406 For the reasons set forth in the preamble, 40 CFR part 80 is amended as follows:

PART 80—REGULATION OF FUELS AND FUEL ADDITIVES

1. The authority citation for part 80 continues to read as follows:

Authority: 42 U.S.C. 7414, 7542, 7545, and 7601(a).

2. A new subpart M is added to part 80 to read as follows:

Subpart M—Renewable Fuel Standard

Sec. 80.1400 Applicability.

80.1401 Definitions. 80.1402 [Reserved] 80.1403 Which fuels are not subject to the 20% GHG thresholds? 80.1404 [Reserved]

80.1405 What are the Renewable Fuel Standards? 80.1406 Who is an obligated party under the RFS program? 80.1407 How are the Renewable Volume Obligations calculated? 80.1408-80.1414 [Reserved] 80.1415 How are equivalence values assigned to renewable fuel? 80.1416 Treatment of parties who produce or import new renewable fuels and pathways. 80.1417-80.1424 [Reserved] 80.1425 Renewable Identification Numbers (RINs). 80.1426 How are RINs generated and assigned to batches of renewable fuel by renewable fuel producers or importers? 80.1427 How are RINs used to demonstrate compliance? 80.1428 General requirements for RIN distribution. 80.1429 Requirements for separating RINs from volumes of renewable fuel. 80.1430 Requirements for exporters of renewable fuels.

80.1431 Treatment of invalid RINs. 80.1432 Reported spillage or disposal of renewable fuel. 80.1433-80.1439 [Reserved] 80.1440 What are the provisions for blende rs who handle and blend less than 125,000 gallons of renewable fuel per year? 80.1441 Small refinery exemption. 80.1442 What are the provisions for small refiners under the RFS program? 80.1443 What are the opt-in provisions for noncontiguous states and territories? 80.1444-80.1448 [Reserved]

80.1449 What are the Production Ou tlook Report requirements? 80.1450 What are the registration requi rements under the RFS program? 80.1451 What are the reporting requirements under the RFS program?407 80.1452 What are the requirements related to the EPA Moderated Transaction System (EMTS)? 80.1453 What are the product transfer docum ent (PTD) requirements for the RFS program? 80.1454 What are the recordkeeping requirements under the RFS program? 80.1455 What are the provisions for rene wable fuel production facilities and importers who produce or import le ss than 10,000 gallons of renewable fuel per year? 80.1456 What are the provisions for ce llulosic biofuel waiver credits? 80.1457-80.1459 [Reserved] 80.1460 What acts are prohibited under the RFS program? 80.1461 Who is liable for violations under the RFS program? 80.1462 [Reserved] 80.1463 What penalties apply und er the RFS program? 80.1464 What are the attest engagement requirements under the RFS program? 80.1465 What are the additional requirements under this subpart for foreign small refiners, foreign small refineries , and importers of RFS-FRFUEL? 80.1466 What are the additional requireme nts under this subpart for foreign producers and importers of renewable fuels? 80.1467 What are the additional requirement s under this subpart for foreign RIN

owners?

Subpart M—Renewable Fuel Standard

§ 80.1400 Applicability.

The provisions of this subpart M shall apply for all renewable fuel produced on or after April 1, 2010, for all RINs generated on or after April 1, 2010, and for all renewable volume obligations and compliance periods starting with January 1, 2010. Except as provided otherwise in this subpart M, the provi sions of subpart K of this Part 80 shall not apply for such renewable fuel, RINs, rene wable volume obligations, or compliance periods.

§ 80.1401 Definitions.

The definitions of §80.2 and of this section appl y for the purposes of this subpart M. The definitions of this section do not apply to other subparts unless otherwise noted. Note that many terms defined here are common term s that have specific meanings under this subpart M. The definitions follow:

Advanced biofuel means renewable fuel, other than et hanol derived from cornstarch, that qualifies for a D code of 5 pursuant to §80.1426(d).408 Areas at risk of wildfire are those areas defined as w ildland-urban interface in 2000, as depicted and mapped at http://silvis.forest.wisc.edu/Library/WUILibrary.asp.

Biodiesel means a mono-alkyl ester that m eets ASTM D-6751-09, entitled "Standard Specification for Biodiesel Fuel Blendstock (B100) for Middle Distillate Fuels." ASTM D-6751-09 is incorporated by reference. Th is incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR Part 51. A copy may be obtained from the Am erican Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohocken, Penns ylvania. A copy may be inspected at the EPA Docket Center, Docket No. EPA-HQ-OAR-2005-0161, EP A/DC, EPA West, Room 3334, 1301 Constitution Ave., NW, Washington DC, or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 866-272-6272, or go to: http://www.archives.gov/fe deral-register/cfr/ibrlocations.html

.

Biogas means a mixture of hydrocarbons that is a gas at 60 degrees Fahrenheit and 1 atmosphere of pressure that is produced through the conversion of organic matter from renewable biomass or from the processing of renewable feedstocks used to produce renewable fuel. Biogas also includes la ndfill gas and sewage wa ste treatment gas.

Biomass-based diesel means a renewable fuel which qualifies for a D code of 4 pursuant to §80.1426(d) and meets all of the following requirements: (1) It is a transportation fuel or fuel additive. (2) It is intended for use in engines that are designed to run on conventional diesel

fuel. (3) It meets the definition of either biodiesel or non-este r renewable diesel. (4) If the fuel or fuel additive is intended for use in a motor vehicle it must be registered as a motor vehicle fuel or fuel additive under 40 CFR part 79. (5) Renewable fuel that is co-processed w ith petroleum is not biomass-based diesel.

Cellulosic biofuel means renewable fuel derived from any cellulose, hemi-cellulose, or lignin that is derived from renewable biom ass and that qualifies for a D code of 3 pursuant to §80.1426(d).

Cellulosic diesel is any fuel which qualifies for a D code of 7 pursuant to §80.1426(d)

and meets both the definitions of cellulosic bi ofuel and biomass-base d diesel, as defined

in this section 80.1401.

Combined heat and power (CHP) , also known as cogeneration, refers to industrial processes in which byproduct heat that would otherwise be released into the environment is used for process heating and/or electricity production.

Co-processed means that renewable biomass was simultaneously processed with fossil

fuels or other non-renewable feedstock in the sa me unit or units to produce a fuel that is partially renewable.409 Corn oil extraction means the recovery of corn oil from the thin stillage and/or the DGS produced by a dry mill corn ethanol plant, most often by mechanical separation.

Crop residue is the biomass left over from the harv esting or processing of planted crops from existing agricultural land and any biomass removed from existing agricultural land that facilitates crop management (including biomass from such lands in relation to invasive species control or fire management), whether or not the biomass includes any portion of a crop or crop plant.

Cropland is land used for production of crops for harvest and includes cultivated cropland, such as for row crops or close-gr own crops, and non-cultivated cropland, such as for horticultural crops.

Diesel refers to any and all of the products specified at §80.1407(f).

Ecologically sensitive forestland means forestland that is: (1) An ecological community listed in either document entitled "Listing of Forest Ecological Communities Pursuant to 40 CFR 80.1401; S1-S3 communities," or “Listing of Forest Ecological Communities Pursuant to 40 CFR 80.1401; G1-G2 communities,” (available in public docket EPA-HQ-OAR-2005-0161); or (2) Old growth or late successional, characterized by trees at least 200 years in age.

EPA Moderated Transaction System , or EMTS, means a close d, EPA moderated system that provides a mechanism for screening and tracking Renewable Identification Numbers (RINs) as per §80.1452.

Existing agricultural land is cropland, pastureland, and land enrolled in the Conservation Reserve Program (administered by the U.S. Department of Agriculture’s Farm Service Agency) that was cleared or cultivated prior to December 19, 2007, and that, on December 19, 2007, was: (1) Nonforested; and (2) Actively managed as agricultural land or fallow, as evidenced by any of the following records that are traceable to the land in question: (i) Records of sales of planted crops, cr op residue, or livestock, or records of purchases for land treatments such as fertilizer, weed control, or reseeding. (ii) A written management plan for agricultural purposes. (iii) Documented participation in an agricultural management program administered by a Federal, state, or local government agency. (iv) Documented management in accordance with a certification program for agricultural products.

Exporter of renewable fuel means: (1) A party that transfers any renewable fu el to a location outside the contiguous 48 states and Hawaii; and (2) A party that transfers any renewable fuel from a location in the contiguous 48

states or Hawaii to Alaska or a United Stat es territory, unless that state or territory410 has received an approval from the Administr ator to opt-in to the renewable fuel program pursuant to §80.1443.

Facility means all of the activities and equipment associated with the production of renewable fuel starting from the point of deliv ery of feedstock material to the point of final storage of the end product, which ar e located on one property, and are under the control of the same party (or parties under common control).

Fallow means cropland, pastureland, or land en rolled in the Conservation Reserve Program (administered by the U.S. Department of Agriculture’s Farm Service Agency) that is intentionally left idle to regenerate for future agricultural purposes with no seeding or planting, harvesting, mowing, or treatment during the fallow period.

Forestland is generally undevelope d land covering a minimum ar ea of 1 acre upon which the primary vegetative species are trees, includi ng land that formerly had such tree cover and that will be regenerated and tree plantations. Tree covered areas in intensive agricultural crop production settings, such fruit orchards or tree-covered areas in urban settings such as city parks, are not considered forestland.

Fractionation of feedstocks means a process whereby seeds are divided in various components and oils are removed prior to fermentation for the production of ethanol.

Fuel intended for use in an ocean-going vessel means, for this subpart only, fuel allowed by 40 CFR part 80 subpart I to have sulfur content greater than 500 ppm and which is

intended for use in marine vessels. For the period beginning January 1, 2010 through December 1, 2010, distillate fuel is not consid ered fuel intended for use in an oceangoing vessel.

Gasoline refers to any and all of the products specified at §80.1407(c).

Heating oil has the meaning given in §80.2(ccc).

Importers. An importer of transportati on fuel or renewable fuel is: (1) Any party who brings transportation fuel or renewable fuel into the 48 contiguous states of the United States or Hawaii, fr om a foreign country or from an area that has not opted in to the program require ments of this subpart pursuant to §80.1443;

and (2) Any party who brings transportation fuel or renewable fuel into an area that has opted in to the program requirement s of this subpart pursuant to §80.1443.

Motor vehicle has the meaning given in Section 216( 2) of the Clean Air Act (42 U.S.C. 7550(2)).

Neat renewable fuel is a renewable fuel to which 1% or less of gasoline (as defined in Section 211(k)(10)(F) of the Clean Air Act ( 42 U.S.C. 7550)) or diesel fuel has been

added.411 Non-ester renewable diesel means renewable fuel which is all the following: (1) Registered as a motor vehicle fuel or fuel additive under 40 CFR Part 79, if the

fuel or fuel additive is intended for use in a motor vehicle. (2) Not a mono-alkyl ester. (3) Intended for use in engines that are de signed to run on conventional diesel fuel. (4) Derived from nonpetroleu m renewable resources.

Nonforested land means land that is not forestland.

Nonpetroleum renewable resources include, but are not limited to the following: (1) Plant oils. (2) Animal fats and animal wastes, includi ng poultry fats and poultry wastes, and

other waste materials.

Nonroad vehicle has the meaning given in Section 216(11) of the Clean Air Act (42 U.S.C. 7550(11)).

Partial esterification means renewable additive which is all the following: (1) Registered as a motor vehicle fuel or fuel additive under 40 CFR Part 79, if the

fuel or fuel additive is intended for use in a motor vehicle. (2) Not a mono-alkyl ester, bu t undergoes transesterification

. (3) Intended for use in engines that are de signed to run on conventional diesel fuel. (4) Derived from nonpetroleu m renewable resources.

Pastureland is land managed for the production of indigenous or introduced forage plants for livestock grazing or hay production, and to prevent succession to other plant types.

Planted crops are all annual or perennial agricultural crops from existing agricultural land that may be used as feedstocks for renewable fuel, such as grains, oilseeds, sugarcane, as well as energy crops, such as switchgrass, pr airie grass, duckweed, and other species (but not including algae species or planted trees) , providing that they were intentionally applied by humans to the ground, a growth me dium, or a pond or tank, either by direct application as seed or plant, or throug h intentional natural seeding or vegetative propagation by mature plants introduced or left undisturbed for that purpose.

Planted trees are trees harvested from a tree plantation.

Pre-commercial thinnings are trees, including unhealthy or diseased trees, primarily removed to reduce stocking to concentrate gr owth on more desirable, healthy trees, or other vegetative material that is removed to promote tree growth.

Renewable biomass means each of the following: (1) Planted crops and crop residue harves ted from existing agricultural land cleared or cultivated prior to December 19, 2007 and actively managed on December 19,

2007.412 (2) Planted trees and tree residue from a tree plantation located on non-federal land (including land belonging to an Indian tribe or an Indian individual that is held in trust by the U.S. or subject to a restric tion against alienation imposed by the U.S.) that was cleared at any time prior to December 19, 2007 and actively managed on December 19, 2007. (3) Animal waste material and animal byproducts. (4) Slash and pre-commercial thinnings from non-federal forestland (including forestland belonging to an Indian tribe or an Indian individual, that are held in trust by the United States or subject to a restriction against alienation imposed by the United States) that is not ecologically sensitive forestland. (5) Biomass (organic matter that is ava ilable on a renewable or recurring basis)

obtained from those areas defined as wild land-urban interface in 2000, as depicted and mapped at http://silvis.forest.wisc.edu/Library/WUILibrary.asp. (6) Algae. (7) Separated yard waste or food waste, in cluding recycled cooking and trap grease and incidental material and post -recycled paper and food waste.

Renewable fuel means a fuel which meets all of the following: (1) Registered as a motor vehicle fuel or fuel additive under 40 CFR Part 79, if the

fuel or fuel additive is intended for use in a motor vehicle. (2) Fuel that is produced from renewable biomass. (3) Fuel that is used to replace or reduc e the quantity of fossil fuel present in a transportation fuel, heating oil, or jet fuel. (4) Ethanol covered by this definition sha ll be denatured as required and defined in 27 CFR parts 19 through 21. Any volume of denaturant added to the undenatured ethanol by a producer or importer in ex cess of 2 volume percent shall not be included in the volume of ethanol for pu rposes of determining compliance with the requirements under this subpart.

Renewable Identification Number (RIN) , is a unique number generated to represent a volume of renewable fuel pursuant to §§ 80.1425 and 80.1426. (1) Gallon-RIN is a RIN that represents an indi vidual gallon of renewable fuel; and (2) Batch-RIN is a RIN that represents multiple gallon-RINs.

Slash is the residue, including treetops, bran ches, and bark, left on the ground after logging or accumulating as a result of a storm, fire, delimbing, or other similar

disturbance.

Small refinery means a refinery for which the average aggregate daily crude oil throughput for calendar year 2006 (as determin ed by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000

barrels.

Transportation fuel means fuel for use in motor vehi cles, motor vehicle engines, nonroad vehicles, or nonroad engines (except for ocean-going vessels).413 Tree plantation is a stand of no less than 1 acre co mposed primarily of trees established by hand- or machine-planting of a seed or sapling, or by coppice growth from the stump

or root of a tree that was hand- or machin e-planted. Tree plantations must be cleared prior to December 19, 2007 and must be actively managed as evidenced by any of the following records that can be traced back to the land: (1) Sales records for planted trees or slash together with other written documentation connecting the land in question to these purchases; (2) Purchasing records for seeds, seedlings, or other nursery stock together

with other written documentation connec ting the land in question to these purchases; (3) A written management plan for silvicultural purposes; (4) Documentation of participation in a silvicultural program sponsored by a Federal, state or local government agency; (5) Documentation of land management in accordance with an agricultural or silvicultural product cer tification program; (6) An agreement for land management consultation with a professional forester that identifies the land in question; or (7) Evidence of the existence and ongoing maintenance of a road system or other physical infrastructure design ed and maintained for logging use, together with one of the above-mentioned documents.

Tree residue is slash and any woody residue genera ted during the processing of planted trees from actively managed tree plantations for use in lumber, paper, furniture or other applications, provided that such woody residue is not mixed with similar residue from trees that do not originate in actively managed tree plantations.

Yard waste is leaves, sticks, pine needles, grass and hedge clippings, and similar waste from residential, commercia l, or industrial areas.

§ 80.1402 [Reserved]

§ 80.1403 Which fuels are not subject to the 20% GHG thresholds?

(a) For purposes of this section, the following definitions apply: (1) Baseline volume means the greater of nameplate capacity or actual peak capacity of a specific renewa ble fuel production facility. (2) Nameplate capacity means: (i) 105% of the maximum rated vol ume output of renewable fuel produced by a renewable fuel production facility under specific conditions as indicated in applicable air permits issued by the U.S. Environmental Protection Agency, state, or local air pollution control agencies and that govern the construction and/or operation of the renewable fuel facility, reported as: (A) Annual volume output on a calendar year basis; or414 (B) If the permit associates maximum rated volume output on an hourly basis, then multiplying the hourly output by 8,322 hours per year to obtain the annual output. (ii) If the maximum rated annual vol ume output of renewable fuel is not specified in any applicable air permits issued by the U.S. Environmental Protection Agency, state, or local air pollution control agencies, then nameplate capacity is the actual peak capacity of the facility on an annual basis. (3) Actual peak capacity means 105% of the maximum annual volume of renewable fuels produced from a sp ecific renewable fuel production facility on an annual basis. (i) For facilities that commenced construction prior to December 19, 2007 the maximum annual volume is for any year prior to 2008. (ii) For facilities that commenced construction after December 19, 2007, and are fired with natural ga s, biomass, or a combination thereof, the maximum annual volume may be for any year after startup during the first three years of operation. (4) Commence construction , as applied to facilitie s that produce renewable fuel, means that the owner or opera tor has all necessary preconstruction approvals or permits (a s defined at 40 CFR 52.21(b)(10)), that for multiphased projects, the commencement of construction of one phase does not constitute commencement of construction of any later phase, unless each phase is mutually dependent for phys ical and chemical reasons only, and has satisfied either of the following: (i) Begun, or caused to begin, a continuous program of actual construction on-site (as define d in 40 CFR 52.21(b)(11)) and did

not discontinue construction for a period of 18 months or more and completed construction within a reasonable time, not to exceed 36

months. (ii) Entered into binding agreements or contractual obligations, which

cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the facility to be completed within a reasonable time, not to exceed

36 months.

(b) The baseline volume of renewable fuel that is produced from facilities and their expansions, all of which commenced construction on or before December 19, 2007, shall not be subject to the require ment of 20 percent reduction in GHG emissions and shall be deemed grandfat hered for purposes of generating RINs pursuant to §80.1426 if the owner or operator: (1) Did not discontinue construction for a period of 18 months after commencement of construction; and (2) Completed construction within 36 months of commencement of

construction.415 (c) The baseline volume of ethanol that is produced from facilities which commenced construction after December 19, 2007 and on or before December 31, 2009, shall not be subject to the requirement of 20 percent reduction in GHG emissions and shall be deemed grandfathered for pur poses of generating RINs pursuant to §80.1426 only if such facilities are fired w ith natural gas, biomass, or a combination thereof and if the owner or operator: (1) Did not discontinue construction for a period of 18 months after commencement of construction; and (2) Completed construction within 36 months of commencement of

construction. (3) Continues to be fired with natural gas, biofuel, or combination thereof.

(d) The annual volume of renewable fuel during a calendar year from facilities described in paragraphs (a) and (b) of this section that exceeds the baseline volume shall be subject to the 20 percen t reduction in GHG emissions and such volume shall not be deemed grandfathe red for purposes of generating RINs pursuant to §80.1426.

(e) If there are any changes in the mix of renewable fuels produced by those facilities described in paragraph (b) of this s ection, only the ethanol volume will not be subject to the 20 percent reduction in GHG emissions and shall be deemed grandfathered for purposes of generating RINs pursuant to §80.1426.

§ 80.1404 [Reserved]

§ 80.1405 What are the Renewable Fuel Standards?

(a) Renewable Fuel Standards for 2010. (1) The value of the cellulosic biof uel standard for 2010 shall be 0.004

percent. (2) The value of the biomass-based diesel standard for 2010 shall be 1.10

percent. (3) The value of the advanced biofuel standard for 2010 shall be 0.61 percent. (4) The value of the renewable fuel standard for 2010 shall be 8.25 percent.

(b) Beginning with the 2011 compliance peri od, EPA will calculate the value of the annual standards and publish these values in the Federal Register by November 30 of the year preceding the compliance period.

(c) EPA will calculate the annual renewable fuel percentage standards using the following equations:

i i i i i i i i i i DE RDS DS RD D GE RGS GS RG G

− − +

− +

− − +

− = ) ( ) ( ) ( ) ( RFV
* 100 Std i CB,
i CB,416 i i i i i i i i i i DE RDS DS RD D GE RGS GS RG G

− − +

− +

− − +

− ×

= ) ( ) ( ) ( ) ( 1.5 RFV
* 100 Std i BBD,
i BBD,

i i i i i i i i i i DE RDS DS RD D GE RGS GS RG G

− − +

− +

− − +

− = ) ( ) ( ) ( ) ( RFV
* 100 Std i AB,
i AB,

i i i i i i i i i i DE RDS DS RD D GE RGS GS RG G

− − +

− +

− − +

− = ) ( ) ( ) ( ) ( RFV
* 100 Std i RF,
i RF,

Where:

Std CB,i = The cellulosic biofuel standard for year i, in percent.

Std BBD,i = The biomass-based diesel sta ndard for year i, in percent.

Std AB,i = The advanced biofuel standard for year i, in percent.

Std RF,i = The renewable fuel standard for year i, in percent.

RFV CB,i = Annual volume of cellulosic biofuel required by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.

RFV BBD,i = Annual volume of biomass-based dies el required by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.

RFV AB,i = Annual volume of advanced biofuel required by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.

RFV RF,i = Annual volume of renewable fuel re quired by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.

G i = Amount of gasoline projected to be used in the 48 contiguous states and Hawaii, in year i, in gallons.

D i = Amount of diesel projected to be used in the 48 contiguous states and Hawaii, in year i, in gallons.

RG i = Amount of renewable fuel blended into gasoline that is projected to be consumed in the 48 contiguous states and Hawaii, in year i, in gallons.

RD i = Amount of renewable fuel blended into diesel that is projected to be consumed in the 48 contiguous states and Hawaii, in year i, in gallons.417 GS i = Amount of gasoline projected to be used in Alaska or a U.S. territory, in year i, if the state or territory has opted-in or opts-in, in gallons.

RGS i = Amount of renewable fuel blended in to gasoline that is projected to be consumed in Alaska or a U.S. territory, in year i, if the state or territory opts-in, in gallons.

DS i = Amount of diesel projected to be used in Alaska or a U.S. territory, in year i, if the state or territory ha s opted-in or opts-in, in gallons.

RDS i = Amount of renewable fuel blended in to diesel that is projected to be consumed in Alaska or a U.S. territory, in year i, if the state or territory opts-in, in gallons.

GE i = The amount of gasoline projected to be produced by exempt small refineries and small refiners, in year i, in gallons in any year they are exempt per §§80.1441 and 80.1442, respectiv ely. Assumed to equal 0.119*(G i -RG i ).

DE i = The amount of diesel fuel projected to be produced by exempt small refineries and small refiners in year i, in gallons, in any year they are exempt per §§80.1441 and 80.1442, respectiv ely. Assumed to equal 0.152*(D i -RD i ).

(d) The 2010 price for cellulosic biofuel waiver credits are $1.56 per waiver credit.

§ 80.1406 Who is an obligated party under the RFS program?

(a) (1) An obligated party is any refine r that produces gasoline or diesel fuel within the 48 contiguous states or Ha waii, or any importer that imports gasoline or diesel fuel into the 48 contiguous states or Hawaii. A party that simply blends renewable fuel into gasoline or diesel fuel, as defined in §80.1407(c) or (f), is not an obligated party. (2) If the Administrator approves a petition of Alaska or a United States territory to opt-in to the renewable fuel program under the provisions in §80.1443, then "obligated party" shall also include any refiner that produces gasoline or diesel fuel with in that state or territory, or any importer that imports gasoline or diesel fuel into that state or territory.

(b) For each compliance period starting with 2010, an obligated party is required to demonstrate, pursuant to §80.1427, that it has satisfied the Renewable Volume Obligations for that compliance period, as specified in §80.1407(a).

(c) An obligated party may comply with th e requirements of paragraph (b) of this section for all of its refineries in the aggr egate, or for each re finery individually.418 (d) An obligated party must comply with the requirements of paragraph (b) of this section for all of its imported gasoline or diesel fuel in the aggregate.

(e) An obligated party that is both a refiner and importer must comply with the requirements of paragraph (b) of this s ection for its imported gasoline or diesel fuel separately from gasoline or diesel fuel produced by its refinery or refineries.

(f) Where a refinery or import facility is jointly owned by two or more parties, the requirements of paragraph (b) of this s ection may be met by one of the joint owners for all of the gasoline or diesel fuel produced/imported at the facility, or each party may meet the requirements of paragraph (b) of this section for the portion of the gasoline or diesel fuel that it produces or imports, as long as all of the gasoline or diesel fuel produced/impor ted at the facility is accounted for in determining the Renewable Volu me Obligations under §80.1407.

(g) The requirements in paragraph (b) of this section apply to the following compliance periods: Beginning in 2010, and every year thereafter, the compliance period is January 1 through December 31.

§ 80.1407 How are the Renewable Volu me Obligations calculated?

(a) The Renewable Volume Obligations for an obligated party are determined according to the following formulas:

(1) Cellulosic biofuel.

RVO CB,i = (RFStd CB,i * (GV i + DV i )) + D CB,i-1

Where:

RVO CB,i = The Renewable Volume Obligation for cellulosic biofuel for an obligated party for calendar year i, in gallons.

RFStd CB,i = The standard for cellulosic biofuel for calendar year i, determined by EPA pursuant to §80.1405, in percent.

GV i = The non-renewable gasoline volume, determined in accordance with paragraphs (b), (c), and (f) of this section, which is produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

DV i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or419 imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

D CB,i-1 = Deficit carryover from the previous year for cellulosic biofuel, in gallons.

(2) Biomass-based diesel.

RVO BBD,i = (RFStd BBD,i * (GV i + DV i )) + D BBD,i-1

Where:

RVO BBD,i = The Renewable Volume Oblig ation for biomass-based diesel for an obligated party for calendar year i, in gallons.

RFStd BBD,i = The standard for biomass-base d diesel for calendar year i, determined by EPA pursuant to §80.1405, in percent.

GV i = The non-renewable gasoline volume, determined in accordance with paragraphs (b), (c), and (f) of this section, which is produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

DV i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

D BBD,i-1 = Deficit carryover from the previous year for biomass-based diesel, in gallons.

