40 C.F.R. § 80.1426

Current through November 30, 2024
Section 80.1426 - How are RINs generated and assigned to batches of renewable fuel?
(a)General requirements.
(1) Renewable fuel producers, importers of renewable fuel, and other parties allowed to generate RINs under this part may only generate RINs to represent renewable fuel if they meet the requirements of paragraphs (b) and (c) of this section and if all the following occur:
(i) The fuel qualifies for a D code pursuant to § 80.1426(f) , or the EPA has approved a petition for use of a D code pursuant to § 80.1416 .
(ii) The fuel is demonstrated to be produced from renewable biomass pursuant to the reporting requirements of § 80.1451 and the recordkeeping requirements of § 80.1454 .
(A) Feedstocks meeting the requirements of renewable biomass through the aggregate compliance provision at § 80.1454(g) are deemed to be renewable biomass.
(B) [Reserved]
(iii) The fuel was produced in compliance with the registration requirements of § 80.1450 , the reporting requirements of § 80.1451 , the recordkeeping requirements of § 80.1454 , all conditions set forth in an approval document for a pathway petition submitted under § 80.1416 , and all other applicable regulations of this subpart M.
(iv) The fuel is designated on a product transfer document (PTD) for use as transportation fuel, heating oil, or jet fuel in accordance with § 80.1453(a)(12) .
(2) To generate RINs for imported renewable fuel, including any renewable fuel contained in imported transportation fuel, heating oil, or jet fuel, importers must obtain information from a non-RIN-generating foreign renewable fuel producer that is registered pursuant to § 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 § 80.1425(a) and paragraph (f) of this section.
(4) Where a feedstock or biointermediate is used to produce renewable fuel and is not entirely renewable biomass, RINs may only be generated for the portion of fuel that is derived from renewable biomass, as calculated under paragraph (f)(4) of this section.
(b)Regional applicability.
(1) Except as provided in paragraph (c) of this section, a RIN may only 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 covered location.
(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 § 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) No person may generate RINs for fuel that does not satisfy the requirements of paragraph (a)(1) of this section.
(2) A party must not generate RINs for renewable fuel that is not produced for use in the covered location.
(3) [Reserved]
(4) Importers shall not generate RINs for renewable fuel imported from a non-RIN-generating foreign renewable fuel producer unless the foreign renewable fuel producer is registered with EPA as required in § 80.1450 .
(5) Importers shall not generate RINs for renewable fuel that has already been assigned RINs by a RIN-generating foreign renewable fuel producer.
(6) A party is prohibited from generating RINs for a volume of fuel that it produces if the fuel has been produced by a process that uses a renewable fuel as a feedstock, and the renewable fuel that is used as a feedstock was produced by another party, except that RINs may be generated for such fuel if allowed by the EPA in response to a petition submitted pursuant to § 80.1416 and the petition approval specifies a mechanism to prevent double counting of RINs or where RINs are generated for RNG.
(7) For renewable fuel oil that is heating oil as defined in paragraph (2) of the definition of heating oil in § 80.2 , renewable fuel producers and importers shall not generate RINs unless they have received affidavits from the final end user or users of the fuel oil as specified in § 80.1451(b)(1)(ii)(T) (2).
(8) RINs must not be generated for a biointermediate.
(d)
(1)Definition of batch. For the purposes of this section and § 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 § 80.1425 . Biogas producers and RNG producers must use the definitions of batch for biogas and RNG in §§ 80.105(j) and 80.110(j) , respectively.
(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 VRIN determined pursuant to paragraph (f) of this section.
(iii) Under § 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) Except as provided in paragraph (g) of this section for delayed RINs, the producer or importer of renewable fuel must assign all RINs generated from a specific batch of renewable fuel to that batch 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 § 80.1428(a) .
(3) All assigned RINs shall have a K code value of 1.
(f)Generation of RINs -
(1)Applicable pathways.
(i) D codes must be used in RINs generated by producers or importers of renewable fuel according to approved pathways or as specified in paragraph (f)(6) of this section.
(ii) 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.
(iii) Tables 1 and 2 to this section do not apply to, and impose no requirements with respect to, volumes of fuel for which RINs are generated pursuant to paragraph (f)(6) of this section.
(iv) Pathways in Table 1 to this section and advanced technologies in Table 2 to this section also apply in cases where the renewable fuel producer is using a biointermediate.
(v) For the purposes of identifying the appropriate pathway in Table 1 to this section, biointermediates used for the production of renewable fuel are considered to be equivalent to the renewable biomass from which they were derived, with the following exceptions:
(A) Oil that is physically separated from any woody or herbaceous biomass and used to produce renewable fuel shall not generate D-code 3 or 7 RINs.
(B) Sugar or starch that is physically separated from cellulosic biomass and used to produce renewable fuel shall not generate D-code 3 or 7 RINs.
(vi) If a renewable fuel producer uses a biointermediate for the production of renewable fuel, additional requirements apply to both the renewable fuel producer and the biointermediate producer as described in § 80.1476 .
(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 = EqV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

