Regulation of Fuels and Fuel Additives:


Renewable Fuel Standard Program


Summary and Analysis of Comments


Chapter 7


Compliance Requirements


(Registration, Reporting, Recordkeeping)


Assessment and Standards Division 

Office of Transportation and Air Quality 

U.S. Environmental Protection Agency 

EPA420-R-07-006 

April 2007 
RFS Summary and Analysis of Comments 

7 COMPLIANCE (REGISTRATION, RECORDKEEPING, REPORTING) 

7.1 Workshops for Reporting Parties..................................................................... 7-1 

7.2 Registration...................................................................................................... 7-1 

7.2.1 Registering Parties ................................................................................... 7-1 

7.2.2 Registration Timing .................................................................................7-4 

7.3 RIN Tracking for Reporting Purposes............................................................. 7-6 

7.3.1 Renewable Fuels Tracking System.......................................................... 7-6 

7.3.2 RIN Tracking Mechanism........................................................................7-7 

7.4 Reporting and Attest Engagements.................................................................. 7-7 

7.4.1 Reporting Parties and Report Types ........................................................ 7-7 

7.4.2 Reporting on Facility or Corporate Level................................................ 7-9 

7.4.3 Quarterly Reporting vs. Annual Reporting..............................................7-9 

7.4.4 Reporting Deadlines............................................................................... 7-10 

7.4.5 Reporting Errors..................................................................................... 7-11 

7.4.6 Neat Motor Fuel and Reporting .............................................................7-12 

7.4.7 Attest Engagements ............................................................................... 7-12 

7.5 Product Transfer Documents (PTDs).............................................................7-13 

7.5.1 Invoices vs. Bills of Lading ................................................................... 7-13 

7.5.2 Reporting Location of Renewable Fuel ................................................. 7-14 

7.5.3 Reporting RIN Separation...................................................................... 7-14 

7.6 Recordkeeping ...............................................................................................7-15 

7.6.1 Obligations of Non-Owners................................................................... 7-15 

7.6.2 Fuel Used at Cellulosic Ethanol Plants..................................................7-15 

RFS Summary and Analysis of Comments 

7 COMPLIANCE (REGISTRATION, RECORDKEEPING, REPORTING) 

What We Proposed: 

The comments in this section correspond to Section IV of the preamble to the 

proposed rule and are targeted at the registration, recordkeeping, and reporting 

requirements of the rule. A summary of the comments received and our response to those 

comments are located below. 

7.1 Workshops for Reporting Parties 

What Commenters Said: 

EPA received a comment from the American Coalition for Ethanol (ACE) 

expressing interest in co-hosting, with EPA and other interested parties, workshops 

designed for ethanol producers and others to become familiar with the registration, 

recordkeeping, and reporting requirements of the RFS program. 

Letters:

American Coalition for Ethanol (ACE) OAR-2005-0161-0218 

Our Response: 

EPA welcomes the participation of all interested parties in workshops to assist in 

implementation of the RFS rule. We anticipate these workshops will take place shortly 

after issuance of the final rule. We will announce workshops on our web page and will 

notify groups like trade associations in order to get information out to interested parties. 

7.2 Registration 

7.2.1 Registering Parties 

7.2.1.1 Renewable Fuel Producers and Importers 

What Commenters Said: 

EPA received comments from ExxonMobil and the National Petrochemical and 

Refiners Association (NPRA) who believe that both renewable fuel producers and 

importers should be required to register with EPA. 

Letters: 

ExxonMobil OAR-2005-0161-0197 

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

7-1
Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

Our Response: 

EPA agrees that registration of renewable fuel producers and importers is 

essential to the creation of Renewable Identification Numbers (RINs) and that EPAassigned company and facility ID numbers are key components of the RIN. Many 

importers may already be registered under the reformulated gasoline (RFG) and antidumping program or the diesel sulfur program, and if so, they will not have to register 

again for the RFS program. 

7.2.1.2 Publication of Registration Numbers 

What Commenters Said: 

EPA received a comment from NPRA suggesting that EPA publish a list of 

renewable fuel producer and importer company and facility registration numbers prior to 

the effective date of the RFS program. The commenter noted that EPA had published a 

list of registration numbers prior to the June 2006 effective date for the highway diesel 

rule and that this action proved to be beneficial for implementation purposes. 