(3) Advanced biofuel.

RVO AB,i = (RFStd AB,i * (GV i + DV i )) + D AB,i-1

Where:

RVO AB,i = The Renewable Volume Obliga tion for advanced biofuel for an obligated party for calendar year i, in gallons.

RFStd AB,i = The standard for advanced biofuel for calendar year i, determined by EPA pursuant to §80.1405, in percent.

GV i = The non-renewable gasoline volume, determined in accordance with paragraphs (b), (c), and (f) of this section, which is420 produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

DV i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

D AB,i-1 = Deficit carryover from the previous year for advanced biofuel, in gallons.

(4) Renewable fuel.

RVO RF,i = (RFStd RF,i * (GV i + DV i )) + D RF,i-1

Where:

RVO RF,i = The Renewable Volume Obliga tion for renewable fuel for an obligated party for calendar year i, in gallons.

RFStd RF,i = The standard for renewable fuel for calendar year i, determined by EPA pursuant to §80.1405, in percent.

GV i = The non-renewable gasoline volume, determined in accordance with paragraphs (b), (c), and (f) of this section, which is produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

DV i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the 48 contiguous states or Hawaii by an obligated party in calendar year i, in gallons.

D RF,i-1 = Deficit carryover from the previous year for renewable fuel, in gallons.

(b) The non-renewable gasoline volume, GV i , for an obligated party for a given year as specified in paragraph (a) of this section is calculated as follows:



# ∑ ∑

=

= − = m

y y n

x x i RBG G GV

1 1

Where:

x = Individual batch of gasoline pr oduced or imported in calendar year

i.421 n = Total number of batches of gasoline produced or imported in calendar year i.

G

x = Volume of batch x of gasoline produced or imported, as defined in paragraph (c) of this section, in gallons. y = Individual batch of renewable fuel blended into gasoline in calendar year i.

m = Total number of batches of renewa ble fuel blended into gasoline in calendar year i.

RBG y = Volume of batch y of renewabl e fuel blended into gasoline, in gallons.

(c) All of the following products that are produced or imported during a compliance period, collectively called “gasoline” for the purposes of this section (unless otherwise specified), are to be include d (but not double-counted) in the volume used to calculate a party’s Renewable Vo lume Obligations under paragraph (a) of this section, except as provided in paragraph (f) of this section: (1) Reformulated gasoline, whether or not renewable fuel is later added to it. (2) Conventional gasoline, whether or not renewable fuel is later added to it. (3) Reformulated gasoline blendstock that becomes finished reformulated gasoline upon the addition of oxygenate (RBOB). (4) Conventional gasoline blendstock that becomes finished conventional gasoline upon the addition of oxygenate (CBOB). (5) Blendstock (including butane and gasoline treated as blendstock (GTAB))

that has been combined with other bl endstock and/or finished gasoline to produce gasoline. (6) Any gasoline, or any unfinished ga soline that becomes finished gasoline upon the addition of oxygenate, that is produced or imported to comply with a state or local fuels program.

(d) The diesel non-renewable volume, DV i , for an obligated party for a given year as specified in paragraph (a) of this section is calculated as follows:



# ∑ ∑

=

= − = m

y y n

x x i RBD D DV

1 1

Where:

x = Individual batch of diesel produced or imported in calendar year i.

n = Total number of batches of dies el produced or imported in calendar year i.

D

x = Volume of batch x of diesel pr oduced or imported, as defined in paragraph (e) of this section, in gallons. y = Individual batch of renewable fuel blended into diesel in calendar year i.

m = Total number of batches of renewa ble fuel blended into diesel in calendar year i.422 RBD y = Volume of batch y of renewabl e fuel blended into diesel, in gallons.

(e) All products meeting the definition of MVNRLM diesel fuel at §80.2(qqq) that are produced or imported during a complia nce period, collectively called “diesel fuel” for the purposes of this section ( unless otherwise specified), are to be included (but not double-counted) in the volume used to calculate a party’s Renewable Volume Obligations under paragraph (a) of this section.

(f) The following products are not included in the volume of gasoline or diesel fuel produced or imported used to calculate a party’s Renewable Volume Obligations according to paragraph (a) of this section: (1) Any renewable fuel as defined in §80.1401. (2) Blendstock that has not been comb ined with other blendstock, finished gasoline, or diesel to produce gasoline or diesel. (3) Gasoline or diesel fuel produced or imported for use in Alaska, the Commonwealth of Puerto Rico, the U. S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Marianas, unless the area has opted into the RFS program under §80.1443. (4) Gasoline or diesel fuel produced by a small refinery that has an exemption under §80.1441 or an approved small refi ner that has an exemption under §80.1442. (5) Gasoline or diesel fuel exported fo r use outside the 48 United States and Hawaii, and gasoline or diesel fuel exported for use outside Alaska, the Commonwealth of Puerto Rico, the U. S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Marianas, if the area has opted into the RFS program under §80.1443. (6) For blenders, the volume of finished gasoline, finished diesel fuel, RBOB,

or CBOB to which a blender adds blendstocks. (7) The gasoline or diesel fuel portion of transmix produced by a transmix processor, or the transmix blended into gasoline or diesel fuel by a transmix blender, under §80.84.

§§ 80.1408-80.1414 [Reserved]

§ 80.1415 How are equivalence values a ssigned to renewable fuel?

(a) (1) Each gallon of a renewable fu el, or gallon equivalent pursuant to paragraph (c) of this section, shall be assigned an equivalence value by the producer or importer pursuant to para graph (b) or (d) of this section. (2) The equivalence value is a number that is used to determine how many gallon-RINs can be generated for a batch of renewable fuel according to §80.1426.423 (b) Equivalence values shall be assigned for certain renewable fuels as follows: (1) Ethanol which is denatured sha ll have an equivalence value of 1.0. (2) Biodiesel (mono-alkyl ester) shall have an equivalence value of 1.5. (3) Biodiesel (partial esterification) sh all have an equiva lence value of 1.6. (4) Butanol shall have an equivalence value of 1.3. (5) Non-ester renewable diesel with a lower heating value of at least 123,500 Btu/gal shall have an equivalence value of 1.7. (6) For all other renewable fuels, a producer or importer shall submit an application to the Agency for an equivalence value following the provisions of paragraph (d) of this section. A producer or importer may also submit an application for an alternative equivalence value pursuant to paragraph (d) if the renewable fuel is listed in this paragraph (b), but the producer or importer has reason to be lieve that a different equivalence value than that listed in this paragraph (b) is warranted.

(c) (1) A gallon of renewable fuel is a physically measured unit of volume for any fuel that exists as a liquid at 60 o F and 1 atm. (2) A gallon of renewable fuel repres ents 77,000 Btu (lower heating value) for any fuel that exists as a gas at 60 o F and 1 atm. (3) A gallon of renewable fuel re presents 22.6 kW-hr of electricity.

(d) Calculation of new equivalence values

. (1) The equivalence value for renewable fuels described in paragraph (b)(5) of this section shall be calculated using the following formula:

EV = (R / 0.972) * (EC / 77,000)

Where:

EV = Equivalence Value for the renewable fuel, rounded to the nearest

tenth.

R = Renewable content of the renewabl e fuel. This is a measure of the portion of a renewable fuel that came from a renewable source, expressed as a percent, on an energy basis. EC = Energy content of the renewa ble fuel, in Btu per gallon (lower heating value).

(2) The application for an equivalence value shall include a technical justification that includes a descripti on of the renewable fuel, feedstock(s) used to make it, and the production process. (3) The Agency will review the technical justification and assign an appropriate equiva lence value to the renewable fuel based on the procedure in this paragraph (d). (4) Applications for equivalence values must be sent to one of the following

addresses: (i) For US Mail: U.S. EPA, Attn: RFS2 Program Equivalence Value Application, 6406J, 1200 Pennsylvania Avenue, NW, Washington,424 DC 20460. (ii) For overnight or courier services: U.S. EPA, Attn: RFS2 Program Equivalence Value Application, 6406J, 1310 L Street, NW, 6th floor, Washington, DC 20005. (202) 343-9038. (5) All applications required under this section shall be submitted on forms and following procedures prescribed by the Administrator.

§ 80.1416 Petition Process for parties wh o produce or import new renewable fuels and pathways.

(a) (1) Each renewable fuel produ cer or importer that produces or imports a new renewable fuel, or uses a new pathway that can not qualify for a D code as defined in §80.1426(d), must apply to us e a D code as specified in this

section. (2) Renewable fuel producers or importe rs that produce or import that use a new pathway that may qualify for a D code as defined in §80.1426(d), but have implemented significant proc ess improvements and can document significant differences between the fuel production processes outlined in this rule may also submit a petition.

(b) (1) The petition for a new renewable fuel or pathway shall include all the following: (i) A completed facility registration under §80.1450(b). (ii) A technical justification th at includes a description of the renewable fuel, feedstock(s) used to make it, and the production process. The justification must include process modeling flow

charts. (iii) A mass energy balance equation for the pathway, including feedstocks, fuels produced, co-p roducts, and waste materials production. (iv) Information on co-products, including their expected use and

market value. (v) Any energy and process heat inputs and outputs used in the pathway, including such sources produced off site or by another entity. (vi) Any other relevant information, in cluding information pertaining to energy saving technologies or other process improvements. (vii) The Administrator may ask for additional information to complete the lifecycle Greenhouse Gas assessment of the new fuel or pathway. (2) For companies using a new feedstock in their pathway, the petition must include all the following in additi on to the requirements in paragraph (b)(1) of this section: (i) Type of feedstock and descripti on of how it meets the definition of

renewable biomass.425 (ii) Identify the market value of the feedstock. (iii) List of other uses for the feedstock. (iv) List chemical inputs needed to create the source and prepare the feedstock for processing. (v) List energy need to obtain the feedstock and deliver it to the facility. If applicable, energy needed to plant and harvest the feedstock source and modify the source to create the feedstock. (vi) Current and projec ted national yields of the feedstock in the country where the fuel is produced or the feedstock is procured. (vii) The Administrator may ask for additional information to complete the lifecycle Greenhouse Gas assessment of the new fuel or pathway.

(c) (1) A company may only submit one petition per pathway. If EPA determines the petition to be incomplete, per paragr aph (b)(4) of this section, then the company may resubmit. (2) The petition must be signed and certified as meeting all the applicable requirements of this subpart by the responsible corporate officer of the applicant organization. (3) If EPA determines that the petition is incomplete then EPA will notify the applicant in writing that the petition is incomplete and will not be reviewed further. However, an amended petition that corrects the omission may be re-submitted for EPA review. (4) If the fuel or pathway described in the petition does not meet the definition of renewable fuel in §80.1401, then EPA will notify the applicant in writing that the petition is denied and will not be reviewed further.

(d) The petition under this section sha ll be submitted on forms and following procedures as prescribed by EPA.

§§ 80.1417-80.1424 [Reserved]

§ 80.1425 Renewable Identifica tion Numbers (RINs).

Each RIN is a 38-character numer ic code of the following form:

KYYYYCCCCFFFFFBBBBBRRDSSSSSSSSEEEEEEEE

(a) K is a number identifying the type of RIN as follows: (1) K has the value of 1 when the RIN is assigned to a volume of renewable fuel pursuant to §§ 80.1426(e) and 80.1428(a). (2) K has the value of 2 when the RIN has been separated from a volume of renewable fuel pursuant to §80.1429.426 (b) YYYY is the calendar year in which the batch of renewable fuel was produced or imported. YYYY also represents the year in which the RIN was originally generated.

(c) CCCC is the registration number assigned, according to §80.1450, to the producer or importer of the batch of renewable fuel.

(d) FFFFF is the registration number assigned, according to §80.1450, to the facility

at which the batch of renewabl e fuel was produced or imported.

(e) BBBBB is a serial number assigned to the batch which is chosen by the producer or importer of the batch such that no two batches have the same value in a given calendar year.

(f) RR is a number representing 10 times the equivalence value of the renewable fuel as specified in §80.1415.

(g) D is a number determined according to §80.1426(d) and identifying the type of renewable fuel, as follows: (1) D has the value of 3 to denote fuel categorized as cellulosic biofuel. (2) D has the value of 4 to denote fuel categorized as biomass-based diesel. (3) D has the value of 5 to denote fuel categorized as advanced biofuel. (4) D has the value of 6 to denote fu el categorized as renewable fuel. (5) D has the value of 7 to denote fu el categorized as cellulosic diesel.

(h) SSSSSSSS is a number representing the fi rst gallon-RIN associated with a batch

of renewable fuel.

(i) EEEEEEEE is a number representing the last gallon-RIN associated with a batch

of renewable fuel. EEEEEEEE will be id entical to SSSSSSSS if the batch-RIN represents a single gallon-RIN. Assign the value of EEEEEEEE as described in §80.1426.

§ 80.1426 How are RINs generated and assigned to batches of renewable fuel by renewable fuel producers or importers?

(a) General requirements

. (1) Producers and importers of qualifyi ng renewable fuel (as defined in §80.1401) may generate RINs to represent th at fuel if it is demonstrated to be produced from renewable bioma ss (as defined in §80.1401), unless the

feedstock is deemed to be renewa ble biomass through the aggregate compliance provision at §80.1454(h). (i) Domestic producers may generate RINs for renewable fuel that they produce.427 (ii) Importers may generate RINs for renewable fuel that they import that has not been assigned RINs by a foreign producer, including any renewable fuel contained in imported transportation fuel. Importers must obtain information from a foreign producer sufficient to make the appropriate determination regarding the applicable D code and complian ce with the renewable biomass definition for each imported batch for which RINs are generated. (iii) Foreign producers may generate RINs for any renewable fuel that they export to the 48 contiguous states of the United States or

Hawaii. (2) A party generating a RIN shall specify the appropriate numerical values for each component of the RIN in accordance with the provisions of §80.1425(a) and paragraph (f) of this section.

(b) Regional applicability. (1) Except as provided in paragraph (c) of this section, a RIN may be generated by a renewable fuel producer or importer for a batch of fuel that is produced or imported for use as tran sportation fuel, heating oil, or jet fuel in the 48 contiguous states or Hawaii. (2) If the Administrator approves a petition of Alaska or a United States territory to opt-in to the renewable fuel program under the provisions in §80.1443, then the requirements of paragra ph (b)(1) of this section shall also apply to renewable fuel produced or imported for use as transportation fuel, heating oil, or jet fuel in that state or territory beginning in the next calendar year.

(c) Cases in which RINs are not generated

. (1) Fuel producers and importers may not generate RINs for fuel that is not designated or intended for use as tran sportation fuel, heating oil, or jet

fuel. (2) Small producer/importer threshold. Pursuant to §80.1455(a) and (b), renewable fuel producers that produce less than 10,000 gallons a year of renewable fuel, and importers that import less than 10,000 gallons a year of renewable fuel, are not required to generate and assign RINs to batches of renewable fuel that they produce or import. (3) Temporary new producer threshold . Pursuant to §80.1455(c) and (d), renewable fuel producers that produce less than 125,000 gallons a year of renewable fuel are not required to gene rate and assign RINs to batches of renewable fuel produced from a new facility for a maximum of three years beginning with the calendar year in which the production facility produces its first gallon of renewable fuel. (4) Importers shall not generate RINs for fuel imported from a foreign producer that is not registered with EPA as required in §80.1450. (5) Importers shall not generate RINs fo r renewable fuel that has already been assigned RINs by a registered foreign producer.428 (6) (i) A party is prohibited from ge nerating RINs for a volume of fuel that it produces if: (A) The fuel has been produced from a chemical conversion process that uses another rene wable fuel as a feedstock, the renewable fuel used as a feedstock was produced by another party, and RINs with a K code of 1 were received with the renewable fuel; or (B) The fuel is not produced from renewable biomass. (ii) Parties who pr oduce renewable fuel made from a feedstock which itself was a renewable fuel received with RINs, shall assign the original RINs to the new renewable fuel.

(d) (1) Definition of batch . For the purposes of this section and §80.1425, a

"batch of renewable fuel" is a volum e of renewable fuel that has been assigned a unique RIN code BBBBB within a calendar year by the producer or importer of the renewa ble fuel in accordance with the provisions of this section and §80.1425. (i) The number of gallon-RINs gene rated for a batch of renewable fuel may not exceed 99,999,999. (ii) A batch of renewable fuel cannot represent renewable fuel produced or imported in ex cess of one calendar month. (3) Multiple gallon-RINs generated to represent a given volume of renewable fuel can be represented by a single batch-RIN through the appropriate designation of the RIN volume codes SSSSSSSS and EEEEEEEE. (i) The value of SSSSSSSS in th e batch-RIN shall be 00000001 to represent the first gallon-RIN associated with the volume of

renewable fuel. (ii) The value of EEEEEEEE in the ba tch-RIN shall represent the last gallon-RIN associated with the vol ume of renewable fuel, based on the RIN volume determined pursuant to paragraph (d)(4) of this

section.

(e) Assignment of RINs to batches. (1) The producer or importer of rene wable fuel must assign all RINs generated to volumes of renewable fuel. (2) A RIN is assigned to a volume of renewable fuel when ownership of the RIN is transferred along with the tran sfer of ownership of the volume of renewable fuel, pursuant to §80.1428(a). (3) All assigned RINs shall have a K code value of 1.

(f) Generation of RINs. (1) Applicable pathways . D codes shall be used in RINs generated by producers or importers of renewable fu el according to the pathways listed

in Table 1 to this section.429 Table 1 to §80.1426 Applicable D Codes For Each Fuel Pathway for Use in Generating RINs

Fuel Type Feedstock Pr oduction Process D-Code

Ethanol Corn starch All of the following:

Drymill process, using natural gas or biomass for process energy and at least

two advanced technologies from

Table 2 to this

section. 6

Ethanol Corn starch All of the following:

Dry mill process, using natural gas or biomass for process energy and at least

one of the advanced technologies from

Table 2 to this section plus drying no more

than 65% of the DGS it markets annually. 6

Ethanol Corn starch All of the following:

Dry mill process, using natural gas or biomass for process energy and drying no

more than 50% of the

DGS it markets annually. 6

Ethanol Corn starch Wet mill process using biomass for

process energy. 6430 Ethanol Waste ethanol from beverage production Fermentation 6

Ethanol Waste starches from food production and agricultural residues;

starches from secondary annual

crops Fermentation using natural gas or biomass for process energy 6

Biodiesel, and

renewable diesel Soy bean oil;

Oil from secondary annual crops;

Algal oil;

Waste oils/fats/greases One of the following:

Trans-Esterification

Partial TransEsterification

Hydrotreating 4

Ethanol Sugarcane; waste sugar from food and beverage production Fermentation (Any) 5

Ethanol Cellulosic Biomass from agricultural residues; slash, forest thinnings and forest product residues; secondary annual crops; switchgrass and miscanthus; separated food and yard wastes and food and beverage production wastes Any 3

Cellulosic Diesel, Jet Fuel and Heating Oil Cellulosic Biomass from agricultural residues; slash, forest thinnings and forest product residues; secondary annual crops; switchgrass Any 7431 and miscanthus; separated food and yard wastes and food and beverage production wastes

Butanol Corn starch Fermentation; dry mill using natural gas

or biomass for

process energy 6

Cellulosic Naptha Cellulosic Biomass from agricultural residues; slash, forest thinnings and forest product residues; secondary annual crops; switchgrass and miscanthus; separated food and yard wastes and food and beverage production wastes Fischer-Tropsch

process 3

Table 2 to §80.1426 Advanced Technologies

Corn oil fractionation

Corn oil extraction Membrane separation Raw starch hydrolysis Combined heat and power

(2) Producers whose operations can be described by a single pathway

. (i) The number of gallon-RINs that shall be generated by a producer or importer for a batch of renewa ble fuel shall be equal to a volume calculated according to the following formula:

V RIN = EV * V
s

Where:

V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.432 EV = Equivalence value for the batch of renewable fuel per §80.1415.

V
s = Standardized volume of the batch of renewable fuel at 60

o F, in gallons, calculated in accordance with paragraph (f)(9) of this section. (ii) The D code that shall be used in the RINs generated shall be the D code specified in Table 1 to this section which corresponds to the pathway that describes the producer's operations.

(3) Producers whose operations can be described by two or more pathways

. (i) The D codes that shall be used in the RINs generated by the producer or importer within a calendar year shall be the D codes specified in Table 1 to this section which correspond to the pathways that describe the produc er's operations throughout that calendar year. (ii) If all the pathways describing the producer's operations have the

same D code and each batch is of a single fuel type, then that D

code shall be used in all the RINs generated and the number of gallon-RINs that shall be generated for a batch of renewable fuel shall be equal to a volume calculated according to the following

formula:

V RIN = EV * V
s

Where:

V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch. EV = Equivalence value for the batch of renewable fuel per §80.1415.

V
s = Standardized volume of the batch of renewable fuel at 60

o F, in gallons, calculated in accordance with paragraph (f)(9) of this section. (iii) If all the pathways describing the producer's operations have the

same D code but indivi dual batches are compri sed of a mixture of fuel types with different equivalenc e values, then that D code shall be used in all the RINs genera ted and the number of gallon-RINs that shall be generated for a batch of renewable fuel shall be equal to a volume calculated according to the following formula:

V RIN = ∑ (EV i * V s,i )

Where:

V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.433 EV i = Equivalence value for fuel type i in the batch of renewable fuel per §80.1415.

V s,i = Standardized volume of fuel type i in the batch of

renewable fuel at 60 o F, in gallons, calculated in accordance with paragraph (f)(8) of this section. (iv) If the pathway applicable to a producer changes on a specific date, such that one pathway applies befo re the date and another pathway applies on and after the date, and e ach batch is of a single fuel type, then the applicable D code used in generating RINs must change on the date that the change in pathway occurs and the number of gallon-RINs that sha ll be generated for a batch of renewable fuel shall be equal to a volume calculated according to the following formula:

V RIN = EV * V
s

Where:

V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for a batch with a single applicable D code. EV = Equivalence value for the batch of renewable fuel per §80.1415.

V
s = Standardized volume of the batch of renewable fuel at 60

o F, in gallons, calculated in accordance with paragraph (f)(9) of this section. (v) If a producer produces batches that are comprised of a mixture of fuel types with different equi valence values and different applicable D codes, then separate values for V RIN shall be calculated for each batch of each category of renewable fuel according to formulas in Table 3 to this section:

Table 3 to §80.1426 Number of gallon-RINs to assign to batch- RINs with D codes dependent on fuel type D code to use in batch-RIN Number of gallon-RINs

D = 3 CB s CB CB RIN V EV V

, , ∗ =
D = 4 BBD s BBD BBD RIN V EV V

, , ∗ =
D = 5 AB s AB AB RIN V EV V

, , ∗ =
D = 6 RF s RF RF RIN V EV V

, , ∗ =
D = 7 CD s CD CD RIN V EV V

, , ∗ =

Where:

V RIN,CB = RIN volume, in gallons, for use determining the number of gallon-RINs that shall be generated for434 the cellulosic biofuel portion of the batch with a D

code of 3.

V RIN,BBD = RIN volume, in gallons, for use determining the number of gallon-RINs that shall be generated for the biomass-based diesel por tion of the batch with a

D code of 4.

V RIN,AB = RIN volume, in gallons, for use determining the number of gallon-RINs that shall be generated for the advanced biofuel poti on of the batch with a D

code of 5.

V RIN,RF = RIN volume, in gallons, for use determining the number of gallon-RINs that shall be generated for the renewable fuel potion of the batch with a D code

of 6.

V RIN,CD = RIN volume, in gallons, for use determining the number of gallon-RINs that shall be generated for the cellulosic diesel portion of the batch with a D

code of 7.

EV CB = Equivalence value for the cellulosic biofuel portion of the batch per §80.1415.

EV BBD = Equivalence value for the biomass-based diesel portion of the batch per §80.1415.

EV AB = Equivalence value for the advanced biofuel portion of the batch per §80.1415.

EV RF = Equivalence value for the renewable fuel portion of the batch per §80.1415.

EV CD = Equivalence value for the cellulosic diesel portion of the batch per §80.1415.

V s,CB = Standardized volume at 60 o F of the portion of the batch that must be assigned a D code of 3, in gallons, calculated in accordance with paragraph (f)(9) of this section.

V s,BBD = Standardized volume at 60 o F of the portion of the batch that must be assigned a D code of 4, in gallons, calculated in accordance with paragraph (f)(8) of this section.

V s,AB = Standardized volume at 60 o F of the portion of the batch that must be assigned a D code of 5, in gallons, calculated in accordance with paragraph (f)(8) of this section.

V s,RF = Standardized volume at 60 o F of the portion of the batch that must be assigned a D code of 6, in gallons, calculated in accordance with paragraph (f)(8) of this section.

V s,CD = Standardized volume at 60 o F of the portion of the batch that must be assigned a D code of 7, in435 gallons, calculated in accordance with paragraph (f)(8) of this section. (vi) If a producer produces a single type of renewable fuel using two or

more different feedstocks which are processed simultaneously, and each batch is comprised of a single type of fuel, then the number of gallon-RINs that shall be generated for a batch of renewable fuel and assigned a particular D code shall be determined according to

the formulas in Table 4 to this section.

Table 4 to §80.1426 Number of gallon-RINs to assign to batc h-RINs with D codes dependent on feedstock

D code to use in batch-RIN Number of gallon-RINs

D = 3 ⎟ ⎠ ⎞ ⎜ ⎝ ⎛

+ + + + ∗ ∗ =

7 6 5 4 3 3

, FE FE FE FE FE FE V EV V
s CB RIN

D = 4 ⎟ ⎠ ⎞ ⎜ ⎝ ⎛

+ + + + ∗ ∗ =

7 6 5 4 3 4

, FE FE FE FE FE FE V EV V
s BBD RIN

D = 5 ⎟ ⎠ ⎞ ⎜ ⎝ ⎛

+ + + + ∗ ∗ =

7 6 5 4 3 5

, FE FE FE FE FE FE V EV V
s AB RIN

D = 6 ⎟ ⎠ ⎞ ⎜ ⎝ ⎛

+ + + + ∗ ∗ =

7 6 5 4 3 6

, FE FE FE FE FE FE V EV V
s RF RIN

D = 7 ⎟ ⎠ ⎞ ⎜ ⎝ ⎛

+ + + + ∗ ∗ =

7 6 5 4 3 7

, FE FE FE FE FE FE V EV V
s CD RIN

Where:

V RIN,CB = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for a

batch of cellulosic biofue l with a D code of 3.

V RIN,BBD = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for a

batch of biomass-based dies el with a D code of 4.

V RIN,AB = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for a

batch of advanced biofue l with a D code of 5.

