Questions and Answers on the 


Renewable Fuel Standard Program


Compliance and Innovative Strategies Division 

Office of Transportation and Air Quality 

U.S. Environmental Protection Agency 

EPA420-F-08-006 

April 2008 
Introduction 

The final rulemaking for the Renewable Fuel Standard (RFS) program was signed 

by the EPA Administrator on April 10, 2007 and published in the Federal Register on 

May 1, 2007 [72 FR 23900]. The program began on September 1, 2007. To assist 

regulated parties, we have collected questions pertaining to a variety of implementation 

issues and generated responses to those questions. 

This document was prepared by EPA’s Office of Transportation and Air Quality 

(OTAQ). It includes new questions not addressed in previous versions of this document 

(see EPA document EPA420-F-07-041, May 2007 and EPA Document EPA420-F-07-

041a, September 2007). We will continue to update this document periodically as new 

questions arise. 

Regulated parties may use this document to aid in achieving compliance with the 

RFS program regulations. However, this document does not in any way alter the 

requirements of these regulations. While the answers provided in this document 

represent the Agency’s interpretation and general plans for implementation of the 

regulations at this time, some of the responses may change as additional information 

becomes available, or as the Agency further considers certain issues. 

This question and answer document does not establish or change legal rights or 

obligations. It does not establish binding rules or requirements and is not fully 

determinative of the issues addressed. Agency decisions in any particular case will be 

made applying the law and regulations on the basis of specific facts and actual action. 

While we have attempted to include answers to all of the questions submitted to 

us, the necessity for policy decisions and/or resource constraints may have prevented the 

inclusion of certain questions. Questions not answered in this document will be answered 

in subsequent updates. Questions that merely require a justification of the regulations, or 

that have been previously answered in the preamble to the regulations and require no 

further elaboration have been omitted. 

i 
Table of Contents 

List of Acronyms ...............................................................................................................iii 
 

New and Revised Questions .............................................................................................. iv 
 

1. Valid renewable fuels and Equivalence Values.......................................................... 1 
 

2. Generating RINs and assigning them to batches of renewable fuel ........................... 3 
 

3. Transferring RINs with renewable fuel .................................................................... 11 
 

4. Separating RINs from renewable fuel....................................................................... 18 
 

5. Market for separated RINs........................................................................................ 24 
 

6. Obligated and nonobligated parties .......................................................................... 27 
 

7. Renewable Volume Obligations (RVO) ................................................................... 29 
 

8. Company and Facility Registration .......................................................................... 31 
 

9. Recordkeeping and Product Transfer Documents (PTDs)........................................ 34 
 

10. Reporting and the EPA's Central Data Exchange (CDX)........................................ 38 
 

11. Other questions ........................................................................................................ 42 
 

12. Examples of RIN generation, assignment, and transfer........................................... 46 
 

ii 
List of Acronyms 

BBBBB RIN code identifying the batch number 

BOL Bill of lading 

CDX Central Data Exchange 

CFR Code of Federal Regulations 

E85 Blend of 85% ethanol and 15% gasoline 

ETBE Ethyl tertiary butyl ether 

EV Equivalence Value 

K RIN code indicating that the RIN is assigned or unassigned 

NRLM Nonroad locomotive and marine diesel fuel 

PTD Product Transfer Document 

RIN Renewable Identification Number 

RR RIN code identifying the Equivalence Value 

RVO Renewable Volume Obligation 

YYYY RIN code identifying the year renewable fuel was produced or imported 

iii 
New and Revised Questions 

Questions added or revised since the September 2007 version are as follows: 1.5, 2.8, 

2.25, 3.16-3.17, 6.7-6.8, 9.14-9.15, 10.15, and 11.14. 

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1. 	 Valid renewable fuels and Equivalence Values 

1.1 	 If I have a renewable fuel that was assigned a specific Equivalence Value in 

regulation Section 80.1115, but I don't think that Equivalence Value is right for 

my product, what options do I have? 

A: 	 Producers or importers of renewable fuel may submit a petition to the 

EPA requesting a different Equivalence Value from that assigned in the 

regulations. However, the petition must use the calculation methodology 

described in regulation Section 80.1115(d). In short, if the energy content 

or renewable content of a producer's or importer's product differs from 

the values used by EPA to calculate the Equivalence Values specified in 

regulation Section 80.1115(b), the party may be entitled to an alternative 

Equivalence Value. 

1.2 	 I will be making renewable gasoline from renewable crude. Section 

80.1115(b)(6) of the regulations says I must use an Equivalence Value of 1.0 even 

though renewable gasoline clearly warrants a higher Equivalence Value. Can I 

submit a petition? 

A: 	 Yes. See regulation Section 80.1115(c)(2). However, for renewable fuels 

other than renewable diesel which are made from renewable crudes, 

information on the energy content and/or renewable content may be 

difficult to obtain. This is why we designated the Equivalence Value for 

such fuels as 1.0, and specified that the applicable volumes must be 

measured according to the volume of renewable crude rather than the 

volume of the final product. In cases where information on the energy 

content and renewable content can be determined precisely, a different 

Equivalence Value may be warranted. 

In addition, regulation Section 80.1126(d)(6) allows a party to petition 

EPA to use the volume of the renewable fuel produced as the basis for 

generating RINs rather than the volume of the renewable crude used to 

make that product. 

1.3 	 What is the Equivalence Value for E85? Is it 0.85 since its renewable content is 

only 85 percent? 

A: 	 No. Equivalence Values are generated and apply to renewable fuel at the 

point of production or importation, not at the point of blending. Thus it is 

denatured ethanol, not E85 (nor E10) to which the Equivalence Value 

applies. A party blending denatured ethanol into gasoline to produce E85 

may receive assigned RINs with the denatured ethanol. Since the party is 

producing motor vehicle fuel from the renewable fuel (analogous to an 

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oxygenate blender), he will separate the RINs from the volume of ethanol 

received and can then retain or transfer those RINs to any other party. 

1.4 	 Do the regulations spell out the petition process to be used to determine 

Equivalence Values for fuels not identified in the rule? 

A: Yes. The provision is described in regulation Section 80.1115(c). 

1.5 	 I produce motor grade ethanol from a variety of waste streams, including 

industrial waste ethanol and unsellable beverages. Do I have to participate in the 

RFS program and generate RINs? Does my product fit the definition of wastederived ethanol so that I may generate up to 2.5 RINs per gallon of product? 

A: 	 For purposes of the RFS program, the term “renewable fuel” includes 

cellulosic biomass, waste-derived ethanol, biodiesel (mono-alkyl ester), 

non-ester renewable diesel, and blending components derived from 

renewable fuel (Sec. 80.1101(d)(2)). Further, waste-derived ethanol 

means ethanol derived from either: (1) animal wastes, including poultry 

fats and poultry wastes, and other waste materials or (2) municipal solid 

waste. Under this definition, ethanol derived from industrial waste 

ethanol and unsellable beverages is waste-derived ethanol because it is 

derived from “other waste materials.” Waste-derived ethanol is subject to 

the RFS regulations as a renewable fuel, and therefore ethanol producers 

who produce ethanol from industrial waste sources and/or unsellable 

beverages must register for the RFS program and generate RINs. Because 

it fits the definition of waste derived ethanol, 2.5 RINs are generated for 

each gallon of product. See Secs.. 80.1115(b)(1), 80.1126(d)(4). 

The RFS regulations allow cellulosic biomass ethanol and waste-derived 

ethanol producers and importers to assign between 1.0 and 2.5 RINs per 

gallon of ethanol. See Sec. 80.1126(e)(4). In the case that the producer 

or importer chooses to assign only 1.0 RIN per gallon, they may retain the 

remaining 1.5 RINs per gallon as unassigned RINs, with a K code of 2. 

Such a producer may then sell or otherwise use the separated RINs as the 

producer desires. Waste-derived ethanol producers, like cellulosic 

biomass ethanol producers, must meet all of the same requirements as 

corn ethanol producers with respect to reporting, recordkeeping, and an 

annual attest engagement. In addition, they must satisfy additional 

requirements related to verifying their feedstock and production processes 

as outlined in Sec. 80.1155. 

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2. 	 Generating RINs and assigning them to batches of renewable fuel 

2.1 	 Ethanol is imported on an undenatured basis. Do we assign the RINs to the 

denatured volume or the undenatured volume? 

A: Denatured. See regulation Sections 80.1101(d)(3) and 80.1115(b)(2). 

2.2 	 We are importers who import ethanol without denaturant, but with the intent to 

use it as motor fuel. When the RIN is generated, we maintain ownership of the 

ethanol, but we do not have custody and we do not add the denaturant. Would we 

include our company ID number and use the facility number of the denaturing 

facility (i.e. they would have to be registered)? 

A: 	 The owner of the denaturing facility would not necessarily be a registered 

party under the regulations. The company and facility IDs of the 

importing party who owns the renewable fuel at the time a RIN is 

generated (based on the volume of renewable fuel with denaturant) are the 

company and facility IDs that must be included in the RIN. (The owner of 

the renewable fuel should know the volume of the fuel coming out of the 

denaturing facility since it owns and will either sell or use the denatured 

fuel.) The importing company that owns the fuel would need to register 

the facility, typically leased tankage, with which it has contracted to store 

and denature the renewable fuel (i.e., has custody) as one if its own 

facilities with its own facility ID number. This means that a facility owned 

by a company that simply leases tankage may never be a registered party 

but several registered importers may have a separate facility ID for that 

tankage facility. This scenario would not apply to domestic producers 

because ethanol intended to be used as motor fuel would be denatured at 

the facility where it was produced. 

2.3 	 A refinery can produce non-ester renewable diesel by processing renewable 

feedstock through a distillate hydrotreater. In this situation, the refinery must 

assign RINs based on the feed volume. I assume the refinery can follow the rules 

for defining a batch (i.e. a batch can be up to the production volume of a month as 

long as the batch total volume is less than 100 million gallons). 

A: 	 Yes. However, it is the total number of gallon-RINs, not the total volume 

that must be less than 100 million. See regulation Section 80.1126(c). 

2.4 	 When a plant determines the volume of ethanol for a first and last gallon of a 

RIN, what’s the reference point? Gallons at load-out through a metering system 

like Determan Brownie? (Since this is the point where they’re adjusting the 

gallons to 60 degrees F)? 

3
 
A: 	 Renewable fuel producers and importers have flexibility in terms of the 

specific means through which they measure volumes for purposes of 

generating RINs. However, the approach should ensure that gallons are 

neither systematically ignored nor systematically double-counted. Also, 

approaches that provide consistent volumes for both the RFS program and 

other contexts such as reporting to the Energy Information Administration 

are preferred. To the degree that measuring volumes at load-out through 

a Determan Brownie metering system meets these criteria, it would be 

acceptable. 

Under the regulations, RINs must be generated for a volume of renewable 

fuel by the time that that volume is transferred to another party (at which 

time, the RINs are “assigned” to the renewable fuel pursuant to 

regulation Section 80.1126(e)(2)). Thus the volume measurement used as 

the basis of RIN generation can occur as the renewable fuel is produced, 

as it resides in a tank awaiting transfer from the producer/importer, or as 

it is pumped to a new owner. The method used must be consistent over 

time for a facility. 

2.5 	 Within the RIN, D = 2 for non-cellulosic biomass ethanol and D = 1 for cellulosic 

biomass ethanol. How is biodiesel coded? 

A: 	 All renewable fuels that cannot be categorized as cellulosic biomass 

ethanol should be assigned RINs with a D code value of 2. Thus biodiesel 

would have D = 2. See regulation Section 80.1125(g). 

2.6 	 Can an ethanol or biodiesel plant keep a RIN? 

A: 	 In general, producers of renewable fuel must assign all RINs that they 

generate to volumes of renewable fuel and transfer those RINs with the 

renewable fuel to another party. However, there are some exceptions. 

First, producers of cellulosic or waste-derived ethanol can retain RINs 

generated in excess of an Equivalence Value of 1.0 (see regulation Section 

80.1126(e)(4)). Second, a renewable fuel producer who is also an 

obligated party can retain RINs generated up to the level of their annual 

RVO (see regulation Section 80.1129(b)(6)). Lastly, producers can 

acquire an unlimited number of unassigned RINs through the open RIN 

market. 

2.7 	 No Equivalence Value was provided for ETBE. What value do I use for 

generating RINs for ETBE? 

A: 	 The RFS program prohibits a party from generating RINs if the renewable 

feedstock used to make the renewable fuel was acquired from another party. 

Any RINs acquired with the renewable feedstock (e.g., ethanol) must be 

assigned to the renewable fuel product (e.g., ETBE) made from that feedstock. 

4
 
If the ethanol used to make ETBE does not have RINs associated with it (i.e. 

the RINs have been properly separated prior to receipt of the ethanol by the 

ETBE producer), then the ETBE producer would neither generate RINs for 

the ETBE it producers, nor assign any RINs to that ETBE. Thus there is no 

need for an Equivalence Value for ETBE. See regulation Section 

80.1126(d)(8). 

2.8 	 I will be making ethanol from both cellulosic feedstocks and corn in my plant. 

How do I know what Equivalence Value to use, and how do I assign RINs to 

batches? 

A: 	 The batches of each type of ethanol (cellulosic or corn) should be 

measured independently and precisely, according to the separate 

processes used to produce them in the plant. Once separate batch 

numbers are created and RINs are generated, the producer can combine 

the mixed volumes (cellulosic with corn) in a common tank. As product 

leaves the common tank, the producer may assign whatever valid RINs 

they wish to assign that outgoing product. The total number of RINs that 

could potentially be assigned to product leaving the tank would be the sum 

of the RINs generated for the different types of ethanol added to the tank. 

However, up to 1.5 RINs per gallon of the cellulosic ethanol produced and 

added to the tank may be retained as an unassigned RIN with a K code of 

2. It should be highlighted that due to changes that will result from 

passage of the Energy Independence and Security Act, certain aspects of 

this approach are likely to change in future regulations. 

Alternatively, we have created a regulatory mechanism through which the 

producer may submit a petition to the Agency describing the renewable 

fuel, its feedstock and production process, and the calculation of its 

Equivalence Value. See regulation Section 80.1115. This petition process 

can be used to identify an appropriate Equivalence Value for mixtures of 

renewable fuels. 

