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Environmental Protection UK/VT 1 tfA 4ZU B 1Z
y October 31, 2012
Public Release of Draft Quality Assurance Plan Requirements
The Renewable Fuel Standard (RFS) program requires the use of Renewable Identification Numbers
(RINs) to demonstrate compliance with the RFS volume obligations. RINs are generated by
renewable fuel producers and importers and represent volumes that meet the requirements for
renewable fuel under the RFS program. Once RINs have been generated, they can be transferred
between parties and used by petroleum refiners and importers ("obligated parties") to show
compliance with their volume obligations. However, only RINs that were validly generated by the
renewable fuel producer may be transferred or used for compliance purposes. Because of this, in
some cases parties in the RFS program spend considerable time and effort in evaluating whether
RINs were validly generated. EPA is developing a rulemaking proposal, which is expected to be
released by the end of 2012, to provide a more structured way to assure that RINs entering commerce
were validly generated. EPA expects that this will promote greater liquidity in the transfer and use of
RINs, helping to make the RFS program more efficient and effective.
The proposal the Agency is developing includes a quality assurance program that could be used to
verify that RINs have been validly generated. The proposal would provide a recognized means for
independent third parties to audit the production of renewable fuel and the generation of RINs. The
basis for these audits would be quality assurance plans (QAPs) which would be developed and
implemented by independent third parties, based on the requirements specified for a QAP in the
regulations.
In response to the interest of regulated parties in being able to verify the validity of RINs at the
beginning of 2013, we are providing an early draft of the types of QAP requirements that have been
under consideration as we develop the Notice of Proposed Rulemaking (NPRM). By providing this
early draft, parties considering participation in the quality assurance program that is under
development can begin making some preparations to conduct audits, since they will have an early
understanding of the elements that are likely to be proposed for QAPs. Any party that has developed
a QAP and would like EPA to evaluate it can submit it to our support box (support@epamts-
support.com).
While the QAP requirements in this document represent our current thinking, some elements could
change in the NPRM as we continue to gather information and develop other aspects of the proposed
program requirements. Once EPA releases the NPRM containing the proposed requirements for
QAPs, stakeholders can provide the Agency with comments on all aspects of the proposal, including
the specific proposed requirements for QAPs. Any final rule will reflect EPA's consideration of
comments received on the proposed rule and/or further consideration by EPA.
It is currently EPA's intention to propose a rule that would include some or all of the QAP elements reflected in
this document. However, the text and content of the proposal could change based on further deliberation by
EPA. In addition, any final rule will reflect EPA's consideration of comments received on the proposed rule
and/or further consideration by EPA. This document does not affect any legal rights or obligations under the
RFS program.
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Potential Elements of a Quality Assurance Plan
(1) Feedstock-related components
(i) Components requiring ongoing monitoring
(A) Feedstocks are renewable biomass as defined in §80.1401
(B) Feedstocks are being separated according to a separation plan, if applicable under
§80.1426(f)(5)(ii)
(C) Crop and crop residue feedstocks meet land use restrictions, or alternatively the
aggregate compliance provisions of §80.1454(g)
(D) If applicable, verify that feedstocks with additional recordkeeping requirements meet
requirements of §80.1454(d)
(E) Feedstocks are valid for the D code being used, and are consistent with information
recorded in EMTS
(F) Feedstock is not renewable fuel for which RINs were previously generated
(G) Feedstock is consistent with production process and D code being used as permitted
under Table 1 to Section 80.1426 or a petition approved through section 80.1416
(ii) Components requiring quarterly monitoring
(A) Separated food waste or separated yard waste plan is accepted and up to date, if
applicable under §80.1426(f)(5)(n)
(B) Separated municipal solid waste plan is approved and up to date, if applicable under
§80.1426(f)(5)(ii)
(C) Contracts or agreements for feedstock acquisition are sufficient for facility
production
(D) Feedstock processing and storage equipment are sufficient and match engineering
review
(E) If applicable, accuracy of feedstock energy (FE) calculation factors related to
feedstocks, including average moisture content and feedstock energy content
(2) Production process-related components
(i) Components requiring ongoing monitoring
(A) Production process is consistent with that reported in EMTS
(B) Production process is consistent with D code being used as permitted under Table 1
to §80.1426 or a petition approved through §80.1416
(ii) Components requiring quarterly monitoring
(A) Mass and energy balances are appropriate for type and size of facility
It is currently EPA's intention to propose a rule that would include some or all of the GAP elements reflected in
this document. However, the text and content of the proposal could change based on further deliberation by
EPA. In addition, any final rule will reflect EPA's consideration of comments received on the proposed rule
and/or further consideration by EPA. This document does not affect any legal rights or obligations under the
RFS program.
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(B) Workforce size is appropriate for type and size of facility, and sufficient workers are
on site for facility operations
(C) If applicable, process-related factors used in feedstock energy (FE) calculation are
accurate, in particular the converted fraction (CF)
(3) Renewable fuel-related components
(i) Components requiring ongoing monitoring
(A) Standardization of volumes pursuant to §80.1426(f)(8) are accurate
(B) Renewable fuel type matches the D code being used
(C) RIN generation matches wet gallons produced
(D) Fuel shipments match production volumes
(E) If applicable, renewable content R is accurate pursuant to 80.1426(f)(9)
(F) Equivalence value EV is accurate and appropriate
(G) Renewable fuel was intended and sold for qualifying uses as transportation fuel,
heating oil, or jet fuel
(ii) Components requiring quarterly monitoring
(A) Certificates of analysis verifying fuel type and quality, as applicable
(B) Verify existence of quality process controls designed to ensure that fuel continues to
meet applicable property and quality specifications
(C) Volume production is consistent with that reported to EPA and EIA, as well as other
federal or state reporting
(D) Volume production matches storage and distribution capacity
(E) Volume production capacity matches RFS registration
(4) RIN generation and separation-related components
(i) Components requiring ongoing monitoring
(A) If applicable, verify that RIN separation is appropriate under §80.1429(b)(4)
(B) Verify that appropriate RIN generation calculations are being followed under
§80.1426(f)(3), (4), or (5) as applicable
(C) If applicable, verify that RINs were retired for any fuel that the producer produced
and exported
(ii) Components requiring quarterly monitoring
(A) Verify that annual attestation report is accurate and has been submitted to EPA
It is currently EPA's intention to propose a rule that would include some or all of the GAP elements reflected in
this document. However, the text and content of the proposal could change based on further deliberation by
EPA. In addition, any final rule will reflect EPA's consideration of comments received on the proposed rule
and/or further consideration by EPA. This document does not affect any legal rights or obligations under the
RFS program.
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