusing and suggested that we should edit the language 
to clarify that the credits themselves expire on December 31, 2019 and 
must be reconciled in the 2019 annual compliance report (due on March 
31, 2020). We proposed to amend the language of 40 CFR 80.1616(b)(2) in 
the proposal accompanying the February 2015 direct final rule to make 
this clarification.
    We received adverse comments on the clarifying amendment regarding 
the expiration of the credits on December 31, 2019. These comments 
advocated for small refiners and small volume refineries to be allowed 
to use credits for five years in all cases (i.e., past December 31, 
2019, for those credits where December 31, 2019 would be earlier than 
five years). The Tier 3 rule established January 1, 2020 as the date 
small refiners and small volume refineries must begin complying with 
the 10 ppm sulfur standard, and also as the date that credits generated 
relative to the Tier 2 program 30 ppm sulfur standard will no longer be 
available to use for compliance. EPA explained in the Tier 3 final rule 
(79 FR 23547, April 28, 2014), that it is important for the Tier 3 
sulfur program to be fully implemented and enforceable beginning 
January 1, 2020, in part because it provides a date certain to give 
auto manufacturers greater confidence in designing their vehicles that 
the in-use sulfur level will be at a 10 ppm average. Allowing credits 
generated against the 30 ppm standard to be used for compliance with 
the 10 ppm standard past December 31, 2019 would likely allow higher 
sulfur levels to continue well beyond January 1, 2020.
    The proposed amendment to 40 CFR 80.1616(b)(2) was simply intended 
to ensure that the regulations clearly reflected EPA's interpretation 
of the applicable requirement,\1\ not to reopen the opportunity for 
comments on the issue of previous actions taken on credit generation 
and use periods for small refiners and small volume refineries. 
Therefore, EPA considers these comments as beyond the scope of the 
technical amendments. However, to the extent a response is required, we 
continue to believe that this issue was properly addressed in the April 
2014 Tier 3 Final Rule, for the reasons stated above and in that 
rulemaking. Therefore, in this action, we are finalizing the amendment 
as originally published in the direct final rule.
---------------------------------------------------------------------------

    \1\ EPA does not believe that the prior language could 
reasonably be interpreted to allow regulated parties to use credits 
in compliance demonstrations after the 2019 demonstration due March 
31, 2020, particularly in light of the preamble discussion, but 
proposed edits to remove any doubt regarding the last date to 
utilize credits and the due date of the associated compliance 
demonstration.
---------------------------------------------------------------------------

B. Amendments to 40 CFR 80.1621

    Following publication of the April 2014 Tier 3 Final Rule, we were 
contacted by some refiners to clarify if or when small volume 
refineries could be disqualified from receiving small volume refinery 
status. At that time, we learned that a provision providing the 
disqualification criteria for small volume refineries had been 
inadvertently deleted from the regulatory text of the Tier 3 final 
rule.

[[Page 23643]]

