ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2023

Accrued expenses consisted of the following:


(in millions)	June 30, 2023		December 31, 2022
Inventory-related accruals	$	1,659.5	$	1,417.4
Renewable energy credit and emissions obligations (a)	792.3		1,361.1
Inventory intermediation agreement (b)	177.8		98.3
Accrued transportation costs	159.8		127.3
Excise and sales tax payable	137.9		123.8
Accrued salaries and benefits	114.4		172.9
Accrued refinery maintenance and support costs	65.2		48.1
Accrued utilities	51.8		105.4
Accrued capital expenditures	45.5		85.7
Contingent consideration	29.4		81.6
Accrued interest	20.2		20.1
Environmental liabilities	13.7		14.1
Current finance lease liabilities	11.7		11.7







Other	58.5		23.5
Total accrued expenses	$	3,337.7	$	3,691.0

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(a) The Company is subject to obligations to purchase Renewable Identification Numbers (“RINs”) required to comply with the Renewable Fuel Standard. The Company’s overall RINs obligation is based on a percentage of domestic shipments of on-road fuels as established by Environmental Protection Agency. To the degree the Company is unable to blend the required amount of biofuels to satisfy its RINs obligation, RINs must be purchased on the open market to avoid penalties and fines. The Company records its RINs obligation on a net basis in Accrued expenses when its RINs liability is greater than the amount of RINs earned and purchased in a given period and in Prepaid and other current assets when the amount of RINs earned and purchased is greater than the RINs liability. In addition, the Company is subject to obligations to comply with federal and state legislative and regulatory measures, including regulations in the state of California pursuant to Assembly Bill 32 (“AB 32”), to address environmental compliance and greenhouse gas and other emissions. These requirements include incremental costs to operate and maintain our facilities as well as to implement and manage new emission controls and programs. Renewable energy credit and emissions obligations fluctuate with the volume of applicable product sales and timing of credit purchases. From time to time, the Company enters into forward purchase commitments in order to acquire its renewable energy and emissions credits at fixed prices. As of June 30, 2023, the Company had entered into approximately $501.2 million of such forward purchase commitments with respect to its total accrued renewable energy and emissions obligations. Our RIN obligations will be settled in accordance with established regulatory deadlines. The Company’s AB 32 liability is part of an ongoing triennial period program which will be settled through 2024.

(b) The Company had the obligation to repurchase the J. Aron Products that were held in its Storage Tanks in accordance with the Third Inventory Intermediation Agreement. As of June 30, 2023 and December 31, 2022, a liability was recognized based on the repurchase obligation under the Third Inventory Intermediation Agreement for the J. Aron owned inventory held in the Company’s Storage Tanks, with any change in the market price being recorded in Cost of products and other. As described in “Note 3 - Inventories”,