If a party buys a batch of ethanol, and through testing determines that the ethanol is synthetic (non-renewable), what happens to the RINs?

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If a volume of renewable fuel for which RINs have been generated is found to not be a valid renewable fuel under the RFS program, then the associated RINs are likewise deemed invalid. See regulation Section 80.1131. If a party determines that a batch of fuel that they own does not meet the definition of renewable fuel under the RFS program, the RINs received with such fuel must be deleted from records, reports and compliance demonstrations. See regulation Section 80.1131.

In general, RINs received with such fuel must be reported as retired and such invalid RINs must be deleted from any compliance reports. Parties that learn of such a situation should promptly inform EPA. EPA will investigate the source of the fuel and take appropriate action.

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)