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 1 are valid for compliance with the
cellulosic biofuel RVO.
    (ii) RINs with a D code of 2 are valid for compliance with the
biomass-based diesel RVO.
    (iii) RINs with a D code of 1, 2, or 3 are valid for compliance
with the advanced biofuel RVO.
    (iv) RINs with a D code of 1, 2, 3, or 4 are valid for compliance
with the renewable fuel RVO.
    (3) For purposes of demonstrating compliance for calendar year
2010, RINs generated in 2009 pursuant to Sec.  80.1126 that are not
used for compliance purposes for calendar year 2009 may be used for
compliance in 2010, insofar as permissible pursuant to paragraphs
(a)(5) and (a)(7)(iv) of this section, as follows:
    (i) A 2009 RIN with an RR code of 15 or 17 is deemed equivalent to
a RIN generated pursuant to Sec.  80.1426 having a D code of 2.
    (ii) A 2009 RIN with a D code of 1 is deemed equivalent to a RIN
generated pursuant to Sec.  80.1426 having a D code of 1.
    (iii) All other 2009 RINs are deemed equivalent to RINs generated
pursuant to Sec.  80.1426 having D codes of 4.
    (iv) A 2009 RIN that is retired pursuant to Sec.  80.1129(e)
because the associated volume of fuel is not used as motor vehicle fuel
may be reinstated pursuant to Sec.  80.1429(f)(1).
    (4) 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.
    (5) Except as provided in paragraph (a)(7)(iv) of this section, the
value of ([Sigma]RINNUM)i-1 may not exceed values determined
by the following inequalities:

([Sigma]RINNUM)CB,i-1 <= 0.20 * RVOCB,i

([Sigma]RINNUM)BBD,i-1 <= 0.20 * RVOBBD,i

([Sigma]RINNUM)AB,i-1 <= 0.20 * RVOAB,i

([Sigma]RINNUM)RF,i-1 <= 0.20 * RVORF,i

    (6) Except as provided in paragraphs (a)(7)(ii) and (iii) of this
section, 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. 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 RVOBBD,2010 by an amount equal to
the sum of all 2008 and 2009 RINs used for compliance purposes for
calendar year 2009 which have 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:

([Sigma]RINNUM)BBD,2010 + ([Sigma]RINNUM)BBD,2009
+ ([Sigma]RINNUM)BBD,2008 = RVOBBD,2010

Where:

([Sigma]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
RVOBBD,2010, in gallons.
([Sigma]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
RVOBBD,2010, in gallons.
([Sigma]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
RVOBBD,2010, in gallons.
RVOBBD,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 Sec.
80.1407 or Sec.  80.1430, as adjusted by paragraph (a)(7)(i) of this
section.

    (iii) RINs generated in 2008 or 2009 which have not been used for

compliance purposes for calendar years 2008 or 2009 and which have an
RR code of 15 or 17 may be used to demonstrate compliance with the 2010
biomass-based diesel RVO.
    (iv) For compliance with the biomass-based diesel RVO in calendar
year 2010 only, the values of ([Sigma]RINNUM)2008 and
([Sigma]RINNUM)2009 may not exceed values determined by both
of the following inequalities:

([Sigma]RINNUM)BBD,2008 <= 0.087 * RVOBBD,2010

([Sigma]RINNUM)BBD,2008 + ([Sigma]RINNUM)BBD,2009
<= 0.20 * RVOBBD,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 Sec. Sec.
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 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 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.
    (2) A deficit is calculated according to the following formula:

Di = RVOi-[([Sigma]RINNUM)i +
([Sigma]RINNUM)i-1]

Where:

Di = 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.
RVOi = The Renewable Volume Obligation for the obligated
party or renewable fuel exporter for calendar year i, in gallons.
    ([Sigma]RINNUM)i = Sum of all acquired gallon-RINs
that were generated in year i and are being applied towards the
RVOi, in gallons.
    ([Sigma]RINNUM)i-1 = Sum of all acquired gallon-RINs
that were generated in year i-1 and are being applied towards the
RVOi, in gallons.

Sec.  80.1428   General requirements for RIN distribution.

    (a) RINs assigned to volumes of renewable fuel and RINs generated,
but not assigned. (1) Definitions. (i) Assigned RIN, for the purposes
of this subpart, means a RIN assigned to a volume of renewable fuel
pursuant to Sec.  80.1426(e) with a K code of 1.
    (ii) RINS generated, but not assigned are those RINs that have been
generated pursuant to 80.1426(a), but have not been assigned to a
volume of renewable fuel pursuant to 80.1426(e).
    (2) Except as provided in Sec.  80.1429, no party can separate a
RIN that has been assigned to a batch pursuant to Sec.  80.1426(e).
    (3) An assigned RIN cannot be transferred 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 every 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:

[Sigma](RIN)D <= [Sigma](Vsi * 2.5)D

Where:

D = Applicable date.
[Sigma](RIN)D = Sum of all assigned gallon-RINs with a K
code of 1 and all RINs generated, but not assigned that are owned on
date D.
(Vsi)D = Volume i of renewable fuel owned on
date D, standardized to 60 [deg]F, in gallons.
[Sigma](Vsi * 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 assigned RINs must be documented
on product transfer documents generated pursuant to Sec.  80.1453.
    (i) The RIN must be recorded on the product transfer document used
to transfer ownership of the volume 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 transfer ownership of the volume of renewable
fuel.
    (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 separated from a volume of renewable fuel pursuant to
Sec.  80.1429.
    (2) Any party that has registered pursuant to Sec.  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. A RIN is valid for compliance during the year
in which it was generated, or the following year. Any RIN that is not
used for compliance purposes during the year that it was generated, or
during the following year, will be considered an expired RIN. Pursuant
to Sec.  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-RINs, 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 batch-RINs is equal to the gallon-RINs associated with the
parent batch-RIN.

