Temporary Guidance for Corporate
Affiliate Groups that Include Obligated
Parties on How to Calculate the
RIN Holding Secondary Threshold
from the Period of April 1, 2021
through March 31, 2022
United States
Environmental Protection
^1	Agency

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Temporary Guidance for Corporate
Affiliate Groups that Include Obligated
Parties on How to Calculate the
RIN Holding Secondary Threshold
from the Period of April 1, 2021
through March 31, 2022
Compliance Division
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
United States
Environmental Protection
** Agency
EPA-420-B-21-032
June 2021

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Introduction
This document provides guidance on how to calculate secondary RIN holding thresholds as
specified in 40 CFR 80.1435(b) using the alternative gasoline and diesel production provisions
under 80.1435(d). This guidance applies to corporate affiliate groups with obligated parties as
defined in 80.1401 and all other parties required to calculate RIN holdings under 80.1435.
If an obligated party has fully complied with the 2020 renewable volume obligation (RVO) on
the calendar day the secondary threshold calculation is performed, the obligated party must use
the equations at 80.1435(b) instead of the equations outlined in this document.
This guidance is divided into four sections. The first section provides background. The second
through fourth sections address how the holdings-to-obligation percentage (HTOP) and
conventional RVO values are determined as the 2019, 2020, and 2021 annual RVO compliance
deadlines effectuate.1 Specifically, the second section covers equations for use during April 1,
2021	through December 31, 2021. The third section covers equations for use during January 1,
2022	through January 31, 2022. The fourth section covers equations for use during February 1,
2022 through March 31, 2022. For the period before April 1, 2021 and after March 31, 2022, the
equations at 80.1435(b) must be used without modification.
Background
The Environmental Protection Agency (EPA) changed the Renewable Fuels Standard (RFS)
annual compliance and attest engagement reporting deadlines for obligated parties for the 2019,
2020, and 2021 compliance periods as part of the Extension of 2019 and 2020 Renewable Fuel
Standard Compliance and Attest Engagement Reporting Deadlines Final Rule ("RFS
Compliance Date Extension Rule").2 During the rulemaking process, we received public
comments suggesting that EPA should address situations where obligated parties may have to
report exceeding the RIN holding reporting thresholds as a result of EPA extending the annual
compliance deadlines.3 Commenters explained that by extending the 2020 compliance deadline,
some obligated parties would exceed the secondary threshold due to these obligated parties
holding multiple years' worth of separated D6 RINs that are not explicitly accounted for in the
equations at 80.1435(b)(2). To address this issue, Commenters suggested that EPA modify the
regulations or utilize enforcement discretion to address these concerns. For reasons discussed in
the RFS Compliance Date Extension Rule Response to Comments document, we did not finalize
changes to the regulations in the RFS Compliance Date Extension Rule.4 This guidance is
intended to help address the situation raised by Commenters.
We believe that the regulations at 80.1435(d) provide flexibility for obligated parties to use
alternative gasoline and diesel product volumes in the secondary threshold equations at
1	HTOP and conventional RVO equations are described at 80.1435(b)(2).
2	See 86 FR 17073 (April 1, 2021).
3	See "RFS Compliance Date Extension: Response to Comments" pages 36-37 available at:
https://nepis.epa. gov/Exe/ZyPDF.cgi?Dockev=P1011KWI.pdf.
4	Ibid.
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80.1435(b)(2) for situations where the compliance deadlines are extended as long as all the
requirements of 80.1435(d) are met. The regulations at 80.1435(d)(1) allow parties to "have a
reasonable basis for using the alternative production numbers (e.g., selling or acquiring a refinery
or a shutdown of a refinery)." Given that we are permitting some obligated parties to hold
several years' worth of separated D6 RINs, we believe it reasonable for such parties to take into
account multiple years' worth of gasoline and diesel fuel production when calculating their
secondary thresholds when EPA extends the annual RVO compliance deadline(s). The intent of
the RIN holding reporting thresholds is to have parties report to EPA cases where a party (or
group of parties) holds a sufficiently large sum of separated D6 RINs (as checked by the primary
threshold) which they would not typically hold in order to comply with their RVO (as checked
by the secondary threshold).
However, due to the fact that some obligated parties may need to use as many as four different
years' gasoline and diesel production volumes in the secondary holding threshold calculations,
we are providing guidance regarding which years' production volumes must be used in the
secondary threshold equations. Furthermore, due to the sequencing of 2019 (for small refineries),
2020, and 2021 RVO compliance deadlines, we believe it is important to specify how various
year's gasoline and diesel production volumes should be input into the secondary threshold
equations. We believe such guidance is necessary to help ensure consistency and assure
conformance with the RIN holding threshold reporting requirements. This guidance will also
help attest auditors determine whether parties calculated secondary RIN holdings correctly under
80.1464(a)(4).