Vs = Standardized volume of the batch of renewable fuel at 60 °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 the approved pathway that 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 the approved pathways that 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 = EqV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

Vs = Standardized volume of the batch of renewable fuel at 60 °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](EqVi * Vs,i)

Where:

VRIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.

EqVi = Equivalence value for fuel type i in the batch of renewable fuel per § 80.1415 .

Vs,i = Standardized volume of fuel type i in the batch of renewable fuel at 60 °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 = EqV * 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.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

Vs = Standardized volume of the batch of renewable fuel at 60 °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 must be calculated for each category of renewable fuel according to the following formula. All batch-RINs thus generated must be assigned to unique batch identifiers for each portion of the batch with a different D code.

VRIN,DX = EqVDX * VS,DX

Where:

VRIN,DX = RIN volume, in gallons, for use in determining the number of gallon-RINs that must be generated for the portion of the batch with a D code of X.

EqVDX = Equivalence value for the portion of the batch with a D code of X, per § 80.1415 .

VS,DX = Standardized volume at 60 °F of the portion of the batch that must be assigned a D code of X, in gallons, per paragraph (f)(8) of this section.

(vi)
(A) If a producer produces a single type of renewable fuel using two or more different feedstocks that are processed simultaneously, and each batch is comprised of a single type of fuel, then the number of gallon-RINs that must be generated for a batch of renewable fuel and assigned a particular D code must be calculated as follows:

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Where:

VRIN,DX = RIN volume, in gallons, for use in determining the number of gallon-RINs that must be generated for a batch of renewable fuel with a D code of X.

EqV = Equivalence value for the renewable fuel per § 80.1415 .

VS = Standardized volume of the batch of renewable fuel at 60 °F, in gallons, per paragraph (f)(8) of this section.

FEDX = The total feedstock energy from all feedstocks whose pathways have been assigned a D code of X, in Btu HHV, per paragraphs (f)(3)(vi)(B) and (C) of this section.

FEtotal = The total feedstock energy from all feedstocks, in Btu HHV, per paragraphs (f)(3)(vi)(B) and (C) of this section.

(B) Except for biogas produced from anaerobic digestion, the feedstock energy value of each feedstock must be calculated as follows:

FEDX,i = Mi * (1-mi) * CFi

Where:

FEDX,i = The amount of energy from feedstock i that forms energy in the renewable fuel and whose pathway has been assigned a D code of X, in Btu HHV.

Mi = Mass of feedstock i, in pounds, measured on a daily or per-batch basis.

mi = Average moisture content of feedstock i, as a mass fraction.

CFi = Converted fraction in annual average Btu HHV/lb, except as otherwise provided by § 80.1451(b)(1)(ii)(U) , representing that portion of feedstock i that is converted to fuel by the producer.

(C) For biogas produced from anaerobic digestion, the volume of biogas must be measured under § 80.105(f) and the feedstock energy value of each feedstock must be calculated as specified in § 80.105(j) by substituting "feedstock energy" for "batch volume of biogas" in all cases.
(4)Renewable fuel that is produced by co-processing renewable biomass (including a biointermediate) and non-renewable feedstocks simultaneously to produce a fuel that is partially renewable.
(i) The number of gallon-RINs that shall be generated for a batch of partially renewable 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 = EqV * 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.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 , subject to qualification in paragraph (f)(4)(iii) of this section.

Vs = Standardized volume of the batch of renewable fuel at 60 °F, in gallons, calculated in accordance with paragraph (f)(8) of this section.

FER = Feedstock energy from renewable biomass (including the renewable portion of a biointermediate) used to make the transportation fuel, in Btu.

