Prior to the RFS rule, industry has used an equation for standardization of ethanol volumes that carries the correction factor out to 5 digits rather than 7 digits as in the formula given in the RFS rule at 80.1126(d)(7)(i). Will use of the equation currently in practice suffice for purposes of compliance with the RFS rule?
Because the difference between the five-digit and seven-digit factors is extremely small, regulated parties may find that it makes no practical difference whether they use the shorter factor for batches of a certain size . If it makes no difference in compliance calculations, you may wish to use the shorter factor for convenience.
In any enforcement proceedings, however, EPA will use the specified seven-digit factor to verify compliance. We believe that using the 5 digit factor (0.00063) rather than the 7 digit factor in the regulations (0.0006301) will not result in an substantial difference it the number of whole gallons assigned to a batch of renewable fuel, and, therefore, may be used to determine the volume of a batch under section 80.1126(d)(7).
This Question and Answer was originally posted at: Questions and Answers on the Renewable Fuel Standard Program (pdf) (59 pp, 228 KB, EPA420-F-08-006, April 2008)