Mar 14, 2019
This week the U.S. EPA issued a long awaited proposed rule allowing the year-round sale of 15-percent ethanol blends (E15) and as part of that Proposed Rule also included changes to rules regarding Renewable Identification Numbers (RINs), which are the tradable compliance credits for the Renewable Fuel Standard (RFS).
Proposed reforms to RIN markets include:
▪ Prohibiting certain parties from being able to purchase separated RINs;
▪ Requiring public disclosure when RIN holdings exceed specified thresholds;
▪ Limiting the length of time a non-obligated party can hold RINs; and
▪ Increasing the compliance frequency of the program from once annually to quarterly.
These changes seek to address the volatility in RIN markets and concerns from stakeholders over the lack of transparency in RIN trading. ASA, along with the National Biodiesel Board and biodiesel industry stakeholders have supported reforms to RIN compliance and trading and the EPA Proposed Rule is a positive step in that direction.