(a) Renewable volume obligations. (1) Except as specified in paragraph (b) of this section, each party that is obligated to meet the Renewable Volume Obligation under Sec. 80.1107, or each party that is an exporter of renewable fuels that is obligated to meet a Renewable Volume Obligation under Sec. 80.1130, must demonstrate pursuant to Sec. 80.1152(a)(1) that it has taken ownership of sufficient RINs to satisfy the following equation: ([sum]RINNUM)i + ([sum]RINNUM)i-1 = RVOi Where: ([sum]RINNUM)i = Sum of all owned gallon-RINs that were
generated in year i and are being applied towards the
RVOi, in gallons.([sum]RINNUM)i-1 = Sum of all owned gallon-RINs that were
generated in year i-1 and are being applied towards the
RVOi, in gallons.RVOi = The Renewable Volume Obligation for the obligated
party or renewable fuel exporter for calendar year i, in
gallons, pursuant to Sec. 80.1107 or Sec. 80.1130.
(2) For compliance for calendar years 2008 and later, the value of ([sum]RINNUM)i-1 may not exceed a value determined by the following inequality: ([sum]RINNUM)i-1 <=0.20 x RVOi
(3) RINs may only be used to demonstrate compliance with the RVO for the calendar year in which they were generated or the following calendar year. RINs used to demonstrate compliance in one year cannot be used to demonstrate compliance in any other year.
(4) A party may only use a RIN for purposes of meeting the requirements of paragraphs (a)(1) and (a)(2) of this section if that RIN is an unassigned RIN with a K code of 2 obtained in accordance with Sec. Sec. 80.1126(e)(4), 80.1128, and 80.1129.
(5) The number of gallon-RINs associated with a given batch-RIN that can be used for compliance with the RVO shall be calculated from the following formula: RINNUM = EEEEEEEE-SSSSSSSS + 1 Where: RINNUM = Number of gallon-RINs associated with a batch-RIN, where each
gallon-RIN represents one gallon of renewable fuel for
compliance purposes.EEEEEEEE = Batch-RIN component identifying the last gallon-RIN
associated with the batch-RIN.SSSSSSSS = Batch-RIN component identifying the first gallon-RIN
associated with the batch-RIN.
(b) Deficit carryovers. (1) An obligated party or an exporter of renewable fuel that fails to meet the requirements of paragraphs (a)(1) or (a)(2) of this section for calendar year i is permitted to carry a deficit into year i+1 under the following conditions:
(1) An obligated party or an exporter of renewable fuel that fails to meet the requirements of paragraphs (a)(1) or (a)(2) of this section for calendar year i is permitted to carry a deficit into year i+1 under the following conditions:
(i) The party did not carry a deficit into calendar year i from calendar year i-1.
(ii) The party subsequently meets the requirements of paragraph (a)(1) of this section for calendar year i+1 and carries no deficit into year i+2.
(2) A deficit is calculated according to the following formula: Di = RVOi - [([Sigma]RINNUM)i + ([Sigma]RINNUM)i-1] Where: Di = The deficit, in gallons, generated in calendar year i
that must be carried over to year i+1 if allowed to do so
pursuant to paragraph (b)(1)(i) of this section.RVOi = The Renewable Volume Obligation for the obligated
party or renewable fuel exporter for calendar year i, in
gallons.([Sigma]RINNUM)i = Sum of all acquired gallon-RINs that were
generated in year i and are being applied towards the
RVOi, in gallons.([Sigma]RINNUM)i-1 = Sum of all acquired gallon-RINs that
were generated in year i-1 and are being applied towards the
RVOi, in gallons. [72 FR 23995, May 1, 2007, as amended at 73 FR 57255, Oct. 2, 2008; 73 FR 71560, Nov. 25, 2008]