ENVIRONMENTAL PROTECTION AGENCY

1 The EPA Administrator, Michael S. Regan, signed the following proposed rule on December 7, 2021, and EPA is submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accuracy of this Internet version of the rule, it is not the official version of the rule for purposes of public comment. Please refer to the official version in a forthcoming FR publication, which will appear on the Government Printing Office's FDSys website ( ) and on ( ) in Docket ID No. EPA HQ OAR 2021 0324. Once the official version of this document is published in the FR, this version will be removed from the Internet and replaced with a link to the official version. 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 80 and 1090 [EPA-HQ-OAR-2021-0324; FRL-8521-02-OAR] RIN 2060-AV11 Renewable Fuel Standard (RFS) Program: RFS Annual Rules AGENCY : ENVIRONMENTAL PROTECTION AGENCY (EPA).

2 ACTION: Proposed rule. SUMMARY: Under section 211 of the Clean Air Act, the ENVIRONMENTAL PROTECTION AGENCY (EPA) is required to set standards every year to implement nationally applicable renewable fuel volume targets. This action proposes to modify the 2021 and 2022 statutory volume targets for cellulosic biofuel, advanced biofuel, and total renewable fuel, as well as to establish the 2022 volume target for biomass-based diesel. This action also proposes to modify the previously established cellulosic biofuel, advanced biofuel, and total renewable fuel volume requirements for 2020. In addition, this action proposes the 2020, 2021, and 2022 renewable fuel standards for all four of the above biofuel categories. Finally, this action also proposes to address the remand of the 2016 standard-setting rulemaking, as well as several regulatory changes to the Renewable Fuel Standard (RFS) program including regulations for the use of biointermediates to produce qualifying renewable fuel, flexibilities for regulated parties, and clarifications of existing regulations.

3 DATES: Comments. Comments must be received on or before February 4, 2022. Public hearing. EPA will announce information regarding the public hearing for this proposal in a supplemental Federal Register document. ADDRESSES: Comments. You may send your comments, identified by Docket ID No. EPA-HQ-OAR-2021-0324, by any of the following methods: Federal eRulemaking Portal: (our preferred method) Follow the online instructions for submitting comments. E- mail: Include Docket ID No. EPA-HQ-OAR-2021-0324 in the subject line of the message. Mail: ENVIRONMENTAL PROTECTION AGENCY , EPA Docket Center, Air Docket, Mail Code 28221T, 1200 Pennsylvania Avenue NW, Washington, DC 20460. Hand Delivery or Courier (by scheduled appointment only): EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Avenue, NW, Washington, DC 20004.

4 The Docket Center s hours of operations are 8:30 4:30 , Monday Friday (except Federal Holidays). Instructions: All submissions received must include the Docket ID No. for this rulemaking. Comments received may be posted without change to , including any personal information provided. For the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit Out of an abundance of caution for members of the public and our staff, the EPA Docket Center and Reading Room are closed to the public, with limited exceptions, to reduce the risk of transmitting COVID-19. Our Docket Center staff will continue to provide remote customer service via email, phone, and webform. We encourage the public to submit comments via or email, as there may be a delay in processing mail and faxes. Hand deliveries and couriers may be received by scheduled appointment only.

5 For further information on EPA Docket Center services and the current status, please visit us online at EPA continues to carefully and continuously monitor information from the Centers for Disease Control and Prevention (CDC), local area health departments, and our Federal partners so that we can respond rapidly as conditions change regarding COVID-19. FOR FURTHER INFORMATION CONTACT: Dallas Burkholder, Office of Transportation and Air Quality, Assessment and Standards Division, ENVIRONMENTAL PROTECTION AGENCY , 2000 Traverwood Drive, Ann Arbor, MI 48105; telephone number: 734-214-4766; email address: Comments on this proposal should not be submitted to this email address, but rather through as discussed in the ADDRESSES section. SUPPLEMENTARY INFORMATION: Entities potentially affected by this proposed rule are those involved with the production, distribution, and sale of transportation fuels, including gasoline and diesel fuel, as well as renewable fuels such as ethanol, biodiesel, renewable diesel, and biogas.

