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EPA/OAR RIN: 2060-AS66 Publication ID: Fall 2016 
Title: Renewables Enhancement and Growth Support Rule 
Abstract: This action proposes to make numerous changes to promote the production of renewable fuels and clarify certain requirements under the RFS program. This action would propose to allow for feedstocks partially converted at a facility other than a renewable fuel production facility to be fully converted at a renewable fuel production facility into finished renewable fuel. These partially converted feedstocks are referred to as biointermediate feedstocks. Further, this action would also propose to add new registration, recordkeeping, and reporting requirements for certain renewable fuel production facilities using carbon capture and storage (CCS) if the EPA were to allow CCS as a lifecycle GHG emissions reduction technology in the context of the RFS program. Additionally, this action also proposes to require obligated parties to report a breakdown of their gasoline, diesel, and heating oil production; provide an additional RIN-generating pathway that is an extension of an existing pathway; and make numerous technical corrections. Finally, this action would implement fuel quality specifications for blends containing 16 to 83 volume percent ethanol. This action would provide substantial additional flexibility for ethanol flex fuel (EFF) producers that accommodate current market realities while continuing to ensure EFF quality is consistent with controlling pollution when used in flexible fuel vehicles. 
Agency: Environmental Protection Agency(EPA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 40 CFR 80   
Legal Authority: 42 U.S.C. 7429 Clean Air Act   
Legal Deadline:
Action Source Description Date
None       

Statement of Need:

This action proposes various changes to our fuel and renewable fuel regulations to remove barriers to the production and use of renewable fuels. First, this action would resolve several outstanding issues and provide clarification on certain Renewable Fuel Standard (RFS) requirements. Second, this action would propose to allow for a feedstock partially converted at one facility (referred to as a biointermediate) to be fully converted into finished renewable fuel at another facility. Finally, this action would provide production flexibilities and carry over gasoline fuel quality standards to gasoline-ethanol blends containing 16 to 83 volume percent ethanol (referred to as ethanol flex fuel (EFF)). The increased flexibility provided by this rule for biointermediates and EFF could result in the increased production and use of renewable fuels in support of the RFS program.

Summary of the Legal Basis:

Statutory authority for this action comes from Clean Air Act sections 203 to 205, 208, 211, and 301.

Alternatives:

This action to proposes to establish fuel quality standards for EFF that are equivalent to those already in place for gasoline. Producers would demonstrate compliance based on their ability to affect fuel quality and certain types of producers would be able to use natural gasoline as a blendstock to produce EFF. Alternatively, EPA also considered a simplified approach that would restrict EFF blendstocks to gasoline, blendstocks for oxygenate blending (BOBs), and denatured fuel ethanol. EPA is seeking comment on this alternative approach.

Anticipated Costs and Benefits:

The two main areas where this proposal would have economic impacts are the proposed provisions for EFF and gasoline produced at blender pumps, and the proposed provisions for biointermediates. The proposal would provide significant additional regulatory flexibility, streamlined compliance provisions, and the opportunity for increased biofuel production at reduced cost. The cost savings are anticipated to far outweigh the minor costs imposed for demonstrating compliance. In most cases, the associated costs would only apply to those parties that elect to take advantage of the proposed flexibilities because the potential economic benefits outweigh the costs. This proposal contains minor additional registration, reporting, and recordkeeping requirements that would apply to some parties in the biofuel production and distribution system that do not take advantage of the proposed flexibilities as well as those that do.

Risks:

This proposed rule does not affect the level of protection provided to human health or the environment by applicable air quality standards. This action does not relax the control measures on sources regulated by the fuel programs and RFS regulations and therefore will not cause emissions increases from these sources.

Timetable:
Action Date FR Cite
NPRM  11/00/2016 
Final Rule  12/00/2017 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Information URL: http://www2.epa.gov/renewable-fuel-standard-program  
Sectors Affected: 221210 Natural Gas Distribution; 324110 Petroleum Refineries; 325110 Petrochemical Manufacturing; 325193 Ethyl Alcohol Manufacturing; 325199 All Other Basic Organic Chemical Manufacturing; 424690 Other Chemical and Allied Products Merchant Wholesalers; 424710 Petroleum Bulk Stations and Terminals; 424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals); 454310 Fuel Dealers 
RIN Data Printed in the FR: No 
Agency Contact:
Nick Parsons
Environmental Protection Agency
Office of Air and Radiation
NVFEL,
Ann Arbor, MI 48105
Phone:734 214-4479
Email: parsons.nick@epa.gov

Paul Argyropoulos
Environmental Protection Agency
Office of Air and Radiation
1200 Pennsylvania Avenue NW, Mail Code 6401A,
Washington, DC 20460
Phone:202 564-1123
Email: argyropoulos.paul@epa.gov