LegiStorm

Summary:
Highlights

GAO reviewed the Environmental Protection Agency's (EPA) new rule entitled "Renewable Fuel Standard (RFS) Program: Standards for 2023–2025 and Other Changes." GAO found that the final rule (1) establishes the applicable volumes and percentage standards for 2023 through 2025 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel; (2) establishes the second supplemental standard addressing the judicial remand of the 2016 standard-setting rulemaking; and (3) makes several regulatory changes to the Renewable Fuel Standard Program, including changes related to the treatment of biogas and other modifications to improve the Program's implementation.

Enclosed is our assessment of EPA's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.





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B-335439

July 21, 2023

The Honorable Thomas R. Carper
Chairman
The Honorable Shelley Moore Capito
Ranking Member
Committee on Environment and Public Works
United States Senate

The Honorable Cathy McMorris Rodgers
Chair
The Honorable Frank Pallone, Jr.
Ranking Member
Committee on Energy and Commerce
House of Representatives

Subject: Environmental Protection Agency: Renewable Fuel Standard (RFS) Program: Standards for 2023?2025 and Other Changes

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Environmental Protection Agency (EPA) entitled ?Renewable Fuel Standard (RFS) Program: Standards for 2023?2025 and Other Changes? (RIN: 2060-AV14). We received the rule on June 26, 2023. It was published in the Federal Register as a final rule on July 12, 2023. 88 Fed. Reg. 44468. The effective date is September 11, 2023, except for amendatory instruction 30, which is effective on February 1, 2024, and amendatory instructions 41 and 42, which are effective on April 1, 2024.

According to EPA, the final rule establishes the applicable volumes and percentage standards for 2023 through 2025 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. EPA also stated the final rule establishes the second supplemental standard addressing the judicial remand of the 2016 standard-setting rulemaking. EPA further stated the final rule makes several regulatory changes to the Renewable Fuel Standard Program, including changes related to the treatment of biogas and other modifications to improve the Program?s implementation.

Enclosed is our assessment of EPA?s compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.


Shirley A. Jones
Managing Associate General Counsel

ENCLOSURE

REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
ENVIRONMENTAL PROTECTION AGENCY
ENTITLED
?RENEWABLE FUEL STANDARD (RFS) PROGRAM: STANDARDS
FOR 2023?2025 AND OTHER CHANGES?
(RIN: 2060-AV14)

(i) Cost-benefit analysis

The Environmental Protection Agency (EPA) estimated the final rule would lead to cumulative fuel costs of $23.9 million, excluding the supplemental standard, and $24.5 million, including the supplemental standard, from 2023?2025 at a zero percent discount rate. EPA also estimated cumulative energy security benefits of $515 million, excluding the supplemental standard, and $528 million, including the supplemental standard, from 2023?2025 at a zero percent discount rate. EPA also provided estimates for 2023?2025 at a three and a seven percent discount rate.

(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603?605, 607, and 609

EPA certified the final rule would not have a significant economic impact on a substantial number of small entities.

(iii) Agency actions relevant to sections 202?205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532?1535

EPA determined the final rule will not impose any enforceable duty on any state, local, or tribal government, but it does impose costs of $100 million or more in any one year on the private sector.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

EPA published a proposed rule on December 30, 2022. 87 Fed. Reg. 80582. EPA addressed comments in the final rule.

Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501?3520

EPA determined the final rule contains Information Collection Requests (ICRs) and stated it submitted the ICRs to the Office of Management and Budget (OMB) for review under identifier EPA ICR 2722.02. EPA estimated the total burden of the ICRs to be 82,441 hours per year at a cost of $5,684,472 per year.

Statutory authorization for the rule

EPA promulgated the final rule pursuant to sections 7414, 7522?7524, 7542, 7545, and 7601 of title 42, United States Code.

Executive Order No. 12866 (Regulatory Planning and Review)

EPA stated the final rule is a significant regulatory action and was reviewed by OMB.

Executive Order No. 13132 (Federalism)

EPA determined the final rule will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government.




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