Question and Answer Guidance on
EPA's E15 RVP and RIN Market
Reform Regulations
United States
Environmental Protection
tl Agency
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Question and Answer Guidance on
EPA's E15 RVP and RIN Market
This guidance addresses implementation questions regarding EPA's recent
rule allowing gasoline blended with up to 15 percent ethanol (E15) to take
advantage of the 1-pound per square inch Reid Vapor Pressure waiver
afforded under the Clean Air Act, and modification of the Renewable Fuel
Standard compliance system to increase transparency and deter market
manipulation in the Renewable Identification Number market.
Reform Regulations
Compliance Division
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
NOTICE
&EPA
United States
Environmental Protection
Agency
EPA-420-B-19-057
December 2019
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Question and Answer Guidance on EPA's E15 RVP
and RIN Market Reform Regulations
Introduction
On June 10, 2019, EPA published a final rule entitled "Modifications to Fuel Regulations to
Provide Flexibility for El5; Modifications to RFS RIN Market Regulations." 84 Fed. Reg.
26980.1 This rule adopted a new interpretation of section 211(h)(4) of the Clean Air Act (CAA
or the Act), 42 U.S.C. § 7545(h)(4), and finalized two approaches for section 211(f) of the Act,
42 U.S.C. § 7545(f). The rule also amended 40 C.F.R. Part 80, Subparts B, N and M. Entities
potentially affected by this final rule include those involved with the production, importation,
distribution, marketing, and retailing of transportation fuels, including gasoline and diesel fuel or
renewable fuels such as ethanol, biodiesel, and renewable diesel.
To assist regulated parties, we have collected questions pertaining to a variety of implementation
issues and generated responses to those questions. This list includes questions on compliance
with El 5 regulatory requirements but is primarily focused on implementation of the new
requirements in the Renewable Identification Number (RIN) Market Reform portion of the final
rule.
The contents of this document do not have the force and effect of law and are not meant to bind
the public in any way. This document is intended only to provide clarity to the public regarding
existing requirements under the law or agency policies.
We have attempted to answer many of the questions submitted to us. Questions that merely
require a justification of the regulations or that have been previously answered in the preamble to
the regulations and require no further elaboration have generally been omitted.
1 For purposes of this document, we will refer to this rule as the "E15/RMR rule."
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Questions and Answers on EPA's E15 RVP and RIN Market
Reform Regulations
1. Questions Related to El 5 3
2. Effective Date of New RIN Market Reform Requirements 4
3. Corporate Affiliates 5
4. Contractual Affiliates 6
5. RIN Holdings Calculations 8
6. RIN Holdings Thresholds 12
7. RIN Price Matching and Reporting in EMTS 13
8. Transaction Type Reporting in EMTS 14
9. Reporting 15
10. Recordkeeping 17
11. Attest Engagements 18
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1. Questions Related to E15
1. What does the E15/RMR rule mean for E15 and parties selling E15?
The final rulemaking removed the regulatory barrier to using gasoline blended with
up to 15 percent ethanol during the summer driving season. More specifically, prior
to the E15/RMR rule, parties could not sell, offer for sale, dispense, supply, offer for
supply, transport, or introduce into commerce gasoline-ethanol blended fuels
containing more than 10 and no more than 15 volume percent ethanol (El 5) during
the regulatory control period2 that exceeded the 9.0 pound per square inch ("psi")
Reid vapor pressure (RVP) requirements in 40 CFR 80.27. More specifically, El5
was not given the same treatment as gasoline-ethanol blends containing 9 to 10
volume percent ethanol (E10) with respect to the use of the 1.0 psi waiver ("the 1-psi
waiver") under CAA section 211(h)(4). As a result of the E15/RMR rule, parties may
now use the 1-psi waiver that previously applied only to E10 to make, distribute, and
sell El5 during the regulatory control period. This means that El5 may be 1.0 psi
higher than the applicable RVP requirements in 40 CFR 80.27 provided the
provisions in 40 CFR 80.27(d)(2)-(3) are met.