FENR = Feedstock energy from non-renewable feedstocks (including the non-renewable portion of a biointermediate) used to make the transportation fuel, heating oil, or jet 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, except as otherwise provided by § 80.1451(b)(1)(ii)(U) , representing that portion of the feedstock that is converted into transportation fuel, heating oil, or jet 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 = EqV * Vs * R

Where:

VRIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 , subject to qualification in paragraph (f)(4)(iii) of this section.

Vs = Standardized volume of the batch of renewable fuel at 60 °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, heating oil, or jet fuel shall be the D code specified in the approved pathway that corresponds to the pathway that describes a producer's operations. In determining the appropriate pathway, the contribution of non-renewable feedstocks to the production of partially renewable fuel shall be ignored.
(iii) In determining the RIN volume VRIN according to paragraph (f)(4)(i)(A) or (f)(4)(i)(B) of this section, the equivalence value used to determine VRIN which is calculated according to § 80.1415 shall use a value of 1.0 to represent R, the renewable content of the renewable fuel.
(iv) RIN-generating parties must calculate RIN volume VRIN for co-processed fuels produced from a biointermediate as described in paragraph (f)(4)(i)(B) of this section and calculate the renewable fraction of a fuel R using one of the following:
(A) Method B of ASTM D6866 (incorporated by reference, see § 80.12 ) as described in paragraph (f)(9)(ii) of this section.
(B) If the renewable content of the co-processed fuel is 10 percent or greater, Method C of ASTM D6866 as described in paragraph (f)(9)(ii) of this section.
(C) Any other EPA-approved method under paragraph (f)(9)(ii) of this section.
(5)Renewable fuel produced from separated yard waste, separated food waste, and separated MSW.
(i)
(A) Separated yard waste is deemed to be composed entirely of cellulosic materials.
(B) Separated food waste is 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.
(ii)
(A) A feedstock qualifies as separated yard waste or separated food waste only if it is collected according to a plan submitted to and accepted by EPA under the registration procedures specified in § 80.1450(b)(1)(vii) .
(B) A feedstock qualifies as separated MSW only if it is collected according to a plan submitted to and approved by EPA.
(iii) Separation and recycling actions for separated MSW 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 § 80.1450(b)(1) (viii); and
(B) The fuel producer has evidence of all contracts relating to the disposition of 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 shall be equal to a volume VRIN and is calculated according to the following formula:

VRIN = EqV * 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.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

Vs = Standardized volume of the batch of renewable fuel at 60 °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 shall be equal to a volume VRIN and is calculated according to the following formula:

VRIN = EqV * 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.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

VS = Standardized volume of the batch of renewable fuel at 60 °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 shall be determined according to the following formula:

VRIN = EqV * 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.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

VS = Standardized volume of the batch of renewable fuel at 60 °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, except that for biogas-derived renewable fuel made from separated MSW, no testing is required and R = 1.

(6)Renewable fuel not covered by an approved pathway. If no approved pathway applies to a producer's operations, the party may generate RINs if the fuel from its facility is produced from renewable biomass and qualifies for an exemption under § 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 § 80.1403 shall be equal to a volume calculated according to the following formula:

VRIN = EqV * Vs

Where:

VRIN = RIN volume, in gallons, for use in determining the number of gallon-RINs that shall be generated for the batch.

EqV = Equivalence value for the batch of renewable fuel per § 80.1415 .

Vs = Standardized volume of the batch of renewable fuel at 60 °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 E870 or ASTM E711 for gross calorific value (both incorporated by reference, see § 80.12 ).
(B) ASTM D4442 or ASTM D4444 for moisture content (both incorporated by reference, see § 80.12 ).
(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 °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 °F, in gallons.

Va,e = Actual volume of ethanol, in gallons.

T = Actual temperature of the batch, in °F.

(ii) For biodiesel, one of the following two methods for biodiesel temperature standardization to 60 °Fahrenheit (°F) shall be used
(A) Vs,b = Va.b * (-0.00045767 * T + 1.02746025)

Where

Vs,b = Standardized volume of biodiesel at 60 °F, in gallons.

Va,b = Actual volume of biodiesel, in gallons.

T = Actual temperature of the batch, in °F.