Sec.  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 from volumes of renewable fuel
become separated RINs subject to the provisions of Sec.  80.1428(b).
    (b) A RIN that is assigned to a volume of renewable fuel is
separated from that volume only under one of the following conditions:
    (1) Except as provided in paragraph (b)(6) of this section, a party
that is an obligated party according to Sec.  80.1406 must separate any
RINs that have been assigned to a volume of renewable fuel if they own
that volume.
    (2) Except as provided in paragraph (b)(5) of this section, any
party that owns a volume of renewable fuel must separate any RINs that
have been assigned to that volume once the volume is blended with
gasoline or diesel to produce a transportation fuel,

home 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 renewable fuel must separate
any RINs that have been assigned to the exported volume.
    (4) Any party that produces, imports, owns, 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, home heating oil, or jet fuel: and
    (ii) The neat renewable fuel or blend is used without further
blending, in the designated form, as transportation fuel, home heating
oil, or jet fuel.
    (5) RINs assigned to a volume of biodiesel (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)(5) shall not apply to obligated parties or
exporters of renewable fuel.
    (ii) This paragraph (b)(5) shall not apply to parties meeting the
requirements of paragraph (b)(4) of this section.
    (6) For RINs that an obligated party generates 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 separated
in a calendar year is less than or equal to a limit set as follows:
    (i) For RINs with a D code of 1, the limit shall be equal to
RVOCB.
    (ii) For RINs with a D code of 2, the limit shall be equal to
RVOBBD.
    (iii) For RINs with a D code of 3, the limit shall be equal to
RVOAB -- RVOCB--RVOBBD.
    (iv) For RINs with a D code of 4, the limit shall be equal to
RVORF -- RVOAB.
    (7) For a party that has received a small refinery exemption under
Sec.  80.1441 or a small refiner exemption under Sec.  80.1442, and is
not otherwise an obligated party, during the period of time that the
small refinery or small refiner exemptions are in effect, the party 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 home heating oil or jet fuel.
    (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 RIN 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 separated RINs transferred.
    (2) [Reserved]
    (e) Upon and after separation of a RIN from its associated volume
of renewable fuel, product transfer documents used to transfer
ownership of the volume must continue to meet the requirements of Sec.
80.1453(a)(5)(iii).
    (f) Any party that uses a renewable fuel in a commercial or
industrial boiler or ocean-going vessel (as defined in Sec.  80.1401),
or designates a renewable fuel for use in a boiler or ocean-going
vessel, must retire any RINs received with that renewable fuel and
report the retired RINs in the applicable reports under Sec.  80.1452.
Any 2009 RINs retired pursuant to Sec.  80.1129(e) may be reinstated by
the retiring party for sale or use to demonstrate compliance with a
2010 RVO.

Sec.  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 Sec.  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 biodiesel (mono-alkyl ester) or non-
ester renewable diesel, a renewable fuel exporter's Renewable Volume
Obligation for biomass-based diesel shall be calculated according to
the following formula:

RVOBBD,i = [Sigma](VOLk *
EVk)i + DBBD,i-1

Where:

RVOBBD,i = The Renewable Volume Obligation for biomass-
based diesel for the exporter for calendar year i, in gallons.
k = A discrete volume of biodiesel (mono-alkyl ester) or non-ester
renewable diesel fuel.
VOLk = The standardized volume of discrete volume k of
exported biodiesel (mono-alkyl ester) or non-ester renewable diesel,
in gallons, calculated in accordance with Sec.  80.1426(d)(10).
EVk = The equivalence value associated with discrete
volume k.
[Sigma] = Sum involving all volumes of biodiesel (mono-alkyl ester)
or non-ester renewable diesel exported.
DBBD,i-1 = Deficit carryover from the previous year for
biomass-based diesel, in gallons.

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

RVORF,i = [Sigma](VOLk *
EVk)i + DRF,i-1

Where:
RVORF,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.
VOLk = The standardized volume of discrete volume k of
exported renewable fuel, in gallons, calculated in accordance with
Sec.  80.1426(d)(10).
EVk = The equivalence value associated with discrete
volume k.
[Sigma] = Sum involving all volumes of renewable fuel exported.
DRF,i-1 = Deficit carryover from the previous year for
renewable fuel, in gallons.

    (3)(i) If the equivalence value for a volume of renewable fuel can
be determined pursuant to Sec.  80.1415 based on its composition, then
the appropriate equivalence value shall be used in the calculation of
the exporter's Renewable Volume Obligations.
    (ii) If the equivalence value for a volume of renewable fuel cannot
be determined, the value of EVk shall be 1.0.
    (c) Each exporter of renewable fuel must demonstrate compliance
with its RVOs using RINs it has acquired, pursuant to Sec.  80.1427.

Sec.  80.1431   Treatment of invalid RINs.

    (a) Invalid RINs. An invalid RIN is a RIN that is any of the
following:
    (1) Is a duplicate of a valid RIN.
    (2) Was based on volumes that have not been standardized to 60
[deg]F.
    (3) Has expired, except as provided in Sec.  80.1428(c).
    (4) Was based on an incorrect equivalence value.
    (5) Is deemed invalid under Sec.  80.1467(g).
    (6) Does not represent renewable fuel as defined in Sec.  80.1401.
    (7) Was assigned an incorrect ``D'' code value under Sec.
80.1426(d)(3) for the associated volume of fuel.

    (8) In the event that the same RIN is transferred to two or more
parties, all such RINs are deemed invalid, unless EPA in its sole
discretion determines that some portion of these RINs is valid.
    (9) Was otherwise improperly generated.
    (b) In the case of RINs that are invalid, the following provisions
apply:
    (1) Upon determination by any party that 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 Sec.  80.1452(c)(2) for
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 invalid RINs to another party
before applying the valid RINs to meet the party's Renewable Volume
Obligations at the end of the compliance year.

Sec.  80.1432  Reported spillage or disposal 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
corresponding 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 Sec.  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 generated 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 Sec.  80.1452.
    (2) May not be transferred to another party or used by any
obligated party to demonstrate compliance with the party's Renewable
Volume Obligations.

Sec. Sec.  80.1433-80.1439  [Reserved]

Sec.  80.1440  What are the provisions for blenders who handle and
blend less than 125,000 gallons of renewable fuel per year?

    (a) Renewable fuel blenders who handle 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-related
responsibilities to the party directly upstream of them who supplied
the 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 Sec.  80.1429.
    (2) The recordkeeping requirements of Sec.  80.1451.
    (3) The reporting requirements of Sec.  80.1452.
    (4) The attest engagement requirements of Sec.  80.1464.
    (c) For upstream delegation of RIN-related responsibilities, both
parties must agree on the delegation, and a quarterly written statement
signed by both parties must be included with the reporting party's
reports under Sec.  80.1452.
    (1) If EPA finds that a renewable fuel blender improperly delegated
its RIN-related responsibilities under this subpart M, the blender will
be held accountable for any RINs separated and will be subject to all
RIN-related responsibilities under this subpart.
    (2) [Reserved]
    (d) Renewable fuel blenders who handle 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.

