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

small refiner under this proposal. From the industry characterization, we determined that
there were 20 gasoline refiners that met the definition of a small refiner. Of these 20
refiners, 17 owned refineries that also met the Energy Policy Act’s definition of a small
refinery.
4. Impact Of The Regulations On Small Entities
As previously stated, many aspects of the RFS program, such as the required
amount of annual renewable fuel volumes, were specified in the Energy Policy Act. As
shown above in Table III.D.3.c-2, the annual projections of ethanol production exceed the
required annual renewable fuel volumes. When the small refinery exemption ends, it is
anticipated that there will be over one billion gallons in excess RINs available. We
believe that this large volume of excess RINs will also lower the costs of this program. If
there were a shortage of RINs, or if any party were to ‘hoard’ RINs, the cost of a RIN
could be high; however with excess RINs, we believe that this program will not impose a
significant economic burden on small refineries, small refiners, or any other obligated
party. Further, we have determined that this proposed rule will not have a significant
economic impact on a substantial number of small entities.
When the Agency certifies that a rule will not have a significant economic impact
on a substantial number of small entities, EPA’s policy is to make an assessment of the
rule's impact on any small entities and to engage the potentially regulated entities in a
dialog regarding the rule, and minimize the impact to the extent feasible. The following
sections discuss our outreach with the potentially affected small entities and proposed
regulatory flexibilities to decrease the burden on these entities in compliance with the
requirements of the RFS program
5. Small Refiner Outreach
Although we do not believe that the RFS program would have a significant
economic impact on a substantial number of small entities, EPA nonetheless has tried to
reduce the impact of this rule on small entities. We held meetings with small refiners to
discuss the requirements of the RFS program and the special provisions offered by the
Energy Policy Act for small refineries.
The Energy Policy Act set out the following provisions for small refineries:
٠ a temporary exemption from the Renewable Fuels Standard requirement
until 2011;
٠ an extension of the temporary exemption period for at least two years for
any small refinery where it is determined that the refinery would be
subject to a disproportionate economic hardship if required to comply;
٠ any small refinery may petition, at any time, for an exemption based on
disproportionate economic hardship; and,
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