Equations for April 1, 2021 through December 31, 2021
For the period of April 1, 2021 through December 31, 2021 parties subject to this guidance must
use Equation (1) to calculate daily HTOP and Equation (2) to calculate the 2019 plus 2020
conventional RVO.
Equation (1): HTOPd = {(ED6RINd)a/[(ECNV_RV02oi9+202o)a + (ECNV_DEF2oi9)a]} * 100
Where:
HTOPd = The holdings-to-obligation percentage is the percentage of separated D6
RINs a corporate affiliate group holds on calendar day d relative to their expected
separated D6 RIN holdings based on the corporate affiliate group's conventional
RVO for compliance period i-1, in percent.
d = A given calendar day.
a = Individual corporate affiliate in a corporate affiliate group.
(ED6RINd)a = Sum of the number of separated D6 RINs each individual corporate
affiliate a holds on calendar day d, in RIN gallons.
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(ECNV	RVO)2o 19+2020 = Sum of the conventional RVOs for each individual
corporate affiliate a for the 2019 and 2020 compliance periods as calculated in
Equation (2) of this document, in RIN-gallons.
(ECNV	DEF2oi 9)a = Sum of the conventional deficits for each individual
corporate affiliate a as calculated in 80.1435(b)(2)(iv) for the 2019 compliance
period, in RIN-gallons.
Equation (2): CNV RVO2019+2020 = {[RFStdRF,2020 * (GV2019 + GV2020 + DV2019 + DV2020)]
[RFStdAB,2020 * (GV2019 + GV2020+ DV2019+ DV2020)]} + ERVOrF,2020
Where:
CNV RVO2019+2020 = The conventional RVO for an individual corporate affiliate
for the 2019 and 2020 compliance periods without deficits, in RIN-gallons.
RFStdRF,202o = The standard for renewable fuel for the 2020 compliance period
pursuant to 80.1405(a)(l l)(iv), in percent.
RFStdAB,2020 = The standard for advanced biofuel for the 2020 compliance period
pursuant to 80.1405(a)(l l)(iii), in percent.
GV2019 = The non-renewable gasoline volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2019 compliance period, in gallons.
DV2019 = The non-renewable diesel volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2019 compliance period, in gallons.
GV2020 = The non-renewable gasoline volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2020 compliance period, in gallons.
DV2020 = The non-renewable diesel volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2020 compliance period, in gallons.
ERVOrf ,2020 = The sum of all renewable volume obligations from exporting
renewable fuels, as calculated under 80.1430, by an obligated party for the 2020
compliance period, in RIN-gallons.
For Equations (1) and (2), we believe that the 2019 gasoline and diesel production is a more
reasonable approximation of 2021 gasoline and diesel production due to decreased production in
2020 as a result of the Covid-19 pandemic. Parties should also use the 2019 conventional deficits
since those obligated parties would not have established a 2020 conventional deficit. Parties
should use 2020 RVOs incurred from exporting renewable fuel as that value will be known and
those RVOs should have already been satisfied under 80.1430 independent of the extended
compliance deadlines.
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Equations for January 1, 2022 through January 31, 2022
For the period of January 1, 2022 through January 31, 2022 parties subject to this guidance must
use Equation (3) to calculate daily HTOP and Equation (4) to calculate the 2020 plus 2021
conventional RVO.
Equation (3): HTOPd = [(ID6RINd)a/{ [(ICN V_RVO2020 2021 )a + (2*(ECNV_DEF2oi9))a] *
1.25}] * 100
Where:
HTOPd = The holdings-to-obligation percentage is the percentage of separated D6
RINs a corporate affiliate group holds on calendar day d relative to their expected
separated D6 RIN holdings based on the corporate affiliate group's conventional
RVO for compliance period i-1, in percent.
d = A given calendar day.
a = Individual corporate affiliate in a corporate affiliate group.
(ED6RINd)a = Sum of the number of separated D6 RINs each individual corporate
affiliate a holds on calendar day d, in RIN gallons.
(ECNV	RV0)2020+2021 = Sum of the conventional RVOs for each individual
corporate affiliate a for the 2020 and 2021 compliance periods as calculated in
Equation (4) of this document, in RIN-gallons.
(ECNV	DEF2019)a = Sum of the conventional deficits for each individual
corporate affiliate a as calculated in 80.1435(b)(2)(iv) for the 2019 compliance
period, in RIN-gallons.
