Renewable Fuels Standard Regulation (RFS2)
Registration Compliance Guidelines
Engineering Review
United States
Environmental Protection
Agency
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Renewable Fuels Standard Regulation (RFS2)
Registration Compliance Guidelines
Engineering Review
Compliance and Innovative Strategies Division
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
v>EPA
United States EPA-420-B-10-024
Environmental Protection .. on. n
Agency MaY2010
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Table of Contents
I. Purpose
II. Compliance Guidelines
a. Independent Professional Engineers (PE's) Review & Verifications
b. Engineering Report
i. Executive Summary
ii. Processional Licensed Engineer Documentation
iii. Third Party Independences
iv. Verifications, Exceptions or Discrepancies
v. Confidential Business Information (CBI)
vi. Conclusion
c. Reporting Requirements
d. Recordkeeping Requirements
III. EPA's Review and Approval
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I. Purpose
All renewable fuel producers, domestic or foreign, are required to conduct an engineering
review, and submit a report as part of their registration requirements pursuant to 40 CFR §
80.1450.l The purpose of the engineering review is for a licensed professional engineer (PE)
who also qualifies as an independent third party (referenced herein as "independent PE") to
evaluate and confirm the accuracy of the information the renewable fuel producer is required to
report to EPA as part of their registration. EPA will review the independent PE's report to assist
the Agency in evaluating compliance with the registration requirements. EPA has received an
influx of requests to provide guidance for the engineering review and report. In response to these
requests, EPA has drafted these compliance guidelines to help clarify the requirements of the
engineering review and to provide a suggested format for the report.
Regulated parties may use these guidelines to aid in achieving compliance with the RFS2
program regulations. However, these guidelines do not in any way alter the requirements of those
regulations. While the guidance provided in these guidelines reflect the Agency's general plans
for implementation of the regulations at this time, some of the guidance may change as
additional information becomes available, or as the Agency further considers certain issues.
These compliance guidelines do not establish or change legal rights or obligations. They do not
establish binding rules or requirements and are not fully determinative of the issues addressed.
Agency decisions in any particular case will be made applying the law and regulations on the
basis of specific facts and actual action.
These guidelines were drafted primarily based on the RFS2 regulations published on
March 26, 2010 (at 75 Fed. Reg. 14670), that will become effective on July 1, 2010. However,
on April 30, 2010, the EPA Administrator signed a direct final rule to amend these regulations
(the "technical amendments"). These amendments can be viewed at
http://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm, and will be published in the
Federal Register. The technical amendments will be effective on July 1, 2010, thereby
supplanting the corresponding RFS2 regulations, unless adverse public comment is received with
respect to the amendments. EPA issued the technical amendments as a direct final rulemaking
because it does not anticipate adverse comment on them. Therefore, EPA has drafted this
guidance document to reflect the changes made by the technical amendments, since we anticipate
they will be effective on July 1, 2010 and supplant the corresponding RFS2 regulations they
amend. However, if adverse comment is received on any technical amendment during the
comment period set forth in the direct final rule, EPA will issue a Federal Register Notice
withdrawing that technical amendment from the direct final rule, and will consider the adverse
comment(s) before issuing a new final rule. In the event of such a withdrawal, the un-amended
rule that was part of the RFS2 rulemaking that was published on March 26, 2010 will become
effective on July 1, 2010, and will remain in effect pending the new final rule. EPA notes
throughout this document instances where the guidance is based on a technical amendment.
1 EPA's technical amendments, described in paragraph three of this document, also requires registration of foreign
ethanol producers who produce ethanol for use in transportation fuel, heating oil or jet fuel, but who do not add
denaturant to their product.