(B) The standardized volume of biodiesel at 60 °F, in gallons, as calculated from the use of the American Petroleum Institute Refined Products Table 6B, as referenced in ASTM D1250 (incorporated by reference, see § 80.12 ).
(iii) For other renewable fuels, an appropriate formula commonly accepted by the industry shall be used to standardize the actual volume to 60 °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 D6866 (incorporated by reference, see § 80.12 ), 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 * 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 that is only distributed via a closed, private, non-commercial system is considered renewable fuel and RINs may be generated if all of the following apply:
(A) The electricity 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 EPA.
(B) The RIN generator has documentation for the sale, if applicable, and use of a specific quantity of renewable electricity as transportation fuel, or has obtained affidavits from all parties selling or using the electricity as transportation fuel.
(C) The electricity is used as a transportation fuel and for no other purposes.
(ii) RIN generators may only generate RINs for renewable CNG/LNG produced from biogas that is distributed via a closed, private, non-commercial system if all the following requirements are met:
(A) The renewable CNG/LNG was produced from renewable biomass under an approved pathway.
(B) The RIN generator has entered into a written contract for the sale or use of a specific quantity of renewable CNG/LNG for use as transportation fuel, or has obtained affidavits from all parties selling or using the renewable CNG/LNG as transportation fuel.
(C) The renewable CNG/LNG was used as transportation fuel and for no other purpose.
(D) The biogas was introduced into the closed, private, non-commercial system no later and the renewable CNG/LNG produced from the biogas was used as transportation fuel no later than December 31, 2024.
(E) RINs may only be generated on biomethane content of the renewable CNG/LNG used as transportation fuel.
(iii) A producer of 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, using the procedure described in paragraph (f)(4) of this section.
(11)
(i) For purposes of this section, electricity that is introduced into a commercial distribution system (transmission grid) is considered renewable fuel for which RINs may be generated if all of the following apply:
(A) The electricity 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 EPA.
(B) The RIN generator has documentation for the sale and use of a specific quantity of renewable electricity as transportation fuel, or has obtained affidavits from all parties selling or using the electricity as transportation fuel.
(C) The quantity of electricity for which RINs were generated was sold for use as transportation fuel and for no other purpose.
(D) The renewable electricity was loaded onto and withdrawn from a physically connected transmission grid.
(E) The amount of electricity sold for use as transportation fuel corresponds to the amount of electricity derived from biogas that was placed into the commercial distribution system.
(F) No other party relied upon the renewable electricity for the creation of RINs.
(ii) RINs for renewable CNG/LNG produced from RNG that is introduced into a commercial distribution system may only be generated if all the following requirements are met:
(A) The renewable CNG/LNG was produced from renewable biomass and qualifies for a D code in an approved pathway.
(B) The RIN generator has entered into a written contract for the sale or use of a specific quantity of RNG, taken from a commercial distribution system (e.g., physically connected pipeline, barge, truck, rail), for use as transportation fuel, or has obtained affidavits from all parties selling or using the RNG taken from a commercial distribution system as transportation fuel.
(C) The renewable CNG/LNG produced from the RNG was sold for use as transportation fuel and for no other purpose.
(D) The RNG was injected into and withdrawn from the same commercial distribution system.
(E) The RNG was withdrawn from the commercial distribution system in a manner and at a time consistent with the transport of the RNG between the injection and withdrawal points.
(F) The volume of RNG injected into the commercial distribution system and the volume of RNG withdrawn are measured by continuous metering.
(G) The volume of renewable CNG/LNG sold for use as transportation fuel corresponds to the volume of RNG that was injected into and withdrawn from the commercial distribution system.
(H) No other party relied upon the volume of biogas, RNG, or renewable CNG/LNG for the generation of RINs.
(I) The RNG was introduced into the commercial distribution system no later than December 31, 2024, and the renewable CNG/LNG was used as transportation fuel no later than December 31, 2024.
(J) RINs may only be generated on biomethane content of the biogas, treated biogas, RNG, or renewable CNG/LNG.
(K)
(1) On or after January 1, 2025, RINs may only be generated for RNG injected into a natural gas commercial pipeline system for use as transportation fuel as specified in subpart E of this part.
(2) RINs may be generated for RNG as specified in subpart E of this part prior to January 1, 2025, if all applicable requirements under this part are met.
(iii) For renewable electricity that is generated by co-firing a combination of renewable biomass and fossil fuel, the producer may generate RINs only for the portion attributable to the renewable biomass, using the procedure described in paragraph (f)(4) of this section.
(12) Process heat produced from combustion of biogas or RNG at a renewable fuel production facility is considered "derived from biomass" under an approved pathway if all the following requirements are met, as applicable:
(i) For biogas transported to the renewable fuel production facility via a biogas closed distribution system:
(A) The renewable fuel 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 injected into the biogas closed distribution system and the volume of biogas used as process heat were measured under § 80.155 .
(ii) For RNG injected into a natural gas commercial pipeline system prior to July 1, 2024:
(A) The producer has entered into a written contract for the procurement of a specific volume of RNG with a specific heat content.