2.9 	 Are RINs generated at the end of the month based on actual quantities for that 

period, or are they established at the beginning of the month based on estimates of 

production that month ( i.e. "x" gallons, and once "x" gallons are exceeded the 

RIN starts over?) 

A: 	 All RINs represent actual production, not estimates. However, there is no 

need to wait until the end of a month to generate RINs. Each producer 

and importer should decide what the batch number (the BBBBB code in 

the RIN) will represent. The regulations require only that each batch 

represent no more than the volume produced or imported within a 

calendar month, and less than 100 million gallon-RINs. One party may 

decide to assign each week's production a unique batch number, while 

5
 
another may decide to assign each tank full a unique batch number. 

Regardless, gallon-RINs can be generated as volumes are produced and 

transferred. As more volume of renewable fuel is produced, additional 

gallon-RINs are generated within the same batch, up to the self-imposed 

or regulatory limit for that batch. Then a new batch with a new BBBBB 

code begins. 

2.10 	 If a plant establishes RINs at the beginning of the month and defines it as one 

month's production estimate (e.g. 8 million gallons), what happens if the plant 

produces more than 8 million gallons by the end of the month? Does the plant 

then start issuing a new batch number for the next 8 million gallon RIN? What if 

this happens in the middle of filling a rail car? 

A: 	 RINs are not generated at the beginning of a month. Rather, gallon-RINs 

must have been generated by the time a volume of renewable fuel is 

transferred from the producer or importer to another party (at which point 

the RINs are assigned to that volume). See regulation Section 

80.1126(e)(2). A producer or importer of renewable fuel can decide on its 

preferred approach of designating batch numbers (the BBBBB code in the 

RIN), and then put this batch number into all gallon-RINs generated up to 

a calendar month's production or 100 million gallon-RINs, whichever 

comes first. 

If a producer/importer had predefined a specific volume limit (such as 8 

million gallons) for each batch, and this limit was exceeded in the middle 

of filling a rail car, the producer/importer would have two options. Since 

the 8 million gallon limit is self-imposed, he could simply exceed this limit 

for this particular batch. Alternatively, he could generate a new set of 

gallon-RINs having a new batch number for the volume that exceeded 8 

million gallons. In this latter case, the renewable fuel in the rail car 

would be transferred along with two separate batch-RINs, which differ 

only in the batch number (i.e. the BBBBB code) and the number of gallonRINs they represent. 

2.11 	 Do batch numbers have to be sequential? Do they have to correspond to the 

month that they represent (i.e. 1 - 12)? 

A: 	 Batch numbers need not be sequential and need not represent a full 

month. They need only be unique within a calendar year. Each producer 

or importer of renewable fuel can define a batch in whatever way it 

chooses, so long as each batch represents less than 100 million gallonRINs and no more than one calendar month's production. See regulation 

Sections 80.1125(e) and 80.1126(c). Examples of permissible batch 

numbering schemes include individual tank fulls, calendar day production, 

weekly production, and volume sold to each customer each month. 

6
 
2.12 	 When the program starts, will renewable fuels in the distribution system on 

September 1, 2007 be valid for RFS compliance purposes? 

A: 	 In some cases, yes. Renewable fuels that are valid for RFS compliance 

purposes are those for which RINs have been generated. Under 

regulation Sections 80.1104 and 80.1126(d)(1), RINs must be generated to 

represent renewable fuels that are produced or imported on or after 

September 1, 2007. However, our regulations do not define the point at 

which production occurs. It could be the point of physical production, 

loading into a tank, or transfer to another party. Thus, under regulation 

Section 80.1126(d)(2), RINs can also be generated for renewable fuel that 

a producer or importer owns on September 1, 2007 even if that renewable 

fuel had been physically produced or imported prior to September 1. 

Since some renewable fuel will be in the distribution system while 

remaining under the ownership of a producer or importer on September 1, 

2007, it may be assigned RINs even though it has already physically left 

the originating production or importation facility. In such cases, 

renewable fuel in the distribution system on September 1, 2007 may have 

assigned RINs. 

Parties other than renewable fuel producers and importers are not 

allowed to generate RINs at any time (including for renewable fuel in the 

distribution system on September 1, 2007). Renewable fuel producers and 

importers may generate RINs for renewable fuel they own on September 1, 

2007 that was produced or imported earlier, and must generate RINs for 

renewable fuel produced or imported on or after September 1, 2007. 

2.13 	 Can a producer aggregate multiple shipments into a single batch up to a threshold 

quantity as long as the batch is within one calendar month? 

A: 	 Yes. In the context of generating RINs and specifying the BBBBB code, 

producers and importers have the option to define a batch as being 

comprised of several discreet shipments within a calendar month, so long 

as the total number of gallon-RINs assigned a unique batch number is less 

than 100 million. See regulation Sections 80.1125(e) and 80.1126(c). 

2.14 	 When is a RIN generated for ethanol that is imported into the U.S.? 

A: 	 Ethanol imported for use as motor vehicle fuel would typically be 

downloaded from a ship into on-shore tankage and then denatured. 

(Ethanol shipped to the United States from other countries is not typically 

denatured prior to or during shipment.) Importers should generate RINs 

for imported ethanol when the denaturant is added at the off-loading 

tankage. Thus, the facility number used to create these RINs would be the 

tankage facility where the denaturant is added. See also question 2.2. 

7
 
2.15 	 Regulation Section 80.1126(d)(1), which says "must," seems in conflict with 

Section 80.1126(d)(2) which says "may". Is the correct reading that any volume 

of renewable fuel that leaves a producer's gate on or after 9/1/07 MUST have 

RINs assigned? 

A: 	 Renewable fuel producers and importers may generate RINs for 

renewable fuel they own on September 1, 2007 that was produced or 

imported earlier, and must generate RINs for renewable fuel produced or 

imported on or after September 1, 2007. Thus at the beginning of the 

program, it is possible that some volumes of renewable fuel being 

transferred by a renewable fuel producer or importer may not have 

assigned RINs. However, this will not be the case in the longer term, 

since all renewable fuel imported or produced must have assigned RINs. 

2.16 	 What's the difference between generating a RIN and assigning it? 

A: 	 Generating a RIN refers to the process of creating a new RIN to represent 

a particular type and volume of renewable fuel. See regulation Section 

80.1126(d). Assignment occurs when the producer or importer of the 

renewable fuel transfers a RIN to another party along with a volume of 

renewable fuel. See regulation Section 80.1126(e). 

Note that the regulations do not specify the point when generation of RINs 

must occur. Under regulation Section 80.1126(e)(2), it is only at the point 

when a volume of renewable fuel leaves the production or importation 

facility where it originated that RINs must have been generated for, 

assigned to, and transferred with that volume. Since the EPA does not 

specifically define the point of production or importation, a producer can 

generate RINs as the renewable is being physically produced, as it sits in 

a tank awaiting transfer to another party, or even while the renewable fuel 

is being transferred to another party. 

2.17 	 Assume a plant decides to define a batch as 10 million gallons. He starts the 

batch on September 1 and hits the 10 million gallon mark on September 20. He 

then starts the second batch, but doesn't hit the 10 million gallon mark until 

October 10. Since each batch is less than 31 day's worth of production, is this 

OK? 

A: 	 No. A batch of renewable fuel must meet both of the following criteria: 1) 

a batch must represent less than 100,000,000 gallon-RINS, and 2) a batch 

must represent no more than one calendar month's worth of production. 

Thus a batch cannot represent production that spans two calendar 

months, such as September and October. Even though the producer 

decides to define a batch as 10 million gallons, if the end of a calendar 

month is reached before the 10 million gallon mark is reached, a new 

batch must be started at the beginning of the next calendar month. 

8
 
2.18 	 All I do is produce corn ethanol and sell it all to X Company, which is an ethanol 

marketer. Do I have to do anything, or can X Company generate the RINs for 

me? 

A: 	 Each producer of renewable fuel is responsible for generating the RINs 

that represent that renewable fuel. This function cannot be delegated or 

assigned to any other party, including a party to whom a producer sells its 

product. 

2.19 	 What happens to gallons of ethanol that are in the system August 31 without 

assigned RINs? 

A: 	 The answer depends on who holds those gallons of ethanol. Only 

producers or importers of renewable fuel can generate RINs for any 

renewable fuel they own on September 1, 2007. See regulation section 

80.1126(d)(2). Any volumes of renewable fuel in the distribution system 

as of September 1, 2007 for which RINs were not generated by a producer 

or importer, or which were not owned by a producer or importer on 

September 1, 2007, will not have assigned RINs. Under the regulations, a 

marketer can transfer a volume of renewable fuel without associated RINs 

so long as the end-of-quarter check of RINs held and volumes held has 

been met. See regulation section 80.1128(a)(5). 

2.20 	 The following is a two-part question: 

a. 	 We are a petroleum refiner and recognize that we are an obligated 

party under the regulation. We are considering importing ethanol 

that has not been denatured. We will hold title to the un-denatured 

ethanol. Title and custody will pass to another party who will 

denature the ethanol and transfer title back to us. We will sell it 

for use as a motor fuel. Are we an importer of renewable fuel 

under the RFS program? 

A: Un-denatured ethanol is not a renewable fuel. See 

80.1101(d)(3). Under the described scenario, the party to 

whom custody is transferred and who denatures the ethanol 

would be producer of the renewable fuel. 

b. 	 How would RINs be generated? 

A: 	 Under the described scenario, RINs would be generated by 

the party who denatures the ethanol and produces the 

renewable fuel. See 80.1126(d). If the petroleum refiner 

wishes to generate RINs, then the petroleum refiner would 

9
 
have to keep title to the ethanol throughout the described 

transaction. 

2.21 	 We are a marketer with an inventory of denatured ethanol stored at various 

commercial facilities and terminals. We do not produce or import ethanol. We 

are registered as a party who owns RINs. On September 1, 2007, do we assign 

RINs to our stored inventory? 

A: 	 No. Only a producer or importer of renewable fuel may generate RINs for 

volumes of renewable fuel that it owns on September 1, 2007. See 

80.1126(d)(2). 

2.22 	 Section 80.1151(b)(3)(vii) requires retention of additional information related to 

the details of RIN generation. What does this mean? 

A: 	 Companies vary in their internal recordkeeping practices and not all 

similar records will take identical form. Therefore, in several places in 

the recordkeeping section (80.1151) we have required that "additional" 

information be retained. We certainly do not wish to dictate how a 

company keeps each and every record, as this would present an 

unnecessary compliance burden. However, since one reason for retaining 

company records is to be able to produce them should an enforcement 

question arise, it is in a company's best interest to retain "additional 

information" that may fully explain the details of RIN generation as 

reported to EPA. These records must be presented to EPA upon request. 

2.23 	 We are a producer of ethanol. If we have 10,000 gallons in inventory on 

September 1, 2007 and 25,000 came from our production facility A, 25,000 came 

from our production facility B, and the other 50,000 we own but received from 

various other producers, how do we assign RINs to the other 50,000? 

A: 	 As an ethanol producer or importer, you may assign RINs to the product 

you own on September 1, 2007. As far as how to handle the facility 

identification number fields in the RIN, you will want to consistently 

document and assign the other 50,000 RINs to one of your registered 

facilities as of September 1, 2007. 

2.24 	 We are a producer of ethanol. We have ownership of renewable fuel that is in 

transit on September 1, 2007. How do we assign a RIN to that fuel? 

10
 
A: 	 As long as you actually own the fuel on September 1, 2007, it does not 

matter that it is in transit. As a producer, you may assign RINs to product 

you own on September 1, 2007. You may assign the RINs for ethanol that 

you own but that is in transit to one of your registered facilities. 

2.25 	 Prior to the RFS rule, industry has used an equation for standardization of ethanol 

volumes that carries the correction factor out to 5 digits rather than 7 digits as in 

the formula given in the RFS rule at 80.1126(d)(7)(i). Will use of the equation 

currently in practice suffice for purposes of compliance with the RFS rule? 

A: 	 Because the difference between the five-digit and seven-digit factors is 

extremely small, regulated parties may find that it makes no practical 

difference whether they use the shorter factor for batches of a certain 

size. If it makes no difference in compliance calculations, you may wish 

to use the shorter factor for convenience. In any enforcement 

proceedings, however, EPA will use the specified seven-digit factor to 

verify compliance. We believe that using the 5 digit factor (0.00063) 

rather than the 7 digit factor in the regulations (0.0006301) will not result 

in an substantial difference it the number of whole gallons assigned to a 

batch of renewable fuel, and, therefore, may be used to determine the 

volume of a batch under section 80.1126(d)(7). 

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3. 	 Transferring RINs with renewable fuel 

3.1 	 The final rule on page 23909 (Federal Register, volume 72) states that any nonobligated party that takes ownership of the renewable fuel with RINs will be 

required to transfer those RINs with a volume of renewable fuel. Does this refer 

to oxygenate blenders? 

A: 	 No, as long as the blender actually blends the renewable fuel into gasoline 

or diesel. In that case, the blender would be required to separate the 

assigned RINs from the blended renewable fuel, and could then transfer 

the RINs to any party without simultaneously transferring a volume of 

renewable fuel. See regulation Sections 80.1128(a)(3) and 80.1129(b)(2). 

3.2 	 If an oxygenate blender must transfer RINs with a volume of renewable fuel, who 

are they transferring to, if they are the final/end-user? 

A: 	 If any oxygenate blender blends renewable fuel into gasoline or diesel, he 

is no longer required to transfer RINs and renewable fuel together. 

3.3 	 Do third party marketers like X Company need to track RINs from the ethanol 

plant to the buyer? 

A: 	 If X Company takes ownership of ethanol along with assigned RINs, it 

would be required to register with the EPA and would be subject to the 

recordkeeping, reporting, product transfer document and attest 

engagement requirements of regulation Sections 80.1151(d), 80.1152(c), 

80/1153 and 80.1164(c). The tracking required under the RFS rule 

involves only transfers of title (ownership), not transfers of custody. If X 

Company never takes ownership of ethanol with assigned RINs and does 

not participate in other ways in the RFS program (for example, through 

the purchase and sale of unassigned RINs), it would not be required to 

register with, or report to, EPA under the RFS program. 

3.4 	 Will ethanol and biodiesel plants have to track the RIN all the way to the refiner, 

or just to the next owner of the renewable fuel? 