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II. Compliance Guidelines
a. Independent PE's Review and Verifications
The independent PE must review and evaluate the accuracy of all information the
renewable fuel producer submitted to EPA as part of their registration requirements pursuant to
40 CFR § 80.1450. The independent PE's verifications should be based upon a site visit and
review of all relevant documents. As clarified in the Q/As posted on the RFS website
(http://www.epa.gov/otaq/fuels/renewablefuels/compliancehelp/rfs2-aq.htm), the site visit to the
renewable fuel facility should be performed by a professional licensed engineer. Based on the
site visit and review of all relevant information, the independent PE should describe how he or
she evaluated the accuracy of the information, state whether he or she agrees with the
information, and identify any exceptions between his or her findings and the registration
information submitted by the renewable fuel producer to EPA pursuant to 40 CFR §
80.1450(b)(2).
The independent PE should also verify the information (or note exceptions to) in the
process heat fuel supply plan,2 which should be submitted by the renewable fuel producer as a
supplemental plan with their registration. In addition, for a producer who uses separated food
waste, separated yard waste or separated municipal solid waste (MSW) as feedstock for
producing renewable fuel, the independent PE should review and verify (or note exceptions to)
the information in the applicable supplemental separation plan(s) required to be submitted by the
renewable fuel producer as part of their registration. The requirements for the separated yard
waste, separated food waste, and separated MSW plans3 are stipulated in 40 CFR
§80.1450(b)(vii)(A), (vii)(B) and (viii), respectively. All supporting documents used by the
independent PE to conduct the engineering review should be included in or attached as
appendices to the report.
b. Engineering Report
There is no requirement for the independent PE to fill out any specific forms or follow
any specific format for the engineering report. However, the engineering report and all
supporting documentation, including data, diagrams, permits, etc. must be submitted in English.
Also, for ease of review and consistency purposes, EPA recommends the independent PE
summarize and submit his or her verifications for the engineering review in a report format,
which could include for example, a title page, a table of contents, numbered pages, numbered
The process heat fuel supply plan is currently referred to as the fuel supply plan in 40 CFR § 80.1450(b)(3). EPA's
technical amendments, described in paragraph 3 of this document, amends the regulations to rename the fuel supply
plan to "process heat fuel supply plan," move the plan requirements from §80.1450(b)(3) to §80.1450(b)(l)(iv) and
revise some of the plan requirements.
3 EPA is drafting compliance guidelines for the separated MSW plan that will be posted on the RFS website in the
near future.
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sections, section titles and subtitles, a reference page, appendices, etc. The independent PE
should separate out any information that the renewable fuel producer asserts is confidential (and
any statements of the independent PE that is related to that information) into a section in the
report that is clearly labeled as "Confidential Business Information (CBI)." The engineering
report could include, but need not necessarily be limited to, the following sections:
Section 1: Executive Summary
Section 2: Professional Licensed Engineer Qualifications
Section 3: Third Party Independence
Section 4: Verifications, Exceptions or Discrepancies
Section 5: Confidential Business Information (CBI)
Section 6: Conclusion
Appendices
i. Executive Summary
The executive summary should be a brief summary that could include, but is not
necessarily limited to, identification of the renewable fuel producer, identification of the
independent PE, the type fuel produced from the production facility, whether the facility is
domestic or foreign, identification of sections(s) of the engineering report that is deemed by the
renewable fuel producer as confidential business information (CBI), and significant verifications,
including any significant exceptions between the independent PE's engineering review and the
registration information that was submitted by the renewable fuel producer to EPA.
ii. Professional Licensed Engineer Documentation
The RFS2 regulations require that the independent PE provide EPA with "documentation of
his or her qualifications." EPA interprets this section to include documentation of both technical
expertise, and the independence requirements in 40 CFR 80.1450(b)(2)(ii). The independent PE
should provide documentation of his or her professional engineer's license as issued by an
appropriate state agency in the United States (or foreign equivalent), including a copy of license,
the license number and a statement stating that the professional engineer is not disbarred,
suspended, or proposed for suspension or disbarment to the Government-wide Debarment and
Suspension regulations, 40 CFR part 32, or the Debarment, Suspension and Ineligibility
provisions of subpart 9.4.
In addition, the independent PE should provide documentation of his or her work experience
in the chemical engineering field, (which can be experience related to renewable fuel
production). The independent PE can document his or her work experience in a descriptive
summary paragraph, or in a resume format as an appendix to the engineering report.
