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

fuel in its neat form and it is in fact only used as such. Given the lack of any significant
use of ethanol in its neat (but denatured) form as a motor vehicle fuel, RINs for neat
ethanol could only be separated by an obligated party or a party that blends it with
gasoline. This would include a party that blended ethanol with a small amount of
gasoline to form E85, since there are millions of vehicles in the fleet that can operate on
E85. In this case, E85 would be treated like any other ethanol/gasoline blend.
Under our proposed approach, therefore, any party that holds a batch of renewable
fuel that is typically used in its neat form and was designated by the producer for use in
its neat form as a motor vehicle fuel would be given the right to separate the RIN from
the batch. This approach would recognize that the neat form of the renewable fuel is
valid for compliance purposes under the RFS program, as described in Section III.B.
Biodiesel (mono alkyl esters) is one type of renewable fuel that can under certain
conditions be used in its neat form. However, in the vast majority of cases it is blended
with conventional diesel fuel before use, typically in concentrations of 20 volume percent
or less. This approach is taken for a variety of reasons, including the following:
• To reduce impacts on fuel economy
• To mitigate cold temperature operability issues
• To market biodiesel as an additive rather than an alternative fuel
• To address concerns of some engine owners or manufacturers regarding the
impacts of biodiesel on engine durability or drivability
• To reduce the cost of the resulting fuel
Biodiesel is also used in low concentrations as a lubricity additive and as a means for
complying with the ultra-low sulfur requirements for highway diesel fuel. Biodiesel is
occasionally used in its neat form. However, this approach is the exception rather than
the rule. Consequently, we propose that the RIN assigned to a batch of biodiesel could
only be separated from that batch if and when the biodiesel is blended with conventional
diesel. To avoid claims that very high concentrations of biodiesel count as a blended
product, we also propose that biodiesel must be blended into conventional diesel at a
concentration of 80 volume percent or less before the RIN can be separated from the
batch.
Our proposed approach to biodiesel would mean that biodiesel used in its neat
form would not be valid for compliance purposes under the RFS program. To address
this issue, we request comment on additionally allowing a biodiesel producer to separate
the RIN from the batch if it could establish that it produced the batch of biodiesel
specifically for use as motor vehicle fuel in its neat form, and that the biodiesel was in
fact used in its neat form.
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