Sec.  80.1441  Small refinery exemption.

    (a)(1) Transportation fuel produced at a refinery by a refiner, or
foreign refiner (as defined at Sec.  80.1465(a)), is exempt through
December 31, 2010 from the renewable fuel standards of Sec.  80.1405;
and the refinery, or foreign refinery, is exempt from the requirements
that apply to obligated parties under this subpart M if that refinery
meets the definition of a small refinery under Sec.  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 paragraph (e) of this section).
    (3) For the purposes of this section, the term ``refiner'' shall
include foreign refiners.
    (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.
    (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 December 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 submitted by January 1, 2010 to
one of the addresses listed in paragraph (h) of this section.
    (3) For foreign refiners the small refinery exemption shall be
effective upon approval, by EPA, of a small refinery application. The
application must contain all of the elements required for small
refinery verification letters (as specified in paragraph (b)(1) of this
section), must satisfy the provisions of Sec.  80.1465(f) through (h)
and (o), and must be submitted by January 1, 2010 to one of the
addresses listed in paragraph (h) of this section.
    (4) Small refinery verification letters are not required for those
refiners who have already submitted a verification letter under subpart
K of this Part 80.
    (c) If EPA finds that a refiner provided false or inaccurate
information regarding a refinery's crude throughput (pursuant to
paragraph (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 Sec.  80.1407) transportation fuel
from any refinery

receiving the small refinery exemption under paragraph (a) of this
section.
    (e)(1) The exemption period in paragraph (a) of this section 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 the requirements of this subpart would 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 disproportionate economic
hardship, at any time.
    (i) A petition for an extension of the small refinery exemption
must specify the factors that demonstrate a disproportionate economic
hardship and must provide a detailed discussion regarding the hardship
the refinery would face in producing transportation fuel meeting the
requirements of Sec.  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 approved 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 Sec.
80.1405 and all other requirements that apply to obligated 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 either an approved
small refiner (as defined under Sec.  80.1442(a)) or another refiner
with an approved small refinery exemption under paragraph (a) of this
section shall 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.

Sec.  80.1442  What are the provisions for small refiners under the RFS
program?

    (a)(1) To qualify as a small refiner under this section, a refiner
must meet all of the following criteria:
    (i) The refiner produced transportation 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 average 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 calendar day (bpcd) for 2006.
    (2) For the purposes of this section, the term ``refiner'' shall
include foreign refiners.
    (b) Applications for small refiner status. (1) Applications for
small refiner status under this section must be submitted to EPA by
January 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 activities 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 may 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 application is true to the best of his/her
knowledge.
    (viii) Name, address, phone number, facsimile number, and e-mail
address of a corporate contact person.
    (3) In the case of a refiner who acquires or reactivates a refinery
that was shut down or non-operational between January 1, 2005 and
January 1, 2006, the information required in paragraph (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 refiner exemption shall be
effective upon approval, by EPA, of a small refiner application. The
application must contain all of the elements required for small refiner
status applications (as specified in paragraph (b)(2) of this section),
must satisfy the provisions of Sec.  80.1465(f) through (h) and (o),
must demonstrate compliance with the crude oil capacity criterion of
paragraph (a)(1)(iii) of this section, and must be submitted by January
1, 2010 to one of the addresses listed in paragraph (i) of this
section.
    (c) Small refiner temporary exemption. (1) Transportation fuel
produced by a refiner, or foreign refiner (as defined at Sec.
80.1465(a)), is exempt through December 31, 2010 from the renewable
fuel standards of Sec.  80.1405 and the requirements that apply to
obligated parties under this subpart if the refiner or foreign refiner
meets all of the following criteria:
    (i) The refiner produced transportation 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 average 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 calendar day (bpcd) for 2006.
    (2) The small refiner exemption shall apply to an approved small
refiner unless that refiner chooses to waive 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 paragraph (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 will 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 Sec.  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 small refiners under this section 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 approved small refiners.
    (f) If EPA finds that a refiner provided false or inaccurate
information in its application for small refiner status under 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 this 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 extension of the temporary exemption of
paragraph (c)(1) of this section based on a showing of all the
following:
    (i) Circumstances exist that impose disproportionate economic
hardship on the refiner and significantly affect 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 approved, 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 Sec.  80.1405 (and all other requirements of this
subpart applicable to obligated parties), as expeditiously as possible.
    (ii) A detailed description of the refinery 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.
    (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 application and the end
of its approved extension period.
    (5) EPA may impose reasonable conditions on extensions of the
temporary exemption, including reducing the length 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 refiner temporary exemption under
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.

Sec.  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 section 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.
    (e) Upon approval of the petition by the Administrator:
    (1) EPA shall calculate the standards for the following year,
including the total gasoline and diesel fuel volume for 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 Sec.  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 Sec.  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.

Sec.  80.1444-80.1448  [Reserved]

Sec.  80.1449  What are the Production Outlook Report requirements?

    (a) A renewable fuel producer or importer, for each of its
facilities, must submit all the following information, as applicable,
to EPA annually beginning February 28, 2010:
    (1) The type, or types, of renewable fuel expected to be produced
or imported at each facility owned by the renewable fuel producer or
importer.
    (2) The volume of each type of renewable 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.
    (iii) Feedstocks and production processes 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 facilities that are planned
or underway, information on all the following:
    (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.
    (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 must provide an update of the
progress in each of the areas listed in paragraph (a)(5) of this
section.
    (d) Production outlook reports shall 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
Program-Production Outlook Reports, 6406J, 1310 L Street, NW., 6th
floor, Washington, DC 20005.<PHONE_NUMBER>.

Sec.  80.1450  What are the registration requirements under the RFS
program?

