October 16, 2020
BY Erin Krueger
The U.S. EPA on Oct. 15 issued its final Fuels Streamlining Rule, which streamlines the agency’s existing regulations for gasoline, diesel and other fuels. It does not, however, change the stringency of existing fuel quality standards. The new rule goes into effect on Jan. 1.
According to the EPA, the rule deletes expired or redundant compliance provisions, such as duplicative registration requirements, removes unnecessary and out-of-date requirements, and replaces them with a single set of provisions and definitions.
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The action creates a new 40 CFR part 1090 that contains a single set of provisions and definitions that apply across all gasoline, diesel and other fuel quality programs currently under 40 CFR part 80, with the exception of the Renewable Fuel Standard.
EPA estimates that this final action will save $40.4 million per year, largely from reduced administrative costs. Other savings are expected to occur by improving the ability to efficiently deliver compliant fuel through the system and by providing greater flexibility for fuel production and distribution.
The EPA released its proposed Fuels Regulatory Streamlining rule in April 2020. A public comment period was open through May 28.
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In addition to the final rule, the EPA has also published a response to comments received during the rulemaking’s public comment period. That document contains the agency’s responses to comments filed by the Renewable Fuels Association, Growth Energy, National Corn Growers Association, and others. Copies of the final rule and the EPA’s response to comments documents can both be downloaded from the agency’s website.
While final IRS guidance is still pending, the foundation of the 45Z program is well defined. Clean fuel producers should no longer be waiting; they can now move forward with critical planning and preparation, according to EcoEngineers.
The IRS on July 21 published a notice announcing the 2025 calendar-year inflation adjustment factor for the Section 45Z clen fuel production credit. The resulting adjustment boosts maximum the value of the credit by approximately 6%.
The U.S. Senate on July 23 voted 48 to 47 to confirm the appointment of Aaron Szabo to serve as assistant administrator of the U.S. EPA’s Office of Air and Radiation. Biofuel groups are congratulating him on his appointment.
U.S. Secretary of Agriculture Brooke L. Rollins today announced the reorganization of the USDA, refocusing its core operations to better align with its founding mission of supporting American farming, ranching, and forestry.
The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy is soliciting public comments on a preliminary plan for determining provisional emissions rates (PER) for the purposes of the 45Z clean fuel production credit.