This rule does not change the requirement that fuel and fuel additive manufacturers
that introduce El5 into commerce or ethanol for use in producing El5 have an EPA-
approved misfueling mitigation plan (MMP) in place prior to introducing El5 into
commerce nor does it change the components that make up a valid MMP. Similarly,
parties subject to regulation under 40 CFR part 80, subpart N, must comply with
those requirements. For example, retailers and wholesale purchaser-consumers must
label E15 dispensers under 40 CFR 80.1501, blenders of gasoline-ethanol blended
fuels must use product transfer document (PTD) language requirements at 80.1503,
and the prohibition on the use of El 5 in model year 2000 and older motor vehicles,
heavy-duty vehicles, highway or off-highway motorcycles, and nonroad vehicles,
engines, and equipment still applies. However, the E15/RMR rule did make changes
to the PTD language requirements at 40 CFR 80.1503 to effectuate El 5 now
receiving the 1-psi waiver.
Finally, the E15/RMR rule does not change the regulations at 40 CFR part 79
requiring fuel and fuel additive manufacturers to register El 5 or the ethanol used to
produce the El 5.
2 "Regulatory control periods" mean June 1 to September 15 for retail outlets and wholesale purchaser-consumers
and May 1 to September 15 for all other facilities.
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2. When can parties start taking advantage of the 1-psi RVP waiver for E15?
All parties may start taking advantage of the 1-psi waiver for El 5 beginning June 1,
2019. For the 2020 regulatory control period, all parties may take advantage of the 1-
psi waiver for El 5 beginning May 1, 2020. Other restrictions on the allowance of the
1-psi waiver still apply. For example, state implementation plans approved under the
CAA which preclude the allowance of the 1-psi waiver for gasoline-ethanol blended
fuels still apply.
3. Is gasoline now required to be E15 as a result of this rule?
No. The E15/RMR rule enables El 5 to take advantage of the 1-psi waiver under CAA
section 211(h)(4) during the regulatory control period. The E15/RMR rule does not
require that any party make, distribute, use, or sell El 5.
4. Can a BOB certified to be blended to E10 now be blended to E15?
Yes, provided the El5 meets all other statutory and regulatory requirements. See the
following Q&A for more information: https://www.epa.gov/fuels-registration-
reporting-and-compliance-help/mav-partv-add-more-oxygenate-rbob-specified-
product.
5. I am interested in introducing E15 into commerce. Are there resources available
where I can learn more about the applicable regulatory requirements?
Additional information and links to compliance assistance documents are available
here: https://www.epa.gov/reriewable-fuel-standard-program/compliarice-overview-
el5-rvp-and-rin-market-reform-final-rule.
2. Effective Date of New RIN Market Reform Requirements
6. The final rule says these changes take effect July 10, 2019. Is that when parties
will need to comply?
No. The July 10, 2019 date is when the Code of Federal Regulations (CFR) was
updated to reflect the changes to the regulations resulting from the rule. The new
regulatory text states that parties will need to comply with the new recordkeeping and
reporting requirements beginning January 1, 2020. The first quarterly report including
the new information is due by June 1, 2020, per 40 CFR 80.1451.
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7. Will EPA be conducting more stakeholder outreach leading up to the January 1,
2020 implementation date?
We are continuing to evaluate the need for additional resources and will make them
available on a rolling basis here: https://www.epa.gov/renewable-fuel-standard-
program/compliance-overview-el5-rvp-and-rin-market-reform-final-rule. We will
continue to work with stakeholders as questions arise and develop additional outreach
materials as needed. Additional stakeholder questions may be submitted online via
our Fuels Program Helpdesk at https://www.epa.gov/fuels-registration-reporting-and-
compliance-help/forms/fuels-program-helpdesk.
3. Corporate Affiliates
8. The language in the corporate affiliate definition at 40 CFR 80.1401 says two
parties are corporate affiliates if one "owns or controls ownership" of more than
20 percent of the other. How does EPA interpret the phrase "owns or controls
ownership"?