V RIN,RF = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for a

batch of renewable fuel with a D code of 6.

V RIN,CD = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for a

batch of cellulosic diesel with a D code of 7. EV = Equivalence value for the renewable fuel per §80.1415.436 V
s = Standardized volume of th e batch of renewable fuel

at 60 o F, in gallons, calculated in accordance with paragraph (f)(9) of this section.

FE 3 = Feedstock energy from all feedstocks whose pathways have been assigned a D code of 3 under Table 1 to this section, in Btu.

FE 4 = Feedstock energy from all feedstocks whose pathways have been assigned a D code of 4 under Table 1 to this section, in Btu.

FE 5 = Feedstock energy from all feedstocks whose pathways have been assigned a D code of 5 under Table 1 to this section, in Btu.

FE 6 = Feedstock energy from all feedstocks whose pathways have been assigned a D code of 6 under Table 1 to this section, in Btu.

FE 7 = Feedstock energy from all feedstocks whose pathways have been assigned a D code of 7 under Table 1 to this section, in Btu.

Feedstock energy values, FE, shall be calculated according to the following formula:

FE = M * CF * E

Where:

FE = Feedstock energy, in Btu. M = Mass of feedstock on a zero moisture basis, in pounds, measured on a daily or per-batch basis. CF = Converted Fraction in annual average mass percent, representing that portion of the feedstock that is determined to be converted into renewable fuel by the producer. E = Energy content of the compone nts of the feedstock that are converted to renewable fuel, in annual average Btu/lb, determined according to paragraph (f)(7) of this section.

(4) Producers who co-process rene wable biomass and non-renewable feedstocks simultaneously to produce a tr ansportation fuel that is partially

renewable

. (i) The number of gallon-RINs that shall be generated for a batch of partially renewable tran sportation fuel shall be equal to a volume

V RIN calculated according to Method A or Method B. (A) Method A

. (1 ) V RIN shall be calculated according to the following

formula:437 V RIN = EV * V

s * FE R / (FE R + FE NR )

Where:

V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for

the batch. EV = Equivalence value for the batch of renewable fuel per §80.1415.

V
s = Standardized volume of th e batch of renewable fuel

at 60 o F, in gallons, calculated in accordance with paragraph (f)(9) of this section.

FE R = Feedstock energy from renewable biomass used to make the transportation fuel, in Btu.

FE NR = Feedstock energy from non-renewable feedstocks used to make the transportation fuel, in Btu.

(2 ) The value of FE for use in paragraph (f)(4)(i)(A)(1) of this section shall be calculated from the following

formula:

FE = M * CF * E

Where:

FE = Feedstock energy, in Btu. M = Mass of feedstock on a zero moisture basis, in pounds, measured on a daily or per-batch basis. CF = Converted Fraction in annual average mass percent, representing that portion of the feedstock that is

determined to be converte d into transportation fuel by the producer. E = Energy content of the components of the feedstock that are converted to fuel, in annual average Btu/lb, determined according to paragraph (f)(7) of this

section.

(B) Method B . V RIN shall be calculated according to the following formula:

V RIN = EV * V

s * R

Where:438 V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for

the batch. EV = Equivalence value for the batch of renewable fuel per §80.1415.

V
s = Standardized volume of th e batch of renewable fuel

at 60 o F, in gallons, calculated in accordance with paragraph (f)(8) of this section. R = The renewable fraction of the fuel as measured by a carbon-14 dating test method as provided in paragraph (f)(9) of this section.

(ii) The D code that shall be used in the RINs generated to represent partially renewable transportati on fuel shall be the D code specified in Table 1 to this section which corresponds to the pathway that describes a producer's operations. In determining the appropriate pathway, the contributi on of fossil fuel feedstocks to the production of partially rene wable fuel shall be ignored.

(5) Producers who use separated yard and food waste as a feedstock to produce a fuel that is partially renewable. (i) Separated yard waste and food waste means, for purposes of this paragraph, waste that is: (A) A feedstock stream consisting solely of separated yard or food waste with only incidental other components (e.g., paper and plastics); or (B) Biogenic material remaining from municipal solid waste after separation and recycling actions have been taken to remove recyclable paper, cardboard, plas tics, rubber, textiles, metals, and glass. (ii) A feedstock qualifie s under paragraph (f)(5)(i)(A) of this section only if it is considered to occur if t he feedstock stream consisting solely of separated yard or food waste is collected according to an approved plan submitted to and approved by U.S. EPA under the registration procedures specified in §1450(b)(vii). (iii) Separation and recycling actions specified in paragraph (f)(5)(i)(B) of this section, are considered to occur if: (A) Paper, cardboard, textiles, and non-biogenic materials that can be recycled are separated and removed from the municipal waste stream to the extent reasonably practicable according to an approved pl an submitted to and approved by U.S. EPA under the registration procedures specified in §1450(b)(viii); and (B) The fuel producer has evidence of all contractual arrangements for paper, cardboard, textiles and nonbiogenic material that are recycled.439 (iv) The number of gallon-RINs that shall be generated for a batch of partially renewable tran sportation fuel shall be equal to a volume

V RIN calculated according paragraph (f)(4) of this section. (A) Method A shall be used for separated food and yard waste as defined in paragraph (f)(5)(i)(A) of this section; and (B) Method B shall be used for separated food and yard waste as defined in paragraph (f)(5)(i)(B) of this section. (6) Producers without an applicable pathway

. If none of the pathways described in Table 1 to this section apply to a producer's operations, the party may generate RINs if the fuel from its facility qualifies for grandf athering as provided in §80.1403.

(i) The number of gallon-RINs that shall be generated for a batch of grandfathered renewable fuel shall be equal to a volume calculated according to the following formula:

V RIN = EV * V
s

Where:

V RIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch. EV = Equivalence value for the batch of renewable fuel per §80.1415.

V
s = Standardized volume of the batch of renewable fuel at 60 o F, in gallons, calculated in accordance with paragraph (f)(9) of this

section.

(ii) A D code of 6 shall be used in the RINs generated under this paragraph (f)(6).

(7) Determination of feedstock energy content factors

. (i) For purposes of paragraphs (f)(3)(vi), (f)(4)(i)(A)(2 ), and (f)(5)(i)(A)(2 ) of this section, producers must specify the value for E, the energy content of the com ponents of the feedstock that are converted to renewable fuel, us ed in the calculation of the feedstock energy value FE. (ii) The value for E shall represent the higher or gross calorific heating

value for a feedstock on a zero moisture basis. (iii) Producers must specify the value for E for each type of feedstock at least once per calendar year. (iv) A producer may use default valu es for E as provided in paragraph (d)(9)(vi) of this section, or may determine alternative values for its own feedstocks according to pa ragraph (d)(9)(v) of this section. (v) Producers may use the following test methods to determine the value of E, or alternative test methods as approved by EPA.440(A) ASTM E-870 or E-711 for gross calorific value. ASTM E870 and E-711are incorporated by reference. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR Part 51. A copy may be obtained from the American Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohoc ken, Pennsylvania. A copy may be inspected at the EPA Docket Center, Docket No. EPA-HQ-OAR-2005-0161, EPA/ DC, EPA West, Room 3334, 1301 Constitution Ave., NW, Washington DC, or at

the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 866-272-6272, or go to:http://www.archives.gov/federal-register/cfr/ibrlocations.html

.(B) ASTM D-4442 or D-4444 for moisture content. ASTM D4442 and D-4444 are incorporated by reference. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR Part 51. A copy may be obtained from the American Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohoc ken, Pennsylvania. A copy may be inspected at the EPA Docket Center, Docket No. EPA-HQ-OAR-2005-0161, EPA/ DC, EPA West, Room 3334, 1301 Constitution Ave., NW, Washington DC, or at

the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 866-272-6272, or go to:http://www.archives.gov/federal-register/cfr/ibrlocations.html

. (vi) Default values for E

. (A) Starch: 7600 Btu/lb. (B) Sugar: 7300 Btu/lb. (C) Vegetable oil: 17,000 Btu/lb. (D) Recycled cooking oil or trap grease: 16,600 Btu/lb. (E) Tallow or fat: 16,200 Btu/lb. (F) Manure: 6900 Btu/lb. (G) Woody biomass: 8400 Btu/lb. (H) Herbaceous biomass: 7300 Btu/lb. (I) Yard wastes: 2900 Btu/lb. (J) Biogas: 11,000 Btu/lb. (K) Food waste: 2000 Btu/lb. (L) Paper: 7200 Btu/lb. (M) Crude oil: 19,100 Btu/lb. (N) Coal - bituminous: 12,200 Btu/lb. (O) Coal - anthracite: 13,300 Btu/lb.441 (P) Coal - lignite or sub-bituminous: 7900 Btu/lb. (Q) Natural gas: 19,700 Btu/lb. (R) Recycled tires or rubber: 16,000 Btu/lb. (S) Plastic: 19,000 Btu/lb. (8) Standardization of volumes . In determining the standardized volume of a batch of renewable fuel for purposes of generating RINs under this paragraph (d), the batch volumes sh all be adjusted to a standard temperature of 60 o F. (i) For ethanol, the following formula shall be used:

V s,e = V a,e * (-0.0006301 * T + 1.0378)

Where:

V s,e = Standardized volume of ethanol at 60 o F, in gallons.

V a,e = Actual volume of ethanol, in gallons. T = Actual temperature of the batch, in o F.

(ii) For biodiesel (mono alkyl este rs), one of the following two methods for biodiesel temper ature standardization to 60 °Fahrenheit (°F ) shall be used: (A) V s,b = V a.b * (-0.00045767 * T + 1.02746025)

Where:

V s,b = Standardized volume of biodiesel at 60 °F, in gallons.

V a,b = Actual volume of bi odiesel, in gallons. T = Actual temperature of the batch, in °F. (B) The standardized volume of biodiesel at 60 °F, in gallons,

as calculated from the use of the American Petroleum Institute Refined Products Table 6B, as referenced in ASTM D1250-08, entitled, “Standard Guide for Use of the

Petroleum Measurement Tabl es.” ASTM test method D1250-08 is incorporated by reference. This incorporation by reference was approved by the Director of the Federal Register in accordance 5 U.S.C. 552(a) and 1 CFR part 51. Copies may be obtained from the American Society for Testing and Materials, 100 Barr Harbor Dr., West Conshohocken, PA 19428-2959. Copies may be inspected at the Air Docket, EPA/DC , EPA West, Room 3334, 1301 Constitution Ave., NW, Washington, D.C., or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030 or go to: http://www.archives.gov/federal _register/code_of_federal_r egulations/ibr_locations.html.442 (iii) For other renewable fuels, an appropriate formula commonly accepted by the industry shall be used to standardize the actual

volume to 60 o F. Formulas used must be reported to EPA, and may be reviewed for appropriateness. (9) Use of radiocarbon dating test methods

. (i) Parties may use a radiocarbon da ting test method fo r determination

of the renewable fraction of a fuel R used to determine V RIN as provided in paragraph (d)(6)(i )(B) of this section. (ii) Parties must use Method B or Method C of ASTM D-6866-08, or

an alternative test method as approved by the EPA. ASTM D6866-08 is incorporated by reference. This incorporation by reference was approved by the Direct or of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR Part 51. A copy may be obtained from the American Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania. A copy may be inspected at the EPA Docket Center, Docket No. EPA-HQ-OAR-2005-0161, EPA/ DC, EPA West, Room 3334, 1301 Constitution Ave., NW, Washington DC, or at the National Archives and Records Administration (NARA). For information on the availability of this mate rial at NARA, call 866-272-6272, orgo to: http://www.archives.gov/federal-register/cfr/ibrlocations.html. (iii) The value of R may be based on: (A) A single test of an ag gregate sample of fuel; or (B) An average of tests of every batch of fuel. (iv) The aggregate sample of fuel must be comprised of a combination of samples from every batch of pa rtially renewable transportation fuel produced by the party over a period not to exceed one calendar

month. (A) All individual ba tch samples must be of equal volume. (B) The aggregate sample must be well mixed prior to testing. (C) A volume of each aggregate sa mple must be retained for a minimum of two years. The retained volume must be sufficient to permit two add itional tests to be conducted. (v) The value of R must be recalculated on at least a monthly basis based on the most recent aggreg ate sample or batch tests. (vi) The value of R calculated on the basis on the previous month's aggregate sample shall be used for the current month in the

determination of V RIN

.

(10) (i) For purposes of this section, electricity, biogas, an d propane that is used as transportation fuel is c onsidered renewable fuel and the producer may generate RINs if all of the following apply: (A) The renewable electricity, biogas, or propane is not placed in a commercial distribution system along with fuels

derived from nonrenewable feedstocks.443 (B) The fuel is produced from renewable biomass. (C) The fuel producer has entered into a written contract for the sale and use as transportation fuel of a specific quantity of electricity, biogas, or propane. (ii) Electricity that is generated by co-firing a combination of renewable biomass and fossil fuel may generate RINs only for the portion attributable to the rene wable biomass portion, using the procedure described in paragraph (f)(4) of this section.

(11) (i) For purposes of this section, electricity, natural gas and propane that is made available through commercial distribution systems and used for transportation is considered deri ved from renewable biomass and the producer may generate RINs if: (A) The fuel producer has entered into a written contract for the sale of a specific quantity of fuel derived from renewable

biomass sources and that such fuel has been introduced into a commercial distribution system (e.g., pipeline, transmission line); and (B) The commercial distribution system into which the fuel is introduced ultimately serves a transportation fueling facility. (ii) With respect to natural gas used for transportation, the following

conditions must be met: (A) The volume of biogas has been gathered, processed and injected into a common carrier pipeline and delivered to the transportation fueling facility and withdrawn from the pipeline in a manner and timing consistent with the transport of fuel between th e injection and withdrawal points; (B) The volume and heat content of biogas injected into the pipeline and the volume of gas used as transportation fuel are measured by continuous metering. (iii) The fuel used for transportation purposes is considered produced from renewable biomass only to the extent that the amount of fuel used at the transportation fuelin g facility matches the amount of

fuel derived from biomass that th e producer contracted to have placed into the commercial distribution system. (iv) Electricity that is generate d by co-firing a combination of renewable biomass and fossil fuel may generate RINs only for the portion attributable to the rene wable biomass portion, using the procedure described in paragraph (f)(4) of this section.

§ 80.1427 How are RINs used to demonstrate compliance?

(a) Renewable Volume Obligations.444 (1) Except as specified in paragraph (b) of this section or §80.1455, each party that is an obligated party under §80.1406 and is obligated to meet the Renewable Volume Obligations under §80.1407, or each party that is an exporter of renewable fuels that is obligated to meet Renewable Volume Obligations under §80.1430, must demonstrate pursuant to §80.1452(a)(1) that it is retiring for compliance purposes a sufficient number of RINs to satisfy the following equations:

(i) Cellulosic biofuel

.

( ∑ RINNUM) CB,i + ( ∑ RINNUM) CB,i-1 = RVO CB,i

Where:

( ∑ RINNUM) CB,i = Sum of all owned gallon-RINs that are valid for use in complying with the cellulosic biofuel RVO, were generated in year i, and are being applied towards the RVO CB,i , in gallons. ( ∑ RINNUM) CB,i-1 = Sum of all owned gallon-RINs that are valid for use in complying with the cellulosic biofuel RVO, were generated in year i-1, and are being applied towards the RVO CB,i , in gallons.

RVO CB,i = The Renewable Volume Obligation for cellulosic biofuel for the obligated party or renewable fuel exporter for calendar year i, in gallons, pursuant to §80.1407 or §80.1430.

(ii) Biomass-based diesel

.

( ∑ RINNUM) BBD,i + ( ∑ RINNUM) BBD,i-1 = RVO BBD,i

Where:

( ∑ RINNUM) BBD,i = Sum of all owned gallon-RINs that are valid for use in complying with the biomass-based diesel RVO, were generated in year i, and are being applied towards the RVO BBD,i , in gallons. ( ∑ RINNUM) BBD,i-1 = Sum of all owned gallon-RINs that are valid for use in complying with the biomass-based diesel RVO, were generated in year i-1, and are being applied towards the RVO BBD,i , in gallons.

RVO BBD,i = The Renewable Volume Obligation for biomass-based diesel for the obligated party or renewable fuel exporter for calendar year i after 2010, in gallons, pursuant to §80.1407 or §80.1430.445 (iii) Advanced biofuel

.

( ∑ RINNUM) AB,i + ( ∑ RINNUM) AB,i-1 = RVO AB,i

Where:

( ∑ RINNUM) AB,i = Sum of all owned gallon-RINs that are valid for use in complying with the advanced biofuel RVO, were generated in year i, and are being applied towards the RVO AB,i , in gallons. ( ∑ RINNUM) AB,i-1 = Sum of all owned gallon-RINs that are valid for use in complying with the advanced biofuel RVO, were generated in year i-1, and are being applied towards the RVO AB,i , in gallons.

RVO AB,i = The Renewable Volume Obligation for advanced biofuel for the obligated party or renewable fuel exporter for calendar year i, in gallons, pursuant to §80.1407 or §80.1430.

(iv) Renewable fuel

.

( ∑ RINNUM) RF,i + ( ∑ RINNUM) RF,i-1 = RVO RF,i

Where:

( ∑ RINNUM) RF,i = Sum of all owned gallon-RINs that are valid for use in complying with the renewable fuel RVO, were generated in year i, and are being applied

towards the RVO RF,i , in gallons. ( ∑ RINNUM) RF,i-1 = Sum of all owned gallon-RINs that are valid for use in complying with the renewable fuel RVO, were generated in year i-1, and are being applied towards the RVO RF,i , in gallons.

RVO RF,i = The Renewable Volume Obligation for renewable fuel for the obligated party or renewable fuel exporter for calendar year i, in gallons, pursuant to §80.1407 or §80.1430.

(2) Except as described in paragraph (a)(4) of this section, RINs that are valid for use in complying with each Renewable Volume Obligation are determined by

their D codes. (i) RINs with a D code of 3 or 7 are valid for compliance with the

cellulosic biofuel RVO. (ii) RINs with a D code of 4 or 7 are valid for compliance with the

biomass-based diesel RVO.446 (iii) RINs with a D code of 3, 4, 5, or 7 are valid for compliance with the

advanced biofuel RVO. (iv) RINs with a D code of 3, 4, 5, 6, or 7 are valid for compliance with the

renewable fuel RVO. (3) A party may use the same RIN to demonstrate compliance with more than one RVO so long as it is valid for compliance with all RVOs to which it is applied. (4) For purposes of demonstrating co mpliance for calendar years 2010 or 2011, RINs generated pursuant to §80.1126 that are not used for compliance purposes for calendar year 2009 or earlier may be used for compliance in 2010 or 2011, as follows, insofar as permi ssible pursuant to paragraphs (a)(5) and (a)(7)(iii) of this section: (i) A RIN generated pursuant to §80.1126 with a D code of 2 and an RR code of 15 or 17 is deemed equivale nt to a RIN generated pursuant to §80.1426 having a D code of 4. (ii) A RIN generated pursuant to §80.1126 with a D code of 1 is deemed equivalent to a RIN generated pur suant to §80.1426 having a D code

of 3. (iii) All other RINs ge nerated pursuant to §80.1126 are deemed equivalent to RINs generated pursuant to §80.1426 having D codes of 6. (iv) A RIN generated pursuant to §80.1126 that was retired pursuant to §80.1129(e) because the associated vol ume of fuel was not used as motor vehicle fuel may be reinstated pursuant to §80.1429(f)(1). (5) The value of ( ∑ RINNUM) i-1 may not exceed values determined by the following inequalities except as provided in paragraph (a)(7)(iv) of this section and §80.1442(d):

( ∑ RINNUM) CB,i-1 ≤ 0.20 * RVO CB,i

( ∑ RINNUM) BBD,i-1 ≤ 0.20 * RVO BBD,i

( ∑ RINNUM) AB,i-1 ≤ 0.20 * RVO AB,i

( ∑ RINNUM) RF,i-1 ≤ 0.20 * RVO RF,i

(6) Except as provided in paragraph (a)(7) of this section: (i) RINs may only be used to demons trate compliance with the RVOs for the calendar year in which they were generated or the following calendar year. (ii) RINs used to demonstrate compliance in one year cannot be used to demonstrate compliance in any other year.

(7) Biomass-based diesel in 2010

. (i) Prior to determining compliance with the 2010 biomass-based diesel RVO, obligated parties may reduce the value of RVO BBD,2010 by an amount equal to the sum of all 2008 and 2009 RINs that they used for447 compliance purposes for calendar year 2009 which have a D code of 2

and an RR code of 15 or 17. (ii) For calendar year 2010 only, the following equation shall be used to determine compliance with the biomass-based diesel RVO instead of the equation in paragraph (a)(1)(ii) of this section:

( ∑ RINNUM) BBD,2010 + ( ∑ RINNUM) BBD,2009 + ( ∑ RINNUM) BBD,2008 = RVO BBD,2010

Where:

( ∑ RINNUM) BBD,2010 = Sum of all owned gallon-RINs that are valid for use in complying with the biomass-based diesel RVO, were generated in year 2010, and are being applied towards the

RVO BBD,2010 , in gallons. ( ∑ RINNUM) BBD,2009 = Sum of all owned gallon-RINs that are valid for use in complying with the biomass-based diesel RVO, were generated in year 2009, have not previously been used for compliance purposes, and are being applied

towards the RVO BBD,2010 , in gallons. ( ∑ RINNUM) BBD,2008 = Sum of all owned gallon-RINs that are valid for use in complying with the biomass-based diesel RVO, were generated in year 2008, have not previously been used for compliance purposes, and are being applied

towards the RVO BBD,2010 , in gallons.

RVO BBD,2010 = The Renewable Volume Obligation for biomass-based diesel for the obligated party or renewable fuel exporter for calendar year 2010, in gallons, pursuant to §80.1407 or §80.1430, as adjusted by paragraph (a)(7)(i)

of this section.

(iii) The values of ( ∑ RINNUM) 2008 and ( ∑ RINNUM) 2009 may not exceed values determined by both of the following inequalities:

( ∑ RINNUM) BBD,2008 ≤ 0.087 * RVO BBD,2010

( ∑ RINNUM) BBD,2008 + ( ∑ RINNUM) BBD,2009 ≤ 0.20 * RVO BBD,2010

(8) A party may only use a RIN for purposes of meeting the requirements of paragraph (a)(1) of this section if that RIN is a separated RIN with a K code of 2 obtained in accordance with §§ 80.1428 and 80.1429.448 (9) The number of gallon-RINs associated with a given batch-RIN that can be used for compliance with the RVOs shall be calculated from the following

formula:

RINNUM = EEEEEEEE - SSSSSSSS + 1

Where:

RINNUM = Number of gallon-RINs associated with a batch-RIN, where each gallon-RIN represents one gallon of renewable fuel for compliance purposes. EEEEEEEE = Batch-RIN component identifying the last gallon-RIN

associated with the batch-RIN. SSSSSSSS = Batch-RIN component identifying the first gallon-RIN

associated with the batch-RIN.

(b) Deficit carryovers. (1) An obligated party or an exporter of renewable fuel that fails to meet the requirements of paragraph (a)(1) or (a)(5) of this section for calendar year i is permitted to carry a deficit into year i+1 under the following conditions: (i) The party did not carry a deficit into calendar year i from calendar year

i-1 for the same RVO. (ii) The party subsequently meets th e requirements of paragraph (a)(1) of this section for calendar year i+1 and carries no deficit into year i+2

for the same RVO. (iii) For compliance with the biomass-based diesel RVO in calendar year 2011, the deficit which is carried ove r from 2010 is no larger than 57% of the party's 2010 biomass-based dies el RVO as determined prior to any adjustment applied pursuant to paragraph (a)(7)(i) of this section.

(2) A deficit is calculated according to the following formula:

D i = RVO i - [( ∑ RINNUM) i + ( ∑ RINNUM) i-1 ]

Where:

D i = The deficit, in gallons, generated in calendar year i that must be carried over to year i+1 if allowed to do so pursuant to paragraph (b)(1) of this section.

RVO i = The Renewable Volume Obligation for the obligated party or renewable fuel exporter for calendar year i, in gallons. ( ∑ RINNUM) i = Sum of all acquired gallon-RI Ns that were generated in year i and are being applied towards the RVO i , in gallons.449 ( ∑ RINNUM) i-1 = Sum of all acquired gallon-RI Ns that were generated in year i-1 and are being applied towards the RVO i , in gallons.

§ 80.1428 General requirements for RIN distribution.

(a) RINs assigned to vol umes of renewable fuel. (1) Assigned RIN , for the purposes of this subpart, means a RIN assigned to a volume of renewable fuel pursuant to §80.1426(e) with a K code of 1. (2) Except as provided in §80.1429, no party can separate a RIN that has been assigned to a batch pursuant to §80.1426(e). (3) An assigned RIN cannot be tran sferred to another party without simultaneously transferring a volume of renewable fuel to that same party. (4) No more than 2.5 assigned gallon-RINs with a K code of 1 can be transferred to another party with ever y gallon of renewable fuel transferred to that same party. (5) (i) On each of the dates listed in paragraph (a)(5)(ii) of this section in any calendar year, the following equation must be satisfied for assigned RINs and volumes of renewable fuel owned by a party:

∑ (RIN) D ≤ ∑ (V si * 2.5) D

Where:

D = Applicable date. ∑ (RIN) D = Sum of all assigned gallon-RINs with a K

code of 1 that are owned on date D. (V si ) D = Volume i of renewa ble fuel owned on date D, standardized to 60 o F, in gallons. ∑ (V si * 2.5) D = Sum of all volumes of renewable fuel owned on date D, multiplied by an equivalence

value of 2.5.

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

December 31. (6) Any transfer of ownership of a ssigned RINs must be documented on product transfer documents generated pursuant to §80.1453. (i) The RIN must be recorded on the product transfer document used to transfer ownership of the volum e of renewable fuel to another

party; or (ii) The RIN must be recorded on a separate product transfer document transferred to the same party on the same day as the product

transfer document used to tran sfer ownership of the volume of

renewable fuel.450 (b) RINs separated from volumes of renewable fuel. (1) Separated RIN , for the purposes of this subpart, means a RIN with a K code of 2 that has been separate d from a volume of renewable fuel pursuant to §80.1429. (2) Any party that has registered pursuant to §80.1450 can hold title to a separated RIN. (3) Separated RINs can be transferred from one party to another any number

of times.

(c) RIN expiration. Except as provided in §80.1427(a)(7), a RIN is valid for compliance during the calendar year in which it was generated, or the following calendar year. Any RIN that is not used for compliance purposes for the calendar year in which it was generated, or for the following calendar year, will be considered an expired RIN. Pursuant to §80.1431(a)(3), an expired RIN that is used for compliance will be considered an invalid RIN.

