provisions for small refiners related to the RIN system, such as
flexibilities in the RIN rollover cap percentage and allowing all small
refiners to use RINs interchangeably. In the RFS1 program, EPA allows
for 20% of a previous year's RINs to be ``rolled over'' and used for
compliance in the following year. We noted during the Panel process
that a provision to allow for flexibilities in the rollover cap could
include a higher RIN rollover cap for small refiners for some period of
time or for at least some of the four standards. Further, we noted our
belief that since the concept of a rollover cap was not mandated by
section 211(o), EPA believes that there may be an opportunity to
provide appropriate flexibility in this area to small refiners under
the RFS2 program but only if it is determined in the DOE small refinery
study that there is a disproportionate effect warranting relief. The
Panel recommended that EPA request comment on increasing the RIN
rollover cap percentage for small refiners, and further that EPA should
request comment on an appropriate level of that percentage. The Panel
also recommended that EPA invite comment on allowing RINs to be used
interchangeably for small refiners, but not propose this concept
because under this approach small refiners would arguably be subject to
a different applicable percentage than other obligated parties.
    We proposed a change to the RIN rollover cap, and took comment on
the concept of allowing RINs to be used interchangeably for small
refiners only. As noted above in section III of this preamble, we are
not finalizing RIN-related provisions in today's action. As highlighted
in the NPRM, we continue to believe that the concept of interchangeable
RINs for small refiners only fails to require the four different
standards mandated by Congress (e.g., conventional biofuel could not be
used instead of cellulosic biofuel or biomass-based diesel). Further,
given the findings from the DOE study, if small refineries and small
refiners do not face disproportionate economic hardship, then we do not
believe that we have the basis for granting such additional relief
beyond what Congress already provided. Thus, small refiners will be
held to the same RIN rollover cap as other obligated parties.
iv. Program Review
    With regard to the suggested program review, EPA raised the concern
that this could lead to some redundancy since EPA is required to
publish a notice of the applicable RFS standards in the Federal
Register annually, and that this annual process will inevitably include
an evaluation of the projected availability of renewable fuels.
Nevertheless, the SBA and OMB Panel members stated that they believe
that a program review could be helpful to small entities in providing
them some insight to the RFS program's progress and alleviate some
uncertainty regarding the RIN system. As EPA will be publishing a
Federal Register notice annually, the Panel recommended that

EPA include an update of RIN system progress (e.g., RIN trading, RIN
availability, etc.) in this notice and that the results of this
evaluation be considered in any request for case-by-case hardship
relief.
    We did propose that in the annual notice of the RFS standards that
EPA must publish in the Federal Register, we would also include
information to help inform industry about the RIN system. We also
proposed that information from the annual Production Outlook Reports
that producers and importers must submit to EPA, as well as information
required in EMTS reports, could be used in the annual Federal Register
notice to update RIN system progress. However, during the development
of the final rule, it became evident that there could be instances
where we would want to report out RIN system information on a more
frequent basis than just once a year. Thus we are finalizing that we
will report out elements of RIN system progress; but such information
will be reported via other means (e.g., the RFS Web site (www.epa.gov/
otaq/renewablefuels/index.htm), EMTS homepage, etc.). Additionally, we
will also publish annual summaries of the Production Outlook Reports.
v. Extensions of the Temporary Exemption Based on a Study of Small
Refinery Impacts
    The Panel recommended that EPA propose in the RFS2 program the
provision at 40 CFR 80.1141(e) extending the RFS1 temporary exemption
for at least two years for any small refinery that DOE determines would
be subject to disproportionate economic hardship if required to comply
with the RFS2 requirements.
    Section 211(o)(9)(A)(ii) required that by December 31, 2008, DOE
was to perform a study of the economic impacts of the RFS requirements
on small refineries to assess and determine whether the RFS
requirements would impose a disproportionate economic hardship on small
refineries, and submit this study to EPA. Section 211(o)(9) also
provided that small refineries found to be in a disproportionate
economic hardship situation would receive an extension of the temporary
exemption for at least two years.
    The Panel also recommended that EPA work with DOE in the
development of the small refinery study, specifically to communicate
the comments that SERs raised during the Panel process.
    We did not propose and are not finalizing this hardship provision
given the outcome of the DOE small refinery study. In the small
refinery study, ``EPACT 2005 Section 1501 Small Refineries Exemption
Study'', DOE's finding was that there is no reason to believe that any
small refinery would be disproportionately harmed by inclusion in the
proposed RFS2 program. This finding was based on the fact that there
appeared to be no shortage of RINs available under RFS1, and EISA has
provided flexibility through waiver authority (per section 211(o)(7)).
Further, in the case of the cellulosic biofuel standard, cellulosic
biofuel allowances can be provided from EPA at prices established in
EISA (see regulation section 80.1455). DOE thus determined that no
small refinery would be subject to disproportionate economic hardship
under the proposed RFS2 program, and that the small refinery exemption
should not be extended beyond December 31, 2010. DOE noted in the study
that, if circumstances were to change and/or the RIN market were to
become non-competitive or illiquid, individual small refineries have
the ability to petition EPA for an extension of their small refinery
exemption (as stated in regulation section 80.1441).
    As discussed in section III.E of this preamble, since the only
small refinery study available for us to use as a basis for whether or
not to grant small refineries an automatic two-year extension of the
exemption is the study that was performed in 2008, we had to use this
study to develop this final rule. EPAct directs EPA to consider the DOE
small refinery study in assessing the impacts to small refineries, and
we interpret this to mean that any extension past December 31, 2010 has
to be tied to the DOE Study. Further, since that study found that there
was no disproportionate economic impact on small refineries, we cannot
grant an automatic additional extension for small refineries or small
refiners (except on a case-by-case hardship basis). However, this does
not preclude small refiners from applying for case-by-case extensions
of the small refiner temporary exemption.
    Note that if the revised DOE study (see Section III.E.3 of this
preamble) finds that there is a disproportionate economic impact, we
will revisit the extension of the temporary exemption at that point.
vi. Extensions of the Temporary Exemption Based on Disproportionate
Economic Hardship
    While SERs did not specifically comment on the concept of hardship
provisions for the upcoming proposal, the Panel noted that under CAA
section 211(o)(9)(B) small refineries may petition EPA for case-by-case
extensions of the small refinery temporary exemption on the basis of
disproportionate economic hardship. Refiners may petition EPA for this
case-by-case hardship relief at any time.
    The Panel recommended that EPA propose in the RFS2 program a case-
by-case hardship provision for small refineries similar to that
provided at 40 CFR 80.1141(e)(1). The Panel also recommended that EPA
propose a case-by-case hardship provision for small refiners that do
not operate small refineries that is comparable to that provided for
small refineries under section 211(o)(9)(B), using its discretion under
CAA section 211(o)(3)(B). This would apply if EPA does not adopt an
automatic extension for small refiners, and would allow those small
refiners that do not operate small refineries to apply for the same
kind of extension as a small refinery. The Panel recommended that EPA
take into consideration the results of the annual update of RIN system
progress and the DOE small refinery study in assessing such hardship
applications.
    We believe that these avenues of relief can and should be fully
explored by small refiners who are covered by the small refinery
provision. In addition, we believe that it is appropriate to allow
petitions to EPA for an extension of the temporary exemption based on
disproportionate economic hardship for those small refiners who are not
covered by the small refinery provision (again, per our discretion
under section 211(o)(3)(B)); this would ensure that all small refiners
have the same relief available to them as small refineries do. Thus, we
are finalizing a hardship provision for small refineries in the RFS2
program, that any small refinery may apply for a case-by-case hardship
at any time on the basis of disproportionate economic hardship per CAA
section 211(o)(9)(B). We are also finalizing a case-by-case hardship
provision for those small refiners that do not operate small refineries
(section 80.1442(h)) using our discretion under CAA section
211(o)(3)(B). This provision will allow those small refiners that do
not operate small refineries to apply for the same kind of extension as
a small refinery. In evaluating applications for this hardship
provision EPA will take into consideration information gathered from
annual reports and RIN system progress updates, as recommended by the
SBAR Panel.
7. Conclusions
    Pursuant to section 603 of the RFA, EPA prepared an initial
regulatory flexibility analysis (IRFA) for the

proposed rule and convened a Small Business Advocacy Review Panel to
obtain advice and recommendations of representatives of the regulated
small entities (see 74 FR 24904, May 26, 2009). A detailed discussion
of the Panel's advice and recommendations is found in the Panel Report,
located in the rulemaking docket. A summary of the Panel's
recommendations is presented at 74 FR 25106 (May 26, 2009).
    As required by section 604 of the RFA, we also prepared a final
regulatory flexibility analysis (FRFA) for today's final rule. The FRFA
addresses the issues raised by public comments on the IRFA, which was
part of the proposal of this rule. The FRFA is available for review in
the docket and is summarized above.
    Many aspects of the RFS2 rule, such as the required amounts of
annual renewable fuel volumes, are specified in EPAct and EISA. As
discussed above, small refiners and small refineries receive an
exemption from the RFS standards until January 1, 2011 and are not
required to make expensive capital improvements like those required
under other EPA fuels programs. Further, the DOE small refinery study
did not find that there was a disproportionate economic impact on small
refineries as a whole as a result of this rule (and the majority of the
refiners that meet the definition of a small refiner, also own
refineries that meet the Congressional small refinery definition).
    A cost-to-sales ratio test, a ratio of the estimated annualized
compliance costs to the value of sales per company, was performed for
gasoline and/or diesel small refiners. From this cost-to-sales test, it
was estimated that all small entities have compliance costs that are
less than one percent of their sales (a complete discussion of the
costs to refiners as a result of the increased volumes of renewable
fuel required by EISA is located in Section VII of this preamble).
    As required by section 212 of SBREFA, EPA also is preparing a Small
Entity Compliance Guide to help small entities comply with this rule.
This guide will be available on the RFS Web site (www.epa.gov/otaq/
renewablefuels/index.htm), and will be available 60 days after the rule
is finalized.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2
U.S.C. 1531-1538, requires Federal agencies, unless otherwise
prohibited by law, to assess the effects of their regulatory actions on
State, local, and tribal governments and the private sector. Under
section 202 of the UMRA, EPA generally must prepare a written
statement, including a cost-benefit analysis, for proposed and final
rules with ``Federal mandates'' that may result in expenditures to
State, local, and tribal governments, in the aggregate, or to the
private sector, of $100 million or more in any one year.
    This rule is not subject to the requirements of section 203 of UMRA
because it contains no regulatory requirements that might significantly
or uniquely affect small governments. EPA has determined that this rule
contains a Federal mandate that may result in expenditures of $100
million or more for the private sector in any one year, but the rule
imposes no enforceable duty on any State, local or tribal governments.
Nonetheless, EPA believes that today's action represents the least
costly, most cost-effective approach to achieve the statutory
requirements of the rule. The costs and benefits associated with the
increased use of renewable fuels are discussed above and in the
Regulatory Impact Analysis, as required by the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.''
    This final rule does not have federalism implications. It will not
have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in Executive Order 13132. Thus, Executive Order 13132 does
not apply to this rule.
    In the spirit of Executive Order 13132, and consistent with EPA
policy to promote communications between EPA and State and local
governments, EPA specifically solicited comment on the proposed rule
from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implications, as specified in
Executive Order 13175 (65 FR 67249, November 9, 2000). This rule will
be implemented at the Federal level and impose compliance costs only on
transportation fuel refiners, blenders, marketers, distributors,
importers, and exporters. Tribal governments would be affected only to
the extent they purchase and use regulated fuels. Thus, Executive Order
13175 does not apply to this action. EPA specifically solicited comment
on the proposed rule from tribal officials.

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as applying
only to those regulatory actions that concern health or safety risks,
such that the analysis required under section 5-501 of the EO has the
potential to influence the regulation. This action is not subject to EO
13045 because it does not establish an environmental standard intended
to mitigate health or safety risks and because it implements specific
standards established by Congress in statutes.

