Energy Blog

RFS0901 Reports due in to EPA by June 1, 2012

Sandra Dunphy — Wed, 09 May 2012 20:00:30 GMT

In addition to the quarterly RFS reports and attestations due on May 31st, all US renewable fuel producers and importers and�RIN-generating foreign renewable fuel producers�are required to file RFS0901 reports by June 1st.� Foreign producers who are not RIN generators do�not have to file.

These reports�reflect�forecasts of fuel production�/ imports and RIN generation�for the next 5 years and are�specific to: facility #,�D code, fuel type, feedstocks and production processes.�

If producers or importers�project to have zero production / imports, reports are still required to be filed.

Please contact Sandra Dunphy if you need assistance with these reports.�

Sandra.Dunphy@WeaverLLP.com;� 832-320-3218

Weaver and SGS RIN Assurance Programs

Sandra Dunphy — Mon, 30 Apr 2012 21:13:19 GMT

Weaver and Tidwell, L.L.P., one of the largest independent accounting firms in the US, specializing in energy compliance services, is pleased to announce a new business relationship with SGS North America Inc., a member of the SGS Group, the world's leading inspection, verification, testing and certification company, to offer services related to RFS2 RIN and Renewable Fuel Producer assurance.� Both Weaver and SGS, with outstanding reputations for high quality customer service, are well-known to the petroleum and renewable fuels industries, having served them for many years.�

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Under this relationship Weaver will continue to offer its "RIN-tegrity" services to its clients which include a site visit and thorough review of past and current RFS-related documentation.� Many clients have expressed a further interest in getting more information on a producer's ongoing product quality and mass-balance position and for this reason Weaver has now teamed with SGS, who have the ability to fulfill those needs.� SGS�offers a second-party audit system which includes quarterly unannounced site visits to review feedstock and finished product volumes, oversight of product sampling, and laboratory analysis of the sample using a full slate of ASTM tests.�

To provide customized customer service, clients of either Weaver or SGS will be able to take advantage of the services that either company has to offer by contracting with each company individually or utilizing the services of both companies for a more comprehensive ongoing review.

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For more information, please contact Sandra Dunphy at Weaver (832-320-3218; Sandra.Dunphy@WeaverLLP.com) or Howie Nelson at SGS (952-892-6372; howie.nelson@sgs.com).

Green Diesel NOV issued by EPA

Sandra Dunphy — Sun, 29 Apr 2012 17:17:18 GMT

EPA has just issued an NOV to Green Diesel for the production of 60 million fraudulent RINs generated between July 16, 2010 through July 15, 2011.

http://www.epa.gov/compliance/resources/novs/civil/caa/fuel/greendiesel0430.pdf

Obligated Parties who used these RINs for compliance will have to replace these RINs and will be subject to penalties as outlined in the EPA's recent Interim Enforcement Response Policy.

ASA's will not be issued to these affected Obligated Parties until early 2013, and will include all NOV-related penalties accrued for 2012.�

Obligated Parties will also need to complete a RIN Integrity Report (RIR) by 4/30/13, describing the methodology or system that the company has implemented or adopted to ensure that RINs it uses to satisfy its RVO are valid.

Please call Sandra Dunphy if you would like assistance with your RIR. Sandra.Dunphy@WeaverLLP.com or 832-320-3218

LCFS Enforcement Injunction Is Lifted, All Outstanding Reports Now Due April 30, 2012

Wade Watson — Mon, 23 Apr 2012 12:49:36 GMT

PLEASE note that their has been a Ninth Circuit ruling which allows ARB to continue implementation and enforcement of the LCFS.� Further,�regulated parties that have�NOT yet submitted their Q4 2011 reports have until�April 30, 2012 to do so.� See further detail below, as communicated directly by ARB today:

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"On December 29, 2011, the U.S. District Court for the Eastern District of California issued several rulings in the federal lawsuits challenging the Low Carbon Fuel Standard (LCFS). One of the district court's rulings preliminarily enjoined the Air Resources Board (ARB) from enforcing the regulation.� In January 2012, ARB appealed that decision to the Ninth Circuit Court of Appeals (Ninth Circuit), and then moved to stay the injunction pending resolution of the appeal.

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On April 23, 2012, the Ninth Circuit granted the ARB's motion for a stay of the injunction while it continues to consider ARB's appeal of the lower court's decision.

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We appreciate the Ninth Circuit court's ruling allowing the LCFS to move forward pending a final ruling on the appeal. Yesterday's decision allows the ARB to continue implementation and resume enforcement of this important program to reduce greenhouse gas emissions, driving the investment and innovation that creates new jobs and provides the next generation of clean fuels to all Californians.

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The ARB believes that enforcement of the LCFS requirements is important to the success of the program.� Because the injunction was in effect when the 2011 fourth quarter reports were due, we will allow those regulated parties that have not yet submitted their 2011 fourth quarter reports to submit those reports no later than April 30, 2012.� This is the same date when the 2011 annual compliance reports are due.