A: 	 Refer to the response to Question 3.3. Each party that owns assigned or 

unassigned RINs, including an ethanol or biodiesel production plant, is 

required only to keep records of and report transfers of ownership of those 

RINs its receives and that is passes to the next owner. See sections 

80.1151 and 80.1152 of the regulation. 

3.5 	 The RIN is too long to fit onto my bill of lading. What are my options? 

12
 
A: 	 An assigned RIN must appear in its entirety on product transfer 

documents (PTDs) identifying a transfer of ownership of a volume of 

renewable fuel. Substitute codes are not permitted. See regulation 

Section 80.1153. (In general PTDs would not include bills-of-lading, 

which are used for transfers of custody rather than transfers of 

ownership.) However, the PTD transferring the RINs can be a separate 

and parallel PTD from that used to transfer the renewable fuel to which 

those RINs are assigned. In this case, the PTD transferring the renewable 

fuel must include the number of gallon-RINs being transferred and a 

unique reference to the PTD which is transferring the assigned RINs, but 

need not list the actual RINs. See regulation Section 80.1153(a)(5)(ii). 

PTDs can be electronic, including computer spreadsheets. 

3.6 	 How do owners of the ethanol account for product samples taken at the plant and 

downstream relative to RINs? Likewise, how is standard product shrinkage (i.e. 

when ethanol is transferred to a terminal) handled relative to RINs? 

A: 	 In general, the RINs associated with small volumes removed for sampling 

and testing, or lost due to evaporation, leakage, or metering imprecision, 

remain valid for RFS compliance purposes. Small volume losses can be 

accommodated through the regulatory provision which allows up to 2.5 

gallon-RINs to be transferred with each gallon of renewable fuel. See 

regulation Section 80.1128(a)(4). For larger volumes losses resulting 

from spills or other accidents, a provision exists for retiring the associated 

RINs. See regulation Section 80.1132. 

3.7 	 How does a marketer split RINs that go to downstream buyers (i.e. next owners 

like a refiner)? 

A: 	 Parties such as marketers that are required to transfer assigned RINs with 

renewable fuel are not required to align the number of gallon-RINs 

transferred with the number of gallons transferred for every transaction. 

Rather, the regulations require only that the number of assigned gallonRINs (with a K code of 1) transferred with each gallon of renewable fuel 

be no more than 2.5. See regulation Section 80.1128(a)(4) and preamble 

discussion at page 23939, column 3. Within this limit, a marketer is free 

to allocate gallon-RINs to volumes of renewable fuel in whatever way he 

chooses, so long as an end-of-quarter check on the balance of RINs versus 

renewable fuel in inventory is met. See regulation Section 80.1128(a)(5). 

3.8 	 Does regulation Section 80.1128(a)(4) allow a marketer to change the K code 

from 1 to 2 and then not transfer the RIN with the renewable fuel as long as he 

sells the RINs to anyone by the end of the quarter? 

A: 	 Marketers who buy and sell renewable fuel without blending it into 

gasoline or diesel cannot separate RINs from volumes, and thus cannot 

13
 
change the K code from 1 to 2. All conditions under which a party can 

separate RINs from volumes are set forth in regulation Section 

80.1129(b). However, a marketer can indeed decide not to transfer a 

particular RIN with a volume of renewable fuel so long as the end-ofquarter check described in regulation Section 80.1128(a)(5) is fulfilled. 

3.9 	 Will non-obligated parties that can hold title to RINs be required to balance them 

each quarter? 

A: 	 Every party that owns assigned RINs must comply with the end-of-quarter 

check described in regulation Section 80.1128(b)(5). This provision 

ensures that RINs must be transferred with renewable fuel as renewable 

fuel moves through the distribution system. However, this provision 

applies to assigned RINs only (with a K code of 1). Any party can own 

any number of unassigned RINs (with a K code of 2) and unassigned RINs 

are not subject to any end-of-quarter check. 

3.10 	 What happens if a marketer sells a batch with one RIN to two different refiners? 

Can he divide the RIN? If so, how? 

A: 	 The basic unit of compliance in the RFS program is the gallon-RIN. 

However, for shorthand we allow multiple sequential gallon-RINs to be 

represented by a single batch-RIN through the appropriate designation of 

the start (SSSSSSSS) and end (EEEEEEEE) codes in the RIN. As physical 

volumes of renewable fuel are split or merged, the assigned batch-RINs 

can likewise be split or merged in various ways, with the primary 

restriction being that no more than 2.5 assigned RINs can be transferred 

with every physical gallon of renewable fuel (see regulation Section 

80.1128(a)(4)). See also question 3.7. 

3.11 	 How can a marketer transfer RINs with a K code of 1 and fulfill the requirement 

that "No person may transfer a RIN that has a K code of 1 without transferring an 

appropriate volume of renewable fuel to the same person on the same day"? 

A: 	 A party may transfer any volume of renewable fuel to any other party 

without simultaneously transferring any assigned RINs to that same party. 

However, assigned RINs can only be transferred to another party in 

association with the transfer of a volume of renewable fuel. Under 

regulation Section 80.1128(a)(4), the ratio of assigned RINs transferred to 

gallons transferred can be anywhere between zero and 2.5. 

3.12 	 The following is a two-part question: 

a. 	 We are a wholesaler of E100 and B100. We do not do any 

blending. We purchase and sell E100 and B100 and sell it to 

14
 
anyone who needs it. What in the RIN code must be changed to 

document the change of ownership? 

A: 	 Nothing changes in the RIN code to document a change of 

ownership. 

b. 	 What would the wholesaler put on his PTDs when he transfers title 

to another party? 

A: 	 Section 80.1153 describes the requirements for PTDs, 

which generally include the name and address of the 

transferor and transferee, the company registration number 

of each, the volume of renewable fuel being transferred, the 

date of the transfer, and information about any assigned 

RINs. 

3.13 	 The following is a two part question. We are a marketer of ethanol products. 

Sometimes personnel at ethanol plants make mistakes as to the number of gallons 

being loaded or produced. How do we "recall" erroneous RINs if: 

a. the number of gallons we receive exceeds the number of RINs? 

A: 	 PTD documents may be corrected to reflect the appropriate 

volume associated with the volume received. The 

additional volume with assigned RINs may be addressed 

with a second PTD. 

b. the number of RINs exceeds the number of gallons we receive? 

A: 	 The parties (producers) selling ethanol to you have an 

obligation to transfer appropriate RINs to you. A producer 

who is also a marketer may assign up to 2.5 RINs per 

gallon of renewable fuel. A producer who is not a marketer 

may only assign RINs up to the renewable equivalence 

value (EV). If a company receives an excess number of 

RINs assigned to a gallon, then the producer would be in 

violation. To rectify this, a producer may ask a recipient to 

retire the excess RINs. There is a retirement code on the 

reporting form for RINs generated in error and that code 

should be used. 

3.14 	 The following is a two part question. 

a. 	 We would describe ourselves as an ethanol marketer, but we 

import gasoline into one of the 48 contiguous United States. Does 

15
 
this make us an obligated party and, as an obligated party, are we 

able to separate RINs? 

A: 	 If a party is an importer of gasoline into the 48 contiguous 

United States, then that party is an obligated party. Section 

80.1129(b)(6) allows an obligated party to separate RINs 

they generated from volumes of renewable fuel, if the 

number of gallon-RINs separated is less than or equal to 

the annual RVO. This section applies to assigned RINs 

generated by the obligated party through the production or 

importation of renewable fuel. Section 80.1129(b)(6) does 

not cover marketers who buy renewable fuel with assigned 

RINs since these RINs were not generated by the obligated 

party. Therefore, an obligated party who also markets 

renewable fuel, must separate assigned RINs, not 

generated by the obligated party, from any renewable fuel 

acquired as stated in Section 80.1129(b)(1). The obligated 

party may use the separated RINs or transfer them. 

However, if an obligated party is a marketer and is also an 

importer (or producer) of renewable fuel, per section 

80.1129(b)(6), they may separate RINs which they generate 

when importing or producing the renewable fuel, only up to 

the associated RVO. 

b. 	 If the answer to part a. is "no," may I use my minority ownership 

in a cooperative refinery to be considered an obligated party, able 

to separate RINs? 

A: 	 With regard to the second part of the question, the answer 

is “no.” Typically, obligated parties are registered on a 

corporate level. Therefore, the obligated party would be 

the refinery on a corporate level rather than on an 

individual shareholder level. 

3.15 	 Are companies that are both producers and marketers of ethanol subject to the 

RIN transfer requirements of 40 CFR 80.1128(a)(5), or the more stringent 

requirements of 80.1128(a)(6)? These issues have surfaced because a number of 

independent gasoline marketers who blend ethanol as part of their normal 

business practices have indicated that they would rather not take ownership of 

RINs and not participate in the RFS program. Presumably, if such parties never 

take ownership of RINs, they would not have to register as regulated parties with 

the Environmental Protection Agency (EPA) as required under the RFS 

regulations and would, therefore, not be subject to RFS reporting requirements or 

to other enforcement-related requirements of the regulations, such as attest 

16
 
engagements (audits) and record-keeping requirements. We would like 

confirmation from EPA regarding this interpretation of the regulations, and also 

seek clarification as to whether companies that both produce and market ethanol 

are able to transfer ethanol with zero assigned RINs in the same manner as 

companies that are only involved in marketing operations. 

A: 	 Under section 80.1128(a) of the RFS regulations, a party owning ethanol 

with assigned RINs cannot, (unless they are an obligated party, renewable 

fuel exporter, a person that converts renewable fuel into motor vehicle 

fuel, or a cellulosic ethanol producer), transfer RINs without transferring 

a volume of ethanol. This section also places a maximum number of RINs 

(2.5) that can be transferred with any gallon of renewable. The 

regulations, however, do not prohibit the transfer of ethanol from a 

marketer to another party, for example, an independent gasoline marketer, 

with no RINs attached. In other words, a marketer can transfer ethanol 

with anywhere from zero to 2.5 RINs attached to each gallon of renewable 

fuel. If a transaction is made where the marketer sells ethanol without 

RINs attached, the party purchasing the ethanol need not be registered 

with EPA as a regulated party if that party never owns any RINs during 

the course of the reporting period. Therefore, if an independent gasoline 

marketer who blends ethanol purchases ethanol without RINs from an 

ethanol marketer, and never owns RINs during a reporting period, then 

that gasoline marketer/blender need not be registered with EPA and need 

not comply with the reporting requirements and other enforcement 

requirements applicable to RIN owners, such as attest engagements 

(audits) and recordkeeping requirements as outlined in the regulations. 

It is important to note however, that ethanol marketers are responsible to 

assure that RINs will be passed along to ethanol purchasers over the 

course of a reporting period, typically one quarter of a year. Any party 

owning ethanol with assigned RINs and covered under section 80.1128(a), 

typically a marketer of ethanol, must meet the RIN inventory requirements 

at section 80.1128(a)(5). These essentially oblige the ethanol marketer to 

transfer all RINs acquired during a quarter with an associated renewable 

fuel volume, except for the RINs associated with the volume which is held 

in the marketer’s inventory at the end of the quarter. In other words, all 

RINs acquired by the marketer must be transferred to some purchaser 

during the quarter, except for those RINs associated with end-of-quarter 

inventory. 

Unlike marketers, ethanol producers have certain additional 

responsibilities regarding the transfer of RINs with product. Under 

section 80.1128(a)(6), producers (and importers) of renewable fuels must 

transfer ownership of the RINs associated with a volume of renewable fuel 

whenever that renewable fuel is sold. Accordingly, it is not possible for an 

ethanol producer to transfer ethanol without associated RINs, and all 

17
 
parties to whom they transfer ethanol must be registered with EPA to 

participate in the RFS program. 

You asked for clarification regarding the RIN-transfer requirements that 

apply to a company that both produces and markets ethanol. EPA 

believes that the RFS regulations are ambiguous in this regard. In 

interpreting the regulations at this time, EPA is mindful of both the 

original purpose of the more restrictive RIN-transfer requirements 

applicable to producers, which was to minimize the possibility of shortterm hoarding, and the benefits to marketers and distributors of ethanol 

that is reflected in the more flexible requirements of 40 CFR 

80.1128(a)(5). See 72 Fed. Reg. 23939 - 23942.(May 1, 2007), EPA is 

also cognizant of the concerns of some gasoline marketers who may wish 

to purchase ethanol without associated RINs, so as to avoid the costs 

associated with the registration, reporting and attest engagement 

requirements of the RFS program. Finally, EPA’s wish throughout the 

implementation of the RFS program has been to minimize disruption of 

currently-established business patterns. Accordingly, EPA does not wish 

its program to act as a disincentive to firms that wish to both produce and 

market ethanol. Balancing these various concerns, EPA is interpreting 

the RFS regulations to allow any producer that is also in business as an 

ethanol marketer, to utilize the more flexible RIN-transfer requirements of 

40 CFR 80.1128(a)(5) for all of the ethanol that they sell. In order to 

qualify for this treatment, the producer must market ethanol of other 

producers as well as its own. Thus, producers who only market and sell 

the ethanol that they produce must comply with the RIN transfer 

requirements of 40 CFR 80.1128(a)(6). Producers who market and sell 

their own ethanol and that of others must comply with the RIN-transfer 

requirements of 40 CFR 80.1128(a)(5). 

Given our view of the regulations as explained above, we believe there is 

more than sufficient flexibility for gasoline marketer/blenders who do not 

want to participate in the RFS program to purchase ethanol without RINs. 

Such companies would therefore not have to participate in the 

registration/reporting requirements and other enforcement requirements 

of the RFS program. EPA also recognizes that there are many gasoline 

marketers that blend ethanol who are very enthusiastic about 

participating in the RFS program. Nothing in this clarification of the 

regulations changes their ability to participate now or in the future. 

3.16 	 In the discussion in the Preamble regarding the requirements for owners of 

facilities that claim to have produced cellulosic ethanol under the 90 percent 

displacement provision, there is a reference to Section III.D.3.e. I have been 

unable to locate this paragraph in the Preamble. Can you direct me toward this 

paragraph or more specifically to the information referenced? 