(d) Any batch-RIN can be divided by its owner into multiple batch-RINs, each representing a smaller number of gallon-RI Ns, if all of the following conditions

are met: (1) All RIN components other than SSSSSSSS and EEEEEEEE are identical for the original parent and newly formed daughter RINs.(2) The sum of the gallon-RINs associated with the multiple daughter batchRINs is equal to the gallon-RINs asso ciated with the parent batch-RIN.

§ 80.1429 Requirements for separating RINs from volumes of renewable fuel.

(a) (1) Separation of a RIN from a volume of renewable fuel means termination of the assignment of the RIN to a volume of renewable fuel. (2) RINs that have been separated fro m volumes of renewable fuel become separated RINs subject to the provisions of §80.1428(b).

(b) A RIN that is assigned to a volume of renewable fuel can be separated from that volume only under one of the following conditions: (1) Except as provided in paragraph (b)(7) of this section, a party that is an obligated party according to §80.1406 must separate any RINs that have been assigned to a volume of renewable fuel if that party owns that

volume. (2) Except as provided in paragraph (b)(6) of this section, any party that owns

a volume of renewable fuel must se parate any RINs that have been assigned to that volume once the volume is blended with gasoline or diesel to produce a transportation fuel, heating oil, or jet fuel. A party may separate up to 2.5 RINs per gallon of renewable fuel. (3) Any party that exports a volume of re newable fuel must separate any RINs that have been assigned to the exported volume.451 (4) Any party that produces, imports, ow ns, sells, or uses a volume of neat renewable fuel, or a blend of renewable fuel and diesel fuel, must separate any RINs that have been assigned to that volume of neat renewable fuel or

that blend if: (i) The party designates the neat renewable fuel or blend as transportation fuel, heating oil, or jet fuel; and (ii) The neat renewable fuel or ble nd is used without further blending, in the designated form, as trans portation fuel, heating oil, or jet

fuel. (5) Any party that produces, imports, owns, sells, or uses a volume of renewable electricity, biogas, or propane must separate any RINs that have been assigned to that volume of rene wable electricity, biogas, or propane

if: (i) The party designates the renewable electricity, biogas, or propane as transportation fuel; and (ii) The renewable electricity, bi ogas, or propane is used as transportation fuel. (6) RINs assigned to a volume of bi odiesel (mono-alkyl ester) can only be separated from that volume pursuant to paragraph (b)(2) of this section if

such biodiesel is blended into diesel fuel at a concentration of 80 volume percent biodiesel (mono-alkyl ester) or less. (i) This paragraph (b)(6) shall not apply to obligated parties or exporters of renewable fuel. (ii) This paragraph (b)(6) shall not apply to parties meeting the requirements of paragraph (b)(4) of this section. (7) For RINs that an obligated party ge nerates for renewable fuel that has not been blended into gasoline or diesel to produce a transportation fuel, the obligated party can only separate such RINs from volumes of renewable fuel if the number of gallon-RINs sepa rated in a calendar year is less than or equal to a limit set as follows: (i) For RINs with a D code of 3, the limit shall be equal to RVO CB

. (ii) For RINs with a D code of 4, the limit shall be equal to RVO BBD

. (iii) For RINs with a D code of 7, the limit shall be equal to the larger

of RVO BBD or RVO CB

. (iv) For RINs with a D code of 5, the limit shall be equal to RVO AB - RVO CB - RVO BBD. (v) For RINs with a D code of 6, the limit shall be equal to RVO RF - RVO AB

. (8) Small refiners and small refineries may only separate RINs that have been assigned to volumes of renewable fuel that the party blends into gasoline or diesel to produce transportation fuel , or that the party used as heating oil or jet fuel. This paragraph (b)( 8) shall apply only under the following

conditions: (i) During the calendar year in which the party has received a small refinery exemption under §80.1441 or a small refiner exemption under §80.1442, and452 (ii) The party is not otherwise an obligated party during the period of time that the small refinery or small refiner exemption is in effect.

(c) 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.

(d) Upon and after separation of a RIN from its associated volume of renewable fuel, the separated RIN must be accompanied by documentation when transferred. (1) When transferred, the separated RI N shall appear on documentation that includes all the following information: (i) The name and address of the transferor and transferee. (ii) The transferor’s and transferee’s EPA company registration

numbers. (iii) The date of the transfer. (iv) A list of sepa rated RINs transferred. (2) [Reserved]

(e) Upon and after separation of a RIN from its associated volume of renewable fuel, product transfer documents used to tr ansfer ownership of the volume must continue to meet the requ irements of §80.1453(a)(6)(iii).

(f) Any party that uses a renewable fuel in any application that is not transportation fuel, heating oil, or jet fuel, or designat es a renewable fuel for use as something other than transportation fuel, heating o il, or jet fuel, must retire any RINs received with that renewable fuel and report the retired RINs in the applicable reports under §80.1451.

(g) Any 2009 RINs retired pursuant to §80.1129 because renewable fuel was used in a non-motor vehicle application, heating oil, or jet fuel may be reinstated by the retiring party for sale or use to demonstrate compliance with a 2010 RVO.

§ 80.1430 Requirements for exporters of renewable fuels.

(a) Any party that owns any amount of renewable fuel, whether in its neat form or blended with gasoline or diesel, that is exported from any of the regions described in §80.1426(a) shall acquire sufficient RINs to offset all applicable Renewable Volume Obligations representing the exported renewable fuel.

(b) Renewable Volume Obligations. An exporter of renewable fuel shall determine its Renewable Volume Obligations from the volumes of the renewable fuel exported. (1) For exported volumes of biodies el (mono-alkyl ester) or non-ester renewable diesel, a renewable fuel exporter's Renewable Volume453 Obligation for biomass-based diesel shall be calculated according to the following formula:

RVO BBD,i = ∑ (VOL k * EV k ) i + D BBD,i-1

Where:

RVO BBD,i = The Renewable Volume Obligation for biomass-based diesel for the exporter for calendar year i, in gallons.

k = A discrete volume of biodie sel (mono-alkyl ester) or non-ester

renewable diesel fuel.

VOL k = The standardized volume of discrete volume k of exported biodiesel (mono-alkyl ester) or non -ester renewable diesel, in gallons, calculated in accordance with §80.1426(d)(11).

EV k = The equivalence value associ ated with discrete volume k. ∑ = Sum involving all volumes of biodiesel (mono-alkyl ester) or nonester renewable diesel exported.

D BBD,i-1 = Deficit carryover from the previous year for biomass-based diesel, in gallons.

(2) For exported volumes of all renewabl e fuels, a renewable fuel exporter's Renewable Volume Obligation for total renewable fuel shall be calculated according to the following formula:

RVO RF,i = ∑ (VOL k * EV k ) i + D RF,i-1

Where:

RVO RF,i = The Renewable Volume Obligation for renewable fuel for the exporter for calendar year i, in gallons of renewable fuel.

k = A discrete volume of renewable fuel.

VOL k = The standardized volume of discrete volume k of exported renewable fuel, in gallons, cal culated in accordance with §80.1426(d)(11).

EV k = The equivalence value associ ated with discrete volume k. ∑ = Sum involving all volumes of renewable fuel exported.

D RF,i-1 = Deficit carryover from the previous year for renewable fuel, in gallons.

(3) (i) If the equivalence va lue for a volume of exported renewable fuel can be determined pursuant to §80.1415 based on its composition, then the appropriate equivalen ce value shall be used in the calculation of the exporter's Renewable Volume Obligations. (ii) If the composition of a volume of exported renewable fuel cannot be determined, the value of EV k shall be 1.0.454 (4) For renewable fuels that are in the form of a blend with gasoline or diesel at the time of export, the exporter shall determine the volume of exported renewable fuel based on one of the following: (i) Information from the supplier of the blend of the concentration of

renewable fuel in the blend. (ii) Determination of the renewable portion of the blend using Method B or Method C of ASTM D-6866-08, or an alternative test method as approved by the EPA. ASTM D-6866-08 is incorporated by reference. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR Part 51. A copy may be obtained from the American Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania. A copy may beinspected at the EPA Docket Center, Docket No. EPA-HQ-OAR2005-0161, EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW, Washington DC, or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 866-272-6272, or go to: http://www.archives.gov/federal-re gister/cfr/ibr-locations.html. (iii) Assuming the maximum concentration of the renewable fuel in the blend as allowed by law and/or regulation.

(c) Each exporter of renewable fuel must demonstrate compliance with its RVOs using RINs it has acquired, pursuant to §80.1427.

§ 80.1431 Treatment of invalid RINs.

(a) Invalid RINs

. (1) An invalid RIN is a RIN that is any of the following: (i) A duplicate of a valid RIN. (ii) Was based on incorrect volumes or volumes that have not been

standardized to 60 °F. (iii) Has expired, as provided in §80.1428(c). (iv) Was based on an inco rrect equivalence value. (v) Deemed invalid under §80.1467(g). (vi) Does not represent renewable fuel as defined in §80.1401. (vii) Was assigned an incorrect “D” code value under §80.1426(d) for

the associated volume of fuel. (viii) Was otherwise improperly generated. (2) In the event that the same RIN is transferred to two or more parties, all such RINs are deemed invalid, unl ess EPA in its sole discretion determines that some portion of these RINs is valid.

(b) In the case of RINs that are i nvalid, the following provisions apply:455 (1) Upon determination by any party th at RINs owned are invalid, the party must adjust its records, reports, and compliance calculations in which the invalid RINs were used as necessary to reflect the deletion of the invalid RINs. The party must retire the invalid RINs in the applicable RIN transaction reports under §80.1451(c)(2) fo r the quarter in which the RINs

were determined to be invalid. (2) Invalid RINs cannot be used to achieve compliance with the Renewable Volume Obligations of an obligated party or exporter, regardless of the party’s good faith belief that the RINs were valid at the time they were acquired. (3) Any valid RINs remaining after deleting invalid RINs must first be applied to correct the transfer of i nvalid RINs to another party before applying the valid RINs to meet the party’s Renewable Volume Obligations at the end of the compliance year.

§ 80.1432 Reported spillage or di sposal of renewable fuel.

(a) A reported spillage or disposal under this subpart means a spillage or disposal of renewable fuel associated with a requirement by a federal, state, or local authority to report the spillage or disposal.

(b) Except as provided in paragraph (c) of this section, in the event of a reported spillage or disposal of any volume of renewable fuel, the owner of the renewable

fuel must retire a number of RINs co rresponding to the volume of spilled or disposed of renewable fuel multiplied by its equivalence value. (1) If the equivalence value for the spilled or disposed of volume may be determined pursuant to §80.1415 based on its composition, then the appropriate equivalence value shall be used. (2) If the equivalence value for a spilled or disposed of volume of renewable fuel cannot be determined, the equivalence value shall be 1.0.

(c) If the owner of a volume of renewable fuel that is spilled or disposed of and reported establishes that no RINs were ge nerated to represent the volume, then no

RINs shall be retired.

(d) A RIN that is retired under paragraph (b) of this section: (1) Must be reported as a retired RIN in the applicable reports under §80.1451. (2) May not be transferred to another party or used by any obligated party to demonstrate compliance with the party’s Renewable Volume Obligations.

§§ 80.1433-80.1439 [Reserved]456 § 80.1440 What are the provisions for blend ers who handle and blend less than 125,000 gallons of renewable fuel per year?

(a) Renewable fuel blenders who handl e and blend less than 125,000 gallons of renewable fuel per year, and who do not have Renewable Volume Obligations, are permitted to delegate their RIN-rela ted responsibilities to the party directly upstream of them who supplied th e renewable fuel for blending.

(b) The RIN-related responsibilities that may be delegated directly upstream include all the following: (1) The RIN separation requirements of §80.1429. (2) The reporting requirements of §80.1451. (3) The recordkeeping requirements of §80.1454. (4) The attest engageme nt requirements of §80.1464.

(c) For upstream delegation of RIN-relate d responsibilities, both parties must agree on the delegation, and a quarterly written stat ement signed by both parties must be included with the reporting party’s reports under §80.1451. (1) Both parties must keep copies of the signed quarterly written statement agreeing to the upward delegation for 5 years. (2) Parties delegating their RIN respons ibilities upward shall keep copies of their registration forms as submitted to EPA. (3) If EPA finds that a renewable fuel blender improperly delegated its RINrelated responsibilities under this subpa rt M, the blender will be held accountable for any RINs separated and will be subject to all RIN-related responsibilities under this subpart.

(d) Renewable fuel blenders who handl e and blend less than 125,000 gallons of renewable fuel per year and who do not opt to delegate their RIN-related responsibilities will be subject to all requirements stated in paragraph (b) of this section, and all other applicable requirements of this subpart M.

§ 80.1441 Small refinery exemption.

(a) (1) Transportation fuel produced at a refinery by a refiner, or foreign refiner (as defined at §80.1465(a)), is exempt from January 1, 2010 through December 31, 2010 from the renewabl e fuel standards of §80.1405; and the refinery, or foreign refinery, is exempt from the requirements that apply to obligated parties under this s ubpart M if that refinery meets the definition of a small refinery under §80.1401 for calendar year 2006. (2) This exemption shall apply unless a refiner chooses to waive this exemption (as described in paragraph (f) of this section), or the exemption is extended (as described in pa ragraph (e) of this section). (3) For the purposes of this section, th e term “refiner” shall include foreign

refiners.457 (4) This exemption shall only apply to refineries that process crude oil through refinery processing units. (5) The small refinery exemption is effective immediately, except as specified in paragraph (b)(3) of this section. (6) Refiners who qualified as sm all under 40 CFR 80.1141 do not need to reapply for small refiner status under th is subpart M. This paragraph (a) does not supersede §80.1141.

(b) (1) A refiner owning a small refinery must submit a verification letter to EPA containing all of the following information: (i) The annual average aggregate daily crude oil throughput for the period January 1, 2006 through Dece mber 31, 2006 (as determined by dividing the aggregate throughput for the calendar year by the number 365). (ii) A letter signed by the president, chief operating or chief executive officer of the company, or his/her designee, stating that the

information contained in the letter is true to the best of his/her knowledge, and that the refinery was small as of December 31,

2006. (iii) Name, address, phone number, facsimile number, and e-mail address of a corporate contact person. (2) Verification letters must be s ubmitted by April 1, 2010 to one of the addresses listed in paragr aph (h) of this section. (3) For foreign refiners the small refi nery exemption shall be effective upon approval, by EPA, of a sm all refinery application. The application must contain all of the elements required fo r small refinery verification letters (as specified in paragraph (b)(1) of this section), must satisfy the provisions of §80.1465(f) through (h) a nd (o), and must be submitted by April 1, 2010 to one of the addresses liste d in paragraph (h) of this section. (4) Small refinery verification letters are not required for those refiners who have already submitted a verification le tter under subpart K of this Part 80.

(c) If EPA finds that a refiner provided fa lse or inaccurate information regarding a refinery’s crude throughput (pursuant to pa ragraph (b)(1)(i) of this section) in its small refinery verification letter, the exemption will be void as of the effective date of these regulations.

(d) If a refiner is complying on an aggregate basis for multiple refineries, any such refiner may exclude from the calculation of its Renewable Volume Obligations (under §80.1407) transportation fuel from any refinery receiving the small refinery exemption under paragraph (a) of this section.

(e) (1) The exemption period in para graph (a) of this secti on shall be extended by the Administrator for a period of not less than two additional years if a study by the Secretary of Energy determines that compliance with the458 requirements of this subpart woul d impose a disproportionate economic hardship on a small refinery. (2) A refiner may petition the Administrator for an extension of its small refinery exemption, based on dispropor tionate economic hardship, at any

time. (i) A petition for an extension of the small refinery exemption must specify the factors that demons trate a disproportionate economic hardship and must provide a de tailed discussion regarding the hardship the refinery would face in producing transportation fuel meeting the requirements of §80.1405 and the date the refiner anticipates that compliance with the requirements can reasonably be achieved at the small refinery. (ii) The Administrator shall act on such a petition not later than 90 days after the date of receipt of the petition.

(f) At any time, a refiner with an approve d small refinery exemption under paragraph (a) of this section may waive that exemption upon notification to EPA. (1) A refiner’s notice to EPA that it intends to waive its small refinery exemption must be received by November 1 to be effective in the next compliance year. (2) The waiver will be effective beginning on January 1 of the following calendar year, at which point the gasoline produced at that refinery will be subject to the renewable fuels standard of §80.1405 and all other requirements that apply to obligat ed parties under this Subpart M. (3) The waiver must be sent to EPA at one of the addresses listed in paragraph (h) of this section.

(g) A refiner that acquires a refinery from e ither an approved small refiner (as defined under §80.1442(a)) or another refiner with an approved small refinery exemption under paragraph (a) of this section sha ll notify EPA in writing no later than 20 days following the acquisition.

(h) Verification letters under paragraph (b) of this section, petitions for small refinery hardship extensions under paragraph (e) of this section, and small refinery exemption waivers under paragraph (f) of this section shall be sent to one of the following addresses: (1) For US mail: U.S. EPA, Attn: RFS2 Program, 6406J, 1200 Pennsylvania Avenue, NW, Washington, DC 20460. (2) For overnight or courier services: U.S. EPA, Attn: RFS2 Program, 6406J, 1310 L Street, NW, 6th floor, Washington, DC 20005. (202) 343-9038.

§ 80.1442 What are the provisions for sm all refiners under the RFS program?

(a) (1) To qualify as a small refine r under this section, a refiner must meet all of the following criteria:459 (i) The refiner produced transporta tion fuel at its refineries by processing crude oil through refinery processing units from January 1, 2006 through December 31, 2006. (ii) The refiner employed an av erage of no more than 1,500 people, based on the average number of employees for all pay periods for calendar year 2006 for all subsidiary companies, all parent companies, all subsidiaries of the parent companies, and all joint

venture partners. (iii) The refiner had a corporate-average crude oil capacity less than or equal to 155,000 barrels per cal endar day (bpcd) for 2006. (2) For the purposes of this section, th e term “refiner” shall include foreign

refiners. (3) Refiners who qualified as sm all under 40 CFR 80.1142 do not need to reapply for small refiner status under th is subpart M. This paragraph (a) does not supersede §80.1142.

(b) Applications for small refiner status. (1) Applications for small refine r status under this section must be submitted to EPA by April 1, 2010. (2) Small refiner status applications under this section must include all the following information for the refiner and for all subsidiary companies, all parent companies, all subsidiaries of the parent companies, and all joint

venture partners: (i) A listing of the name and address of each company location where any employee worked for the period January 1, 2006 through December 31, 2006. (ii) The average number of employees at each location based on the number of employees for each pay period for the period January 1, 2006 through December 31, 2006. (iii) The type of business activ ities carried out at each location. (iv) For joint ventures, the total number of employees includes the combined employee count of all corporate entities in the venture. (v) For government-owned refiners, the total employee count includes all government employees. (vi) The total corporate crude oil capacity of each refinery as reported to the Energy Information Administration (EIA) of the U.S. Department of Energy (DOE), for the period January 1, 2006 through December 31, 2006. The information submitted to EIA is presumed to be correct. In cases where a company disagrees with this information, the company ma y petition EPA with appropriate data to correct the record when the company submits its application. (vii) A letter signed by the president, chief operating or chief executive officer of the company, or his/her designee, stating that the information contained in the appli cation is true to the best of460 his/her knowledge, and that the company owned the refinery as of December 31, 2006. (viii) Name, address, phone numb er, facsimile number, and e-mail address of a corporate contact person. (3) In the case of a refiner who acquire s or reactivates a refinery that was shutdown or non-operational between January 1, 2005 and January 1, 2006, the information required in paragr aph (b)(2) of this section must be provided for the time period since the refiner acquired or reactivated the refinery. (4) EPA will notify a refiner of its approval or disapproval of the application for small refiner status by letter. (5) For foreign refiners the small re finer exemption shall be effective upon approval, by EPA, of a small refine r application. The application must contain all of the elements required for small refiner status applications (as specified in paragraph (b)(2) of this s ection), must satisfy the provisions of §80.1465(f) through (h) and (o), must demonstrate compliance with the crude oil capacity criterion of paragr aph (a)(1)(iii) of this section, and must be submitted by April 1, 2010 to one of the addresses listed in paragraph (j) of this section.

(c) Small refiner temporary exemption. (1) Transportation fuel produced by a refi ner, or foreign refiner (as defined at §80.1465(a)), is exempt from January 1, 2010 through December 31, 2010

from the renewable fuel standards of §80.1405 and the requirements that apply to obligated parties under this subpa rt if the refiner or foreign refiner meets all of the following criteria: (i) The refiner produced transporta tion fuel at its refineries by processing crude oil through refinery processing units from January 1, 2006 through December 31, 2006. (ii) The refiner employed an av erage of no more than 1,500 people, based on the average number of employees for all pay periods for calendar year 2006 for all subsidiary companies, all parent companies, all subsidiaries of the parent companies, and all joint

venture partners. (iii) The refiner had a corporate-average crude oil capacity less than or equal to 155,000 barrels per cal endar day (bpcd) for 2006. (2) The small refiner exemption shall apply to an approved small refiner

unless that refiner chooses to waiv e this exemption (as described in paragraph (d) of this section).

(d) (1) A refiner with approved small refiner status may, at any time, waive the small refiner exemption under para graph (c) of this section upon

notification to EPA. (2) A refiner’s notice to EPA that it intends to waive the small refiner exemption must be received by November 1 of a given year in order for the waiver to be effective for the following calendar year. The waiver will461 be effective beginning on January 1 of the following calendar year, at which point the refiner will be subject to the renewable fuel standards of §80.1405 and the requirements that apply to obligated parties under this subpart. (3) The waiver must be sent to EPA at one of the addresses listed in paragraph (j) of this section.

(e) Refiners who qualify as sm all refiners under this sec tion and subsequently fail to meet all of the qualifying criteria as set out in paragraph (a) of this section are disqualified as small refiners as of the effective date of this subpart, except as provided under paragraphs (d) and (e)(2) of this section. (1) In the event such disqualification occurs, the refiner shall notify EPA in writing no later than 20 days following the disqualifying event. (2) Disqualification under this paragraph (e) shall not apply in the case of a merger between two a pproved small refiners.

(f) If EPA finds that a refiner provided false or inaccurate information in its application for small refiner status unde r this subpart M, the refiner will be disqualified as a small refiner as of the effective date of this subpart.

(g) Any refiner that acquires a refinery from another refiner with approved small refiner status under paragraph (a) of th is section shall notify EPA in writing no later than 20 days following the acquisition.

(h) Extensions of the small refiner temporary exemption. (1) A small refiner may apply for an ex tension of the temporary exemption of paragraph (c)(1) of this section base d on a showing of all the following: (i) Circumstances exist that impose disproportionate economic hardship on the refiner and significantly affects the refiner’s ability to comply with the RFS standards. (ii) The refiner has made best efforts to comply with the requirements of this subpart. (2) A refiner must apply, and be approve d, for small refiner status under this

section. (3) A small refiner’s hardship application must include all the following

information: (i) A plan demonstrating how the refiner will comply with the requirements of §80.1405 (and all other requirements of this subpart applicable to obligated parties), as expeditiously as possible. (ii) A detailed description of the re finery configuration and operations including, at a minimum, all the following information: (A) The refinery's total crude capacity. (B) Total crude capacity of any other refineries owned by the same entity.462 (C) Total volume of gasoline and diesel produced at the refinery. (D) Detailed descriptions of efforts to comply. (E) Bond rating of the entity that owns the refinery. (F) Estimated investment needed to comply with the requirements of this subpart. (4) A small refiner shall notify EPA in writing of any changes to its situation between approval of the extension app lication and the e nd of its approved extension period. (5) EPA may impose reasonable conditi ons on extensions of the temporary exemption, including reducing the le ngth of such an extension, if

conditions or situations change between approval of the application and the end of the approved extension period.

(i) Applications for small refiner status , small refiner exemption waivers, or

extensions of the small re finer temporary exemption unde r this section must be sent to one of the following addresses: (1) For US Mail: U.S. EPA, Attn: RFS2 Program, 6406J, 1200 Pennsylvania Avenue, NW, Washington, DC 20460. (2) For overnight or courier services: U.S. EPA, Attn: RFS2 Program, 6406J, 1310 L Street, NW, 6th floor, Washington, DC 20005. (202) 343-9038.

§ 80.1443 What are the opt-in provisions for noncontiguous states and

territories?

(a) Alaska or a United States territory may petition the Administrator to opt-in to the program requirements of this subpart.

(b) The Administrator will approve the petition if it meets the provisions of paragraphs (c) and (d) of this section.

(c) The petition must be signed by the Governor of the state or his authorized representative (or the equivalent official of the territory).

(d) (1) A petition submitted under this section must be received by EPA by November 1 for the state or territory to be included in the RFS program in the next calendar year. (2) A petition submitted under this secti on should be sent to either of the following addresses: (i) For US Mail: U.S. EPA, Attn: RFS Program, 6406J, 1200 Pennsylvania Avenue, NW, Washington, DC 20460. (ii) For overnight or courier services: U.S. EPA, Attn: RFS Program, 6406J, 1310 L Street, NW, 6th floor, Washington, DC 20005. (202) 343-9038.463 (e) Upon approval of the pet ition by the Administrator: (1) EPA shall calculate the standards for the following year, including the total gasoline and diesel fuel volume fo r the state or territory in question. (2) Beginning on January 1 of the next calendar year, all gasoline and diesel fuel refiners and importers in the state or territory for which a petition has been approved shall be obligated parties as defined in §80.1406. (3) Beginning on January 1 of the next calendar year, all renewable fuel producers in the state or territory for which a petition has been approved shall, pursuant to §80.1426(a)(2), be required to generate RINs and comply with other requirements of this subpart M that are applicable to producers of renewable fuel.

§§ 80.1444-80.1448 [Reserved]

§ 80.1449 What are the Production Outlook Report requirements?

(a) A registered renewable fuel producer or importer, for each of its facilities, must submit all the following information, as applicable, to EPA by March 31 of each year beginning in, 2010: (1) The type, or types, of renewable fu el expected to be produced or imported at each facility owned by the rene wable fuel producer or importer. (2) The volume of each type of renewa ble fuel expected to be produced or imported at each facility. (3) The number of RINs expected to be generated by the renewable fuel producer or importer for each type of renewable fuel. (4) Information about all the following: (i) Existing and planned production capacity. (ii) Long-range plans for expansion of production capacity at existing

facilities or construction of new facilities. (iii) Feedstocks and production proce sses to be used at each production facility. (iv) Changes to the facility that would raise or lower emissions of any greenhouse gases from the facility. (5) For expanded production capacity that is planned or underway at each existing facility, or new production f acilities that are planned or underway, information on all the following, as available: (i) Strategic planning. (ii) Planning and front-end engineering. (iii) Detailed engineering and permitting. (iv) Procurement and construction. (v) Commissioning and startup. (6) Whether capital commitments have been made or are projected to be

made.464 (b) The information listed in paragraph (a) of this section shall include the reporting party’s best estimates for the five following calendar years.