H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211 (66 FR 28355 (May
22, 2001)), because it is not likely to have a significant adverse
effect on the supply, distribution, or use of energy. In fact, this
rule has a positive effect on energy supply and use. By promoting the
diversification of transportation fuels, the increased use of renewable
fuels enhances energy supply. Therefore, we have concluded that this
rule is not likely to have any adverse energy effects. Our energy
effects analysis is discussed in Section VIII.B.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use

available and applicable voluntary consensus standards.
    This rulemaking changes the Renewable Fuel Standard (RFS) program
at Title 40 of the Code of Federal Regulations, Subpart K which already
contains voluntary consensus standard ASTM D6751-06a ``Standard
Specification for Biodiesel Fuel Blend Stock (B100) for Middle
Distillate Fuels''. This rulemaking incorporates the most recent
version of that standard (ASTM D-6751-08) and adds several more
voluntary consensus standards: ASTM D-1250-08, ``Standard Guide for Use
of the Petroleum Measurement Tables''; ASTM D-4442, ``Standard Test
Methods for Direct Moisture Content Measurement of Wood and Wood-Base
Materials''; ASTM D-4444, ``Standard Test Method for Laboratory
Standardization and Calibration of Hand-Held Moisture Meters''; ASTM D-
6866-08 ``Standard Test Methods for Determining the Biobased Content of
Solid, Liquid, and Gaseous Samples Using Radiocarbon Analysis''; ASTM
E-711, ``Standard Test Method for Gross Calorific Value of Refuse-
Derived Fuel by the Bomb Calorimeter''; and ASTM E-870, ``Standard Test
Methods for Analysis of Wood Fuels''. Information about these standards
may be obtained through the ASTM Web site (http://www.astm.org) or by
calling ASTM at<PHONE_NUMBER>.
    This rulemaking does not change these voluntary consensus
standards, and does not involve any other technical standards.
Therefore, EPA is not considering the use of any voluntary consensus
standards other than those described above.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    EPA lacks the discretionary authority to address environmental
justice in this rulemaking since the Agency is implementing specific
standards established by Congress in statutes. Although EPA lacks
authority to modify today's regulatory action on the basis of
environmental justice considerations, EPA nevertheless determined that
this rule does not have a disproportionately high and adverse human
health or environmental impact on minority or low-income populations.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A Major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is a ``major rule'' as defined by 5 U.S.C.
804(2). This rule will be effective July 1, 2010.

XII. Statutory Provisions and Legal Authority

    Statutory authority for the rule finalized today can be found in
section 211 of the Clean Air Act, 42 U.S.C. 7545. Additional support
for the procedural and compliance related aspects of today's rule,
including the recordkeeping requirements, come from Sections 114, 208,
and 301(a) of the Clean Air Act, 42 U.S.C. 7414, 7542, and 7601(a).

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedure,
Agriculture, Air pollution control, Confidential business information,
Diesel Fuel, Energy, Forest and Forest Products, Fuel additives,
Gasoline, Imports, Incorporation by reference, Labeling, Motor vehicle
pollution, Penalties, Petroleum, Reporting and recordkeeping
requirements.

    Dated: February 3, 2010.
Lisa P. Jackson,
Administrator.

0
For the reasons set forth in the preamble, 40 CFR part 80 is amended as
follows:

PART 80--REGULATION OF FUELS AND FUEL ADDITIVES

0
1. The authority citation for part 80 continues to read as follows:

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

0
2. A new Subpart M is added to part 80 to read as follows:
Subpart M--Renewable Fuel Standard
Sec.
80.1400 Applicability.
80.1401 Definitions.
80.1402 [Reserved]
80.1403 Which fuels are not subject to the 20% GHG thresholds?
80.1404 [Reserved]
80.1405 What are the Renewable Fuel Standards?
80.1406 Who is an obligated party under the RFS program?
80.1407 How are the Renewable Volume Obligations calculated?
80.1408-80.1414 [Reserved]
80.1415 How are equivalence values assigned to renewable fuel?
80.1416 Petition process for evaluation of new renewable fuels and
pathways.
80.1417-80.1424 [Reserved]
80.1425 Renewable Identification Numbers (RINs).
80.1426 How are RINs generated and assigned to batches of renewable
fuel by renewable fuel producers or importers?
80.1427 How are RINs used to demonstrate compliance?
80.1428 General requirements for RIN distribution.
80.1429 Requirements for separating RINs from volumes of renewable
fuel.
80.1430 Requirements for exporters of renewable fuels.
80.1431 Treatment of invalid RINs.
80.1432 Reported spillage or disposal of renewable fuel.
80.1433-80.1439 [Reserved]
80.1440 What are the provisions for blenders who handle and blend
less than 125,000 gallons of renewable fuel per year?
80.1441 Small refinery exemption.
80.1442 What are the provisions for small refiners under the RFS
program?
80.1443 What are the opt-in provisions for noncontiguous states and
territories?
80.1444-80.1448 [Reserved]
80.1449 What are the Production Outlook Report requirements?
80.1450 What are the registration requirements under the RFS
program?
80.1451 What are the reporting requirements under the RFS program?
80.1452 What are the requirements related to the EPA Moderated
Transaction System (EMTS)?
80.1453 What are the product transfer document (PTD) requirements
for the RFS program?
80.1454 What are the recordkeeping requirements under the RFS
program?
80.1455 What are the small volume provisions for renewable fuel
production facilities and importers?
80.1456 What are the provisions for cellulosic biofuel waiver
credits?
80.1457-80.1459 [Reserved]
80.1460 What acts are prohibited under the RFS program?
80.1461 Who is liable for violations under the RFS program?
80.1462 [Reserved]
80.1463 What penalties apply under the RFS program?

80.1464 What are the attest engagement requirements under the RFS
program?
80.1465 What are the additional requirements under this subpart for
foreign small refiners, foreign small refineries, and importers of
RFS-FRFUEL?
80.1466 What are the additional requirements under this subpart for
RIN-generating foreign producers and importers of renewable fuels
for which RINs have been generated by the foreign producer?
80.1467 What are the additional requirements under this subpart for
a foreign RIN owner?
80.1468 Incorporation by reference.

Subpart M--Renewable Fuel Standard

Sec.  80.1400  Applicability.

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

Sec.  80.1401  Definitions.

    The definitions of Sec.  80.2 and of this section apply for the
purposes of this Subpart M. The definitions of this section do not
apply to other subparts unless otherwise noted. Note that many terms
defined here are common terms that have specific meanings under this
subpart M. The definitions follow:
    Advanced biofuel means renewable fuel, other than ethanol derived
from cornstarch, has lifecycle greenhouse gas emissions that are at
least 50 percent less than baseline lifecycle greenhouse gas emissions.
    Annual cover crop means an annual crop, planted as a rotation
between primary planted crops, or between trees and vines in orchards
and vineyards, typically to protect soil from erosion and to improve
the soil between periods of regular crops.
    Areas at risk of wildfire are those areas in the ``wildland-urban
interface'', where humans and their development meet or intermix with
wildland fuel. Note that, for guidance, the SILVIS laboratory at the
University of Wisconsin maintains a Web site that provides a detailed
map of areas meeting this criteria at: http://
www.silvis.forest.wisc.edu/projects/US_WUI_2000.asp. The SILVIS
laboratory is located at 1630 Linden Drive, Madison, Wisconsin 53706
and can be contacted at<PHONE_NUMBER>.
    Baseline lifecycle greenhouse gas emissions means the average
lifecycle greenhouse gas emissions for gasoline or diesel (whichever is
being replaced by the renewable fuel) sold or distributed as
transportation fuel in 2005.
    Biodiesel means a mono-alkyl ester that meets ASTM D 6751
(incorporated by reference, see Sec.  80.1468).
    Biogas means a mixture of hydrocarbons that is a gas at 60 degrees
Fahrenheit and 1 atmosphere of pressure that is produced through the
conversion of organic matter. Biogas that is used to generate RINs must
be renewable fuel. Biogas includes propane, and landfill gas, manure
digester gas, and sewage waste treatment gas.
    Biomass-based diesel means a renewable fuel that has lifecycle
greenhouse gas emissions that are at least 50 percent less than
baseline lifecycle greenhouse gas emissions and meets all of the
requirements of paragraph (1) of this definition:
    (1)(i) Is a transportation fuel, transportation fuel additive,
heating oil, or jet fuel.
    (ii) Meets the definition of either biodiesel or non-ester
renewable diesel.
    (iii) Is registered as a motor vehicle fuel or fuel additive under
40 CFR part 79, if the fuel or fuel additive is intended for use in a
motor vehicle.
    (2) Renewable fuel that is co-processed with petroleum is not
biomass-based diesel.
    Cellulosic biofuel means renewable fuel derived from any cellulose,
hemi-cellulose, or lignin that has lifecycle greenhouse gas emissions
that are at least 60 percent less than the baseline lifecycle
greenhouse gas emissions.
    Cellulosic diesel is any renewable fuel which meets both the
definitions of cellulosic biofuel and biomass-based diesel, as defined
in this section 80.1401. Cellulosic diesel includes heating oil and jet
fuel made from cellulosic feedstocks.
    Combined heat and power (CHP), also known as cogeneration, refers
to industrial processes in which byproduct heat that would otherwise be
released into the environment is used for process heating and/or
electricity production.
    Co-processed means that renewable biomass was simultaneously
processed with fossil fuels or other non-renewable feedstock in the
same unit or units to produce a fuel that is partially derived from
renewable biomass.
    Corn oil extraction means the recovery of corn oil from the thin
stillage and/or the DGS produced by a dry mill corn ethanol plant, most
often by mechanical separation.
    Crop residue is the biomass left over from the harvesting or
processing of planted crops from existing agricultural land and any
biomass removed from existing agricultural land that facilitates crop
management (including biomass removed from such lands in relation to
invasive species control or fire management), whether or not the
biomass includes any portion of a crop or crop plant.
    Cropland is land used for production of crops for harvest and
includes cultivated cropland, such as for row crops or close-grown
crops, and non-cultivated cropland, such as for horticultural or
aquatic crops.
    Diesel, for the purposes of this subpart, refers to any and all of
the products specified at Sec.  80.1407(e).
    Ecologically sensitive forestland means forestland that meets
either of the following criteria:
    (1) An ecological community with a global or state ranking of
critically imperiled, imperiled or rare pursuant to a State Natural
Heritage Program. For examples of such ecological communities, see
``Listing of Forest Ecological Communities Pursuant to 40 CFR 80.1401;
S1-S3 communities,'' which is number EPA-HQ-OAR-2005-0161-1034.1 in the
public docket, and ``Listing of Forest Ecological Communities Pursuant
to 40 CFR 80.1401; G1-G2 communities,'' which is number EPA-HQ-OAR-
2005-0161-2906.1 in the public docket. This material is available for
inspection at the EPA Docket Center, EPA/DC, EPA West, Room 3334, 1301
Constitution Ave., NW., Washington DC. The telephone number for the Air
Docket is<PHONE_NUMBER>.
    (2) Old growth or late successional, characterized by trees at
least 200 years in age.
    EPA Moderated Transaction System, or EMTS, means a closed, EPA
moderated system that provides a mechanism for screening and tracking
Renewable Identification Numbers (RINs) as per Sec.  80.1452.
    Existing agricultural land is cropland, pastureland, and land
enrolled in the Conservation Reserve Program (administered by the U.S.
Department of Agriculture's Farm Service Agency) that was cleared or
cultivated prior to December 19, 2007, and that, on December 19, 2007,
was:
    (1) Nonforested; and
    (2) Actively managed as agricultural land or fallow, as evidenced
by records which must be traceable to the land in question, which must
include one of the following:
    (i) Records of sales of planted crops, crop residue, or livestock,
or records of