Letters:

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Our Response: 

We will post an initial list of producer and importer registration numbers on our 

website in early August 2007. On or about September 1, 2007, the start date of the 

program, we will post an updated list, and will continue to update it periodically. 

7.2.1.3 Requirements for Parties Other Than Renewable Fuel Producers and 

Obligated Parties 

What Commenters Said: 

EPA received a comment from CHS suggesting that if renewable fuel producers 

sell fuel directly to retail outlets, those outlets should be required to register, record 

product transfer documents (PTDs), and report to EPA as would an obligated party. The 

commenter agreed with EPA’s proposed provision that parties who intend to own RINs, 

and who are not obligated parties, exporters of renewable fuels, or renewable fuel 

producers or importers must also register before ownership of RINs, and that with 

registration must come reporting and recordkeeping requirements. 

Letters:

CHS Inc. OAR-2005-0161-0203 

7-2
RFS Summary and Analysis of Comments 

Our Response: 

A retail outlet must register with EPA before they may take ownership of any 

RINs, in the same way that any party involved in RIN transactions must register with 

EPA prior to any RIN transactions. In addition, all registered parties, including registered 

retail outlets, must engage in recordkeeping and reporting consistent with the role they 

perform (e.g., renewable fuel producer, refiner, broker, etc.) 

7.2.1.4 RFS Registration Numbers for Parties Already Registered with EPA 

What Commenters Said: 

EPA received a comment from Sutherland Asbill Brennan requesting clarification 

on which registration numbers a currently-registered party and/or facility would record 

and report under the RFS program, considering that some parties are subject to multiple 

EPA fuels programs and have more than one registration number. On the same subject, 

NPRA supported EPA’s proposal to utilize the same basic reporting forms for registration 

that were used for the RFG and anti-dumping programs and allowing currently registered 

refiners and importers to use their EPA-issued 4-digit company and 5-digit facility 

identification numbers. 

Letters: 

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Sutherland Asbill Brennan OAR-2005-0161-0210 

Our Response: 

A party who has registered under another program covered by 40 CFR Part 80, 

such as the RFG and anti-dumping programs or the diesel sulfur program, does not have 

to register for the RFS program and may use their existing company and facility ID 

numbers. However, if a party, such as a renewable fuels producer, is registered only 

under the fuel and fuel additive registration program (FFARS) of 40 CFR Part 79, then 

that party must register for the RFS program. 

A party is responsible for keeping its registration information current and changes 

may be submitted via the registration form. If a party is uncertain of its prior registration 

status, then that party should contact EPA’s reporting staff for assistance. 

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Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

7.2.1.5 Registration Requirements for Importers and Exporters of Renewable Fuels 

What Commenters Said: 

Archer Daniels Midland Company (ADM) submitted a comment to EPA asking 

for clarification on what registrations are needed for import and export of renewable 

fuels, and whether one registration would apply to both imports and exports. 

Letters:

Archer Daniels Midland Company (ADM) OAR-2005-0161-0227 

Our Response: 

If a single registrant fulfills multiple roles - e.g., if one registrant is both an 

importer and an exporter - then that party will use the same EPA-issued ID numbers for 

all of its reports. However, a party performing multiple roles must be sure to keep 

appropriate records and submit appropriate reports related to all the roles it engages in 

under the RFS program. 

7.2.2 Registration Timing 

7.2.2.1 Registration Deadline and Program Start Date 

What Commenters Said: 

EPA received several comments on our proposed start date of the RFS program 

and the registration deadline for renewable fuel producers and obligated parties. 

Shell/Motiva, ExxonMobil, the American Petroleum Institute (API), and NPRA 

commented that the implementation date for obligated parties and the registration date for 

renewable fuel producers should be aligned by eliminating the 30 day gap in the proposal 

between the proposed effective date of the rule and the date by which producers are 

required to register. BlueFire Ethanol commented that EPA should clarify the 

registration deadline for obligated parties in order to avoid alienating future obligated 

parties. 