(B) The volume of RNG was sold to the renewable fuel production facility, and to no other facility.
(C) The volume of RNG was withdrawn from the natural gas commercial pipeline system in a manner and at a time consistent with the transport of RNG between the injection and withdrawal points.
(D) The volume of RNG injected into the natural gas commercial pipeline system and the volume of RNG withdrawn were measured under § 80.155 .
(E) The natural gas commercial pipeline system into which the RNG was injected ultimately serves the renewable fuel production facility.
(iii) Process heat produced from combustion of biogas or RNG is not considered produced from renewable biomass if any other party relied upon the volume of biogas or RNG for the generation of RINs.
(iv) For RNG used as process heat on or after July 1, 2024, the renewable fuel producer must retire RINs for RNG as specified in § 80.125(e) .
(13) In order for a renewable fuel production facility to satisfy the requirements of the advanced biofuel grain sorghum pathway, all the following requirements must be met:
(i) The quantity of electricity used at the site that is purchased from the grid must be measured and recorded by continuous metering.
(ii) All electricity used on-site that is not purchased from the grid must be produced on-site from biogas from landfills, waste treatment plants, and/or waste digesters.
(iii) For biogas transported to the renewable fuel production facility via a biogas closed distribution system and used as process energy, the requirements in paragraph (f)(12)(i) of this section must be met.
(iv)
(A) For RNG injected into a commercial distribution system prior to July 1, 2024, and used as process energy, the requirements in paragraph (f)(12)(ii) of this section must be met.
(B) For RNG injected into a natural gas commercial pipeline system on or after July 1, 2024, and used as process energy, the renewable fuel producer must retire RINs for RNG as specified in § 80.125(e) .
(v) The biogas or RNG used as process energy at the renewable fuel production facility is not considered "produced from renewable biomass" under an approved pathway if any other party relied upon the volume of biogas or RNG for the generation of RINs.
(14) A producer or importer of renewable fuel using giant reed (Arundo donax) or napier grass (Pennisetum purpureum) as a feedstock may generate RINs for that renewable fuel if:
(i) The feedstock is produced, managed, transported, collected, monitored, and processed according to a Risk Mitigation Plan approved by EPA under the registration procedures specified in § 80.1450(b)(1)(x)(A) ; or,
(ii) EPA has determined that there is not a significant likelihood of spread beyond the planting area of the feedstock used for production of the renewable fuel. Any determination that Arundo donax or Pennisetum purpureum does not present a significant likelihood of spread beyond the planting area must be based upon clear and compelling evidence, including information and supporting data submitted by the producer. Such a determination must be made by EPA as specified in § 80.1450(b)(1)(x)(B) .
(15)Application of formulas in paragraph (f)(3)(vi) of this section to certain producers generating D3 or D7 RINs. If a producer seeking to generate D code 3 or 7 RINs produces a single type of renewable fuel using two or more feedstocks or biointermediates converted simultaneously, and at least one of the feedstocks or biointermediates does not have a minimum 75% average adjusted cellulosic content, one of the following additional requirements apply:
(i) If the producer is using a thermochemical process to convert cellulosic biomass into cellulosic biofuel, the producer is subject to additional registration requirements under § 80.1450(b)(1) (xiii)(A).
(ii) If the producer is using any process other than a thermochemical process, or is using a combination of processes, the producer is subject to additional registration requirements under § 80.1450(b)(1) (xiii)(B) or (C), and reporting requirements under § 80.1451(b)(1)(ii)(U) , as applicable.
(16)Renewable fuel produced from crop residue. Producers generating RINs for qualifying renewable fuel utilizing crop residue as feedstock under Pathway K or Pathway L must meet all of the following conditions (in addition to any other applicable requirements):
(i) Registration requirements under § 80.1450(b)(1)(xv) .
(ii) Reporting requirements under § 80.1451(b)(1)(ii)(V) .
(iii) Recordkeeping requirements under § 80.1454(n) .
(17)Qualifying use demonstration for certain renewable fuels. For purposes of this section, any renewable fuel other than ethanol, biodiesel, renewable gasoline, or renewable diesel that meets the Grade No. 1-D or No. 2-D specification in ASTM D975 (incorporated by reference, see § 80.12 ) is considered renewable fuel and the producer or importer may generate RINs for such fuel only if all the following apply:
(i) The fuel is produced from renewable biomass and qualifies to generate RINs under an approved pathway.
(ii) The fuel producer or importer maintains records demonstrating that the fuel was produced for use as a transportation fuel, heating oil or jet fuel by any of the following:
(A) Blending the renewable fuel into gasoline or distillate fuel to produce a transportation fuel, heating oil, or jet fuel that meets all applicable standards under this part and 40 CFR part 1090.
(B) Entering into a written contract for the sale of the renewable fuel, which specifies the purchasing party must blend the fuel into gasoline or distillate fuel to produce a transportation fuel, heating oil, or jet fuel that meets all applicable standards under this part and 40 CFR part 1090.
(C) Entering into a written contract for the sale of the renewable fuel, which specifies that the fuel must be used in its neat form as a transportation fuel, heating oil or jet fuel that meets all applicable standards.
(ii) The fuel was sold for use in or as a transportation fuel, heating oil, or jet fuel, and for no other purpose.
(g)Delayed RIN generation.
(1) Parties who produce or import renewable fuel may elect to generate delayed RINs to represent renewable fuel volumes that have already been transferred to another party if those renewable fuel volumes meet all of the following requirements.
