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Does regulation Section 80.1128(a)(4) allow a marketer to change the K code from 1 to 2 and then not transfer the RIN with the renewable fuel as long as he sells the RINs to anyone by the end of the quarter?

See More Frequent Questions about Fuels Registration, Reporting, and Compliance Help.

Marketers who buy and sell renewable fuel without blending it into gasoline or diesel cannot separate RINs from volumes, and thus cannot change the K code from 1 to 2. All conditions under which a party can separate RINs from volumes are set forth in regulation Section 80.1129(b).

However, a marketer can indeed decide not to transfer a particular RIN with a volume of renewable fuel so long as the end-of-quarter check described in regulation Section 80.1128(a)(5) is fulfilled.

Question and Answer was originally posted at: Questions and Answers on the Renewable Fuel Standard Program (pdf) (55 pp, 221 KB, EPA420-F-07-041a, August 2007)