Ownership and control of ownership could take many forms, including but not
limited to: parent-subsidiary relationships, common management and managing
members, shared ownership structures, shared officers and directors, and joint
ventures. Examples of scenarios that may indicate ownership or control of ownership
could include, but are not limited to, scenarios where:
• One party has more than 20 percent of ownership of any class of listed shares,
the right to acquire such shares, or any option to purchase such shares of the
other entity.
• One party has more than 20 percent of common owners, directors, or officers
of the other entity.
• One party has more than 20 percent of the voting power of the other entity.
• In the case of a partnership other than a limited partnership, more than 20
percent of the interests of the partnership.
• In the case of a limited partnership, more than 20 percent of control over the
general partner or more than 20 percent of the voting rights to select the
general partner.
• In the case of a limited liability corporation, more than 20 percent of
ownership in the other entity regardless of how the interest is held.
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9. How would EPA view situations of successive corporate ownership and/or
control? For example, if Company A owns 25 percent of Company B, which
controls 50 percent of Company C's actions, would EPA consider Companies A
and C to be corporate affiliates?
In this scenario, EPA would likely not consider Companies A and C to be corporate
affiliates per the definition at 40 CFR 80.1401, however, they would likely be in the
same corporate affiliate group. If A, B, and C are in the same corporate affiliate
group, each company's end-of-day separated D6 RIN holding calculations should
yield the same result. Although, because A and C are only in the same corporate
affiliate group and not actual corporate affiliates, neither should report as being
corporate affiliates on the quarterly RFS activity report.
10. Are two parties corporate affiliates if they enter into a joint venture or shared
third-party company structure?
Yes, two parties could be considered corporate affiliates under 40 CFR 80.1401
provided both parties owned or controlled ownership of more than 20 percent on the
joint venture (JV) or shared third-party. If two parties form a JV or shared third-party
where each owns or controls ownership of more than 20 percent of the new entity,
then all three parties could be in the same corporate affiliate group by virtue of their
shared affiliation with the new entity.
However, EPA recognizes that parties entering into a JV or shared third-party
structure may not share common trading-level control and/or information sharing and
are occasionally in direct competition with each other. Thus, we have included a RIN
holding aggregation exemption at 40 CFR 80.1435(e) which parties may utilize in
such situations.
4. Contractual Affiliates
11. Are contractual affiliates limited only to separated D6 RINs, or other D-code
RINs?
Two parties could be considered contractual affiliates under 40 CFR 80.1401 if they
have an agreement in place to purchase, hold on behalf of, or deliver separated RINs
of all D-codes. Two parties would likely not be considered contractual affiliates if
they only deliver or sell RINs assigned to a volume of renewable fuel.
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12. Would a broker, with whom a party may have a contractual agreement (to pay
commissions) but the agreement may not be for the purchase or sale of actual
RINs be included under the definition of a contractual affiliate?
Yes, a broker could be considered a contractual affiliate under 40 CFR 80.1401.
Although the broker may not take title of the RINs (and therefore would not purchase
or sell them), the broker would be acting to deliver RINs to the other party, thus
potentially making the broker and other party contractual affiliates per the definition
at 40 CFR 80.1401.
13. Should parties with contracts to buy/sell renewable fuel with RINs assigned be
included in the list of contractual affiliates?
No, contractual affiliates should be limited to parties that transact separated RINs
only. A party that only delivers or sells RINs assigned to a volume of renewable fuel
would likely not meet the definition of contractual affiliate at 40 CFR 80.1401.
14. Would a company that submits an unsuccessful bid for a quantity of separated
RINs from a seller need to report the seller as a contractual affiliate?
If this was the extent of both parties' interaction during the compliance period, then
neither party should report the other as a contractual affiliate. If both parties had a
separate contract in place to purchase, hold RINs on behalf of, or deliver RINs to the
other, then they would likely be contractual affiliates as defined at 40 CFR 80.1401.
15. Most, if not all, RIN trades have some type of contract associated with them.
Does that mean every party I trade RINs with is my contractual affiliate?