18
 
A: 	 The reference is a typographical error. All relevant discussion appears in 

III(B)(1)(b) of the Preamble, “Ethanol Made from Any Feedstock in 

Facilities Using Waste Material to Displace 90 Percent of Normal Fossil 

Fuel Use,” which starts at 72 FR 21916. 

3.17 	 If I am registered for the RFS program, do I have to receive RINs with the 

renewable fuel I purchase? 

A: 	 Being registered for the RFS program does not mean that a party must 

receive RINs with the renewable fuel they purchase. Being registered for 

the RFS program means that a party is eligible under the regulations to 

receive RINs. The regulations do not require registered purchasers of 

renewable fuel to purchase such fuel either with or without RINs attached. 

On the other hand, a party that has not registered for the RFS program is 

prohibited from taking ownership of renewable fuel with attached RINs. 

4. 	 Separating RINs from renewable fuel 

4.1 	 Does blending biodiesel into agricultural diesel (or other nonroad diesel such as 

NRLM diesel) allow the RIN to be separated? 

A: 	 EPA believes that most fuel that can be used as motor vehicle fuel and 

which otherwise meets the definition of “renewable fuel” (such as 

biodiesel and ethanol) will ultimately be used as motor vehicle fuel. 

Therefore, producers of such products can assume that they meet the 

definition of “renewable fuel” and can assign RINs to them without 

tracking their ultimate use. 

However, if fuel with assigned RINs is actually blended into gasoline or 

diesel that is known to be destined for use in a nonroad application such 

as agricultural equipment, the presumption that led the fuel producer to 

assign RINs to the product is no longer valid. Such fuel cannot be 

considered a motor vehicle fuel and thus is not in fact a “renewable fuel” 

that is valid for RFS compliance purposes. In such cases, the blender 

should treat the RINs associated with the blended fuel in the same way as 

for fuel with assigned RINs that is used in a heater or boiler (see question 

4.2). See also preamble Section III.B.1 and Summary and Analysis of 

Comments Sections 3.1.2 and 3.1.4. 

4.2 	 If renewable fuel is produced (or imported) and sold as motor vehicle fuel, what 

happens if it is actually used in a heater or boiler? What if, instead of a heater or 

boiler, the fuel is actually used in a non-road vehicle? 

A: 	 Renewable fuel is defined as “motor vehicle fuel” and does not include 

fuel used in heaters and boilers or in non-road vehicles. However, due to 

19
 
the operation of reasonable presumptions, RINs may be generated for fuel 

that is ultimately used in a heater, boiler or non-road vehicle, and use of 

those RINs for compliance purposes depends on the circumstances. 

If a producer or importer transfers fuel to another party with the intent or 

expectation that it will be used in a heater, boiler or non-road vehicle, the 

producer or importer cannot generate RINs for that volume. Likewise, 

fuel used onsite in a boiler or heater by a renewable fuel producer or 

importer is not a renewable fuel in the context of the RFS program, and 

thus no RINs can be generated for that volume. 

However, if a producer or importer transfers fuel to another party with the 

intent or expectation that it will be used as a motor vehicle fuel, and such 

fuel otherwise meets the definition of “renewable fuel,” RINs will 

legitimately be generated to represent that volume. Nevertheless, it is 

possible that the fuel would subsequently be used in a heater, boiler, or 

non-road vehicle. Since such fuel is not considered motor vehicle fuel or, 

therefore, renewable fuel, in general the RINs generated to represent that 

fuel should be not be used for RFS compliance purposes. If the party who 

used the renewable fuel in a heater, boiler or non-road vehicle did not 

receive RINs with the renewable fuel (for example, if RINs were separated 

from the fuel upstream), we would not require any further action from the 

party who used the renewable fuel in a heater or boiler and the separated 

RINs could be used for compliance purposes by the upstream party that 

separated them or to whom they were transferred, provided that they were 

not aware that the fuel would ultimately be used in a heater, boiler or nonroad vehicle. However, if the party that used the fuel in a heater, boiler or 

non-road vehicle received assigned RINs with that fuel, the party cannot 

use the RINs for compliance purposes or transfer those RINs to any other 

party. Such RINs would be considered “invalid” under regulation 

Sections 80.1131(a)(6) and 80.1101(d)(5) and should be retired according 

to 80.1129(e). 

4.3 	 Can an oxygenate blender separate RINs from batches of renewable fuel and 

participate in trading? 

A: 	 Yes, if the blender actually blends renewable fuel that it owns into 

gasoline or diesel. Separated RINs then become unassigned RINs that can 

be traded without renewable fuel. See regulation Section 80.1129(b)(2). 

See also questions 3.1 and 3.2. 

4.4 	 A refinery can produce non-ester renewable diesel by processing renewable 

feedstock through a distillate hydrotreater. In this situation, the refinery must 

assign RINs based on the feed volume. The refiner is then both an obligated party 

and a renewable fuel producer and as such can separate the RIN immediately. Is 

this correct? 

20
 
A: 	 Yes, since under regulation Section 80.1129(b)(1) all obligated parties 

must separate RINs from batches they own. However, an obligated party 

can only separate RINs that it generates from volumes of renewable fuel if 

the number of gallon-RINs separated is less than or equal to its annual 

RVO. See regulation Section 80.1129(b)(6). 

4.5 	 Do we have to keep some type of spreadsheet listing the assigned RINs and the 

"flipping" of the K code to designate that we stripped them? 

A: 	 Under the regulations at Section 80.1151, a party that separates RINs 

from volumes of renewable fuel is subject to certain recordkeeping 

requirements. There is no specific recordkeeping requirement to show the 

timing or conditions under which the K code for a RIN was changed from 

1 to 2. However, RINs received with a K code of 1 that were separated by 

a party should be reported with K codes of 2. The format of records (e.g. 

spreadsheets versus paper records) is left to the discretion of the party. 

4.6 	 Since they receive 1.5 RINs per gallon, can a biodiesel plant separate the RIN 

from a physical gallon? 

A: 	 No. Producers and importers of renewable fuel must assign all RINs 

generated to renewable fuel, and transfer those RINs when transferring 

volumes of renewable fuel to another party. See section 80.1126(e)(1) of 

the regulation. There are limited exceptions to this rule that do not apply 

to biodiesel, including the exception for producers or importers of 

cellulosic biomass ethanol or waste-derived ethanol. See section 

80.1126(e)(4) and the response to Question 2.6. 

4.7 	 I am a small refiner who is exempt from meeting the standard. Am I allowed to 

separate RINs from batches of renewable fuel? 

A: 	 Exempt small refiners and refineries are not obligated parties. As a 

result, they cannot separate assigned RINs from volumes of renewable fuel 

upon ownership of the renewable fuel. However, if the exempt small 

refiner/refinery blends renewable fuel into gasoline or diesel, they are 

operating as a blender and can separate the RINs associated with the 

renewable fuel added to the blended product. A small refiner/refinery that 

waives its exemption becomes an obligated party and must also separate 

assigned RINs from volumes of renewable fuel upon ownership. 

4.8 	 If I import ethanol for someone else, and they blend the ethanol into gasoline, do I 

get the RINs? 

A: 	 In general, all rights and responsibilities under the RFS program that are 

tied to renewable fuel are based on ownership of fuel, not custody. Thus if 

21
 
you own the ethanol even though another party blends it into gasoline, 

then you would separate the RINs associated with the ethanol and would 

retain or transfer them to another party depending on the situation. If, 

however, your involvement was only to physically supply the ethanol while 

never taking ownership of it, then you would not own the RINs and could 

not separate them upon blending - that would be the responsibility of the 

owner of the ethanol. 

4.9 	 At our terminal, we transfer ownership of ethanol to our customers 

simultaneously with blending that ethanol into gasoline. Who owns the RINs? 

A: 	 A RIN assigned to a volume of renewable fuel is separated by the party 

that owns that volume of renewable fuel at the time of blending. If a 

downstream customer is the owner of the volume of renewable fuel when it 

is blended into gasoline or diesel, he will own the separated RINs and be 

subject to all the registration, recordkeeping, and reporting requirements. 

In the case of a blender and a downstream customer who might both lay 

claim to the right to separate any assigned RINs, these two parties would 

need to come to agreement between themselves regarding which party will 

own the separated RINs. 

4.10 	 Are refiners required to separate RINs from renewable fuel? If a refiner doesn't 

want the RINs, why can't he just let the blender have them? 

A: 	 Obligated parties are required to separate a RIN from a volume of 

renewable fuel if they take ownership of that volume. See regulation 

Section 80.1129(b)(1) and the limited exception in regulation Section 

80.1129(b)(6). The requirement to separate RINs, rather than merely 

giving obligated parties the right to separate RINs, is intended to promote 

the availability of RINs on the open RIN market. Given that most ethanol 

is consumed in the midwest, the program is intended to promote access to 

RINs by obligated parties elsewhere that may lack access to renewable 

fuel. 

An obligated party that separates a RIN from a volume of renewable fuel 

has the option of transferring that RIN to a blender in parallel with a 

transfer of renewable fuel. However, in this case, the RIN would be an 

unassigned RIN with a K code of 2, and would be transferred on a PTD 

separate and independent from that used to transfer the renewable fuel. 

4.11 	 I am a marketer and a blender. If I receive 10,000 RINs with 10,000 gallons of 

ethanol that I buy from a producer, can I sell 5000 gallons without RINs and 

blend 5000 gallons but, in essence, give (from me as a marketer) all 10,000 RINs 

to me (as a blender)? 

22
 
A: 	 Yes, under section 80.1128(a)(4) of the regulation, you may transfer 

anywhere from zero to 2.5 assigned RINs with each gallon of renewable 

fuel transferred to another party. We interpret the regulations to also 

allow a party that is both a marketer and a blender of renewable fuel to 

blend renewable fuel with zero to 2.5 RINs per gallon. Therefore, 

referring to your example, you may transfer 5000 gallons of renewable 

fuels to others with zero RINs. You may also blend 5000 gallons of 

renewable fuel with 2.5 assigned RINs per gallon. Upon blending the 

renewable fuel, the assigned RINs must, pursuant to section 

80.1129(b)(2), be separated and may be traded separately. At the end of 

the quarter, you will have met your inventory obligations under section 

80.1128(a)(5), since all the assigned RINs associated with the original 

10,000 gallons will have become separated, and you will own no more 

assigned RINs than your renewable fuel inventory (which is zero in your 

example). 

4.12 	 If a marketer purchases E100 or B100 and becomes the blender, does he retain the 

RIN? Can that marketer trade those RINs on the open market? What other 

purpose would those RINs serve the marketer if they cannot be traded? 

A: 	 A party that converts renewable fuel such as B100 or E100 (which in 

reality will be E95 due to the presence of a denaturant) into motor vehicle 

fuel through blending with conventional gasoline or diesel must separate 

the RINs associated with the renewable fuel. See regulation Section 

80.1129(b)(2). The blender must change the K code in the RINs from 1 to 

2 to re-designate the RINs as unassigned RINs which can be freely traded 

without renewable fuel. 

4.13 	 Under regulation at Section 80.1129(b)(6), if an obligated party generates some 

RINs, his RVO determines the maximum number of self-generated RINs that he 

can separate. However, the RVO isn't determined until the end of the year while 

the separation of RINs occurs throughout the year. Will EPA consider it a 

violation if an obligated party separates too many self-generated RINs because he 

overestimated his RVO in the middle of a year? 

A: 	 Yes. Obligated parties should take into account the uncertainty in RVO 

estimates prior to the end of the year. However, if an unforeseen 

disruption to gasoline production results in a refiner's estimated RVO 

being significantly different from its actual RVO, EPA may consider 

extenuating circumstances in exercising enforcement discretion. 

4.14 	 If a company imports gasoline into the 48 contiguous United States, then it is an 

obligated party. If the company also imports renewable fuel (e.g. ethanol), then it 

generates RINs. For purposes of this question, assume that the company separates 

RINs by blending the ethanol into its own imported gasoline. The company can 

23
 
only separate RINs that it generates up to the level of its RVO. Assuming the 

company imports much more ethanol than gasoline, its RVO will be much smaller 

than the number of RINs it generates. What happens to the RINs the company 

cannot separate? 

A: 	 RINs that cannot be separated by the company per regulation section 

80.1129(b)(6) can be transferred with volumes of ethanol when the 

company transfers that ethanol to another party. This is consistent with 

the requirements applicable to parties that only import ethanol: such 

parties cannot separate any RINs they generate for imported volumes, and 

must transfer those RINs when the party transfers ethanol to the next 

owner. (Also see Question 3.14.) 

4.15 	 The following is a two-part question: 

a. We are a blender. If we purchase a load of B100 (100% biodiesel) over 

the quarter and sell 200 loads of B5 (5% biodiesel), what is the easiest way for us to 

complete the RIN activity report as it relates to separation of RINs? 

A: 	 Please refer to the RFS Activity Report, Form Number RFS0100, posted at 

http://www.epa.gov/otaq/regs/fuels/rfsforms.htm. Detailed instructions 

for completing the form are available on our website. 

b. Our quarterly report would indicate the purchase of the load of B100. 

What if we decide to blend 50% of that B100 with dyed (non-road) diesel. How do we 

document the retirement of those RINs? 

A: 	 Retirement of those RINs is part of the information supplied on both the 

RFS Activity Report, Form Number RFS0100 and the RIN Transaction 

Report, Form Number RFS0200. Detailed instructions for completing the 

form are posted at http://www.epa.gov/otaq/regs/fuels/rfsforms.htm. 

4.16 	 Should a biodiesel blender who blends B5 into diesel for a party that they know 

will use it for a non-road use separate or retire the associated RINs? 

A: 	 The RINs should be retired. Renewable fuel is defined as “motor vehicle 

fuel,” and does not include fuel intended for non-road uses. Also refer to 

the Question 4.2 and our response. 

24
 
5. 	 Market for separated RINs 

5.1 	 Will non-obligated parties in possession of RINs create a RIN shortage? 

A: 	 The in-use production volumes of renewable fuel are expected to exceed 

the requirements of the RFS program by a substantial margin. As a result, 

we expect there to be a surplus of RINs for at least the first few years of 

the program, and this surplus means it is highly unlikely that nonobligated parties could acquire and retain enough RINs to cause a 

shortage. In addition, we expect refiners and other obligated parties to 

take ownership of renewable fuel with assigned RINs directly from 

producers in a majority of cases. Nevertheless, EPA will monitor 

program implementation to ensure that RINs that have been generated are 

making their way to the obligated parties that need them. 

