Guidance for Remedial Actions for the Sulfur and Benzene Averaging, Banking, and Trading (ABT)

This document describes remedial actions for specific situations involving credits that were erroneously generated or retired by parties. These remedial actions, unless specified below, require EPA approval prior to completion.

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Situation 1: Over-generated Credits

A fuel manufacturer generates more sulfur or benzene credits than allowed under 80.1615(c), 80.1280(b) and 1090.725

Problem:

The generated credits are invalid and cannot be used to show compliance.

Remedial Actions:

The gasoline manufacturer that generated the credits (“credit generator”) must immediately contact EPA Fuels Program Support via e-mail with the details of the over-generation and resubmit the compliance reports through CDX if necessary. Remedial actions will be assessed by EPA on a case-by-case basis. The e-mail to EPA Fuels Program Support should include the following details:

  • EPA Company ID;
  • EPA Facility ID;
  • Correct Total Volume;
  • Correct Annual Average Concentration;
  • Number of credits already generated in EMTS;
  • Number of credits that were invalidly generated;
  • Type of credits that were invalidly generated: Sulfur or Benzene;
  • Credit year of credits that were invalidly generated;
  • An explanation of how the over-generation of credits occurred;
  • Whether the credits have been sold or if they are still in the credit generator’s account;
  • Confirmation that the revised compliance reports were resubmitted through EPA's Central Data Exchange; and
  • Steps taken to prevent this violation from occurring again

Situation 2: Under-generated Credits

A fuel manufacturer does not generate sufficient sulfur or benzene credits using specific equations and values in 80.1615(c), 80.1280(b) and 1090.725.

Problem:

Properly generated sulfur and benzene credits generated must be calculated using specific equations and correct values. The fuel manufacturer that generated the credits should take the following remedial actions.

Remedial Actions:

The fuel manufacturer that generated the credit must immediately contact EPA Fuels Program Support via e-mail with the details of the under-generation and resubmit the compliance reports through CDX if necessary. Remedial actions will be assessed by EPA on a case-by-case basis. The e-mail to EPA Fuels Program Support should include the following details:

  • EPA Company ID;
  • EPA Facility ID;
  • Number of credits already generated in EMTS;
  • Number of credits that were under-generated;
  • Type of credits that were under-generated: Sulfur or Benzene;
  • EMTS Transaction ID associated with the initial generation
  • EMTS Generate Reason code used for the initial generation
    • Refine non-renewable fuel (10);
    • Import non-renewable fuel (20);
    • Remedial Action – Refiner Credits (30);
    • Remedial Action – Importer Credits (40)
  • Correct Total Volume;
  • Correct Annual Average Concentration;
  • Credit year of the credits that were under-generated;
  • An explanation of how the under-generation of credits occurred;
  • Confirm that the revised compliance reports were resubmitted through EPA's Central Data Exchange; and
  • Steps taken to prevent this violation from occurring again

Situation 3: Missed Credit Generation Reporting Deadline

A fuel manufacturer does not submit reports on generated credits by the compliance deadline as required by 80.1652(a), 80.1354(b) and 1090.905.

Problem:

Fuel manufacturers are required to submit sulfur and benzene credit generation reports by March 31 for the preceding compliance period (e.g., reports covering the calendar year 2021 must be submitted to EPA by no later than March 31, 2022).

Remedial Actions:

The fuel manufacturer must immediately contact EPA Fuels Program Support via e-mail with the details of the missed-generation and resubmit the compliance reports through CDX if necessary. Remedial actions must be assessed by EPA on a case-by-case basis. The e-mail to EPA Fuels Program Support should include the following details:

  • EPA Company ID;
  • EPA Facility ID;
  • Number of credits that should have been generated in EMTS;
  • Generate credits as a Refiner or Importer?
  • Correct Total Volume;
  • Correct Annual Average Concentration;
  • Type of credit that should have been generated: Sulfur or Benzene;
  • Credit year of credits that should have been generated;
  • An explanation of how the credit generation deadline was missed;
  • Confirm that the revised compliance reports were resubmitted through EPA's Central Data Exchange; and
  • Steps taken to prevent this violation from occurring again

Situation 4: Over-retired Credits

A fuel manufacturer retires more credits than required for compliance as specified in 80.1616(a), 80.1295(a) and 1090.720(a)

Problem:

If a fuel manufacturer retired more credits than is required for compliance, the fuel manufacturer should take the following remedial actions.