No, a party is likely only a contractual affiliate under 40 CFR 80.1401 if the
agreement to purchase, hold on behalf of, or deliver RINs to the other party does not
result in a transaction with a fixed price, fixed quantity, and single delivery (i.e. a
"spot" type transaction).
16.1 am under contract to purchase separated RINs from a party, but the RINs
have not yet been generated. Would we be considered contractual affiliates?
If Party A has a contract to purchase or hold RINs on behalf of Party B or to deliver
RINs to Party B, both parties would likely be considered contractual affiliates per the
definition at 40 CFR 80.1401, regardless of whether the RINs have been generated or
not. In this scenario, Party A is exercising control over Party B's un-generated RINs
which is one of the types of scenarios the E15/RMR rule intended to identify via the
contractual affiliate reporting requirements at 40 CFR 80.1451.
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5. RIN Holdings Calculations
17. Are parties required to perform the RIN holdings calculation on a daily basis?
No, although they may choose to if it suits their business structure and internal
processes. Parties may perform their calculations after a longer period, such as at the
end of each week, month, or quarter, as long as they maintain records of their end-of-
day separated D6 RIN holdings for each day in that period. Parties are required to
submit the quarterly RFS activity report, per 40 CFR 80.1451, documenting whether
they exceeded the applicable thresholds on any given day during the quarter. Parties
will also be required to keep records related to their end-of-day separated D6 RIN
holdings and any associated calculations, per 40 CFR 80.1454.
18. Do I need to perform the calculations at 40 CFR 80.1435 if I do not hold
separated D6 RINs but I do hold RINs of another D-code?
Yes. The regulations at 40 CFR 80.1435 require that any party that holds RINs must
calculate the RIN holdings and RIN holding thresholds.
19. How can I determine my end-of-day separated D6 RIN holdings, other than by
logging into EMTS at the end of each day and manually recording the holdings?
Parties with an EMTS account also have the ability to generate RIN holding reports
directly in EMTS that provide an overview of RIN holdings over a given time period.
For more information, see the EMTS user guide at https://www.epa.gov/fuels-
registration-reporting-and-compliance-help/users-guide-epa-moderated-transaction-
svstem-emts.
20. Are the RIN holdings of contractual affiliates included in the threshold
calculations?
No, per the formulas in 40 CFR 80.1435, the end-of-day separated D6 RIN holdings
of contractual affiliates are not included. Only the holdings of corporate affiliates
should be included.
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21. The primary test formula at 40 CFR 80.1435(b)(i) states that "unless otherwise
specified, [the CNV_VOLTOT,i] is 15 billion gallons." Is this the number EPA
specifies each year in its annual rulemaking? If not, how does EPA intend to
otherwise specify the total expected conventional renewable fuel volume for use
in performing the RIN holding calculations?
In the annual RFS rulemakings, EPA determines the required volume for each of the
four categories of renewable fuel: cellulosic biofuel, biomass-based diesel, advanced
biofuel, and total renewable fuel. EPA either affirms the statutory targets for each of
these categories or uses our statutory waiver authorities to make reductions to the
statutory targets. While conventional biofuel (CNV VOLtotO is not one of the four
categories for which EPA establishes a required volume, it can be calculated by
subtracting the advanced biofuel volume from the total renewable fuel volume.
22. How should parties account for pending trades in EMTS when performing the
RIN holding calculations?
The RIN seller should account for reserved, pending, and canceled trades until the
transactions are cleared in EMTS. Until the seller relinquishes control of the RINs in
EMTS (i.e. the trade clears), they are held by the seller. Therefore, the RINs should
be accounted for by the seller in their RIN holding calculations. The buyer should not
account for pending, reserved, or canceled RIN purchases in their RIN holding
calculations.
23. How should parties account for RINs that have transferred title, but the
transaction has not yet been submitted in EMTS (i.e. transactions that occurred
within the past five days)?
As with reserved, pending, and canceled trades, the RIN seller should account for the
RIN holdings until the transaction is reported and cleared in EMTS. Until the seller
relinquishes control of the RINs in EMTS (i.e. the trade clears), they are held by the
seller. Therefore, the RINs should be accounted for by the seller in their RIN holding
calculations. The buyer should not account for pending, reserved, or canceled RIN
purchases in their RIN holding calculations.
