The latest in a series of thoughtful analyses by the folks at the University of Illinois Ag and Consumer Economics is out and shows the relationship between the biodiesel supply and demand curves and Renewable Identification Number (RIN) pricing. This article from Scott Irwin shows how RIN prices are made of two components – intrinsic and time value. [T]he model …
Biodiesel Supply Curve Key to RIN Price Structure
A new analysis from the University of Illinois shows that the biodiesel supply curve is key to the the price of Renewable Identification Numbers (RINs). Building on earlier work that showed that biodiesel production responds positively to profitability, Scott Irwin presents a new analysis to show the relationship between the biodiesel supply curve and the RIN prices. The estimated supply …
API Strikes Again
The American Petroleum Institute (API) has struck again by filing a lawsuit with the D.C. Circuit Court against the Environmental Protection Agency (EPA) over the volume requirements of the Renewable Fuel Standard (RFS). “This is another frivolous effort by API to abuse the court system in their slavish effort to repeal a public policy that is working for farmers, gasoline …
Analysis: RIN Traders Predicting Biodiesel Market
A new analysis from the University of Illinois shows traders in Renewable Identification Numbers (RINs) seem to be pretty good at predicting which way the biodiesel market will go. But is there some funny business going on to get those results? The efficiency of price discovery in the RINs market is quite controversial at the present moment. In just the …
EPA Report Recommends Better Monitoring of RFS
A new internal report recommends the Environmental Protection Agency improve its monitoring of the Renewable Fuel Standard (RFS) program. This article in Biodiesel Magazine reports the EPA’s own Inspector General conducted the audit and made the recommendation in response to the generation of millions of dollars of fraudulent renewable identification numbers (RINs). According to the report, the EPA did not …
EPA Expands Heating Oil Definition to Allow RINs
The U.S. Environmental Protection Agency (EPA) is expanding the definition of heating oil as part of the Renewable Fuel Standard (RFS) program. This means that renewable heating oil, such as bioheat, a mixture of biodiesel and heating oil, could fall under the category to allow for Renewable Identification Numbers (RINs). The expanded definition of heating oil will encourage the growth …
Senator Calls for Review of RINS Market
Senate Agriculture Committee chair Debbie Stabenow (D-MI) is asking the Commodity Futures Trading Commission (CFTC) to review allegations of manipulation in the markets for Renewable Identification Numbers (RINs), the tracking mechanism to ensure petroleum blenders and refiners meet their requirements under the Renewable Fuels Standard. Press reports have highlighted potential speculation and manipulation of the unregulated markets, possibly contributing to …
Feds Bust Biodiesel RIN Frauder
Federal charges against a company accused of biodiesel Renewable Identification Number (RIN) looks to stop fraud of the green fuel’s federal program. Biodiesel Magazine reports the government is charging an Indiana biodiesel firm with 88 counts of conspiracy, wire fraud, false tax claims, false statements under the Clean Air Act, obstruction of justice, money laundering and securities fraud, for an …
RFA: Facts Erode Big Oil’s Narrative
Congress is preparing to return to work and there are two issues top of mind: The FAARM Bill and the Renewable Fuel Standard (RFS). During the break the Renewable Fuels Association (RFA) took a look at some of the Big Oil’s summer arguments against ethanol and created a narrative around why these are not valid. “While Congress has been away, …
Fast Stop’s E85 Sales Soar
Today some retail stations are offering E85 (for use in flex fuel vehicle only) at more than $1.00 per gallon less than regular unleaded and these retail stations are seeing E85 sales soar. One reason these stations are able to sell the fuel at such a competitive price is because some of suppliers are passing along RIN values. Fast Stop …