40 CFR 1090.725 - Credit generation.

U.S. Code of Federal Regulations

Regulations most recently checked for updates: Aug 28, 2025

View all text of Subpart H [§ 1090.700 - § 1090.745]

§ 1090.725 - Credit generation.

(a) Parties that may generate credits. (1) No person other than a gasoline manufacturer may generate credits for use towards an average standard specified in subpart C of this part.

(2) No credits may be generated for gasoline produced by any of the following activities:

(i) Transmix processing.

(ii) Transmix blending.

(iii) Oxygenate blending.

(iv) Certified butane blending.

(v) Certified pentane blending.

(vi) Importation of gasoline by rail or truck using the alternative sampling and testing requirements in § 1090.1610.

(3) No sulfur credits may be generated at a facility if that facility used sulfur credits in that same compliance period.

(4) No benzene credits may be generated at a facility if that facility used benzene credits in that same compliance period.

(b) Credit year. Credits generated under this section must be identified by the compliance period of generation. For example, credits generated on gasoline produced in 2021 must be identified as 2021 credits.

(1) The number of sulfur credits generated is determined as follows:

Equation 1 to paragraph (c)(1)

CS,y = Vtot · Sstd−CSVy

Where:

CS,y = Sulfur credits generated for compliance period y, in ppm-gallons.

Vtot = Total volume of gasoline produced or imported during the compliance period, in gallons.

Sstd = Sulfur average standard, per § 1090.205(a), in ppm.

CSVy = Compliance sulfur value for compliance period y, per § 1090.700(a)(1), in ppm-gallons.

(2) The value of CS,y must be positive to generate credits.

(3) Sulfur credits calculated under paragraph (c)(1) of this section must be expressed to the nearest ppm-gallon. Fractional values must be rounded in accordance with § 1090.50.

(d) Benzene credit generation. (1) The number of benzene credits generated is determined as follows:

Equation 2 to paragraph (d)(1)

Where:

CBz,y = Benzene credits generated for compliance period y, in benzene gallons.

Vtot = Total volume of gasoline produced or imported during the compliance period, in gallons.

Bzavg_std = Benzene average standard, per § 1090.210(a), in volume percent.

CBVy = Compliance benzene value for compliance period y, per § 1090.700(b)(1)(i), in benzene gallons.

(2) The value of CBz,y must be positive to generate credits.

(3) Benzene credits calculated under paragraph (d)(1) of this section must be expressed to the nearest benzene gallon. Fractional values must be rounded in accordance with § 1090.50.

(e) Credit generation limitation. A gasoline manufacturer may only generate credits after they have finished producing or importing gasoline for the compliance period.

(f) Credit generation reporting. A gasoline manufacturer that generates credits under this section must submit reports to EPA that contain all information regarding credit generation as specified in § 1090.905 using forms and procedures specified by EPA.

[85 FR 78469, Dec. 4, 2020, as amended at 90 FR 4351, Jan. 15, 2025]