---
kind: "section"
citation: "40 C.F.R. § 1090.720"
title: "40"
number: "1090.720"
heading: "Credit use."
url: "https://uscodex.org/cfr/40/1090.720"
---

# §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)](/cfr/40/1090.725.md?p=a-1). Credits may be used by a gasoline manufacturer to comply with the average standards specified in [subpart C](/cfr/40/subpartC.md) 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](/cfr/40/subpartC.md) of this part or be used to replace invalid credits under [§ 1090.735](/cfr/40/1090.735.md).
  - (2) A gasoline manufacturer possessing credits must use all credits prior to incurring a compliance deficit under [§ 1090.715](/cfr/40/1090.715.md).
  - (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)](/cfr/40/1090.210.md?p=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](/cfr/40/1090.905.md) using forms and procedures specified by EPA.
- (e) **Part 80 credit use.** Valid credits generated under 40 CFR [80.1615](/cfr/40/80.1615.md) and [80.1290](/cfr/40/80.1290.md) may be used by a gasoline manufacturer to comply with the average standards in [subpart C](/cfr/40/subpartC.md) of this part, subject to the provisions of this subpart.

## Notes

### Amendments

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

### Authority

Authority: 42 U.S.C. 7414, 7521, 7522-7525, 7541, 7542, 7543, 7545, 7547, 7550, and 7601.

### Source

Source: 85 FR 78469, Dec. 4, 2020, unless otherwise noted.

### Amendments

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