The regulations specified in 40 CFR 80.1622(e) that a ``refiner who 
qualifies as a small refiner or small volume refinery under this 
subpart and subsequently fails to meet all the qualifying criteria as 
set out in Sec. Sec.  80.1620 and 80.1621 will be disqualified pursuant 
to Sec.  80.1620(f) or Sec.  80.1621(d).'' The criteria and process for 
disqualifying small refiners appears in 40 CFR 80.1620(f), but there is 
no 40 CFR 80.1621(d) that provides similar criteria for disqualifying 
small volume refineries. The provision was inadvertently deleted prior 
to publication of the Tier 3 rule. We proposed to restore the language 
that was intended to be included in 40 CFR part 80, and as previously 
noted, is currently referenced in 40 CFR 80.1622(e).
    We received adverse comment on the amendments to 40 CFR 80.1621 
arguing that:
     EPA neither proposed nor finalized disqualification 
criteria for small volume refineries for the April 2014 Tier 3 rule, 
and thus did not provide regulated entities the opportunity to comment 
on the 20-day notification requirement following disqualification, and 
further that the restoration of 40 CFR 80.1621(d) was not a technical 
amendment.
     The wording of the February 2015 direct final rule and 
parallel proposal is confusing because it does not explicitly state 
exactly when and under which circumstances disqualification could 
occur.
     Small volume refineries should not be constrained or 
treated differently than small refiners regarding disqualification, 
including in the case of growth or mergers.
     The term ``small refinery'' was used instead of the 
correct term ``small volume refinery.''
     EPA did not clarify if credits could continue to be 
generated during the 30-month grace period allowed for a disqualified 
small volume refinery to come into compliance.
     40 CFR 80.1621 should be reorganized--disqualification 
criteria should not appear in this section of the regulations.
    Our intent in the February 2015 direct final rule and parallel 
proposal was to correct an inadvertent omission of regulatory text for 
the disqualification of small volume refineries as discussed in the 
Tier 3 final rule preamble. (This discussion can be found at 79 FR 
23552-53, April 28, 2014.) We explained (in both the April 2014 Tier 3 
final rule, and in the February 2015 actions) that the application 
process for qualification for small volume refinery status was similar 
to the process for small refiner status. We further explained that a 
small refiner that owned and operated a small volume refinery would 
only need to apply for small refiner status. As explained above, the 
fact that the deletion of 40 CFR 80.1621(d) was inadvertent can be seen 
from the cross-reference to this provision in 40 CFR 80.1622(e) in both 
the proposed and final Tier 3 rule regulations. Thus, as previously 
explained, the amendment was intended to fix an omission, which was 
merely to restore 40 CFR 80.1621(d).
    The inadvertent deletion of 40 CFR 80.1621(d) can be seen from the 
reference in 40 CFR 80.1622(e) in both the proposed and final 
regulations, which states that ``A refiner who qualifies as a small 
refiner or small volume refinery under this subpart and subsequently 
fails to meet all the qualifying criteria as set out in Sec. Sec.  
80.1620 and 80.1621 will be disqualified pursuant to Sec.  80.1620(f) 
or Sec.  80.1621(d).'' (79 FR 23662, April 28, 2014.) Further, the Tier 
3 final rule preamble reflected our discussion of the similar treatment 
of both small volume refineries and small refiners, as evidenced by 40 
CFR 80.1622. (79 FR 23549-23550, 23552-23553; April 28, 2014.) 
Moreover, the current small refiner disqualification provision at 40 
CFR 80.1620(f), which contains both disqualification criteria and 20-
day notification requirements, is analogous to the 40 CFR 80.1621(d) 
small volume refinery disqualification provision. Again, the April 2014 
final Tier 3 rule intended for small refiner and small volume refinery 
qualification and disqualification for the Tier 3 program to be 
similar.
    Regarding the comments that EPA should clarify when a disqualifying 
event occurs, we note that this would not be retroactive. Rather, such 
disqualification would occur after the effective date of the amended 40 
CFR 80.1621(d), which is being amended in this regulatory action. For 
example, a refiner whose refinery was approved as a small volume 
refinery in 2015 prior to the restoration of 40 CFR 80.1621(d) would 
not be disqualified before the effective date of this final rulemaking. 
As such, the 30-month grace period afforded to small refiners and small 
volume refineries to come into compliance with the Tier 3 sulfur 
standards would not begin until the point that the refiner or its 
refinery is disqualified.
    With regard to comments about the treatment of small volume 
refineries and small refiners with regard to growth or merger, we note 
that this is outside the scope of the rulemaking. While our intent with 
the Tier 3 program is to treat small refiners and small volume 
refineries similarly, there are some differences between small refiners 
and small volume refineries that require separate treatment, such as in 
the case of mergers.
    As explained in the Tier 3 final rule, the Regulatory Flexibility 
Act (RFA) generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to notice and comment 
rulemaking requirements under the Administrative Procedure Act or any 
other statute unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Small entities include small businesses, small organizations, and small 
governmental jurisdictions. As also explained in the preamble to the 
Tier 3 final rule, in accordance with the Regulatory Flexibility Act, 
as amended by the Small Business Regulatory Enforcement Fairness Act 
(RFA/SBREFA), we assessed the impacts of the rule on small entities. 
For refiners, a small entity is defined in the Small Business 
Administration's size standards \2\ as a refiner whose company-wide 
employee count is 1,500 employees or fewer across all of the refiner's 
facilities. Small volume refineries are individual facilities--and 
these facilities may be owned by a refiner that does not meet the 
definition of a small entity. This assessment can be found in Section 
XII.C of the preamble to the Tier 3 final rule (79 FR 23624-26, April 
28, 2014).
---------------------------------------------------------------------------

    \2\ 13 CFR 121.201.
---------------------------------------------------------------------------

    Further, we finalized a ``small volume refinery'' definition in the 
Tier 3 program because, as stated in the preambles to both the proposed 
and final rulemakings, our modeling during the development of the Tier 
3 program showed that the cost of compliance could be higher for 
certain facilities. We explained that some of these facilities, which 
may be owned by refiners that would not qualify as small entities, 
could potentially benefit from additional time for compliance with the 
Tier 3 program. Thus, we included flexibilities for small volume 
refineries that are similar to those for small refiners.\3\
---------------------------------------------------------------------------

    \3\ 79 FR 23549, April 28, 2014.
---------------------------------------------------------------------------

    We note that the Tier 3 program's small volume refinery provisions 
are separate from the RFS program's small refinery provisions. The RFS 
program is required by statute to provide specific provisions for small 
refineries.\4\ While

[[Page 23644]]

EPA chose to use the same 75,000 barrel threshold for Tier 3 small 
volume refineries that the RFS program uses for small refineries, we 
note that the choice to extend flexibilities to small volume refineries 
in the Tier 3 program was not a statutory requirement as with the RFS 
program. With the exception of the RFS program, the Tier 3 program is 
the first EPA fuels program under 40 CFR part 80 in which we have 
offered flexibilities based on facility size.
---------------------------------------------------------------------------

    \4\ CAA section 211(o)(1)(K).
---------------------------------------------------------------------------