Letters: 

American Petroleum Institute (API) OAR-2005-0161-0185 

BlueFire Ethanol OAR-2005-0161-0200, -0224 

ExxonMobil OAR-2005-0161-0197 

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Shell/Motiva OAR-2005-0161-0215 

7-4
RFS Summary and Analysis of Comments 

Our Response: 

We understand the commenters’ concerns about aligning the implementation date 

for obligated parties and the registration date for renewable fuel producers. In the final 

rule, the registration deadline for all parties, including renewable fuel producers and 

obligated parties, has been eliminated. However, the final rule states that no party can 

own RINs or engage in any RIN activities until they have registered and received EPA ID 

numbers. For example, if a renewable fuel producer is not registered by the program start 

date, the producer is prohibited from generating RINs until they complete the registration 

process. With the elimination of the registration deadline, the final rule ensures that 

future obligated parties will not be alienated from participating in the program. 

7.2.2.2 Registration Lead Time 

What Commenters Said: 

The Renewable Fuels Association (RFA) commented that in the credit program 

under Clean Air Act (CAA) Section 211(m) [sic], EPA provides new registrants three 

months to register “in advance of the first date that such person will produce or import 

reformulated gasoline or [reformulated blendstock for oxygenate blending] RBOB or 

conventional gasoline.” RFA suggested that a similar time frame could be provided for 

the RFS program. 

Letters:

Renewable Fuels Association (RFA) OAR-2005-0161-0192, -0228 (hearing) 

Our Response: 

It is true that EPA had a lengthier registration period under the RFG and antidumping program than under the RFS program. The RFG and anti-dumping program 

was the first program under 40 CFR Part 80 to utilize our current registration forms, and 

we needed extra time to develop the forms and to disseminate them to the regulated 

community. The RFG and anti-dumping program registration also began before Internet 

access was widespread and before we had a well-developed web page. 

In the case of the RFS program, the registration forms are simple and require only 

basic information like company name, address, contact person, etc. We estimate that 

many registrants will be able to fill the forms out and fax them to us in under an hour. In 

addition, many parties (particularly refiners and importers) are already registered with 

EPA under 40 CFR Part 80 programs and will not have to register again under RFS. We 

believe that new registrants will find the forms easy to fill out and submit, and we will 

have staff available to assist new registrants should they have any questions about their 

registration status or about the forms themselves. 

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Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

7.2.2.3 Early Registration 

What Commenters Said: 

EPA received comments from NPRA and CHS encouraging EPA to urge ethanol 

producers, importers, and RFS obligated parties to register for the program early. 

Letters: 

CHS Inc. OAR-2005-0161-0203 

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Our Response: 

EPA will accept registration forms as soon as the final rule is published in the 

Federal Register. We will post registration forms on the EPA website shortly before the 

final rule is published, and we will work with industry trade groups to help disseminate 

instructions on registering for the program. While there is no specified registration 

deadline, a party must be registered prior to owning RINs or engaging in RIN 

transactions, and we must have adequate time to process registration applications and 

assign company and facility ID numbers. 

7.3 RIN Tracking for Reporting Purposes 

7.3.1 Renewable Fuels Tracking System 

What Commenters Said: 

EPA received a comment from the American Farm Bureau Federation (AFBF), 

the National Corn Growers Association (NCGA), and the National Council of Farmer 

Cooperatives (NCFC) that the RFS program will require renewable fuel producers to 

create a costly tracking system which will require time to develop upon finalization of the 

rule. 

Letters: 

American Farm Bureau Federation (AFBF), National Corn Growers Association 

(NCGA), National Council of Farmer Cooperatives (NCFC) 

OAR-2005-0161-0188 

Our Response: 

We have made every attempt to keep the RFS program as simple and 

straightforward as possible while still ensuring the program accomplishes the 

requirements of the Energy Policy Act. The burdens associated with the RFS program 

are no greater for renewable fuels producers than they are for refiners and importers. The 

RFS regulations are designed to preserve flexibility for individual parties to determine 

7-6
RFS Summary and Analysis of Comments 

how to meet regulatory requirements. The program requires renewable fuel producers to 

keep records, to report on each batch of renewable fuel they produce, and to include RIN 

and transferee/transferor information on transaction documents. The system chosen to 

fulfill these requirements is up to each producer. 

7.3.2 RIN Tracking Mechanism 

What Commenters Said: 

EPA received a comment from Sutherland Asbill Brennan requesting guidance on 

the appropriate accounting mechanism (e.g., first-in-first-out) for tracking the 

accumulation, sale, purchase, or compliance use of RINs. 