5.2 	 If blenders either opt not to trade or are not allowed to trade, who will be 

responsible for tracking these RINs through the system? 

A: 	 The blender must submit quarterly RIN transaction reports to EPA that 

will document all RIN transactions, including RIN purchases, RIN sales, 

and expired RINs. RINs that are reported purchased and thereafter are 

not sold will be identifiable through these reports. See regulation Section 

80.1152(c). 

5.3 	 Which non-obligated parties are allowed to participate in the credit trading 

program? Producers (with extra value RINs), oxygenate blenders, marketers? 

A: 	 Anyone can participate in the RIN trading program, subject to the 

requirement that the party first register with the EPA and then adhere to 

other regulatory requirements, including submitting required reports 

(such as quarterly reports on RINs held). 

5.4 	 Can RINs at a plant expire? Or does expiration only refer to RINs held by 

obligated parties? 

A: 	 Expiration of a RIN is tied to the amount of time that has elapsed since the 

RIN was generated by the producer and not to who owns the RIN. RINs 

are valid for compliance purposes for the compliance year in which they 

were generated (i.e. the YYYY code in the RIN) or the following year. No 

matter who owns a RIN at the end of its valid life, it expires if it is not used 

for compliance purposes for the year generated or the following year. See 

regulation Section 80.1127(a)(3). Since non-obligated parties (other than 

renewable fuel blenders) must transfer assigned RINs with renewable fuel 

25
 
(see section 80.1128(a)(3)-(5)), it is expected that most RINs that expire 

will do so in the hands of obligated parties and renewable fuel blenders. 

This question raises the associated issue of when a RIN is generated. 

RINs are generated when a batch is created by the producer and are 

assigned when the batch is transferred. See section 80.1126(d)-(e) of the 

regulation. Since when a batch is created is entirely under the control of 

the producer, we expect that producers will create batches in a timely 

manner that will not result in their expiration prior to their transfer to 

downstream parties. 

5.5 	 A RIN generated in 2007 is valid for compliance purposes for both 2007 and 

2008, but obligated parties are given until February, 2009 to demonstrate 

compliance for 2008. How do they use a 2007 RIN that expired at the end of 

2008 for compliance purposes if they don't acquire that 2007 RIN until January of 

2009? 

A: 	 The expiration date of a RIN refers only to the calendar year for which it 

can be used for compliance. There is no limitation or expiration date for 

trading purposes other than the deadline for the obligated party's annual 

compliance demonstration report. Thus a RIN generated in 2007 can 

continue to be traded in 2009, but if acquired in 2009 by an obligated 

party it could only be used for a 2008 compliance demonstration. 

5.6 	 Who reports expired RINs? 

A: 	 Every party must report RINs owned that have expired as of the end of the 

fourth quarter of each year. This report is due on February 28 of the 

following year and will identify RINs that expired in the fourth quarter of 

the previous calendar year. Since RINs always expire at the end of a 

calendar year, all expired RINs will be reported. 

Since obligated parties have until February 28 to submit their annual 

compliance demonstrations to EPA (or, for 2007 compliance only, May 

31), we allow RINs to be traded between January 1 and February 28 even 

if they were generated two year previous. This means that RINs that are 

reported by a party as expired on December 31 can still be transferred to 

another party after December 31. Designating a RIN as expired is only a 

means of categorizing the RIN and does not mean that the RIN has been 

relinquished, frozen, or surrendered to the EPA. Since this requirement 

may cause some confusion, we intend to promulgate a technical correction 

to the RFS rule to eliminate the requirement that RINs be reported as 

"expired." 

5.7 	 Can a non-cellulosic ethanol producer have unassigned RINs? 

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A: 	 Any party can own unassigned RINs (with a K code of 2). However, only 

producers or importers of cellulosic ethanol can designate a RIN as 

unassigned immediately upon generating that RIN. In this case, the 

producer or importer is limited in the number of RINs they can designate 

as unassigned. See regulation Section 80.1126(e)(4). 

5.8 	 A tank of ethanol has become contaminated and must be disposed of. How would 

we treat this situation for RIN reporting under the RFS program? 

A: 	 The RFS regulation envisions various scenarios under which RINs might 

be retired. The reporting section in the regulation names a few examples: 

retirement in satisfaction of enforcement action, spill, and use in a boiler 

or heater. We recognize that there are various other situations where RINs 

may need to be retired. Ethanol that has become contaminated and that 

requires disposal is one such situation where the RINs would be retired. 

The reporting forms contain a field for retired RINs. Reporting forms and 

instructions are now available on our website at 

http://www.epa.gov/otaq/regs/fuels/rfsforms.htm. 

5.9 	 Can anyone own RINs and participate in the RIN market? 

A: 	 There is no restriction on who may own RINs. Anyone can own RINs, 

including private citizens. However, parties who own or intend to own 

RINs must register with us under 80.1150(c) and recordkeeping, reporting 

and attest engagement requirements related to RIN transactions apply. 

See 80.1151(d), 80.1152(c) and 80.1164(c). 

5.10 	 Biodiesel may be blended into non-road diesel or denatured ethanol may be 

blended into gasoline designated for non-road use. How are the RINs retired and 

reported to EPA by the blender? 

A: 	 The blender would report the RIN purchase transaction and then would 

report the RINs as retired when he blends the renewable fuel associated 

with the RINs into the non-road fuel. The appropriate forms to use are the 

RFS Activity Report, Form Number RFS0100, and the RFS RIN 

Transaction Report, Form Number RFS0200. These forms and 

instructions are located on our website at 

http://www.epa.gov/otaq/regs/fuels/rfsforms.htm . Also refer to the 

regulation at sections 80.1152(c)(1)(x) and (c)(2)(xii) for guidance on 

retirement of RINs. In the case of the same RINs transferred, mistakenly 

or otherwise, to two or more parties, all such RINs, by all parties holding 

them, should be reported as retired unless EPA determines that some 

portion of them are valid.. 

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6. 	 Obligated and nonobligated parties 

6.1 	 Are gasoline blenders no longer considered obligated parties? I have seen 

references to gasoline refiners and importers only. Gasoline refiners may also 

serve as blenders. 

A: 	 Any party that produces gasoline (broadly defined at 80.1107(c)) from 

non-renewable feedstocks or blendstocks is an obligated party under the 

RFS program. This would include gasoline blenders unless their sole 

activity is adding renewable fuels to gasoline. See sections 80.1106(a)(1) 

of the regulation. For more information about small refiners, see the 

answer to Question 6.6 below. 

6.2 	 I am a small volume renewable fuel producer, and so should be exempt from the 

requirement to generate RINs and assign them to renewable fuel that I produce. 

Do I need to submit a form to EPA proving that I produce less than 10,000 

gallons a year? 

A: 	 No. Small volume producers are automatically exempt. However, if a 

small volume producer chooses to register as a renewable fuel producer 

under the RFS program, they will be subject to all the regulatory 

provisions that apply to all renewable fuel producers, including the 

requirement to assign RINs to batches. See regulation Section 80.1126(b). 

6.3 	 Who is a renewable fuel producer? Will the EPA recognize ethanol marketing 

companies as producers? Can the term "producer" apply to a marketing company 

who represents various producing plants? 

A: 	 Renewable fuel producers are parties that produce renewable fuel (i.e. 

convert a renewable feedstock into a renewable fuel). RINs must be 

generated by the producer and assigned to renewable fuel by the time title 

to the renewable fuel is transferred from the producer to another party 

such as a marketer. See regulation Sections 80.1126(d)(1) and (e)(2). In 

turn, the marketer must transfer assigned RINs to the party to whom the 

marketing company sells the ethanol. 

Marketing companies who "represent" renewable fuel producers are not 

producers unless the marketing company produces renewable fuel, and 

such a company would only generate RINs for that part of the renewable 

fuel that they actually produced. Ethanol marketing companies that do 

not produce or import renewable fuels are not renewable fuel producers 

or importers and cannot generate RINs. 

6.4 	 Is an ethanol plant that splash blends into gasoline an obligated party? 

28
 
A: 	 If a facility only blends ethanol into gasoline, they are not an obligated 

party and thus do not have a Renewable Volume Obligation (RVO). 

However, they are still regulated parties and are thus subject to the 

registration, recordkeeping, and reporting requirements. 

6.5 The following is a two-part question about the responsibilities of exporters. 

a. 	 We are a foreign company that markets ethanol. We do not produce 

ethanol, nor do we import it into the U.S. What is our obligation when we 

move product (export) out of the U.S.? 

A: 	 Section 80.1130 describes the responsibilities of exporters. Note 

that if any party owns renewable fuel that is exported from the 

region described in 80.1126(a) [currently the 48 contiguous 

United States, although Hawaii has requested to opt in], sufficient 

RINs must be acquired to offset an RVO representing the exported 

fuel. There are also registration, recordkeeping, reporting, and 

attest engagement requirements applicable to exporters, and set 

forth at 40 CFR 80.1150(a), 80.1151(a), 80.1152(a) and 

80.1164(a). 

b. How do we figure out batch and facility numbers for reporting purposes? 

A: 	 Batch numbers are 5-digit numbers that are part of the RIN and 

are described in 80.1125(e). Unless you are an importer or 

producer of renewable fuel, you do not need a facility number. 

Renewable fuel exporters do, however, require a company 

identification number. See 40 CFR 80.1150 (a)&(c). 

6.6 	 We are best described as a "terminal blender" or "terminal refiner." We do not 

operate a distillation tower and we do not process crude oil. We produce gasoline 

from blending components that have been previously certified by another refiner 

and that are not considered "gasoline" under EPA's definition. We produce less 

than 75,000 barrels per day and are not owned or affiliated with anyone else. Are 

we a "small refinery" under the RFS regulation and not an obligated party until 

2011, unless we opt into the program? 

A: 	 No. You are an obligated party now. EPA's definition of "small refinery" 

is identical to the definition used in EPAct, as it was intended to 

implement the EPAct provisions. EPAct clearly treats refineries 

separately from blenders. (See EPAct sections 211(o)(3)(B)(ii)(I) and 

(o)(2)(A)(iii)(I) for examples of this separate treatment.) EPA reads the 

EPAct definition of "small refinery" to specifically exclude entities such as 

yours that produce gasoline solely through blending. 

29
 
6.7 	 We are best described as an “intermediate feedstock processor”. We produce 

gasoline by processing feedstocks (that are derived from crude oil) in processing 

units which are the same as those used in crude oil refineries. We process less 

than 75,000 barrels of feedstocks per day, and are not owned or affiliated with 

anyone else. Are we a "small refinery" under the RFS regulation and not an 

obligated party until 2011, unless we opt into the program? 

A: 	 Yes. EPA's definition of "small refinery" is identical to the definition used 

in EPAct, as it was intended to implement the EPAct provisions. EPAct 

defines a small refinery as a refinery for which the average aggregate 

daily crude oil throughput for a calendar year does not exceed 75,000 

barrels. (See EPAct section 1501(o)(1)(D)). EPA reads the EPAct 

definition of "small refinery" to include refineries that process feedstocks 

derived from crude oil, using processing units which are the same as those 

used in refineries that process crude oil all the way to finished product. 

The crude oil-derived streams are essentially components of crude that 

have been physically separated through distillation, or other processes, 

and require further processing. Refineries that perform this additional 

processing are continuing the crude oil refining process, and EPA 

therefore considers them to be crude oil refineries for purposes of EPAct. 

If the average aggregate throughput of feedstocks at such a refinery is less 

than 75,000 barrels/day, EPA considers the refinery to be a small refinery. 

6.8 	 I am an ethanol marketer and importer, and, although I am not certain, I may 

import gasoline before the end of the compliance year. Can I separate RINs from 

the ethanol that I purchase and import? 

A: 	 In general, we believe that most RFS program participants will know at 

the beginning of the compliance year the nature of their business activities 

for the upcoming compliance period, and therefore will not need to worry 

about the impact of changing roles and responsibilities mid-way through 

the compliance period. However, we understand that there may 

occasionally be parties that did not anticipate becoming obligated parties 

at some point during the compliance period but, in fact, do so. Obligated 

parties must separate all RINs that they receive with purchased renewable 

fuel, and they may separate, up to their Renewable Volume Obligation 

(RVO), RINs that they generate for renewable fuel which they have 

imported or produced. Other parties regulated under the RFS, such as 

renewable fuel producers, importers, and marketers, do not have the same 

obligations. Therefore, if a non-obligated party should become an 

obligated party mid-way through a compliance period without having 

anticipated that such a change of status would occur, the question arises 

as to how that party should handle RINs both before and after their 

change of status. 

30
 
EPA believes that a party who is unsure whether or not they will become 

an obligated party (e.g., by importing gasoline during the compliance 

period) should not act as an obligated party (e.g., by separating RINs 

from renewable fuel) unless and until they know for certain that they will 

become an obligated party. In this way, if the party does not become an 

obligated party during the compliance year, they will not be in violation of 

the RFS regulations that prohibit non-blenders and non-obligated parties 

from separating RINs from renewable fuel (Sec. 80.1128(a)(2)). On the 

other hand, if a party is uncertain that they will become an obligated party 

during the compliance period, they will not be subject to the requirements 

associated with being an obligated party (e.g. the requirement to separate 

RINs) until they are certain of that status during the compliance period. 

However, once a party is certain that they will engage in activities that 

will make them an obligated party within the compliance period, they 

should assume the obligations and requirements associated with obligated 

party status for the remainder of the compliance period. If a party acts as 

an obligated party throughout the compliance period (e.g., separating 

RINs with purchased renewable fuel), that party will be in violation of the 

RFS regulations unless , at some time during the reporting period, they 

meet the definition of an obligated party. 

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7. 	 Renewable Volume Obligations (RVO) 

7.1 	 If a specific refinery is the producer of renewable diesel, I assume they need a 

facility ID number, but we can use the RINs for aggregate company compliance. 

A: 	 Yes. The facility ID number is used to generate the RIN, but the RIN can 

be separated and used for compliance on a company-wide aggregate 

basis, subject to any applicable restrictions in the regulations such as 

regulation Sections 80.1106(c) and 80.1129(b)(6). 

