Document 0qZjVrkjpjMQ2QLjRK81bQGqx

RIN Demand Refiner as Obligated Party Renewable Fuel Producer Renewable Fuel w/RIN Fuel Blender Blended Fue Separated RIN Gasoline and Diesel Fuel EPA RIN Refiner Blended FuelJ, Consumer The EPA demands RINs from the Refiner which creates the demand for renewable fuel blending 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00001 Physical RIN/Fuel Flow Refiner as Obligated Party Basis: 10 Gallons of E10 Renewable Fuel Producer 1 Gallon Ethanol w/1 Attached RIN Fuel Blender Blended Fuel 10 Gallons 9 Gallons CBOB EPA 1 RIN Refiner Blended Fuel 10 Gallons Consumer The Fuel Blender requires CBOB from the Refiner to separate the RIN; The Refiner requires the separated RIN to demonstrate compliance to the EPA RIN flow connects the Renewable Fuel Producer, the Fuel Blender, and the Refiner to the EPA 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00002 RIN Value Flow Refiner as Obligated Party Basis: 10 Gallons of E10 Renewable Fuel Producer $1.00 Ethanol $1.00 RIN $2.00 Total Fuel Blender El 0 Price = $3.00/gallon Ethanol w/Attached RIN Price = $2.00/gallon RIN Price = $1.00/RIN $28.00 Fuel $1.00 Ethanol $1.00 RIN $30.00 Total Fuel Retailer $28.00 Fuel $1.00 RIN $29.00 Total Refiner The RIN cost charged to the Refiner is recovered in the petroleum blend stock price paid by the Fuel Blender $30.00 Eiof Consumer The Consumer pays for the RIN value which then passes through the Fuel Blender and Refiner to ultimately subsidize the Renewable Fuel Producer 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00003 RIN Pass Through Sequence Refiner as Obligated Party 1 Consumer pays total fuel costConsumer receives blended fuel Total fuel cost includes the to Fuel Retailer from Fuel Retailer cost of the petroleum fuel blend stock, ethanol, and the RIN 2 Fuel Retailer passes total fuel Fuel Retailer receives blended Fuel Retailer passes cost to Fuel Blender fuel from Fuel Blender through the RIN value to the Fuel Blender 3 Fuel Blender pays petroleum Fuel Blender receives petroleum Refiner receives the fuel blend stock and RIN cost fuel blendstock from Refiner petroleum fuel blendstock to Refiner value 4 Refiner pays RIN cost to Fuel Refiner receives RIN from Blender Refiner remits RIN to the Blender EPA 5 Fuel Blender pays ethanol Fuel Blender receives ethanol with Renewable Fuel Blender and RIN cost to Renewable attached RIN receives the ethanol value Fuel Producer and the RIN value (as a subsidy) 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00004 RIN Demand Fuel Blender as Obligated Party Renewable Fuel Producer Renewable Fuel w/RIN N. ------------------------------------------- 7 EPA > v Separated RIN Fuel Blender 4V, Gasoline and Diesel Fuel Blended Fuel ________^ t_______ Fuel Retailer Refiner Blended Fuel^ Consumer The EPA demands RINs from the Fuel Blender which creates the demand for renewable fuel blending 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00005 Physical RIN/Fuel Flow Fuel Blender as Obligated Party Basis: 10 Gallons of E10 EPA 11 RIN Renewable Fuel Producer 1 Gallon Ethanol w/1 Attached RIN N. ------------------------------------------- 7 Fuel Blender 9 Gallons CBOB Blended Fuel 10 Gallons Refiner Blended Fuel 10 Gallons Consumer The Fuel Blender requires CBOB from the Refiner to separate the RIN; The Fuel Blender requires the separated RIN to demonstrate compliance to the EPA RIN flow connects only the Renewable Fuel Producer and the Fuel Blender to the EPA 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00006 RIN Value Flow Fuel Blender as Obligated Party The Consumer pays for the RIN value which then passes through the Fuel Blender to subsidize the Renewable Fuel Producer 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00007 RIN Pass Through Sequence Fuel Blender as Obligated Party 1 Consumer pays total fuel costConsumer receives blended fuel Total fuel cost includes the to Fuel Retailer from Fuel Retailer cost of the petroleum fuel blend stock, ethanol, and the RIN 2 Fuel Retailer passes total fuel Fuel Retailer receives blended Fuel Retailer passes cost to Fuel Blender fuel from Fuel Blender through the RIN value to the Fuel Blender 3 Fuel Blender pays petroleum Fuel Blender receives petroleum Refiner receives the fuel blend stock to Refiner fuel blendstock from Refiner petroleum fuel blendstock value 4 No RIN value flows to the Fuel Blender remits RIN to the EPA EPA 5 Fuel Blender pays ethanol Fuel Blender receives ethanol with Renewable Fuel Producer and RIN cost to Renewable attached RIN receives the ethanol value Fuel Producer and the RIN value (as a subsidy) 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00008 RIN Pass Through Sequence Comparison Consumer Consumer pays total fuel cost to Fuel Consumer pays total fuel cost to Fuel No Physical Impact Retailer Retailer No RIN Value impact Fuel Retailer Fuel Retailer passes total fuel cost to Fuel Retailer passes total fuel cost to No Physical Impact Fuel Blender Fuel Blender No RIN Value Impact Fuel Blender Refiner Fuel Blender pays petroleum fuel blend Fuel Blender pays petroleum fuel blend No Net Physical Impact stock plus RIN cost to Refiner and stock cost to Refiner and ethanol and No Net RIN Value Impact ethanol and RIN cost to Renewable Fuel RIN cost to Renewable Fuel Producer Producer Fuel Blender separates physical RIN Fuel Blender separates physical RIN Fuel Blender remits RIN to EPA Fuel Blender receives RIN Value from Refiner in exchange for physical RIN Refiner supplies petroleum fuel Refiner supplies petroleum fuel No Net Physical Impact blendstock and receives petroleum blendstock and receives petroleum fuel No Net RIN Value Impact blendstock value plus RIN value blendstock value Refiner pays RIN value to Fuel Blender in exchange for physical RIN Renewable Fuel Producer Refiner remits RIN to EPA Renewable Fuel Producer supplies ethanol with attached RIN and receives ethanol and RIN value Renewable Fuel Producer supplies ethanol with attached RIN and receives ethanol and RIN value No Physical Impact No RIN Value impact 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007869-00009