(i) The renewable fuel volumes can be described by a new approved pathway that was added after July 1, 2010.
(A) For new pathways that EPA approves in response to petitions submitted pursuant to § 80.1416 , complete petitions must be received by EPA by January 31, 2011.
(B) [Reserved]
(ii) The renewable fuel volumes can be described by a pathway that:
(A) Is biodiesel that is made from canola oil through transesterification using natural gas or biomass for process energy; or
(B) EPA has determined was in use as of July 1, 2010, for the primary purpose of producing transportation fuel, heating oil, or jet fuel for commercial sale.
(iii) The renewable fuel volumes were not designated or intended for export from the covered location by the renewable fuel producer or importer, and the producer or importer of the renewable fuel volumes does not know or have reason to know that the volumes were exported from the covered location.
(2) When a new approved pathway is added, EPA will specify in its approval action the effective date on which the new pathway becomes valid for the generation of RINs and whether the fuel in question meets the requirements of paragraph (g)(1)(ii) of this section.
(i) The effective date for the pathway describing biodiesel that is made from canola oil through transesterification using natural gas or biomass for process energy is September 28, 2010.
(ii) [Reserved]
(3) Delayed RINs can only be generated to represent renewable fuel volumes produced in the covered location or imported into the covered location between July 1, 2010, and the earlier of either of the following dates:
(i) The effective date (identified pursuant to paragraph (g)(2) of this section) of the new pathway through which the fuel in question was produced; or
(ii) December 31, 2011.
(4) Delayed RINs must be generated no later than 60 days after the effective date (identified pursuant to paragraph (g)(2) of this section) of the pathway by which the fuel in question was produced.
(5) A party authorized pursuant to paragraph (g)(1) of this section to generate delayed RINs, and electing to do so, who generated RINs pursuant to 80.1426(f)(6) for fuel produced through a pathway described in paragraph (g)(1) of this section, and transferred those RINs with renewable fuel volumes between July 1, 2010 and the effective date (identified pursuant to paragraph (g)(2) of this section) of that pathway, must retire a number of gallon-RINs prior to generating delayed RINs.
(i) The number of gallon-RINs retired by a party pursuant to this paragraph must not exceed the number of gallon-RINs originally generated by the party to represent fuel described in paragraph (g)(1) of this section that was produced in the covered location or imported into the covered location, and transferred to another party, between July 1, 2010 and the earlier of either of the following dates:
(A) The effective date (identified pursuant to paragraph (g)(2) of this section) of the new pathway through which the fuel in question was produced; or
(B) December 31, 2011.
(ii) Retired RINs must have a D code of 6.
(iii) Retired RINs must have a K code of 2.
(iv) Retired RINs must have been generated in the same year as the gallon-RINs originally generated by the party to represent fuel described in paragraph (g)(1) of this section.
(A) For gallon-RINs originally generated in 2010 to represent fuel described in paragraph (g)(1) of this section, the generation year of retired RINs shall be 2010.
(B) For gallon-RINs originally generated in 2011 to represent fuel described in paragraph (g)(1) of this section, the generation year of retired RINs shall be 2011.
(6) For parties that retire RINs pursuant to paragraph (g)(5) of this section, the number of delayed gallon-RINs generated shall be equal to the number of gallon-RINs retired in accordance with paragraph (g)(5) of this section.
(7) A party authorized pursuant to paragraph (g)(1) of this section to generate delayed RINs, and electing to do so, who did not generate RINs pursuant to § 80.1426(f)(6) for renewable fuel produced in the covered location or imported into the covered location between July 1, 2010 and the effective date (identified pursuant to paragraph (g)(2) of this section) of a new pathway for the fuel in question, may generate a number of delayed gallon-RINs for that renewable fuel in accordance with paragraph (f) of this section.
(i) The standardized volume of fuel (Vs) used by a party to determine the RIN volume (VRIN) under paragraph (f) of this section shall be the standardized volume of the fuel described in paragraph (g)(1)(i) of this section that was produced in the covered location or imported into the covered location by the party, and transferred to another party, between July 1, 2010 and the earlier of either of the following dates:
(A) The effective date (identified pursuant to paragraph (g)(2) of this section) of the new pathway through which the fuel in question was produced; or
(B) December 31, 2011.
(ii) [Reserved]
(8) The renewable fuel for which delayed RINs are generated must be described by a pathway that satisfies the requirements of paragraph (g)(1) of this section.
(9) All delayed RINs generated by a renewable fuel producer or importer must be generated within EMTS on the same date.
(10) The generation year of delayed RINs as designated in EMTS shall be the year that the renewable fuel volumes they represent were either produced or imported into the covered location.
(i) For renewable fuel volumes produced or imported in 2010, the generation year of delayed RINs shall be 2010 and the production date specified in EMTS shall be 07/01/2010.
(ii) For renewable fuel volumes produced or imported in 2011, the generation year of delayed RINs shall be 2011 and the production date specified in EMTS shall be 01/01/2011.
(11) Delayed RINs shall be generated as assigned RINs in EMTS with a batch number that begins with "DRN", and then immediately separated by the RIN generator.
(12) The D code that shall be used in delayed RINs shall be the D code which corresponds to the new pathway.
(13) Except as provided in this paragraph (g), all other provisions in this Subpart M that pertain to the identification of fuels for which RINs may be generated, the generation and use of RINs, and recordkeeping and reporting, are also applicable to delayed RINs.