7.2 	 If an ethanol producer imports a truckload of gasoline, they are an obligated party 

and have an RVO. Does this mean that they can separate RINs from all the 

ethanol they produce? 

A: 	 Not necessarily. Obligated parties can only separate RINs they generated 

for renewable fuel they produced or imported up to the level of their RVO. 

They are not allowed to separate additional RINs that they generated. 

However, obligated parties must separate all RINs from renewable fuel 

that they own if they did not generate those RINs. See regulation Sections 

80.1129(b)(1) and (b)(6). 

7.3 	 Who actually calculates the RVO? The refinery or EPA? 

A: 	 Each obligated party calculates the RVO itself, based on its annual 

gasoline volume. See regulation Sections 80.1152(a)(1)(v) and (vi). 

7.4 	 CARBOB doesn't appear in the list of fuels comprising the RVO 

(regulation Section 80.1107). However, in the Preamble, EPA mentions RBOB 

and CBOB. Is CARBOB considered a subset of RBOB? 

A: 	 The regulations include in the list of products to be included in the volume 

used to calculate the RVO "Any gasoline, or any unfinished gasoline that 

becomes finished gasoline upon the addition of oxygenate, that is 

produced or imported to comply with a state or local fuels program." 

CARBOB would fall under this category. See regulation Section 

80.1107(c)(6). 

7.5 	 To whom does the 20% limit on previous year RINs apply? 

A: 	 This limit applies only to obligated parties. Under regulation Section 

80.1127(a)(2), no more than 20% of the gallon-RINs used by an obligated 

party to meet its RVO can be previous-year RINs (having a YYYY code 

that is one year earlier than the year for which the RIN is being used to 

show compliance with an RVO). 

32
 
7.6 	 What happens if, after submitting his annual compliance demonstration report, a 

refiner discovers that he exceeded the 20% cap on the use of previous-year RINs 

in meeting his RVO? Is he required to replace those RINs with new valid RINs at 

the old market price? 

A: 	 Annual compliance demonstrations must include a showing that the RINs 

used to comply with the RVO include no more than 20% previous-year 

RINs. If it is determined that this showing was incorrect due to either a 

mathematical error or the discovery that some of the current-year RINs 

were invalid, or for any other reason, the obligated party must revise the 

compliance demonstration by adding additional current-year RINs to the 

compliance demonstration until the 20% maximum is met. If sufficient 

current-year RINs are not already owned by the obligated party, he will 

need to acquire them through transfers from other parties. If the 

obligated party cannot acquire sufficient additional current-year RINs to 

meet the 20% criterion, he may be able to reduce the number of previousyear RINs used below the 20% level and then carry a deficit into the next 

year. 

If a party discovers an error and must submit a corrected report, it may 

download the appropriate form and instructions from our website at 

http://www.epa.gov/otaq/regs/fuels/rfsforms.htm. There is a field that the 

reporting party marks for resubmissions. 

7.7 	 It appears we are creating an automatic non-compliance period for September, 

2007. If I own ethanol on September 1, 2007, it will not have assigned RINs. As 

an obligated party, I will be blending this ethanol into gasoline at my terminal, but 

I won't be getting any RINs for that ethanol. 

A: 	 It may be the case that some ethanol blended into gasoline at the 

beginning of the program will not have assigned RINs. However, the RVO 

is determined annually, not quarterly or monthly, and in general ethanol 

purchased after September 1, 2007 will have assigned RINs. Obligated 

parties can also acquire RINs in the first few months of 2008 that can be 

used to demonstrate compliance with their 2007 RVO. 

33
 
8. 	 Company and Facility Registration 

8.1 	 When will the EPA registration forms be ready to obtain the plant and facility ID 

numbers? 

A: 	 Registration forms may be submitted any time after May 1, 2007, the 

publication date of the final RFS rules. See regulation Section 

80.1150(a). Registration forms and instructions are linked to our RFS 

page at http://www.epa.gov/otaq/renewablefuels/. Potential registrants 

can fill the form out on the web site, submit it electronically to EPA and 

print out a copy which then must be signed by the responsible corporate 

officer and sent to EPA (directions for sending are on the forms). When 

EPA receives the signed copy of the registration, EPA will email the 

registrant with confirmation of registration and an appropriate ID 

number. 

8.2 	 If my company and facilities are already registered with EPA under another 

program, do I have to register for RFS? 

A: 	 No, but you are responsible for updating your company or facility 

information within 30 days of a change. See regulation Section 

80.76(e)(1). Registration forms and instructions are linked to our RFS 

page at http://www.epa.gov/otaq/renewablefuels/. 

8.3 	 If my company or facility information changes, how do I correct that in the EPA 

registration system? 

A: 	 You are responsible for notifying EPA of any changes to your information. 

You may do so by filing the online registration form indicating that you 

are updating an existing registration, and mailing a printed copy of the 

form to the EPA. 

8.4 	 How will I know that my registration has been processed by EPA? 

A: 	 EPA will provide you with company and facility ID numbers after we have 

received a mailed copy of your registration form(s). Since you need these 

numbers prior to engaging in transactions involving RINs, it is advisable 

to register as early as possible. 

8.5 	 Will third party marketers have different registration forms to complete than 

producers? 

A: 	 No. The registration form for third party marketers is the same form as 

the producer registration form. However, third party marketers are only 

34
 
required to obtain an EPA company identification number and not a 

facility identification number. 

8.6 	 Could a marketing company register as a producer with the EPA to represent 

multiple plants? 

A: 	 No. Each renewable fuel producer must register and is responsible for 

generating RINs (with an exception for some producers/importers that 

produce or import less than 10,000 gallons of renewable fuel each year). 

8.7 	 What business activity should producers and marketers register under? 

A: 	 Producers and marketers should register as RIN owners and, as 

appropriate as an ethanol producer/importer, biodiesel 

producer/importer, and under any other category that applies to them. 

Registration is available on-line at 

http://www.epa.gov/otaq/regs/fuels/fuelsregistration.htm. If a party is 

unsure how to register after reviewing the forms and instructions, we have 

staff who can assist them and their contact information is given on the 

webpage. 

8.8 	 Are plants blending E-85 considered oxygenate blenders? 

A: 	 Such parties should register as RIN owners. See our response to Question 

8.7 regarding availability of registration forms, instructions, and 

assistance. 

8.9 	 Must an importer of renewable fuels register with EPA for each facility that it 

 imports to? 

A: 	 Yes. Such a party should register each import facility or the facility where 

the denaturant is added. See section 80.1150(b) of the regulation. 

8.10 	 What qualifies as a facility for an importer – e.g., the receiving port, the storage 

tank, or both? 

A: 	 In order to be registered, the facility must have a name and a physical 

street address. For example, one cannot register its facility as “Port of 

Baltimore,” but may register a terminal facility located at an address 

within the Port of Baltimore. Registration forms, instructions, and staff 

contacts for assistance are available on our website at 

http://www.epa.gov/otaq/regs/fuels/fuelsregistration.htm. 

8.11 	 If ethanol is imported from Brazil and the denaturant is added in Brazil, does the 

Brazil facility need to register? 

35
 
A: 	 No, but the importer of the ethanol must register. 

8.12 	 Do terminals need to register? 

A: 	 Terminals do not need to register. However, terminals that engage in 

activities that require registration must be registered. For example, if the 

terminal takes ownership of RINs, then it must be registered as a RIN 

owner. 

8.13 	 My plant makes ethanol, but only through recycling contaminated batches of 

existing ethanol ("waste" ethanol), not through fermentation. Do we need to 

register under the RFS program? Are we subject to reporting requirements? 

A: 	 The RINs for the contaminated ethanol should have been retired. 

Assuming they have been, then you would be a renewable fuels producer, 

subject to registration as a producer and responsible for generating and 

assigning RINs. You would also be subject to recordkeeping, reporting, 

and attest engagement requirements Any production claimed as "waste 

derived" would have to undergo certification, including an engineering 

review, under section 80.1155 of the regulation. 

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9. 	 Recordkeeping and Product Transfer Documents (PTDs) 

9.1 	 How is a Product Transfer Document defined? Must it be an invoice, bill of 

lading (BOL), or can it be either? 

A: 	 The regulations do not specify the form of a product transfer document 

(PTD), but do include a list of information that must appear on the PTD. 

See regulation Section 80.1153(a). In the context of the RFS program, 

PTDs must identify a transfer of ownership of a volume of renewable fuel. 

In general this would mean invoices. PTDs would in most cases not 

include a bill of lading, which is used primarily for a transfer of custody 

rather than a transfer of ownership. 

9.2 	 As RINs are transferred, do they have to be attached to a PTD (i.e. printed on a 

BOL), or can they be transferred in an electronic spreadsheet that references a 

PTD? 

A: 	 The RIN must appear in its entirety on PTDs identifying a transfer of 

ownership of a volume of renewable fuel. (In general PTDs would not 

include BOLs, which are used for transfers of custody rather than 

transfers of ownership.) However, the PTD transferring the RINs can be a 

separate and parallel PTD from that used to transfer the renewable fuel to 

which those RINs are assigned. PTDs can be electronic, including 

computer spreadsheets. See regulation Section 80.1153(a)(5). 

9.3 	 If I am an oxygenate blender who purchases directly from a renewable fuels 

producer, RINs are transferred with ownership of the batch. Therefore, I will be 

in possession of the RINs. How will these RINs be accounted for in my records? 

A: 	 You must keep a database of all RINs that you take ownership of at any 

time during a compliance period, and report those RINs to EPA quarterly. 

See regulation Sections 80.1151(d) and 80.1152(c). 

9.4 	 The regulations at Section 80.1151(b)(5) say that producers must keep “records 

related to the production or importation of renewable fuel that the renewable fuel 

producer or importer designates as motor vehicle fuel and the use of the fuel as 

motor vehicle fuel.” What does this mean? 

A: 	 This requirement is limited to cases in which a producer or importer 

wants to separate assigned RINs from a volume of renewable fuel under 

the provisions at regulation Section 80.1129(b)(4). If the renewable fuel 

that the producer or importer produces or imports can be used in its neat 

(unblended) form, it can be designed a motor vehicle fuel without being 

blended with conventional gasoline or diesel. In order to claim the right 

to separate the RINs that have been generated and assigned to such fuel, 

37
 
the producer or importer must retain records demonstrating that the 

renewable fuel has been used as motor vehicle fuel in its neat form. 

9.5 	 Can RIN tracking and transfer be handled completely electronically? If so, can 

we choose the software and the report format? 

A: 	 You may keep the records in any format you wish. However, you must be 

able to provide readable copies to EPA representatives upon request and 

you must retain records and the means to read them for at least five (5) 

years. You must either be able to convert the records to a readable format 

or provide them in a usable electronic or paper format as requested by 

EPA. (For the purpose of reporting, you may use any commercially 

available format or comma delimited-text. Please refer to Section 10 of 

this Q&A document – Reporting and the EPA’s Central Data Exchange.) 

Note that on product transfer documents (PTDs) (which are required 

when ownership of a renewable fuel is transferred to another party), 

certain information may be conveyed to some parties through the use of 

product codes; however, information regarding assigned RINs transferred 

with the renewable fuel must always be included on the PTDs. See 

regulation Section 80.1153(a)(5) and (b). 

9.6 	 If there's a partial gallon on the BOL, how do companies handle rounding when 

tracking RINs? 

A: 	 The number of assigned gallon-RINs being transferred by parties other 

than renewable fuel producers or importers need not correspond exactly 

to the number of gallons being transferred. See regulation Section 

80.1128(a)(4). Thus in general the presence of a partial gallon on a PTD 

will not affect the tracking of RINs. For producers and importers of 

renewable fuel who are required by regulation Section 80.1128(a)(6) to 

transfer a specified number of gallon-RINs with each gallon of renewable 

fuel, partial gallons can be rounded to the nearest whole gallon so long as 

the number of renewable fuel gallons is consistent with the number of 

gallon-RINs. 

9.7 A marketer communicates RINs transferred to a buyer via the invoice. Is it 

possible for the invoice to follow the transfer of title to the buyer by a few days? Must 

the same PTD be used to transfer the RINs and the renewable fuel volume? 

A: 	 The PTD may take the form of an invoice, bill of lading, or other 

document meeting the requirements of section 80.1153 of the regulation. 

The PTD identifying the RINs must be transferred to the buyer on the 

same day as the transfer of title of the fuel. Separate PTDs may be used, 

but the PTD transferring the fuel must reference the PTD transferring the 

RINs. 

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9.8 	 Are PTDs given to third party terminals and pipelines by obligated parties and 

that reflect custody transfers only, required to identify RINs? 

A: 	 No, such PTDs are not required to identify RINs. PTDs consistent with 

80.1153 are required only for transfers of ownership of renewable fuel. 

9.9 	 The RFS regulation requires that, where RINs are transferred via a separate 

document from the PTD used to transfer ownership of the renewable fuel, the 

PTD transferring the fuel must state the number of gallon-RINs being transferred 

and must also have a unique reference to the PTD which is transferring the 

assigned RINs. What does EPA require for a "unique reference?" See section 

80.1153(a)(5)(ii). 

A: 	 There is no EPA-prescribed method for a unique reference. The intent of 

the unique reference is to tie the two PTDs together - i.e., to join the 

records for the volume transaction and the RIN transaction in some 

manner. Some companies who engage in few of these transactions might 

be able to use simple document names as their unique reference. Those 

parties with many of these transactions might incorporate date and time 

or other useful information into their unique reference. Each company is 

in the best position to determine what they need to do. 

9.10 	 We engage in blending and refining and expect to be purchasing RINs separately 

from purchases of renewable fuel. The PTD requirements of section 

80.1151(d)(1) indicate that a PTD is only required when title to a renewable fuel 

is transferred. If so, then what document would be sent to us with RINs 

purchased separately from purchases of renewable fuels? 

A: 	 There is no PTD requirement for transfers of separated RINs, but records 

related to RIN transactions must be kept. The RIN transaction would have 

to be reported and underlying records must be retained. See 

80.1151(d)(3) and 80.1152(c). 

9.11 	 The recordkeeping requirements in section 80.1151 state that we must keep 

records of the parties involved in each transaction, including the transferor, 

transferee, and any broker or agent. What identifiers are required for transferor 

and transferee? Do we need both the EPA issued company and facility ID 

numbers? 

