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Renewable Identification Numbers RIN under the Renewable Fuel Standard Program

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RIN

Renewable identification numbers (RINs) are credits used for compliance, and are the currency of the RFS program.

- Renewable fuel producers generate RINs

- Market participants trade RINs

- Obligated parties obtain and then ultimately retire RINs for compliance

RINs can be traded in two forms:

- Assigned RINs - directly associated with a batch of fuel and that travel with that batch of fuel from party to party. - Purchasers obtain both the renewable fuel and RINs together.

- Separated RINs - formerly assigned with a batch of fuel, but are no longer assigned to a batch. Purchase only the RIN.

Examples of typical RIN transactions include:

- Generate - when a fuel is produced, a RIN is generated

- Buy - when an assigned/separated RIN is bought/traded by a buyer from a seller

- Sell - when an assigned/separated RIN is sold/traded by a seller to a buyer

- Separate - when a RIN is separated from the fuel to which it was originally assigned

- Retire - when a RIN is used to demonstrate compliance, or required to be retired for other purposes

RINs not retired for compliance can be carried over into the next compliance year. RINs are only good for satisfying obligations for the current compliance year or the following compliance year. For example, 2012 RINs can only be used for 2012 and 2013 compliance years. After that, the RINs expire or can no longer be used for compliance purposes.

Qualified Fuels for RIN

Renewable Identification Numbers (RINs) under the Renewable Fuel Standard Program

User Guide for the EPA Moderated Transaction System EMTS

RIN

A Renewable Identification Number (or RIN) is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the United States Environmental Protection Agency's Renewable Fuel Standard (RFS) implemented according to the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007.

RIN: KYYYYCCCCFFFFFBBBBBRRDSSSSSSSSEEEEEEEE

Where:

K = Code distinguishing assigned RINs from separated RINs

YYYY = Calendar year of production or import

CCCC = Company ID

FFFFF = Facility ID

BBBBB = Batch number

RR = Code identifying the Equivalence Value

D = Code identifying the renewable fuel category

SSSSSSSS = Start of RIN block

EEEEEEEE = End of RIN block

Science Direct: Renewable Identification Number

RIN Qualified Fuel Wood Chips and Pellets

Currently, the EPA RFS2 does not include a fuel pathway for woody biomass as a heating fuel; however, this Rule includes numerous pathways that use biomass, including forest residue, as feedstock to produce liquid biofuels which replace fossil fuels.

If biomass-based thermal energy were included under the RFS2, it could generate a D3 RIN, valued in the Study at $1.50/RIN. For 1 MMBtu on an HHV-basis or 77,000 Btu on an LHV-basis, this would generate 12 RINs or $312 per ton of biomass (dry basis ).

A renewable fuel pathway includes three critical components: (1) feedstock, (2) production process and (3) fuel type. Each combination of the three components is a separate fuel pathway. Qualifying fuel pathways are assigned one or more D codes representing the type of Renewable Identification Number (RIN) (i.e., renewable fuel, advanced biofuel, biomass-based diesel, cellulosic biofuel or cellulosic diesel) they are eligible to generate. (see link below).

[Source: https://www.biomassthermal.org/policy-issues/epa-renewable-fuel-standard/] RIN Qualified Fuel Subpart M - Renewable Fuel Standard

EPA Renewable Fuel Standard -Impact of Thermal Pathways for Wood Chips and Pellets

What is a Fuel Pathway

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