RIN prices are determined by market factors typical of other commodities. Due to the low availability of cellulosic ethanol, EPA sets waiver credit prices for cellulosic ethanol in order to allow obligated parties to meet their required volumes.
More in this section Renewable Identification Numbers The U. By , the RFS program will be encouraging and incentivizing others to blend 36 billion gallons of renewable fuel per year as highlighted in Figure 1. As of , 20 billion gallons of renewable fuel has been blended, with a contribution of less than 0. This gap is largely due to cellulosic ethanol technology challenges that the biofuels industry continues to address. Figure 1: Renewable fuel standard goals.
Source: EPA. Despite these achievements, the RFS is not widely recognized as a carbon reduction program. Perhaps this is due to the structure of the RFS program.
RINs are not a carbon tax but instead part of a program that passes capital from oil refiners to blenders to biofuel producers without being collected by a government entity. Figure 2: Worldwide carbon pricing initiatives. Biofuels produce fewer carbon emissions than conventional fuels, so a carbon price can be calculated based on the greenhouse gas reduction of each RIN, which represents different fuel types.
To those who have bravely served this country -- thank you for your service. Today and every day we are grateful for what you have given on behalf of our freedom. How are RINs generated? How do oil refiners use RINs? Why are RINs important?
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