Posts Tagged ‘Clean Fuels Clearinghouse’
DJ Trading Of RIN Credits Increases As Ethanol Production Slows
Trading Of RIN Credits Increases
By: Ian Berry
From January 2009 Dow Jones Newswires
CHICAGO (Dow Jones)–Prices for a newly created renewable fuels credit have spiked recently, as refiners decide the credits make better economic sense than purchasing ethanol itself.
The credits, called renewable identification numbers, or RINs, started out trading at less than a penny after their 2005 creation, but now are at 12 to 13 cents for 2008 credits, having climbed during the past couple of weeks. The credits are administered by the Environmental Protection Agency as a way of tracking renewable fuel production.
The EPA had expected that production of renewable fuel would exceed the federal fuel mandate requirements “by a large margin,” creating a surplus of RINs “for at least the first few years of the program” and preventing a shortage, according to the agency’s Web site. But with ethanol plants closing or cutting back production, some analysts say the production could soon fall behind the mandate, which for 2009 is 11.1 billion gallons. Read the rest of this entry »
Tags: Biofuel, Biomass, Cellulosic, Clayton, Clayton McMartin, Clean Fuels Clearinghouse, Compliance, Dow Jones, DowJones, Environmental, EPA, Ethanol, Fuel, Gasoline, Ian Berry, McMartin, Newswires, press, Regulations, Renewable Fuel Standard, Renewable Identification Number, RFS, RIN
Dr. Robert Payne at the RINWorld Summit
Tags: Ask Clayton, Clayton McMartin, Clean Fuels Clearinghouse, Dr. Robert Payne, Mr. Doubletalk, RINWorld Summit
Transition Period
Transition Period
By: Ron Kotrba
From the November 2008 Biodiesel Magazine
The federal renewable fuels standard calls for 500 million gallons of biomass-based diesel to be used in 2009. Many questions remain as to how this will play out.
2009 will be interesting with respect to implementation of the new renewable fuels standard, which many refer to as RFS2. New terms such as “advanced biofuel” and “biomass-based diesel” were never part of the 2005 RFS and just this year emerged as part of the new national energy-policy vernacular. Biomass-based diesel is a specified title under “advanced biofuel.” In 2009, RFS2 mandates that 11.1 billion gallons of renewable fuels must be blended into energy supplies; 10.5 billion of which is corn-based ethanol, and the other 600 million gallons must be “advanced biofuel,” 500 million gallons of which is to be biomass-based diesel. By 2012, 1 billion gallons of biomass-based diesel is required under the mandate.
Since the signing of the Energy Independence & Security Act of 2007—the Energy Bill that RFS2 was part of—speculation has run rampant as to how events will play out. There are a lot of unknowns left, especially since U.S. EPA delayed provisional rulemaking on implementation of RFS2 until January. Read the rest of this entry »
Tags: Biodiesel, Biodiesel Magazine, Biofuel, Biomass, Cellulosic, Clayton, Clayton McMartin, Clean Fuels Clearinghouse, Compliance, EBS, Environmental, EPA, Ethanol, Fuel, Gasoline, McMartin, November, Regulations, Renewable Fuel Standard, Renewable Identification Number, RFS, RIN, Ron Kotrba
Inaugural RINWorld Summit a Great Success
Inaugural RINWorld Summit a Great Success
The RINWorld Summit was a great success, with companies from all over the United States, and in every sector of the renewable fuel industry attending. RINSTAR® Members accounted for approximately 1/3 of the audience.
True to our word, the Summit was not a RINSTAR® user conference but instead a balanced perspective on the commercial implementation of the RFS. Believe it or not, we didn’t even conduct a RINSTAR® demo. The content was substantial, with every presenter delivering useful information that the entire audience was able to benefit from.
Representatives from EPA provided all of us with some great insight; including when we can expect the new RFS2 to go into effect and what how the biodiesel standard will most likely be addressed in 2009. The year 2009 will certainly be a challenging period – one that I have termed RFS1.5 as we transition between the original RFS and RFS2.
Considering the fact that the RFS is only in its first year, it was great to see all of the personal connections that were made at the event. Since the program is so new, virtually no one in the audience had met each other in person, but most knew each other just by the sound of their voice. When you consider the microcosm that the RFS professional works within, it was a great experience meeting so many people in one place who actually knew what a RIN was.
One thing that was particularly apparent is that there is a great need for more information about the RFS and the RIN program. Recognizing this need, I am considering conducting a series of courses on various related subjects – What do you think about RIN University? And I will be the RIN Master. Maybe we could get some sweat shirts made up with RIN U Graduate. In all seriousness, let me know if you are interested, I am hearing from lots of people who are.
Tags: Clayton, Clayton McMartin, Clean Fuels Clearinghouse, CompIntelligence, Compliance Report, Dr. Robert Payne, EPA, Joel Velasco, OPIS, RFS, RFS1.5, RIN University, RINSTAR, RINSummit, RINWorld Summit, Stephen Fater, Success
Already on the Books
EPA’s Answer to Governor Perry’s RFS Waiver Request Already on the Books
Author: Clayton McMartin
[audio:http://cleanfuelsclearinghouse.com/wp-content/uploads/version-2-waiver-answer-on-the-books.mp3]
As surely everyone in the renewable fuels area has heard, Texas Governor Rick Perry petitioned EPA for a partial waiver of the RFS on April 25, 2008.
http://www.epa.gov/otaq/renewablefuels/rfs-texas-letter.pdf
What virtually no one seems to realize is that the answer to the Governor’s request has already been addressed in the existing regulations.
