Proposed Rule2025-08572
Rescinding the Production Incentives for Cellulosic Biofuels
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 16, 2025
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE or Department) is proposing to rescind the Production Incentives for Cellulosic Biofuels regulations. The Department seeks comments on any reason to rescind or not rescind these regulations.
Full Text
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<title>Federal Register, Volume 90 Issue 94 (Friday, May 16, 2025)</title>
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[Federal Register Volume 90, Number 94 (Friday, May 16, 2025)]
[Proposed Rules]
[Pages 20942-20944]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08572]
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DEPARTMENT OF ENERGY
10 CFR Part 452
[Docket No. EERE-2025-OT-0031]
RIN 1904-AG07
Rescinding the Production Incentives for Cellulosic Biofuels
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy (DOE).
ACTION: Proposed rule; request for comments.
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SUMMARY: The U.S. Department of Energy (DOE or Department) is proposing
to rescind the Production Incentives for Cellulosic Biofuels
regulations. The Department seeks comments on any reason to rescind or
not rescind these regulations.
DATES: Comments must be received on or before June 16, 2025.
ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> under docket
number EERE-2025-OT-0031.
FOR FURTHER INFORMATION CONTACT: Mr. David Taggart, U.S. Department of
Energy, Office of the General Counsel, GC-1, 1000 Independence Avenue
SW, Washington, DC 20585-0121. Telephone: (202) 586-5281. Email:
<a href="/cdn-cgi/l/email-protection#6b2f242e2c0e050e190a0728041e05180e072b031a450f040e450c041d"><span class="__cf_email__" data-cfemail="80c4cfc5c7e5eee5f2e1ecc3eff5eef3e5ecc0e8f1aee4efe5aee7eff6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. General Discussion
The U.S. Department of Energy is proposing to rescind the outdated
regulations at 10 CFR part 452, Production Incentives for Cellulosic
Biofuels. DOE seeks comments on any reason to rescind or not rescind
these regulations. Specifically, DOE seeks comments on the relevancy of
10 CFR part 452 and whether DOE should retain these regulations in case
funding is appropriated again to the relevant authority, section 942 of
the Energy Policy Act of 2005 (Pub. L. 109-58), codified at 42 U.S.C.
16251, for this activity.
In accordance with 5 U.S.C. 553(b)(4), a summary of this rule may
be found at <a href="http://www.regulations.gov">www.regulations.gov</a>.
II. Procedural Issues and Regulatory Review
A. Executive Orders 12866
Executive Order (E.O.) 12866, ``Regulatory Planning and Review,''
58 FR 51735 (Oct. 4, 1993), requires agencies, to the extent permitted
by law, to (1) propose or adopt a regulation only upon a reasoned
determination that its benefits justify its costs (recognizing that
some benefits and costs are difficult to quantify); (2) tailor
regulations to impose the least burden on society, consistent with
obtaining regulatory objectives, taking into account, among other
things, and to the extent practicable, the costs of cumulative
regulations; (3) select, in choosing among alternative regulatory
approaches, those approaches that maximize net benefits; (4) to the
extent feasible, specify performance objectives, rather than specifying
the behavior or manner of compliance that regulated entities must
adopt; and (5) identify and assess available alternatives to direct
regulation, including providing economic incentives to encourage the
desired behavior, such as user fees or marketable permits, or providing
information upon which choices can be made by the public. For the
reasons stated in the preamble, this proposed regulatory action is
consistent with these principles. Section 6(a) of E.O. 12866 also
requires agencies to submit ``significant regulatory actions'' to OIRA
for review. OIRA has determined that this proposed regulatory action
constitutes a ``significant regulatory action'' under section 3(f) of
E.O. 12866. Accordingly, this proposed action was
[[Page 20943]]
submitted to OIRA for review under E.O. 12866.
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis (IRFA) and a
final regulatory flexibility analysis (FRFA) for any rule that by law
must be proposed for public comment, unless the agency certifies that
the rule, if promulgated, will not have a significant economic impact
on a substantial number of small entities. As required by E.O. 13272,
``Proper Consideration of Small Entities in Agency Rulemaking,'' 67 FR
53461 (Aug. 16, 2002), DOE published procedures and policies on
February 19, 2003, to ensure that the potential impacts of its rules on
small entities are properly considered during the rulemaking process.
68 FR 7990. DOE has made its procedures and policies available on the
Office of the General Counsel's website (<a href="http://www.energy.gov/gc/office-general-counsel">www.energy.gov/gc/office-general-counsel</a>).
DOE reviewed this proposed rescission under the provisions of the
Regulatory Flexibility Act and the policies and procedures published on
February 19, 2003. This proposal rescinds 10 CFR part 452. Therefore,
DOE tentatively concludes that the impacts of the proposed rescission
would not have a ``significant economic impact on a substantial number
of small entities,'' and that the preparation of an IRFA is not
warranted. DOE will transmit this certification and supporting
statement of factual basis to the Chief Counsel for Advocacy of the
Small Business Administration for review under 5 U.S.C. 605(b).