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If you have any questions, please contact Floyd Vergara, Chief, Alternative Fuels Branch, at (916) 322-6312 or fvergara@arb.ca.gov.

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The Low Carbon Fuel Standard, a regulation to reduce the carbon intensity of fuels sold in California ten percent by 2020, is one of the measures adopted by the California Air Resources Board pursuant to Health and Safety Code sections 38500 et seq. (AB 32) to reduce greenhouse gases in California.� It is designed to help clean the air, protect the environment, and drive the development of clean, low-carbon fuels to improve California's energy security and energy independence."

Birmingham Area Gasoline RVP Change

Vance Kopp — Sun, 22 Apr 2012 11:57:00 GMT

EPA has approved a revision to the Alabama State Implementation Plan (SIP), which was initially submitted by the Alabama Department of Environmental Management (ADEM) in January 2012.�� The revision modifies Alabama's SIP to move Chapter 335-3-20 ''Control of Fuels,'' which includes the regulation that governs the State's 7.0 pounds per square inch (psi) requirement for the low-Reid Vapor Pressure (RVP) fuel program in Jefferson and Shelby Counties (''Birmingham Area'') from the active measures portion of the Alabama SIP to the contingency measures portion.� The change to the SIP will result in the federal RVP requirement of 7.8 psi applying for the Birmingham Area.�� This final rule is effective April 20, 2012.

Please see the following link for the final rule:
http://www.gpo.gov/fdsys/pkg/FR-2012-04-20/pdf/2012-9446.pdf

New Weaver 'RIN-tegrity' Surveys now available

Sandra Dunphy — Wed, 21 Mar 2012 00:38:25 GMT

Weaver has created new RIN integrity�("RIN-tegrity") surveys�that can be used by�renewable fuel�or RIN buyers�interested in�obtaining specific information about either�producers (foreign or domestic)�or�importers of all types of renewable fuels.� They can also be used by�biofuel producers or importers themselves to examine their operations and recordkeeping vis a vis the EPA's RFS2�regulations.

In addition, Weaver has created a Due Diligence compliance workbook for RIN and biofuel traders' use when making transactions.� It includes the specific regulations governing each type of trade, summary pages of important regulations as well as information on sugarcane ethanol imports, the latest Accepted Producers and CDX Company/Facility Registration Lists.� A 'must-have' for all biofuel trading companies.

Contact Sandra Dunphy at 832-320-3218 or Sandra.Dunphy@WeaverLLP.com for more information.

Will we not have a VOC season this year?

Bill Newman — Tue, 20 Mar 2012 13:22:29 GMT

E&E News reports: "The Obama administration should determine whether it can reduce gas prices in the coming months by temporarily relaxing stricter fuel standards that kick in during the summer to combat smog pollution, a key Republican senator said today. Sen. Lisa Murkowski (R-Alaska) said she did not know exactly what effect temporarily waiving the standards could have, and she acknowledged that it could lead to undesirable trade-offs in the form of increased pollution in parts of the country. But she said it's one of the few options available that could bring down gas prices in the near term, and was intrigued that Obama's nominee to oversee the Energy Information Administration opened the door to studying the issue."��

UPDATE: EPA FOIA Request

Wade Watson — Thu, 01 Mar 2012 16:06:58 GMT

We have recently received an unofficial update that EPA�will be providing more information/clarification with regards to the�Freedom of Information Act (FOIA)�request that was recently�sent out by�EPA.�Our understanding is that�EPA is�going to provide all affected parties with a sample response of what would go from EPA to the FOIA requestor, as soon as possible. This would assist�affected parties�in responding to the "nine question" letter. Further,�EPA plans to provide additional time for all affected parties to respond to�the letter.

New refinery GHG rules delayed until after 2012

Bill Newman — Thu, 01 Mar 2012 10:40:20 GMT

THE HILL is reporting that EPA Administrator Jackson has indicated that new GHG rules for refineries will not be ready during 2012.� Some look at this as an election year move by the Obama admistration.

The link is here:

http://thehill.com/blogs/e2-wire/e2-wire/213239-epa-wont-finish-refinery-greenhouse-gas-rules-in-2012

Tier III News

Bill Newman — Thu, 01 Mar 2012 10:34:24 GMT

EPA said recently that Tier III regs would focus on lowering the Sulfur standard from the current level of 30 ppm to something around 10 ppm.

The link is here (subscription required - but you can read the first paragraph).�http://bit.ly/xRcqXb

WEAVER creates "RIN-tegrity" surveys

Sandra Dunphy — Sun, 26 Feb 2012 19:22:26 GMT

Because of industry demand, Weaver has created RIN integrity�("RIN-tegrity") surveys�that can be used by�biodiesel fuel�or RIN buyers�interested in getting specific information about either biodiesel producers or biodiesel importers and their foreign producers.� They can also be used by biodiesel producers or importers themselves to examine their operations and recordkeeping vis a vis the EPA's RFS2 and diesel fuel regulations.

