DoD Arms Sales, EPA Fuel Exemptions, and Two Regulatory Updates: Sept. 2 Federal Register

DoD Arms Sales: Canada MQ-9B Upgrade and Kuwait C-17 Sustainment

The Department of Defense published two arms-sale notifications under section 36(b) of the Arms Export Control Act (AECA), each involving Air Force–implementing cases.

The Canada notification, filed under Transmittal No. 0D-26, reports the addition of forty (40) Embedded Global Positioning System/Inertial Navigation Systems (EGI) — 33 installed and 7 spares — to an existing case originally notified to Congress on September 15, 2023, under transmittal number 23-72. That original notification, valued at an estimated $313.4 million total (with $75.2 million in major defense equipment, or MDE), covered munitions and systems to be integrated into MQ-9Bs purchased through Direct Commercial Sales, including twelve (12) AN/APY-8 Lynx Synthetic Aperture Radars, two hundred nineteen (219) AGM-114R2 Hellfire II missiles, and a range of electronic surveillance, communications, and cryptographic equipment. A subsequent notification on June 10, 2025, under transmittal number 25-0P, added further MDE items and raised the estimated total case value to a revised $462.4 million. The current transmittal adds the EGI units, valued at an estimated $12 million, bringing the revised MDE value to $114.2 million, the non-MDE value unchanged at $359.2 million, and the revised total case value to $474.4 million. The notification states that the inclusion of this MDE represents an increase in capability over what was previously notified, and that the proposed articles and services will improve Canada's capability to conduct unmanned surveillance and reconnaissance patrols of its northern arctic territories and support its North American Aerospace Defense and NATO missions while increasing interoperability with U.S. and NATO forces.

The Kuwait notification, published as a correction to an August 28, 2026 Federal Register entry (91 FR 55555–55558) under Transmittal No. 26-61, was republished in its entirety after the original accidentally included two scanned letters to the Speaker of the House of Representatives that were not part of the notice. The sale covers C-17 sustainment support — entirely non-MDE — including major and minor modification equipment, aircraft components, spare and repair parts, ground handling equipment, jet fuel, communications equipment, and U.S. Government and contractor engineering, technical, and logistics support services. The estimated total cost is $484 million, with no major defense equipment included. The report was delivered to Congress on July 15, 2026. The principal contractor is The Boeing Company, located in Arlington, VA. The notification states the proposed sale will improve Kuwait's capability to ensure the operational readiness of its C-17 fleet, which, according to the notice, provides strategic airlift capabilities that directly support U.S. and coalition operations around the world.

EPA Acts on 34 Small-Refinery Exemption Petitions for 2025

The Environmental Protection Agency announced its final action on 34 small refinery exemption (SRE) petitions under the Renewable Fuel Standard (RFS) program for the 2025 compliance year, as well as the reissuance of a decision on 1 petition for the 2024 compliance year originally issued in the August 3, 2026 SRE Decisions Action. Under the Clean Air Act, a small refinery — defined as one whose average aggregate daily crude oil throughput does not exceed 75,000 barrels — may petition EPA for an exemption from RFS obligations on grounds of disproportionate economic hardship. In evaluating such petitions, the EPA Administrator, in consultation with the Secretary of Energy, considers the findings of a Department of Energy study and other economic factors. Of the 34 petitions acted upon for the 2025 compliance year, EPA granted full (100 percent) exemptions to 18 petitions, granted partial (50 percent) exemptions to 11 petitions, denied 3 petitions, and determined 2 petitions to be ineligible. EPA is also reissuing a partial exemption for 1 petition for the 2024 compliance year. The August 31, 2026 SRE Decisions Action also explains how EPA will implement SRE decisions when an exemption is granted.

Commerce Corrects Antidumping Margin for Omani PET Resin Producer

The Department of Commerce's International Trade Administration is amending the final results of its administrative review of the antidumping duty order on polyethylene terephthalate (PET) resin from the Sultanate of Oman, covering the period May 1, 2023, through April 30, 2024. The review covers one producer and exporter, OCTAL SAOC FZC. Commerce published the original Final Results on May 18, 2026. On May 26, 2026, petitioners APG Polytech LLC, Indorama Ventures USA, Inc., and Nan Ya Plastics Corporation, America filed a timely ministerial error allegation, which no parties rebutted. The petitioners alleged that Commerce, rather than recalculating U.S. inventory carrying costs using costs from OCTAL's most recent cost database as intended, inadvertently set those costs equal to an incorrect value. Commerce agreed, characterizing the error as an unintentional clerical oversight and therefore ministerial under section 751(h) of the Tariff Act of 1930 and 19 CFR 351.224(f). Consistent with 19 CFR 351.224(e), Commerce is correcting the error by recalculating inventory carrying costs using OCTAL's most recent cost database and amending the Final Results accordingly. The amended results are applicable September 2, 2026.

HHS Proposes Standardized TANF Contingency Fund Application

The Office of Family Assistance, Administration for Children and Families (ACF) within the Department of Health and Human Services is proposing to standardize the mechanism through which states request provisional monthly payments from the TANF Contingency Fund. Authority to distribute provisional payments is contained in section 403 of the Social Security Act (42 U.S.C. 603(b)(3)), as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The proposed TANF Contingency Fund Application is an optional form that would require states to demonstrate eligibility, describe how they will fulfill award requirements, and provide certification by the Governor or official designee. States must submit a new application in the month prior to the month for which they request funds. ACF states the form consolidates guidance and existing resources to reduce response time and minimize burden hours. Respondents are the 50 states and the District of Columbia, though ACF estimates an average of 15 states will respond in any given month. The agency estimates an annual burden of 3 hours per response, with an estimate of 7 responses per respondent per year, for a total estimated annual burden of 315 hours.

What to Watch

• October 2, 2026: Deadline for public comments on ACF's proposed TANF Contingency Fund Application information collection.
• The Commerce amended antidumping results for OCTAL SAOC FZC (PET resin, Oman, POR May 1, 2023–April 30, 2024) are applicable as of September 2, 2026.

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