Regulatory Announcement

EPA Issues Final Rule to Establish a 

Voluntary Quality Assurance Program 

for Verifying the Validity of Renewable 

Identification Numbers Under the 

RFS Program 

I

n today’s action we are finalizing a voluntary quality assurance 

program for verifying the validity of Renewable Identification 

Numbers (RINs) under the Renewable Fuel Standard (RFS) program. 

For RINs that have been verified according to an approved quality 

assurance plan (QAP), the program will provide an affirmative 

defense against liability for civil violations under certain conditions 

for the transfer or use of invalidly generated RINs, and specifies both 

the conditions under which invalid RINs must be replaced with valid 

RINs, and by whom. The program includes elements to allow verification of RINs beginning January 1, 2013. 

We are also finalizing modifications to the exporter provisions of the RFS program to 

ensure that an appropriate number and type of RINs are retired whenever renewable 

fuel is exported. Finally, we are finalizing a number of changes to other RFS regulations governing the transfer and use of RINs that become invalid downstream of the 

producer. 

Background 

The RFS program, which was established under Energy Policy Act of 2005 (EPAct) 

and subsequently modified through the Energy Independence and Security Act of 

2007 (EISA), requires that specified volumes of renewable fuel be used as transportation fuel, home heating oil, and/or jet fuel each year. To accomplish this, EPA publishes applicable percentage standards annually (for advanced biofuel, biomass-based 

Office of Transportation and Air Quality 

EPA-420-F-14-042 

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Regulatory Announcement

 

 

 

 

 

 

 

 

 

diesel, cellulosic biofuel, and total renewable fuel) that apply based on the sum of all gasoline 

and diesel produced or imported. RINs are generated by renewable fuel producers and importers 

and represent volumes that meet the requirements for renewable fuel under the RFS program. 

Once RINs have been generated, they can be transfered between parties and used by petroleum 

refiners and importers (“obligated parties”) to show compliance with their volume obligations. 

Cases of fraudulently generated RINs, however, led to a reduction in the overall liquidity in the 

RIN market and in smaller renewable fuel producers having difficulty selling their RINs. 

Summary of Major Provisions 

Today’s action finalizes a voluntary third-party quality assurance program option for RINs that 

regulated parties may exercise as a supplement to the “buyer beware” liability as prescribed under 

existing regulations. The program provides a means for ensuring that RINs are properly generated through audits of renewable fuel production conducted by independent third-parties using 

quality assurance plans (QAPs), provides an affirmative defense for the transfer or use of invalid 

RINs that had been verified under an approved QAP, defines the conditions when RINs must be 

replaced, and a process for determining who will replace the RINs. 

For the interim period only, which runs from February 21, 2013 (the publication date of the 

notice of proposed rulemaking) through December 31, 2014, we are finalizing both of the 

proposed QAP program options, QAP A and QAP B. 

Beginning January 1, 2015, after the interim period is over, the program will consist of a single 

QAP option, with its associated verified RINs referred to as Q-RINs. To this end, we are finalizing the following for the single QAP: 

•	 Minimum requirements for a QAP, including such things as verification of feedstocks, 

verification that volumes produced are consistent with amount of feedstocks processed, 

and verification that RINs generated are appropriately categorized and match the 

volumes produced 

•	 Qualifications for independent third-party auditors 

•	 Requirements for audits of renewable fuel production facilities, including minimum 

frequency, site visits, review of records, and reporting 

•	 Conditions under which a regulated party could assert an affirmative defense to civil 

liability for transferring or using an invalid RIN 

•	 Identification of the party or parties who are responsible for replacing invalid RINs with 

valid RINs and the timing of such replacement 

•	 A limited exemption for calendar years 2014, 2015, and 2016 that exempts two percent 

of a party’s Renewable Volume Obligation (RVO) from the replacement requirement if 

the RINs were used for compliance and were verified through a QAP 

•	 Changes to the EPA Moderated Transaction System (EMTS) that would accommodate 

the quality assurance program 

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Regulatory Announcement

We are finalizing certain provisions exclusive to QAP A in the interim period, such as the RIN 

replacement mechanism that provides for invalid A-RINs to be replaced, the RIN replacement 

cap for auditor replacement of invalid A-RINs, and the elements of an affirmative defense 

specific to A-RINs. Additionally, we are finalizing provisions exclusive to QAP B in the interim 

period, such as the elements of an affirmative defense specific to B-RINs, and a two percent 

limited exemption for B-RINs for calendar years 2013 and 2014. 

We are also finalizing modifications to the exporter provisions of the RFS program. These modifications will help ensure that an appropriate number and type of RINs are retired whenever 

renewable fuel is exported. Finally, we are finalizing a number of changes to other aspects of the 

RFS regulations governing the transfer and use of RINs that become invalid downstream of the 

producer. 

Impacts 

The voluntary quality assurance program is intended to improve RIN market liquidity and efficiency and improve the ability of smaller renewable fuel producers to sell their RINs. As the 

program is voluntary, there would be no required costs. Today’s action would not affect the 

volumes of renewable fuel required to be produced or the associated greenhouse gas or energy 

security benefits of the RFS program. 

For More Information 

For more information, please visit the RFS website at: 

www.epa.gov/otaq/fuels/renewablefuels 

To submit a question on the RFS program, and to view Frequently Asked Questions, please visit: 

www.epa.gov/otaq/fuels/renewablefuels/compliancehelp/index.htm 

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