Equation (4): CNV RVO2020+2021 = {[(RFStdRF,2020 * (GV2020 + DV2020)) + (RFStdRF,202i *
(GV2021 + DV2021))]	[(RFStdAB,2020 * (GV2020 + DV2020)) + (RFStdAB,2021 *
(GV202I + DV2021))]} + ERVOrF,2021
Where:
CNV RVO2020+2021 = The conventional RVO for an individual corporate affiliate
for the 2020 and 2021 compliance periods without deficits, in RIN-gallons.
RFStdRF,202o = The standard for renewable fuel for the 2020 compliance period
pursuant to 80.1405(a)(l l)(iv), in percent.
RFStdAB,2020 = The standard for advanced biofuel for the 2020 compliance period
pursuant to 80.1405(a)(l l)(iii), in percent.
RFStdRF,202i = The standard for renewable fuel for the 2020 compliance period
pursuant to 80.1405, in percent.
RFStdAB,202i = The standard for advanced biofuel for the 2020 compliance period
pursuant to 80.1405, in percent.
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GV2020 = The non-renewable gasoline volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2020 compliance period, in gallons.
DV2020 = The non-renewable diesel volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2020 compliance period, in gallons.
GV2021 = The non-renewable gasoline volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2021 compliance period, in gallons.
DV2021 = The non-renewable diesel volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2021 compliance period, in gallons.
ERVOrf ,2021 = The sum of all renewable volume obligations from exporting
renewable fuels, as calculated under 80.1430, by an obligated party for the 2021
compliance period, in RIN-gallons.
For Equations (3) and (4), we expect obligated parties to use the 2020 and the 2021 gasoline and
diesel production volumes as those volumes should be known when performing HTOP
calculations for the period of January 1, 2022 through January 31, 2022. Similarly, for RVOs
incurred from exporting renewable fuel, parties should use the 2021 exporter RVOs as those will
be known as well. For equation (3), parties must the use twice the 2019 conventional deficits as
those parties would not have established the 2020 conventional deficit during this period but
should account for the fact that a corporate affiliate group may have two years' worth of deficits
across the group.
Equations for February 1, 2022 through March 31, 2022
For the period of February 1, 2022 through March 31, 2022 parties subject to this guidance must
use Equation (5) to calculate daily HTOP and Equation (6) to calculate the 2021 conventional
RVO.
Equation (5) HTOPd = [(ED6RINd)a/{ [(ECNV_RVO202i)a + (ECNV_DEF202i)a +
(ECNV	DEF2o2o)a] * 1.25}] * 100
Where:
HTOPd = The holdings-to-obligation percentage is the percentage of separated D6
RINs a corporate affiliate group holds on calendar day d relative to their expected
separated D6 RIN holdings based on the corporate affiliate group's conventional
RVO for compliance period i-1, in percent.
d = A given calendar day.
a = Individual corporate affiliate in a corporate affiliate group.
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(ED6RINd)a = Sum of the number of separated D6 RINs each individual corporate
affiliate a holds on calendar day d, in RIN gallons.
(ECNV	RVO)202i = The conventional RVOs for each individual corporate
affiliate a for the 2021 compliance period as calculated in Equation (6) of this
document, in RIN-gallons.
(ECNV	DEF2021 )a = Sum of the conventional deficits for each individual
corporate affiliate a as calculated in 80.1435(b)(2)(iv) for the 2021 compliance
period, in RIN-gallons.
(ECNV	DEF202o)a = Sum of the conventional deficits for each individual
corporate affiliate a as calculated in 80.1435(b)(2)(iv) for the 2020 compliance
period, in RIN-gallons.
Equation (6) CNV RVO2021 = {[RFStdRF,202i * (GV2021 + DV2021)][RFStdAB,202i * (GV2021
+ DV2021)]} + ERVOrF,2021
Where:
CNV RVO2021 = The conventional RVO for an individual corporate affiliate for
the 2021 compliance period without deficits, in RIN-gallons.
RFStdRF,202i = The standard for renewable fuel for the 2020 compliance period
pursuant to 80.1405, in percent.
RFStdAB,202i = The standard for advanced biofuel for the 2020 compliance period
pursuant to 80.1405, in percent.
GV2021 = The non-renewable gasoline volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2021 compliance period, in gallons.
DV2021 = The non-renewable diesel volume, determined in accordance with
80.1407(b), (c), and (f), which is produced in or imported into the 48 contiguous
states or Hawaii by an obligated party for the 2021 compliance period, in gallons.
ERVOrf ,2021 = The sum of all renewable volume obligations from exporting
renewable fuels, as calculated under 80.1430, by an obligated party for the 2021
compliance period, in RIN-gallons.
Note that Equations (5) and (6) match the regulatorily specified equations at 80.1435(b)(2)(i)
and (iii) respectively. For clarity, we are specifying which compliance periods that go into the
terms of the equations. After March 31, 2022, parties must use the equations at 80.1435(b) as
specified.
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