These surveys cover all RIN-related regulations and can be used stand-alone or as the basis for an on-site due diligence review.

Contact Sandra Dunphy at 832-320-3218 or Sandra.Dunphy@WeaverLLP.com for more information.

Absolute Fuels NOV

Sandra Dunphy — Thu, 02 Feb 2012 20:47:06 GMT

On Feb. 2, EPA issued an NOV to Jeffrey Gunselman, CEO of Absolute Fuels, LLC for violating Section 211(o) of the Clean Air Act for generating fraudulent RFS2 RINs.� EPA has determined that all 2010 - 2011 RINs generated by Absolute Fuels (~48 million RINs) are invalid.�

EPA will be in communication with Obligated Parties who used these RINs for 2010 compliance to discuss whether the OP wants to receive an NOV or not - either way the RINs will have to be replaced and parties may be subject to penalties.� Some parties may want an official NOV to be able to give it to their RIN supplier, while others may not.�

See EPA's website here: http://www.epa.gov/compliance/civil/caa/fuel-novs.html

Sandra Dunphy - Director, Energy Compliance�� sandra.dunphy@weaverllp.com; 832-320-3218

Antidumping & Reformulated Gasoline Reporting Update for 2011

Vance Kopp — Thu, 02 Feb 2012 19:34:53 GMT

After several conversations with EPA, they have agreed to the following RFG/AD reporting requirements for 2011:

PLEASE RECALL THAT THIS ONLY APPLIES TO THOSE REFINERS WHO ARE SUBJECT TO THE PROVISIONS OF 40CFR80 SUBPART L (MSAT2)

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�� 1.� RFG0301 - No RFG0301 - No change to reporting requirements (except items 35, and 37-40 should be zero)

�� 2.� RFG0500 - Should only include designations for item 10.� All other annual designations should be zero.

�� 3.� RFG0800 - No reporting requirement for 2011+

�� 4.� RFG0900 - No reporting requirement for 2011+

�� 5.� RFG1000 - No reporting requirement for 2011+

�� 6.� RFG1200 - No reporting requirement for 2011+

�� 7.� RFG1300 - No change to reporting requirements

�� 8.� RFG1400 - No change to reporting requirements

�� 9.� RFG1600 - Not required

�� 10.RFG1700 - Not required

�� 11.RFG2000 - Required for 2011+ compliance years

�� 12.RFG2200 - Required for those transacting MSAT2 credits

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Please contact us, if you have any questions regarding your reporting requirements for 2011.

UPDATE ON LCFS LITIGATION

Ron Chapman — Wed, 25 Jan 2012 18:07:12 GMT

On December 29, 2011, the U.S. District Court for the Eastern District of California issued several rulings in the federal lawsuits challenging the California's Low Carbon Fuel Standard (LCFS) stating that the regulation is unconstitutional. One of the court's rulings preliminarily enjoins the Air Resources Board (ARB or Board) from enforcing the regulation during the pendency of the litigation. �ARB appealed these rulings and sought an order staying the preliminary injunction.�� In seeking a stay of the preliminary injunction, ARB requested an order that all requirements of the LCFS in 2011 and 2012 are enforceable for the entire period.

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On January 23, 2012 Judge Lawrence J. O'Neill denied the California Air Resources Board's (CARB) motion to stay the decision he issued on December 29, 2011 that had halted the enforcement of the (LCFS) regulation.�

CARB has stated it will continue the appeal.� As long as the injunction remains in effect, ARB cannot enforce the LCFS requirements.

Conversation with CARB personnel indicates that affected parties should continue reporting activities using the LCFS Reporting Tool until such time as the litigation is concluded.

Anyone wishing further information should contact either Ron Chapman or Bill Newman with Weaver.

2010 RVOs - how to retire replacement RFS2 RINs

Sandra Dunphy — Wed, 25 Jan 2012 14:01:18 GMT

For Obligated Parties or Renewable Fuel Exporters wishing to retire�2010 RFS2 RINs now to replace possibly invalid RINs (other than Clean Green Fuel RINs) used for 2010 compliance�- please note the following:�

You cannot�remove or delete 2010 RFS2 RINs already used for 2010 compliance, however you can retire additional 2010 RFS2 RINs to cover volumes of RINs that you feel might�be invalid. Here's what EPA recommends:

- In EMTS, under your Current RINs inventory, go to: "Retire - Other", use code 130

- Indicate the volume of RINs you are retiring and the original producer of the RINs that you used for 2010 compliance that you are replacing.� For multiple producers, retire RINs in separate groups.

- KEEP IN MIND THAT ONCE YOU RETIRE EXTRA 2010 RINs (FOR 2010 COMPLIANCE), YOU CANNOT "UNRETIRE" THEM IF EPA�DOES NOT�DECLARE THE ORIGINAL RINs USED TO BE INVALID.

Questions?� Call Sandra Dunphy at 832-320-3218 or email: Sandra.Dunphy@WeaverLLP.com