Do obligated parties and renewable fuel exporters that used invalid Renewable Identification Numbers (RINs) in a given year need to replace all of those invalid RINs with valid RINs of the same year?

The Renewable Fuel Standard (RFS) regulations provide a limited flexibility to carry a RIN deficit. Obligated parties that used invalid RINs may be able to show that they meet their Renewable Volume Obligations (RVOs) by:

carrying a deficit forward in accordance with the limitations at 40 C.F.R. Â§ 80.1427(b) and,

making up the deficit with valid RINs in the following compliance year.

Obligated parties that used invalid RINs in a given year have the options of:

replacing invalid RINs in the given year’s compliance reports with valid RINs that meet the RFS requirements for that year, including roll over and RIN life limitations, or

incurring or adding to a RIN deficit for the given year that is carried forward to and made up in the next compliance year.

The EPA expects obligated parties to acquire sufficient RINs to timely meet their RVOs and comply with the deficit carryover provisions. The EPA recognizes, however, that some parties that used invalid RINs may not be able to obtain sufficient replacement RINs of the proper vintage, and this constitutes what's known as a shortfall violation.

40 C.F.R. Â§ 80.1427(b)(1)(i) and (iii) permits an obligated party to carry a deficit from calendar year i into calendar year i+1 only if that party:

did not carry a deficit into calendar year i from calendar year i-1 for the same RVO,

fully makes up for that deficit in year i+1, and

carries no deficit into year i+2.

Do obligated parties and renewable fuel exporters that used invalid Renewable Identification Numbers (RINs) in a given year need to replace all of those invalid RINs with valid RINs of the same year?

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