    (a) Obligated Parties and Exporters. Any obligated party described
in Sec.  80.1406, and any exporter of renewable fuel described in Sec.
80.1430, must provide EPA with the information specified for
registration under Sec.  80.76, if such 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.
Registration information must be submitted to EPA by January 1, 2010 or
60 days prior to engaging in any transaction involving RINs, whichever
is later.
    (b) Producers. Except as provided in Sec.  80.1426(b)(1), 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 Sec.  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 must be submitted to EPA by January 1, 2010 or 60 days
prior to the production of any renewable fuel subject to this subpart,
whichever is later:
    (1) A description of the types of renewable fuels and co-products
produced at the facility and all the following for each product type:
    (i) A list of the feedstocks capable of being utilized by the
facility.
    (ii) A description of the facility's renewable fuel production
processes.
    (iii) The facility's renewable fuel production capacity.
    (iv) A list of the facility's process energy sources.
    (v) For a producer of renewable fuel with a facility that commenced
construction on or before December 19, 2007 per Sec.  80.1403:
    (A) The location of the facility.
    (B) Record of costs of additions, replacements, and repairs
inclusive of labor costs conducted at the facility since December 19,
2007.
    (C) The estimated life of the facility.
    (D) A discussion of any economic or technical limitations the
facility may have in using a fuel production pathway that will achieve
a 20 percent reduction in GHG as compared to baseline fuel.
    (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 licensed Professional Engineer who works in the chemical
engineering field and who is licensed by the appropriate state agency.
    (ii) To be considered an independent 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
regulations, 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 Sec.  80.1451(b)(7).
    (c) Importers. Importers of renewable fuel must provide EPA the
information specified under Sec.  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 by January 1,
2010 or 60 days prior to engaging in any transaction involving RINs,
whichever is later.
    (d) Registration updates. Except as provided in Sec.
80.1426(b)(1):
    (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 Sec.  80.1425(g) that is not reflected
in the producer's registration information on file with EPA must update
his registration information and submit a copy of an updated
independent 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 within
7 days of the change.
    (e) Parties who own RINs or who intend to own RINs. Any party who
owns or intends to own RINs, but who is not covered by paragraphs (a),
(b), or (d) of this section, must provide EPA the information specified
under Sec.  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 must be submitted to EPA by January 1, 2010 or 60 days
prior to engaging in any transaction involving RINs, whichever is
later.
    (f) Registration shall be on forms, and following policies,
established by the Administrator.

Sec.  80.1451  What are the recordkeeping requirements under the RFS
program?

    (a) Beginning January 1, 2010, any obligated party (as described at
Sec.  80.1406) or exporter of renewable fuel (as described at Sec.
80.1430) must keep all of the following records:
    (1) Product transfer documents consistent with Sec.  80.1453 and
associated with the obligated party's activity, if any, as transferor
or transferee of renewable fuel.

    (2) Copies of all reports submitted to EPA under Sec. Sec.  80.1449
and 80.1452(a).
    (3) Records related to each RIN transaction, including all the
following:
    (i) A list of the RINs owned, purchased, sold, 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 Sec.  80.1407 or Sec.  80.1430.
    (ii) List of RINs used to demonstrate compliance.
    (iii) Additional information related to details of RIN use for
compliance.
    (b) Beginning January 1, 2010, any foreign or domestic producer of
a renewable fuel as defined in Sec.  80.1401 must keep all of the
following records:
    (1) Product transfer documents consistent with Sec.  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 submitted to EPA under Sec. Sec.  80.1449
and 80.1452(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 Sec.  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 information related to details of RIN generation.
    (4) Records related to each RIN transaction, including all of the
following:
    (i) A list of the RINs owned, purchased, sold, retired, or
reinstated.
    (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, importation, ownership, sale
or use of any volume of renewable fuel or blend 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) 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 Sec.
80.1401) if RINs are generated, or sufficient to verify that feedstocks
used are not renewable biomass if no RINs are generated.
    (i) Renewable fuel producers who use planted crops or crop residue
from existing agricultural land, or 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
continuously 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 residue, livestock, or slash;
purchasing records for fertilizer, weed control, or reseeding,
including seeds, seedlings, or other nursery stock; a written
management plan for agricultural or silvicultural purposes;
documentation of participation in an agricultural, or silvicultural
program sponsored by a Federal, state or local government agency; or
documentation of land management in accordance with an agricultural or
silvicultural product certification program.
    (ii) Renewable fuel producers who use any other type of renewable
biomass must have written certification from their feedstock supplier
that the feedstock qualifies as renewable biomass.
    (iii) Renewable fuel producers who do not use renewable biomass
must have written certification from their feedstock supplier that the
feedstock does not qualify as renewable biomass.
    (7) Copies of registration documents required under Sec.  80.1450,
including information on fuels and products, feedstocks, facility
production processes and capacity, energy sources, and independent
third party engineering review.
    (c) Beginning January 1, 2010, any importer of a renewable fuel (as
defined in Sec.  80.1401) must keep all of the following records:
    (1) Product transfer documents consistent with Sec.  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 submitted to EPA under Sec. Sec.  80.1449
and 80.1452(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 Sec.  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) Additional information related to details of RIN generation.
    (4) Records related to each RIN transaction, including all of the
following:
    (i) A list of the RINs owned, purchased, sold, retired, or
reinstated.
    (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) Documents associated with feedstock purchases and transfers,
sufficient to verify that feedstocks used are renewable biomass (as
defined in Sec.  80.1401) if the importer generates RINs.
    (6) Documents associated with feedstock purchases and transfers,
sufficient to verify that feedstocks used are not renewable biomass as
defined in Sec.  80.1401 if the importer does not generate RINs.
    (7) Copies of registration documents required under Sec.  80.1450.
    (8) Records related to the import of any volume of renewable fuel
that the importer designates for use as transportation fuel, jet fuel,
or home heating oil.
    (d) Beginning January 1, 2010, any production facility with a
baseline volume of fuel that is not subject to the 20% GHG threshold,
pursuant to Sec.  80.1403(a), must keep all of the following:
    (1) Detailed engineering plans for the facility.
    (2) Federal, State, and local preconstruction approvals and
permitting.
    (3) Procurement and construction 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.
    (e) Beginning January 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 consistent with Sec.  80.1453 and
associated with the party's activity, if any, as transferor or
transferee of renewable fuel.
    (2) Copies of all reports submitted to EPA under Sec.  80.1452(c).
    (3) Records related to each RIN transaction by renewable fuel
category, including all of the following:
    (i) A list of the RINs owned, purchased, sold, 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 any volume of renewable fuel that the party
designated for use as transportation fuel, jet fuel, or home heating
oil and from which RINs were separated pursuant to Sec.  80.1429(b)(4).
    (f) The records required under paragraphs (a) through (c) of this
section and under Sec.  80.1453 shall be kept for five years from the
date they were created, except that records related to transactions
involving RINs shall be kept for five years from the date of transfer.
    (g) The records required under paragraph (d) of this section shall
be kept through calendar year 2022.
    (h) On request by EPA, the records required under this section and
under Sec.  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 the records shall be made available; or, if requested
by EPA, electronic records shall be converted to paper documents.
    (i) The records required in paragraphs (b)(6) and (b)(7) of this
section must be provided to the importer of the renewable fuel by any
foreign producer not generating RINs for his renewable fuel.