Letters:

Sutherland Asbill Brennan OAR-2005-0161-0210 

Our Response: 

EPA will not require a specific accounting method for tracking RIN compliance. 

This approach will permit regulated parties maximum flexibility in meeting regulatory 

requirements. As the comment points out, a common accounting method is first-in/firstout (FIFO), and this method may be used by some companies. We do not believe it is 

necessary for us to establish a preferred accounting method and will leave it to individual 

parties to take into account their specific needs and the needs of their trading partners. 

7.4 Reporting and Attest Engagements 

7.4.1 Reporting Parties and Report Types 

7.4.1.1 Requirements for Parties Holding RINs 

What Commenters Said: 

EPA received comments from ExxonMobil and API supporting the proposed 

requirement that any party holding RINs be subject to the reporting and recordkeeping 

requirements of the program. 

Letters: 

American Petroleum Institute (API) OAR-2005-0161-0185 

ExxonMobil OAR-2005-0161-0197 

7-7
Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

Our Response: 

We have tied registration, recordkeeping, and reporting requirements to the 

ownership of RINs. Any party that wishes to own RINs or engage in any transaction 

involving RINs must register prior to engaging in such activities. 

7.4.1.2 Reporting Frequency 

What Commenters Said: 

EPA received comments from Baker Commodities and Griffin Industries 

claiming that the recordkeeping requirements of the RFS proposal for renewable fuel 

producers would make it very difficult for small biodiesel producers to be in compliance, 

and the commenters requested that EPA consider lessening the frequency of and the 

number of different reports required under the regulation. 

Letters: 

Baker Commodities OAR-2005-0161-0003 through -0006, -0173 

Griffin Industries OAR-2005-0161-0189 

Our Response: 

The number of reports submitted is proportional to the number of activities and 

transactions in which a party is engaged. Frequent production of small batches or active 

RIN trading may result in a larger number of reports for EPA. We have adopted 

quarterly reporting because it is necessary to ensure the validity of RINs and to 

demonstrate compliance with RIN/volume inventory requirements. Reports were 

designed to provide EPA with the minimum information necessary to administer this 

program. Small producers and importers (those who produce or import < 10,000 gallons 

per year or renewable fuels) are exempt from these requirements. 

7.4.1.3 Combining Reports 

What Commenters Said: 

EPA received a comment from FutureFuel urging that the detailed RIN activity 

report and the summary RIN activity report should be combined into one report. 

Letters:

FutureFuel OAR-2005-0161-0198 

7-8
RFS Summary and Analysis of Comments 

Our Response: 

The activity and summary reports are designed for different purposes and 

complement each other. The detailed activity report (RIN transaction report) provides 

detailed transactional information. A separate RIN transaction report is required for each 

RIN purchase and sale, and for each retired or expired RIN. The summary RIN activity 

report focuses on the total number of RINs owned at the start and end of the quarter, and 

the total number of RINs purchased, sold, retired, and expired during the quarter. We 

will endeavor to design the reporting formats to be as easy to use and to create as little 

additional burden as possible. For practical purposes, we intend to permit parties to use a 

highly simplified method of electronic reporting via the EPA Central Data Exchange 

(CDX). This method will be simpler than using paper reports, will permit data to be 

submitted in a variety of common formats, and will provide enhanced security. 

7.4.2 Reporting on Facility or Corporate Level 

What Commenters Said: 

EPA received a comment from API noting that for obligated parties who report 

obligations and submit compliance reports under aggregated approaches, a corporation 

will need to be recognized as a "facility" to facilitate trades between obligated entities. 

The commenter believed that EPA’s regulation should clarify this approach. 

Letters:

American Petroleum Institute (API) OAR-2005-0161-0185 

Our Response: 

Facility IDs are required from renewable producers when reporting renewable 

batch information. Facility IDs are also required from obligated parties demonstrating 

annual compliance on a facility-by-facility basis. However, facility IDs are not required 

from obligated parties who demonstrate compliance on an aggregated basis. No party is 

required to use facility IDs when reporting RIN transactions (purchase, sale, retirement, 

or expiration), as they will be done at the corporate level. 

7.4.3 Quarterly Reporting vs. Annual Reporting 

What Commenters Said: 

We received comments on our proposal to require all RFS reports on an annual 

basis. The Independent Fuel Terminal Operators Association (IFTOA), FutureFuel, Flint 

Hills Resources (FHR), ExxonMobil, API, and NPRA supported annual reporting. 

