EPA Issues Final  Rule  to Expand the
                   Definition  of Heating Oil  Under  the
                   Renewable  Fuel Standard Program
                       The U.S. Environmental Protection Agency (EPA) is issuing a
                       final rule to expand the definition of heating oil in the regulations
                   for the Renewable Fuel Standard (RES) program. The new defini-
                   tion of heating oil adds a category to include all fuel oils that are used
                   to generate heat to warm buildings or other facilities where people
                   live, work, recreate, or conduct other activities.  All fuels previously
                   included in the  original definition of heating oil continue to be in-
                   cluded in the expanded definition. Fuel oils in the new category of the
                   expanded definition that are used to generate process heat, power, or
                   other functions are not approved for RIN generation.

                   EPA is also finalizing specific registration, reporting, product transfer
                   document, and recordkeeping requirements applicable specifically to
                   the new category of fuel oils, which are necessary to demonstrate that
                   the fuel oil was or will be used to heat buildings  for climate control for
                   human comfort in order to generate RINs.

                   Overview
                   The Energy Independence and Security Act of 2007 (EISA) allowed that "additional
                   renewable fuel" replacing or reducing the quantity of fossil fuel in jet fuel and home
                   heating oil could also generate RINs. While this expansion provided an additional
                   avenue for RIN generation and encouraged renewable fuel production, the RES
                   definition of "heating oil" was confined to renewable fuels  that meet the chemical
                   specifications of diesel blends commonly sold for use as heating oil. We received a
                   number of requests to expand the definition of heating oil to include additional fuel
                   oils that do not meet the existing definition's technical specifications, but are none-
                   theless used for heating purposes.
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                EPA-420-F-13-045
                 September 2013

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This action expands the scope of the term "heating oil" in the RFS program to allow the genera-
tion of RINs for renewable fuel oil that meets all other applicable requirements of the program
and that is used to heat places where people live, work or recreate. The rule contains the
following elements, which apply only to fuel oils qualifying as heating oil under the expanded
definition:

    •   Minimum technical specifications for qualifying fuel oils,

    •   Detailed requirements for producer registration to ensure that the fuel oil is intended for
       use as heating oil only, including the collection of affidavits from end users stating that
       the fuel oil is being used or will be used for the proper purpose,

    •   Requirements for product transfer documents to ensure that all parties taking possession
       of the fuel oil are aware of its limited use and the penalties for improper use,

    •   Prohibition of using fuel oil produced and designated as heating oil and for which RINs
       have been generated for any use other than the heating of interior spaces of homes or
       buildings to control ambient climate for human comfort,

    •   Quarterly reporting requirements to ensure that the volumes of renewable fuel oil for
       which RINs were generated were received by the end user and used for the proper
       purpose.

The expanded definition of heating oil will encourage the growth of renewable fuel production
in the heating  oil market by adding value to renewable fuel oils through the generation of RINs,
In particular, the expanded definition could spur the production of advanced or cellulosic bio-
fuel, providing additional opportunities for regulated parties to meet their annual RFS volume
obligations.
For More Information
For more information, please visit the RFS website at:

          www.epa.gov/otaq/fuels/renewablefuels/regulations.htm

To submit a question on the RFS program, and to view Frequently Asked Questions, please visit:

          www.epa.gov/otaq/fuels/renewablefuels/compliancehelp/index.htm

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