Sec.  80.1452  What are the reporting requirements under the RFS
program?

    (a) Obligated parties and exporters. Any obligated party described
in Sec.  80.1406 or exporter of renewable fuel described in Sec.
80.1430 must submit to EPA reports according to the schedule, and
containing all the information, that is set forth in this paragraph
(a).
    (1) Annual compliance demonstration reports for the previous
compliance period shall be submitted on 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 party is complying on a corporate (aggregate) or
facility-by-facility basis.
    (iv) The EPA facility registration number, if complying on a
facility-by-facility basis.
    (v) The production volume of all of the products listed in Sec.
80.1407(c) and (f) for the reporting year.
    (vi) The RVOs, as defined in Sec.  80.1427(a) for obligated parties
and Sec.  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 type of renewable fuel, as
those fuels are defined in Sec.  80.1401 (i.e., cellulosic biofuel,
biomass-based diesel, advanced biofuels, and renewable fuels), used for
compliance.
    (ix) The total prior-year RINs by renewable fuel type, as those
fuels are defined in Sec.  80.1401, used for compliance.
    (x) A list of all RINs used for compliance in the reporting year.
    (A) For the 2010 reporting year only (January 1--December 31,
2010), a list of all 38-digit RINs used to demonstrate compliance.
    (B) Starting January 1, 2011, RINs used to meet compliance will be
conveyed via the EPA Moderated Transaction System (EMTS) as set forth
in paragraph (e) of this section.
    (xi) Any deficit RVO(s) carried into the subsequent year.
    (xii) Any additional information that the Administrator may
require.
    (2) The RIN transaction reports required 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 (domestic 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) Until December 31, 2010, renewable fuel production reports
for each facility owned by the renewable fuel producer or importer
shall be submitted monthly, according to the schedule specified in
paragraph (d)(1) of this section.
    (ii) Starting January 1, 2011, renewable fuel production reports
for each facility owned by the renewable fuel producer or importer
shall be submitted in accordance with paragraph (e)(2) of this section.
    (iii) The renewable fuel production 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
either assigned or not assigned a unique batch-RIN per Sec.
80.1426(b)(2):
    (A) The renewable fuel producer's name.
    (B) The EPA company registration number.
    (C) The EPA facility registration number.
    (D) The applicable monthly reporting period.
    (E) Whether RINs were generated for each batch according to Sec.
80.1426.
    (F) The production date of each batch.
    (G) The type of renewable fuel of each batch, as defined in Sec.
80.1401.
    (H) Information related to the volume of denaturant and applicable
equivalence value of each batch.
    (I) The volume of each batch produced.
    (J) The process(es) and feedstock(s) used and proportion of
renewable volume attributable to each process and feedstock.
    (K) The type and volume of co-products produced with each batch of
renewable fuel.
    (L) In the case that RINs were generated for the batch, a list of
the RINs generated and a certification that the feedstock(s) used for
each batch meets the definition of renewable biomass as defined in
Sec.  80.1401.
    (M) In the case that RINs were not generated for the batch, an
explanation as to the reason for not generating RINs.
    (N) Any additional information the Administrator may require.
    (2) The RIN transaction reports required 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 (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) Until December 31, 2010, RIN transaction reports listing
each RIN transaction shall be submitted monthly according to the
schedule in paragraph (d)(1) of this section.
    (ii) Starting January 1, 2011, RIN transaction reports listing each
RIN transaction shall be submitted in accordance with paragraph (e)(3)
of this section.
    (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 monthly reporting period.
    (E) Transaction type (i.e., RIN purchase, RIN sale, retired RIN,
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) For a retired RIN, the reason for retiring the RIN (e.g.,
invalid RIN under Sec.  80.1431, reportable spill under Sec.  80.1432,
foreign producer volume correction under Sec.  80.1466(e), renewable
fuel used in a boiler or ocean-going vessel under Sec.  80.1429(f),
enforcement obligation, or use for compliance (per paragraph (a)(1)(x)
of this section), etc.).
    (L) Any additional information that the Administrator may require.
    (2) Quarterly RIN activity reports shall be submitted to EPA
according to the schedule specified in paragraph (d)(2) of this
section. Each report shall summarize RIN activities for the reporting
period, separately for RINs separated from a renewable fuel volume and
the sum of both RINs assigned to a renewable fuel volume and RINs
generated, but not assigned 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) For parties reporting RIN activity under this paragraph for
RINs generated, but not assigned to a renewable fuel volume and/or RINs
assigned to a volume of renewable fuel, and the volume of renewable
fuel (in gallons) owned at the end of the quarter.
    (xiv) The total 2009 retired RINs reinstated.
    (xv) Any additional information that the Administrator may require.
    (3) All reports required under this paragraph (c) must be signed
and certified as meeting all the applicable requirements of this
subpart by the RIN owner or a responsible corporate officer of the RIN
owner.
    (d) Report submission deadlines. The submission deadlines for
monthly and quarterly reports shall be as follows:
    (1) Monthly reports shall be submitted to EPA by the last day of
the next calendar month following the compliance period (i.e., the
report covering January would be due by February 28th, the report
covering February would be due by March 31st, etc.).
    (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 31st, the report covering
April-June would be due by August 31st, the report covering July-
September would be due by November 30th and the report covering
October-December would be due by February 28th).
    (e) EPA Moderated Transaction System (EMTS). (1) Each party
required to report under this section must establish an account with
EMTS by October 1, 2010 or sixty (60) days prior to engaging in any
transaction involving RINs, whichever is later.
    (2) Starting January 1, 2011, 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 three (3)
business days:
    (i) The renewable fuel producer's or importer's name.
    (ii) The EPA company registration number.
    (iii) The EPA facility registration number.
    (iv) Whether RINs were generated for the batch, according to Sec.
80.1426.
    (v) The production date of the batch.
    (vi) The type of renewable fuel of the batch, as defined in Sec.
80.1401.
    (vii) Information related to the volume of denaturant and
applicable equivalence value of each batch.
    (viii) The volume of the batch.
    (ix) The process(es) and feedstock(s) used and proportion of
renewable volume attributable to each process and feedstock.
    (x) A certification that the feedstock(s) used for each batch meets
the definition of renewable biomass as defined in Sec.  80.1401.
    (xi) The type and volume of co-products produced with the batch of
renewable fuel.
    (xii) In the case that RINs were generated for the batch, a list of
the RINs generated and a certification that the feedstock(s) used for
each batch meets the definition of renewable biomass as defined in
Sec.  80.1401.
    (xiii) In the case that RINs were not generated for the batch, an
explanation as to the reason for not generating RINs.
    (xiv) Any additional information the Administrator may require.
    (3) Starting January 1, 2011, each time any party engages in a
transaction involving RINs, all the following information must be
submitted to EPA within three (3) business days:
    (i) The submitting party's name.
    (ii) The party's EPA company registration number.
    (iii) [Reserved]
    (iv) The applicable monthly reporting period.
    (v) Transaction type (i.e., RIN purchase, RIN sale, retired RIN).
    (vi) Transaction date.
    (vii) For a RIN purchase or sale, the trading partner's name.
    (viii) 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.
    (ix) RIN subject to the transaction.
    (x) For a RIN purchase or sale, the per gallon RIN price and/or the
per gallon renewable price if the RIN price is included.
    (xi) For a retired RIN, the reason for retiring the RIN (e.g.,
reportable spill under Sec.  80.1432, foreign producer volume
correction under Sec.  80.1466(e), renewable fuel used in a boiler or
ocean-going vessel under Sec.  80.1429(f), enforcement obligation, or
use for compliance (per paragraph (a)(1)(x) of this section), etc.).