However, RFA believed that quarterly reporting would not add a significant burden and 

would provide EPA with more accurate information. Lyondell went a step further and 

7-9
Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

commented that EPA should collect and issue quarterly summaries of changing RIN 

credit supplies for use by the credit trading market, to prevent unnecessary supply 

shortfalls and maintain an efficient use of resources and invested capital for these 

commodities. 

Letters: 

American Petroleum Institute (API) OAR-2005-0161-0185 

ExxonMobil OAR-2005-0161-0197 

Flint Hills Resources (FHR) OAR-2005-0161-0222 

FutureFuel OAR-2005-0161-0198 

Independent Fuel Terminal Operators Association (IFTOA) OAR-2005-0161-0213 

Lyondell OAR-2005-0161-0165 

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Renewable Fuels Association (RFA) OAR-2005-0161-0192, -0228 (hearing) 

Our Response: 

EPA believes that quarterly reporting is necessary to demonstrate compliance 

with quarterly RIN/volume inventory requirements. An added benefit of quarterly 

reporting is that it will allow us to verify that RINs circulating in the market are valid and 

that RIN transactions are being reported properly. Therefore, all parties involved in the 

generation of RINs or who participate in RIN transactions will have quarterly reporting 

requirements. In addition, obligated parties will continue to have an annual requirement 

to demonstrate compliance with the renewable volume obligation. 

7.4.4 Reporting Deadlines 

What Commenters Said: 

EPA received a comment from NPRA related to the proposed deadline for annual 

compliance reports. NPRA commented that in order to permit RIN trading in January 

and February for compliance in the previous year, annual reports submitted by obligated 

parties should be due by April 30 rather than the proposed due date of February 28. 

Furthermore, if EPA decides to promulgate April 30 as the due date for annual reports 

submitted by obligated parties, the commenter suggested that the proposed due date of 

May 31 for attest engagements (§80.1164(c)) be changed to June 30. 

Letters:

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Our Response: 

EPA evaluated several options with regards to an annual reporting deadline. We 

shared these options with NPRA, API, and other stakeholders. In the end, we decided to 

retain the February 28 due date, the due date for all other fuels reporting programs, which 

7-10
RFS Summary and Analysis of Comments 

will allow refiners to submit all annual fuels reports for 40 CFR Part 80 programs at the 

same time via one Central Data Exchange (CDX) submission. However, in the first year 

of the RFS program only, obligated parties and exporters will be given an extra quarter to 

submit their list of RINs used to demonstrate compliance. This information must be 

reported by May 31, 2008, for the 2007 compliance period. 

7.4.5 Reporting Errors 

What Commenters Said: 

EPA received a few comments on reporting errors and how the RFS program 

should handle them. API commented that obligated parties using RINs that are later 

found to be invalid should be given the opportunity to “cure” a shortfall caused by 

“invalid” RINs without penalty. FHR suggested that EPA outline a program whereby 

discrepancies are communicated back to reporting parties, giving each party a reasonable 

period of time to research and correct their reporting. According to the commenter, given 

the length of the RIN and the tedious process required to capture the number sequence 

correctly, especially if manual input is involved, EPA should provide reporting parties 

some mechanism for identifying errors and making corrections when a party in good faith 

reports RINs they believe to be valid. FHR also commented that rather than each party 

being responsible for contacting all its counter parties to validate transactions prior to 

reporting to EPA, EPA could perform and communicate such reconciliation easily. 

Letters: 

American Petroleum Institute (API) OAR-2005-0161-0185 

Flint Hills Resources (FHR) OAR-2005-0161-0222 

Our Response: 

With regard to the comment that an obligated party that uses RINs should be 

given an opportunity to “cure” the shortfall caused by the invalid RINs without penalty, 

the application of a penalty to a good faith purchaser under the RFS program would not 

be automatic. Enforcement personnel take into account the circumstances surrounding a 

violation when determining who is liable and what penalty to seek. Permitting a party 

who has acted in good faith to apply RINs to make up for a shortfall is one possible 

outcome to an enforcement situation. (For more discussion on this topic, see Section 

11.5.1 -- Enforcement and Attestation/Audit Provisions -- of this document.) 

