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Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

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temperature. For instance, under extreme changes in temperature, the volume <strong>of</strong> a batch<br />

<strong>of</strong> ethanol can change by 5 percent or more. For this reason we are proposing that all<br />

batch volumes be corrected to represent a st<strong>and</strong>ard condition <strong>of</strong> 60 o F prior to the<br />

assignment <strong>of</strong> a RIN. For ethanol 32 , we propose that the correction be done as follows 33 :<br />

where<br />

Vs,e = Va,e x (-0.0006301 x T + 1.0378)<br />

Vs,e = St<strong>and</strong>ard volume <strong>of</strong> ethanol at 60 o F, in gallons<br />

Va,e<br />

T<br />

= Actual volume <strong>of</strong> ethanol, in gallons<br />

= Actual temperature <strong>of</strong> the batch, in o F<br />

Since batches <strong>of</strong> ethanol are generally sold using st<strong>and</strong>ard volumes rather than actual<br />

volumes, this approach to assigning RINs to batches would be consistent with current<br />

practices <strong>and</strong> would maintain the one-to-one correspondence between the volume block<br />

in the batch-RIN <strong>and</strong> the st<strong>and</strong>ardized volume <strong>of</strong> the batch. We propose a similar<br />

approach to biodiesel, where the volume correction can be calculated using the following<br />

equation 34 :<br />

where<br />

Vs,b = Va,b x (-0.0008008 x T + 1.0480)<br />

Vs,b = St<strong>and</strong>ard volume <strong>of</strong> biodiesel at 60 o F, in gallons<br />

Va,b<br />

T<br />

= Actual volume <strong>of</strong> biodiesel, in gallons<br />

= Actual temperature <strong>of</strong> the batch, in o F<br />

The RIN would have to be assigned to a batch no later than the point in time when<br />

the batch physically leaves the production or importing facility. Although ownership <strong>of</strong><br />

the batch may be retained by the producer or importer, the RIN would nevertheless be<br />

required to be transferred along with the batch as it leaves the originating facility. This<br />

requirement would ensure that RINs could be verified against production or importing<br />

facility records <strong>and</strong> against m<strong>and</strong>ated reports to the Energy Information Administration<br />

(EIA). It would also centralize the process <strong>of</strong> assigning RINs to batches.<br />

The means through which RINs would be transferred with batches would in some<br />

respects be left to the discretion <strong>of</strong> the renewable fuel producer or importer. The primary<br />

requirement would be that the RIN be included on a product transfer document (PTD).<br />

The PTD can be included in any form <strong>of</strong> st<strong>and</strong>ard documentation that is already<br />

associated with or used to identify title to the batch. The batch documentation must be <strong>of</strong><br />

the sort that uniquely identifies the batch <strong>and</strong> is generally transferred from one party to<br />

32 An appropriate temperature correction for other renewable fuels should likewise be used.<br />

33 Derived from "<strong>Fuel</strong> Ethanol Technical Information," Archer Daniels Midl<strong>and</strong> Company, v1.2, 2003<br />

34 Derived from R.E. Tate et al, "The densities <strong>of</strong> three biodiesel fuels at temperatures up to 300 oC", <strong>Fuel</strong><br />

85 (2006) 1004 - 1009, Table 1 for soy methyl ester<br />

- 86 -

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