A: 	 For recordkeeping purposes, you want to retain records that help explain 

what appears on your PTDs and in your reports to EPA. This would 

include the name of the party and any applicable EPA issued ID numbers, 

but you may wish to keep additional identifying information in your 

records as well. 

39
 
9.12 	 We sell ethanol by the truck load (870 gallons at a time). Each pick-up is 

considered a transaction, so if a company picks up 20 loads in a day they send us 

20 electronic invoices. Under 80.1128(a)(7)(ii) can we create a new PTD and 

send the company a bill at the end of the day showing 20 pick ups but one total 

each for gallons and RINs? 

A: 	 You could create one PTD, but it would have to be transferred to the 

receiving party on the same day as the transfer of ownership. The single 

PTD would list all the RINs transferred for the day and the 20 invoices 

would also have to reference the single PTD document. 

9.13 	 Is a PTD required for transferring an unassigned RIN? 

A: 	 No. PTDs are not required when transferring unassigned RINs. 

However, PTDs are required whenever there is a transfer of ownership of 

a renewable fuel. Where the fuel is being transferred with assigned RINs, 

then the PTD must include information relating to the RINs. See section 

80.1153 of the regulation. If the renewable fuel is being transferred 

without the RINs, then the PTD must state "no RINs transferred." 

9.14 	 In many cases, no document is created on the date that title of the renewable fuel 

is transferred to the purchaser, which typically is the date the purchaser receives 

the fuel, and an invoice typically is used by the parties to recognize the transfer of 

title to the fuel. The invoice may be created either at the time of shipment or after 

the product is received. Can such an invoice be used to fulfill the product transfer 

documentation requirements under the RFS rule? 

A: 	 The regulations at section 80.1128(a)(7) provide that any RINs assigned 

to a renewable fuel must be recorded on the product transfer document 

used to transfer ownership of the renewable fuel volume to another party, 

or the RINs may be recorded on a separate product transfer document 

transferred to the same party on the same day as the product transfer 

document used to transfer ownership of the volume of renewable fuel. We 

believe, where the parties use an invoice as the document which transfers 

title to a batch of renewable fuel, the product transfer documentation 

requirements in section 80.1128(a)(7) are satisfied where the RINs 

assigned to the fuel are included either on that invoice or on a separate 

document which is transferred to the purchaser on the same day that the 

invoice is transferred. Where a separate document is used, the invoice 

must include the number of gallon-RINs assigned to the fuel and reference 

the document which transfers the RINs. 

9.15 	 We are considering developing a PTD that lists ethanol and denaturant as separate 

items being transferred. RINs would be generated for the entire volume of 

denatured ethanol. If, for example, we transfer 950 gallons of ethanol and 50 

40
 
gallons of denaturant, may we split the gallon- RINs between ethanol and 

denaturant? Or would we only indicate the number of gallon-RINs associated 

with the entire volume of denatured ethanol (i.e., 1000 gallons)? 

A: 	 The RINS should not be split between ethanol and denaturant. Section 

80.1153(a) of the RFS rule refers to "the volume of renewable fuel that is 

being transferred" as necessary information for PTDs. Denatured ethanol 

is the "renewable fuel" in your example. It would be incorrect to split the 

RINs between ethanol and denaturant. 

10. 	 Reporting and the EPA's Central Data Exchange (CDX) 

10.1 	 Is the RIN transaction report tracked daily but reported quarterly? 

A: 	 With regard to reporting to EPA, each RIN transaction (i.e., RIN sale or 

purchase, retired or expired RIN) must be reported on a separate RIN 

transaction report. The RIN transaction report for each transaction must 

be submitted to EPA by the end of the second month after the quarter in 

which the transaction occurred. See regulation Section 80.1152(c)and 

(d). The reports for RIN transactions that occurred within a quarter may 

be submitted all together, individually, or in groups at any time, so long as 

the transaction reports for all transactions that occurred during the 

quarter are submitted to EPA by the end of the second month after the 

quarter in which the transactions occurred. With regard to transfer of 

RINs between parties, such transfers must be included on some type of 

product transfer documentation as explained in the section of this 

document dealing with Recordkeeping and Product Transfer Documents 

(PTDs). 

10.2 	 For parties that take ownership of assigned RINs and then separate them, do they 

report those RINs with K code of 1 or 2? 

A: 	 The regulations state that, in most cases, (1) a party that is an obligated 

party must separate any RINs that have been assigned to a volume of 

renewable fuel if they own that volume, (2) any party that owns a volume 

of renewable fuel must separate any RINs that have been assigned to that 

volume once the volume is blended with gasoline or diesel to produce a 

motor vehicle fuel, and (3) the party responsible for separating a RIN 

from a volume of renewable fuel shall change the K code in the RIN from 

a value of 1 to a value of 2 prior to transferring the RIN to any other 

party. 

In the case of an obligated party, Company A, that has accepted a volume 

of renewable fuel with an assigned RIN, Company A must change the K 

41
 
code from 1 to 2. However, in a transaction report filed by Company A 

concerning receipt of the RIN, the RIN would be reported with a K code of 

1 (i.e., as it was received). If the RIN is transferred to another party by 

Company A during the reporting period, Company A would report the RIN 

on a transaction report for that transfer with a K code of 2. If the RIN was 

used for compliance, Company A would report the RIN with a K code of 2 

on its annual compliance report. 

In the case of a blender, the RIN would be reported with a K code of 1 for 

the transaction relating to the receipt of the renewable fuel. After the 

blender blends the renewable fuel into motor vehicle fuel, the RIN would 

be reported with a K code of 2 for a transaction relating to the transfer of 

the RIN to another party. 

In EPA’s reporting instructions, it will be made clear how a party should 

report the K code for any given report. 

10.3 	 What is the process to retire a RIN? Is this a reporting function that is done with 

the EPA? 

A: 	 RINs are retired for reasons specified in the regulations and must be 

reported to EPA. A retired RIN may not be used for compliance purposes 

or traded to another party. A retired RIN is reported to EPA in a RIN 

transaction report and the total number of RINs retired during a quarter is 

reported to EPA in the gallon-RIN activity report. A RIN transaction 

report that reports a retired RIN must describe the reason for retiring the 

RIN. Potential reasons include reportable spills under regulation Section 

80.1132, import volume corrections under regulation Section 

80.1166(e)(2), renewable fuel used in boiler or heater under regulation 

Section 80.1129(e), RINs that are invalid (other than expired RINs) or 

RINs required to be retired in the context of an enforcement action. For 

reporting requirements, see regulation Section 80.1152. 

10.4 	 I haven’t seen a reference to the EPA CDX system. Is the CDX system already 

established or can we submit reports in our choice of electronic formats? 

A: 	 The Central Data Exchange (CDX) is an established portal through which 

electronic data are submitted. All registered parties will have to first 

register with CDX in order to receive a CDX registration number. A link 

to the CDX web site will be provided from our RFS web site at 

http://www.epa.gov/otaq/renewablefuels. RFS reports can be produced by 

vendor software or by using spreadsheet templates or other data templates 

following instructions linked to the RFS web site. 

10.5 	 Do I have to register to use CDX and is this a separate registration process? 

42
 
A: 	 You will have to register with CDX. (Registering with CDX is not the 

same as registering under regulation Section 80.1150.) Instructions are 

available via our RFS web page at 

http://www.epa.gov/otaq/renewablefuels/. 

10.6 	 When will the template report forms for all of the RFS-required reports be 

available; will these be posted on the website? 

A: They are available now at http://epa.gov/otaq/regs/fuels/rfsforms.htm. 

10.7 	 If you have a spill, does the K code change to 2 for the spilled volume? 

A: 	 No, the K code is not changed as the result of a spill. (Refer to section 

80.1132 of the regulation regarding retirement of RINs due to a spill.) 

10.8 	 What recordkeeping and reporting requirements do exempt small refineries and 

small refiners have? 

A: 	 Exempt small refineries and small refiners have no recordkeeping and 

reporting requirements until 2011, unless they choose to own RINs. 

10.9 	 Is there any benefit to aggregating refineries for reporting purposes? 

A: 	 Aggregation does not provide any “advantage” under our regulation. 

Whether or not to aggregate refineries for reporting purposes is a 

practical decision that we have left up to the individual companies. For 

example, some companies have one integrated recordkeeping and 

reporting system for all their refineries, whereas others do not. 

10.10 	 If a transaction must be reversed for some reason, does the reversal have to track 

specific RINs or will fungible RINs work? How is this reported? 

A: 	 The original transaction (involving the specific RINs) should be nullified 

and, if already reported to EPA, corrected reports should be submitted. If 

discovered prior to being reported to EPA, then all associated records 

must be corrected. If a transaction must be reversed for any reason, then 

PTDs must be corrected and must track the specific RINs. 

10.11 	 What happens if a party registers with EPA then engages in no activities that must 

be reported during a given compliance period?

 A: 	 There is no obligation to report if no activity occurs. 

43
 
10.12 	 If an obligated party (a refiner) imports non-denatured ethanol and denatures it, is 

the refiner considered a renewable fuel producer and is the refiner obligated to 

establish RIN numbers and file quarterly reports for the ethanol it denatures? 

A: 	 The party would be identified as a renewable fuel importer rather than a 

renewable fuel producer, and would need to establish RIN numbers and 

file reports required of an importer. The party in this example would 

also be required to file reports required of a refiner. 

10.13 Is it correct that an obligated party must still file the quarterly RIN activity report 

even though all RINs held are separated (or unassigned, with a K code of 2)? 

A: 	 Yes. Although obligated parties are not subject to the end-of-quarter 

check described in regulation Section 80.1128(a)(5) (because all RINs 

become unassigned immediately upon ownership by an obligated party), 

they must still report all of their RIN activities quarterly, including RIN 

purchases and sales. See regulation Section 80.1152(c). 

10.14 	 Does a plant have to have their EPA-issued company ID number before they 

register for CDX? 

A: 	 Yes, this ID will be necessary to complete the CDX registration process. 

You may look up your company ID number at 

http://epa.gov/otaq/regs/fuels/rfs-list.xls (in Excel spreadsheet format). 

10.15 	 Where a company is both an obligated party and an importer of renewable fuel, 

the company will generate RINs in its importer capacity and separate the RINs 

from the volume of imported fuel in its capacity as an obligated party. Is this 

activity considered a “transfer” for purposes of submitting a RIN transaction 

report under the RFS program? 

A: 	 No transaction report is required for internal company transfers as all 

RINs are owned at the corporate level. The company would submit a RIN 

generation report for the RINs it generated for the imported renewable 

fuel and a compliance demonstration report to demonstrate compliance 

with its RVO. The company would also submit a quarterly gallon-RIN 

activity report. 

44
 
11. Other Questions 

11.1 	 What entity retires the RIN if the same RIN is mistakenly transferred to two or 

more parties? Does the plant retire the RIN? Does the EPA have to be notified? 

A: 	 Where a RIN is invalid because the same RIN was transferred to two or 

more parties, all such RINs are deemed invalid unless EPA determines 

that some portion of them is valid. See regulation Section 80.1131(b)(4). 

In the absence of such determination by EPA, all parties with such RINs 

must under regulation Section 80.1131(b)(2), adjust their records, reports 

and compliance calculations as necessary to reflect the deletion of the 

invalid RINs. “Deletion” refers to annual compliance reports since an 

invalid RIN cannot be used to show compliance. In the case of RINs 

transferred to two or more parties, all such RINs, by all parties holding 

them, should be reported as retired unless EPA determines that some 

portion of them are valid. 

11.2 Regulation Section 80.1131(b)(4) states that, in the event that the same RIN is 

transferred to two or more parties, “all such RINs will be deemed to be invalid, 

unless EPA in its sole discretion determines that some portion of these RINS is 

valid”. What’s the process to determine if a portion of RINs are valid? 

A: 	 In many circumstances, EPA will be able to determine whether any of the 

RINs (or particular gallon-RINs within a batch-RIN) are valid from the 

information submitted to EPA in the RIN generation and transaction 

reports. Through these reports, it is possible to track a RIN from the point 

of generation by the renewable fuel producer or importer through each 

transaction until the RIN is used for compliance, retired or has expired. If 

EPA determines that a RIN is invalid, EPA would contact the submitter of 

the report(s) with the invalid RIN and advise the party how to proceed. 

11.3 	 If a party buys a batch of ethanol, and through testing determines that the ethanol 

is synthetic (non-renewable), what happens to the RINs? 

A: 	 If a volume of renewable fuel for which RINs have been generated is found 

to not be a valid renewable fuel under the RFS program, then the 

associated RINs are likewise deemed invalid. See regulation Section 

80.1131. If a party determines that a batch of fuel that they own does not 

meet the definition of renewable fuel under the RFS program, the RINs 

received with such fuel must be deleted from records, reports and 

compliance demonstrations. See regulation Section 80.1131. In general, 

RINs received with such fuel must be reported as retired and such invalid 

RINs must be deleted from any compliance reports. Parties that learn of 

such a situation should promptly inform EPA. EPA will investigate the 

source of the fuel and take appropriate action. 

45
 
11.4 	 What metering system does the plant use to measure gallons? Is it a production 

meter, a load-out meter, etc.? 

A: 	 EPA regulations provide flexibility in terms of the specific mechanisms 

through which producers and importers measure volumes for purposes of 

generating RINs. However, the approach should ensure that gallons are 

neither systematically ignored nor systematically double-counted. Also, 

approaches that provide consistent volumes for both the RFS program and 

other contexts such as reporting to the Energy Information Administration 

are preferred. 

11.5 	 Are only owners of small refineries as of January 1, 2004 allowed to claim the 

small refinery exemption? If so, how is this date justified? 

A: 	 Only owners of small refineries as of January 1, 2004 are eligible, As 

explained in the preamble (see 72 FR 29525)EPA believes that small 

refinery eligibility should be based on 2004 data rather than on 2005 

data, since it was the first full year prior to passage of EPAct. In addition, 

some refineries' production may have been affected by Hurricanes Katrina 

and Rita in 2005. 

11.6 	 How is the small refinery verification letter structured? 

A: 	 The structure of the letter is left up to the individual. The letter must 

address the items in section 80.1141(b)(2) of the regulation. 

