Posts Tagged ‘RINS’
Educational Series: What is a RIN?
RFS Educational Series Briefing No. 2: What is a RIN?
Written by Clayton McMartin for Televent DTN
The three-letter RIN is an abbreviation for Renewable Identification Number. Under the Federal government’s Renewable Fuel Standard (RFS) a RIN is assigned to every gallon of biofuel produced or imported into the United States. Comprised of 38 digits, the RIN serves effectively as a serial number which is tracked throughout its life in the renewable fuel supply chain, from the point of production to the point at which the fuel is placed into the retail market.
Valuable information about the fuel and its producer is embedded within the 38-digit code that makes up the RIN. Here is a sample of what you can readily determine from the RIN number:
– Status of the RIN as far as being tradable as a separated credit (more on this later)
– The year the fuel was produced - also referred to as the vintage
– Who produced or imported the renewable fuel
– Where it was produced or imported into the U.S.
– What kind of fuel, ethanol, biodiesel, etc. (more on this later)
– Its equivalence value (more on this later)
– Whether it comes from cellulosic technologies or not
– And the total volume of credits assigned to a batch of renewable fuel
As an example of a RIN consider the following:
12009480270076000011020003994400048031
RINs are useful for tracking renewable fuel at every link of the supply chain. The process starts when renewable fuel is produced or imported and the 38-digit serial number is assigned to the fuel. Tracking and reporting to EPA is then continued as the fuel is transferred from supplier to customer and so on and so on. Once the renewable fuel is placed into the retail market the RIN is separated from the fuel and then serves as a tradable credit. This separated RIN, or credit, can then be traded from one party to another, similar to other environmental credit trading programs.
Ultimately the RIN is used to demonstrate to EPA that a party has met their particular obligation under the RFS. EPA monitors the overall program by having every party in the supply chain report their RIN activity to the agency on a quarterly basis. The advanced fuel standard (RFS2) requires that the frequency of reporting increases first to monthly and then to near real-time, or within three days of transfer.
Future briefings will provide more details about how the RIN number is used, who has value in RINs, and how the changing regulations will impact business throughout the motor fuel sector.
Click here to download a PDF of Educational Series Briefing No 2: What is a RIN?.
Past briefings are available by clicking here.
Tags: Clayton McMartin, Educational Briefing Series, RINS
Educational Series: What is The Renewable Fuel Standard?
RFS Educational Series Briefing No. 1: What is The Renewable Fuel Standard?
Written by Clayton McMartin for Televent DTN
The Renewable Fuel Standard or RFS is a federal program which promotes the use of renewable fuels in the nation’s motor fuel pool. The initial RFS, now known as RFS1 was established as a result of the 2005 Energy Policy Act (EPACT) and went into effect on Sept. 1, 2007. Fundamental to the RFS is the mandated use of renewable fuels, such as ethanol and biodiesel, throughout the continental United States and Hawaii (1).
The first year of the new fuel standard required that a minimum of 4.7 billion gallons of renewable fuel, prorated to the months September through December, be blended into the nation’s on-road gasoline and diesel fuels. The actual standard is expressed as a percentage, based upon the American motorist’s fuel use in any given year. In 2007 the RFS value was 4.02 percent of the nation’s total on-road gasoline consumption, excluding Alaska. Working together with the Department of Energy, EPA is required to calculate and publish the coming year’s standard by Nov. 30th of each preceding year.
An advanced fuel standard, known now as RFS2, was enacted into law with the passage of the 2007 Energy Independence and Security Act (EISA), and signed by President George W. Bush on Dec. 19, 2007. The new RFS2 dramatically increases the mandated use of renewable fuels. This is accomplished through an increasing schedule of approximately 30 percent annually at which point it peaks at 36 billion gallons per year in 2022.
Originally scheduled to take effect on Jan. 1, 2009, RFS2 has been plagued with delays. Through the formal rulemaking process, EPA proposed a new effective date of Jan. 1, 2010, which will almost certainly be delayed even further.
In our next article we will investigate the renewable identification number also known as the RIN.
(1)Non-contiguous states and territories had the choice to opt into the renewable fuel standard as it was originally promulgated. Hawaii petitioned EPA on June 22, 2007 to opt into the RFS program, and EPA approved their request on July 22, 2007.
Click here to download a PDF of Educational Series Briefing No 1: What is The Renewable Fuel Standard?.
Tags: Clayton McMartin, Educational Briefing Series, Renewable Fuel Standard, RFS2, RINS
Televant DTN & CFCH Launch Educational Briefings Series on RFS2
How will New Fuel Standards Impact Your Profitability?
History has shown time and time again that the most successful businesses in any sector recognize and adapt to change sooner than their competition. Without a doubt, the Renewable Fuel Standard represents one of the biggest changes faced by both the petroleum and the agriculture industries in their histories. This fuel standard went into effect on Sept. 1, 2007 and has changed the way business is now done. And with the impending advanced standard, known as RFS2, the most successful operators in the supply chain will need to prepare now for even more changes in the coming months and years.
Recognizing the importance of these issues, and the needs of our readers, Telvent DTN is launching a series of educational briefings on the RFS. Clayton McMartin, founder of the RINSTAR® renewable fuel registry, is our guest editor for this informative series. Hundreds of companies conduct business through RINSTAR’s registry each day, representing billions of gallons of renewable fuel products every year.
McMartin is recognized as the industry expert on the RFS and the renewable fuel credit known as the RIN. During this series, he will share his valuable knowledge and unique insight into the biofuel supply chain and the world of RIN trading.
The series will highlight too how and why the motor fuel and agriculture industries are tied more closely together through regulations and how this fact will change the business environment forever.
Today starts the twice weekly series of briefings. The educational briefings will start with the basics and then build upon that foundation, providing a clearer picture of the changing business arena and better positioning you and your organization to compete.
Tags: Clayton McMartin, DTN, Educational Briefing Series, RFS2, RINS
About Clean Fuels Clearinghouse
Clean Fuels Clearinghouse (CFCH) is best known as the home of RINSTAR®, the nation’s only private sector registry for renewable fuels and the associated credits known as Renewable Identification Numbers, or RINs. Interacting with over 500 companies throughout the renewable fuel supply chain daily, RINSTAR is recognized as the leader in the marketplace for RIN management and validation services. As a private sector, third party verifier, RINSTAR has conducted due diligence and facilitated the trading of over 12 Billion Gallon-RINs. The registry provides its membership with the highest level of confidence possible in the market for renewable fuel credits.
Respected throughout the industry as the thought leaders in the field of advanced renewables and low carbon fuels, CFCH interacts as a stakeholder with the Environmental Protection Agency (EPA) and such state agencies as the California Air Resource Board (CARB). A combination of unique experiences and practical industry insight position CFCH to guide its clients through the challenges associated with regulatory change.
Clayton McMartin and Melissa Donovan founded CFCH in 2001 with the mission of “Delivering Business Solutions for Cleaner Fuels”. McMartin holds degrees in Petroleum and Chemical Engineering and Donovan a degree in Computer Science. For more information about CFCH contact us at 575-377-3369.
Tags: CFCH, Clayton McMartin, Clean Fuels Clearinghouse, Melissa Donovan, RINS, RINSTAR