40 CFR § 1090.720 - Credit use.

---
identifier: "/us/cfr/t40/s1090.720"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "40 CFR § 1090.720 - Credit use."
title_number: 40
title_name: "Protection of Environment"
section_number: "1090.720"
section_name: "Credit use."
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "U"
subchapter_name: "AIR POLLUTION CONTROLS"
part_number: "1090"
part_name: "REGULATION OF FUELS, FUEL ADDITIVES, AND REGULATED BLENDSTOCKS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7414, 7521, 7522-7525, 7541, 7542, 7543, 7545, 7547, 7550, and 7601."
regulatory_source: "85 FR 78469, Dec. 4, 2020, unless otherwise noted."
cfr_part: "1090"
---


# 1090.720 Credit use.

(a) *General credit use provisions.* Only a gasoline manufacturer may generate, use, transfer, or own credits generated under this subpart, as specified in § 1090.725(a)(1). Credits may be used by a gasoline manufacturer to comply with the average standards specified in subpart C of this part. A gasoline manufacturer may also bank credits for future use, transfer credits to another facility within the company (*i.e.,* intracompany trading), or transfer credits to another gasoline manufacturer, if all applicable requirements of this subpart are met.

(b) *Credit life.* Credits are valid for use for 5 years after the compliance period for which they are generated.

(c) *Limitations on credit use.* (1) Credits that have expired must not be used for demonstrating compliance with the average standards specified in subpart C of this part or be used to replace invalid credits under § 1090.735.

(2) A gasoline manufacturer possessing credits must use all credits prior to incurring a compliance deficit under § 1090.715.

(3) Credits must not be used to meet per-gallon standards.

(4) Credits must not be used to meet the maximum benzene average standard in § 1090.210(b).

(5) A gasoline manufacturer must only use credits that they own at the time of use.

(d) *Credit reporting.* A gasoline manufacturer that generates, transacts, or uses credits under this subpart must submit reports to EPA that include all information regarding credits as specified in § 1090.905 using forms and procedures specified by EPA.

(e) *Part 80 credit use.* Valid credits generated under 40 CFR 80.1615 and 80.1290 may be used by a gasoline manufacturer to comply with the average standards in subpart C of this part, subject to the provisions of this subpart.

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