According to RINAlliance, RIN fraud is not an issue for clients due to a long-standing strategic partnership with EcoEngineers. Renewable Identification Numbers (RINs) are used to track each gallon of a biofuel as part of the Renewable Fuel Standard (RFS). The Environmental Protection Agency (EPA) recently released proposed rules as part of the 2013 Renewable Fuel Standard that addresses potential RIN Fraud.  EcoEngineers, is one company, of several, that validates and audits biofuels production facilities through a comprehensive quality insurance program developed by the company.

“While some industry stakeholders have incurred liability and liquidity problems due to the unfortunate production of fraudulent RINs, RINAlliance avoided such issues by moving swiftly to prevent risks through a partnership with EcoEngineers which audits production facilities,” said Dawn Carlson, president of RINAlliance and the not-for-profit association, Petroleum Marketers and Convenience Stores of Iowa. “The Quality Assurance Plan (QAP) originally developed by EcoEngineers has become a foundation for the Environmental Protection Agency’s rulemaking efforts to address integrity in biodiesel RIN markets.”

As part of EcoEngineers program, the company validated RINs through in person, on-site audits and ongoing monitoring of feedstock, production, fuel quality, and overall mass-balance of facilities. RINAlliance, says it then utilizes this information to document RIN validity to obligated parties allowing RIN owners to receive top-tier pricing of RINs generated by small to medium sized biodiesel producers. With EPA’s current rulemaking, production facilities utilizing third party RIN QAP services are expected to provide blenders, and ultimately, obligated parties an affirmative defense against EPA presumptive liability policies if the RINs transacted come in question.

More importantly, says RINAlliance, the steps above have created a broad supply of biodiesel and advanced renewable fuels from small to large facilities. This process yields increased competition that, in turn, keeps costs down for consumers and incentives high for those blending with biofuels.