(c) Production outlook reports mu st provide an update of the progress in each of the areas listed in paragraph (a) of this sec tion in comparison to information provided in previous year production outlook reports.

(d) Production outlook reports sh all be sent to one of the following addresses: (1) For US Mail: U.S. EPA, Attn: RFS2 Program- Production Outlook Reports, 6406J, 1200 Pennsylvania Avenue, NW, Washington, DC 20460. (2) For overnight or courier services: U.S. EPA, Attn: RFS2 ProgramProduction Outlook Reports, 6406J, 1310 L Street, NW, 6th floor, Washington, DC 20005. (202) 343-9038.

§ 80.1450 What are the registration requirements under the RFS program?

(a) General provisions. Any obligated party described in §80.1406, and any exporter of renewable fuel described in §80.1430, mu st provide EPA with the information specified for registration under §80.76, if su ch information has not already been provided under the provisions of this part. An obligated party or an exporter of

renewable fuel must receive EPA-issued identification numbers prior to engaging in any transaction involving RINs. Regi stration information may be submitted to EPA at any time after publication of this rule in the Federal Register, but must be submitted and accepted by the EPA by April 1, 2010, or 60 days prior to RIN ownership, whichever da te comes later.

(b) Producers. Any foreign or domestic producer of renewable fuel, regardless of whether RINs will be generated for that renewable fuel, must provide EPA the information specified under §80.76 if such information has not already been provided under the provisions of this part , and must receive EPA-issued company and facility identification numbers prior to generating or assigning any RINs. All the following registration information may be submitted to EPA at any time after promulgation of this rule in the Federal Register, but must be submitted and accepted by the EPA by April 1, 2010, or 60 days prior to a producer producing any renewable fuel, whichever date co mes later, subject to this subpart: (1) A description of the types of rene wable fuels and co-products produced at the facility and all the following for each product type: (i) A list of all the feedstocks the facility is capable of utilizing without significant modification to the existing facility. (ii) A description of the facility’s renewable fuel production processes. (iii) The facility’s renewable fuel production capacity as specified in applicable air permits issued by the U.S. Environmental Protection Agency, state, or local air pollution control agencies and that govern the construction and/or operation of the renewable fuel facility:465 (A) Issued or revised no later than December 19, 2007 for

facilities descri bed in §80.1403(b). (B) Issued or revised no later than December 31, 2009 for

facilities descri bed in §80.1403(c). (iv) Copies of applicable air permits issued by the U.S. Environmental Protection Agency, state, or local air pollution control agencies that provide evidence that such permits were issued prior to December 19, 2007 for facilities de scribed in §80.1403(b), and prior to December 31, 2009 for facilities descri bed in §80.1403(c). (v) A list of the facility’s process energy sources. (vi) Records relevant to generation of RINs from: (A) Producers providing biogas, or electricity to transportation fueling facilities as desc ribed in §80.1426(f)(10); and (B) Producers providing biogas, or electricity to transportation fueling facilities via commercial distribution systems as described in §80.1426(f)(11). (vii) For a producer of renewable fu el made from separated yard and food waste per §80.1426(f)(5)(i)(A). (A) The location of any municipal waste facility or other facility from which the waste stream consisting solely of separated yard or food waste is collected; and (B) A plan documenting how the waste will be collected and for ongoing verification that such waste consists only of separated food and yard wastes. (viii) For a producer of renewable fu el made from separated yard and food waste per §80.1426(f)(5)(i)(B). (A) The location of the municipal waste facility from which the separated food and yard waste is collected. (B) A plan providing ongoing verification that there is reasonably practicable separa tion of recyclable paper, cardboard, textile, and non-biog enic wastes and which documents the following: (1 ) Extent and nature of recy cling that may have occurred prior to receipt of the waste material by the renewable fuel producer; (2 ) Identification of available recycling technology and practices that are appropriate for recycling materials from the waste stream; and ( 3 ) Identification of the technology or practices selected including an explanation for such selection, and reasons why other technologies or practices were not. (C) Contracts relevant to non-bi ogenic materials and paper that are recycled from municipal waste streams as described in §80.1426(f)(5)(iii).466 (D) Certification that recyclin g is conducted in a manner consistent with goals and requi rements of applicable State and local laws relating to recycling and waste management. (2) An independent third party engineering review and written verification of the descriptions made pursuant to paragraph (b)(1) of this section. (i) The verifications required under this section must be conducted by a Professional Chemical Engineer who is based in the United States and is licensed by an a ppropriate state agency, unless the renewable fuel producer is a foreign producer subject to §80.1466. (ii) To be considered an independe nt third party under this paragraph (b)(2): (A) The third party shall not be operated by the renewable fuel producer or any subsidiary or employee of the renewable fuel producer. (B) The third party shall be free from any interest in the renewable fuel producer’s business. (C) The renewable fuel producer shall be free from any interest in the third party’s business. (D) Use of a third party that is debarred, suspended, or proposed for debarment pursuant to the Government-wide Debarment and Suspension regu lations, 40 CFR part 32, or the Debarment, Suspension and Ineligibility provisions of the Federal Acquisition Regulations, 48 CFR, part 9, subpart 9.4, shall be deemed noncompliance with the requirements of this section. (iii) The independent third party shall retain all records pertaining to the verification required under this section for a period of five years from the date of creation and shall deliver such records to the Administrator upon request. (iv) The renewable fuel producer must retain records of the review and verification, as required in §80.1454(b)(6). (3) A Fuel Supply Plan that incl udes all the following information: (i) Name of source of each and every fuel that the renewable fuel producer intends to be co-fired or used in a fuel blend. (ii) Anticipated proportion of each fuel in the mix or in the fuel blend. (iii) Anticipated net heat content of each, including any expected seasonal variations, such as those due to moisture content or wood species. (iv) Seasonal variation, if any, of the fuel mix or blend. (v) An affidavit from the biogas supplier stating its intent to supply biogas to the renewable fuel producer, the quantity and energy content of the biogas that it inte nds to provide to the renewable fuel producer, and a statement that this volume of biogas will not be used for the creation of a Renewable Energy Credit, or of any other type of environmental or energy attribute or credit.467 (c) Importers. Importers of renewable fuel must provide EPA the information specified under §80.76, if such information has not already been provided under the provisions of this part and must receive an EPA-issued company identification number prior to owning any RINs. Registration information may be submitted to EPA at any time after promulgation of this rule in the Federal Register, but must be submitted and accepted by EPA by April 1, 2010, or 60 days prior to an importer importing any renewable fuel, whichever dates comes later.

(d) Registration updates. (1) Any producer of renewable fuel who makes changes to his facility that will qualify his renewable fuel for a renewable fuel category or D code as defined in §80.1425(g) that is not refl ected in the producer’s registration information on file with EPA must upda te his registration information and submit a copy of an updated independe nt engineering review at least 60 days prior to producing the new type of renewable fuel. (2) Any producer of renewable fuel who makes any other changes to a facility not affecting the renewable fuel category for which the producer is registered must update his registration information 7 days prior to the change. (3) All producers of renewable fuel mu st update registration information and submit a copy of an updated independent engineering review every 3 years after initial registration.

(e) Any party who owns, intends to own RINs , or intends to allow another party to separate RINs as per §80.1440, but who is not covered by paragraphs (a), (b), or (d) of this section, must provide EPA the information specified under §80.76, if such information has not already been pr ovided under the provisions of this part and must receive an EPA-issued company identification number prior to owning any RINs. Registration information may be submitted to EPA at any time after promulgation of this rule in the Federal Register, but must be submitted at least 30 days prior to RIN ownership. (f) Renewable fuel producers described in S ection 1403(b) or (c) that do not submit a complete facility registration within three years from (DATE OF PUBLICATION IN FR) will not qualify as a grandfathered facility and will be subject to the 20%

GHG reduction standards. (g) Registration shall be on forms, and following policies, established by the

Administrator

.

§ 80.1451 What are the reporting requirements under the RFS program?

(a) Obligated parties and exporters. Any obligated party described in §80.1406 or exporter of renewable fuel describe d in §80.1430 must submit to EPA reports according to the schedule, and containing a ll the information, that is set forth in this paragraph (a).468 (1) Obligated party annual compliance reports for the previous compliance period shall be submitted by February 28 of each year and shall include all of the following information: (i) The obligated party’s name. (ii) The EPA company registration number. (iii) Whether the obligated party, as defined in §80.1406, is complying on a corporate (aggregate) or facility-by-facility basis.(iv) The EPA facility registration number, if complying on a facilityby-facility basis. (v) The production volume of all of the products listed in §80.1407(c) and (e) for the reporting year. (vi) The RVOs, as defined in §80.1427(a) for obligated parties and §80.1430(b) for exporters of renewable fuel, for the reporting year. (vii) Any deficit RVOs carried over from the previous year. (viii) The total current-year RINs by category of renewable fuel, as those fuels are defined in §80.1401 (i.e ., cellulosic biofuel, biomassbased diesel, advanced biofuel, and renewable fuel), retired for compliance. (ix) The total prior-year RINs by renewable fuel category, as those fuels are defined in §80.1401, used for compliance. (x) The total cellulosic biofuel waiver credits used to meet the party’s

cellulosic biofuel RVO. (xi) A list of all RINs retired for compliance in the reporting year. (A) RIN information provided by the EPA Moderated Transaction System (EMTS) that is retired to meet compliance conveyed via the EMTS as per §80.1452. (B) [Reserved] (xii) Any deficit RVO(s) carried into the subsequent year. (xiii) Any additional information that the Administrator may require. (2) The RIN transaction reports require d under paragraph (c)(1) of this

section. (3) The quarterly RIN activity reports required under paragraph (c)(2) of this

section. (4) Reports required under this paragraph (a) must be signed and certified as meeting all the applicable requirements of this subpart by the owner or a responsible corporate officer of the obligated party.

(b) Renewable fuel producers (domes tic and foreign) and importers. Any domestic producer or importer of renewable fuel, or foreign renewable fuel producer who generates RINs, must submit to EPA reports according to the schedule, and containing all the information, that is set forth in this paragraph (b). (1) (i) For RINs generated beginning on April 1, 2010, RIN generation reports for each facility owned by the renewable fuel producer or importer shall be submitted according to the schedule specified in paragraph (g)(2) of this section.469 (ii) The RIN generation reports shall include all the following

information for each batch of renewable fuel produced, where “batch” means a discrete quantity of renewable fuel produced and assigned a unique batch-RIN per §80.1426(d): (A) The RIN generator’s name. (B) The EPA company registration number. (C) The renewable fuel producer EPA facility registration

number. (D) The importer EPA facility registration number if applicable. (E) The applicable reporting period. (F) The quantity of RINs generated for each batch according to §80.1426. (G) The production date of each batch. (H) The category of renewable fuel of each batch, as defined in §80.1401. (I) Information related to th e volume of denaturant and applicable equivalence value of each batch. (J) The volume of each batch produced. (K) The process(es) and feedst ock(s) used and proportion of renewable volume attributable to each process and

feedstock. (L) The type of co-products produced with each batch of

renewable fuel. (M) The volume of co-products produced in each quarter. (N) A list of the RINs generated and an affirmation that the feedstock(s) used for each batch meets the definition of renewable biomass as defined in §80.1401. (O) Any additional information the Administrator may require. (2) The RIN transaction reports require d under paragraph (c)(1) of this

section. (3) The RIN activity reports required und er paragraph (c)(2) of this section. (4) Reports required under this paragraph (b) must be signed and certified as meeting all the applicable requirements of this subpart by the owner or a responsible corporate officer of the renewable fuel producer.

(c) All RIN-owning parties. Any party, including any party specified in paragraphs (a) and (b) of this section, that owns RINs during a reporting period, must submit reports to EPA according to the schedule, and containing all the information, that is set forth in this paragraph (c). (1) (i) For RIN transactions beginning on April 1, 2010, RIN transaction reports listing each RIN transaction shall be submitted according to the schedule in paragraph (g)(2) of this section. (ii) As per §80.1452, RIN transaction information listing each RIN

transaction shall be submitted to the EMTS.470 (iii) Each report required by paragraph (c)(1)(i) of this section shall include all of the following information: (A) The submitting party’s name. (B) The party’s EPA company registration number. (C) [Reserved] (D) The applicable reporting period. (E) Transaction type (i.e., RIN buy, RIN sell, RIN separation, RIN retire, reinstated 2009 RIN). (F) Transaction date. (G) For a RIN purchase or sale, the trading partner’s name. (H) For a RIN purchase or sale, the trading partner’s EPA company registration number. For all other transactions, the submitting party’s EPA company registration number. (I) RIN subject to the transaction. (J) For a RIN purchase or sale, the per gallon RIN price and/or the per gallon renewable price if the RIN price is included. (K) The reason for retiring RINs, separating RINs, buying RINs, or selling RINs. (L) Any additional information that the Administrator may require. (2) RIN activity reports shall be submitted to EPA according to the schedule specified in paragraph (g)(2) of this section. Each report shall summarize RIN activities for the reporting period, separately for RINs separated from

a renewable fuel volume and RINs assi gned to a renewable fuel volume. The quarterly RIN activity reports shall include all of the following

information: (i) The submitting party’s name. (ii) The party’s EPA company registration number. (iii) The number of current-year RINs owned at the start of the month. (iv) The number of prior-year RINs owned at the start of the month. (v) The total current-year RINs purchased. (vi) The total prior-year RINs purchased. (vii) The total current-year RINs sold. (viii) The total prior-year RINs sold. (ix) The total current-year RINs retired. (x) The total prior-year RINs retired. (xi) The number of current-year RINs owned at the end of the quarter. (xii) The number of prior-year RINs owned at the end of the quarter. (xiii) The number of RINs generated. (xiv) For parties reporting RIN activ ity under this paragraph for RINs generated, but not assigned to a renewable fuel volume and/or RINs assigned to a volume of re newable fuel, and the volume of renewable fuel (in gallons) owne d at the end of the quarter. (xv) The total 2009 retired RINs reinstated. (xvi) Any additional information that the Administrator may require.471 (3) All reports required under this paragr aph (c) must be signed and certified as meeting all the applicable require ments of this subpart by the RIN owner or a responsible corporate officer of the RIN owner.

(d) Producers of renewable electricity and bi ogas that is used for transportation as described in §1426(f)(10) shall submit quarter ly reports that include the energy content produced and supplied to the transportation fueling facility. Reporting shall be in units of energy (for exam ple, MMBtu or MW) based on metering of gas volume or electricity.

(e) Producers of renewable electricity and bi ogas that is used for transportation and placed into commercial distribution syst ems as described in §1426(f)(11) shall submit quarterly reports that include the energy content produced and supplied to the transportation fueling facility. Reporting shall be in units of energy (for example, MMBtu or MW) based on meteri ng of gas volume or electricity.

(f) Producers of renewable fuel made from separated yard and food waste as described in §1426(f)(5), shall submit quarter ly reports that include the amount of paper, cardboard and non-biogenic wastes separated from municipal solid waste that is recycled. Reporting shall be in units of weight.

(g) Except for those producers subject to the aggregate compliance approach described in 40 CFR 80.1454(h) , producers of renewable fuel and RIN-generating importers must submit quarterly reports according to the schedule in paragraph (g)(2) of this section that include all the following: (1) A summary of the types and volumes of feedstocks used in that quarter; (2) Maps or electronic data identifyi ng the land from which each type of feedstock listed per paragra ph (e)(1) above was harvested. (i) If maps or electronic data identifying a plot of land have been submitted previously, producers a nd RIN-generating importers may submit a cross-reference to that map or electronic data. (ii) [Reserved]

(h) If EPA finds that the 2007 baselin e amount of agricultural land has been exceeded, beginning on the first day of July of the following calendar year any domestic producers of renewable fuel as defined in §80.1401 who use planted crops and/or crop residue from existing agricultural lands must submit quarterly reports according to the schedule in paragr aph (g)(2) of this section that include all the following: (1) A summary of the types and volumes of feedstocks used in that quarter; (2) Maps or electronic data identifyi ng the land from which each type of feedstock listed per paragra ph (f)(1) above was harvested. (i) If maps or electronic data identifying a plot of land have been submitted previously, producers a nd RIN-generating importers may submit a cross-reference to that map or electronic data. (ii) [Reserved]472 (i) Report submission deadlines. The submission deadlines for reports shall be as

follows: (1) [Reserved.] (2) Quarterly reports shall be submitted to EPA by the last day of the second month following the compliance period (i.e., the report covering January – March would be due by May 31 st , the report covering April - June would be due by August 31 st , the report covering July - September would be due by November 30 th and the report covering October - December would be due by February 28 th ).

(j) All reports required under this section shall be submitted on forms and following procedures prescribed by the Administrator.

§ 80.1452 What are the requirements related to the EPA Moderated Transaction System (EMTS)?

(a) Each party required to report under this section must establish an account with the EPA Moderated Transaction System (EMTS) at least 60 days prior to engaging in any RIN transactions, or Apr il 1, 2010, whichever is later. (b) Starting April 1, 2010, each time a domestic producer or importer of renewable fuel, or foreign renewable fuel producer who generates RINs, produces or imports a batch of renewable fuel, all the following information must be submitted to EPA within five (5) business days: (1) The renewable fuel producer’s or importer’s name. (2) The renewable fuel producer’s EPA company registration number. (3) The importer’s EPA company re gistration number if applicable. (4) The renewable fuel producer’s EPA facility registration number. (5) The importer’s EPA faci lity registration number. (6) Quantity of RINs generated for the batch. (7) The production date of the batch. (8) The category of renewable fuel of the batch, as defined in §80.1401. (9) Information related to the volum e of denaturant and applicable equivalence value of each batch. (10) The volume of the batch. (11) The process(es) and feedstock( s) used and proportion of renewable volume attributable to each process and feedstock. (12) An affirmation that the feedstoc k(s) used for each batch meets the

definition of renewable bi omass as defined in §80.1401. (13) The type and volume of co-products produced with the batch of renewable

fuel. (14) A list of the RINs generated and an affirmation that the feedstock(s) used

for each batch meets the definition of renewable biomass as defined in §80.1401. (15) The batch number.473 (16) Any additional information the Administrator may require.

(c) Starting April 1, 2010, each time any part y engages in a transaction involving RINs, all the following information must be submitted to EPA within five (5) business days: (1) The submitting party’s name. (2) The party’s EPA company registration number. (3) The generation year of the RINs. (4) The RIN assignment (A ssigned or Separated) (5) The category, or D code, of the RIN (cellulosic biofuel D=3, biomassbased diesel D=4, advanced biofuel D=5, renewable fuel D=6, cellulosic diesel D=7). (6) Transaction type (i.e., RIN buy, RIN sell, RIN separation, RIN retire). (7) Transaction date. (8) For a RIN purchase or sale, the trading partner’s name. (9) For a RIN purchase or sale, the trading partner’s EPA company registration number. For all other transactions, the submitting party’s EPA company registration number. (10) For an assigned RIN purchase or sale, the renewable fuel volume

associated with the sale. (11) The number of RINs for wh ich a transaction is performed. (12) The per gallon RIN price or the per gallon renewable price if the RIN price is included (13) The reason for retiring RINs, separating RINs, buying RINs, or selling

RINs. (14) Any additional information that the Administrator may require.

(d) Report submissions. (1) EMTS generated quarterly reports shall be submitted to EPA by the last day of the second month following the compliance period (i.e., the report covering January – March would be due by May 31 st , the report covering April - June would be due by August 31 st , the report covering July - September would be due by November 30 th and the report covering October - December would be due by February 28 th ). (2) Reports required must be signed and certified as meeting all the applicable requirements of this subpart by th e owner or a responsible corporate officer of the obligated party.

(e) All information required under this section shall be submitted on forms and following procedures prescribed by the Administrator.

§ 80.1453 What are the product transfer do cument (PTD) requirements for the RFS program?474 (a) On each occasion when any party transfers ownership of renewable fuels subject to this subpart, the transferor must provi de to the transferee documents identifying the renewable fuel and any assigned RI Ns which include all of the following information, as applicable: (1) The name and address of th e transferor and transferee. (2) The transferor’s and transferee’s EPA company registration number. (3) The volume of renewable fuel that is being transferred. (4) The date of the transfer. (5) For separated or assigned RINs, th e per gallon RIN price or the per gallon renewable price if the RIN price is included. (6) The quantity of RINs being traded. (7) The volume of renewable fuel that is being transferred. (8) Category and/or D code (cellulo sic biofuel D=3, biomass-based diesel D=4, advanced biofuel D=5, renewable fuel D=6, cellulosic diesel D=7). (9) Assignment and/or Assignmen t Code (Assigned or Separated). (10) RIN generation year. (11) The associated reason code for the sell or buy transaction. (12) Whether any RINs are assigned to the volume, as follows: (i) If the assigned RINs are being transferred on the same PTD used to transfer ownership of the renewable fuel, then the assigned RINs

shall be listed on the PTD. (ii) If the assigned RINs are bein g transferred on a separate PTD from

that which is used to transfer ow nership of the renewable fuel, then the PTD which is used to transfer ownership of the renewable fuel shall state the number of gallon-RINs being transferred as well as a unique reference to the PTD which is transferring the assigned

RINs. (iii) If no assigned RINs are being transferred with the renewable fuel, the PTD which is used to transfer ownership of the renewable fuel shall state "No assigned RINs transferred". (iv) If RINs have been separated from the renewable fuel or blend pursuant to §80.1429(b)(4), then all PTDs which are at any time used to transfer ownership of th e renewable fuel or blend shall

state “This volume of fuel must be used in the designated form, without further blending.”.

(b) Except for transfers to truck carriers, retailers, or wholesale purchaser-consumers, product codes may be used to convey th e information required under paragraphs (a)(1) through (a)(4) of this section if such codes are clearly understood by each

transferee.

(c) For fuels and fuel additives that are not registered as motor vehicle fuel under 40 CFR Part 79, the PTD which is used to tr ansfer ownership of the renewable fuel shall state "This volume of fuel may not be used as a motor vehicle fuel.”.475 § 80.1454 What are the recordkeeping requirements under the RFS program?

(a) Requirements for obligated parties . Beginning [insert effective date], any obligated party (as described at §80.1406) or exporter of renewable fuel (as described at §80.1401) must keep all of the following records: (1) Product transfer documents consis tent with §80.1453 and associated with the obligated party’s activity, if any, as transferor or transferee of

renewable fuel. (2) Copies of all reports su bmitted to EPA under §§80.1449 and 80.1451(a). (3) Records related to each RIN transaction, including all the following: (i) A list of the RINs owned, purch ased, sold, separated, retired, or

reinstated. (ii) The parties involved in each RIN transaction including the transferor, transferee, and any broker or agent. (iii) The date of the transfer of the RIN(s). (iv) Additional information related to details of the transaction and its

terms. (4) Records related to the use of RINs (by facility, if applicable) for compliance, including all the following: (i) Methods and variables used to calculate the Renewable Volume Obligations pursuant to §80.1407 or §80.1430. (ii) List of RINs used to demonstrate compliance. (iii) Additional information related to details of RIN use for compliance. (5) Records related to the separati on of assigned RINs from renewable

volume.

(b) Requirements for all pr oducers of renewable fuel . Beginning April 1, 2010, any domestic or RIN-generating foreign producer of a renewable fuel as defined in §80.1401 must keep all of the following records: (1) Product transfer documents consis tent with §80.1453 and associated with the renewable fuel producer’s activity, if any, as transferor or transferee of

renewable fuel. (2) Copies of all reports su bmitted to EPA under §§80.1449 and 80.1451(b). (3) Records related to the generation and assignment of RINs for each facility, including all of the following: (i) Batch volume in gallons. (ii) Batch number. (iii) RIN as assigned under §80.1426. (iv) Identification of batches by renewable category. (v) Date of production. (vi) Results of any laboratory analysis of batch chemical composition or physical properties. (vii) Additional inform ation related to deta ils of RIN generation. (4) Records related to each RIN transaction, including all of the following: (i) A list of the RINs owned, purchas ed, sold, retired, or reinstated.476 (ii) The parties involved in each transaction including the transferor, transferee, and any broker or agent. (iii) The date of the transfer of the RIN(s). (iv) Additional information related to details of the transaction and its

terms. (5) Records related to the production, im portation, ownership, sale or use of any volume of renewable fuel or ble nd of renewable fuel and gasoline or diesel fuel that any party designates for use as transportation fuel, jet fuel, or home heating oil and the use of the fuel or blend as transportation fuel, jet fuel, or home heating oil without further blending, in the designated

form. (6) Copies of registration docume nts required under §80.1450, including information on fuels and products , feedstocks, facility production processes and capacity, energy sour ces, and independent third party engineering review.

(c) Additional requirements for imports of renewable fuel. Beginning April 1, 2010, any foreign producer of a renewable fuel or importer (as defined in §80.1401) that generates RINs must keep documents a ssociated with feedstock purchases and transfers, sufficient to verify that feedstocks used are renewable biomass (as defined in §80.1401) if the importer generates RINs. (1) Renewable fuel producers that use feed stocks that are use planted crops or crop residue from existing agricultural land, planted trees or tree residue from actively managed tree plantations, slash and pre-commercial thinnings from forestlands or bi omass obtained from wildland-urban interface must maintain all the following records to verify the location where these feedstocks were produced: (i) Maps or electronic data inde ntifying the boundaries of the land where the feedstock was produced. (ii) Bills of lading, product transf er documents or other commercial documents showing the quantity of feedstock purchased from each area identified in paragraph (c)(1 )(i)(A) of this section, and showing each transfer of custody of the feedstock from the location where it was produced to the renewable fuel facility. (2) Renewable fuel producers who use planted crops or crop residue from existing agricultural land, or who use planted trees or tree residue from actively managed tree plantations must keep records that serve as evidence that the land from which the feedstock was obtained was actively managed or fallow, and nonforested, since December 19, 2007. The records must be provided by the feedstock producer and consist of at least one of the following documents: sales records for planted crops or trees, crop or tree residue, or livestock; purchasing records for fertilizer, weed control, or reseeding, including seeds, seedlings, or other nursery stock, together with other written documents connecting the land in question to these purchases; a written management plan for agricultural or silvicultural purposes; documentation of participation in an agricultural, or silvicultural477 program sponsored by a Federal, stat e or local government agency; or documentation of land management in accordance with an agricultural or silvicultural product certification program, an agreement for land management consultation with a professional forester that identifies the land in question; or evidence of the existence and ongoing maintenance of a road system or other physical infras tructure designed and maintained for logging use, together with one of the aforementioned documents. (3) Renewable fuel producers that use any other type of renewable biomass must have documents from their feedstock supplier certifying that the feedstock qualifies as renewa ble biomass as defined in §80.1401, describing the feedstock and identifying the process that was used to generate the feedstock.