24. Regarding their RIN holdings calculations, how should parties handle corporate
affiliates from different time zones? E.g., "end of day" may be a different time
for different affiliates in the same corporate affiliate group.
The term "end of day" is defined in 40 CFR 80.1401 as 7:00am Coordinated
Universal Time (UTC). All corporate affiliates, regardless of their local time zone,
should base their daily RIN holdings calculations using the RIN holdings of each
party at 7:00am UTC.
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25. Some corporate affiliates are prohibited from sharing information for various
reasons. How should a situation like this be handled when performing the daily
RIN holding calculations?
There is an exemption at 40 CFR 80.1435(e) that parties may claim based on certain
situations that prohibit or limit information sharing between corporate affiliates. Any
parties claiming this exemption are required to retain detailed, explanatory
documentation supporting their exemption per 40 CFR 80.1454(v)(3) and provide the
documentation to the attest auditor as part of their annual audit per 40 CFR
80.1464(a)(6).
26. Under the aggregation exemption requirements at 40 CFR 80.1435(e), what does
EPA mean by "an absence of common trading-level control and information
sharing"?
40 CFR 80.1435(e) provides an exclusion from the corporate affiliate aggregation
requirements when there is an absence of common trading-level control and
information sharing, or when the sharing of information regarding aggregation with
the affiliate could lead either party to violate state or Federal law, or the law of a
foreign jurisdiction.
"The absence of common trading-level control and information sharing" language
addresses those situations where screens exist that prevent parties from sharing RIN
information with each other and where there would be no means of performing the
daily RIN holding calculation across potential corporate affiliates. The provision is
meant to avoid disruption of affiliate relationships where robust screens exist that
would prevent coordination and aggregation of RIN holdings in a manner that could
affect the RIN market. Commenters on the notice of proposed rulemaking had
expressed concern that, without such an exclusion, existing and functioning screens
would be jeopardized.
27. When comparing RIN holdings against the secondary threshold (130% of prior
year RVO), how should refiners handle extraordinary situations that
significantly changed their gasoline or diesel production volumes at some point
during the previous year such that it is not an accurate representation of their
projected current year production volumes? For example, a refinery fire,
purchase/sale, etc.
We have included provisions at 40 CFR 80.1435(d) for obligated parties to use
alternate gasoline and diesel production volumes when comparing their RIN holdings
against the secondary threshold in instances of extraordinary events.
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28. Do the provisions at 40 CFR 80.1435(d) apply to imported and/or exported
volumes?
Yes, parties may claim an alternative import or export volume allowance for any of
the reasons listed under 40 CFR 80.1435(d), provided they meet all the requirements
of that section.
29. Does every party in a corporate affiliate group need to calculate their daily end-
of-day separated D6 RIN holdings to compare against the primary threshold?
Yes. All parties that hold RINs should calculate their daily separated D6 RIN
holdings using the applicable formulas in 40 CFR 80.1435 for comparison against the
primary threshold (three percent of the prior year implied conventional renewable
fuel volume requirement).
30. Does every party in a corporate affiliate group need to calculate their daily end-
of-day separated D6 RIN holdings to compare against the secondary threshold?
Yes, if the primary threshold has been exceeded and at least one of the parties in the
group is an obligated party, then every member of the affiliate group should conduct
the secondary threshold test at 40 CFR 80.1435(b)(2) and report whether it was
exceeded on any day per 40 CFR 80.145 l(c)(2)(ii).
31. How should parties aggregate RINs held by joint ventures and shared company
ownership structures?
If the parent companies of a joint venture (JV) or shared company structure are
corporate affiliates of the JV or shared company, as defined at 40 CFR 80.1401, each
parent company should account for the percentage of the RINs held by the shared
company or JV equivalent to their percent of ownership and/or control of ownership
of the JV or shared company.
