40 CFR § 80.1427 - How are RINs used to demonstrate compliance?
(a) Obligated party renewable volume obligations.
(1) Except as specified in paragraph (b) of this section or § 80.1456, each party that is an obligated party and is obligated to meet the Renewable Volume Obligations under § 80.1407 must demonstrate pursuant to § 80.1451(a)(1) that it has retired for compliance purposes a sufficient number of RINs to satisfy the following equations:
(i) Cellulosic biofuel.
(ii) Biomass-based diesel. Except as provided in paragraph (a)(7) of this section,
(iii) Advanced biofuel.
(iv) Renewable fuel.
(2) RINs that are valid for use in complying with each Renewable Volume Obligation are determined by their D codes.
(i) RINs with a D code of 3 or 7 are valid for compliance with the cellulosic biofuel RVO.
(ii) RINs with a D code of 4 or 7 are valid for compliance with the biomass-based diesel RVO.
(iii) RINs with a D code of 3, 4, 5, or 7 are valid for compliance with the advanced biofuel RVO.
(iv) RINs with a D code of 3, 4, 5, 6, or 7 are valid for compliance with the renewable fuel RVO.
(3)
(i) Except as provided in paragraph (a)(3)(ii) of this section, a party may use the same RIN to demonstrate compliance with more than one RVO so long as it is valid for compliance with all RVOs to which it is applied.
(ii) A cellulosic diesel RIN with a D code of 7 cannot be used to demonstrate compliance with both a cellulosic biofuel RVO and a biomass-based diesel RVO.
(4) [Reserved]
(5) The value of (ΣRINNUM)i-1 may not exceed values determined by the following inequalities except as provided in paragraph (a)(7)(iii) of this section and § 80.1442(d)
(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, 16, or 17.
(ii) For calendar year 2010 only, the following equation shall be used to determine compliance with the biomass-based diesel RVO instead of the equation in paragraph (a)(1)(ii) of this section
(iii) The values of (ΣRINNUM)2008 and (ΣRINNUM)2009 may not exceed values determined by both of the following inequalities
(8) A party may only use a RIN for purposes of meeting the requirements of paragraph (a)(1) or (a)(7) of this section if that RIN is a separated RIN with a K code of 2 obtained in accordance with §§ 80.1428 and 80.1429.
(9) The number of gallon-RINs associated with a given batch-RIN that can be used for compliance with the RVOs shall be calculated from the following formula:
(b) Deficit carryovers.
(1) An obligated party that fails to meet the requirements of paragraph (a)(1) or (a)(7) of this section for calendar year i is permitted to carry a deficit into year i + 1 under the following conditions:
(i) The party did not carry a deficit into calendar year i from calendar year i-1 for the same RVO.
(ii) The party subsequently meets the requirements of paragraph (a)(1) of this section for calendar year i + 1 and carries no deficit into year i + 2 for the same RVO.
(iii) For compliance with the biomass-based diesel RVO in calendar year 2011, the deficit which is carried over from 2010 is no larger than 57% of the party's 2010 biomass-based diesel RVO as determined prior to any adjustment applied pursuant to paragraph (a)(7)(i) of this section.
(iv) The party uses the same compliance approach in year i + 1 as it did in year i, as provided in § 80.1406(c)(2).
(2) A deficit is calculated according to the following formula:
(c) Exporter Renewable Volume Obligations (ERVOs).
(1) Each exporter of renewable fuel that is obligated to meet Exporter Renewable Volume Obligations under § 80.1430 must demonstrate pursuant to § 80.1451(a)(1) that is has retired for compliance purposes a sufficient number of RINs to meet its ERVOs by the deadline specified in § 80.1430(f).
(2) In fulfillment of its ERVOs, each exporter of renewable fuel is subject to the provisions of paragraphs (a)(2), (3), (6), and (8) of this section.
(3) No more than 20 percent of the ERVO calculated according to a formula at § 80.1430(b) may be fulfilled using RINs generated in the year prior to the year in which the RVO was incurred.