    (xii) Any additional information that the Administrator may
require.
    (f) All reports required under this section shall be submitted on
forms and following procedures prescribed by the Administrator.

Sec.  80.1453  What are the product transfer document (PTD)
requirements for the RFS program?

    (a) On each occasion when any party transfers ownership of
renewable fuels subject to this subpart, the transferor must provide to
the transferee documents identifying the renewable fuel and any
assigned RINs which include all of the following information, as
applicable:
    (1) The name and address of the 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) 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 being transferred on a separate PTD
from that which is used to transfer ownership 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 Sec.  80.1129(b)(4), then all PTDs which are at any time
used to transfer ownership of the 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 the
information required under paragraphs (a)(1) through (a)(4) of this
section if such codes are clearly understood by each transferee.
    (c) The RIN number required under paragraph (a)(5) of this section
must always appear in its entirety.
    (d) If a RIN is traded in the EPA-Moderated Trading System (EMTS)
as described in Sec.  80.1452(e), the transferor must provide to the
transferee documents that include all information as described in
paragraphs (a) and (b) of this section and the number of RINs
transferred identified by all the following:
    (1) Assignment (Assigned or Separated).
    (2) Type and/or D code (cellulosic biofuel D=1, biomass-based
diesel D=2, advanced biofuel D=3, renewable fuel D=4).
    (3) RIN generation year.

Sec.  80.1454  What are the provisions for renewable fuel production
facilities and importers who produce or import less than 10,000 gallons
of renewable fuel per year?

    (a) 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 following requirements of this subpart:
    (1) The recordkeeping requirements of Sec.  80.1451.
    (2) The reporting requirements of Sec.  80.1452.
    (3) The attest engagement requirements of Sec.  80.1464.
    (4) The production outlook report requirements of Sec.  80.1449.
    (b)(1) Renewable fuel production facilities and importers who
produce or import less than 10,000 gallons of renewable fuel each year
and that generate and/or assign RINs to batches of renewable fuel are
subject to the provisions of Sec. Sec.  80.1449 through 80.1452, and
80.1464.
    (2) Renewable fuel production 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)(4) of this section, and all other applicable
requirements of this subpart M.

Sec.  80.1455  What are the provisions for cellulosic biofuel
allowances?

    (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 allowances for purchase for that compliance year.
    (1) The price of these allowances will be set by EPA on an annual
basis in accordance with paragraph (d) of this section.
    (2) The total allowances available will be equal to the reduced
cellulosic biofuel volume established by EPA for the compliance year.
    (b) Use of allowances. (1) Allowances are only valid for use in the
compliance year that they are made available.
    (2) Allowances are nonrefundable.
    (3) Allowances are nontransferable except if forfeiting the
allowances to EPA.
    (c) Purchase of allowances. (1) Only parties with an RVO for
cellulosic biofuel may purchase cellulosic biofuel allowances.
    (2) Allowances shall be purchased from EPA at the time that a party
submits its annual compliance report to EPA pursuant to Sec.
80.1452(a)(1).
    (3) Parties may not purchase more allowances than their cellulosic
biofuel RVO minus cellulosic biofuel RINs with a D code of 1 that they
own.
    (4) Allowances may be used to meet an obligated party's RVOs for
the advanced biofuel and total renewable fuel standards.
    (d) Setting the price of allowances. (1) The price for allowances
shall be set equal to the greater of:
    (i) $0.25 per allowance, adjusted for inflation in comparison to
calendar year 2008; or
    (ii) $3.00 less the wholesale price of gasoline per allowance,
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 calculated by comparing the
most recent Consumer Price Index for All Urban 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 value reported
prior to December 31, 2008. When EPA must set the price of allowances
for a compliance year, EPA will calculate the new amounts for
paragraphs (d)(1)(i) and (ii) of this section for each year after 2008
and every month where data is available for the year preceding the
compliance period.
    (e) Cellulosic biofuel allowances under this section will only be
able to be purchased on forms and following procedures prescribed by
EPA.

Sec. Sec.  80.1456-80.1459  [Reserved]

Sec.  80.1460  What acts are prohibited under the RFS program?