For example, if Party A and Party B enter into a 60/40 joint venture and the JV holds
100,000 separated D6 RINs on a given day, Party A should account for 60,000 of
those RINs in its daily holdings and Party B should account for 40,000.
32. Is a non-obligated party with an obligated party as a corporate affiliate required
to perform the secondary threshold calculation if the first threshold is exceeded?
All parties in a corporate affiliate group, as defined at 40 CFR 80.1401, should
perform the secondary threshold calculations if one or more parties in the group has
an obligation under the RFS.
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6. RIN Holdings Thresholds
33. Does an obligated party need to exceed both thresholds for EPA to publish its
name?
Yes, an obligated party or a non-obligated party with an obligated party in its
corporate affiliate group needs to exceed both thresholds on the same day for EPA to
publish its name. If only the primary threshold is exceeded on a day, EPA would
likely not publish the name of that obligated party or the members of its group.
34. If an obligated party exceeds the primary threshold, do they need to calculate
against the secondary threshold only for that day, or for every day in the
quarter?
If an obligated party exceeds the primary threshold at any point during the reporting
period, they should calculate their aggregated end of day RIN holdings against the
secondary threshold (130% of their pervious year RVO) for every day in the quarter,
regardless of when in the quarter they exceeded the primary threshold. See page 100
for more discussion: https://nepis.epa. gov/Exe/ZyPDF.cgi?Pockev=Pl 00WR63.pdf.
35. An obligated party exceeds both thresholds on one day and is forced to calculate
against both thresholds for every day in the quarter. What happens if on other
days in the quarter, they exceed the secondary threshold but not the primary?
Will their name be published by EPA?
If an obligated party exceeds both thresholds on any given day, EPA would likely
publish its name regardless of whether they exceed either threshold again in that
quarter. However, that party should continue to perform the calculations as part of the
recordkeeping requirements at 40 CFR 80.1454(u).
36. Can an obligated party and its corporate affiliate group hold more than 130% of
its RVO without EPA publishing its name?
Yes, provided the obligated party does not also exceed the primary threshold on the
same day (3.00% of the total renewable fuel RVO for the applicable compliance
period).
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7. RIN Price Matching and Reporting in EMTS
37. Is a trade merely an exchange of RINs between parties or is a trade considered
to be an exchange of value between the parties? For example, if Party A gave
RINs to Party B rather than make Party B pay for the RINs, would that qualify
as a trade or merely a transfer of RINs?
EPA would consider a "trade" to be any exchange of RINs that would normally be
reported to EPA via EMTS per 40 CFR 80.1452.
38. How will the RIN price match requirement be enforced?
Business rules in EMTS will be updated to prevent separated RIN trades with
mismatching prices from processing and clearing.
39. How does EPA recommend parties assign value to the RIN in instances where
assigned RINs are sold at a single price for both renewable fuel and the RIN?
Parties can either report in EMTS the price per gallon of renewable fuel including
RINs or the price per RIN, whichever matches their business practices.
40. In what instance could a price of $0.00 be entered for a transaction in EMTS?
Two transfer types allow a price of $0.00 to be entered for separated RINs: intra-
company transfers and consignment type transactions. See section five of this
document and the EMTS User's Guide at https://www.epa.gov/fuels-registration-
reporting-and-compliance-help/users-guide-epa-moderated-transaction-svstem-emts
for an additional explanation of these codes.
41. Many smaller renewable fuel producers use RIN aggregation services to bring
their RINs to market. Generally, these services take RINs from multiple
producers and bundle them for sale on the open market. In such a scenario, how
should this series of transactions and prices be reported in EMTS?
In such a scenario, the transaction between the initial RIN-holding party and the RIN
aggregator should be reported in EMTS with a $0.00 price using the consignment
transaction code. Once the RIN aggregator finds a buyer for the bundled RINs, the
RIN aggregator and the buyer should report the sale in EMTS at the appropriate non-
zero price (ensuring matching) using the appropriate transaction reason code (e.g.
spot or term), per 40 CFR 80.1452(c).
