Renewable Fuel Standard (RFS) Program: Extension of Compliance and Attest Engagement Reporting Deadlines

January 31, 2022

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(Environmental Protection Agency) Final rule. SUMMARY: The Environmental Protection Agency (EPA) is finalizing modifications of certain compliance dates under the Renewable Fuel Standard (RFS) program. First, EPA is extending
the RFS compliance reporting deadline and the associated attest engagement reporting deadline for the 2019 compliance year for small refineries only. Second, EPA is extending the RFS compliance reporting deadline and the associated attest engagement reporting deadline for the 2020, 2021, and 2022 compliance years for all obligated parties. Finally, EPA is changing the way in which future RFS compliance and attest engagement reporting deadlines are determined.

DATES: The amendatory instructions in this final rule are effective on [INSERT DATE OF FILING ON PUBLIC INSPECTION BY THE OFFICE OF THE FEDERAL REGISTER].

Operational dates: For operational purposes under the Clean Air Act (CAA), this final rule is
effective as of January 27, 2022. READ MORE

ROLLING IN THE DEADLINES: (Politico's Morning Energy)

Growth Energy Statement on EPA’s Finalized Delay of RVO Compliance (Growth Energy)

US EPA finalizes rule extending refinery compliance deadline for biofuel laws (Reuters)

EPA delays RFS deadlines, angering biofuels industry (Agri-Pulse)

EPA Extends RFS Compliance Deadlines (Energy.AgWired.com; includes AUDIO)

Sparking Fears, EPA Claims Discretion To Set Post-2023 RFS Deadlines (Inside EPA)

EPA Finalizes RFS Compliance Delays Despite Call From Biofuels to Enforce Law (DTN Progressive Farmer)

New rolling RFS compliance deadlines draw cheers from refiners, jeers from others (S&P Global)

EPA gives refiners more time to comply with RFS standard (Fence Post)

Excerpt from Politico's Morning Energy: ROLLING IN THE DEADLINES:EPA finalized its rule last week to extend the deadlines for refiners to meet biofuel blending requirements and change how future deadlines are determined. The final rule extends the compliance deadlines for 2020, 2021 and 2022 for all obligated parties under the Renewable Fuel Standard, as well as the deadline for small refineries for the 2019 compliance year.

It also finalizes changes that would tie future compliance deadlines to a date after the subsequent year's renewable fuels volume standard is set. EPA first proposed the changes in November and said the agency will "ensure regulated parties have clarity on their present and future RFS obligations."

Renewable Fuels Association President and CEO Geoff Cooper said the ethanol trade group was concerned with the new approach. "With this final rule, EPA just gave itself the power to perpetually delay implementation of yearly RFS blending requirements and continually kick the can down the road on compliance deadlines," he said in a statement. "This is not what Congress intended, and this approach could exacerbate the uncertainty and instability around RFS implementation that was created by the past administration." READ MORE

Excerpt from Growth Energy: Today (January 28, 2022), the U.S. Environmental Protection Agency (EPA) announced a finalized extension to the Renewable Volume Obligation (RVO) compliance deadlines for 2019, 2020, 2021, and for 2022. The 2019 RVO compliance deadline for small refineries was originally set for November 30, 2021, and the 2020 RVO compliance deadline for all obligated parties was previously set for January 31, 2022. With today’s action, EPA is finalizing rolling compliance deadlines based on publication of the final RVOs for 2020-2022.

Growth Energy CEO Emily Skor released the following statement in response:

“Delaying compliance deadlines is completely contradictory to efforts to lower rising gas prices and increase the use of cleaner, lower-carbon fuels,” said Skor. “By continuing to delay compliance deadlines, EPA is creating uncertainty in the marketplace and stunting the blending of biofuel needed to decarbonize transportation as the Renewable Fuel Standard intended.

“Moving ahead, it is vital for EPA to get the RFS back on track. EPA can start by making needed changes to its proposed cuts to the 2020 RVOs and low volumes for 2021. Importantly, EPA needs to swiftly finalize the proposed volumes for 2022. Administrator Regan has emphasized time and time again the need for transparency and certainty when it comes to the RFS. Ensuring timely compliance and finalizing strong biofuel blends can help Administrator Regan follow through on these promises and provide much needed certainty for biofuel producers.”

Background

On Thursday, November 18th, EPA announced a proposal to extend the RVO compliance deadlines for 2019, 2020, 2021, and for 2022. In December 2021, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley testified before the U.S. Environmental Protection Agency on its proposed Renewable Fuel Standard (RFS) compliance date extension proposal. READ MORE

Excerpt from Reuters: In 2021, several oil refiners slowed or stopped buying compliance credits in a bet the EPA would ease the blending requirements, putting them at risk of hundreds of millions of dollars in liabilities. READ MORE

Excerpt from Agri-Pulse: Its approach for years 2023 and beyond “will also avoid EPA having to repeatedly extend compliance deadlines for obligated parties should promulgation of the subsequent year’s standards be delayed,” EPA said.

...

Responding to comments on the new approach, EPA noted in the final rule released Friday that biofuels industry groups believe a system for automatic extensions would discourage EPA from issuing standards for future years on time.

But the agency decided that “having regulations in place that remove one source of uncertainty in the RFS program, were EPA to ever again be late in promulgating standards, is in the best interest of our implementation of the program.”

Setting up a schedule for future compliance deadlines “will render future rulemakings like this one to extend compliance deadlines unnecessary and prevent placing an unnecessary burden on obligated parties to prepare, submit, and then possibly retract and revise compliance reports for deadlines that were later extended,” EPA said.

For small refineries, defined as those “with an average crude oil input no greater than 75,000 barrels per day,” the 2019 RFS compliance deadline “will be the next quarterly reporting deadline after the effective date of the 2021 RFS standards (typically 60 days after publication of the final rule in the Federal Register),” EPA said.

The deadlines for all obligated parties for the 2020, 2021 and 2022 compliance years are as follows, EPA said:

The 2020 compliance deadline will be the next quarterly reporting deadline after the 2019 compliance deadline for small refineries;
The 2021 compliance deadline will be the next quarterly reporting deadline after the 2020 compliance deadline; and
The 2022 compliance deadline will be the next quarterly reporting deadline after either the effective date of the 2023 RFS standards or the 2021 compliance deadline, whichever is later.

In addition, EPA said it is “extending the associated attest engagement reporting deadlines to the next June 1 annual attest engagement reporting deadline after the applicable 2019–2022 compliance deadline.” READ MORE

Excerpt from Energy.AgWired.com: Renewable Fuels Association president and CEO Geoff Cooper said ... "... This is not what Congress intended, and this approach could exacerbate the uncertainty and instability around RFS implementation that was created by the past administration. Ethanol producers, farmers, fuel retailers, and refiners need and deserve certainty and predictability when it comes to RFS implementation timelines. That’s why Congress put certain annual deadlines into the law for RFS implementation.” READ MORE; includes AUDIO