purchases for land treatments such as fertilizer, weed control, or
seeding.
    (ii) A written management plan for agricultural purposes.
    (iii) Documented participation in an agricultural management
program administered by a Federal, state, or local government agency.
    (iv) Documented management in accordance with a certification
program for agricultural products.
    Exporter of renewable fuel means:
    (1) A person that transfers any renewable fuel to a location
outside the contiguous 48 states and Hawaii; and
    (2) A person that transfers any renewable fuel from a location in
the contiguous 48 states or Hawaii to Alaska or a United States
territory, unless that state or territory has received an approval from
the Administrator to opt-in to the renewable fuel program pursuant to
Sec.  80.1443.
    Facility means all of the activities and equipment associated with
the production of renewable fuel starting from the point of delivery of
feedstock material to the point of final storage of the end product,
which are located on one property, and are under the control of the
same person (or persons under common control).
    Fallow means cropland, pastureland, or land enrolled in the
Conservation Reserve Program (administered by the U.S. Department of
Agriculture's Farm Service Agency) that is intentionally left idle to
regenerate for future agricultural purposes with no seeding or
planting, harvesting, mowing, or treatment during the fallow period.
    Forestland is generally undeveloped land covering a minimum area of
1 acre upon which the primary vegetative species are trees, including
land that formerly had such tree cover and that will be regenerated and
tree plantations. Tree covered areas in intensive agricultural crop
production settings, such as fruit orchards or tree-covered areas in
urban settings such as city parks, are not considered forestland.
    Fractionation of feedstocks means a process whereby seeds are
divided in various components and oils are removed prior to
fermentation for the production of ethanol.
    Fuel for use in an ocean-going vessel means, for this subpart only:
    (1) Any marine residual fuel (whether burned in ocean waters, Great
Lakes, or other internal waters);
    (2) Emission Control Area (ECA) marine fuel, pursuant to Sec. Sec.
80.2(ttt) and 80.510(k) (whether burned in ocean waters, Great Lakes,
or other internal waters); and
    (3) Any other fuel intended for use only in ocean-going vessels.
    Gasoline, for the purposes of this subpart, refers to any and all
of the products specified at Sec.  80.1407(c).
    Heating oil has the meaning given in Sec.  80.2(ccc).
    Importers. For the purposes of this subpart, an importer of
transportation fuel or renewable fuel is any U.S. domestic person who:
    (1) Brings transportation fuel or renewable fuel into the 48
contiguous states of the United States or Hawaii, from a foreign
country or from an area that has not opted in to the program
requirements of this subpart pursuant to Sec.  80.1443; or
    (2) Brings transportation fuel or renewable fuel into an area that
has opted in to the program requirements of this subpart pursuant to
Sec.  80.1443 from a foreign country or from an area that has not opted
in to the program requirements of this subpart.
    Motor vehicle has the meaning given in Section 216(2) of the Clean
Air Act (42 U.S.C. 7550(2)).
    Naphtha means a renewable fuel or fuel blending component falling
within the boiling range of gasoline.
    Neat renewable fuel is a renewable fuel to which 1% or less of
gasoline (as defined in this section) or diesel fuel has been added.
    Non-ester renewable diesel means renewable fuel which is all of the
following:
    (1) Registered as a motor vehicle fuel or fuel additive under 40
CFR Part 79, if the fuel or fuel additive is intended for use in a
motor vehicle.
    (2) Not a mono-alkyl ester.
    Nonforested land means land that is not forestland.
    Nonroad vehicle has the meaning given in Section 216(11) of the
Clean Air Act (42 U.S.C. 7550(11)).
    Pastureland is land managed for the production of indigenous or
introduced forage plants for livestock grazing or hay production, and
to prevent succession to other plant types.
    Planted crops are all annual or perennial agricultural crops from
existing agricultural land that may be used as feedstocks for renewable
fuel, such as grains, oilseeds, sugarcane, switchgrass, prairie grass,
duckweed, and other species (but not including algae species or planted
trees), providing that they were intentionally applied by humans to the
ground, a growth medium, a pond or tank, either by direct application
as seed or plant, or through intentional natural seeding or vegetative
propagation by mature plants introduced or left undisturbed for that
purpose.
    Planted trees are trees harvested from a tree plantation.
    Pre-commercial thinnings are trees, including unhealthy or diseased
trees, primarily removed to reduce stocking to concentrate growth on
more desirable, healthy trees, or other vegetative material that is
removed to promote tree growth.
    Renewable biomass means each of the following (including any
incidental, de minimis contaminants that are impractical to remove and
are related to customary feedstock production and transport):
    (1) Planted crops and crop residue harvested from existing
agricultural land cleared or cultivated prior to December 19, 2007 and
that was nonforested and either actively managed or fallow on December
19, 2007.
    (2) Planted trees and tree residue from a tree plantation located
on non-federal land (including land belonging to an Indian tribe or an
Indian individual that is held in trust by the U.S. or subject to a
restriction against alienation imposed by the U.S.) that was cleared at
any time prior to December 19, 2007 and actively managed on December
19, 2007.
    (3) Animal waste material and animal byproducts.
    (4) Slash and pre-commercial thinnings from non-federal forestland
(including forestland belonging to an Indian tribe or an Indian
individual, that are held in trust by the United States or subject to a
restriction against alienation imposed by the United States) that is
not ecologically sensitive forestland.
    (5) Biomass (organic matter that is available on a renewable or
recurring basis) obtained from the immediate vicinity of buildings and
other areas regularly occupied by people, or of public infrastructure,
in an area at risk of wildfire.
    (6) Algae.
    (7) Separated yard waste or food waste, including recycled cooking
and trap grease, and materials described in Sec.  80.1426(f)(5)(i).
    Renewable fuel means a fuel which meets all of the requirements of
paragraph (1) of this definition:
    (1)(i) Fuel that is produced from renewable biomass.
    (ii) Fuel that is used to replace or reduce the quantity of fossil
fuel present in a transportation fuel, heating oil, or jet fuel.
    (iii) Has lifecycle greenhouse gas emissions that are at least 20
percent less than baseline lifecycle greenhouse gas emissions, unless
the fuel is exempt from this requirement pursuant to Sec.  80.1403.
    (2) Ethanol covered by this definition shall be denatured as
required and defined in 27 CFR parts 19 through 21.

Any volume of denaturant added to the undenatured ethanol by a producer
or importer in excess of 2 volume percent shall not be included in the
volume of ethanol for purposes of determining compliance with the
requirements under this subpart.
    Renewable Identification Number (RIN), is a unique number generated
to represent a volume of renewable fuel pursuant to Sec. Sec.  80.1425
and 80.1426.
    (1) Gallon-RIN is a RIN that represents an individual gallon of
renewable fuel; and
    (2) Batch-RIN is a RIN that represents multiple gallon-RINs.
    Slash is the residue, including treetops, branches, and bark, left
on the ground after logging or accumulating as a result of a storm,
fire, delimbing, or other similar disturbance.
    Small refinery, for this subpart only, means a refinery for which
the average aggregate daily crude oil throughput for calendar year 2006
(as determined by dividing the aggregate throughput for the calendar
year by the number of days in the calendar year) does not exceed 75,000
barrels.
    Transportation fuel means fuel for use in motor vehicles, motor
vehicle engines, nonroad vehicles, or nonroad engines (except for
ocean-going vessels).
    Tree plantation is a stand of no less than 1 acre composed
primarily of trees established by hand- or machine-planting of a seed
or sapling, or by coppice growth from the stump or root of a tree that
was hand- or machine-planted. Tree plantations must have been cleared
prior to December 19, 2007 and must have been actively managed on
December 19, 2007, as evidenced by records which must be traceable to
the land in question, which must include:
    (1) Sales records for planted trees or tree residue together with
other written documentation connecting the land in question to these
purchases;
    (2) Purchasing records for seeds, seedlings, or other nursery stock
together with other written documentation connecting the land in
question to these purchases;
    (3) A written management plan for silvicultural purposes;
    (4) Documentation of participation in a silvicultural program
sponsored by a Federal, state or local government agency;
    (5) Documentation of land management in accordance with an
agricultural or silvicultural product certification program;
    (6) An agreement for land management consultation with a
professional forester that identifies the land in question; or
    (7) Evidence of the existence and ongoing maintenance of a road
system or other physical infrastructure designed and maintained for
logging use, together with one of the above-mentioned documents.
    Tree residue is slash and any woody residue generated during the
processing of planted trees from tree plantations for use in lumber,
paper, furniture or other applications, provided that such woody
residue is not mixed with similar residue from trees that do not
originate in tree plantations.
    Yard waste is leaves, sticks, pine needles, grass and hedge
clippings, and similar waste from residential, commercial, or
industrial areas (but not from forestlands or tree plantations).

Sec.  80.1402  [Reserved]

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

    (a) For purposes of this section, the following definitions apply:
    (1) Baseline volume means the permitted capacity or, if permitted
capacity cannot be determined, the actual peak capacity of a specific
renewable fuel production facility on a calendar year basis.
    (2) Permitted capacity means 105% of the maximum permissible volume
output of renewable fuel that is allowed under operating conditions
specified in the most restrictive of all applicable preconstruction,
construction and operating permits issued by regulatory authorities
(including local, regional, state or a foreign equivalent of a state,
and federal permits, or permits issued by foreign governmental
agencies) that govern the construction and/or operation of the
renewable fuel facility, reported as:
    (i) Annual volume output on a calendar year basis; or
    (ii) If the permit specifies maximum rated volume output on an
hourly basis, then multiplying the hourly output by 8,322 hours per
year to obtain the annual output.
    (3) Actual peak capacity means 105% of the maximum annual volume of
renewable fuels produced from a specific renewable fuel production
facility on a calendar year basis.
    (i) For facilities that commenced construction prior to December
19, 2007 the actual peak capacity is based on the last five calendar
years prior to 2008, unless no such production exists, in which case
actual peak capacity is determined pursuant to paragraph (a)(3)(ii) of
this section.
    (ii) For facilities that commenced construction after December 19,
2007, and are fired with natural gas, biomass, or a combination
thereof, the actual peak capacity is based on any calendar year after
startup during the first three years of operation.
    (4) Commence construction, as applied to facilities that produce
renewable fuel, means that:
    (i) The owner or operator has all necessary preconstruction
approvals or permits (as defined at 40 CFR 52.21(b)(10)), and has
satisfied either of the following:
    (A) Begun, or caused to begin, a continuous program of actual
construction on-site (as defined in 40 CFR 52.21(b)(11)).
    (B) Entered into binding agreements or contractual obligations,
which cannot be cancelled or modified without substantial loss to the
owner or operator, to undertake a program of actual construction of the
facility.
    (ii) For multi-phased projects, the commencement of construction of
one phase does not constitute commencement of construction of any later
phase, unless each phase is mutually dependent for physical and
chemical reasons only.
    (b) The lifecycle greenhouse gas emissions from renewable fuels
must be at least 20 percent less than baseline lifecycle greenhouse gas
emissions, with the exception of the baseline volumes of renewable fuel
produced from facilities described in paragraphs (c) and (d) of this
section.
    (c) The baseline volume of renewable fuel that is produced from
facilities and any expansions, all of which commenced construction on
or before December 19, 2007, shall not be subject to the requirement
that lifecycle greenhouse gas emissions be at least 20 percent less
than baseline lifecycle greenhouse gas emissions if the owner or
operator:
    (1) Did not discontinue construction for a period of 18 months
after commencement of construction; and
    (2) Completed construction within 36 months of commencement of
construction.
    (d) The baseline volume of ethanol that is produced from facilities
and any expansions all of which commenced construction after December
19, 2007 and on or before December 31, 2009, shall not be subject to
the requirement that lifecycle greenhouse gas emissions be at least 20
percent less than baseline lifecycle greenhouse gas emissions if such
facilities are fired with natural gas, biomass, or a combination
thereof at all times the facility operated between December 19, 2007
and December 31, 2009 and if:
    (1) The owner or operator did not discontinue construction for a
period of

18 months after commencement of construction;
    (2) The owner or operator completed construction within 36 months
of commencement of construction; and
    (3) The baseline volume continues to be produced through processes
fired with natural gas, biomass, or any combination thereof.
    (e) The annual volume of renewable fuel during a calendar year from
facilities described in paragraphs (c) and (d) of this section that
exceeds the baseline volume shall be subject to the requirement that
lifecycle greenhouse gas emissions be at least 20 percent less than
baseline lifecycle greenhouse gas emissions.
    (f) If there are any changes in the mix of renewable fuels produced
by those facilities described in paragraph (d) of this section, only
the ethanol volume (to the extent it is less than or equal to baseline
volume) will not be subject to the requirement that lifecycle
greenhouse gas emissions be at least 20 percent less than baseline
lifecycle greenhouse gas emissions. Any party that changes the fuel mix
must update their registration as specified in Sec.  80.1450(d).