Table 1 to § 80.1426 -Applicable D Codes for Each Fuel Pathway for Use in Generating RINs

Fuel type Feedstock Production process requirements D-Code
AEthanolCorn starchAll of the following: Dry mill process, using natural gas, biomass, or biogas for process energy and at least two advanced technologies from Table 2 to this section6
BEthanolCorn starchAll of the following: 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 annually6
CEthanolCorn starchAll of the following: 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 annually6
DEthanolCorn starchWet mill process using biomass or biogas for process energy6
EEthanolStarches from crop residue and annual covercropsFermentation using natural gas, biomass, or biogas for process energy6
FBiodiesel, renewable diesel, jet fuel and heating oilSoy bean oil; Oil from annual covercrops; Oil from algae grown photosynthetically; Biogenic waste oils/fats/greases; Camelina sativa oil; Distillers corn oil; Distillers sorghum oil; Commingled distillers corn oil and sorghum oilOne of the following: Transesterification with or without esterification pre-treatment, Esterification, or Hydrotreating; excludes processes that co-process renewable biomass and petroleum4
GBiodiesel, renewable diesel, jet fuel, and heating oilCanola/Rapeseed oilOne of the following: Transesterification using natural gas or biomass for process energy, or Hydrotreating; excludes processes that co-process renewable biomass and petroleum4
HBiodiesel, renewable diesel, jet fuel, and heating oilSoy bean oil; Oil from annual covercrops; Oil from algae grown photosynthetically; Biogenic waste oils/fats/greases; Camelina sativa oil; Distillers corn oil; Distillers sorghum oil; Commingled distillers corn oil and sorghum oil; Canola/Rapeseed oilOne of the following: Transesterification with or without esterification pre-treatment, Esterification, or Hydrotreating; includes only processes that co-process renewable biomass and petroleum5
INaphtha, LPGCamelina sativa oil; Distillers sorghum oil; Distillers corn oil; Commingled distillers corn oil and distillers sorghum oil; Canola/Rapeseed oilHydrotreating5
JEthanolSugarcaneFermentation5
KEthanolCrop residue, slash, pre-commercial thinnings and tree residue, switchgrass, miscanthus, energy cane, Arundo donax, Pennisetum purpureum, and separated yard waste; biogenic components of separated MSW; cellulosic components of separated food waste; and cellulosic components of annual cover cropsAny process that converts cellulosic biomass to fuel3
LCellulosic diesel, jet fuel and heating oilCrop residue, slash, pre-commercial thinnings and tree residue, switchgrass, miscanthus, energy cane, Arundo donax, Pennisetum purpureum, and separated yard waste; biogenic components of separated MSW; cellulosic components of separated food waste; and cellulosic components of annual cover cropsAny process that converts cellulosic biomass to fuel7
MRenewable Gasoline and Renewable Gasoline Blendstock; Co-Processed Cellulosic Diesel, Jet Fuel, and Heating OilCrop residue, slash, pre-commercial thinnings, tree residue, and separated yard waste; biogenic components of separated MSW; cellulosic components of separated food waste; and cellulosic components of annual cover cropsCatalytic Pyrolysis and Upgrading, Gasification and Upgrading, Thermo-Catalytic Hydrodeoxygenation and Upgrading, Direct Biological Conversion, Biological Conversion and Upgrading utilizing natural gas, biogas, and/or biomass as the only process energy sources providing that process used converts cellulosic biomass to fuel; any process utilizing biogas and/or biomass as the only process energy sources which converts cellulosic biomass to fuel3
NNaphthaSwitchgrass, miscanthus, energy cane, Arundo donax, and Pennisetum purpureumGasification and upgrading processes that converts cellulosic biomass to fuel3
OButanolCorn starchFermentation; dry mill using natural gas, biomass, or biogas for process energy6
PEthanol, renewable diesel, jet fuel, heating oil, and naphthaThe non-cellulosic portions of separated food waste and non-cellulosic components of annual cover cropsAny5
QRenewable Compressed Natural Gas, Renewable Liquefied Natural Gas, Renewable ElectricityBiogas from landfills, municipal wastewater treatment facility digesters, agricultural digesters, and separated MSW digesters; and biogas from the cellulosic components of biomass processed in other waste digestersAny3
REthanolGrain SorghumDry mill process using biogas from landfills, waste treatment plants, and/or waste digesters, and/or natural gas, for process energy6
SEthanolGrain SorghumDry mill process, using only biogas from landfills, waste treatment plants, and/or waste digesters for process energy and for on-site production of all electricity used at the site other than up to 0.15 kWh of electricity from the grid per gallon of ethanol produced, calculated on a per batch basis5
TRenewable Compressed Natural Gas, Renewable Liquefied Natural Gas, and Renewable ElectricityBiogas from waste digestersAny5