C. Review Under the Paperwork Reduction Act
This proposed rescission imposes no new information or record-
keeping requirements. Accordingly, OMB clearance is not required under
the Paperwork Reduction Act. (44 U.S.C. 3501 et seq.).
D. Review Under the National Environmental Policy Act of 1969
DOE is analyzing this proposed action in accordance with the
National Environmental Policy Act of 1969, as amended, (NEPA) and DOE's
NEPA implementing regulations (10 CFR part 1021). DOE's regulations
include categorical exclusions for certain rulemakings. See 10 CFR part
1021, subpart D, appendices A and B. DOE is considering the categorical
exclusions potentially applicable to this proposed rule and welcomes
comment on the potential application of categorical exclusion(s). DOE
will complete its NEPA review before issuing the final rule.
E. Review Under Executive Order 13132
E.O. 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), imposes
certain requirements on Federal agencies formulating and implementing
policies or regulations that preempt State law or that have federalism
implications. The Executive order requires agencies to examine the
constitutional and statutory authority supporting any action that would
limit the policymaking discretion of the States and to carefully assess
the necessity for such actions. The Executive order also requires
agencies to have an accountable process to ensure meaningful and timely
input by State and local officials in the development of regulatory
policies that have federalism implications. On March 14, 2000, DOE
published a statement of policy describing the intergovernmental
consultation process it will follow in the development of such
regulations. 65 FR 13735.
DOE has examined this proposed rescission and has tentatively
determined that it would not have a substantial direct effect 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. Therefore, no further action is required
by E.O. 13132.
F. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil
Justice Reform,'' imposes on Federal agencies the general duty to
adhere to the following requirements: (1) eliminate drafting errors and
ambiguity, (2) write regulations to minimize litigation, (3) provide a
clear legal standard for affected conduct rather than a general
standard, and (4) promote simplification and burden reduction. 61 FR
4729 (Feb. 7, 1996). Regarding the review required by section 3(a),
section 3(b) of E.O. 12988 specifically requires that Executive
agencies make every reasonable effort to ensure that the regulation (1)
clearly specifies the preemptive effect, if any, (2) clearly specifies
any effect on existing Federal law or regulation, (3) provides a clear
legal standard for affected conduct while promoting simplification and
burden reduction, (4) specifies the retroactive effect, if any, (5)
adequately defines key terms, and (6) addresses other important issues
affecting clarity and general draftsmanship under any guidelines issued
by the Attorney General.
Section 3(c) of E.O. 12988 requires Executive agencies to review
regulations in light of applicable standards in section 3(a) and
section 3(b) to determine whether they are met or it is unreasonable to
meet one or more of them. DOE has completed the required review and
determined that, to the extent permitted by law, this proposed
rescission meets the relevant standards of E.O. 12988.
G. Review Under the Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires each Federal agency to assess the effects of Federal
regulatory actions on State, local, and Tribal governments and the
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531).
For a regulatory action likely to result in a rule that may cause the
expenditure by State, local, and Tribal governments, in the aggregate,
or by the private sector of $100 million or more in any one year
(adjusted annually for inflation), section 202 of UMRA requires a
Federal agency to publish a written statement that estimates the
resulting costs, benefits, and other effects on the national economy.
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to
develop an effective process to permit timely input by elected officers
of State, local, and Tribal governments on a ``significant
intergovernmental mandate,'' and requires an agency plan for giving
notice and opportunity for timely input to potentially affected small
governments before establishing any requirements that might
significantly or uniquely affect them. On March 18, 1997, DOE published
a statement of policy on its process for intergovernmental consultation
under UMRA. 62 FR 12820. DOE's policy statement is also available at
<a href="http://www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf">www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf</a>.
DOE examined this proposed rule rescission according to UMRA and
its statement of policy and determined that the proposed rescission
does not contain a Federal intergovernmental mandate, nor is it
expected to require expenditures of $100 million or more in any one
year by State, local, and Tribal governments, in the aggregate, or by
the private sector. As a result, the analytical requirements of UMRA do
not apply.
H. Review Under the Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
[[Page 20944]]
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any rule that may affect family well-being.
This proposed rule rescission would not have any impact on the autonomy
or integrity of the family as an institution. Accordingly, DOE has
concluded that it is not necessary to prepare a Family Policymaking
Assessment.
I. Review Under Executive Order 12630
Pursuant to E.O. 12630, ``Governmental Actions and Interference
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March
18, 1988), DOE has determined that this proposed rescission would not
result in any takings that might require compensation under the Fifth
Amendment to the U.S. Constitution.