Sec.  80.1404  [Reserved]

Sec.  80.1405  What are the Renewable Fuel Standards?

    (a) Renewable Fuel Standards for 2010.
    (1) The value of the cellulosic biofuel standard for 2010 shall be
0.004 percent.
    (2) The value of the biomass-based diesel standard for 2010 shall
be 1.10 percent.
    (3) The value of the advanced biofuel standard for 2010 shall be
0.61 percent.
    (4) The value of the renewable fuel standard for 2010 shall be 8.25
percent.
    (b) Beginning with the 2011 compliance period, EPA will calculate
the value of the annual standards and publish these values in the
Federal Register by November 30 of the year preceding the compliance
period.
    (c) EPA will calculate the annual renewable fuel percentage
standards using the following equations:

[GRAPHIC] [TIFF OMITTED] TR26MR10.429

Where:

StdCB,i = The cellulosic biofuel standard for year i, in
percent.
StdBBD,i = The biomass-based diesel standard for year i,
in percent.
StdAB,i = The advanced biofuel standard for year i, in
percent.
StdRF,i = The renewable fuel standard for year i, in
percent.
RFVCB,i = Annual volume of cellulosic biofuel required by
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVBBD,i = Annual volume of biomass-based diesel required
by section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVAB,i = Annual volume of advanced biofuel required by
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
RFVRF,i = Annual volume of renewable fuel required by
section 211(o)(2)(B) of the Clean Air Act for year i, in gallons.
Gi = Amount of gasoline projected to be used in the 48
contiguous states and Hawaii, in year i, in gallons.
Di = Amount of diesel projected to be used in the 48
contiguous states and Hawaii, in year i, in gallons.
RGi = Amount of renewable fuel blended into gasoline that
is projected to be consumed in the 48 contiguous states and Hawaii,
in year i, in gallons.
RDi = Amount of renewable fuel blended into diesel that
is projected to be consumed in the 48 contiguous states and Hawaii,
in year i, in gallons.
GSi = Amount of gasoline projected to be used in Alaska
or a U.S. territory, in year i, if the state or territory has opted-
in or opts-in, in gallons.
RGSi = Amount of renewable fuel blended into gasoline
that is projected to be consumed in Alaska or a U.S. territory, in
year i, if the state or territory opts-in, in gallons.
DSi = Amount of diesel projected to be used in Alaska or
a U.S. territory, in year i, if the state or territory has opted-in
or opts-in, in gallons.
RDSi = Amount of renewable fuel blended into diesel that
is projected to be consumed in Alaska or a U.S. territory, in year
i, if the state or territory opts-in, in gallons.
GEi = The amount of gasoline projected to be produced by
exempt small refineries and small refiners, in year i, in gallons in
any year they are exempt per Sec. Sec.  80.1441 and 80.1442,
respectively. Assumed to equal 0.119*(Gi-RGi).
DEi = The amount of diesel fuel projected to be produced
by exempt small refineries and small refiners in year i, in gallons,
in any year they are exempt per Sec. Sec.  80.1441 and 80.1442,
respectively. Assumed to equal 0.152*(Di-RDi).

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

Sec.  80.1406  Who is an obligated party under the RFS program?

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

    (b) For each compliance period starting with 2010, an obligated
party is required to demonstrate, pursuant to Sec.  80.1427, that it
has satisfied the Renewable Volume Obligations for that compliance
period, as specified in Sec.  80.1407(a).
    (c) Aggregation of facilities.
    (1) Except as provided in paragraph (c)(2) of this section, an
obligated party may comply with the requirements of paragraph (b) of
this section for all of its refineries in the aggregate, or for each
refinery individually.
    (2) An obligated party that carries a deficit into year i+1 must
use the same approach to aggregation of facilities in year i+1 as it
did in year i.
    (d) An obligated party must comply with the requirements of
paragraph (b) of this section for all of its imported gasoline or
diesel fuel in the aggregate.
    (e) An obligated party that is both a refiner and importer must
comply with the requirements of paragraph (b) of this section for its
imported gasoline or diesel fuel separately from gasoline or diesel
fuel produced by its domestic refinery or refineries.
    (f) Where a refinery or import facility is jointly owned by two or
more parties, the requirements of paragraph (b) of this section may be
met by one of the joint owners for all of the gasoline or diesel fuel
produced/imported at the facility, or each party may meet the
requirements of paragraph (b) of this section for the portion of the
gasoline or diesel fuel that it produces or imports, as long as all of
the gasoline or diesel fuel produced/imported at the facility is
accounted for in determining the Renewable Volume Obligations under
Sec.  80.1407.
    (g) The requirements in paragraph (b) of this section apply to the
following compliance periods: Beginning in 2010, and every year
thereafter, the compliance period is January 1 through December 31.

Sec.  80.1407  How are the Renewable Volume Obligations calculated?

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

RVOCB,i = (RFStdCB,i * (GVi +
DVi)) + DCB,i-1

Where:

RVOCB,i = The Renewable Volume Obligation for cellulosic
biofuel for an obligated party for calendar year i, in gallons.
RFStdCB,i = The standard for cellulosic biofuel for
calendar year i, determined by EPA pursuant to Sec.  80.1405, in
percent.
GVi = The non-renewable gasoline volume, determined in
accordance with paragraphs (b), (c), and (f) of this section, which
is produced in or imported into the 48 contiguous states or Hawaii
by an obligated party in calendar year i, in gallons.
DVi = The non-renewable diesel volume, determined in
accordance with paragraphs (d), (e), and (f) of this section,
produced in or imported into the 48 contiguous states or Hawaii by
an obligated party in calendar year i, in gallons.
DCB,i-1 = Deficit carryover from the previous year for
cellulosic biofuel, in gallons.

    (2) Biomass-based diesel.

RVOBBD,i = (RFStdBBD,i * (GVi +
DVi)) + DBBD,i-1

Where:
RVOBBD,i = The Renewable Volume Obligation for biomass-
based diesel for an obligated party for calendar year i, in gallons.
RFStdBBD,i = The standard for biomass-based diesel for
calendar year i, determined by EPA pursuant to Sec.  80.1405, in
percent.
GVi = The non-renewable gasoline volume, determined in
accordance with paragraphs (b), (c), and (f) of this section, which
is produced in or imported into the 48 contiguous states or Hawaii
by an obligated party in calendar year i, in gallons.
DVi = The non-renewable diesel volume, determined in
accordance with paragraphs (d), (e), and (f) of this section,
produced in or imported into the 48 contiguous states or Hawaii by
an obligated party in calendar year i, in gallons.
DBBD,i-1 = Deficit carryover from the previous year for
biomass-based diesel, in gallons.

    (3) Advanced biofuel.

RVOAB,i = (RFStdAB,i * (GVi +
DVi)) + DAB,i-1

Where:

RVOAB,i = The Renewable Volume Obligation for advanced
biofuel for an obligated party for calendar year i, in gallons.
RFStdAB,i = The standard for advanced biofuel for
calendar year i, determined by EPA pursuant to Sec.  80.1405, in
percent.
GVi = The non-renewable gasoline volume, determined in
accordance with paragraphs (b), (c), and (f) of this section, which
is produced in or imported into the 48 contiguous states or Hawaii
by an obligated party in calendar year i, in gallons.
DVi = The non-renewable diesel volume, determined in
accordance with paragraphs (d), (e), and (f) of this section,
produced in or imported into the 48 contiguous states or Hawaii by
an obligated party in calendar year i, in gallons.
DAB,i-1 = Deficit carryover from the previous year for
advanced biofuel, in gallons.

    (4) Renewable fuel.

RVORF,i = (RFStdRF,i * (GVi +
DVi)) + DRF,i-1

Where:

RVORF,i = The Renewable Volume Obligation for renewable
fuel for an obligated party for calendar year i, in gallons.
RFStdRF,i = The standard for renewable fuel for calendar
year i, determined by EPA pursuant to Sec.  80.1405, in percent.
GVi = The non-renewable gasoline volume, determined in
accordance with paragraphs (b), (c), and (f) of this section, which
is produced in or imported into the 48 contiguous states or Hawaii
by an obligated party in calendar year i, in gallons.
DVi = The non-renewable diesel volume, determined in
accordance with paragraphs (d), (e), and (f) of this section,
produced in or imported into the 48 contiguous states or Hawaii by
an obligated party in calendar year i, in gallons.
DRF,i-1 = Deficit carryover from the previous year for
renewable fuel, in gallons.

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

[GRAPHIC] [TIFF OMITTED] TR26MR10.430

Where:

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

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

that has been combined with other blendstock and/or finished gasoline
to produce gasoline.
    (6) Any gasoline, or any unfinished gasoline that becomes finished
gasoline upon the addition of oxygenate, that is produced or imported
to comply with a state or local fuels program.
    (d) The diesel non-renewable volume, DVi, for an
obligated party for a given year as specified in paragraph (a) of this
section is calculated as follows:

[GRAPHIC] [TIFF OMITTED] TR26MR10.431

Where:

x = Individual batch of diesel produced or imported in calendar year
i.
n = Total number of batches of diesel produced or imported in
calendar year i.
Dx = Volume of batch x of diesel produced or imported, as
defined in paragraph (e) of this section, in gallons.
y = Individual batch of renewable fuel blended into diesel in
calendar year i.
m = Total number of batches of renewable fuel blended into diesel in
calendar year i.
RBDy = Volume of batch y of renewable fuel blended into
diesel, in gallons.

    (e) Except as specified in paragraph (f) of this section, all
products meeting the definition of MVNRLM diesel fuel at Sec.
80.2(qqq) that are produced or imported during a compliance period,
collectively called ``diesel fuel'' for the purposes of this section
(unless otherwise specified), are to be included (but not double-
counted) in the volume used to calculate a party's Renewable Volume
Obligations under paragraph (a) of this section.
    (f) The following products are not included in the volume of
gasoline or diesel fuel produced or imported used to calculate a
party's Renewable Volume Obligations according to paragraph (a) of this
section:
    (1) Any renewable fuel as defined in Sec.  80.1401.
    (2) Blendstock that has not been combined with other blendstock,
finished gasoline, or diesel to produce gasoline or diesel.
    (3) Gasoline or diesel fuel produced or imported for use in Alaska,
the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern Marianas, unless
the area has opted into the RFS program under Sec.  80.1443.
    (4) Gasoline or diesel fuel produced by a small refinery that has
an exemption under Sec.  80.1441 or an approved small refiner that has
an exemption under Sec.  80.1442.
    (5) Gasoline or diesel fuel exported for use outside the 48 United
States and Hawaii, and gasoline or diesel fuel exported for use outside
Alaska, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern Marianas, if the
area has opted into the RFS program under Sec.  80.1443.
    (6) For blenders, the volume of finished gasoline, finished diesel
fuel, RBOB, or CBOB to which a blender adds blendstocks.
    (7) The gasoline or diesel fuel portion of transmix produced by a
transmix processor, or the transmix blended into gasoline or diesel
fuel by a transmix blender, under Sec.  80.84.
    (8) Any gasoline or diesel fuel that is not transportation fuel.