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iii. Third Party Independence
To qualify as an independent third party, the professional engineer conducting the
engineering review cannot be operated by the renewable fuel producer or any subsidiary or
employee of the renewable fuel producer. The professional engineer must be free of "any
interest" in the fuel producer's business, and equally, the renewable fuel producer must be free of
any interest in the professional engineer's business. Examples of the types of interest that would
disqualify a professional engineer from conducting the engineering reviews would be significant
ownership of stock in the company, being an employee or director of the company, having an
arrangement or negotiating for future employment with the company, or having a substantial
professional interest in the outcome of the engineering review.
The professional engineer should consider, in accordance with their professional license,
professional code of ethics and any internal vetting process within his or her company, whether
he or she has the quality of independence that is appropriate to conduct the engineering review.
If the professional engineer deems him or herself qualified as an independent third party based
on those considerations, then the professional engineer should also evaluate the specific
regulatory requirements for independence in 40 CFR §80.1450(b)(2)(ii). Documentation with
respect to satisfying those requirements could include statements in the engineering report that:
The third party is not operated by the renewable fuel producer or any subsidiary or
employee of the renewable fuel producer.
The third party is free of any interest in the renewable fuel producer's business.
The renewable fuel producer is free of all interest in the third party's business.
iv. Verifications, Exceptions or Discrepancies
The independent PE should review and evaluate the accuracy of all the registration
information the renewable fuel producer is required to submit to EPA for registration. The
independent PE should identify each registration requirement separately in the engineering report
and either provide verification of the accuracy of the information submitted by the renewable
fuel producer to EPA to fulfill the registration requirement or identify any exceptions or
discrepancies between the information obtained by the independent PE through the site visit or
otherwise and the information the renewable fuel producer submitted to EPA for registration.
The renewable fuel producer is required to submit all the information stipulated in 40 CFR
Section 80.1450(b) as part of their registration requirement. EPA is requesting the independent
PE to review, verify (or note exceptions to) the producer's submitted registration information in
a narrative format in the engineering report as suggested below.
1. List the types of renewable fuel that are identified in the renewable fuel producer's
registration, and either verify or identify exceptions to the list of fuels actually produced
at the facility, the fuels the renewable fuel producer intends to produce, and the fuels the
facility is capable of producing without significant modifications. Verify that the facility
is capable of producing all renewable fuels listed by the renewable fuel producer without
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2. For each renewable fuel the facility is capable of utilizing without signification
modification to the existing facility, list all of the feedstocks and either verify or indicate
exceptions with the feedstock information submitted by the renewable fuel producer. For
example, Table 1 in 40 CFR Section 80.1426(f)(l) identifies typical feedstocks used to
produce renewable fuel, such as corn starch, starches from crop residue and annual cover
crops, soybean oil, oil from annual cover crops, algal oil, biogenic waste oils/fats/greases,
non-food grade corn oil, sugarcane, cellulosic biomass from crop residue, slash, pre-
commercial thinnings and tree residue, annual cover crops, switchgrass, miscanthus,
cellulosic components of separated food waste, cellulosic components of separated
MSW, non-cellulosic portions of separated food waste, etc.4
3. For each renewable fuel the facility is capable of utilizing without signification
modification to the existing facility, describe the facility's renewable fuel production
process, which could include a diagram of the overall process train, and a description of
each stage in the process train, including, but is not necessarily limited to, major and
minor ancillary equipment, process heat fuel, collection and treatment of waste streams,
etc. The facility's production process train may be diagramed as a simple drawing with
blocks and arrows. Detailed drawings such as blue prints or piping and instrumentation
diagrams (P&IDs) do not need to be submitted in the engineering report. Verify (or note
any exceptions to) the information is consistent with registration information submitted to
EPA by the renewable fuel producer.