J. Review Under the Treasury and General Government Appropriations Act,
2001
Section 515 of the Treasury and General Government Appropriations
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to
review most disseminations of information to the public under
information quality guidelines established by each agency pursuant to
general guidelines issued by OMB. OMB's guidelines were published at 67
FR 8452 (Feb. 22, 2002), and DOE's guidelines were published at 67 FR
62446 (Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, Improving
Implementation of the Information Quality Act (April 24, 2019), DOE
published updated guidelines which are available at: <a href="http://www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf">www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf</a>. DOE has
reviewed this proposed rescission under the OMB and DOE guidelines and
has concluded that it is consistent with applicable policies in those
guidelines.
K. Review Under Executive Order 13211
E.O. 13211, ``Actions Concerning Regulations That Significantly
Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22,
2001), requires Federal agencies to prepare and submit to OIRA at OMB,
a Statement of Energy Effects for any significant energy action. A
``significant energy action'' is defined as any action by an agency
that promulgates or is expected to lead to promulgation of a final
rule, and that: (1) is a significant regulatory action under Executive
Order 12866, or any successor order and is likely to have a significant
adverse effect on the supply, distribution, or use of energy; or (2) is
designated by the Administrator of OIRA as a significant energy action.
For any significant energy action, the agency must give a detailed
statement of any adverse effects on energy supply, distribution, or use
should the proposal be implemented, and of reasonable alternatives to
the action and their expected benefits on energy supply, distribution,
and use.
This proposed rescission is not a significant regulatory action
under E.O. 12866. Moreover, it would not have a significant adverse
effect on the supply, distribution, or use of energy, nor has it been
designated as such by the Administrator at OIRA. Accordingly, DOE has
not prepared a Statement of Energy Effects.
L. Review Under the Information Quality Bulletin for Peer Review
On December 16, 2004, OMB, in consultation with the Office of
Science and Technology Policy (``OSTP''), issued its Final Information
Quality Bulletin for Peer Review (``the Bulletin''). 70 FR 2664 (Jan.
14, 2005). The Bulletin establishes that certain scientific information
shall be peer reviewed by qualified specialists before it is
disseminated by the Federal Government, including influential
scientific information related to agency regulatory actions. The
purpose of the Bulletin is to enhance the quality and credibility of
the Government's scientific information. Under the Bulletin, the energy
conservation standards rulemaking analyses are ``influential scientific
information,'' which the Bulletin defines as ``scientific information
the agency reasonably can determine will have, or does have, a clear
and substantial impact on important public policies or private sector
decisions.'' 70 FR 2664, 2667. In response to OMB's Bulletin, DOE
conducted formal peer reviews of the energy conservation standards
development process and the analyses that are typically used and
prepared a report describing that peer review. Generation of this
report involved a rigorous, formal, and documented evaluation using
objective criteria and qualified and independent reviewers to make a
judgment as to the technical/scientific/business merit, the actual or
anticipated results, and the productivity and management effectiveness
of programs and/or projects. Because available data, models, and
technological understanding have changed since 2007, DOE has engaged
with the National Academy of Sciences to review DOE's analytical
methodologies to ascertain whether modifications are needed to improve
the Department's analyses. DOE is in the process of evaluating the
resulting report.
M. Review Under Additional Executive Orders and Presidential Memoranda
DOE has examined this proposed rule rescission and has tentatively
determined that it is consistent with the policies and directives
outlined in E.O. 14154 ``Unleashing American Energy,'': E.O. 14192,
``Unleashing Prosperity Through Deregulation,'' and Presidential
Memorandum, ``Delivering Emergency Price Relief for American Families
and Defeating the Cost-of-Living Crisis.'' This proposed rescission, if
finalized as proposed, is expected to be an Executive Order 14192
deregulatory action.
IV. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this proposed
rule; request for comments.
List of Subjects in 10 CFR Part 452
Fuel, Grant programs, Recordkeeping and reporting requirements,
Renewable energy.
Signing Authority
This document of the Department of Energy was signed on May 9,
2025, by Chris Wright, Secretary of Energy. That document with the
original signature and date is maintained by DOE. For administrative
purposes only, and in compliance with requirements of the Office of the
Federal Register, the undersigned DOE Federal Register Liaison Officer
has been authorized to sign and submit the document in electronic
format for publication, as an official document of the Department of
Energy. This administrative process in no way alters the legal effect
of this document upon publication in the Federal Register.
Signed in Washington, DC, on May 9, 2025.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
PART 452--[REMOVED]
0
For the reasons set forth in the preamble, under the authority of 42
U.S.C. 7101 et seq., 42 U.S.C. 16251, DOE is proposing to remove part
452 of chapter II of title 10 of the Code of Federal Regulations.
[FR Doc. 2025-08572 Filed 5-12-25; 9:30 am]
BILLING CODE 6450-01-P
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