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

have the state or territory included in the RFS program. However, we believe that
approval of the petition would not require a showing other than a request to be included
in the program. The petition must be received by EPA on or before October 31 for the
noncontiguous state or territory to be included in the RFS program in the next calendar
year. A noncontiguous state or territory for which a petition is received after October 31
would not be included in the RFS program in the next calendar year, but would be
included in the RFS program in the following year. For example, if EPA receives a
petition on September 1, 2007, the noncontiguous state or territory would be included in
the RFS program beginning on January 1, 2008. If EPA receives a petition on December
1, 2007, the noncontiguous state or territory would be included in the RFS program
beginning January 1, 2009. We believe that requiring petitions to be received by October
31 would be necessary to allow EPA time to make any adjustments in applicable
standard. The method for recalculating the renewable fuels standard to reflect the
addition of a state or territory that has opted into the RFS program is discussed in Section
III.A.
Where a noncontiguous state or territory opts-in to the RFS program, producers
and importers of gasoline for that state or territory would be obligated parties subject to
the renewable fuel requirements. All refiners, blenders and importers who produce or
import gasoline for use in a state or territory that has opted-in to the RFS program would
be required to count this volume of gasoline in determining their renewable fuel
obligation, and would be able to separate RINs from batches of renewable fuels used in
gasoline that is sold or introduced into commerce in the state or territory that has opted-in
to the RFS program.
Once a petition to opt-in to the RFS program is approved by EPA, the state or
territory would remain in the RFS program and be treated as any of the 48 contiguous
states. We request comment on the opt-in provisions.
b. State Waiver Provisions
The Energy Act provides that EPA, in consultation with the U.S. Department of
Agriculture (USDA) and the Department of Energy (DOE), may waive the renewable
fuels requirements in whole or in part upon a petition by one or more states by reducing
the national quantity of renewable fuel required under the Act. 26 The Act also outlines
the basic requirements for such a waiver, such as a demonstration that implementation of
the renewable fuels requirements would severely harm the economy or environment of a
state, a region, or the United States, or that there is an inadequate domestic supply of
renewable fuel.
If EPA approves a state's petition for a waiver of the RFS program, the Act
stipulates that the national quantity of renewable fuel required (Table I.B-1) may be
reduced in whole or in part. This reduction could reduce the standard applicable to all
26 CAA Section 211(o)(7), as added by Section 1501 of the Energy Policy Act of 2005.
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