For example, a process train for a corn ethanol production facility may include a dry
milling process. In a typical dry mill process, the corn is first screened to remove any
unwanted debris, and then the kernel is grounded into coarse flour referred to a "meal" in
a hammer mill. The meal is then cooked to prepare the starch for fermentation, and from
there the fermented mash is pumped into a multi-column distillation process, where
additional heat is added, and the columns utilize the differences in the boiling points of
ethanol and water to boil off and separate the ethanol, resulting in hydrous ethanol
(ethanol with 5 percent water by volume). The stillage, the residue from the distillation
process, is pumped out from the bottom of the columns into centrifuges. The hydrous
ethanol is dehydrated as it is passed through a molecular sieve to remove the excess
water, resulting in an anhydrous ethanol. Denaturant is added to the ethanol to make it
unfit for human consumption, and it is placed into storage. The co-products from this
process are carbon dioxide, stillage and distillers grains with solubles (DGS). The carbon
dioxide is purified through scrubbers and sold to the food processing industry for use in
carbonated beverages or flash-freezing applications. The DGS can be sold as wet
(WDGS) or dried (DGS) to agricultural market as animal feed. The independent PE's
narrative description of the production process for a dry mill corn ethanol plant should
include at least the level of detail of this paragraph.
4 Certain entries to Table 1 in 40 CFR §80.1426 were changed in EPA's technical amendments, as described in
paragraph 3 of this document, such as entries for crop residue, tree residue and pre-commercial thinnings, etc.
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As another example, a process train for biogas such as landfill gas includes a gas
collection system (gas wells, trenches, header, etc.) to collect the landfill gas, then the
landfill gas is passed through a clean-up system, which may consist of a chiller, gas-to-
gas heat exchanger, silica media or scrubber, etc. to remove impurities in the landfill gas
stream such as hydrogen sulfide, silica compounds, water, organic sulfur, halogen
compounds, solid components, etc. A purified gas stream leaves the clean-up system,
which can be injected into a pipeline for use downstream or can be processed further into
a transportation fuel. The gas may be compressed at high pressures to produce
compressed natural gas (CNG), or condensed into a liquid by cooling it to produce
liquefied natural gas (LNG) or the gas may be sent directly to a gas turbine to produce
renewable electricity. Each step in such a process chain should be described in the
independent PE's narrative.
Other examples of typical processes used in renewable fuel production include trans-
esterfication to produce biodiesel, hydroheating to produce renewable diesel, Fischer-
Tropsch to produce cellulosic naphtha, etc. Each process would employ a number of
steps, which should be diagrammed and discussed in the same level of detail as the above
examples.
4. For each renewable fuel the facility is capable of utilizing without signification
modification to the existing facility, list the types of co-products produced and verify or
indicate any exceptions to the list of co-products submitted by the producer to EPA
during registration. Examples of typical co-products produced from renewable fuel
production include dried distiller's grain (DDGS), carbon dioxide, industrial alcohols,
oils, nutraceutical oils, carotenoids, etc.
5. List the types of process heat fuels used at the facility and verify or identify exceptions
with the information provided to EPA by the renewable fuel producer. In addition, the
independent PE should review and verify or indicate exceptions with respect to the
process heat fuel supply plan that was submitted to EPA by the renewable fuel producer
(please refer to footnote #2 in this document). The process heat fuel supply as modified in
the technical amendments, includes the following requirements5 for producers:
For all process heat fuel, provide each type of process heat fuel used at the facility, such
as natural gas, biogas, renewable electricity, coal, etc. and provide the name and address
of the company supplying each process heat fuel to the renewable fuel facility.
For biogas used for process heat6, provide the locations from which biogas was produced
or extracted, the name of suppliers of all biogas the producer purchase for use as process
heat at the facility and an affidavit from the biogas supplier stating its intent to supply
biogas to the renewable fuel producer, and the quantity and energy content of the biogas
that it intends to provide to the renewable fuel producer.
6 The requirements related to biogas used for process heat were moved from 40 CFR Section 80.1450(b)(3) in the
March 26, 2010 RFS2 rule to 40 CFR 1450(b)(l)(iv)(B) in the technical amendments.