Remedial Actions:

The fuel manufacturer must immediately contact EPA Fuels Program Support via e-mail with the details of the over-retirement and resubmit the compliance reports through CDX if necessary. Remedial actions will be assessed by EPA on a case-by-case basis. The e-mail to EPA Fuels Program Support should include the following details:

  • EPA Company ID;
  • Facility name and ID;
  • Compliance Period;
  • Correct Total Volume;
  • Correct Annual Average Concentration;
  • Number of credits already retired in EMTS;
  • Number of credits that were over retired;
  • Type of credits that were over retired: Sulfur or Benzene;
  • Credit year of credits that were over retired;
  • Number of times traded for the credits that were over retired;
  • An explanation of how the over-retirement of credits occurred;
  • Confirm that the revised compliance reports were resubmitted through EPA's Central Data Exchange; and
  • Steps taken to prevent this violation from occurring again

Situation 5: Under-retired of Credits

A fuel manufacturer retires fewer credits than required for compliance as provided in 80.1616(a), 80.1295(a) and 1090.720(a).

Problem:

If a fuel manufacturer retired fewer credits than is required for compliance, the fuel manufacturer should take the following remedial actions.

Remedial Actions:

The fuel manufacturer must immediately contact EPA Fuels Program Support via e-mail with the details of the under-retirement and resubmit the compliance reports through CDX if necessary. Remedial actions will be assessed by EPA on a case-by-case basis. The e-mail to EPA Fuels Program Support should include the following details:

  • Proof that there were sufficient credits in the company’s credit holdings at the retirement deadline to satisfy requirements;
  • EPA Company ID;
  • Facility Name and ID;
  • Compliance Period;
  • Correct Total Volume;
  • Correct Annual Average Concentration;
  • Number of credits already retired in EMTS;
  • Number of credits that were under-retired;
  • Type of credits that were under-retired: Sulfur or Benzene;
  • Credit year of credits that were under-retired;
  • Number of times traded for the credits that were were under-retired;
  • An explanation of how the under-retiring of credits occurred;
  • Confirm that the revised compliance reports were resubmitted through EPA's Central Data Exchange; and
  • Steps taken to prevent this violation from occurring again

Situation 6: Missed Credit Retirement Deadline

A fuel manufacturer does not retire sulfur or benzene credits prior to the compliance deadline as required under 80.1616(a), 80.1295(a) and 1090.720.

Problem:

Fuel manufacturers are required to retire properly generated sulfur and benzene credits for compliance by March 31 for the preceding compliance period (e.g., credits covering the 2021 compliance period must be submitted to EPA no later than March 31, 2022). If a fuel manufacturer has missed the compliance deadline for retiring credits, the fuel manufacturer should take the following remedial actions.

Remedial Actions:

The fuel manufacturer must immediately contact EPA Fuels Program Support via e-mail with the details of their missed credit retirement and resubmit the compliance reports through CDX if necessary. Remedial actions will be assessed by EPA on a case-by-case basis. The e-mail to EPA Fuels Program Support must include the following details:

  • Records indicating that the company owned sufficient credits to meet the requirements at the time of the retire deadline;
  • EPA Company ID;
  • Facility Name and ID;
  • Compliance Period;
  • Correct Total Volume;
  • Correct Annual Average Concentration;
  • Number of credits that should have been retired;
  • Type of credits that should have been retired: Sulfur or Benzene;
  • Credit year of credits that should have been retired; 
  • Number of times traded for the f credits that should have been retired;
  • An explanation of how the credit retire deadline was missed;
  • Confirm that the revised compliance reports were resubmitted through EPA's Central Data Exchange; and
  • Steps taken to prevent this violation from occurring again

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Last updated on December 18, 2024