Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
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e a one-to-one correspondence between gallons in a batch <strong>and</strong> the volume block codes<br />
for the batch-RIN assigned to that batch. If a batch <strong>of</strong> renewable fuel is split into two or<br />
more new batches, the gallon-RINs assigned to the original batch can be split<br />
coincidentally with batch volumes. The following example shows how this would be<br />
done (volume blocks separated for clarity):<br />
Parent batch:<br />
1000 gallons<br />
batch-RIN: 2007123412345000011021-000001-001000<br />
Daughter batch #1:<br />
600 gallons<br />
batch-RIN: 2007123412345000011021-000001-000600<br />
Daughter batch #2:<br />
100 gallons<br />
batch-RIN: 2007123412345000011021-000601-000700<br />
Daughter batch #3:<br />
300 gallons<br />
batch-RIN: 2007123412345000011021-000701-001000<br />
In this example, the gallon-RINs remain both unique <strong>and</strong> paired on a one-to-one basis<br />
with actual gallons even after the parent batch is divided into smaller daughter batches.<br />
However, there will be some cases in which there is not a one-to-one<br />
correspondence between a RIN assigned to a batch <strong>and</strong> the actual gallons in that batch,<br />
<strong>and</strong> such cases could complicate the process <strong>of</strong> splitting batches. For instance, changes in<br />
temperature could cause batch volumes to swell or shrink. <strong>Renewable</strong> fuels with<br />
Equivalence Values less than 1.0, although currently unlikely to arise in appreciable<br />
volumes, will have more actual gallons in the original batch than RINs assigned to that<br />
batch. And some producers may choose to assign extra-value RINs to batches in cases<br />
wherein the Equivalence Value is greater than 1.0.<br />
To address such cases, we propose to allow parties in the distribution system the<br />
discretion to split batches <strong>and</strong> their assigned RINs following any protocol they choose, as<br />
long as that protocol preserves the requirement that gallon-RINs that have been assigned<br />
to a batch by the producer are subsequently assigned to a batch after splitting has<br />
occurred. Thus regardless <strong>of</strong> the splitting protocol used, no gallon-RINs assigned to a<br />
batch could be retained by a party after every gallon in that batch has been transferred to<br />
another party.<br />
There are a variety <strong>of</strong> batch splitting protocols that a party could choose from for<br />
situations where there is not a one-to-one correspondence between the number <strong>of</strong> gallon-<br />
RINs assigned to a batch <strong>and</strong> the number <strong>of</strong> st<strong>and</strong>ardized gallons in that batch. However,<br />
we have identified two acceptable protocols that we expect most parties to use. These are<br />
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