    (a) Renewable fuels producer or importer violation. Except as
provided in Sec.  80.1454, no party shall produce or import a renewable
fuel without assigning the proper number of gallon-RINs or identifying
it by a batch-RIN as required under Sec.  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
Sec.  80.1431.
    (3) Transfer to any party a RIN that is not properly identified as
required under Sec.  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 renewable fuel produced from a
feedstock or through a process that is not described 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 Sec.  80.1427.
    (2) Fail to acquire sufficient RINs to meet the party's RVOs under
Sec.  80.1430.
    (3) Use a validly generated RIN to meet the party's RVOs under
Sec.  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 Sec.  80.1401).
    (d) RIN retention violation. No party shall retain RINs in
violation of the requirements in Sec.  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.

Sec.  80.1461  Who is liable for violations under the RFS program?

    (a) Parties liable for violations of prohibited acts. (1) Any party
who violates a prohibition under Sec.  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 Sec.  80.1460(a) through (d) is liable for a violation of Sec.
80.1460(e).
    (b) Parties liable for failure to meet other provisions of this
subpart. (1) Any party who fails to meet a requirement 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.

Sec.  80.1462  [Reserved]

Sec.  80.1463  What penalties apply under the RFS program?

    (a) Any party who is liable for a violation under Sec.  80.1461 is
subject a to civil penalty of up to $32,500, as specified in sections
205 and 211(d) of the Clean Air Act, for every day of each such
violation and the amount of economic benefit or savings resulting from
each violation.
    (b) Any party liable under Sec.  80.1461(a) for a violation of
Sec.  80.1460(c) for failure to meet its RVOs, or Sec.  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 Sec.  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 remains unfulfilled.

Sec.  80.1464  What are the attest engagement requirements under the
RFS program?

    The requirements regarding annual attest engagements in Sec. Sec.
80.125 through 80.127, and 80.130, also apply to any attest engagement
procedures required under this subpart M. In addition to any other
applicable attest engagement procedures, such as the requirements in
Sec.  80.1465, the following annual attest engagement 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
Sec.  80.1406(a) or exporter of renewable fuel that is subject to the
renewable fuel standard under Sec.  80.1405:
    (1) Annual compliance demonstration report. (i) Obtain and read a
copy of the annual compliance demonstration report required under Sec.
80.1452(a)(1) which contains information regarding all the following:
    (A) The obligated party's volume of finished gasoline, reformulated
gasoline blendstock for oxygenate blending (RBOB), and conventional
gasoline blendstock that becomes finished conventional gasoline upon
the addition of oxygenate (CBOB) produced or imported during the
reporting year.
    (B) RVOs.
    (C) RINs used for compliance.
    (ii) Obtain documentation of any volumes of renewable fuel used in
gasoline 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 gasoline reported to EPA in the report
required under Sec.  80.1452(a)(1) with the volumes, excluding any
renewable fuel volumes, contained in the inventory reconciliation
analysis under Sec.  80.133, and verify that the volumes reported to
EPA agree 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 carried 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, spreadsheet, or other documentation for
all RINs used for compliance during the year being reviewed; calculate
the total number of RINs used for compliance 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
Sec.  80.127, of each RIN transaction type (RINs purchased, RINs sold,
RINs retired, RINs reinstated) included in the RIN transaction reports
required under Sec.  80.1452(a)(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 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 Sec.  80.1452(a)(3) for
the compliance year.

    (ii) Obtain the database, spreadsheet, 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 prior-year RINs owned at the start and end of the
quarter, purchased, sold, retired, and reinstated, and for parties that
reported RIN activity for RINs assigned to a volume of renewable fuel,
the volume of renewable fuel owned at the end of the 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 renewable fuel
producer or RIN-generating importer:
    (1) Renewable fuel production reports. (i) Obtain and read copies
of the renewable fuel production reports required under Sec. Sec.
80.1452(b)(1) and (e)(2) for the compliance year.
    (ii) Obtain production data for each renewable fuel batch 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 Sec.  80.1426.
    (iv) Obtain product transfer documents for a representative sample,
selected in accordance with the guidelines in Sec.  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 Sec.  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 applicable information required under Sec.  80.1453.
    (v) Obtain documentation, as required under Sec.  80.1451(b)(6),
associated with feedstock purchases and transfers for a representative
sample, selected in accordance with the guidelines in Sec.  80.127, of
renewable fuel batches produced or imported during the year being
reviewed.
    (A) If RINs were generated for a given batch of renewable fuel,
verify that feedstocks used meet the definition of renewable biomass in
Sec.  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 Sec.  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
Sec.  80.127, of each transaction type (RINs purchased, RINs sold, RINs
retired, RINs reinstated) included in the RIN transaction reports
required under Sec.  80.1452(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 Sec.  80.1452(b)(3) for
the compliance year.
    (ii) Obtain the database, spreadsheet, 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 prior-year RINs owned at the start and end of the
quarter, purchased, sold, retired, and reinstated, and for parties that
reported RIN activity for RINs assigned to a volume of renewable fuel,
the volume of renewable fuel owned at the end of the 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 independent third party engineering review required
under Sec.  80.1450(b)(2).
    (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:
    (1) RIN transaction reports. (i) Obtain and read copies of a
representative sample, selected in accordance with the guidelines in
Sec.  80.127, of each RIN transaction type (RINs purchased, RINs sold,
RINs retired, RINs reinstated) included in the RIN transaction reports
required under Sec.  80.1452(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 Sec.  80.1452(c)(2) for
the compliance year.
    (ii) Obtain the database, spreadsheet, 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 prior-year RINs owned at the start and end of the
quarter, purchased, sold, retired, and reinstated, and for parties that
reported RIN activity for RINs assigned to a volume of renewable fuel,
the volume of renewable fuel owned at the end of the 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 cause 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 and
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.

Sec.  80.1465  What are the additional requirements under this subpart
for foreign small refiners, foreign small refineries, and importers of
RFS-FRFUEL?