Table 2 to § 80.1426 -Advanced Technologies

Corn oil fractionation that is applied to at least 90% of the corn used to produce ethanol on a calendar year basis.
Corn oil extraction that is applied to the whole stillage and/or derivatives of whole stillage and results in recovery of corn oil at an annual average rate equal to or greater than 1.33 pounds oil per bushel of corn processed into ethanol.
Membrane separation in which at least 90% of ethanol dehydration is carried out using a hydrophilic membrane on a calendar year basis.
Raw starch hydrolysis that is used for at least 90% of starch hydrolysis used to produce ethanol instead of hydrolysis using a traditional high heat cooking process, calculated on a calendar year basis.
Combined heat and power such that, on a calendar year basis, at least 90% of the thermal energy associated with ethanol production (including thermal energy produced at the facility and that which is derived from an off-site waste heat supplier), exclusive of any thermal energy used for the drying of distillers grains and solubles, is used to produce electricity prior to being used to meet the process heat requirements of the facility.

40 C.F.R. §80.1426

75 FR 14863 , Mar. 26, 2010
83 FR 37746 , 10/1/2018; 85 FR 7075 , 4/6/2020; 87 FR 39662 , 8/30/2022; 87 FR 73956 , 1/3/2023; 88 FR 44582 , 9/11/2023; 88 FR 51239 , 9/11/2023

For FEDERAL REGISTER citations affecting §80.1426, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.