What are Renewable Identification Numbers?
Renewable Identification Numbers, also known as RINs, were created in the mid-2000s as a way for the oil industry to reliably comply with the Renewable Fuel Standard (RFS). In other words, RINs are proof of compliance for regulated oil companies to be able to meet the blending requirements set forth under the RFS.
How are RINs generated?
A RIN is essentially a ticket or identification number that is tied to each gallon of biofuel produced. For instance, one gallon of ethanol produces one RIN, or “ticket”, while one gallon of biodiesel produces one and a half RINs “tickets”. Each of these RINs “tickets” are then attached to the gallon of biofuel that they were produced with until that gallon is blended down the production stream by blenders.
How do oil refiners use RINs?
Each refinery is required to blend a certain number of gallons based on the percentage of the total US refinery capacity made up by their production. This is set by the EPA and is called the Renewable Volume Obligation for each year.
Gallons of ethanol are blended into the US fuel supply and RINs “tickets” attached to those gallons become detached and can be turned in to the Environmental Protection Agency (EPA) to demonstrate that they’ve met their blending requirements. However, some refiners blend more ethanol than they are required to and can keep their excess RINs for up to two years, which they can then sell on the market to other refiners who may be unable to meet their blending requirements. Similarly, other blenders may also blend renewable fuel and capture RINs without having an obligation, and they, too, can sell their RINs on the market to other obligated refiners. In this way, RINs act as a market-based compliance tool that allows refiners to operate in a more flexible manner to meet their obligations.
Why are RINs important?
The market-based RIN system creates flexibility for refiners, while ensuring compliance so that the environmental and price related benefits of the RFS are ultimately felt by consumers.
WASHINGTON, D.C. – Today, Growth Energy CEO Emily Skor submitted written comments on the Internal Revenue Service’s (IRS) proposed regulations under section 45Q, a performance-based tax credit for carbon capture projects. In her letter, Skor called on the agency to offer credit for carbon dioxide captured for food and beverage purposes, which would promote investment […]
This week in our “Conversations with Biofuels Champions” summer video series, our CEO Emily Skor visited with one of our top champs in the House of Representatives: U.S. Congresswoman Cheri Bustos of Illinois. Born in Springfield, Illinois, Congresswoman Cheri Bustos comes from a long line of farmers and teachers and a deep appreciation for being […]
CEO @GrowthEnergy tells IRS how #ethanol plants can lead the way on #carbon capture https://t.co/xiHAipVJpI
As @RepCheri Bustos says here, the biofuels industry has a cascading effect on agriculture — it promotes strong supply chains and multiplies rural economic output. Abuse of the Renewable Fuel Standard through refinery exemptions only serves to harm the ag economy. https://t.co/pvW7P4yZ4F
The future of fuel — increased engine performance, lowering our carbon footprint, and eliminating toxic fuel additives — is already here. At @EESI's Clean Energy Expo, Growth Energy SVP of Regulatory Affairs Chris Bliley laid out the benefits that expanding ethanol can bring. https://t.co/aW5v9A4prB
In a letter to the IRS, GE CEO @EmilySkor proposes applying the 45Q performance based carbon tax credit to carbon capture projects at ethanol plants as a way to incentivize and expand their further use. Biofuel producers are ready to do more! See the letter here: https://t.co/MtEDPF0jKy