The answer, in the form of legal jargon and published in the federal register on May 1, 2007, can be found in the provision for “deficit carryovers” of renewable fuel credits known as RINs. The exact language can be found in the federal register, 40 CFR Section 80.1127(b), deficit carryovers. For those so inclined, the final rule is available at http://www.epa.gov/otaq/renewablefuels/rfs-finalrule.pdf
More in layman’s terms, the Act anticipated the situation and EPA actually addressed the matter in the preamble to the regulations (Federal Register page 23934) with the following:
“The Act clearly set up a credit program with a credit life, meaning Congress intended parties to use credits in some cases instead of blending renewable fuel. The Act is best read to harmonize all of its provisions. In addition, we note that other provisions of the Act may lead to less renewable fuel use in a given year than the statutorily-prescribed volumes, but Congress adopted them and intended that they could be used. For instance, the deficit carryover provision allows any obligated party to fail to meet its RVO in one year if it meets the deficit and its RVO in the next year. If several obligated parties took advantage of this provision, it could result in the nationwide total volume obligation for a particular calendar year not being met.”
There are essentially no limits to the deficit carryover provision, other than it can not have been invoked during the prior year and if invoked in 2008 can not be used again by the obligated party in 2009. If anyone used the provision in 2007 it would be a very rare, therefore it is essentially available to all obligated parties now.
This foresight, on the part of the original lawmakers, addresses both the Texas Governor’s petition as well as the uncertainty brought about by the flooding in the corn-belt areas of Iowa.
For those who are looking for EPA’s most likely response to any waiver request, consider Clayton McMartin officially on the record now. The answer will be “this issue was anticipated in the original Act and is to be addressed with the use of RINs.” Of course nothing is black and white when it comes to politics, so we will all have to wait to hear EPA’s official response later this month.
Now for some related news. Governor Perry is scheduled to open the inaugural RINWorld Summitwww.RINsummit.com in Dallas Texas on October 16, 2008. Industry leaders will convene to learn more about the emerging markets for renewable fuels, cost effective implementation of the RFS, and the future of renewable fuels in America.
Tags: Biofuel, Biomass, Cellulosic, Clayton, Clayton McMartin, Clean Fuels Clearinghouse, Compliance, Environmental, EPA, Ethanol, Fuel, Gasoline, Governor Perry, McMartin, Perry Waiver, Regulations, Renewable Fuel Standard, Renewable Identification Number, RFS, Rick Perry, RIN, Waiver Request
Renewable Fuel Standard to be Delayed According to EPA
Renewable Fuel Standard to be Delayed According to EPA
[audio:http://cleanfuelsclearinghouse.com/wp-content/uploads/epw-testimony.mp3|titles=EPW Testimony|artists=Clayton McMartin]
Testimony from EPA Principal Deputy Assistant Administrator Robert Meyers is the first official indication that the Renewable Fuel Standard will be delayed.This development was revealed during a Senate Committee on Energy and Public Works hearing, held on July 10, 2008.
According to Mr. Meyers, “it would be difficult to meet the statutory deadline by the end of the year”. When pressed for a completion date by Majority Leader Senator Barbara Boxer, Mr. Meyers responded “according to our projections we believe we can go final next year, somewhere in the middle of the year” Presumably, we can expect to see the final rule in the June timeframe of 2009. Mr. Meyers did indicate that the notice of proposed rule making (NPRM) will be out this fall.
Delaying the final rule will have an affect on participants throughout the renewable fuel supply chain, especially in the area of advanced biofuels, such as the emerging area of cellulosic fuels, and on obligated parties such as refiners. With new mandates set to come online Jan 1, 2009, EPA will need to provide interim direction on how the RFS is to be administered in this time of transition. Look to the Clean Fuels Clearinghouse as new developments form in this area.
Tags: Biofuel, Biomass, Cellulosic, Clayton, Clayton McMartin, Clean Fuels Clearinghouse, Compliance, Environmental, EPA, Ethanol, Fuel, Gasoline, McMartin, Regulations, Renewable Fuel Standard, Renewable Identification Number, RFS, RIN
EPA Warns Companies to Trade RINs Properly
EPA Warns Companies to Trade RINs Properly
By: Kris Bevill
From the July 2008 Ethanol Producer Magazine
Established by the U.S. EPA as a way to track the amount of renewable fuel produced in the United States, renewable identification numbers (RINs) have only been around since September 2007 and regulations for them are often overlooked or disregarded.
As a result, the EPA recently reissued a document warning companies about improper and illegal RIN trading practices. No changes have been made to the regulations. The document merely serves as a stern reminder from the EPA for companies to comply – or face fines. Violators of RIN regulations can be punished with fines established under the Clean Air Act that can be up to $32,500 per day.
The EPA document covers three commonly occurring RIN transactions that defy regulations. The first is a situation in which an error during the sale was made, either a billing or volume error, and the seller “re-bills” RINs that have already been transferred. For producers, this is illegal because renewable fuel must be transferred with the correct number of RINs attached. Also, the ownership of RINs is transferred along with the fuel, so those RINs automatically become owned by the receiving company and cannot be simply transferred back to the seller. Read the rest of this entry »
Tags: bevill, Biofuel, Biomass, Cellulosic, Clayton, Clayton McMartin, Clean Fuels Clearinghouse, Compliance, Environmental, EPA, Ethanol, Ethanol-Producer Magazine, Fuel, Gasoline, kris, Kris Bevill, McMartin, press, Regulations, Renewable Fuel Standard, Renewable Identification Number, RFS, RIN