RIN stands for Renewable Identification Number. They are essentially “credits” that refiners need in order to show they are in compliance with Renewable Fuel Standard (RFS) blending requirements.
The EPA assigns RINs to track refiners’ renewable fuel usage. If refiners do not use enough renewable fuel, they can purchase RINs to satisfy RFS mandates.
This system has led to two negative consequences – soaring RIN prices and fraud.
The Price of RINs
- Refiners are scrambling to find enough RINs to meet their RFS obligation. This has caused the price of RINs to surge as much as 1,400 percent since last year.
- Because of declining gasoline demand and increasing RFS standards, this rapid increase in RIN cost – which adds to the cost of making gasoline – could continue if RFS requirements are not relaxed.
- The combination of high RIN costs and limited availability has encouraged fraud. Since 2011, the EPA has identified 140 million invalid or counterfeited biodiesel credits.
Problems with RINs are just further proof that the RFS does not work in today’s energy market. Tell Washington that the RFS needs to be repealed.