Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

٠ a small refinery may waive its temporary exemption to participate in the
credit generation program, or it may also “opt-in”, by waiving its
temporary exemption, to be subject to the RFS requirement.
During these meetings with the small refiners we also discussed the impacts of
these provisions being offered to small refineries only. As stated above, three refiners
met the definition of a small refiner, but their refineries did not meet the Act’s definition
of a small refinery; which naturally concerned the small refiners. Another concern that
the small refiners had was that if this rule were to have a significant economic impact on
a substantial number of small entities a lengthy SBREFA process would ensue (which
would delay the promulgation of the RFS rulemaking, and thus provide less lead time for
these small entities prior to the RFS program start date).
Following our discussions with the small refiners, they provided three suggested
regulatory flexibility options that they believed could further assist affected small entities
in complying with the RFS program standard: 1) that all small refiners be afforded the
Act’s small refinery temporary exemption, 2) that small refiners be allowed to generate
credits if they elect to comply with the RFS program standard prior to the 2011 small
refinery compliance date, and 3) relieve small refiners who generate blending credits of
the RFS program compliance requirements.
We agreed with the small refiners’ suggestion that small refiners be afforded
temporary exemption that the Act specifies for small refineries. Regarding the small
refiners’ second and third suggestions regarding credits, our proposed RIN-based
program will automatically provide them with credit for any renewables that they blend
into their motor fuels. Until 2011, small refiners will essentially be treated as oxygenate
blenders and may separate RINs from batches and trade or sell these RINs.
6. Conclusions
After considering the economic impacts of today’s proposed rule on small
entities, we certify that this action will not have a significant economic impact on a
substantial number of small entities.
While the Energy Policy Act provided for a temporary exemption for small
refineries from the requirements of today’s proposed rule, these parties will have to
comply with the requirements following the exemption period. However, we still believe
that small refiners generally lack the resources available to larger companies, and
therefore find it necessary to extend the small refinery temporary exemption to all small
refiners. Thus, we are proposing to allow the small refinery temporary exemption, as set
out in the Act, to all qualified small refiners. In addition, past fuels rulemakings have
included a provision that, to qualify for EPA’s small refiner flexibilities, a refiner must
have no more than 1,500 total corporate employees and have a crude capacity of no more
than 155,000 bpcd (slightly higher than SBA’s crude capacity limit of 125,000 bpcd). To
be consistent with these previous rules, we are also proposing to allow those refiners that
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