    (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 definition of refiner
under Sec.  80.2(i) for a foreign refinery.
    (3) Foreign small refiner is a foreign refiner that has received a
small refinery exemption under Sec.  80.1441 for one or more of its
refineries or a foreign refiner that has received a small refiner
exemption under Sec.  80.1442.
    (4) RFS-FRFUEL is transportation fuel produced at a foreign
refinery that has received a small refinery exemption under Sec.
80.1441 or by a foreign refiner with a small refiner exemption under
Sec.  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 Sec.  80.1441 or by a foreign
refiner with a small refiner exemption under Sec.  80.1442.
    (ii) Transportation fuel produced at a foreign refinery that has
not received a small refinery exemption under Sec.  80.1441 or by a
foreign refiner that has not received a small refiner exemption under
Sec.  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 production, 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 certification, and product
transfer documents.
    (1) Any foreign small refiner must designate 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 the 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.
    (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 RFS-FRFUEL 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 transportation fuel as RFS-FRFUEL.
    (ii) The certification required under paragraph (c)(2) of this
section.
    (d) Load port independent testing and refinery identification. (1)
On each occasion that RFS-FRFUEL is loaded onto a vessel for transport
to the United States the foreign small refiner shall have an
independent third party do all the following:
    (i) Inspect the vessel prior to loading 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 Non-RFS-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, containing 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 party'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 this 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:
    (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 Sec.
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
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 paragraph (d) of this section, with the port of entry
testing as reported under paragraph (k) of this section, for the volume
of transportation 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 the United States importer obtains a
certification from the vessel owner that the requirements of paragraph
(e)(1)(i) of this section were met and that the vessel has not loaded
any transportation fuel or blendstock between the first United States
port of entry and the 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 foreign 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 this 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 refinery 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.
    (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 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 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 refiner 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 governed by the Clean
Air Act, including the EPA administrative forum where allowed under the
Clean Air Act.
    (4) United States substantive and procedural 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 transportation fuel under such
exemption, and all other actions to comply with the requirements 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 United 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).
    (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
actions performed within the scope of EPA employment 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 company 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 subpart, 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 judicial 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 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).
    (h) Bond posting. Any foreign refiner shall meet the requirements
of this paragraph (h) as a condition to approval of a small foreign
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 transportation 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;
    (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 judicial 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 Circular 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 refiner 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 RFS-FRFUEL shall meet the following requirements:
    (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. Additionally, the
importer shall comply with all requirements of this subpart applicable
to importers.
    (3) For each transportation fuel batch classified as RFS-FRFUEL,
any United States importer shall have an independent 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 registration 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, containing the information determined
under paragraph (k)(3)(i) of this section, 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 fuel that is not
classified as RFS-FRFUEL 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 paragraph (c)(2) of this section.
    (ii) Load port and port of entry testing requirements under
paragraphs (d) and (e) of this section.
    (iii) Importer testing requirements 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 pipeline shipments, if applicable,
from the refinery, that ensure segregation of RFS-FRFUEL from that
refinery from all other transportation fuel.
    (ii) Contracts with any terminals and/or pipelines that receive
and/or transport RFS-FRFUEL that prohibit the commingling of RFS-FRFUEL
with Non-RFS-FRFUEL or RFS-FRFUEL from other foreign refineries.
    (iii) Attest procedures to be conducted annually by an independent
third party that review loading records and import documents based on
volume reconciliation, or other 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 requirements 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 Sec.  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 marine vessel, report as a
finding the name and country of registration of each vessel, and the
volumes of RFS-FRFUEL 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 Sec.  80.127, and for each vessel
selected perform all the following:
    (i) Obtain the report of the independent 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 the
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 RFS-FRFUEL 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 any 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 Sec.  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, and 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 and arrival locations and dates
from the independent third party and United States importer reports to
the information contained in the commercial document.
    (5) Obtain separate listings of all tenders 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 Sec.
80.133(b).
    (ii) Obtain a separate listing of the tenders under this paragraph
(m)(5) where the transportation fuel is loaded onto a marine vessel.
Select a sample from this listing in accordance with the guidelines in
Sec.  80.127, and obtain a commercial document of general circulation
that lists vessel arrivals and departures, and that includes the port
and date of departure and the 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 requirements 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 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 Sec. Sec.  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 compliance with the requirements of Sec. Sec.  80.125
through 80.127, 80.130, 80.1464, and this paragraph (m).
    (n) Withdrawal or suspension of foreign small refiner or foreign
small refinery status. EPA may withdraw or suspend a foreign refiner'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 allow EPA inspections as provided
in paragraph (f)(1) of this section;
    (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 applications, 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 procedures 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 actual authority to sign on
behalf of and to bind [insert name of foreign refiner] 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
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
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 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.''.

Sec.  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 assign RINs to
renewable fuel that the foreign producer produces and exports 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 renewable fuel
producers under this subpart.
    (c) Designation, foreign producer certification, and product
transfer documents. (1) Any approved foreign producer under this
section must designate each batch of renewable 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 foreign
producer shall prepare a certification for each batch of RFS-FRRF; the
certification shall include the report of the independent third party
under paragraph (d) of this section, and all the following additional
information:
    (i) The name and EPA registration 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 RFS-FRRF 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 testing and refinery identification. (1)
On each occasion that RFS-FRRF is loaded onto a vessel for transport to
the United States the foreign producer shall have an independent third
party do all the following:
    (i) Inspect the vessel prior to loading 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 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-RFS-FRRF and
other RFS-FRRF produced by a different foreign producer.
    (2) The independent third party shall submit a report to the
following:

    (i) The foreign producer, containing 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 party'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 criteria specified in Sec.
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
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, except
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 section do not apply at subsequent ports of
entry if the United States importer obtains a certification from the
vessel owner that the requirements of paragraph (e)(1)(i) of this
section were met and that 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-corrected 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 section, the importer shall
calculate the difference between the number of RINs originally assigned
by the foreign producer and the number of RINs calculated under Sec.
80.1426 for the volume of renewable fuel as measured at the port of
entry, and retire that amount of RINs in accordance with paragraph
(k)(4) of this section.
    (f) Foreign producer commitments. Any foreign producer shall commit
to and comply with the provisions contained in this paragraph (f) as a
condition to being approved 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 renewable fuel producer operations are
kept; and
    (C) RFS-FRRF is stored or transported 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 gasoline as being RFS-FRRF.
    (C) Transfers of title or custody to RFS-FRRF.
    (D) Work performed and reports prepared by independent third
parties and 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 producer 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.
    (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 governed by the Clean
Air Act, including the EPA administrative forum where allowed under the
Clean Air Act.
    (4) United States substantive and procedural laws shall apply to
any civil or criminal enforcement action against the foreign producer
or any employee of the foreign producer related to the provisions of
this section.
    (5) Applying to be an approved foreign producer under this section,
or producing or exporting renewable fuel under such approval, and all
other actions to comply with the requirements 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 United 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
actions performed within the scope of EPA employment 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 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