QAP – A Program Affords Affirmative Defense Related to Certain RINs

On January 29, 2016, EPA’s John Weihrauch sent out an email related to RINs generated by Gen-X and Southern Resources & Commodities, and the ability of certain companies to assert an Affirmative Defense related to the transfer or use of these RINs. This email went out to any company that transacted, used or owned/owns any RINs generated by these companies in the 2010-2014 timeframe. 

During 2013 and 2014, these RINs are believed to have been covered under a QAP-A audit program. The QAP-A program affords an Affirmative Defense to companies who meet certain criteria related to their independence from the RIN generators and having no knowledge of the invalidity of the RINs prior to transfer or use. Parties wishing to claim the Affirmative Defense must notify EPA within 30 days of receipt of the original notice, or by February 28, 2016. 

The EPA notice can be found here.    

If you are not sure if you transferred or used any of these RINs, you may still assert a claim of the Affirmative Defense if you meet the criteria set forth by EPA under §80.1473(c) and notify EPA by Feb 28.

In addition, because the deadline for retiring RINs and filing 2013 reports is March 1, parties may not hear back from EPA by that date, as to their acceptance of the Affirmative Defense claim. EPA has indicated that any parties who have these 2013 A-RINs in inventory, who are confident that they have met the criteria of §80.1473(c), may use these RINs for 2013 compliance.

Please contact Sandra Dunphy at Sandra.Dunphy@Weaver.com if you have any questions related to this issue or would like a template of a response letter to provide to EPA.

Don’t forget to download the Weaver Compliance Navigator app and visit our online Compliance Directory.