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### VIA ELECTRONIC MAIL December 14 , 2010

Paul Machiel e U

. S

. Environmental Protection Agency National Vehicle and Fuel Emissions Laboratory/OAR 2565 Plymouth Road Ann Arbor, MI 48105 M achiele. paul@epamail.epa.gov

Erv Pickell U.S. Environmental Protection Agency Region 8 1595 Wynkoop Street Mail Code: 8MSU Denver, C O 80202

- 1129 pickell.erv@epa.gov

Re: RFS2

- Date of RIN Transfer

Dear Mr. Machiele and Mr. Pickell:

On behalf of the Renewable Fuels Association (RFA), Growth Energy (GE), the American Petroleum Institute (API), and the National Petrochemical and Refiners Associa tion (NPRA), we are writing in reference to the currently outstanding industry issue of EMTS RIN transaction reporting for RFS2 compliance. This letter is a follow

- up to the RFA, GE, and API letter of July 30, 2010 to Mr. Pickell and others at EPA, and a subseque nt teleconference discussion between EPA, RFA, GE, API, and NPRA on August 6, 2010. We appreciate the time EPA has taken thus far in working on this issue with our associations.

To resolve this outstanding issue, we request with this letter that EPA afford industry the flexibility to use existing accounting systems by allowing the use of either the title transfer date or the invoice date (plus a designated number of days depending on the mode of transportation) for purposes of EMTS RIN transaction reporting and RFS2 compliance. As highlighted in the July 30 letter and further discussed during the August 6 teleconference, such flexibility is needed to allow efficient operation of all industry accounting systems, the majority of which currently follow the RFS1 compliance pr ocess and use of the invoice date.

Attached please find a draft technical amendment for your review and consideration. We plan to arrange a teleconference with you and others at EPA shortly to discuss this proposal and define the path forward.

Thank yo u very much for your consideration.

Sincerely,

Geoff Cooper Renewable Fuels Association

Greg Krissek Growth Energy2 of 4 

### Patrick Kelly American Petroleum Institute

Tim Hogan National Petrochemical and Refiners Association

cc: John Weihrauch, wei hrauch.john@epa.gov Tony Miller, miller.anthony@epa.gov David Korotney, korotney.david@epa.gov Karl Simon, simon.karl@epa.gov Paul Argyropoulos, argyropoulos.paul@epam ail.epa.gov Chet France, france.chet@epamail.epa.gov3 of 4 APPENDIX DRAFT PROPOSED TECHNICAL AMENDEMENT FOR CONSIDERATION

(note: modifications are shown as highlighted sections; additions are underlined and deletions are shown as stricken)

Subpart M

— Renewabl e Fuel Standard

§ 80.1401 Definitions.

Cropland is land used for production of crops for harvest and includes cultivated cropland, such as for row crops or close

grown crops, and non

- cultivated cropland, such as for horticultural or aquatic crops.

Date o f the transfer or transaction date is, for the purpose of assigned RINs, either:

(a) the title transfer date for the associated volume of renewable fuel, or

(b)

(i) the invoice date for the associated volume of renewable fuel in the case of truck transfe rs or in

- tank transfers,

(ii) the invoice date plus ten (10) days for the associated volume of renewable fuel in the case of rail car transfers,

(iii) ) the invoice date plus fourteen (14) days for the associated volume of renewable fuel in the case of bar ge transfers.

Diesel, for the purposes of this subpart, refers to any and all of the products specified at §80.1407(e).

§ 80.1428 General requirements for RIN distribution.

(a) RINs assigned to volumes of renewable fuel.

(1) Assigned RIN, for the purpo ses of this subpart, means a RIN assigned to a volume of renewable fuel pursuant to §80.1426(e) with a K code of 1.

(2) Except as provided in §80.1429, no person can separate a RIN that has been assigned to a batch pursuant to §80.1426(e).

(3) An assigned RIN cannot be transferred to another person without also simultaneously transferring a volume of renewable fuel to that same person.

(4) No more than 2.5 assigned gallon

- RINs with a K code of 1 can be transferred to another person with every gallon of

rene wable fuel transferred to that same person.

(5)(i) On each of the dates listed in paragraph (a)(5)(ii) of this section in any calendar year, the following equation must be satisfied for assigned RINs and volumes of renewable fuel owned by a person:

Σ( RIN ) D ≤ Σ( V si * 2.5) D

Where :

D = Applicable date.

Σ(RIN) D = Sum of all assigned gallon

- RINs with a K code of 1 that are owned on date D.

(V si ) D = Volume i of renewable fuel owned on date D, standardized to 60 °F, in gallons.

(ii) The applicable dates are March 31, June 30, September 30, and December 31.

(6) Any transfer of ownership of assigned RINs must be documented on product transfer documents generated pursuant to §80.1453.

(i) The RIN must be recorded on the product transfer document used to transfer ownership of the volume of renewable fuel to another person; or

(ii) The RIN must be recorded on a separate product transfer document transferred to the same person on the same day as the product transfer document used to transfer ownership of the volume of renewab le fuel.4 of 4

§ 80.1460 What acts are prohibited under the RFS program?

(a) Renewable fuels producer or importer violation. Except as provided in §80.1455, no person shall produce or import a renewable fuel without complying with the requirements of §80.1426 regarding the generation and assignment of RINs.

(b) RIN generation and transfer violations. No person shall do any of the following:

(1) Generate a RIN for a fuel that is not a renewable fuel, or for which the applicable renewable fuel volume was not prod uced.

(2) Create or transfer to any person a RIN that is invalid under §80.1431.

(3) Transfer to any person a RIN that is not properly identified as required under §80.1425.

(4) Transfer to any person a RIN with a K code of 1 without transferring an approp riate volume of renewable fuel to the same
person as required under §80.1428(a) on the same day

. (5) Introduce into commerce any renewable fuel produced from a feedstock or through a process that is not described in the person's registration information.

(c ) RIN use violations. No person shall do any of the following:

(1) Fail to acquire sufficient RINs, or use invalid RINs, to meet the person's RVOs under §80.1427.

(2) Use a validly generated RIN to meet the person's RVOs under §80.1427, or separate and tra nsfer a validly generated RIN, where the person using the RIN ultimately uses the renewable fuel volume associated with the RIN in an application other than for use as transportation fuel, jet fuel, or heating oil (as defined in §80.1401).

(3) Use a validl y generated RIN to meet the person's RVOs under §80.1427, or separate and transfer a validly generated RIN, where the person ultimately uses the renewable fuel volume associated with the RIN in an application other than for use as transportation fuel, jet fuel, or heating oil (as defined in §80.1401).

(d) RIN retention violation. No person shall retain RINs in violation of the requirements in §80.1428(a)(5).

(e) Causing a violation. No person shall cause another person to commit an act in violation o f any prohibited act under this section.

(f) Failure to meet a requirement. No person shall fail to meet any requirement that applies to that person under this subpart.