Office of Transportation and Air Quality

EPA-420-F-13-005

 January 2013

EPA Issues Notice of Proposed 

Rulemaking to Establish a Voluntary 

Quality Assurance Program for 

Verifying the Validity of Renewable 

Identification Numbers Under the 

RFS Program

I

n today’s action we are proposing to establish a voluntary quality 

assurance program for verifying the validity of Renewable Identification Numbers (RINs) under the Renewable Fuel Standard (RFS) 

program. 

For RINs that have been verified according to an approved quality 

assurance plan (QAP), the proposed program would provide an 

affirmative defense against liability for civil violations under certain 

conditions for the transfer or use of invalidly generated RINs, and 

would specify both the conditions under which invalid RINs must 

be replaced with valid RINs, and by whom. The proposed program 

includes elements to encourage verification of RINs to occur at the 

beginning of 2013.

We are also proposing modifications to the exporter provisions of the 

RFS program to ensure that an appropriate number and type of RINs 

are retired whenever renewable fuel is exported. Finally, we are proposing a number of new regulatory provisions to address RINs that 

become invalid downstream of a renewable fuel producer. 

Regulatory Announcement
Regulatory Announcement

2

Background

The RFS program, which was established under Energy Policy Act of 2005 (EPAct) and subsequently modified through the Energy Independence and Security Act of 2007 (EISA), requires 

that specified volumes of renewable fuel be used as transportation fuel, home heating oil, or 

jet fuel each year. To accomplish this, EPA publishes applicable percentage standards annually 

(for advanced biofuel, biomass-based diesel, cellulosic biofuel, and total renewable fuel) that 

apply based on the sum of all gasoline and diesel produced or imported. RINs are generated by 

renewable fuel producers and importers and represent volumes that meet the requirements for 

renewable fuel under the RFS program. Once RINs have been generated, they can be transferred 

between parties and used by petroleum refiners and importers (“obligated parties”) to show compliance with their volume obligations. Cases of fraudulently generated RINs, however, have led 

to a reduction in the overall liquidity in the RIN market and in smaller renewable fuel producers 

having difficulty selling their RINs. 

Summary of Major Provisions

Today’s action proposes a voluntary third party quality assurance program that could be used to 

verify that RINs have been validly generated. The proposal would provide a recognized means 

for independent third parties to audit the production of renewable fuel and the generation of 

RINs. The proposal contains the following elements:

•	 Minimum requirements for QAPs, including such things as verification of type of feedstocks, verification that volumes produced are consistent with amount of feedstocks 

processed, and verification that RINs generated are appropriately categorized and match 

the volumes produced

•	 Qualifications for independent third-party auditors

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

frequency, site visits, review of records, and reporting

•	 Conditions under which a regulated party would have an affirmative defense against 

liability for civil violations for transferring or using invalid RINs

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

with valid RINs and the timing of such replacement 

•	 Replacement instruments or other mechanisms that would provide assurance that 

invalid RINs are replaced with valid RINs

We are proposing two options that would be available for the verification of RINs through a 

QAP. These options would provide flexibility in how parties choose to manage the risk and costs 

of transferring or using invalid RINs. We are also proposing elements that could be applicable at 

the beginning of 2013.

In addition, we are proposing modifications to the exporter provisions of the RFS program. 

These modifications would help to ensure that an appropriate number and type of RINs are 

retired whenever renewable fuel is exported. 
Regulatory Announcement

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Impacts

The voluntary quality assurance program is intended to improve RIN market liquidity and 

efficiency and improve the ability of smaller renewable fuel producers to sell their RINs. As 

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

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

security benefits of the RFS program.

For More Information

For more information, please visit the RFS website at:

www.epa.gov/otaq/fuels/renewablefuels

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

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