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42. If a party sells or purchases separated RINs along with a volume of renewable
fuel, should that transaction be reported in EMTS using a "per gallon" price or
a "per RIN" price?
All RIN transactions involving separated RINs should be reported in EMTS using the
price "per RIN", per 40 CFR 80.1452(c)(12)(ii)(B).
8. Transaction Type Reporting in EMTS
43. How does EPA define a spot vs. term transaction type?
A spot is a transaction with a fixed price, fixed quantity, and single delivery. A term
transaction would be any transaction where at least one of the those is untrue. See
footnote 232 in the preamble to the final E15/RMR rule (84 FR 27018) available
here: https://www.govinfo.gov/content/pkg/FR-2019-06-10/pdf/20W-1 pdf.
44. What additional transaction reason codes will be added to EMTS and what
would be the appropriate scenarios to use them?
In addition to "spot" and "term" transaction reason codes, we will be adding a code
for "consignment" scenarios.
The spot code should be used for a buy/sell transaction with a fixed price, fixed
quantity, and single delivery. The term code should be used for a buy/sell transaction
where at least one of the those is untrue.
The consignment code should be used, for example, in a situation where a renewable
fuel producer or blender hands over separated RINs to a RIN aggregator who bundles
them and sells the larger bundles of RINs to a third party. Section 4 of this document
contains a discussion on how such a scenario should be reported by each party in
EMTS per 40 CFR 80.1452(c).
Additionally, the consignment code should be used in a scenario where a blender
purchases a quantity of renewable fuel without desiring to purchase the RINs. The
blender enters into a contract to purchase the renewable fuel and separate the RINs
upon blending the renewable fuel with gasoline or diesel. After separating the RINs,
the blender passes them back to the producer at no cost.
Parties are encouraged to contact EPA with additional scenarios for more specific
assistance via our Fuels Program Helpdesk at https://www.epa.gov/fuels-registration-
reporting-and-compliance-help/forms/fuels-program-helpdesk.
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45. The "standard trade" reason code is still visible in EMTS. What would be the
appropriate situation to use that code as opposed to the spot, term, or other
codes?
A transaction involving assigned RINs would be one appropriate situation to use the
standard trade reason code. For more information, please refer to the EMTS User's
Guide at https://www.epa.gov/fuels-registration-reporting-and-compliance-
help/users-guide-epa-moderated-transaction-svstem-emts.
46. When will the new transaction mechanism and price information need to be
reported to EPA in EMTS?
Per 40 CFR 80.1452(c)(12)(ii) and 80.1452(c)(15), any transaction on or after
January 1, 2020 must meet the new transaction reporting requirements.
47. If a party sells or purchases separated RINs along with a volume of renewable
fuel, should that transaction be reported in EMTS using the "standard trade"
code or one of the new "spot", "term contract", or "consignment" type
transaction codes?
All RIN transactions involving separated RINs after 1/1/2020 should be reported in
EMTS using the applicable "spot", "term contract", or "consignment" reason code.
See 40 CFR 80.1452(c)(15).
9. Reporting
48. When will the new RIN holding and affiliate information need to be reported to
EPA?
Per the schedule specified in 40 CFR 80.1451(f)(2), June 1, 2020 is the deadline to
submit the first quarterly RFS activity report with the new information.
49. Will a new reporting form be developed, or will the new information be included
on an existing form?
The new data (affiliate information, affiliation type, and RIN holding threshold) will
be reported on a new form: the RFS0105 RFS Activity Report. Instructions for
completing this form can be found at https://www.epa.gov/fuels-registration-
reporting-and-coinpliance-help/list-all-auarterlv-and-annual-reports-renewable.
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50. Do I need to report all corporate affiliates or just RIN-holding ones?
Parties required to submit the RFS Activity Report per 40 CFR 80.1451(c) should
only report corporate affiliates that held RINs at least once during the applicable
quarter. See section III.C of the preamble to the final E15/RMR rule (84 FR 27017)
for more discussion.
51. Do I need to report corporate affiliates that held RINs with D-codes other than
D6, such as D3 or D4?