Sec. Sec.  80.1408-80.1414  [Reserved]

Sec.  80.1415  How are equivalence values assigned to renewable fuel?

    (a)(1) Each gallon of a renewable fuel, or gallon equivalent
pursuant to paragraph (c) of this section, shall be assigned an
equivalence value by the producer or importer pursuant to paragraph (b)
or (c) of this section.
    (2) The equivalence value is a number that is used to determine how
many gallon-RINs can be generated for a batch of renewable fuel
according to Sec.  80.1426.
    (b) Equivalence values shall be assigned for certain renewable
fuels as follows:
    (1) Ethanol which is denatured shall have an equivalence value of
1.0.
    (2) Biodiesel (mono-alkyl ester) shall have an equivalence value of
1.5.
    (3) Butanol shall have an equivalence value of 1.3.
    (4) Non-ester renewable diesel with a lower heating value of at
least 123,500 Btu/gal shall have an equivalence value of 1.7.
    (5) A gallon of renewable fuel represents 77,000 Btu (lower heating
value) of biogas, and biogas shall have an equivalence value of 1.0.
    (6) A gallon of renewable fuel represents 22.6 kW-hr of
electricity, and electricity shall have an equivalence value of 1.0.
    (7) For all other renewable fuels, a producer or importer shall
submit an application to the Agency for an equivalence value following
the provisions of paragraph (c) of this section. A producer or importer
may also submit an application for an alternative equivalence value
pursuant to paragraph (c) if the renewable fuel is listed in this
paragraph (b), but the producer or importer has reason to believe that
a different equivalence value than that listed in this paragraph (b) is
warranted.
    (c) Calculation of new equivalence values.
    (1) The equivalence value for renewable fuels described in
paragraph (b)(7) of this section shall be calculated using the
following formula:

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

Where:

EV = Equivalence Value for the renewable fuel, rounded to the
nearest tenth.
R = Renewable content of the renewable fuel. This is a measure of
the portion of a renewable fuel that came from a renewable source,
expressed as a percent, on an energy basis.
EC = Energy content of the renewable fuel, in Btu per gallon (lower
heating value).

    (2) The application for an equivalence value shall include a
technical justification that includes a description of the renewable
fuel, feedstock(s) used to make it, and the production process.
    (3) The Agency will review the technical justification and assign
an appropriate equivalence value to the renewable fuel based on the
procedure in this paragraph (c).
    (4) Applications for equivalence values must be sent to one of the
following addresses:
    (i) For U.S. Mail: U.S. EPA, Attn: RFS2 Program Equivalence Value
Application, 6406J, 1200 Pennsylvania Avenue, NW., Washington, DC
20460.
    (ii) For overnight or courier services: U.S. EPA, Attn: RFS2
Program Equivalence Value Application, 6406J, 1310 L Street, NW., 6th
floor, Washington, DC 20005.<PHONE_NUMBER>.
    (5) All applications required under this section shall be submitted
on forms and following procedures prescribed by the Administrator.

Sec.  80.1416  Petition process for evaluation of new renewable fuels
pathways.

    (a)(1) A party may petition EPA to assign a D code for a new
renewable fuel pathway that has not been evaluated by EPA to determine
if it qualifies for a D code as defined in Sec.  80.1426(f), pursuant
to this section. A D code must be approved prior to the generation of
RINs for the fuel in question.
    (2) For renewable fuel pathways that have been determined by EPA
not to qualify for a D code as defined in Sec.  80.1426(f), parties who
can document significant differences between the fuel production
processes considered in this rule and their fuel pathway production
processes may petition EPA to use a D code pursuant to this section.
    (3) Parties may petition EPA to qualify their renewable fuel
pathway for a different D code than the D code assigned to the fuel
pathway as defined in Sec.  80.1426(f) if the parties can document
significant differences

between the fuel production processes considered in this rule and their
fuel pathway production processes, pursuant to this section.
    (b)(1) Any petition under paragraph (a) of this section shall
include all the following:
    (i) The information specified under Sec.  80.76.
    (ii) A technical justification that includes a description of the
renewable fuel, feedstock(s) used to make it, and the production
process. The justification must include process modeling flow charts.
    (iii) A mass balance for the pathway, including feedstocks, fuels
produced, co-products, and waste materials production.
    (iv) Information on co-products, including their expected use and
market value.
    (v) An energy balance for the pathway, including a list of any
energy and process heat inputs and outputs used in the pathway,
including such sources produced off site or by another entity.
    (vi) Any other relevant information, including information
pertaining to energy saving technologies or other process improvements.
    (vii) The Administrator may ask for additional information to
complete the lifecycle greenhouse gas assessment of the new fuel or
pathway.
    (2) For those companies who use a feedstock not previously
evaluated by EPA under this subpart, the petition must include all the
following in addition to the requirements in paragraph (b)(1) of this
section:
    (i) Type of feedstock and description of how it meets the
definition of renewable biomass.
    (ii) Market value of the feedstock.
    (iii) List of other uses for the feedstock.
    (iv) List of chemical inputs needed to produce the renewable
biomass source of the feedstock and prepare the renewable biomass for
processing into feedstock.
    (v) Identify energy needed to obtain the feedstock and deliver it
to the facility. If applicable, identify energy needed to plant and
harvest the renewable biomass source of the feedstock and modify the
source to create the feedstock.
    (vi) Current and projected yields of the feedstock that will be
used to produce the fuels.
    (vii) The Administrator may ask for additional information to
complete the lifecycle Greenhouse Gas assessment of the new fuel or
pathway.
    (c)(1) A company may only submit one petition per pathway. If EPA
determines the petition to be incomplete, then the company may
resubmit.
    (2) The petition must be signed and certified as meeting all the
applicable requirements of this subpart by the responsible corporate
officer of the applicant organization.
    (3) If EPA determines that the petition is incomplete then EPA will
notify the applicant in writing that the petition is incomplete and
will not be reviewed further. However, an amended petition that
corrects the omission may be re-submitted for EPA review.
    (4) If the fuel or pathway described in the petition does not meet
the definitions in Sec.  80.1401 of renewable fuel, advanced biofuel,
cellulosic biofuel, or biomass-based diesel, then EPA will notify the
applicant in writing that the petition is denied and will not be
reviewed further.
    (d) The petition under this section shall be submitted on forms and
following procedures as prescribed by EPA.

Sec. Sec.  80.1417-80.1424  [Reserved]

Sec.  80.1425  Renewable Identification Numbers (RINs).

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

KYYYYCCCCFFFFFBBBBBRRDSSSSSSSSEEEEEEEE

    (a) K is a number identifying the type of RIN as follows:
    (1) K has the value of 1 when the RIN is assigned to a volume of
renewable fuel pursuant to Sec.  80.1426(e) and Sec.  80.1428(a).
    (2) K has the value of 2 when the RIN has been separated from a
volume of renewable fuel pursuant to Sec.  80.1429.
    (b) YYYY is the calendar year in which the RIN was generated.
    (c) CCCC is the registration number assigned, according to Sec.
80.1450, to the producer or importer of the batch of renewable fuel.
    (d) FFFFF is the registration number assigned, according to Sec.
80.1450, to the facility at which the batch of renewable fuel was
produced or imported.
    (e) BBBBB is a serial number assigned to the batch which is chosen
by the producer or importer of the batch such that no two batches have
the same value in a given calendar year.
    (f) RR is a number representing 10 times the equivalence value of
the renewable fuel as specified in Sec.  80.1415.
    (g) D is a number determined according to Sec.  80.1426(f) and
identifying the type of renewable fuel, as follows:
    (1) D has the value of 3 to denote fuel categorized as cellulosic
biofuel.
    (2) D has the value of 4 to denote fuel categorized as biomass-
based diesel.
    (3) D has the value of 5 to denote fuel categorized as advanced
biofuel.
    (4) D has the value of 6 to denote fuel categorized as renewable
fuel.
    (5) D has the value of 7 to denote fuel categorized as cellulosic
diesel.
    (h) SSSSSSSS is a number representing the first gallon-RIN
associated with a batch of renewable fuel.
    (i) EEEEEEEE is a number representing the last gallon-RIN
associated with a batch of renewable fuel. EEEEEEEE will be identical
to SSSSSSSS if the batch-RIN represents a single gallon-RIN. Assign the
value of EEEEEEEE as described in Sec.  80.1426.

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

    (a) General requirements.
    (1) To the extent permitted under paragraphs (b) and (c) of this
section, producers and importers of renewable fuel must generate RINs
to represent that fuel if the fuel:
    (i) Qualifies for a D code pursuant to Sec.  80.1426(f), or EPA has
approved a petition for use of a D code pursuant to Sec.  80.1416; and
    (ii) Is demonstrated to be produced from renewable biomass pursuant
to the reporting requirements of Sec.  80.1451 and the recordkeeping
requirements of Sec.  80.1454.
    (A) Feedstocks meeting the requirements of renewable biomass
through the aggregate compliance provision at Sec.  80.1454(g) are
deemed to be renewable biomass.
    (B) [Reserved]
    (2) To generate RINs for imported renewable fuel, including any
renewable fuel contained in imported transportation fuel, importers
must obtain information from a foreign producer that is registered
pursuant to Sec.  80.1450 sufficient to make the appropriate
determination regarding the applicable D code and compliance with the
renewable biomass definition for each imported batch for which RINs are
generated.
    (3) A party generating a RIN shall specify the appropriate
numerical values for each component of the RIN in accordance with the
provisions of Sec.  80.1425(a) and paragraph (f) of this section.
    (b) Regional applicability.
    (1) Except as provided in paragraph (c) of this section, a RIN must
be generated by a renewable fuel producer or importer for a batch of
renewable fuel that satisfies the requirements of paragraph (a)(1) of
this section if it is produced or imported for use as transportation
fuel, heating oil, or jet