    Regarding comments requesting more clarity in the language of 40 
CFR 80.1621(d), we note that the February 2015 direct final rule and 
parallel proposal used the imprecise term ``small refinery'' in place 
of the correct term ``small volume refinery,'' and we are correcting 
this language in this action. As disqualification is not meant to 
disallow the generation and use of credits during the 30-month period 
that is afforded to small refiners and small volume refineries to come 
into compliance with the Tier 3 program following a disqualifying 
event, clarifying language is also being added with this action. 
Lastly, we believe the comments regarding organization of this section 
of the regulations are outside of the scope. We also note that this 
organization is used in both the small refiner and small volume 
refinery provisions, to ensure that aspects of small refiner and small 
volume refinery qualification and related requirements were 
intentionally contained in the same sections of the regulations to 
provide a more streamlined approach for these parties to locate this 
information.
    Thus, in this action, we are finalizing the restoration of 40 CFR 
80.1621(d), with changes to ensure that the correct terminology 
(``small volume refinery'') is used, and to clarify when a 
disqualifying event could occur and that credits can be generated 
during the 30-month period following disqualification.

IV. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.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 a significant regulatory action that was submitted 
to the Office of Management and Budget (OMB) for review. Any changes 
made in response to OMB recommendations have been documented in the 
docket.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden 
under the PRA, since it merely clarifies and corrects existing 
regulatory language. OMB has previously approved the information 
collection activities contained in the existing regulations and has 
assigned OMB control numbers as noted in the table below.

----------------------------------------------------------------------------------------------------------------
               Regulatory citation                                  Item                      OMB Control No.
----------------------------------------------------------------------------------------------------------------
40 CFR part 80..................................  In-use fuel standards..................             2060-0437
----------------------------------------------------------------------------------------------------------------

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, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. This rule merely clarifies and corrects 
existing regulatory language. We therefore anticipate no costs and 
therefore no regulatory burden associated with this rule. We have 
therefore concluded that this action will have no net regulatory burden 
for all directly regulated small entities.

D. Unfunded Mandates Reform Act

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The 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 merely corrects and clarifies 
regulatory provisions. Tribal governments would be affected only to the 
extent they purchase and use regulated vehicles or engines. 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 the 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 a ``significant energy action'' because it is 
not likely to have a significant adverse effect on the supply, 
distribution or use of energy.

I. National Technology Transfer Advancement Act

    This rulemaking does not involve technical standards.

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

    This action is not expected to have any adverse human health or 
environmental impacts; as a result, the human health or environmental 
risk addressed by this action will not have potential 
disproportionately high and adverse human health or environmental 
effects on minority, low-income or indigenous populations.

[[Page 23645]]

K. Congressional Review Act

    This action is subject to the CRA, and 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).

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Diesel fuel, 
Fuel additives, Gasoline, Imports, Penalties, Petroleum, Reporting and 
recordkeeping requirements.

    Dated: April 12, 2016.
Gina McCarthy,
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. Section 80.1453 is amended by revising paragraphs (a) introductory 
text and (a)(12) introductory text to read as follows:


Sec.  80.1453  What are the product transfer document (PTD) 
requirements for the RFS program?

    (a) On each occasion when any party transfers ownership of neat 
and/or blended renewable fuels, except when such fuel is dispensed into 
motor vehicles or nonroad vehicles, engines, or equipment, or separated 
RINs subject to this subpart, the transferor must provide to the 
transferee documents that include all of the following information, as 
applicable:
* * * * *
    (12) For the transfer of renewable fuel for which RINs were 
generated, an accurate and clear statement on the product transfer 
document of the fuel type from Table 1 to Sec.  80.1426, and 
designation of the fuel use(s) intended by the transferor, as follows:
* * * * *

Subpart O--Gasoline Sulfur

0
3. Section 80.1616 is amended by adding and reserving paragraph (a)(4) 
and revising paragraph (b)(2) to read as follows:


Sec.  80.1616  Credit use and transfer.

    (a) * * *
    (4) [Reserved]
* * * * *
    (b) * * *
    (2) Credits generated under Sec.  80.1615(b) through (d) are valid 
for use for five years after the year in which they are generated, 
except that any CRa credits generated in 2015 and 2016 and 
any remaining CRT2 credits will expire and become invalid 
after December 31, 2019 (with the 2019 annual compliance report, due 
March 31, 2020).
* * * * *

0
4. Section 80.1621 is amended by adding and reserving paragraph (c) and 
adding paragraph (d) to read as follows:


Sec.  80.1621  Small volume refinery definition.

* * * * *
    (c) [Reserved]
    (d)(1) A refinery approved as a small volume refinery under Sec.  
80.1622 that subsequently ceases production of gasoline from processing 
crude oil through refinery processing units or exceeds the 75,000 
barrel average aggregate daily crude oil throughput limit is 
disqualified as a small volume refinery. If such disqualification 
occurs, the refinery shall notify EPA in writing no later than 20 days 
following the disqualifying event.
    (2) Any refinery whose status changes under this paragraph (d) 
shall meet the applicable standards of Sec.  80.1603 within a period of 
up to 30 months from the disqualifying event.

[FR Doc. 2016-08912 Filed 4-21-16; 8:45 am]
 BILLING CODE 6560-50-P




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