(d) Requirements for domestic producers of renewable fuel . Except as provided in paragraph (i) of this section, beginni ng April 1, 2010, any domestic producer of renewable fuel as defined in §80.1401 must keep documents associated with feedstock purchases and transfers that identify where the feedstocks were produced and are sufficient to verify that feedstocks used are renewable biomass (as defined in §80.1401) if RINs are generated. (1) Renewable fuel producers that use feed stocks that are planted trees or tree residue from actively managed tree pl antations, slash and pre-commercial thinnings from forestlands or bi omass obtained from wildland-urban interface must maintain all the following records to verify the location where these feedstocks were produced: (i) Maps or electronic data inde ntifying the boundaries of the land where the feedstock was produced. (ii) Bills of lading, product transf er documents or other commercial documents showing the quantity of feedstock purchased from each area identified in paragraph (c)(1 )(i)(A) of this section, and showing each transfer of custody of the feedstock from the location where it was produced to the renewable fuel facility. (2) Renewable fuel producers who use planted trees or slash from actively managed tree plantations must keep records that serve as evidence that the land from which the feedstock was obtained was cleared prior to December 19, 2007 and actively managed on December 19, 2007. The records must be provided by the feedst ock producer and consist of at least one of the following documents: sales records for planted trees or tree residue; purchasing records for fertilizer, weed control, or reseeding, including seeds, seedlings, or other nursery stock, together with other written documents connecting the land in question to these purchases; a written management plan for silvicultural purposes; documentation of participation in a silvic ultural program sponsored by a Federal, state or local government agency; or docum entation of land management in

accordance with a silvicultural product certification program, an agreement for land management consu ltation with a prof essional forester that identifies the land in question; or evidence of the existence and478 ongoing maintenance of a road system or other physical infrastructure designed and maintained for loggin g use, together with one of the

aforementioned documents. (3) Renewable fuel producers that use any other type of renewable biomass must have documents from their feedstock supplier certifying that the feedstock qualifies as renewa ble biomass as defined in §80.1401, describing the feedstock and identifying the process that was used to generate the feedstock.

(e) Additional requirements for imported renewable fuel . Beginning [insert effective date], any RIN-generating importer of a renewable fuel (as defined in §80.1401) must keep all of the following records: (1) Product transfer documents consis tent with §80.1453 and associated with the renewable fuel importer’s activity, if any, as transferor or transferee of

renewable fuel. (2) Copies of all reports su bmitted to EPA under §§80.1449 and 80.1451(b); however, duplicate records are not required. (3) Records related to the generation and assignment of RINs for each facility, including all of the following: (i) Batch volume in gallons. (ii) Batch number. (iii) RIN as assigned under §80.1426. (iv) Identification of batches by renewable category. (v) Date of import. (vi) Results of any laboratory analysis of batch chemical composition or physical properties. (vii) The EPA registration number of the foreign renewable fuel producers producing the fuel. (viii) Additional inform ation related to deta ils of RIN generation. (4) Records related to each RIN transaction, including all of the following: (i) A list of the RINs owned, purch ased, sold, separated, retired, or

resurrected. (ii) The parties involved in each transaction including the transferor, transferee, and any broker or agent. (iii) The date of the transfer of the RIN(s). (iv) Additional information related to details of the transaction and its

terms. (5) Copies of registration documents required under §80.1450. (6) Records related to the import of an y volume of renewable fuel that the importer designates for use as transpor tation fuel, jet fuel, or home heating

oil.

(f) Requirements for grandf athered production facilities . Beginning April 1, 2010, any production facility with a baseline volume of fuel that is not subject to the 20% GHG threshold, pursuant to §80.1403(a), must keep all of the following: (1) Detailed engineering plans for the facility.479 (2) Federal, State, and local preconstruction approvals and permitting. (3) Procurement and constructi on contracts and agreements. (4) Records of electricity consumption and energy use. (5) Records showing costs of additions, replacements, and repairs inclusive of

labor costs conducted at the facility since December 19, 2007. (6) Records estimating the life of the existing facility.

(g) Requirements for other parties that own RINs . Beginning April 1, 2010, any party, other than those parties covered in paragraphs (a) and (b) of this section, that owns RINs must keep all of the following records: (1) Product transfer documents consis tent with §80.1453 and associated with the party’s activity, if any, as transf eror or transferee of renewable fuel. (2) Copies of all reports submitted to EPA under §80.1451(c). (3) Records related to each RIN transaction by renewable fuel category, including all of the following: (i) A list of the RINs owned, purchas ed, sold, retired, or resurrected. (ii) The parties involved in each RIN transaction including the transferor, transferee, and any broker or agent. (iii) The date of the transfer of the RIN(s). (iv) Additional information related to details of the transaction and its

terms. (4) Records related to any volume of re newable fuel that the party designated for use as transportation fuel, jet fuel, or home heating oil and from which RINs were separated pursuant to §80.1429(b)(4).

(h) Aggregate compliance with renewable biomass requirement . Any domestic renewable fuel producer as defined in §80.1401 that uses planted crops or crop residue from agricultural land is subject to the aggregate compliance approach and is not required to maintain feedst ock records unless EPA publishes a finding that the 2007 baseline amount of agricultural land has been exceeded. (1) Beginning with the 2010 compliance period, EPA will make a finding concerning whether the 2007 baselin e amount of agricultural land has been exceeded and will publish this finding in the Federal Register by November 30 of the year preceding the compliance period. (2) If EPA finds that the 2007 baselin e amount of agricultural land has been exceeded, beginning on the first day of July of the following calendar year any domestic producers of renewable fuel as defined in §80.1401 who use planted crops and/or crop residue from agricultural lands must keep all the following records: (i) Records that serve as evidence that the land from which the

feedstock was obtained was activ ely managed or fallow, and nonforested on December 19, 2007. The records must be provided by the feedstock producer and c onsist of at least one of the following documents: sales records for planted crops, crop residue, livestock; purchasing records for fertilizer, weed control, or reseeding, including seeds, seedlings, or other nursery stock; a480 written management plan for agricultural purposes; documentation of participation in an agricultura l program sponsored by a Federal, state or local government agency; documentation of land management in accordance with an agricultural product certification program. (ii) Records to verify the location where the feedstocks were produced: (A) Maps or electronic data i ndentifying the boundaries of the land where the feedstock was produced; (B) Bills of lading, product tr ansfer documents or other commercial documents showing the quantity of feedstock purchased from each area identified in paragraph (c)(1)(i)(A) of this section, a nd showing each transfer of custody of the feedstock from the location where it was produced to the renewable fuel facility.

(i) Alternative renewable biomass tracking requirement . Any foreign or domestic renewable fuel producer or importer as defined in §80.1401 may comply with the following alternative renewable biomass tracking requirement instead of the recordkeeping requirements in paragraphs (c) through (e) of this section: (1) To comply with the alternative renewable biomass tracking requirement under this paragraph (i), a renewable fu el producer or importer must either arrange to have an independent th ird party conduct a comprehensive program of annual compliance surveys, or participate in the funding of an organization which arranged to have an independent third party conduct a comprehensive program of annual complia nce surveys, to be carried out in accordance with a survey plan which has been approved by EPA. (2) The annual compliance surveys under this paragraph (i) must be all the following: (i) Planned and conducted by an inde pendent surveyor that meets the requirements in §80.68(c)(13)(i). (ii) Conducted at renewable fuel production and imp ort facilities and their feedstock suppliers. (iii) Representative of a ll renewable fuel producers and importers in the

survey area. (iv) Designed to achieve at least the same level of quality assurance required in paragraphs (c) through (e) of this section. (3) The compliance survey program sha ll require the independent surveyor conducting the surveys to do all the following: (i) Conduct feedstock audits of rene wable fuel production facilities in accordance with the survey plan approved under this paragraph (i), or immediately notify EPA of any refusal of these facilities to

allow an audit to be conducted. (ii) Obtain the records and product tr ansfer documents associated with the feedstocks being audited. (iii) Determine the feedstock supplier(s ) that supplied the feedstocks to the renewable fuel producer.481 (iv) Confirm that feedstocks used for renewable fuels under the RFS2 program meet the definition of re newable biomass as defined in §80.1401. (v) Immediately notify EPA of any case where the feedstocks do not

meet the definition of renewabl e biomass as defined in §80.1401; (vi) Immediately notify EPA of any instances where a renewable fuel producer or feedstock supplier fa ils to cooperate in the manner

described in this section. (vii) Submit to EPA a report of each survey, within thirty days following the completion of each survey, such report to include all the following information: (A) The identification of the person who conducted the survey. (B) An attestation by the officer of the surveyor company that the survey was conducted in accordance with the survey plan and the survey results are accurate. (C) Identification of the parties for whom the survey was

conducted. (D) The identification of the covered area surveyed. (E) The dates on which th e survey was conducted. (F) The address of each facility at which the survey audit was

conducted and the date of the audit. (G) A description of the methodology used to select the locations for survey audits and the number of audits

conducted. (viii) Maintain all record s relating to the survey audits conducted under this section (i) for a peri od of at least 5 years. (ix) At any time permit any representative of EPA to monitor the conduct of the surveys, including audit conducting, records reviews, and analysis. (4) A survey plan under this section (i) must include all the following: (i) Identification of the parties for whom the survey is to be

conducted. (ii) Identification of th e independent surveyor. (iii) A methodology for determining all the following: (A) When the audits will be conducted. (B) The audit locations. (C) The number of audits to be conducted during the annual compliance period. (iv) A process for notifying all feedstock suppliers in the affected area of the requirement in para graph __ of this section. (v) Any other elements determined by EPA to be necessary to achieve the level of quality assurance requi red under paragraphs (c)-(e) of

this section. (5) (i) Each renewable fuel producer and importer who participates in the alternative renewable biomass tracking under this section (i) must take all reasonable steps to ensure that ea ch feedstock producer, aggregator,482 distributor, or supplier cooperates w ith this program by allowing the independent surveyor to audit their facility and by providing to the independent surveyor and/or EPA, upon request, copies of management plans, product transfer documents, and other records or information regarding the source of any feedstocks received. (ii) Reasonable steps under paragra ph (i)(5)(i) of this section must include, but typically should not be limited to: contractual agreements with feedstock producer s, aggregators, distributors, and suppliers, which require th em to cooperate with the independent surveyor and/or EP A in the manner described in paragraph (i)(5)(i) of this section. (6) The procedure for obtaining EPA a pproval of a survey plan under this paragraph (i), and for revocation of any such approval, are as follows: (i) A detailed survey plan which complies with the requirements of this paragraph (i) must be submitted to EPA, no later than September 1 of the year preceding the calendar year in which the surveys will be conducted. (ii) The survey plan must be signed by a responsible corporate officer of the renewable fuel producer or importer, or responsible officer of the organization which arrang es to have an independent surveyor conduct a program of renewable biomass compliance surveys, as applicable. (iii) The survey plan must be sent to the following address: Director, Compliance and Innovative Strategies Division, U.S. Environmental Protection Agen cy, 1200 Pennsylvania Ave., NW (6406J), Washington, DC 20460. (iv) EPA will send a letter to the party submitting a survey plan under this section, either approving or disapproving the survey plan. (v) EPA may revoke any approval of a survey plan under this section for cause, including an EPA de termination that the approved survey plan had proved inadequate in practice or that it was not diligently implemented. (vi) The approving official for an alternative quality assurance program

under this section is the Director of the Compliance and Innovative Strategies Division, Office of Tr ansportation and Air Quality. (vii) Any notifications required unde r this paragraph (i) must be directed to the officer designated in paragraph (i)(6)(iii) of this

section. (7) (i) No later than December 1 of the year preceding the year in which the surveys will be conducted, the contract with the independent surveyor shall be in effect, and an amount of money necessary to carry out the entire survey plan sh all be paid to the independent surveyor or placed into an escrow account with instructions to the escrow agent to pay the money to the independent surveyor during

the course of the conduct of the survey plan.483 (ii) No later than December 15 of the year preceding the year in which the surveys will be conducted, EPA must receive a copy of the contract with the independent surveyor, proof that the money necessary to carry out the survey plan has either been paid to the independent surveyor or placed in to an escrow account, and, if placed into an escrow account, a co py of the escrow agreement, to be sent to the official designated in paragraph (i)(6)(iii) of this

section. (8) A failure of any renewable fuel produc ers or importer to fulfill or cause to be fulfilled any of the requirements of this paragraph (i) will cause the option to use the alternative quality assurance requirements under this paragraph (i) to be void ab initio

.

(j) Beginning April 1, 2010, all parties must keep transaction information sent to EMTS in addition to the required records under paragraphs (a) through (e) of this

section.

(k) A renewable fuel producer that produces fu el from separated yard and food waste as described in §80.1426(f)(5) shall keep a ll the following additional records: (i) Contracts and documents memorializ ing the sale of paper, cardboard and non-biogenic material sepa rated from municipal solid waste for recycling. (ii) Documents demonstrating the amounts by weight purchased of separated yard and food waste for use as a feedstock in producing

renewable fuel. (iii) Such other records as may be requested by the Administrator.

(l) A renewable fuel producer that produces biogas (including propane) or electricity produced from renewable biomass (rene wable electricity) for purposes of transportation pursuant to §80.1426(f)(10) and (11), shall keep the following

additional records: (i) Contracts and documents memorializin g the sale of biogas or renewable electricity relied upon in §80.1426(f)(10) or (11), and the transfer of title of the biogas or renewable electrici ty and all associated environmental attributes from the point of generation to the transportation fueling facility. (ii) Documents demonstrating the volume and energy content of biogas, , or energy content of renewable electricity relied upon under §80.1426(f)(10) that was delivered to the transportation fueling facility. (iii) Documents demonstrating the volume and energy content of biogas, or energy content of renewable electricity relied upon under §80.1426(f)(11) that was placed into the common carrier pipeline (for biogas and renewable propane) or transmissi on line (for renewable electricity). (iv) Documents demonstrating the volum e and energy content of biogas, or energy content of renewable electricity used for transportation purposes at the point of distribution. (v) Affidavits from the biogas, or re newable electricity producer and all parties that held title to the biogas or renewable electricity confirming that484 title and environmental attributes of to the biogas or renewable electricity relied upon under §80.1426(d)(10) and ( 11) were delivered to the transportation fueling facility and only to the transportation fueling facility. The renewable fuel provider shall obtain these affidavits at least once per calendar quarter. (vi) The biogas or renewable electrici ty producer’s Complia nce Certification required under Title V of the Clean Air Act. (vii) Such other records as may be requested by the Administrator.

(m) The records required under paragraphs (a ) through (c) of this section and under §80.1453 shall be kept for five years from th e date they were created, except that records related to transactions involving RI Ns shall be kept for five years from the

date of transfer.

(n) The records required under paragraphs (d ) and (f) of this section shall be kept through calendar year 2022.

(o) On request by EPA, the records re quired under this section and under §80.1453

must be made available to the Administrator or the Administrator’s authorized representative. For records that are electronically generated or maintained, the equipment or software necessary to read th e records shall be made available; or, if requested by EPA, electronic records sh all be converted to paper documents.

(p) The records required in paragraphs (b)( 6) and (b)(7) of this section must be transferred with any renewable fuel sent to the importer of that renewable fuel by any foreign producer not generating RINs for his renewable fuel.

§ 80.1455 What are the provision s for renewable fuel pro duction facilities and importers who produce or import less than 10,000 gallons of renewable fuel per year?

(a) Standard volume threshold. Renewable fuel production facilities located within the United States that produce less than 10,000 gallons of renewable fuel each year, and importers who import less than 10,000 gallons of renewable fuel each year, are not required to generate RINs or to assign RINs to batches of renewable fuel. Except as stated in paragraph (b) of this section, such production facilities and importers that do not generate and/or assign RINs to batches of renewable fuel are also exempt from all the fo llowing requirements of this subpart: (1) The registration requirements of §80.1450. (2) The reporting requirements of §80.1451. (3) The EMTS requirements of §80.1452. (4) The recordkeeping requirements of §80.1454. (5) The attest engageme nt requirements of §80.1464. (6) The production outlook report requirements of §80.1449.485 (b) (1) Renewable fuel production facilities and importers who produce or import less than 10,000 gallons of renewable fu el each year and that generate and/or assign RINs to batches of renewable fuel are subject to the provisions of §§ 80.1449 through 80.1452, 80.1454, and 80.1464. (2) Renewable fuel produc tion facilities and importers who produce or import less than 10,000 gallons of renewable fuel each year but wish to own RINs will be subject to all requirements stated in paragraphs (a)(1) through (a)(6) of this section, and all other a pplicable requirements of this subpart

M.

(c) Temporary volume threshold . Renewable fuel producti on facilities located within the United States that produce less th an 125,000 gallons of renewable fuel each year are not required to generate RINs or to assign RINs to batches of renewable fuel for up to three years, beginning with the calendar year in which the production facility produces its first gallon of renewable fuel. Except as stated in paragraph (d) of this section, such producti on facilities that do not generate and/or assign RINs to batches of renewable fuel are also exempt from all the following requirements of this subpart for a maximum of three years: (1) The registration requirements of §80.1450. (2) The reporting requirements of §80.1451. (3) The EMTS requirements of §80.1452. (4) The recordkeeping requirements of §80.1454. (5) The attest engageme nt requirements of §80.1464. (6) The production outlook report requirements of §80.1449.

(d) (1) Renewable fuel pr oduction facilities who produce less than 125,000 gallons of renewable fuel each year and that generate and/or assign RINs

to batches of renewable fuel are subject to the provisions of §§ 80.1449 through 80.1452, 80.1454, and 80.1464. (2) Renewable fuel production f acilities who produce less than 125,000 gallons of renewable fuel each year but wish to own RINs will be subject to all requirements stated in paragr aphs (c)(1) through (c)(6) of this section, and all other applicable requirements of this subpart M.

§ 80.1456 What are the provisions for ce llulosic biofuel waiver credits?

(a) If EPA reduces the applicable volume of cellulosic biofuel pursuant to section 211(o)(7)(D)(i) of the Clean Air Act (42 U.S.C. 7545(o)(7)(D)(i)) for any given compliance year, then EPA will provide cellulosic biofuel waiver credits for purchase for that compliance year. (1) The price of these cellulosic biofuel waiver credits will be set by EPA on an annual basis in accordance with paragraph (d) of this section. (2) The total cellulosic biofuel waiver credits available will be equal to the

reduced cellulosic biofuel volume esta blished by EPA for the compliance

year.486 (b) Use of cellulosic biofuel waiver credits. (1) Cellulosic biofuel waiver credits are only valid for use in the compliance year that they are made available. (2) Cellulosic biofuel waiver credits are nonrefundable. (3) Cellulosic biofuel waiver credits are nontransferable except if forfeiting

the cellulosic biofuel waiver credits to EPA. (4) Cellulosic biofuel waiver credits may only be used for an obligated party’s current year cellulosic biofuel RVO a nd not towards any prior year deficit cellulosic biofuel volume obligations.

(c) Purchase of cellulosi c biofuel waiver credits. (1) Only parties with an RVO for cellulosic biofuel may purchase cellulosic

biofuel waiver credits. (2) Cellulosic biofuel waiver credits shall be purchased from EPA at the time that a party submits its annual compliance report to EPA pursuant to §80.1451(a)(1). (3) Parties may not purchase more cellulosic biofuel waiver credits than their current year cellulosic biofuel RVO mi nus cellulosic biofuel RINs with a D code of 3 that they own. (4) Cellulosic biofuel waiver credits may only be used to meet an obligated party’s cellulosic biofuel RVO.

(d) Setting the price of cellulosic biofuel waiver credits. (1) The price for cellulosic biofuel waiver credits shall be set equal to the greater of: (i) $0.25 per cellulosic biofuel waiver credit, adjusted for inflation in comparison to calendar year 2008; or (ii) $3.00 less the wholesale price of gasoline per cellulosic biofuel waiver credit, adjusted for inflation in comparison to calendar year

2008. (2) The wholesale price of gasoline will be calculated by averaging the most recent twelve monthly values for U.S. Total Gasoline Bulk Sales (Price) by All Sellers as provided by the Energy Information Administration that are available as of September 30 of the year preceding the compliance period. (3) The inflation adjustment will be cal culated by comparing the most recent

Consumer Price Index for All Urba n Consumers (CPI-U) for All Items expenditure category as provided by the Bureau of Labor Statistics that is available as of September 30 of the year preceding the compliance period to the most recent comparable valu e reported prior to December 31, 2008. When EPA must set the price of cellulosic biofuel waiver credits for a compliance year, EPA will calculate the new amounts for paragraphs (d)(1)(i) and (ii) of this section fo r each year after 2008 and every month where data is available for the year preceding the compliance period.487 (e) Cellulosic biofuel waiver credits under this section will only be able to be purchased on forms and following procedures prescribed by EPA.

§§ 80.1457-80.1459 [Reserved]

§ 80.1460 What acts are prohibit ed under the RFS program?

(a) Renewable fuels producer or importer violation. Except as provided in §80.1455, no party shall produce or import a renewabl e fuel without assigning the proper number of gallon-RINs or identifying it by a batch-RIN as required under §80.1426.

(b) RIN generation and transfer violations. No party shall do any of the following: (1) Generate a RIN for a fuel that is not a renewable fuel, or for which the applicable renewable fuel volume was not produced. (2) Create or transfer to any party a RIN that is invalid under §80.1431. (3) Transfer to any party a RIN that is not properly identified as required under §80.1425. (4) Transfer to any party a RIN with a K code of 1 without transferring an appropriate volume of renewable fuel to the same party on the same day. (5) Introduce into commerce any renewabl e fuel produced from a feedstock or through a process that is not desc ribed in the party’s registration

information.

(c) RIN use violations . No party shall do any of the following: (1) Fail to acquire sufficient RINs, or use invalid RINs, to meet the party’s RVOs under §80.1427. (2) Fail to acquire sufficient RINs to meet the party’s RVOs under §80.1430. (3) Use a validly generated RIN to meet the party’s RVOs under §80.1427, or separate and transfer a validly generated RIN, where the party ultimately uses the renewable fuel volume associated with the RIN in an application other than for use as transportation fuel (as defined in §80.1401).

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

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

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

§ 80.1461 Who is liable for violations under the RFS program?488 (a) Parties liable for viol ations of prohibited acts. (1) Any party who violates a prohibition under §80.1460(a) through (d) is liable for the violation of that prohibition. (2) Any party who causes another person to violate a prohibition under §80.1460(a) through (d) is liable for a violation of §80.1460(e).

(b) Parties liable for failure to meet other provisions of this subpart. (1) Any party who fails to meet a require ment of any provision of this subpart is liable for a violation of that provision. (2) Any party who causes another party to fail to meet a requirement of any provision of this subpart is liable for causing a violation of that provision.

(c) Parent corporation liability. Any parent corporation is liable for any violation of this subpart that is committed by any of its subsidiaries.

(d) Joint venture liability. Each partner to a joint venture is jointly and severally liable for any violation of this subpart that is committed by the joint venture operation.

§ 80.1462 [Reserved]

§ 80.1463 What penalties appl y under the RFS program?

(a) Any party who is liable for a violati on under §80.1461 is subject a to civil penalty of up to $37,500, as specified in sections 205 and 211(d) of the Clean Air Act, for every day of each such violation and th e amount of economic benefit or savings resulting from each violation.

(b) Any party liable under §80.1461(a) for a violation of §80.1460(c) for failure to meet its RVOs, or §80.1460(e) for causing another party to fail to meet their RVOs, during any averaging period, is subject to a separate day of violation for each day in the averaging period.

(c) Any party liable under §80.1461(b) for failure to meet, or causing a failure to meet, a requirement of any provision of this subpart is liable for a separate day of violation for each day such a requirement rema ins unfulfilled.

§ 80.1464 What are the attest engagement requirements under the RFS program?

The requirements regarding annual atte st engagements in §§80.125 through 80.127, and 80.130, also apply to any attest engagement proc edures required under this subpart M. In489 addition to any other applicable attest enga gement procedures, such as the requirements in §80.1465, the following annual attest engage ment procedures are required under this subpart.

(a) Obligated parties and exporters. The following attest procedures shall be completed for any obligated party as stated in §80.1406(a) or exporter of renewable fuel that is subject to the renewable fuel standard under §80.1405: (1) Annual compliance demonstration report. (i) Obtain and read a copy of the annual compliance demonstration report required under §80.1451(a)(1) which contains information regarding all the following: (A) The obligated party’s volume of all products listed in §80.1407(c) and (f). (B) RVOs. (C) RINs used for compliance. (ii) Obtain documentation of any vol umes of renewable fuel used in products listed in §80.1407(c) and (f) at the refinery or import facility or exported during the reporting year; compute and report as a finding the total volumes of renewable fuel represented in

these documents. (iii) Compare the volumes of products listed in §80.1407(c) and (f) reported to EPA in the report required under §80.1451(a)(1) with the volumes, excluding any renewa ble fuel volumes, contained in the inventory reconciliation analys is under §80.133, and verify that the volumes reported to EPA ag ree with the volumes in the inventory reconciliation analysis. (iv) Compute and report as a finding the obligated party’s or exporter’s RVOs, and any deficit RVOs carri ed over from the previous year or carried into the subsequent year , and verify that the values agree with the values reported to EPA. (v) Obtain the database, spreadsh eet, or other documentation for all RINs by type of renewable fuel (as defined in §80.1401),used for compliance during the year being reviewed; calculate the total number of RINs associated with each type of renewable fuel (as defined in §80.1401) used for comp liance by year of generation represented in these documents; state whether this information agrees with the report to EPA and report as a finding any exceptions. (2) RIN transaction reports. (i) Obtain and read copies of a representative sample, selected in accordance with the guidelines in §80.127, of each RIN transaction type (RINs purchased, RINs sold, RINs retired, RINs reinstated) included in the RIN transaction reports required under §80.1451(a)(2) for the compliance year. (ii) Obtain contracts, invoices , or other documentation for the representative samples of RIN transactions; compute the490 transaction types, transaction date s, and RINs traded; state whether the information agrees with the party’s reports to EPA and report as a finding any exceptions. (3) RIN activity reports. (i) Obtain and read copies of all quarterly RIN activity reports required under §80.1451(a)(3) for the compliance year. (ii) Obtain the database, spreadsh eet, or other documentation used to generate the information in the RIN activity reports; compare the RIN transaction samples reviewed under paragraph (a)(2) of this section with the corresponding entries in the database or spreadsheet and report as a finding any discrepancies; compute the total number of current-year and pr ior-year RINs owned at the start and end of each quarter, purchase d, sold, retired and reinstated, and for parties that reported RIN activity for RINs assigned to a volume of renewable fuel, the volum e and type of renewable fuel (as defined in §80.1401) of renewabl e fuel owned at the end of each quarter; as represented in these documents; and state whether this information agrees with the party’s reports to EPA.