While EPA will make every effort to notify reporting parties of apparent 

discrepancies, the burden of accurately maintaining and reporting valid RINs falls on the 

RIN producer, owner(s), and obligated party. Accurate and valid transactional 

information is necessary to comply with RFS recordkeeping and PTD requirements. 

Reported information is expected to accurately reflect actual transactions or summaries of 

quarterly activity. One check we have implemented is the attest engagement 

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Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

requirement. Our reporting staff routinely checks reports for possible errors or reported 

violations and will contact a party if a report appears to contain erroneous information. 

7.4.6 Neat Motor Fuel and Reporting 

What Commenters Said: 

EPA received a comment from West Park Associates suggesting that in the 

proposed annual transactional report, the renewable fuel producer would identify the 

parties to whom the renewable fuel had been sold for use as a neat motor fuel, in order to 

confirm the right of the producer to separate RINs from the batches of renewable fuel 

used in neat form. 

Letters:

West Park Associates OAR-2005-0161-0202 

Our Response: 

A renewable fuel producer or importer that produces or imports a volume of 

renewable fuel shall have the right to separate any RINs that have been assigned to that 

volume if the renewable fuel is designated as motor vehicle fuel (i.e., as a neat motor fuel 

that is not, for example, blended with gasoline, gasoline blendstocks, diesel fuel or diesel 

fuel blendstocks) and is used as motor vehicle fuel. The commenter’s suggested 

approach would involve tracking volumes of renewable fuel sold as neat motor fuel and 

not RINs. However, the reporting and compliance mechanism for RFS is based on RIN 

ownership transactions and not on renewable volume transactions. EPA will rely on 

producer batch reporting and recordkeeping requirements to ensure proper transfer and 

use of renewable fuel used in its neat form. A renewable fuel producer who separates 

RINs from a volume of renewable fuel must designate this volume as motor vehicle fuel 

on the production batch report. The renewable fuel producer must also keep records to 

demonstrate that the renewable fuel was in fact used as neat motor vehicle fuel. 

7.4.7 Attest Engagements 

What Commenters Said: 

We received a comment from NPRA on our proposed attest engagement 

requirements for obligated parties. The commenter expressed concern that the 

requirements were overly burdensome, emphasizing that the purpose of an attest 

engagement is a spot check of a subset of records, not a comprehensive review of every 

record. 

Letters:

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

7-12
RFS Summary and Analysis of Comments 

Our Response: 

We agree that examination of representative samples of RIN transaction 

documents would provide sufficient oversight and that the requirement included in the 

proposed regulations may be unnecessarily burdensome. As a result, the attest 

engagement provisions have been modified to require the auditor to examine only 

representative samples of RIN transaction documents. 

7.5 Product Transfer Documents (PTDs) 

7.5.1 Invoices vs. Bills of Lading 

What Commenters Said: 

EPA received many comments on the use of PTDs for conveying RIN 

information. Some comments related to the types of documents that should be viewed as 

PTDs. Marathon Petroleum Company (MPC), Magellan, and API commented that RIN 

PTD requirements should apply to invoices (ownership documents) and not bills of 

lading (custody documents). Shell/Motiva agreed with EPA’s proposal to require that 

any documentation used to transfer custody of or title to a batch from one party to another 

identify the RINs assigned to that batch. Ethanol Products, on the other hand, supported 

the allowance of a parallel reporting document that would essentially separate RINs from 

their respective physical gallons, thereby enabling sellers to transfer RINs in an electronic 

format to their larger customers. 

Letters: 

American Petroleum Institute (API) OAR-2005-0161-0185 

Ethanol Products OAR-2005-0161 

Magellan OAR-2005-0161-0208 

Marathon Petroleum Company (MPC) OAR-2005-0161-0175 

Shell/Motiva OAR-2005-0161-0215 

Our Response: 

EPA agrees that RIN PTD requirements apply to ownership documents, not 

custody documents. We intended the term PTD to apply broadly to a variety of RIN 

ownership documents, including those referred to as invoices or by other names. After 

lengthy discussions with stakeholders, including Ethanol Products, we determined that a 

fungible system for both renewable fuel and RINs is of paramount importance for the 

RFS program to succeed. This system is described in the preamble to the final rule. The 

final rule requires that assigned RINs be transferred simultaneously with ownership of 

renewable volume. This may be achieved by directly listing assigned RINs on a PTD or 

by referencing in the PTD a parallel document (electronic or paper) listing assigned RINs 

included in the transaction. 

