§ 80.1427 - How are RINs used to demonstrate compliance?

§ 80.1427 How are RINs used to demonstrate compliance?

Cross Reference

Link to an amendment published at 88 FR 44584, July 12, 2023.

(a) Obligated party renewable volume obligations.

(1) Except as specified in paragraph (b) of this section or § 80.1456, each party that is an obligated party under § 80.1406 and is obligated to meet the Renewable Volume Obligations under § 80.1407 must demonstrate pursuant to § 80.1451(a)(1) that it has retired 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 for calendar year i, in gallons, pursuant to § 80.1407.

(ii) Biomass-based diesel. Except as provided in paragraph (a)(7) of this section,

(∑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 for calendar year i after 2010, in gallons, pursuant to § 80.1407.

(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 for calendar year i, in gallons, pursuant to § 80.1407.

(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 for calendar year i, in gallons, pursuant to § 80.1407.

(2) 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.

(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)

(i) Except as provided in paragraph (a)(3)(ii) of this section, 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.

(ii) A cellulosic diesel RIN with a D code of 7 cannot be used to demonstrate compliance with both a cellulosic biofuel RVO and a biomass-based diesel RVO.

(4) [Reserved]

(5) The value of (ΣRINNUM)_i-1 may not exceed values determined by the following inequalities except as provided in paragraph (a)(7)(iii) of this section and § 80.1442(d)

(ΣRINNUM)_CB,i-1 ≤0.20 * RVO_CB,i

(ΣRINNUM)_BBD,i-1 ≤0.20 * RVO_BBD,i

(ΣRINNUM)_AB,i-1 ≤0.20 * RVO_AB,i

(ΣRINNUM)_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 demonstrate 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 for compliance purposes for calendar year 2009 which have a D code of 2 and an RR code of 15, 16, 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

(ΣRINNUM)_BBD,2010 + (ΣRINNUM)_BBD,2009 + (ΣRINNUM)_BBD,2008 = RVO_BBD,2010

Where

(ΣRINNUM)_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.

(ΣRINNUM)_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.

(ΣRINNUM)_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 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 (ΣRINNUM)₂₀₀₈ and (ΣRINNUM)₂₀₀₉ may not exceed values determined by both of the following inequalities

(ΣRINNUM)_BBD,2008 ≤0.087 * RVO_BBD,2010

(ΣRINNUM)_BBD,2008 + (ΣRINNUM)_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) or (a)(7) 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.

(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 that fails to meet the requirements of paragraph (a)(1) or (a)(7) 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 the 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 over from 2010 is no larger than 57% of the party's 2010 biomass-based diesel RVO as determined prior to any adjustment applied pursuant to paragraph (a)(7)(i) of this section.

(iv) The party uses the same compliance approach in year i + 1 as it did in year i, as provided in § 80.1406(c)(2).

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

D_i = RVO_i − [(ΣRINNUM)_i + (ΣRINNUM)_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 pursuant to paragraph (b)(1) of this section.

RVO_i = The Renewable Volume Obligation for the obligated party or exporter of renewable fuel for calendar year i, in gallons.

(ΣRINNUM)_i = Sum of all acquired gallon-RINs that were generated in year i and are being applied towards the RVO_i, in gallons.

(ΣRINNUM)_i-1 = Sum of all acquired gallon-RINs that were generated in year i-1 and are being applied towards the RVO_i, in gallons.

(c) Exporter Renewable Volume Obligations (ERVOs).

(1) Each exporter of renewable fuel that is obligated to meet Exporter Renewable Volume Obligations under § 80.1430 must demonstrate pursuant to § 80.1451(a)(1) that is has retired for compliance purposes a sufficient number of RINs to meet its ERVOs by the deadline specified in § 80.1430(f).

(2) In fulfillment of its ERVOs, each exporter of renewable fuel is subject to the provisions of paragraphs (a)(2), (3), (6), and (8) of this section.

(3) No more than 20 percent of the ERVO calculated according to a formula at § 80.1430(b) may be fulfilled using RINs generated in the year prior to the year in which the RVO was incurred.

[75 FR 14863, Mar. 26, 2010, as amended at 75 FR 26042, May 10, 2010; 79 FR 42114, July 18, 2014; 85 FR 7076, Feb. 6, 2020; 85 FR 78467, Dec. 4, 2020; 88 FR 44584, July 12, 2023]