Renewable Fuel Standard

For more than a decade, the federal Renewable Fuel Standard (RFS) program has required every fuel refiner and importer to generate an increasing volume of renewable fuel annually.  These “obligated parties” must attain a particular number of renewable fuel credits, known as “RINs” (Renewable Identification Numbers) to show that they are in compliance with the RFS program.  RINs are essentially an artificial commodity that can be bought and sold in an open market.  Many obligated parties are unable to directly generate their mandatory volume of renewable fuel.  In these instances, they rely on others to introduce renewable fuel into commerce for them.  Many NATSO members do this in a manner that enables them to sell fuel at a lower price and realize greater margins on sales.

The RFS program specifies four separate categories of renewable fuels, each with a separate volume mandate that is established annually by the Environmental Protection Agency.  The categories are: (i) total renewable fuel (generally corn ethanol); (ii) advanced biofuel (including Brazilian sugar cane ethanol); (iii) biomass-based diesel (including biodiesel and renewable diesel); and (iv) cellulosic biofuel. 

NATSO members support long markets with a variety of supply options available to them.  The RFS helps provide this.  At the same time, it does inject a variety of complexities into the retail fuels space, including liability concerns associated with storing and dispensing fuel blends with increasing amounts of biofuels.  NATSO is at the forefront of addressing all of these concerns with policymakers in Washington, D.C.

NATSO and the Alternative Fuels Council have launched a RIN Management Service designed to help fuel retailers more efficiently participate in the Renewable Fuel Standard (RFS) program and manage their RINs. Learn more about the Alternative Fuels Council here.

Featured Item

  • NATSO Analysis: RIN Market Volatility Driven By Policy Announcements, Rumors & News Reports; Reforms Unnecessary

    In the coming weeks, the Environmental Protection Agency (EPA) is expected to propose regulations that would reform the market for Renewable Identification Numbers (RINs), which are the "credits" EPA uses to ensure that refiners satisfy their obligations under the Renewable Fuel Standard (RFS). Although the supposed purpose of these reforms is to "improve transparency" and limit volatility in RIN markets, the reforms under consideration would cause more harm than good. In fact, as NATSO's "RIN Market Volatility" Chart demonstrates, wild RIN price swings over the past several years have been caused by policy announcements, rumors, and news reports, rather than any underlying flaw in RIN markets themselves.

    • Fuel & Energy
    • NATSO
    • Comments
  • Recent Items

  • RIN Management Challenges Reported Due to Government Shutdown

    Along with many other frustrations stemming from the current government shutdown, some renewable fuel producers, marketers and blenders are experiencing interruptions in daily business operations within the Environmental Protection Agency's (EPA) moderated transaction system (EMTS).

    • Fuel & Energy
    • NATSO
    • Comments

  • NATSO Testifies on Draft Legislation to Reform the Renewable Fuel Standard

    NATSO was invited to testify before Congress today to discuss new legislation that would reform the Renewable Fuel Standard (RFS) and transition the gasoline market to a high octane fuel performance standard.

    • Fuel & Energy
    • Tiffany Wlazlowski Neuman
    • Comments

  • NATSO to Testify on the 21st Century Transportation Fuels Act

    NATSO Vice President of Government Affairs David Fialkov is scheduled to testify Dec. 11 before a Subcommittee of the U.S. House Committee on Energy and Commerce on the discussion draft of the 21st Century Transportation Fuels Act.

    • Fuel & Energy
    • NATSO
    • Comments

View All Articles

Latest Blog Posts

View All Blog Posts