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6. If applicable, the independent PE should review the information in the supplemental
plans submitted to EPA by the renewable fuel producers for registration, such as the
separated yard waste plan, the separated food waste plan or the separated MSW plan and
identify, if possible, any exceptions that can be verified during the site visit and the
required record review. The required information to be included in these supplemental
plans are stipulated in 40 CFR §80.1450(b)(vii)(A), (vii)(B) and (viii), respectively
(please refer to footnote #3 of this document for the separated MSW plan).
7. Review all permits submitted by the renewable fuel producer to EPA that support the
facility's baseline volume and verify, or indicate any exceptions, that all permits specified
in 80.1450(b)(l)(v)7 have been submitted. For facilities claiming the exemption
described in 80.1403(c) these are all air permits issued by EPA, state, local air pollution
agencies or foreign governmental agencies that govern the construction and/or operation
of the renewable fuel facility that were issued or revised no later than December 19,
2007. For facilities claiming the exemption in 80.1403(d) the permits must be those
issued or revised no later than December 31, 2009. For other facilities copies of the
most recent applicable permits that govern the construction and/or operation of the
facility must be submitted.
8. Review the content of the permits described in paragraph 6, above, to determine whether
one or more of them specify a maximum volume output of renewable fuel production for
the facility, and state the results of this review. If no maximum volume output is
specified in the appropriate permits for the facility type, review documents submitted to
EPA by the renewable fuel producer to demonstrate the facility's actual peak capacity as
defined in 80.14018, and verify, or indicate any exceptions, that all documents necessary
to demonstrate actual peak capacity have been submitted.
9. For facilities claiming the exemption described in 80.1403(c) or (d), the independent PE
should review the evidence submitted by the renewable fuel producer to EPA during
registration demonstrating the date that construction commenced (as defined in 40 CFR
§80.1403(a)(4)), including contracts with construction and other companies related to
construction of the facility and all applicable air permits issued by EPA, a state, local air
pollution control agencies, or foreign governmental agencies that governed the
construction and/or operation of the renewable fuel facility during construction and when
first operated. The independent PE should verify, or identify any exceptions, that all
required information has been provided to EPA.
7 Pursuant to 40 CFR §80.1450(v) of the technical amendment, all renewable fuel facilities must provide
documentation to establish their baseline volume. Grandfathered facilities will still required to submit
documentation to verify their baseline volume (reported as permitted capacity or actual capacity) and the date of
construction commencement as defined in 40 CFR §80.1403(a)(4).
8 The definition of "actual peak capacity" was moved in the technical amends from 40 CFR §80.1403(a)(3) to 40
CFR §80.1401.
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v. Confidential Business Information (CBI)
Any information the renewable fuel producer asserts is CBI should be included and
discussed in this section. References to information to this section may be made from other
sections in the report.
vi. Conclusion
This section should include any conclusions made by the independent PE for the
engineering review. It may also include any supplemental explanation, qualifications,
description, data, etc. that may not have been included elsewhere in the engineering report, but
which the independent PE believes may be relevant or helpful to EPA's analysis of the
renewable fuel production facility.
c. Reporting Requirements
Most renewable fuel producers are required to submit all required information for
registration, including copies of applicable permits, engineering review and the applicable
supplemental plans, etc. to EPA by July 1, 2010, or 60 days prior to the generation of RINs,
whichever date comes later. (The timing rules for facilities claiming grandfathered status are
somewhat different, and are discussed blow.) Renewable fuel producers may submit required
registration elements all at once or incrementally over time, providing only that all requirements
are fulfilled by the applicable deadline. For example, producers may choose to submit the
applicable supplemental plans (i.e. process heat fuel supply plan, the separated yard waste plan,
the separated food waste plan and the separated MSW plan)9 prior to submitting the engineering
review; or they may submit the applicable supplemental plans with their engineering review.