fuel in the 48 contiguous states or Hawaii.
    (2) If the Administrator approves a petition of Alaska or a United
States territory to opt-in to the renewable fuel program under the
provisions in Sec.  80.1443, then the requirements of paragraph (b)(1)
of this section shall also apply to renewable fuel produced or imported
for use as transportation fuel, heating oil, or jet fuel in that state
or territory beginning in the next calendar year.
    (c) Cases in which RINs are not generated.
    (1) Fuel producers and importers may not generate RINs for fuel
that is not designated or intended for use as transportation fuel,
heating oil, or jet fuel.
    (2) Small producer/importer threshold. Pursuant to Sec.  80.1455(a)
and (b), renewable fuel producers that produce less than 10,000 gallons
a year of renewable fuel, and importers that import less than 10,000
gallons a year of renewable fuel, are not required to generate and
assign RINs to batches of renewable fuel that that satisfy the
requirements of paragraph (a)(1) of this section that they produce or
import.
    (3) Temporary new producer threshold. Pursuant to Sec.  80.1455(c)
and (d), renewable fuel producers that produce less than 125,000
gallons a year of renewable fuel are not required to generate and
assign RINs to batches of renewable fuel that satisfy the requirements
of paragraph (a)(1) of this section and that are produced from a new
facility, for a maximum of three years beginning with the calendar year
in which the production facility produces its first gallon of renewable
fuel.
    (4) Importers shall not generate RINs for fuel imported from a
foreign producer that is not registered with EPA as required in Sec.
80.1450.
    (5) Importers shall not generate RINs for renewable fuel that has
already been assigned RINs by a registered foreign producer.
    (6) A party is prohibited from generating RINs for a volume of fuel
that it produces if:
    (i) The fuel does not meet the requirements of paragraph (a)(1) of
this section; or
    (ii) The fuel has been produced from a chemical conversion process
that uses another renewable fuel as a feedstock, the renewable fuel
used as a feedstock was produced by another party, and RINs with a K
code of 1 were received with the renewable fuel.
    (A) Parties who produce renewable fuel made from a feedstock which
itself was a renewable fuel received with RINs, shall assign the
original RINs to the new renewable fuel.
    (B) [Reserved]
    (d)(1) Definition of batch. For the purposes of this section and
Sec.  80.1425, a ``batch of renewable fuel'' is a volume of renewable
fuel that has been assigned a unique identifier within a calendar year
by the producer or importer of the renewable fuel in accordance with
the provisions of this section and Sec.  80.1425.
    (i) The number of gallon-RINs generated for a batch of renewable
fuel may not exceed 99,999,999.
    (ii) A batch of renewable fuel cannot represent renewable fuel
produced or imported in excess of one calendar month.
    (2) Multiple gallon-RINs generated to represent a given volume of
renewable fuel can be represented by a single batch-RIN through the
appropriate designation of the RIN volume codes SSSSSSSS and EEEEEEEE.
    (i) The value of SSSSSSSS in the batch-RIN shall be 00000001 to
represent the first gallon-RIN associated with the volume of renewable
fuel.
    (ii) The value of EEEEEEEE in the batch-RIN shall represent the
last gallon-RIN associated with the volume of renewable fuel, based on
the RIN volume determined pursuant to paragraph (f) of this section.
    (iii) Under Sec.  80.1452, RIN volumes will be managed by EMTS. RIN
codes SSSSSSSS and EEEEEEEE do not have a role in EMTS.
    (e) Assignment of RINs to batches.
    (1) The producer or importer of renewable fuel must assign all RINs
generated to volumes of renewable fuel.
    (2) A RIN is assigned to a volume of renewable fuel when ownership
of the RIN is transferred along with the transfer of ownership of the
volume of renewable fuel, pursuant to Sec.  80.1428(a).
    (3) All assigned RINs shall have a K code value of 1.
    (f) Generation of RINs.
    (1) Applicable pathways. D codes shall be used in RINs generated by
producers or importers of renewable fuel according to the pathways
listed in Table 1 to this section, or as approved by the Administrator.
In choosing an appropriate D code, producers and importers may
disregard any incidental, de minimis feedstock contaminants that are
impractical to remove and are related to customary feedstock production
and transport.

          Table 1 to Sec.   80.1426 Applicable D Codes for Each Fuel Pathway for Use in Generating RINs
----------------------------------------------------------------------------------------------------------------
                                                                              Production process
               Fuel type                           Feedstock                     requirements            D-Code
----------------------------------------------------------------------------------------------------------------
Ethanol...............................  Corn starch...................  All of the following:........          6
                                                                        Drymill process, using
                                                                         natural gas, biomass, or
                                                                         biogas for process energy
                                                                         and at least two advanced
                                                                         technologies from Table 2 to
                                                                         this section.
Ethanol...............................  Corn starch...................  All of the following:........          6
                                                                        Dry mill process, using
                                                                         natural gas, biomass, or
                                                                         biogas for process energy
                                                                         and at least one of the
                                                                         advanced technologies from
                                                                         Table 2 to this section plus
                                                                         drying no more than 65% of
                                                                         the distillers grains with
                                                                         solubles it markets annually.
Ethanol...............................  Corn starch...................  All of the following:........          6
                                                                        Dry mill process, using
                                                                         natural gas, biomass, or
                                                                         biogas for process energy
                                                                         and drying no more than 50%
                                                                         of the distillers grains
                                                                         with solubles it markets
                                                                         annually.
Ethanol...............................  Corn starch...................  Wet mill process using                 6
                                                                         biomass or biogas for
                                                                         process energy.
Ethanol...............................  Starches from agricultural      Fermentation using natural             6
                                         residues and annual             gas, biomass, or biogas for
                                         covercrops.                     process energy.

Biodiesel, and renewable diesel.......  Soy bean oil;                   One of the following:                  4
                                        Oil from annual covercrops;...  Trans-Esterification.........
                                        Algal oil;....................  Hydrotreating................
                                        Biogenic waste oils/fats/       Excluding processes that co-
                                         greases;.                       process renewable biomass
                                        Non-food grade corn oil.......   and petroleum..
Biodiesel, and renewable diesel.......  Soy bean oil;                   One of the following:                  5
                                        Oil from annual covercrops;...  Trans-Esterification.........
                                        Algal oil;....................  Hydrotreating................
                                        Biogenic waste oils/fats/       Includes only processes that
                                         greases;.                       co-process renewable biomass
                                        Non-food grade corn oil.......   and petroleum..
Ethanol...............................  Sugarcane.....................  Fermentation.................          5
Ethanol...............................  Cellulosic Biomass from         Any..........................          3
                                         agricultural residues, slash,
                                         forest thinnings and forest
                                         product residues, annual
                                         covercrops; switchgrass, and
                                         miscanthus; cellulosic
                                         components of separated yard
                                         wastes; cellulosic components
                                         of separated food wastes; and
                                         cellulosic components of
                                         separated MSW.
Cellulosic Diesel, Jet Fuel and         Cellulosic Biomass from         Any..........................          7
 Heating Oil.                            agricultural residues, slash,
                                         forest thinnings and forest
                                         product residues, annual
                                         covercrops, switchgrass, and
                                         miscanthus; cellulosic
                                         components of separated yard
                                         wastes; cellulosic components
                                         of separated food wastes; and
                                         cellulosic components of
                                         separated MSW.
 Butanol..............................  Corn starch...................  Fermentation; dry mill using           6
                                                                         natural gas, biomass, or
                                                                         biogas for process energy.
Cellulosic Naphtha....................  Cellulosic Biomass from         Fischer-Tropsch process......          3
                                         agricultural residues, slash,
                                         forest thinnings and forest
                                         product residues, annual
                                         covercrops, switchgrass, and
                                         miscanthus; cellulosic
                                         components of separated yard
                                         wastes; cellulosic components
                                         of separated food wastes; and
                                         cellulosic components of
                                         separated MSW.
Ethanol, renewable diesel, jet fuel,    The non-cellulosic portions of  Any..........................          5
 heating oil, and naphtha.               separated food wastes.
Biogas................................  Landfills, sewage and waste     Any..........................          5
                                         treatment plants, manure
                                         digesters.
----------------------------------------------------------------------------------------------------------------

            Table 2 to Sec.   80.1426--Advanced Technologies
------------------------------------------------------------------------

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

    (2) Renewable fuel that can be described by a single pathway.
    (i) The number of gallon-RINs that shall be generated for a batch
of renewable fuel by a producer or importer for renewable fuel that can
be described by a single pathway shall be equal to a volume calculated
according to the following formula:

VRIN = EV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.

    (ii) The D code that shall be used in the RINs generated shall be
the D code specified in Table 1 to this section, or a D code as
approved by the Administrator, which corresponds to the pathway that
describes the producer's operations.
    (3) Renewable fuel that can be described by two or more pathways.
    (i) The D codes that shall be used in the RINs generated by a
producer or importer whose renewable fuel can be described by two or
more pathways shall be the D codes specified in Table 1 to this
section, or D codes as approved by the Administrator, which correspond
to the pathways that describe the renewable fuel throughout that
calendar year.
    (ii) If all the pathways describing the producer's operations have
the same D code and each batch is of a single fuel type, then that D
code shall be used in all the RINs generated and the number of gallon-
RINs that shall be generated for a batch of renewable fuel shall be
equal to a volume calculated according to the following formula:

VRIN = EV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.

    (iii) If all the pathways describing the producer's operations have
the same D code but individual batches are comprised of a mixture of
fuel types with different equivalence values, then that D code shall be
used in all the RINs generated and the number of gallon-RINs that shall
be generated for a batch of renewable fuel shall be equal to a volume
calculated according to the following formula:

VRIN = [Sigma](EVi * Vs,i)

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EVi = Equivalence value for fuel type i in the batch of
renewable fuel per Sec.  80.1415.
    Vs,i = Standardized volume of fuel type i in the
batch of renewable fuel at 60 [deg]F, in gallons, calculated in
accordance with paragraph (f)(8) of this section.

    (iv) If the pathway applicable to a producer changes on a specific
date, such that one pathway applies before the date and another pathway
applies on and after the date, and each batch is of a single fuel type,
then the applicable D code and batch identifier used in generating RINs
must change on the date that the change in pathway occurs and the
number of gallon-RINs that shall be generated for a batch of renewable
fuel shall be equal to a volume calculated according to the following
formula:

VRIN = EV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for a batch with a
single applicable D code.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.

    (v) If a producer produces batches that are comprised of a mixture
of fuel types with different equivalence values and different
applicable D codes, then separate values for VRIN shall be
calculated for each category of renewable fuel according to formulas in
Table 3 to this section. All batch-RINs thus generated shall be
assigned to unique batch identifiers for each portion of the batch with
a different D code.

Table 3 to Sec.   80.1426--Number of Gallon-RINs To Assign to Batch-RINs
                   With D Codes Dependent on Fuel Type
------------------------------------------------------------------------
        D code to use in batch-RIN              Number of gallon-RINs
------------------------------------------------------------------------
D = 3.....................................  VRIN, CB = EVCB * Vs,CB
D = 4.....................................  VRIN, BBD = EVBBD * Vs,BBD
D = 5.....................................  VRIN, AB = EVAB * Vs,AB
D = 6.....................................  VRIN, RF = EVRF * Vs,RF
D = 7.....................................  VRIN, CD = EVCD * Vs,CD
------------------------------------------------------------------------

Where:

VRIN,CB = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the cellulosic
biofuel portion of the batch with a D code of 3.
VRIN,BBD = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the biomass-
based diesel portion of the batch with a D code of 4.
VRIN,AB = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the advanced
biofuel potion of the batch with a D code of 5.
VRIN,RF = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the renewable
fuel potion of the batch with a D code of 6.
VRIN,CD = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for the cellulosic
diesel portion of the batch with a D code of 7.
EVCB = Equivalence value for the cellulosic biofuel
portion of the batch per Sec.  80.1415.
EVBBD = Equivalence value for the biomass-based diesel
portion of the batch per Sec.  80.1415.
EVAB = Equivalence value for the advanced biofuel portion
of the batch per Sec.  80.1415.
EVRF = Equivalence value for the renewable fuel portion
of the batch per Sec.  80.1415.
EVCD = Equivalence value for the cellulosic diesel
portion of the batch per Sec.  80.1415.
Vs,CB = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 3, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,BBD = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 4, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,AB = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 5, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,RF = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 6, in gallons,
calculated in accordance with paragraph (f)(8) of this section.
Vs,CD = Standardized volume at 60 [deg]F of the portion
of the batch that must be assigned a D code of 7, in gallons,
calculated in accordance with paragraph (f)(8) of this section.

    (vi) If a producer produces a single type of renewable fuel using
two or more different feedstocks which are processed simultaneously,
and each batch is comprised of a single type of fuel, then the number
of gallon-RINs that shall be generated for a batch of renewable fuel
and assigned a particular D code shall be determined according to the
formulas in Table 4 to this section.
[GRAPHIC] [TIFF OMITTED] TR26MR10.432

Where:

VRIN,CB = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for a batch of
cellulosic biofuel with a D code of 3.
VRIN,BBD = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for a batch of
biomass-based diesel with a D code of 4.
VRIN,AB = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for a batch of
advanced biofuel with a D code of 5.
VRIN,RF = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for a batch of
renewable fuel with a D code of 6.
VRIN,CD = RIN volume, in gallons, for use in determining
the number of gallon-RINs that shall be generated for a batch of
cellulosic diesel with a D code of 7.
EV = Equivalence value for the renewable fuel per Sec.  80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
FE3 = Feedstock energy from all feedstocks whose pathways
have been assigned a D code of 3 under Table 1 to this section, or a
D code of 3 as approved by the Administrator, in Btu.
FE4 = Feedstock energy from all feedstocks whose pathways
have been assigned a D code of 4 under Table 1 to this section, or a
D code of 4 as approved by the Administrator, in Btu.
FE5 = Feedstock energy from all feedstocks whose pathways
have been assigned a D code of 5 under Table 1 to this section, or a
D code of 5 as approved by the Administrator, in Btu.
FE6 = Feedstock energy from all feedstocks whose pathways
have been assigned a D code of 6 under Table 1 to this section, or a
D code of 6 as approved by the Administrator, in Btu.
FE7 = Feedstock energy from all feedstocks whose pathways
have been assigned a D code of 7 under Table 1 to this section, or a
D code of 7 as approved by the Administrator, in Btu.