(b) Renewable fuel producers and RIN-generating importers. The following attest procedures shall be completed for any re newable fuel producer or RIN-generating importer: (1) Renewable fuel production reports

. (i) Obtain and read copies of the renewable fuel production reports required under §§80.1451(b)(1) and (e)(2) for the compliance year. (ii) Obtain production data for each renewable fuel batch by type of renewable fuel (as defined in §80.1401) that was produced or imported during the year being reviewed; compute the RIN numbers, production dates, types, volumes of denaturant and applicable equivalence values, and production volumes for each batch; state whether this information agrees with the party’s reports to EPA and report as a finding any exceptions. (iii) Verify that the proper number of RINs were generated and assigned for each batch of renewable fuel produced or imported, as required under §80.1426. (iv) Obtain product transfer docu ments for a representative sample, selected in accordance with the guidelines in §80.127, of renewable fuel batches produced or imported during the year being reviewed; verify that the product transfer documents contain the applicable information required under §80.1453; verify the accuracy of the information contained in the product transfer documents; report as a finding any product transfer document that does not contain the applicab le information required under §80.1453. (v) Obtain documentation, as required under §80.1451(b)(6), associated with feedstock purchases and transfers for a491 representative sample, selected in accordance with the guidelines in §80.127, of renewable fuel batc hes produced or imported during the year being reviewed. (A) If RINs were generated for a given batch of renewable fuel, verify that feedstocks used m eet the definition of renewable biomass in §80.1401. (B) If no RINs were generated for a given batch of renewable fuel, verify that feedstocks used do not meet the definition of renewable biomass in §80.1401 or that there was another reason that the fuel produced without RINs was not

renewable fuel. (2) RIN transaction reports

. (i) Obtain and read copies of a representative sample, selected in accordance with the guidelines in §80.127, of each transaction type (RINs purchased, RINs sold, RINs retired, RINs reinstated) included in the RIN transaction reports required under §80.1451(b)(2) for the compliance year. (ii) Obtain contracts, invoices , or other documentation for the representative samples of RIN transactions; compute the transaction types, transaction dates, and the RINs traded; state whether this information agrees with the party’s reports to EPA and report as a finding any exceptions. (3) RIN activity reports

. (i) Obtain and read copies of the quarterly RIN activity reports required under §80.1451(b)(3) for the compliance year. (ii) Obtain the database, spreadsh eet, or other documentation used to generate the information in the RIN activity reports; compare the RIN transaction samples reviewed under paragraph (b)(2) of this section with the corresponding entries in the database or spreadsheet and report as a finding any discrepancies; compute the total number of current-year and pr ior-year RINs owned at the start and end of each quarter, purchase d, sold, retired and reinstated, and for parties that reported RIN activity for RINs assigned to a volume of renewable fuel, the volum e of renewable fuel owned at the end of each quarter, as represented in these documents; and state whether this information agrees with the party’s reports to

EPA. (4) Independent Third Party Engineering Review. (i) Obtain documentation of inde pendent third party engineering reviews required under §80.1450(b)(2) and (3). (ii) Review and verify the written verification and records generated as part of the independent third party engineering review.

(c) Other parties owning RINs. The following attest procedures shall be completed for any party other than an obligated party or renewable fuel producer or importer that owns any RINs during a calendar year:492 (1) RIN transaction reports

. (i) Obtain and read copies of a representative sample, selected in accordance with the guidelines in §80.127, of each RIN transaction type (RINs purchased, RINs sol d, RINs retired, RINs separated, RINs reinstated) included in the RIN transaction reports required under §80.1451(c)(1) for the compliance year. (ii) Obtain contracts, invoices , or other documentation for the representative samples of RIN transactions; compute the transaction types, transaction dates, and the RINs traded; state whether this information agrees with the party’s reports to EPA and report as a finding any exceptions. (2) RIN activity reports

. (i) Obtain and read copies of the quarterly RIN activity reports required under §80.1451(c)(2) for the compliance year. (ii) Obtain the database, spreadsh eet, or other documentation used to generate the information in the RIN activity reports; compare the RIN transaction samples reviewed under paragraph (c)(1) of this section with the corresponding entries in the database or spreadsheet and report as a finding any discrepancies; compute the total number of current-year and pr ior-year RINs owned at the start and end of each quarter, purchas ed, sold, retired separated, and reinstated and for parties that reported RIN activity for RINs assigned to a volume of renewabl e fuel, the volume of renewable fuel owned at the end of each quarter, as represented in these documents; and state whether this information agrees with the party’s reports to EPA.

(d) The following submission dates apply to the attest engagements required under

this section: (1) For each compliance year, each party subject to the attest engagement requirements under this section shall cau se the reports required under this section to be submitted to EPA by May 31 of the year following the compliance year. (2) [Reserved]

(e) The party conducting the procedures under this section shall obtain a written representation from a company representative that the copies of the reports required under this section are complete a nd accurate copies of the reports filed

with EPA.

(f) The party conducting the procedures under this section shall identify and report as a finding the commercial computer program used by the party to track the data required by the regulations in this subpart, if any.493 § 80.1465 What are the additional requirements under this subpart for foreignsmall refiners, foreign small refineries, and importers of RFSFRFUEL?

(a) Definitions . The following additional definitions apply for this subpart: (1) Foreign refinery is a refinery that is located outside the United States, the Commonwealth of Puerto Rico, the U. S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands (collectively referred to in this section as ‘‘the United States’’). (2) Foreign refiner is a party that meets the de finition of refiner under §80.2(i) for a foreign refinery. (3) Foreign small refiner is a foreign refiner that has received a small refinery exemption under §80.1441 for one or more of its refineries or a foreign

refiner that has received a sm all refiner exemption under §80.1442. (4) RFS-FRFUEL is transportation fuel produced at a foreign refinery that has received a small refinery exempti on under §80.1441 or by a foreign refiner with a small refiner exemption under §80.1442. (5) Non-RFS-FRFUEL is one of the following: (i) Transportation fuel produced at a foreign refinery that has received a small refinery exemption under §80.1441 or by a foreign refiner with a small refiner exemption under §80.1442. (ii) Transportation fuel produced at a foreign refinery that has not received a small refinery exemption under §80.1441 or by a foreign refiner that has not received a small refiner exemption under §80.1442.

(b) General requirements for RFS-FRFUEL for foreign small refineries and small

refiners . A foreign refiner must do all the following: (1) Designate, at the time of producti on, each batch of transportation fuel produced at the foreign refinery that is exported for use in the United

States as RFS-FRFUEL. (2) Meet all requirements that apply to refiners who have received a small refinery or small refiner exemption under this subpart.

(c) Designation, foreign small refiner ce rtification, and produc t transfer documents

. (1) Any foreign small refiner must de signate each batch of RFS-FRFUEL as such at the time the transportation fuel is produced. (2) On each occasion when RFS-FRFUEL is loaded onto a vessel or other transportation mode for transport to the United States, the foreign small refiner shall prepare a certification for each batch of RFS-FRFUEL that meets all the following requirements: (i) The certification shall include th e report of the independent third party under paragraph (d) of this section, and all the following

additional information: (A) The name and EPA registration number of the refinery that produced the RFS-FRFUEL.494 (B) [Reserved] (ii) The identification of the transportation fuel as RFS-FRFUEL. (iii) The volume of RFS-FRFUEL being transported, in gallons.(3) On each occasion when any party transfers custody or title to any RFSFRFUEL prior to its being imported into the United States, it must include all the following information as part of the product transfer document

information: (i) Designation of the transp ortation fuel as RFS-FRFUEL. (ii) The certification required under paragraph (c)(2) of this section.

(d) Load port independent tes ting and refinery identification

. (1) On each occasion that RFS-FRFUEL is loaded onto a vessel for transport to the United States the foreign sma ll refiner shall have an independent third party do all the following: (i) Inspect the vessel prior to load ing and determine the volume of any

tank bottoms. (ii) Determine the volume of RFS-FRFUEL loaded onto the vessel (exclusive of any tank bottoms before loading). (iii) Obtain the EPA-assigned registration number of the foreign refinery. (iv) Determine the name and country of registration of the vessel used to transport the RFS-FRFUEL to the United States. (v) Determine the date and time the vessel departs the port serving the foreign refinery. (vi) Review original documents that reflect movement and storage of the RFS-FRFUEL from the foreign refinery to the load port, and

from this review determine: (A) The refinery at which the RFS-FRFUEL was produced; and(B) That the RFS-FRFUEL remained segregated from NonRFS-FRFUEL and other RFS-FRFUEL produced at a different refinery. (2) The independent third party shall submit a report to all the following: (i) The foreign small refiner, c ontaining the information required under paragraph (d)(1) of this section, to accompany the product

transfer documents for the vessel. (ii) The Administrator, containing the information required under paragraph (d)(1) of this section, within thirty days following the date of the independent third pa rty’s inspection. This report shall include a description of the method used to determine the identity of the refinery at which the transportation fuel was produced, assurance that the transportation fuel remained segregated as specified in paragraph (j)(1) of th is section, and a description of the transportation fuel’s movement and storage between production at the source refinery and vessel loading. (3) The independent third party must do all the following:495 (i) Be approved in advance by EPA, based on a demonstration of ability to perform the procedures required in this paragraph (d). (ii) Be independent under the criteria specified in §80.65(f)(2)(iii). (iii) Sign a commitment that contains the provisions specified in paragraph (f) of this section with regard to activities, facilities, and documents relevant to compliance with the requirements of this paragraph (d).

(e) Comparison of load port and port of entry testing

. (1) (i) Any small foreign small refiner or foreign small refinery and any United States importer of RFS-FRFUEL shall compare the results from the load port testing under para graph (d) of this section, with the port of entry testing as repor ted under paragraph (k) of this section, for the volume of transporta tion fuel, except as specified in paragraph (e)(1)(ii) of this section. (ii) Where a vessel transporting RFS-FRFUEL off loads this transportation fuel at more than one United States port of entry, the requirements of paragraph (e)(1)(i) of this section do not apply at subsequent ports of entry if th e United States importer obtains a

certification from the vessel ow ner that the requirements of paragraph (e)(1)(i) of this secti on were met and that the vessel has not loaded any transportation fuel or blendstock between the first United States port of entry and th e subsequent port of entry. (2) If the temperature-corrected volumes determined at the port of entry and at the load port differ by more than one percent, the United States importer and the foreign small refiner or foreig n small refinery shall not treat the transportation fuel as RFS-FRFUEL and the importer shall include the volume of transportation fuel in the importer’s RFS compliance

calculations.

(f) Foreign refiner commitments . Any small foreign refiner shall commit to and comply with the provisions contained in th is paragraph (f) as a condition to being approved for a small refinery or small refiner exemption under this subpart. (1) Any United States Environmental Protection Agency inspector or auditor must be given full, complete, and immediate access to conduct inspections and audits of the foreign refinery. (i) Inspections and audits may be either announced in advance by EPA, or unannounced. (ii) Access will be provided to any location where: (A) Transportation fuel is produced; (B) Documents related to refi nery operations are kept; and (C) RFS-FRFUEL is stored or transported between the foreign refinery and the United States, including storage tanks, vessels and pipelines. (iii) Inspections and audits may be by EPA employees or contractors to

EPA.496 (iv) Any documents requested that are related to matters covered by inspections and audits must be provided to an EPA inspector or auditor on request. (v) Inspections and audits by EPA may include review and copying of any documents related to all the following: (A) The volume of RFS-FRFUEL. (B) The proper classification of transportation fuel as being RFS-FRFUEL or as not being RFS-FRFUEL. (C) Transfers of title or custody to RFS-FRFUEL. (D) Testing of RFS-FRFUEL. (E) Work performed and reports prepared by independent third parties and by independent a uditors under the requirements of this section, including work papers. (vi) Inspections and audits by EPA may include interviewing employees. (vii) Any employee of the foreign refiner must be made available for interview by the EPA inspector or auditor, on request, within a reasonable time period. (viii) English language translations of any documents must be provided to an EPA inspector or auditor, on request, within 10 working days. (ix) English language interpreters must be provided to accompany EPA inspectors and auditors, on request. (2) An agent for service of process located in the District of Columbia shall be named, and service on this agent constitutes service on the foreign refiner or any employee of the foreign refine r for any action by EPA or otherwise by the United States related to the requirements of this subpart. (3) The forum for any civil or criminal enforcement action related to the provisions of this section for violations of the Clean Air Act or regulations promulgated thereunder shall be govern ed by the Clean Air Act, including

the EPA administrative forum where allowed under the Clean Air Act. (4) United States substantive and procedur al laws shall apply to any civil or criminal enforcement action against the foreign refiner or any employee of the foreign refiner related to the provisions of this section. (5) Submitting an application for a small refinery or small refiner exemption, or producing and exporting transporta tion fuel under such exemption, and all other actions to comply with the re quirements of this subpart relating to such exemption constitute actions or activities covered by and within the meaning of the provisions of 28 U.S.C. 1605(a)(2), but solely with respect to actions instituted against the foreign refiner, its agents and employees in any court or other tribunal in the Un ited States for conduct that violates the requirements applicable to the foreign refiner under this subpart, including conduct that violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413).497 (6) The foreign refiner, or its agents or employees, will not seek to detain or to impose civil or criminal remedies against EPA inspectors or auditors, whether EPA employees or EPA contractors, for ac tions performed within the scope of EPA employme nt related to the provisions of this section. (7) The commitment required by this paragraph (f) shall be signed by the owner or president of the foreign refiner business. (8) In any case where RFS-FRFUEL produced at a foreign refinery is stored or transported by another company between the refinery and the vessel that transports the RFS-FRFUEL to the United States, the foreign refiner

shall obtain from each such other co mpany a commitment that meets the requirements specified in paragraphs (f)(1) through (f)(7) of this section, and these commitments shall be included in the foreign refiner’s application for a small refinery or small refiner exemption under this subpart.

(g) Sovereign immunity . By submitting an application for a small refinery or small refiner exemption under this subpa rt, or by producing and exporting transportation fuel to the United States under such exemption, the foreign refiner, and its agents and employees, without exception, become subject to the full operation of the administrative and judici al enforcement powers and provisions of

the United States without limitation based on sovereign immunity, with respect to actions instituted against the foreign refiner, its agents and employees in any court

or other tribunal in the United States fo r conduct that violates the requirements applicable to the foreign refiner under this subpart, including c onduct that violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413).

(h) Bond posting . Any foreign refiner shall meet the requirements of this paragraph (h) as a condition to approval of a small fo reign refinery or small foreign refiner exemption under this subpart. (1) The foreign refiner shall post a bond of the amount calculated using the following equation:
Bond = G * $ 0.01

Where:

Bond = amount of the bond in United States dollars. G = the largest volume of transporta tion fuel produced at the foreign refinery and exported to the United States, in gallons, during a single calendar year among the most recent of the following calendar years, up to a maximum of five calendar years: the calendar year immediately preceding the date the refinery’s or refiner’s application is submitted, the calendar year the application is submitted, and each succeeding calendar

year. (2) Bonds shall be posted by: (i) Paying the amount of the bond to the Treasurer of the United States;498 (ii) Obtaining a bond in the proper amount from a third party surety agent that is payable to satisfy United States administrative or judicial judgments against the foreign refiner, provided EPA agrees in advance as to the third party and the nature of the surety

agreement; or (iii) An alternative commitment that results in assets of an appropriate liquidity and value being readily available to the United States, provided EPA agrees in advance as to the alternative commitment. (3) Bonds posted under this paragraph (h) shall: (i) Be used to satisfy any judici al judgment that results from an administrative or judicial enforcement action for conduct in violation of this subpart, including where such conduct violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413); (ii) Be provided by a corporate surety that is listed in the United States Department of Treasury Circ ular 570 ‘‘Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds’’; and (iii) Include a commitment that the bond will remain in effect for at least five years following the end of latest annual reporting period that the foreign refiner produces transportation fuel pursuant to the requirements of this subpart. (4) On any occasion a foreign refiner bond is used to satisfy any judgment, the foreign refiner shall increase the bond to cover the amount used within 90 days of the date the bond is used. (5) If the bond amount for a foreign refine r increases, the foreign refiner shall

increase the bond to cover the shortfall within 90 days of the date the bond amount changes. If the bond amount decreases, the foreign refiner may reduce the amount of the bond beginning 90 days after the date the bond amount changes.

(i) English language reports . Any document submitted to EPA by a foreign refiner shall be in English, or shall include an English language translation.

(j) Prohibitions

. (1) No party may combine RFS-FRFUEL with any Non-RFS-FRFUEL, and no party may combine RFS-FRFUEL with any RFS-FRFUEL produced at a different refinery, until the importer has met all the requirements of paragraph (k) of this section. (2) No foreign refiner or other party may cause another party to commit an action prohibited in paragraph (j)(1) of this section, or that otherwise violates the requirements of this section.

(k) United States importer requirements . Any United States importer of RFSFRFUEL shall meet the following requirements:499 (1) Each batch of imported RFS-FRFUEL shall be classified by the importer as being RFS-FRFUEL. (2) Transportation fuel shall be classified as RFS-FRFUEL according to the designation by the foreign refiner if this designation is supported by product transfer documents prepared by the foreign refiner as required in paragraph (c) of this section. Additiona lly, the importer shall comply with all requirements of this subpa rt applicable to importers. (3) For each transportation fuel batch classified as RFS-FRFUEL, any United States importer shall have an independ ent third party do all the following: (i) Determine the volume of transportation fuel in the vessel. (ii) Use the foreign refiner’s RFS-FRFUEL certification to determine the name and EPA-assigned regi stration number of the foreign refinery that produced the RFS-FRFUEL. (iii) Determine the name and country of registration of the vessel used to transport the RFS-FRFUEL to the United States. (iv) Determine the date and time the vessel arrives at the United States port of entry. (4) Any importer shall submit reports within 30 days following the date any vessel transporting RFS-FRFUEL arrives at the United States port of entry

to: (i) The Administrator, containing the information determined under paragraph (k)(3) of this section; and (ii) The foreign refiner, containi ng the information determined under paragraph (k)(3)(i) of this secti on, and including identification of the port at which the product was off loaded. (5) Any United States importer shall meet all other requirements of this subpart for any imported transportation fu el that is not classified as RFSFRFUEL under paragraph (k)(2) of this section.

(l) Truck imports of RFS-FRFUEL produced at a foreign refinery

. (1) Any refiner whose RFS-FRFUEL is transported into the United States by truck may petition EPA to use alternative procedures to meet all the following requirements: (i) Certification under paragr aph (c)(2) of this section. (ii) Load port and port of entry te sting requirements under paragraphs (d) and (e) of this section. (iii) Importer testing requirement s under paragraph (k)(3) of this

section. (2) These alternative procedures must ensure RFS-FRFUEL remains segregated from Non-RFS-FRFUEL until it is imported into the United States. The petition will be evaluated based on whether it adequately addresses all the following: (i) Provisions for monitoring pipelin e shipments, if applicable, from the refinery, that ensure segregation of RFS-FRFUEL from that refinery from all other transportation fuel.500 (ii) Contracts with any terminals and/or pipelines that receive and/ortransport RFS-FRFUEL that prohibit the commingling of RFSFRFUEL with Non-RFS-FRFUEL or RFS-FRFUEL from other foreign refineries. (iii) Attest procedures to be c onducted annually by an independent third party that review loading records and import documents based on volume reconciliation, or othe r criteria, to confirm that all RFS-FRFUEL remains segregated throughout the distribution

system. (3) The petition described in this section must be submitted to EPA along with the application for a small refinery or small refiner exemption under this subpart.

(m) Additional attest requirement s for importers of RFS-FRFUEL . The following additional procedures shall be carried out by any importer of RFS-FRFUEL as part of the attest engagement required for importers under this subpart M. (1) Obtain listings of all tenders of RFS-FRFUEL. Agree the total volume of tenders from the listings to the transportation fuel inventory reconciliation analysis required in §80.133(b), and to the volumes determined by the third party under paragraph (d) of this section. (2) For each tender under paragraph (m)(1) of this section, where the transportation fuel is loaded onto a ma rine vessel, report as a finding the name and country of registration of each vessel, and the volumes of RFSFRFUEL loaded onto each vessel. (3) Select a sample from the list of vessels identified per paragraph (m)(2) of this section used to transport RFS-FRFUEL, in accordance with the guidelines in §80.127, and for each vessel selected perform all the following: (i) Obtain the report of the indepe ndent third party, under paragraph (d) of this section. (A) Agree the information in these reports with regard to vessel identification and transportation fuel volume. (B) Identify, and report as a finding, each occasion the load port and port of entry volume results differ by more than the amount allowed in paragraph (e)(2) of this section, and

determine whether all of th e requirements of paragraph (e)(2) of this section have been met. (ii) Obtain the documents used by the independent third party to determine transportation and storage of the RFS-FRFUEL from the refinery to the load port, under paragraph (d) of this section.Obtain tank activity records for any storage tank where the RFSFRFUEL is stored, and pipeline activity records for any pipeline used to transport the RFS-FRFUEL prior to being loaded onto the

vessel. Use these records to determine whether the RFS-FRFUEL was produced at the refinery that is the subject of the attest engagement, and whether the RFS-FRFUEL was mixed with any501 Non-RFS-FRFUEL or any RFS-FRFUEL produced at a different refinery. (4) Select a sample from the list of vessels identified per paragraph (m)(2) of this section used to transport RFS-FRFUEL, in accordance with the guidelines in §80.127, and for each vessel selected perform all the following: (i) Obtain a commercial document of general circulation that lists vessel arrivals and departures, a nd that includes the port and date of departure of the vessel, and the port of entry and date of arrival

of the vessel. (ii) Agree the vessel’s departure a nd arrival locations and dates from the independent third party and Un ited States importer reports to

the information contained in the commercial document. (5) Obtain separate listings of all te nders of RFS-FRFUEL , and perform all the following: (i) Agree the volume of tenders from the listings to the transportation fuel inventory reconciliation analysis in §80.133(b). (ii) Obtain a separate listing of the tenders under this paragraph (m)(5) where the transportation fuel is load ed onto a marine vessel. Select a sample from this listing in accordance with the guidelines in §80.127, and obtain a commercial docum ent of general circulation that lists vessel arrivals and depa rtures, and that includes the port and date of departure and th e ports and dates where the transportation fuel was off loaded for the selected vessels. Determine and report as a finding the country where the transportation fuel was off loaded for each vessel selected. (6) In order to complete the requirement s of this paragraph (m), an auditor shall do all the following: (i) Be independent of the foreign refiner or importer. (ii) Be licensed as a Certified Pub lic Accountant in the United States and a citizen of the United States, or be approved in advance by EPA based on a demonstration of ability to perform the procedures required in §§ 80.125 through 80.127, 80.130, 80.1464, and this paragraph (m). (iii) Sign a commitment that contains the provisions specified in paragraph (f) of this section with regard to activities and documents relevant to complian ce with the requirements of §§ 80.125 through 80.127, 80.130, 80.1464, and this paragraph (m).

(n) Withdrawal or suspension of foreign sma ll refiner or foreign small refinery status

. EPA may withdraw or suspend a foreign re finer’s small refinery or small refiner exemption where: (1) A foreign refiner fails to meet any requirement of this section; (2) A foreign government fails to a llow EPA inspections as provided in paragraph (f)(1) of this section;502 (3) A foreign refiner asserts a claim of, or a right to claim, sovereign immunity in an action to enforce the requirements in this subpart; or (4) A foreign refiner fails to pay a civil or criminal penalty that is not satisfied using the foreign refiner bond specified in paragraph (h) of this section.

(o) Additional requirements for app lications, reports and certificates . Any application for a small refinery or small refiner exemption, alternative procedures under paragraph (l) of this section, any report, certification, or other submission required under this section shall be: (1) Submitted in accordance with proce dures specified by the Administrator, including use of any forms that may be specified by the Administrator. (2) Signed by the president or owner of the foreign refiner company, or by that party’s immediate designee, and shall contain the following

declaration: “I hereby certify: (1) That I have ac tual authority to sign on behalf of and to bind [insert name of foreign refine r] with regard to all statements contained herein; (2) that I am aware that the information contained herein is being Certified, or submitted to the United States Environmental Protection Agency, under the requireme nts of 40 CFR part 80, subpart M,

and that the information is materi al for determining compliance under these regulations; and (3) that I have read and understand the information being Certified or submitted, and this information is true, complete and correct to the best of my knowle dge and belief after I have taken reasonable and appropriate steps to verify the accuracy thereof. I affirm that I have read and understand the pr ovisions of 40 CFR part 80, subpart M, including 40 CFR 80.1465 apply to [INSERT NAME OF FOREIGN REFINER]. Pursuant to Clean Air Act section 113(c) and 18 U.S.C. 1001, the penalty for furnishing false, incomplete or misleading information in

this certification or submission is a fine of up to $10,000 U.S., and/or imprisonment for up to five years.”.

§ 80.1466 What are the additional requirements under this subpart for foreign producers and importers of renewable fuels?

(a) Foreign producer of renewable fuel . For purposes of this subpart, a foreign producer of renewable fuel is a party located outside the United States, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands (collectively referred to in this section as ‘‘the United States’’) that has been approved by EPA to produce and export renewable fuel to the United States, hereinafter referred to as a “foreign producer” under this section.

(b) General requirements . An approved foreign producer under this section must meet all requirements that apply to rene wable fuel producers under this subpart.503 (c) Designation, foreign producer cer tification, and product transfer documents

. (1) Any approved foreign producer under this section that generates RINs must designate each batch of renewa ble fuel as “RFS-FRRF” at the time the renewable fuel is produced. (2) On each occasion when RFS-FRRF is loaded onto a vessel or other transportation mode for transport to the United States, the RIN-generating foreign producer shall prepare a certif ication for each batch of RFS-FRRF; the certification shall include the repo rt of the independent third party under paragraph (d) of this secti on, and all the following additional

information: (i) The name and EPA registrati on number of the company that produced the RFS-FRRF. (ii) The identification of the renewable fuel as RFS-FRRF. (iii) The volume of RFS-FRRF being transported, in gallons.(3) On each occasion when any party transfers custody or title to any RFSFRRF prior to its being imported into the United States, it must include all the following information as part of the product transfer document

information: (i) Designation of the renewable fuel as RFS-FRRF. (ii) The certification required under paragraph (c)(2) of this section.

