RIN Numbers Increase in value 20x

Renewable Identification Numbers are becoming increasingly important not just for people in environmental compliance or accounting, but also for those in marketing, investing and sustainability.

By Anduin Kirkbride McElroy in Ethenol Producer Magazine

Passage of the Energy Independence & Security Act of 2007, and the dramatically increased renewable fuels standard (RFS) within it, took Renewable Identification Numbers from a necessary pain to a marketable commodity.

• Between December and late February, the value of RINs grew from 0.25 cents to 5 cents, according to Paul Machiele, fuels center director for the U.S. EPA.
• The program is in its infancy and RINs aren’t well understood, but initial indicators show they have the potential to be a significant environmental currency.

RINs are mechanisms the EPA created to ensure compliance with the first RFS.

• The Energy Policy Act of 2005 mandated that obligated parties, which include refiners, importers and gasoline blenders, fulfill a renewable volume requirement.
• The requirement is that a certain percentage (released by the EPA every November) of each party’s motor vehicle fuel be renewable fuel.
• This necessitated the development of a flexible accounting mechanism to track compliance with the new renewable fuel blending requirements.
• A RIN is a unique, 38-digit serial number assigned by producers to each gallon or batch of renewable fuel produced.
• An obligated party acquires RINs by blending renewable fuel, or it can purchase RINs to satisfy its requirement.

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