The required submission dates are somewhat different for facilities claiming an exemption
under 80.1403(c) or (d). Such facilities that wish to generate RINs in the short term must
comply with all registration requirements (including submission of supplemental plans and
permits) by July 1, 2010, or 60 days prior to generating RINs, whichever date is later except for
the engineering review. The technical amendments, in section 80.1450(b)(2)(vi), clarify EPA's
original intent, as expressed in the preamble to the RFS2 rule, to extend the deadline for the
engineering review for grandfathered facilities generating RINs in 2010 to December 31, 2010.
EPA wishes to further clarify, however, that pursuant to 40 CFR 80.1450(f), facilities that may
wish to assert a claim for an exemption under 80.1403(c) or (d), and which will not generate
RINs in 2010, are not required to submit an engineering review or any component of their
registration materials to EPA until 60 days prior to generating RINs or July 1, 2013, whichever
date is later.
Every three calendar years from the date of initial registration, the renewable fuel producer
is required to submit an updated engineering review to EPA pursuant to 40 CFR §80.1450(d)(3).
9 The renewable fuel producer should provide, in a timely manner, all information required to be submitted for
registration pursuant to 40 CFR §80.1450, including applicable supplemental plans, to the independent PE, who will
be conducting their engineering review.
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If in the meantime, a renewable fuel producer makes changes to their facility that will qualify
their renewable fuel for a renewable fuel category, or D code, that is not reflected in the original
registration information that they submitted to EPA, then an updated engineering review must be
submitted to EPA at least 60 days prior to producing a new type of renewable fuel pursuant to 40
CFR§80.1450(d)(l).
The renewable fuel producer should submit one paper copy of the engineering report that is
signed by the independent PE. If possible, EPA requests the producer also provide one electronic
copy (e.g. compact disc (CD) in a read-only format) with their paper copy of the engineering
report.
d. Recordkeeping Requirements
The independent PE must retain all records pertaining to the engineering review, verification
and report for a period of five years from the date of creation and must provide EPA with such
records upon request pursuant to Section 80.1450(b)(2)(iii).
The renewable fuel producer must retain for five years all documents required for registration
under 80.1450, including information on fuels and products, feedstocks, facility production
processes, process changes, capacity, energy sources and independent PE's engineering review,
pursuant to Sections 80.1450(b)(2)(iv) and 80.1454(b)(6).
III. EPA's Review and Approval
The renewable fuel producer is required to submit the engineering review as part of their
registration requirement. The engineering review will be accepted once they are submitted to
EPA, and will be deemed in pending status, waiting for approval from EPA. EPA will review the
engineering review, request supplemental information, if necessary, and will make a
determination if the engineering review is approved or not approved. Once all required
registration information is submitted by renewable fuel producer and accepted by EPA through
CDX, the producer will be able to start using their EMTS account to manage their RINs
transactions. The producer can continue to use their EMTS account while EPA is in the process
of reviewing their engineering review. EPA may suspend a producer's EMTS account if the
producer fails to promptly correct any deficiencies identified by the Agency in its review of the
engineering report. EPA may take enforcement action if the engineering review fails to comply
with the regulations.
EPA advises renewable fuel producers to not submit engineering reviews that do not at
least contain the information required in Section 80.1450. Similarly, EPA advises renewable fuel
producers not to submit superfluous information such as large printouts of years of data on
production volumes. Whenever possible, summarized data with brief descriptions of its
applicability and the source of the data is sufficient. An engineering report that is lacking
significant information may be rejected without further review by EPA and may require a
resubmittal of the entire engineering report. EPA's approval of the engineering review will be
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based on our assumption that the information submitted by the renewable fuel producer and the
information verified by the independent PE are true and accurate. Thus, EPA's approval does not
suggest that EPA has verified the factual content of the engineering report or the registration
submissions.
While there is no deadline for EPA to approve the engineering review after it has been
received by EPA, we will strive to review them in a timely, but thorough manner. EPA
anticipates a high volume of engineering reviews to be submitted on or near July 1, 2010. EPA
encourages producers to submit their engineering reviews as early as possible to help EPA staff
manage the review of the engineering reports.
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