(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 §80.1107, or each party that is an exporter of renewable fuels that is obligated to meet a Renewable Volume Obligation under §80.1130, must demonstrate pursuant to §80.1152(a)(1) that it has taken ownership of sufficient RINs to satisfy the following equation:
(∑RINNUM)i + (∑RINNUM)i−1 = RVOi
Where:
(∑RINNUM)i = Sum of all owned gallon-RINs that were generated in year i and are being applied towards the RVOi, in gallons.
(∑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 §80.1107 or §80.1130.
(2) For compliance for calendar years 2008 and later, the value of (∑RINNUM)i−1 may not exceed a value determined by the following inequality:
(∑RINNUM)i−1 ≤0.20 × 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 §§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:
(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 - [(ΣRINNUM)i + (ΣRINNUM)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.
(ΣRINNUM)i = Sum of all acquired gallon-RINs that were generated in year i and are being applied towards the RVOi, in gallons.
(ΣRINNUM)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]
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