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08/08/2023
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(a) Identification and treatment of potentially invalid RINs (PIRs). (1) Any RIN can be identified as a PIR by the biogas producer, the RIN generator, the independent third-party auditor that verified the RIN, or EPA.
(2) Any party listed in paragraph (a)(1) of this section must use the procedures specified in §80.1474(b) for identification and treatment of PIRs and retire any PIRs under §80.1434(a).
(b) Potentially inaccurate or non-qualifying volumes of biogas-derived renewable fuel. (1) Any party that becomes aware of a volume of biogas-derived renewable fuel that does not meet the applicable requirements for such fuel under this part must notify the next party in the production chain within 5 business days.
(i) Biointermediate producers must notify the renewable fuel producer receiving the biointermediate within 5 business days.
(ii) If the volume of biogas-derived renewable fuel was audited under §80.170, the party must notify the independent third-party auditor within 5 business days.
(iii) Non-RIN generating foreign RNG producers must comply with the requirements of this section and notify the importer generating RINs and other parties in the production chain, as applicable.
(iv) Each notified party must notify EPA within 5 business days.
(2) Any party that is notified of a volume of biogas-derived renewable fuel that does not meet the applicable requirements for such fuel under this part must correct affected volumes of biogas-derived renewable fuel under paragraph (a)(2) of this section, as applicable.
(c) Potential double counting. (1)(i) When any party becomes aware of any of the following, they must notify EPA and the RIN generator, if known, within 5 business days of initial discovery:
(A) More than one RIN being generated for renewable fuel produced from the same volume of biogas, treated biogas, or RNG.
(B) More than one RIN being generated for the same volume of biogas-derived renewable fuel or RNG.
(C) A party taking credit for biogas, treated biogas, or RNG under a non-transportation program ( e.g., a stationary-source renewable electricity program) and also generating RINs for renewable fuel produced from that same volume of biogas, treated biogas, or RNG.
(D) A party taking credit for biogas-derived renewable fuel or RNG under a non-transportation program ( e.g., a stationary-source renewable electricity program) and also generating RINs for that same volume of biogas-derived renewable fuel or RNG.
(E) A party taking credit for biogas, treated biogas, or RNG used outside the covered location and also generating RINs for renewable fuel produced from that same volume of biogas, treated biogas, or RNG.
(F) A party taking credit for biogas-derived renewable fuel or RNG used outside the covered location and also generating RINs for that same volume of biogas-derived renewable fuel or RNG.
(ii) When any party becomes aware of another party separating or retiring a RIN from the same volume of RNG, they must notify EPA and the RIN generator, if known, within 5 business days of initial discovery.
(2) EPA will notify the RIN generator of the potential double counting if the party that identified the potential double counting does not know the party that generated the potentially affected RINs.
(3) Upon notification, the RIN generator must then calculate any impacts to the number of RINs generated for the volume of impacted RNG or renewable fuel. The RIN generator must then notify EPA and the independent third-party auditor, if any, of the impacted RINs within 5 business days of initial notification.
(4) For any number of RINs over-generated due to the double counting of volumes of biogas or RNG, the RIN generator must follow the applicable procedures for invalid RINs specified in §80.1431.
(d) Failure to take corrective action. Any person who fails to meet a requirement under paragraph (b) or (c) of this section is liable for full performance of such requirement, and each day of non-compliance is deemed a separate violation pursuant to §80.1460(f). The administrative process for replacement of invalid RINs does not, in any way, limit the ability of the United States to exercise any other authority to bring an enforcement action under section 211 of the Clean Air Act, the fuels regulations under this part, 40 CFR part 1090, or any other applicable law.
(e) Replacing PIRs or invalid RINs. The following specifications apply when retiring valid RINs to replace PIRs or invalid RINs:
(1) When a RIN is retired to replace a PIR or invalid RIN, the D code of the retired RIN must be eligible to be used towards meeting all the renewable volume obligations as the PIR or invalid RIN it is replacing, as specified in §80.1427(a)(2).
(2) The number of RINs retired must be equal to the number of PIRs or invalid RINs being replaced.
(f) Forms and procedures. (1) All parties that retire RINs under this section must use forms and procedures specified by EPA.
(2) All parties that must notify EPA under this section must submit those notifications to EPA as specified in 40 CFR 1090.10.
[88 FR 44562, July 12, 2023]
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