Yes. Parties are required at 40 CFR 1451(c) to report all corporate affiliates that held
RINs during the compliance period. However, only separated D6 RINs should be
included in the end-of-day RIN holding calculations per 40 CFR 80.1435.
52. If I do not own RINs in a quarter, but one or more parties in my corporate
affiliate group does, do I still need to submit an RFS activity report?
No. Per 40 CFR 80.1451(c) only RIN-owning parties are required to submit RFS
activity reports.
53.1 have a contract in place with a counterparty that did not result in the transfer
of RINs during the reporting period. Am I still required to report that party as a
contractual affiliate on the RFS activity report?
Yes. See 40 CFR 80.1451(c)(2)(ii)(H).
54. Do I need to report all contractual affiliates or just RIN-holding ones?
Parties should report all contractual affiliates including those that did not own RINs
in the applicable quarter and those that are not registered with the RFS program per
the reporting requirements at 40 CFR 80.1451(c)(2)(ii)(F). However, note that the
definition of contractual affiliate at 40 CFR 80.1401 is limited to parties with a
contract in place to purchase, hold, or deliver RINs (any D code).
An example scenario could be where Party A and Party B entered into a contract on
January 1 for Party A to deliver a certain quantity of RINs to Party B before
September 1 of that year. Even if Party A did not acquire RINs until July 1 of that
year, both parties could be considered contractual affiliates during the quarter one
compliance period.
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55. What reporting code should be used when reporting a RIN broker as a
contractual affiliate?
Parties whose contractual affiliates include RIN brokers should report them on the
quarterly RFS activity report using the "CONTH" code. It should be noted that RIN
brokers themselves would not necessarily be required to submit the quarterly RFS
activity report, unless they take title of RINs in EMTS.
56. For contractual affiliates, should I report contracts for all RIN D-codes or only
D6 RINs?
Contractual affiliates for all RIN D-codes should be reported on the quarterly RFS
activity report per 40 CFR 80.1451(c)(2)(ii)(F).
Recordkeeping
57. What records are necessary to substantiate the reported RIN price?
Recordkeeping requirements to substantiate the reported RIN price are located at 40
CFR 80.1454(i). We recognize that each company documents RIN transactions in
different ways and are therefore deferring to customary business practices. Some
examples of records could include any transaction receipts, proofs of sale, product
transfer documents, or other documents that indicate an agreed-upon price between
buyer and seller.
58. What records are necessary to substantiate the reported transaction
mechanism?
Recordkeeping requirements to substantiate the reported transaction mechanism are
located at 40 CFR 80.1454(i). We recognize that each company documents RIN
transactions in different ways and are therefore deferring to customary business
practices. Some examples of records could include any transaction receipts, proofs of
sale, contractual agreements, or other documents that indicate the type of transaction.
59. Do records need to be retained by all parties in a corporate affiliate group or
only the obligated party? What about contractual affiliates?
All parties transacting and/or holding RINs are subject to the recordkeeping
requirements of 40 CFR 80.1454.
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Attest Engagements
60. Is the attest auditor required to recreate every daily RIN holding calculation as
part of their annual audit?
A representative sample of calculations should be evaluated, per 40 CFR sections
80.1464(a)(4)(ii), 80.1464(b)(5)(ii), and 80.1464(c)(3)(ii). Sample selection
guidelines can be found at 40 CFR 80.127.
61. An auditor found that a party failed to include an affiliate and/or included non-
affiliates in their daily RIN holding calculations. Should the auditor report this
as a finding?
The independent auditor should review threshold calculations during the attest
engagement process and include in their attest engagement report to EPA any
findings per 40 CFR 80.1464. This includes confirmation that the D6 RIN holdings
and RVOs, if applicable, of all corporate affiliates were fully and properly accounted
for in the calculations.
62. My audit found that a RIN owning party incorrectly calculated its RIN holdings
(but neither the true nor the incorrectly calculated holdings ever exceeded the
applicable threshold). Should I report this as a finding in my attest report to
EPA?
The auditor should follow the agreed-upon requirements based on standard auditing
procedures.
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