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

FE = M * (1 - m) * CF * E

Where:

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

    (4) Renewable fuel that is produced by co-processing renewable
biomass and non-renewable feedstocks simultaneously to produce a
transportation fuel that is partially renewable.
    (i) The number of gallon-RINs that shall be generated for a batch
of partially renewable transportation fuel shall be equal to a volume
VRIN calculated according to Method A or Method B.
    (A) Method A.
    (1) VRIN shall be calculated according to the following
formula:

VRIN = EV * Vs * FER/(FER +
FENR)

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
FER = Feedstock energy from renewable biomass used to
make the transportation fuel, in Btu.
FENR = Feedstock energy from non-renewable feedstocks
used to make the transportation fuel, in Btu.

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

FE = M * (1 - m) * CF * E

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

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

VRIN = EV * Vs * R

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
R = The renewable fraction of the fuel as measured by a carbon-14
dating test method as provided in paragraph (f)(9) of this section.

    (ii) The D code that shall be used in the RINs generated to
represent partially renewable transportation fuel shall be the D code
specified in Table 1 to this section, or a D code as approved by the
Administrator, which corresponds to the pathway that describes a
producer's operations. In determining the appropriate pathway, the
contribution of fossil fuel feedstocks to the production of partially
renewable fuel shall be ignored.
    (5) Renewable fuel produced from separated yard and food waste.
    (i) Separated yard waste and food waste means, for the purposes of
this section, waste that is one of the following:
    (A) Separated yard wastes, which are feedstock streams consisting
of yard waste kept separate since generation from other waste
materials. Separated yard wastes are deemed to be composed entirely of
cellulosic materials.
    (B) Separated food wastes, which are feedstock streams consisting
of food wastes kept separate since generation from other waste
materials, and which include food and beverage production wastes and
post-consumer food and beverage wastes. Separated food wastes are
deemed to be composed entirely of non-cellulosic materials, unless a
party demonstrates that a portion of the feedstock is cellulosic
through approval of their facility registration.
    (C) Separated municipal solid waste (MSW), which is material
remaining after separation actions have been taken to remove recyclable
paper, cardboard, plastics, rubber, textiles, metals, and glass from
municipal solid waste, and which is composed of both cellulosic and
non-cellulosic materials.
    (ii)(A) A feedstock qualifies under paragraph (f)(5)(i)(A) or
(f)(5)(i)(B) of this section only if it is collected according to a
plan submitted to and approved by U.S. EPA under the registration
procedures specified in Sec.  80.1450(b)(1)(vii).
    (B) A feedstock qualifies under paragraph (f)(5)(i)(C) of this
section only if it is collected according to a plan submitted to and
approved by U.S. EPA under the registration procedures specified in
Sec.  80.1450(b)(1)(viii).
    (iii) Separation and recycling actions specified in paragraph
(f)(5)(i)(C) of this section are considered to occur if:
    (A) Recyclable paper, cardboard, plastics, rubber, textiles,
metals, and glass that can be recycled are separated and removed from
the municipal solid waste stream to the extent reasonably practicable
according to a plan submitted to and approved by U.S. EPA under the
registration procedures specified in Sec.  80.1450(b)(1)(viii); and
    (B) The fuel producer has evidence of all contractual arrangements
for paper, cardboard, plastics, rubber, textiles, metals, and glass
that are recycled.

    (iv)(A) The number of gallon-RINs that shall be generated for a
batch of renewable fuel derived from separated yard waste as defined in
paragraph (f)(5)(i)(A) of this section shall be equal to a volume
VRIN and is calculated according to the following formula:

VRIN = EV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of cellulosic biofuel gallon-RINs that shall be generated for
the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.

    (B) The number of gallon-RINs that shall be generated for a batch
of renewable fuel derived from separated food waste as defined in
paragraph (f)(5)(i)(B) of this section shall be equal to a volume
VRIN and is calculated according to the following formula:

VRIN = EV \*\ Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of cellulosic or advanced biofuel gallon-RINs that shall be
generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.

    (v) The number of cellulosic biofuel gallon-RINs that shall be
generated for the cellulosic portion of a batch of renewable fuel
derived from separated MSW as defined in paragraph (f)(5)(i)(C) of this
section shall be determined according to the following formula:

VRIN = EV \*\ Vs \*\ R

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of cellulosic biofuel gallon-RINs that shall be generated for
the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.
R = The calculated non-fossil fraction of the fuel as measured by a
carbon-14 dating test method as provided in paragraph (f)(9) of this
section.

    (vi) The D code that shall be used in the RINs generated to
represent separated yard waste, food waste, and MSW shall be the D code
specified in Table 1 to this section, or a D code as approved by the
Administrator, which corresponds to the pathway that describes the
producer's operations and feedstocks.
    (6) Renewable fuel neither covered by the pathways in Table 1 to
this section, nor given an approval by the Administrator for use of a
specific D code.
    If none of the pathways described in Table 1 to this section apply
to a producer's operations, and the producer has not received approval
for the use of a specific D code by the Administrator, the party may
generate RINs if the fuel from its facility is made from renewable
biomass and qualifies for an exemption under Sec.  80.1403 from the
requirement that renewable fuel achieve at least a 20 percent reduction
in lifecycle greenhouse gas emissions compared to baseline lifecycle
greenhouse gas emissions.
    (i) The number of gallon-RINs that shall be generated for a batch
of renewable fuel that qualifies for an exemption from the 20 percent
GHG reduction requirements under Sec.  80.1403 shall be equal to a
volume calculated according to the following formula:

VRIN = EV \*\ Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the
number of gallon-RINs that shall be generated for the batch.
EV = Equivalence value for the batch of renewable fuel per Sec.
80.1415.
Vs = Standardized volume of the batch of renewable fuel
at 60 [deg]F, in gallons, calculated in accordance with paragraph
(f)(8) of this section.

    (ii) A D code of 6 shall be used in the RINs generated under this
paragraph (f)(6).
    (7) Determination of feedstock energy content factors.
    (i) For purposes of paragraphs (f)(3)(vi) and (f)(4)(i)(A)(2) of
this section, producers must specify the value for E, the energy
content of the components of the feedstock that are converted to
renewable fuel, used in the calculation of the feedstock energy value
FE.
    (ii) The value for E shall represent the higher or gross calorific
heating value for a feedstock on a zero moisture basis.
    (iii) Producers must specify the value for E for each type of
feedstock at least once per calendar year.
    (iv) A producer must use default values for E as provided in
paragraph (f)(7)(vi) of this section, or must determine alternative
values for its own feedstocks according to paragraph (f)(7)(v) of this
section.
    (v) Producers that do not use a default value for E must use the
following test methods, or alternative test methods as approved by EPA,
to determine the value of E. The value of E shall be based upon the
test results of a sample of feedstock that, based upon good engineering
judgment, is representative of the feedstocks used to produce renewable
fuel:
    (A) ASTM E 870 or ASTM E 711 for gross calorific value (both
incorporated by reference, see Sec.  80.1468).
    (B) ASTM D 4442 or ASTM D 4444 for moisture content (both
incorporated by reference, see Sec.  80.1468).
    (vi) Default values for E.
    (A) Starch: 7,600 Btu/lb.
    (B) Sugar: 7,300 Btu/lb.
    (C) Vegetable oil: 17,000 Btu/lb.
    (D) Waste cooking oil or trap grease: 16,600 Btu/lb.
    (E) Tallow or fat: 16,200 Btu/lb.
    (F) Manure: 6,900 Btu/lb.
    (G) Woody biomass: 8,400 Btu/lb.
    (H) Herbaceous biomass: 7,300 Btu/lb.
    (I) Yard wastes: 2,900 Btu/lb.
    (J) Biogas: 11,000 Btu/lb.
    (K) Food waste: 2,000 Btu/lb.
    (L) Paper: 7,200 Btu/lb.
    (M) Crude oil: 19,100 Btu/lb.
    (N) Coal--bituminous: 12,200 Btu/lb.
    (O) Coal--anthracite: 13,300 Btu/lb.
    (P) Coal--lignite or sub-bituminous: 7,900 Btu/lb.
    (Q) Natural gas: 19,700 Btu/lb.
    (R) Tires or rubber: 16,000 Btu/lb.
    (S) Plastic: 19,000 Btu/lb.
    (8) Standardization of volumes. In determining the standardized
volume of a batch of renewable fuel for purposes of generating RINs
under this paragraph (f), the batch volumes shall be adjusted to a
standard temperature of 60 [deg]F.
    (i) For ethanol, the following formula shall be used:

Vs,e = Va,e \*\ (-0.0006301 \*\ T + 1.0378)

Where:

Vs,e = Standardized volume of ethanol at 60 [deg]F, in
gallons.
Va,e = Actual volume of ethanol, in gallons.
T = Actual temperature of the batch, in [deg]F.

    (ii) For biodiesel (mono-alkyl esters), one of the following two
methods for biodiesel temperature standardization to 60 [deg]Fahrenheit
([deg]F ) shall be used:

(A) Vs,b = Va.b \*\ (-0.00045767 \*\ T +
1.02746025)

Where:

Vs,b = Standardized volume of biodiesel at 60 [deg]F, in
gallons.
Va,b = Actual volume of biodiesel, in gallons.
T = Actual temperature of the batch, in [deg]F.

    (B) The standardized volume of biodiesel at 60 [deg]F, in gallons,
as calculated from the use of the American Petroleum Institute Refined
Products Table 6B, as referenced in ASTM D 1250 (incorporated by
reference, see Sec.  80.1468).
    (iii) For other renewable fuels, an appropriate formula commonly

accepted by the industry shall be used to standardize the actual volume
to 60 [deg]F. Formulas used must be reported to EPA, and may be
determined to be inappropriate.
    (9) Use of radiocarbon dating test methods.
    (i) Parties may use a radiocarbon dating test method for
determination of the renewable fraction of a fuel R used to determine
VRIN as provided in paragraphs (f)(4) and (f)(5) of this
section.
    (ii) Parties must use Method B or Method C of ASTM D 6866
(incorporated by reference, see Sec.  80.1468), or an alternative test
method as approved by EPA.
    (iii) For each batch of fuel, the value of R must be based on:
    (A) A radiocarbon dating test of the batch of fuel produced; or
    (B) A radiocarbon dating test of a composite sample of previously
produced fuel, if all of the following conditions are met:
    (1) Based upon good engineering judgment, the renewable fraction of
the composite sample must be representative of the batch of fuel
produced.
    (2) The composite sample is comprised of a volume weighted
combination of samples from every batch of partially renewable
transportation fuel produced by the party over a period not to exceed
one calendar month, or more frequently if necessary to ensure that the
test results are representative of the renewable fraction of the
partially renewable fuel.
    (3) The composite sample must be well mixed prior to testing.
    (4) A volume of each composite sample must be retained for a
minimum of two years, and be of sufficient volume to permit two
additional tests to be conducted.
    (iv) If the party is using the composite sampling approach
according to paragraph (f)(9)(iii)(B) of this section, the party may
estimate the value of R for use in generating RINs in the first month
if all of the following conditions are met:
    (A) The estimate of R for the first month is based on information
on the composition of the feedstock;
    (B) The party calculates R in the second month based on the
application of a radiocarbon dating test on a composite sample pursuant
to (f)(9)(iii)(B) of this section; and
    (C) The party adjusts the value of R used to generate RINs in the
second month using the following formula:

Ri+1,adj = 2 x Ri+1,calc-Ri,est

Where:

Ri+1,adj = Adjusted value of R for use in generating RINs
in month the second month i+1.
Ri+1,calc = Calculated value of R in second month i+1 by
applying a radiocarbon dating test method to a composite sample of
fuel.
Ri,est = Estimate of R for the first month i.

