Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

In such cases, the volume block start and volume block end values in the batch-RIN (i.e.
SSSSSS and EEEEEE codes described in Section III.D.2.b) would not exactly correspond to
the volume of the batch. Instead, they would cover the first portion of the batch. The
remaining portion of the batch would not be assigned a RIN. For clarity in regards to batch
splits, a party could assign the gallon-RINs to the first-out gallons of the batch. Thus if a
batch split occurred, every gallon drawn out of the original batch to form a new, smaller
batch would be assigned a gallon-RIN, up to the point when all the available gallon-RINs
were assigned to the new batch. Any additional gallons drawn out of the original batch, or
left with the original batch, would have no associated RINs. However, we are not requiring
this approach but only offer it as one possibility. We propose that parties that have
ownership or custody of batches of renewable fuel have the discretion to split batches and
their associated RINs in any way, subject to certain restrictions. Batch splits are discussed in
more detail in Section III.E.1.b.i.
3. Calculating And Reporting Compliance
Under our proposed program, RINs would form the basis of the volume accounting
and tracking system that would allow each obligated party to demonstrate that they had
discharged their renewable fuel obligation. This section describes how the compliance
process using RINs would work. Our proposed approach to the distribution and trading of
RINs is covered separately in Section III.E below.
a. Using RINs To Meet The Standard
Under our proposed program, each obligated party would determine its Renewable
Volume Obligation (RVO) based on the applicable percentage standard and its annual
gasoline volume as described in Section III.A.4. The RVO represents the volume of
renewable fuel that the obligated party must ensure is produced for use in the U.S. in a given
calendar year. Since the nationwide renewable fuel volumes shown in Table I.B-1 are
required by the Act to be consumed in whole calendar years, the RVO for each obligated
party is likewise an obligation that is calculated on an annual basis.
Since our proposed program uses RINs as a measure of the amount of renewable fuel
used as motor vehicle fuel that is sold or introduced into commerce within the U.S., obligated
parties would meet their RVO through the accumulation of RINs. In so doing, they would
effectively be causing the renewable fuel represented by the RINs to be consumed as motor
vehicle fuel. Obligated parties would not be required to physically blend the renewable fuel
into gasoline or diesel fuel themselves. The accumulation of RINs would be the means
through which each obligated party would show compliance with its RVO, and thus with the
renewable fuel standard.
For each calendar year, each obligated party would be required to submit a report to
the Agency documenting the RINs it acquired, and showing that the sum of all gallon-RINs
acquired were equal to or greater than its RVO. This reporting is discussed in more detail in
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