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Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

7.5.2 Reporting Location of Renewable Fuel 

What Commenters Said: 

FHR requested that EPA eliminate the requirement that the location of the 

renewable fuel at the time of transfer be identified, claiming that RIN information will 

likely be communicated on invoice PTDs and that often title changes during transit and 

therefore the location at the time of transfer is difficult or impossible to identify. 

Letters:

Flint Hills Resources (FHR) OAR-2005-0161-0222 

Our Response: 

EPA agrees that RINs will likely be a part of invoices or other ownership 

documents when transferring title of renewable fuels. Since EPA does not intend to track 

changes in custody of renewable fuel during transit, we have removed location of the 

renewable fuel at the time of transfer from the recordkeeping and PTD requirements in 

the final rule. 

7.5.3 Reporting RIN Separation 

What Commenters Said: 

We received a few comments on our proposal regarding PTDs for renewable fuel 

from which RINs have been separated. We proposed requiring sellers of renewable fuel 

from which RINs were separated to affirmatively state this fact on PTDs. FHR and 

Magellan did not support this requirement, but the Society of Independent Gasoline 

Marketers of America and the National Association of Convenience Stores 

(SIGMA/NACS) did. Magellan suggested that, if EPA determines that such notification 

is necessary, the best solution would be to note the separation or removal of the RIN on 

the invoice that accompanies the fuel. 

Letters: 

Flint Hills Resources (FHR) OAR-2005-0161-0222 

Magellan OAR-2005-0161-0208 

Society of Independent Gasoline Marketers of America, National Association of 

Convenience Stores (SIGMA/NACS) OAR-2005-0161-0234 

Our Response: 

The final rule requires that the PTD used to transfer ownership of renewable fuel 

from which RINs have been separated, or for renewable fuel that has no RINs, include 

7-14
RFS Summary and Analysis of Comments 

the statement “No RINs transferred.” Since a renewable volume may only exist as either 

a volume with RINs or a volume without RINs, EPA felt that it was reasonable to require 

specific language for each case. This requirement also eliminates any possibility for 

confusion during renewable ownership transactions, given that PTDs for volumes with 

RINs attached are permitted to report actual RINs separately, but in parallel, with the 

main PTD document (e.g. an invoice). 

7.6 Recordkeeping 

7.6.1 Obligations of Non-Owners 

What Commenters Said: 

We received two comments related to the reporting and recordkeeping obligations 

of parties who gain custody of renewable fuel for the purpose of blending or transferring 

the fuel but do not gain ownership. FutureFuel commented that the final RFS rule should 

clarify that a terminal operator who does not own renewable fuel, but merely stores or 

transfers it, should have no obligation to provide information about any RINs associated 

with the fuel. In the same vein, KinderMorgan referenced terminals “for hire” and 

suggested that EPA clarify that recordkeeping, reporting and PTD requirements remain 

with the title owner of the fuel and not with the third party terminal that only has custody 

of the fuel. 

Letters: 

FutureFuel OAR-2005-0161-0198 

KinderMorgan OAR-2005-0161-0231 

Our Response: 

The RFS program does not include a designate and track accounting requirement 

like the one that exists for the diesel sulfur program at 40 CFR Part 80, subpart I. For the 

RFS program, RIN transactions are based solely on the transfer of RIN ownership. 

Therefore, in the case of the terminal operator who does not take ownership of the 

renewable fuel, but only possession of it, they would not be responsible for reporting the 

RINs associated with it. However, a terminal that takes ownership of renewable fuel with 

RINs attached has all of the recordkeeping and reporting responsibilities of a RIN owner. 

7.6.2 Fuel Used at Cellulosic Ethanol Plants 

What Commenters Said: 

EPA received a comment from NPRA that renewable fuel producers, not 

obligated parties and exporters, should be required to maintain records on the amount and 

type of fossil fuel used at plants producing cellulosic ethanol. 

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Chapter 7: Compliance (Registration, Recordkeeping, Reporting) 

Letters:

National Petrochemical and Refiners Association (NPRA) OAR-2005-0161-0170, -0232 

Our Response: 

EPA agrees that only producers of cellulosic ethanol or waste-derived ethanol are 

required to keep records of fuel feedstock. 

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