The U.S. Commodity Futures Trading Commission along with the Environmental Protection Agency (EPA) have entered into a Memorandum of Understanding that allows the agencies to share data and analysis on the Renewable Fuel Standard (RFS). As part of the deal, the agencies will cooperate and coordinate on topics relevant to the RFS and the market for Renewable Identification Numbers (RINS).
More specifically, the MOU states, with the partnership the Commission can, “advise EPA on techniques that could be employed to minimize fraud, market abuses or other violations, and to conduct appropriate oversight in RIN and renewable fuels markets to aid EPA in successfully fulfilling the EPA’s statutory functions…” Sharing of the information will “…increase the CFTC’s understanding of the operation of and participants in those markets.” CFTC is an independent federal agency that regulates U.S. futures and options markets.
In response to the news, the Renewable Fuels Association (RFA), RFA President and CEO Bob Dinneen stated, “We are encouraged to see that EPA is coordinating and cooperating with CFTC to identify methods for improving the transparency and efficiency of the RIN market. For several years, RFA, members of Congress, and other stakeholders with an interest in the success of the RFS have been requesting that EPA coordinate with CFTC to take steps to prevent manipulation and increase transparency in the RIN market. Through this agreement, we believe CFTC will provide valuable expertise and insight that will improve the functionality and clarity of the RIN system for all market participants and the public.”