6 Potentially affected categories include: This document is a prepublication version, signed by EPA Administrator, Michael S. Regan on December 7, 2021. We have taken steps to ensure the accuracy of this version, but it is not the official version. Page 2 of 159 Category NAICS1 Codes Examples of Potentially Affected Entities Industry 324110 Petroleum refineries Industry 325193 Ethyl alcohol manufacturing Industry 325199 Other basic organic chemical manufacturing Industry 424690 Chemical and allied products merchant wholesalers Industry 424710 Petroleum bulk stations and terminals Industry 424720 Petroleum and petroleum products merchant wholesalers Industry 221210 Manufactured gas production and distribution Industry 454319 Other fuel dealers 1 North American Industry Classification System (NAICS).

7 This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this proposed action. This table lists the types of entities that EPA is now aware could potentially be affected by this proposed action. Other types of entities not listed in the table could also be affected. To determine whether your entity would be affected by this proposed action, you should carefully examine the applicability criteria in 40 CFR parts 80 and 1090. If you have any questions regarding the applicability of this proposed action to a particular entity, consult the person listed in the FOR FURTHER INFORMATION CONTACT section. Outline of this preamble I. Executive Summary A. Legal Authorities to Modify and Establish Renewable Fuel Volumes B. 2020 Volumes C. 2021 Volumes D. 2022 Volumes E. Response to the ACE Remand F. Annual Percentage Standards G.

8 Biointermediates H. Other Changes I. ENVIRONMENTAL Justice J. Endangered Species Act II. Legal Authorities to Reduce and Establish Volumes A. Authorities to Modify Statutory Volumes Targets B. Authority to Establish BBD Volumes C. Considerations for Retroactive and Late Rulemaking D. Considerations in Revisiting an Established RFS Standard E. Applicability of Legal Authorities to Establish the Volume Requirements F. Severability III. Proposed Volumes A. EPA s Assessment of the Statutory Factors for Each Component Category of Biofuel B. Proposed Volumes for 2020 C. Proposed Volumes for 2021 D. Proposed Volumes for 2022 This document is a prepublication version, signed by EPA Administrator, Michael S. Regan on December 7, 2021. We have taken steps to ensure the accuracy of this version, but it is not the official version. Page 3 of 159 E.

9 Proposed Biomass-Based Diesel Volume for 2022 F. Summary of the Proposed Volumes G. Impacts of the Proposed Volumes IV. Interactions Between the RFS Annual Volumes A. Treatment of Carryover RINs B. Ability for the RFS Volumes to Impact Renewable Fuel Supply V. Response to ACE Remand A. Reevaluating the 2014-2016 Annual Rule B. Consideration of Approaches for Responding to the ACE Remand C. Demonstrating Compliance with the 2022 Supplemental Standard D. Authority and Consideration of the Benefits and Burdens E. calculating a Supplemental Percentage Standard for 2022 VI. Percentage Standards A. Calculation of Percentage Standards B. Small Refineries and Small Refiners C. Modification of the 2020 Biomass-Based Diesel Percentage Standard D. Proposed Standards VII. Biointermediates A. Background B. Re-proposal of Biointermediates Provisions Previously Proposed in REGS C. Changes to the Biointermediates Provisions Previously Proposed in the REGS Rule D.

10 Other Considerations Related to Biointermediates VIII. Amendments to Fuel Quality and RFS Regulations A. BBD Conversion Factor for Percentage Standard B. Changes to Registration for Baseline Volume C. Changes to Attest Engagements for Parties Owning RINs ( RIN Owner Only ) D. Public Access to Information E. Clarifying the Definition of Agricultural Digester F. Definition of Produced from Renewable Biomass G. Estimating Landfill Emissions for Lifecycle GHG Analysis of Fuels Produced from Separated Municipal Solid Waste H. Technical Corrections and Clarifications IX. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review B. Paperwork Reduction Act (PRA) C. Regulatory Flexibility Act (RFA) D. Unfunded Mandates Reform Act (UMRA) E. Executive Order 13132: Federalism F.