(d) Load port independent tes ting and refinery identification

. (1) On each occasion that RFS-FRRF is loaded onto a vessel for transport to the United States the RIN-generating foreign producer shall have an independent third party do all the following: (i) Inspect the vessel prior to load ing and determine the volume of any

tank bottoms. (ii) Determine the volume of RFS-FRRF loaded onto the vessel (exclusive of any tank bottoms before loading). (iii) Obtain the EPA-assigned registration number of the foreign producer. (iv) Determine the name and country of registration of the vessel used to transport the RFS-FRRF to the United States. (v) Determine the date and time the vessel departs the port serving the foreign producer. (vi) Review original documents that reflect movement and storage of the RFS-FRRF from the RIN-generating foreign producer to the load port, and from this review determine all the following: (A) The facility at which the RFS-FRRF was produced.(B) That the RFS-FRRF remained segregated from Non-RFSFRRF and other RFS-FRRF produced by a different foreign producer. (2) The independent third party shall submit a report to the following: (i) The RIN-generating foreign produ cer, containing the information required under paragraph (d)(1) of this section, to accompany the product transfer documents for the vessel.504 (ii) The Administrator, containing the information required under paragraph (d)(1) of this section, within thirty days following the date of the independent third part y’s inspection. This report shall include a description of the method used to determine the identity of the foreign producer facility at which the renewable fuel was produced, assurance that the renewable fuel remained segregated as specified in paragraph (j)(1) of this section, and a description of

the renewable fuel’s movement and storage between production at the source facility and vessel loading. (3) The independent third party must: (i) Be approved in advance by EPA, based on a demonstration of ability to perform the procedures required in this paragraph (d); (ii) Be independent under the criteri a specified in §80.65(e)(2)(iii); and (iii) Sign a commitment that contains the provisions specified in paragraph (f) of this section with regard to activities, facilities and documents relevant to compliance with the requirements of this paragraph (d).

(e) Comparison of load port and port of entry testing

. (1) (i) Any RIN-generating foreign producer and any United States importer of RFS-FRRF shall compare the results from the load port testing under paragraph (d) of this section, with the port of entry testing as reported under paragraph (k) of this section, for the volume of renewable fuel, excep t as specified in paragraph (e)(1)(ii) of this section. (ii) Where a vessel transporting RFS-FRRF off loads the renewable fuel at more than one United States port of entry, the requirements of paragraph (e)(1)(i) of this s ection do not apply at subsequent ports of entry if the United Stat es importer obtains a certification from the vessel owner that the requi rements of paragraph (e)(1)(i)

of this section were met and th at the vessel has not loaded any renewable fuel between the first United States port of entry and the subsequent port of entry. (2) (i) If the temperature-co rrected volumes determined at the port of entry and at the load port differ by more than one percent, the

number of RINs associated with the renewable fuel shall be

calculated based on the lesser of the two volumes in paragraph (e)(1)(i) of this section. (ii) Where the port of entry volume is the lesser of the two volumes in paragraph (e)(1)(i) of this secti on, the importer shall calculate the difference between the number of RINs originally assigned by the foreign producer and the number of RINs calculated under §80.1426 for the volume of renewable fu el as measured at the port of entry, and retire that amount of RINs in accordance with paragraph (k)(4) of this section.505 (f) Foreign producer commitments . Any foreign producer, whether generating RINs or not, shall commit to and comply with the provisions contained in this paragraph (f) as a condition to being ap proved as a foreign producer under this subpart. (1) Any United States Environmental Protection Agency inspector or auditor must be given full, complete, and immediate access to conduct inspections and audits of the foreign producer facility. (i) Inspections and audits may be either announced in advance by EPA, or unannounced. (ii) Access will be provided to any location where: (A) Renewable fuel is produced; (B) Documents related to rene wable fuel producer operations are kept; and (C) RFS-FRRF is stored or tr ansported between the foreign producer and the United States, including storage tanks, vessels and pipelines. (iii) Inspections and audits may be by EPA employees or contractors to

EPA. (iv) Any documents requested that are related to matters covered by inspections and audits must be provided to an EPA inspector or auditor on request. (v) Inspections and audits by EPA may include review and copying of any documents related to the following: (A) The volume of RFS-FRRF. (B) The proper classification of renewable fuel as being RFSFRRF. (C) Transfers of title or custody to RFS-FRRF. (D) Work performed and reports prepared by independent third parties and by independent a uditors under the requirements of this section, including work papers. (vi) Inspections and audits by EPA may include interviewing employees. (vii) Any employee of the foreign pr oducer must be made available for interview by the EPA inspector or auditor, on request, within a reasonable time period. (viii) English language translations of any documents must be provided to an EPA inspector or auditor, on request, within 10 working days. (ix) English language interpreters must be provided to accompany EPA inspectors and auditors, on request. (2) An agent for service of process located in the District of Columbia shall be named, and service on this agent constitutes service on the foreign producer or any employee of the foreign producer for any action by EPA or otherwise by the United States related to the requirements of this subpart.506 (3) The forum for any civil or criminal enforcement action related to the provisions of this section for violations of the Clean Air Act or regulations promulgated thereunder shall be govern ed by the Clean Air Act, including

the EPA administrative forum where allowed under the Clean Air Act. (4) United States substantive and procedur al laws shall apply to any civil or criminal enforcement action against th e foreign producer or any employee of the foreign producer related to the provisions of this section. (5) Applying to be an approved fo reign producer under this section, or producing or exporting renewable fuel under such approval, and all other actions to comply with the requirement s of this subpart relating to such approval constitute actions or activities covered by and within the meaning of the provisions of 28 U.S.C. 1605(a )(2), but solely with respect to actions instituted against the foreign producer, its agents and employees in any court or other tribunal in the Un ited States for conduct that violates the requirements applicable to the foreign producer under this subpart, including conduct that violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413). (6) The foreign producer, or its agents or employees, will not seek to detain or to impose civil or criminal remedies against EPA inspectors or auditors, whether EPA employees or EPA contractors, for ac tions performed within the scope of EPA employme nt related to the provisi ons of this section. (7) The commitment required by this paragraph (f) shall be signed by the owner or president of the foreign producer company. (8) In any case where RFS-FRRF produced at a foreign producer facility is stored or transported by another company between the refinery and the vessel that transports the RFS-FRRF to the United States, the foreign producer shall obtain from each such other company a commitment that meets the requirements specified in paragraphs (f)(1) through (7) of this section, and these commitments shall be included in the foreign producer’s application to be an approved fo reign producer under this subpart.

(g) Sovereign immunity . By submitting an application to be an approved foreign producer under this subpart, or by produ cing and exporting renewable fuel to the United States under such approval, the foreign producer, and its agents and employees, without exception, become subject to the full operation of the administrative and judicial enforcemen t powers and provisions of the United

States without limitation based on sovere ign immunity, with respect to actions instituted against the foreign producer, its agents and employees in any court or

other tribunal in the United States for conduct that violat es the requirements applicable to the foreign producer under this subpart, including conduct that

violates the False Statem ents Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413).507 (h) Bond posting . Any RIN-generating foreign produ cer shall meet the requirements of this paragraph (h) as a condition to approval as a foreign producer under this subpart. (1) The RIN-generating foreign producer shall post a bond of the amount calculated using the following equation:
Bond = G * $ 0.01

Where:

Bond = amount of the bond in U.S. dollars. G = the largest volume of renewable fuel produced at the RIN-generating foreign producer’s facility and exported to the United States, in gallons, during a single calendar year among the most recent of the following calendar years, up to a maximum of five calendar years: the calendar year immediately preceding the date the refi nery’s application is submitted, the calendar year the application is submitted, and each succeeding calendar

year. (2) Bonds shall be posted by any of the following methods: (i) Paying the amount of the bond to the Treasurer of the United

States. (ii) Obtaining a bond in the proper amount from a third party surety agent that is payable to satisfy United States administrative or judicial judgments against th e foreign producer, provided EPA agrees in advance as to the third party and the nature of the surety

agreement. (iii) An alternative commitment that results in assets of an appropriate liquidity and value being readily available to the United States provided EPA agrees in advance as to the alternative commitment. (3) Bonds posted under this paragraph (h) shall: (i) Be used to satisfy any judici al judgment that results from an administrative or judicial enforcement action for conduct in violation of this subpart, including where such conduct violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413); (ii) Be provided by a corporate surety that is listed in the United States Department of Treasury Circ ular 570 ‘‘Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds’’; and (iii) Include a commitment that the bond will remain in effect for at least five years following the end of latest annual reporting period that the foreign producer produces renewable fuel pursuant to the requirements of this subpart. (4) On any occasion a foreign producer bond is used to satisfy any judgment, the foreign producer shall increase the bond to cover the amount used within 90 days of the date the bond is used. (5) If the bond amount for a foreign producer increases, the foreign producer

shall increase the bond to cover the shortf all within 90 days of the date the bond amount changes. If the bond amount decreases, the foreign refiner508 may reduce the amount of the bond beginning 90 days after the date the bond amount changes.

(i) English language reports . Any document submitted to EPA by a foreign producer shall be in English, or shall include an English language translation.

(j) Prohibitions

. (1) No party may combine RFS-FRRF with any Non-RFS-FRRF, and no party may combine RFS-FRRF with any RFS-FRRF produced at a different refinery, until the importer has met all the requirements of paragraph (k) of this section. (2) No foreign producer or other party may cause another party to commit an action prohibited in paragraph (j)(1) of this section, or that otherwise violates the requirements of this section.

(k) Requirements for United St ates importers of RFS-FRRF . Any United States importer shall meet all the following requirements: (1) Each batch of imported RFS-FRRF sh all be classified by the importer as being RFS-FRRF. (2) Renewable fuel shall be classified as RFS-FRRF according to the designation by the foreign producer if this designation is supported by product transfer documents prepared by the foreign producer as required in paragraph (c) of this section. (3) For each renewable fuel batch classified as RFS-FRRF, any United States importer shall have an independent third party do all the following: (i) Determine the volume of re newable fuel in the vessel. (ii) Use the foreign producer’s RF S-FRRF certificati on to determine the name and EPA-assigned regi stration number of the foreign producer that produced the RFS-FRRF. (iii) Determine the name and country of registration of the vessel used to transport the RFS-FRRF to the United States. (iv) Determine the date and time the vessel arrives at the United States port of entry. (4) Where the importer is required to re tire RINs under paragraph (e)(2) of this section, the importer must report the retired RINs in the applicable reports under §80.1452. (5) Any importer shall submit reports within 30 days following the date any vessel transporting RFS-FRRF arrives at the United States port of entry to all the following: (i) The Administrator, containing the information determined under paragraph (k)(3) of this section. (ii) The foreign producer, containing the information determined under paragraph (k)(3)(i) of this secti on, and including identification of the port at which the product was off loaded, and any RINs retired under paragraph (e)(2) of this section.509 (6) Any United States importer shall meet all other requirements of this subpart for any imported ethanol or other renewable fuel that is not classified as RFS-FRRF under paragraph (k)(2) of this section.

(l) Truck imports of RFS-FRRF produced by a foreign producer

. (1) Any foreign producer whose RFS-F RRF is transported into the United States by truck may petition EPA to use alternative procedures to meet all the following requirements: (i) Certification under paragr aph (c)(2) of this section. (ii) Load port and port of entry te sting under paragraphs (d) and (e) of

this section. (iii) Importer testing under paragraph (k)(3) of this section. (2) These alternative procedures must ensure RFS-FRRF remains segregated from Non-RFS-FRRF until it is imported into the United States. The petition will be evaluated based on whether it adequately addresses the following:(i) Contracts with any facilities that receive and/or transport RFSFRRF that prohibit the commingling of RFS-FRRF with NonRFS-FRRF or RFS-FRRF from other foreign producers. (ii) Attest procedures to be c onducted annually by an independent third party that review loading records and import documents

based on volume reconciliation to confirm that all RFS-FRRF remains segregated. (3) The petition described in this section must be submitted to EPA along with the application for appr oval as a foreign producer under this subpart.

(m) Additional attest requireme nts for producers of RFS-FRRF . The following additional procedures shall be carried out by any producer of RFS-FRRF as part of the attest engagement required for re newable fuel producers under this subpart

M. (1) Obtain listings of all tenders of RFS-FRRF. Agree the total volume of tenders from the listings to the volumes determined by the third party under paragraph (d) of this section. (2) For each tender under paragraph (m)(1) of this section, where the

renewable fuel is loaded onto a marine vessel, report as a finding the name and country of registration of each ve ssel, and the volum es of RFS-FRRF

loaded onto each vessel. (3) Select a sample from the list of vessels identified in paragraph (m)(2) of this section used to transport RFS-FRRF, in accordance with the guidelines in § 80.127, and for each vessel selected perform all the following: (i) Obtain the report of the indepe ndent third party, under paragraph (d) of this section, and of the United States importer under paragraph (k) of this section.510 (A) Agree the information in these reports with regard to vessel

identification and rene wable fuel volume. (B) Identify, and report as a finding, each occasion the load port and port of entry volume results differ by more than the amount allowed in paragraph (e) of this section, and determine whether the importer retired the appropriate amount of RINs as required under paragraph (e)(2) of this section, and submitted the applicable reports under §80.1452 in accordance with paragraph (k)(4) of this

section. (ii) Obtain the documents used by the independent third party to determine transportation and storage of the RFS-FRRF from the foreign producer’s facility to the load port, under paragraph (d) of this section. Obtain tank activity records for any storage tank where the RFS-FRRF is stored, and activity records for any mode of transportation used to trans port the RFS-FRRF prior to being

loaded onto the vessel. Use these records to determine whether the RFS-FRRF was produced at the foreign producer’s facility that is the subject of the attest engage ment, and whether the RFS-FRRF was mixed with any Non-RFS-FRRF or any RFS-FRRF produced at a different facility. (4) Select a sample from the list of vessels identified in paragraph (m)(2) of this section used to transport RFS-FRRF, in accordance with the guidelines in §80.127, and for each vessel selected perform the following: (i) Obtain a commercial document of general circulation that lists vessel arrivals and departures, a nd that includes the port and date of departure of the vessel, and the port of entry and date of arrival

of the vessel. (ii) Agree the vessel’s departure a nd arrival locations and dates from the independent third party and Un ited States importer reports to

the information contained in the commercial document. (5) Obtain a separate listing of the te nders under this paragraph (m)(5) where the RFS-FRRF is loaded onto a marine vessel. Select a sample from this listing in accordance with the guidelines in §80.127, and obtain a commercial document of general circula tion that lists vessel arrivals and departures, and that includes the port and date of departure and the ports

and dates where the renewable fuel was off loaded for the selected vessels. Determine and report as a finding th e country where the renewable fuel

was off loaded for each vessel selected. (6) In order to complete the requireme nts of this paragraph (m) an auditor

shall: (i) Be independent of the foreign producer; (ii) Be licensed as a Certified Pub lic Accountant in the United States and a citizen of the United States, or be approved in advance by EPA based on a demonstration of ability to perform the procedures511 required in §§ 80.125 through 80.127, 80.130, 80.1464, and this paragraph (m); and (iii) Sign a commitment that contains the provisions specified in paragraph (f) of this section with regard to activities and documents relevant to complian ce with the requirements of §§ 80.125 through 80.127, 80.130, 80.1464, and this paragraph (m).

(n) Withdrawal or suspension of foreign producer approval . EPA may withdraw or suspend a foreign producer’s approval where any of the following occur: (1) A foreign producer fails to meet any requirement of this section. (2) A foreign government fails to a llow EPA inspections as provided in paragraph (f)(1) of this section. (3) A foreign producer asserts a claim of, or a right to claim, sovereign immunity in an action to enforce the requirements in this subpart. (4) A foreign producer fails to pay a civil or criminal penalty that is not satisfied using the foreign producer bond specified in paragraph (g) of this

section.

(o) Additional requirements for app lications, reports and certificates . Any application for approval as a foreign producer, alternative procedures under paragraph (l) of this section, any report, certification, or othe r submission required

under this section shall be: (1) Submitted in accordance with proce dures specified by the Administrator, including use of any forms that may be specified by the Administrator. (2) Signed by the president or owner of the foreign producer company, or by that party’s immediate designee, and shall contain the following

declaration: “I hereby certify: (1) That I have actual authority to sign on behalf of and to bind [INSERT NAME OF FOREIGN PRODUCER] with regard to all statements contained herein; (2) that I am aware that the information contained herein is being Certified, or submitted to the United States Environmental Protection Agency, under the requirements of 40 CFR part 80, subpart M, and that the

information is material for de termining compliance under these regulations; and (3) that I have read and understand the information being Certified or submitted, and this information is true, complete and correct to th e best of my knowledge and belief

after I have taken reasonable and appropriate steps to verify the accuracy thereof. I affirm that I have read and understand the provisions of 40 CFR part 80, subpart M, including 40 CFR 80.1465 apply to [INSERT NAME OF FOREIGN PRODUCER]. Pursuant to Clean Air Act section 113(c) and 18 U.S.C. 1001, the penalty for furnishing false, incomplete or misleading information in this certification or submission is a fine of up to $10,000 U.S., and/or imprisonment for up to five years.”.512 § 80.1467 What are the additional requireme nts under this subpart for a foreign

RIN owner?

(a) Foreign RIN owner . For purposes of this subpart, a foreign RIN owner is a party located outside the United States, the Co mmonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands (collectively referred to in this section as ‘‘the United States’’) that has been approved by EPA to own RINs.

(b) General Requirement . An approved foreign RI N owner must meet all requirements that apply to parties who own RINs under this subpart.

(c) Foreign RIN owner commitments . Any party shall commit to and comply with the provisions contained in th is paragraph (c) as a cond ition to being approved as a foreign RIN owner under this subpart. (1) Any United States Environmental Protection Agency inspector or auditor must be given full, complete, and immediate access to conduct inspections and audits of the foreign RIN owner’s place of business. (i) Inspections and audits may be either announced in advance by EPA, or unannounced. (ii) Access will be provided to any location where documents related to RINs the foreign RIN owner has obtained, sold, transferred or held are kept. (iii) Inspections and audits may be by EPA employees or contractors to

EPA. (iv) Any documents requested that are related to matters covered by inspections and audits must be provided to an EPA inspector or auditor on request. (v) Inspections and audits by EPA may include review and copying of any documents related to the following: (A) Transfers of title to RINs. (B) Work performed and reports prepared by independent auditors under the requirements of this section, including work papers. (vi) Inspections and audits by EPA may include interviewing employees. (vii) Any employee of the foreign RIN owner must be made available for interview by the EPA inspector or auditor, on request, within a reasonable time period. (viii) English language translations of any documents must be provided to an EPA inspector or auditor, on request, within 10 working days. (ix) English language interpreters must be provided to accompany EPA inspectors and auditors, on request.513 (2) An agent for service of process located in the District of Columbia shall be named, and service on this agent constitutes service on the foreign RIN owner or any employee of the foreig n RIN owner for any action by EPA or otherwise by the United States related to the requirements of this subpart. (3) The forum for any civil or criminal enforcement action related to the provisions of this section for violations of the Clean Air Act or regulations promulgated thereunder shall be govern ed by the Clean Air Act, including

the EPA administrative forum where allowed under the Clean Air Act. (4) United States substantive and procedur al laws shall apply to any civil or criminal enforcement action against the foreign RIN owner or any employee of the foreign RIN owner related to the provisions of this

section. (5) Submitting an application to be a foreign RIN owner, and all other actions to comply with the requirements of this subpart constitute actions or activities covered by and within the meaning of the provisions of 28 U.S.C. 1605(a)(2), but solely with respect to actions instituted against the foreign RIN owner, its agents and employees in any court or other tribunal

in the United States for conduct that violates the requirements applicable to the foreign RIN owner under this subpart, including conduct that

violates the False Stat ements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413). (6) The foreign RIN owner, or its agents or employees, will not seek to detain or to impose civil or criminal remedies against EPA inspectors or auditors, whether EPA employees or EPA contractors, for ac tions performed within the scope of EPA employme nt related to the provisions of this section. (7) The commitment required by this paragraph (c) shall be signed by the owner or president of the foreign RIN owner business.

(d) Sovereign immunity . By submitting an application to be a foreign RIN owner under this subpart, the foreign entity, and its agents and employees, without exception, become subject to the full opera tion of the administrative and judicial enforcement powers and provisions of th e United States without limitation based on sovereign immunity, with respect to actions instituted against the foreign RIN owner, its agents and employees in any c ourt or other tribunal in the United States for conduct that violates the requirement s applicable to the foreign RIN owner under this subpart, including conduct th at violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413).

(e) Bond posting . Any foreign entity shall meet th e requirements of this paragraph (e) as a condition to approval as a foreign RIN owner under this subpart. (1) The foreign entity shall post a bond of the amount calculated using the following equation:
Bond = G * $ 0.01

Where:514 Bond = amount of the bond in U.S. dollars. G = the total of the number of gallon-RINs the foreign entity expects to sell or transfer during the first calendar year that the foreign entity is a RIN owner, plus the number of gallon-RINs the foreign entity expects to sell or transfer during the next four cal endar years. After the first calendar year, the bond amount shall be based on the actual number of gallon-RINs sold or transferred during the current calendar year and the number held atthe conclusion of the current averaging year, plus the number of gallonRINs sold or transferred during th e four most recent calendar years preceding the current calendar year. For any year for which there were fewer than four preceding years in which the foreign entity sold or transferred RINs, the bond shall be based on the total of the number of gallon-RINs sold or transferred during the current calendar year and the

number held at the end of the curren t calendar year, plus the number of gallon-RINs sold or transferred during any calendar year preceding the current calendar year, plus the number of gallon-RINs expected to be sold or transferred during subsequent calen dar years, the total number of years not to exceed four calendar years in addition to the current calendar year. (2) Bonds shall be posted by doing any of the following: (i) Paying the amount of the bond to the Treasurer of the United

States. (ii) Obtaining a bond in the proper amount from a third party surety agent that is payable to satisfy United States administrative or judicial judgments against the foreign RIN owner, provided EPA agrees in advance as to the third party and the nature of the surety

agreement. (iii) An alternative commitment that results in assets of an appropriate liquidity and value being readily available to the United States, provided EPA agrees in advance as to the alternative commitment. (3) All the following shall apply to bonds posted under this paragraph (e);

bonds shall: (i) Be used to satisfy any judici al judgment that results from an administrative or judicial enforcement action for conduct in violation of this subpart, including where such conduct violates the False Statements Accountability Act of 1996 (18 U.S.C. 1001) and section 113(c)(2) of the Clean Air Act (42 U.S.C. 7413). (ii) Be provided by a corporate surety that is listed in the United States Department of Treasury Circ ular 570 “Companies Holding Certificates of Authority as Acceptable Sureties on Federal

Bonds”. (iii) Include a commitment that the bond will remain in effect for at least five years following the e nd of latest reporting period in which the foreign RIN owner obtains, sells, transfers, or holds

RINs.515 (4) On any occasion a foreign RIN owner bond is used to satisfy any judgment, the foreign RIN owner shall increase the bond to cover the amount used within 90 days of the date the bond is used.

(f) English language reports . Any document submitted to EPA by a foreign RIN owner shall be in English, or shall include an Engl ish language translation.

(g) Prohibitions

. (1) A foreign RIN owner is prohibited from obtaining, selling, transferring, or holding any RIN that is in excess of the number for which the bond requirements of this sec tion have been satisfied. (2) Any RIN that is sold, transferred, or held that is in excess of the number for which the bond requirements of this section have been satisfied is an invalid RIN under §80.1431. (3) Any RIN that is obtained from a pa rty located outside the United States that is not an approved foreign RIN ow ner under this section is an invalid RIN under §80.1431. (4) No foreign RIN owner or other party may cause another party to commit an action prohibited in this paragraph (g), or that otherwise violates the requirements of this section.

(h) Additional attest requirements for foreign RIN owners . The following additional requirements apply to any foreign RIN owne r as part of the attest engagement required for RIN owners under this subpart M. (i) The attest auditor must be i ndependent of the foreign RIN owner. (ii) The attest auditor must be licensed as a Certifie d Public Accountant in the United States and a citizen of the United States, or be approved in advance by EPA based on a demonstration of ability to perform the procedures required in §§80.125 through 80.127, 80.130, and 80.1464. (iii) The attest auditor must sign a commitment that contains the provisions specified in paragraph (c) of this section with regard to activities and documents relevant to complian ce with the requirements of §§80.125 through 80.127, 80.130, and 80.1464.

(i) Withdrawal or suspension of foreign RIN owner status. EPA may withdraw or suspend its approval of a foreign RIN owner where any of the following occur: (1) A foreign RIN owner fails to meet any requirement of this section, including, but not limited to, the bond requirements. (2) A foreign government fails to a llow EPA inspections as provided in paragraph (c)(1) of this section. (3) A foreign RIN owner asserts a claim of, or a right to claim, sovereign immunity in an action to enforce the requirements in this subpart. (4) A foreign RIN owner fails to pay a civil or criminal penalty that is not satisfied using the foreign RIN owner bond specified in paragraph (e) of

this section.516 (j) Additional requirements for app lications, reports and certificates . Any application for approval as a foreign RIN owner, any report, certification, or other submission required under th is section shall be: (1) Submitted in accordance with proce dures specified by the Administrator, including use of any forms that may be specified by the Administrator. (2) Signed by the president or owner of the foreign RIN owner company, or by that party’s immediate designee, and shall contain the following

declaration: “I hereby certify: (1) That I have actu al authority to sign on behalf of and to bind [INSERT NAME OF FOREIGN RIN OWNER] with regard to all statements contained herein; (2) that I am aware that the information contained herein is being Certified, or submitted to the United States Environmental Protection Agency, under the requirements of 40 CFR part 80, subpart M, and that the informa tion is material for determining compliance under these regulations; and (3) that I have read and understand the information being Ce rtified or sub mitted, and this information is true, complete and corr ect to the best of my knowledge and

belief after I have taken reasonable a nd appropriate steps to verify the accuracy thereof. I affirm that I have read and understand the provisions of 40 CFR part 80, subpart M, including 40 CFR 80.1467 apply to [INSERT NAME OF FOREIGN RIN OWNER]. Pursuant to Clean Air Act section 113(c) and 18 U.S.C. 1001, the penalty for furnishing false, incomplete or misleading information in this certification or submission is a fine of up to $10,000 U.S., and/or imp risonment for up to five years.”.