40 C.F.R. § 80.1407

Current through November 30, 2024

Section 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.

RVO_CB,i = (RFStd_CB,i * (GV_i + DV_i)) + D_CB,i-1

Where:

RVO_CB,i = The Renewable Volume Obligation for cellulosic biofuel for an obligated party for calendar year i, in gallons.

RFStd_CB,i = The standard for cellulosic biofuel for calendar year i, determined by EPA pursuant to § 80.1405 , in percent.

GV_i = 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 covered location by an obligated party in calendar year i, in gallons.

DV_i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the covered location by an obligated party in calendar year i, in gallons.

D_CB,i-1 = Deficit carryover from the previous year for cellulosic biofuel, in gallons.

(2)Biomass-based diesel.

RVO_BBD,i = (RFStd_BBD,i * (GV_i + DV_i)) + D_BBD,i-1

Where:

RVO_BBD,i = The Renewable Volume Obligation for biomass-based diesel for an obligated party for calendar year i, in gallons.

RFStd_BBD,i = The standard for biomass-based diesel for calendar year i, determined by EPA pursuant to § 80.1405 , in percent.

GV_i = 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 covered location by an obligated party in calendar year i, in gallons.

DV_i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the covered location by an obligated party in calendar year i, in gallons.

D_BBD,i-1 = Deficit carryover from the previous year for biomass-based diesel, in gallons.

(3)Advanced biofuel.

RVO_AB,i = (RFStd_AB,i * (GV_i + DV_i)) + D_AB,i-1

Where:

RVO_AB,i = The Renewable Volume Obligation for advanced biofuel for an obligated party for calendar year i, in gallons.

RFStd_AB,i = The standard for advanced biofuel for calendar year i, determined by EPA pursuant to § 80.1405 , in percent.

GV_i = 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 covered location by an obligated party in calendar year i, in gallons.

DV_i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the covered location by an obligated party in calendar year i, in gallons.

D_AB,i-1 = Deficit carryover from the previous year for advanced biofuel, in gallons.

(4)Renewable fuel.

RVO_RF,i = (RFStd_RF,i * (GV_i + DV_i)) + D_RF,i-1

Where:

RVO_RF,i = The Renewable Volume Obligation for renewable fuel for an obligated party for calendar year i, in gallons.

RFStd_RF,i = The standard for renewable fuel for calendar year i, determined by EPA pursuant to § 80.1405 , in percent.

GV_i = 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 covered location by an obligated party in calendar year i, in gallons.

DV_i = The non-renewable diesel volume, determined in accordance with paragraphs (d), (e), and (f) of this section, produced in or imported into the covered location by an obligated party in calendar year i, in gallons.

D_RF,i-1 = Deficit carryover from the previous year for renewable fuel, in gallons.

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

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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.

G_X = Volume of batch x of gasoline produced or imported, per 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.

RBG_y = 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, pentane, 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, DV_i, for an obligated party for a given year as specified in paragraph (a) of this section is calculated as follows:

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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.

D_X = Volume of batch x of diesel produced or imported, per 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.

RBD_y = 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 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. Renewable fuel for which a RIN is invalidly generated under § 80.1431 may not be excluded from a party's renewable volume obligations.

(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 § 80.1443 .

(4) Gasoline or diesel fuel produced by a small refinery that has an exemption under § 80.1441 or an approved small refiner that has an exemption under § 80.1442 .

(5) Gasoline or diesel fuel exported for use outside the covered location, 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 § 80.1443 .

(6) For blenders, the volume of finished gasoline, finished diesel fuel, RBOB, or CBOB to which a blender adds blendstocks.

(7) Transmix gasoline product (as defined in 40 CFR 1090.80 ) and transmix distillate product (as defined in 40 CFR 1090.80 ) produced by a transmix processor, and transmix blended into gasoline or diesel fuel by a transmix blender under 40 CFR 1090.500 .

(8) Any gasoline or diesel fuel that is not transportation fuel.

(9) Distillate fuel with a sulfur content greater than 15 ppm that is clearly designated for a use other than transportation fuel, such as heating oil or ECA marine fuel.

(10) Distillate fuel that meets a 15 ppm sulfur standard, is designated for non-transportation use, and that remains completely segregated from MVNRLM diesel fuel from the point of production through to the point of use for a non-transportation purpose, such as heating oil or ECA marine fuel.

(11) Certified NTDF, if the refiner or importer has a reasonable expectation that the fuel will be used for non-transportation purposes. To establish a reasonable expectation that the fuel will be used for non-transportation purposes, a refiner or importer must, at a minimum, be able to demonstrate that they supply areas that use heating oil, ECA marine fuel, or 15 ppm distillate fuel for non-transportation purposes in quantities that are consistent with past practices or changed circumstances. EPA may consider any other relevant information, including the price of the fuel, in assessing whether a refiner or importer has a reasonable expectation that the fuel will be used for non-transportation purposes.

40 C.F.R. §80.1407

75 FR 14863 , Mar. 26, 2010, as amended at 79 FR 23655 , Apr. 28, 2014; 85 FR 7074 , Feb. 6, 2020; 85 FR 78467 , Dec. 4, 2020; 87 FR 39661 , July 1, 2022; 88 FR 44581 , July 12, 2023

85 FR 7074 , 4/6/2020; 85 FR 78467 , 1/1/2021; 87 FR 39661 , 8/30/2022; 88 FR 44581 , 9/11/2023