§ 1090.730 - Credit transfers.

§ 1090.730 Credit transfers.

A gasoline manufacturer may only transfer or obtain credits from another gasoline manufacturer to meet an average standard specified in subpart C of this part if all applicable requirements of this section are met.

(a) The credits are generated as specified in § 1090.725 and reported as specified in § 1090.905.

(b) The credits are used for compliance in accordance with the limitations on credit use specified in § 1090.720(c).

(c) Any credit transfer must take place no later than the deadline specified in § 1090.900(c) following the compliance period in which the credits are obtained.

(d) The credit has not been transferred between EPA registered companies more than twice. The first transfer by the gasoline manufacturer that generated the credit (“transferor”) must only be made to a gasoline manufacturer that intends to use the credit (“transferee”). If the transferee is unable to use the credit, it may make the second, and final, transfer only to a gasoline manufacturer that intends to use the credit. Intracompany credit transfers are unlimited.

(e) The transferor must apply any credits necessary to meet the transferor's applicable average standard before transferring credits to any other gasoline manufacturer.

(f) No person may transfer credits if the transfer would cause them to incur a deficit.

(g) Unless the transferor and transferee are the same party (i.e., intracompany transfers), the transferor must supply to the transferee records as specified in § 1090.1210(g) indicating the year(s) the credits were generated, the identity of the gasoline manufacturer that generated the credits, and the identity of the transferring party.

(h) The transferor and the transferee must report to EPA all information regarding the transaction as specified in § 1090.905 using forms and procedures specified by EPA.