11.7 	 What is the estimated value of a RIN? 

A: 	 There is no way to estimate the “market value” of a RIN, as this will be a 

changing value and entirely determined by the marketplace. 

11.8 	 What mechanisms exist to suspend RFS program requirements, should renewable 

supply be limited due to natural disasters? 

A: EPAct contains a provision to address unforeseen circumstances that may 

occur which result in a shortage of renewable fuel and available RINs and 

we believe that the statutory provision is sufficient to address unforeseen 

circumstances that may occur on a nationwide or regional scale. 

Specifically, EPAct provides that on petition by one or more States, EPA, 

in consultation with the Departments of Agriculture and Energy, may 

waive the required aggregate renewable fuels volume obligation in whole 

or in part upon a sufficient showing of economic or environmental harm, 

or inadequate supply. As explained in the preamble to the rule (see 72 FR 

46
 
23927) the RFS rule is a flexible program that permits trading of RINs 

and deficit carryovers. 

11.9 	 Which market indicators will cause EPA to change the RFS standard? 

A: 	 EPA will use information from the Energy Information Agency (EIA) that 

projects volumes of gasoline and renewable fuel in order to calculate the 

standard. Please refer to section 80.1105 of the regulation. 

11.10 	 Since ethanol use is expected to surpass the mandated EPAct levels, is there any 

mechanism available to EPA to allow compliance on a national collective basis, 

as was done under the 2006 default rule? 

A: 	 No. The Energy Policy Act included a specific default provision for 2006 

that was to go into effect if the RFS program regulations were not in 

place. That provision was expressed in general terms, allowing EPA to 

structure the program for 2006 on a national collective basis. The statute 

has much more specific requirements for subsequent years. We are 

required to calculate the annual standard as explained in section 80.1105 

of the regulation. Also see the answer to Question 11.9. 

11.11 	 How do refiners meet blend mandates on the unleaded fuel sold to a wholesaler 

where the ethanol is blended at a fuel terminal? 

A: 	 The RFS program does not directly mandate blending. Instead, it requires 

only that obligated parties such as refiners acquire sufficient RINs to 

offset their Renewable Volume Obligation (RVO). Refiners can purchase 

ethanol, separate and retain the RINs, and then provide the ethanol to a 

terminal for blending. However, in the context of the RFS program, the 

refiner need not track ethanol to the point of blending. If a refiner, as an 

obligated party, wishes to utilize RINs acquired by an oxygenate blending 

facility, the refiner could negotiate a contract with the oxygenate blender 

(wholesaler in the question above) to acquire those RINs. 

11.12 	 We are an association. Many of our members are blenders who are small and 

who find the attest engagement (audit) requirement difficult and expensive to 

comply with. We would like to engage a CPA who would be able to perform the 

required review of our members' records, in hopes of generating a cost savings to 

them. The following two part question is related to our handling of reporting and 

attest engagements on behalf of our members: 

47
 
a. Could we become the delegated authority for submission of reports on behalf 

of our members? 

A: 	 Individual blenders could rely on your association to submit reports to 

EPA on their behalf. . However you should understand that if any reports 

are not submitted or are submitted improperly then responsibility would 

fall upon the individual blender. 

b. Could we hire a CPA and pay for the annual attest engagements for our 

members? 

A: 	 We also believe it may be appropriate for individual blenders to pay for 

CPA services through their association and recognize that this may result 

in a cost savings to them. Section 80.125(a), which is referenced by 

80.1164, says: "Any [blender] subject to the [attest] requirements shall 

engage an independent certified public accountant...." Although his 

provision could be read to require that a blender must have a contract 

with the CPA, EPA believes that the purpose of the attest requirements is 

that an attest is performed by an independent CPA that is given access to 

all necessary records, and in turn submits a report to EPA. Whether the 

association or the blender pays the CPA is unimportant to EPA and if the 

association is capable of making a more cost-effective deal on behalf of its 

members, we believe that is appropriate. However you should understand 

that if the attest engagement is not performed or is performed improperly, 

responsibility would fall upon the individual blender (ie., the regulated 

party). 

11.13 	 Section 80.1164(a)(1)(ii) of the regulation states that the CPA conducting the 

attest engagement must obtain documentation of any volumes of renewable fuel 

used in gasoline during the reporting year; compute and report as a finding the 

volumes of renewable fuel represented in these documents. What does this mean? 

A: 	 This provision is intended to require the CPA to include in his or her 

report any volume of renewable fuel actually used in gasoline produced at 

the refinery or imported by the importer, but is not intended to include 

renewable fuels added at a terminal downstream. The requirement is part 

of the attest engagement because renewable fuels are to be excluded from 

the volume of gasoline used to determine the refiner's or importer's RVO. 

11.14 	 What are the requirements for using an internal auditor for purposes of fulfilling 

the attest engagement requirement under the RFS rule rather than hiring a CPA? 

A: 	 The applicable regulations are in 40 CFR 80.125(d), which is referenced 

together with other general attest engagement requirements in Section 

80.1164 of the RFS regulations.. This section provides that the attest 

48
 
requirement may be completed by an employee of the party if the 

employee: 1) is an internal auditor certified by the Institute of Internal 

Auditors, Inc. (“CIA”); and 2) the CIA completes the internal audit in 

accordance with the Codification of Standards for the Professional 

Practice of Internal Auditing. The Codification of Standards is written 

and published by the Institute of Internal Auditors, Inc., 1989, 

Identification Number ISBN 0-89413-207-5. 

49
 
12. Examples of RIN generation, assignment, and transfer 

All examples use fictional names, company IDs, and facility IDs. 

Example RIN codes have been separated by hyphens for clarity. 

12.1 Examples of renewable fuel producers and importers 

Example A-1 

September 1: Producer Jones makes 2000 gallons of denatured ethanol from corn in 

2007. He stores all 2000 gallons in a tank. 

September 2: Producer Jones generates 2000 gallon-RINs to represent the 2000 gallons. 

Equivalence value of 1.0 x 2000 gallons = 2000 gallon-RINs 

 Batch-RIN: 1-2007-1234-12345-00001-10-2-00000001-00002000 

September 3: Producer Jones sells 2000 gallons to Marketer Smith. 

Producer Jones uses a single PTD to transfer the volume and also transfer 

assigned 2000 gallon-RINs, summarized in a single batch-RIN. 

Example A-2 

September 4: Producer Jones makes another 3000 gallons of denatured ethanol from 

corn in 2007. As the ethanol is being metered into a tank, he generates 3000 

gallon-RINs to represent the 3000 gallons. 

Equivalence value of 1.0 x 3000 gallons = 3000 gallon-RINs 

 Batch-RIN: 1-2007-1234-12345-00001-10-2-00002001-00005000 

September 5: Producer Jones sells 1000 gallons to Marketer Smith. 

Producer Jones uses a PTD to transfer the volume, indicating that 1000 assigned 

gallon-RINs will be transferred in parallel, and containing a unique reference to 

another PTD. 

Producer Jones sends a spreadsheet as the parallel PTD to Marketer Smith later 

on the same day, transferring batch-RIN 1-2007-1234-12345-00001-10-2-

00002001-00003000 

50
 
Example A-3 

September 6: Producer Jones makes another 1000 gallons of denatured ethanol from 

corn in 2007. He stores the 1000 gallons in a tank that already contains 2000 

gallons. 

September 7: Producer Jones sells 3000 gallons to Marketer Smith. 

As the ethanol is being metered into a railcar, Producer Jones generates 1000 

gallon-RINs under a new batch number to represent 1000 gallons. 

Equivalence value of 1.0 x 1000 gallons = 1000 gallon-RINs 

 Batch-RIN: 1-2007-1234-12345-00002-10-2-00000001-00001000 

Producer Jones uses a single PTD to transfer the 3000 gallons and also transfer 

3000 assigned gallon-RINs, summarized in two batch-RINs: 
 

1-2007-1234-12345-00001-10-2-00003001-00005000 
 

1-2007-1234-12345-00002-10-2-00000001-00001000 
 

Example B-1 

September 1: Producer Davis makes 2000 gallons of biodiesel in 2007. 

He stores all 2000 gallons in a tank. 

September 2: Producer Davis makes another 5000 gallons of biodiesel. 

He adds the 5000 gallons to the tank already holding the 2000 gallons. 

September 3: Producer Davis generates 1500 gallon-RINs to represent 1000 gallons. 

Equivalence value of 1.5 x 1000 gallons = 1500 gallon-RINs 

 Batch-RIN: 1-2007-4321-12345-00003-15-2-00000001-00001500 

September 4: Producer Davis sells 1000 gallons to Marketer Johnson. 

Producer Davis uses a single PTD to transfer the volume and also transfer 1500 

assigned gallon-RINs, summarized in a single batch-RIN. 

51
 
Example B-2 

September 5: Producer Davis generates 9000 gallon-RINs under a new batch number to 

represent 6000 gallons of biodiesel that were produced in 2007. 

Equivalence value of 1.5 x 6000 gallons = 9000 gallon-RINs 

 Batch-RIN: 1-2007-4321-12345-00005-15-2-00000001-00009000 

September 6: Producer Davis sells 4000 gallons to Marketer Johnson. 

Producer Davis uses a single PTD to transfer the volume and also transfer 6000 

assigned gallon-RINs, summarized in a single batch-RIN: 

1-2007-4321-12345-00005-15-2-00000001-00006000 

September 7: Producer Davis sells 2000 gallons to Marketer Williams. 

Producer Davis uses a PTD to transfer the volume, indicating that 3000 assigned 

gallon-RINs will be transferred in parallel, and containing a unique reference to 

another PTD. 

Producer Davis sends the parallel PTD to Marketer Williams later on the same 

day, transferring batch-RIN 1-2007-4321-12345-00005-15-2-00006001-

00009000 

Example C-1 

September 1: Producer Brown makes 4000 gallons of denatured ethanol from cellulosic 

biomass in 2007. As the ethanol is being metered into a tank, he generates 

10,000 gallon-RINs in two separate batches to represent the 4000 gallons. 

Equivalence value of 2.5 x 4000 gallons = 10,000 gallon-RINs 

First batch-RIN: 1-2007-5678-12345-00001-25-1-00000001-00005000 

Second batch-RIN: 1-2007-5678-12345-00002-25-1-00005001-00010000 

September 2: Producer Brown sells 1000 gallons to Marketer Miller. 

Producer Brown uses a single PTD to transfer the volume to Marketer Miller and 

also transfer 1000 assigned gallon-RINs, summarized in a single batch-RIN: 

1-2007-5678-12345-00002-25-1-00006001-00007000 

September 3: Producer Brown sells 1500 unassigned gallon-RINs to Broker Wilson 

without ethanol. The PTD includes the following two batch-RINs: 

2-2007-5678-12345-00001-25-1-00000001-00000700 

2-2007-5678-12345-00002-25-1-00007001-00007800 

52
 
Example C-2 

September 4: Producer Brown makes 1000 gallons of denatured ethanol from cellulosic 

biomass in 2007. He stores 500 gallons in one tank, and 500 gallons in another 

tank. 

September 5: Producer Brown generates 2500 gallon-RINs to represent the 1000 

gallons. He adds the gallon-RINs to a pre-existing batch. 

Equivalence value of 2.5 x 1000 gallons = 2500 gallon-RINs 
 

Batch-RIN: 1-2007-5678-12345-00001-25-1-00005001-00007500 
 

Producer Brown sells 2000 gallons to Marketer Miller. 
 

Producer Brown uses a single PTD to transfer the volume to Marketer Miller and 
 

also transfer 3000 assigned gallon-RINs, summarized in a single batch-RIN: 
 

1-2007-5678-12345-00001-25-1-00004501-00007500 

12.2 Examples of marketers and distributors of renewable fuel 

Example D-1 

September 10: Marketer Moore takes ownership of 5000 gallons of denatured ethanol 

with 5000 assigned gallon-RINs in a single batch-RIN: 

1-2007-8765-12345-00022-10-2-00004055-00009054 

September 15: Marketer Moore sells 3000 gallons of ethanol to Blender Taylor without 

any assigned RINs. The PTD states, "No RINs transferred." 

September 30: Marketer Moore verifies that his end-of-quarter gallon-RINs do not 

exceed his end-of-quarter gallons adjusted for their Equivalence Value. 

 5000 gallon-RINs ≤ 2000 gallons x Equivalence Value of 2.5 

 5000 gallon-RINs ≤ 5000 gallons (adjusted) 

53
 
Example D-2 

October 1: Marketer Moore takes ownership of 2000 gallons of biodiesel with 3000 

assigned gallon-RINs in two batch-RINs: 

1-2007-9876-12345-00022-15-2-00002001-00003000 

1-2007-0987-12345-00022-10-2-00012001-00014000 

November 15: Marketer Moore takes ownership of 3000 gallons of denatured ethanol 

with 7500 assigned gallon-RINs in one batch-RIN: 

1-2007-1122-12345-00150-15-2-00001001-00008500 

December 15: Marketer Moore sells 1000 gallons of biodiesel to Blender Taylor with 

1500 gallon-RINs in two batch-RINs: 
 

1-2007-8765-12345-00022-10-2-00004055-00005054 
 

1-2007-9876-12345-00022-15-2-00002001-00002500 
 

December 31: Marketer Moore verifies that his end-of-quarter gallon-RINs do not 

exceed his end-of-quarter gallons adjusted for their Equivalence Value. 

 14,000 gallon-RINs ≤ 5000 gallons x Equivalence Value of 2.5 

+ 1000 gallons x Equivalence Value of 1.5 

 14,000 gallon-RINs ≤ 14,000 gallons (adjusted) 

Example E-1 

January 10: Marketer Anderson takes ownership of 5000 gallons of denatured ethanol 

with 5000 assigned gallon-RINs in one batch-RIN: 

1-2008-6543-12345-00088-10-2-00556701-00561700 

February 20: Marketer Anderson sells 2000 gallons of ethanol to Blender Jackson with 

5000 assigned gallon-RINs: 

1-2008-6543-12345-00088-10-2-00556701-00561700 

March 31: Marketer Anderson verifies that his end-of-quarter gallon-RINs do not 

exceed his end-of-quarter gallons adjusted for their Equivalence Value. 

 0 gallon-RINs ≤ 3000 gallons x Equivalence Value of 2.5 

 0 gallon-RINs ≤ 7500 gallons (adjusted) 

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