    (10)(i) For purposes of this section, electricity and biogas used
as transportation fuel is considered renewable fuel and the producer
may generate RINs if all of the following apply:
    (A) The fuel is produced from renewable biomass and qualifies for a
D code in Table 1 to this section or has received approval for use of a
D code by the Administrator;
    (B) The renewable electricity, or biogas, is not placed in a
commercial distribution system along with fuels derived from
nonrenewable feedstocks; and
    (C) The fuel producer has entered into a written contract for the
sale and use as transportation fuel of a specific quantity of
electricity or biogas.
    (ii) Electricity that is generated by co-firing a combination of
renewable biomass and fossil fuel may generate RINs only for the
portion attributable to the renewable biomass portion, using the
procedure described in paragraph (f)(4) of this section.
    (11)(i) For purposes of this section, electricity and biogas that
is introduced into a commercial distribution system may be considered
renewable fuel and may qualify for RINs if:
    (A) The fuel is produced from renewable biomass and qualifies for a
D code in Table 1 of this section or has received approval for use of a
D code by the Administrator;
    (B) The fuel producer has entered into a written contract for the
sale of a specific quantity of fuel derived from renewable biomass
sources with a party that uses fuel taken from a commercial
distribution system for transportation purposes, and such fuel has been
introduced into that commercial distribution system (e.g., pipeline,
transmission line); and
    (C) The quantity of biogas or electricity for which RINs were
generated was sold to the transportation fueling facility and to no
other facility.
    (ii) Biogas that is introduced into a commercial distribution
system may qualify for RINs only for the volume of biogas that has been
gathered, processed, and injected into a common carrier pipeline:
    (A) The gas that is ultimately withdrawn from that pipeline for
transportation purposes is withdrawn in a manner and at a time
consistent with the transport of fuel between the injection and
withdrawal points; and
    (B) The volume and heat content of biogas injected into the
pipeline and the volume of gas used as transportation fuel are measured
by continuous metering.
    (iii) The fuel used for transportation purposes is considered
produced from renewable biomass only to the extent that:
    (A) The amount of fuel used at the transportation fueling facility
matches the amount of fuel derived from renewable biomass that the
producer contracted to have placed into the commercial distribution
system; and
    (B) No other party relied upon the contracted volume of biogas for
the creation of RINs.
    (iv) Electricity that is generated by co-firing a combination of
renewable biomass and fossil fuel may qualify for RINs only for the
portion attributable to the renewable biomass, using the procedure
described in paragraph (f)(4) of this section.
    (12)(i) For purposes of Table 1 to this section, process heat
produced from combustion of gas at a renewable fuel facility is
considered derived from biomass if the gas used for process heat is
biogas, and is generated at the facility or directly transported to the
facility and meets all of the following conditions:
    (A) The producer has entered into a written contract for the
procurement of a specific volume of biogas with a specific heat
content.
    (B) The volume of biogas was sold to the renewable fuel production
facility, and to no other facility.
    (C) The volume of biogas has been gathered, processed and injected
into a common carrier pipeline and the gas that is ultimately withdrawn
from that pipeline is withdrawn in a manner and at a time consistent
with the transport of fuel between the injection and withdrawal points.
    (D) The volume and heat content of biogas injected into the
pipeline and the volume of gas used as process heat are measured by
continuous metering.
    (E) The common carrier pipeline into which the biogas is placed
ultimately serves the producer's renewable fuel facility.
    (ii) The process heat produced from combustion of gas at a
renewable fuel facility described in (f)(12)(i) of this section shall
not be considered derived from biomass if any other party relied upon
the contracted volume of biogas for the creation of RINs.

Sec.  80.1427  How are RINs used to demonstrate compliance?

    (a) Renewable Volume Obligations.

    (1) Except as specified in paragraph (b) of this section or Sec.
80.1456, each party that is an obligated party under Sec.  80.1406 and
is obligated to meet the Renewable Volume Obligations under Sec.
80.1407, or is an exporter of renewable fuels that is obligated to meet
Renewable Volume Obligations under Sec.  80.1430, must demonstrate
pursuant to Sec.  80.1451(a)(1) that it is retiring for compliance
purposes a sufficient number of RINs to satisfy the following
equations:
    (i) Cellulosic biofuel.

([Sigma]RINNUM)CB,i + ([Sigma]RINNUM)CB,i-1 =
RVOCB,i

Where:

([Sigma]RINNUM)CB,i = Sum of all owned gallon-RINs that
are valid for use in complying with the cellulosic biofuel RVO, were
generated in year i, and are being applied towards the
RVOCB,i, in gallons.
([Sigma]RINNUM)CB,i-1 = Sum of all owned gallon-RINs that
are valid for use in complying with the cellulosic biofuel RVO, were
generated in year i-1, and are being applied towards the
RVOCB,i, in gallons.
RVOCB,i = The Renewable Volume Obligation for cellulosic
biofuel for the obligated party or renewable fuel exporter for
calendar year i, in gallons, pursuant to Sec.  80.1407 or Sec.
80.1430.

    (ii) Biomass-based diesel. Use the equation in this paragraph,
except as provided in paragraph (a)(7) of this section.

([Sigma]RINNUM)BBD,i + ([Sigma]RINNUM)BBD,i-1 =
RVOBBD,i

Where:

([Sigma]RINNUM)BBD,i = Sum of all owned gallon-RINs that
are valid for use in complying with the biomass-based diesel RVO,
were generated in year i, and are being applied towards the
RVOBBD,i, in gallons.
([Sigma]RINNUM)BBD,i-1 = Sum of all owned gallon-RINs
that are valid for use in complying with the biomass-based diesel
RVO, were generated in year i-1, and are being applied towards the
RVOBBD,i, in gallons.
RVOBBD,i = The Renewable Volume Obligation for biomass-
based diesel for the obligated party or renewable fuel exporter for
calendar year i after 2010, in gallons, pursuant to Sec.  80.1407 or
Sec.  80.1430.

    (iii) Advanced biofuel.

    ([Sigma]RINNUM)AB,i + ([Sigma]RINNUM)AB,i-1 =
RVOAB,i

Where:

([Sigma]RINNUM)AB,i = Sum of all owned gallon-RINs that
are valid for use in complying with the advanced biofuel RVO, were
generated in year i, and are being applied towards the
RVOAB,i, in gallons.
([Sigma]RINNUM)AB,i-1 = Sum of all owned gallon-RINs that
are valid for use in complying with the advanced biofuel RVO, were
generated in year i-1, and are being applied towards the
RVOAB,i, in gallons.
RVOAB,i = The Renewable Volume Obligation for advanced
biofuel for the obligated party or renewable fuel exporter for
calendar year i, in gallons, pursuant to Sec.  80.1407 or Sec.
80.1430.

    (iv) Renewable fuel.

([Sigma]RINNUM)RF,i + ([Sigma]RINNUM)RF,i-1 =
RVORF,i

Where:

([Sigma]RINNUM)RF,i = Sum of all owned gallon-RINs that
are valid for use in complying with the renewable fuel RVO, were
generated in year i, and are being applied towards the
RVORF,i, in gallons.
([Sigma]RINNUM)RF,i-1 = Sum of all owned gallon-RINs that
are valid for use in complying with the renewable fuel RVO, were
generated in year i-1, and are being applied towards the
RVORF,i, in gallons.
RVORF,i = The Renewable Volume Obligation for renewable
fuel for the obligated party or renewable fuel exporter for calendar
year i, in gallons, pursuant to Sec.  80.1407 or Sec.  80.1430.

    (2) Except as described in paragraph (a)(4) of this section, RINs
that are valid for use in complying with each Renewable Volume
Obligation are determined by their D codes.
    (i) RINs with a D code of 3 or 7 are valid for compliance with the
cellulosic biofuel RVO.
    (ii) RINs with a D code of 4 or 7 are valid for compliance with the
biomass-based diesel RVO.
    (iii) RINs with a D code of 3, 4, 5, or 7 are valid for compliance
with the advanced biofuel RVO.
    (iv) RINs with a D code of 3, 4, 5, 6, or 7 are valid for
compliance with the renewable fuel RVO.
    (3)(i) Except as provided in paragraph (a)(3)(ii) of this section,
a party may use the same RIN to demonstrate compliance with more than
one RVO so long as it is valid for compliance with all RVOs to which it
is applied.
    (ii) A cellulosic diesel RIN with a D code of 7 cannot be used to
demonstrate compliance with both a cellulosic biofuel RVO and a
biomass-based diesel RVO.
    (4) Notwithstanding the requirements of Sec.  80.1428(c) or
paragraph (a)(6)(i) of this section, for purposes of demonstrating
compliance for calendar years 2010 or 2011, RINs generated pursuant to
Sec.  80.1126 that have not been used for compliance purposes may be
used for compliance in 2010 or 2011, as follows, insofar as permissible
pursuant to paragraphs (a)(5) and (a)(7)(iii) of this section:
    (i) A RIN generated pursuant to Sec.  80.1126 with a D code of 2
and an RR code of 15 or 17 is deemed equivalent to a RIN generated
pursuant to Sec.  80.1426 having a D code of 4.
    (ii) A RIN generated pursuant to Sec.  80.1126 with a D code of 1
is deemed equivalent to a RIN generated pursuant to Sec.  80.1426
having a D code of 3.
    (iii) All other RINs generated pursuant to Sec.  80.1126 are deemed
equivalent to RINs generated pursuant to Sec.  80.1426 having D codes
of 6.
    (iv) A RIN generated pursuant to Sec.  80.1126 that was retired
pursuant to Sec.  80.1129(e) because the associated volume of fuel was
not used as motor vehicle fuel may be reinstated for use in complying
with a 2010 RVO pursuant to Sec.  80.1429(g).
    (5) The value of ([Sigma]RINNUM)i-1 may not exceed
values determined by the following inequalities except as provided in
paragraph (a)(7)(iii) of this section and Sec.  80.1442(d):

([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 paragraph (a)(7) of this section:
    (i) RINs may only be used to demonstrate compliance with the RVOs
for the calendar year in which they were generated or the following
calendar year.
    (ii) RINs used to demonstrate compliance in one year cannot be used
to demonstrate compliance in any other year.
    (7) Biomass-based diesel in 2010.
    (i) Prior to determining compliance with the 2010 biomass-based
diesel RVO, obligated parties may reduce the value of
RVOBBD,2010 by an amount equal to the sum of all 2008 and
2009 RINs that they used for compliance purposes for calendar year 2009
which have a D code of 2 and an RR code of 15 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 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) 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) or (a)(7) 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)(7) of this section
for calendar year i is permitted to carry a deficit into year i+1 under
the following conditions:
    (i) The party did not carry a deficit into calendar year i from
calendar year i-1 for the same RVO.
    (ii) The party subsequently meets the requirements of paragraph
(a)(1) of this section for calendar year i+1 and carries no deficit
into year i+2 for the same RVO.
    (iii) For compliance with the biomass-based diesel RVO in calendar
year 2011, the deficit which is carried over from 2010 is no larger
than 57% of the party's 2010 biomass-based diesel RVO as determined
prior to any adjustment applied pursuant to paragraph (a)(7)(i) of this
section.
    (iv) The party uses the same compliance approach in year i+1 as it
did in year i, as provided in Sec.  80.1406(c)(2).
    (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 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.
    (1) 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.
    (2) Except as provided in Sec.  80.1429, no person 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 person without
simultaneously transferring a volume of renewable fuel to that same
person.
    (4) No more than 2.5 assigned gallon-RINs with a K code of 1 can be
transferred to another person with every gallon of renewable fuel
transferred to that same person.
    (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 person: