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Up, Up, and Away: What’s the Real Story On RINs?

Up, Up, and Away: What’s the Real Story On RINs?. Scott H. Irwin. http://money.msn.com/business-news/article.aspx?feed=OBR&date=20130327&id=16285821. Renewable Volume Obligations (RVOs). Renewable Identification Numbers (RINs).

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Up, Up, and Away: What’s the Real Story On RINs?

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  1. Up, Up, and Away:What’s the Real Story On RINs? Scott H. Irwin

  2. http://money.msn.com/business-news/article.aspx?feed=OBR&date=20130327&id=16285821http://money.msn.com/business-news/article.aspx?feed=OBR&date=20130327&id=16285821

  3. Renewable Volume Obligations (RVOs)

  4. Renewable Identification Numbers (RINs) • The U.S. EPA enforces RVOs using RINs, a tradable credit system • A RIN is a 38-digit number assigned to each gallon or batch of renewable fuel produced or imported into the U.S. • Each RIN travels with the biofuel as it moves through the supply chain • RINs are actively traded in a secondary market • RINs allow obligated parties to meet their individual mandates by applying RINs representing biofuels which they have physically purchased and blended, or those which were purchased from another party through RIN trading

  5. Source: Schnepf, R., and B.D. Yacobucci. “Renewable Fuel Standard (RFS): Overview and Issues.” Congressional Research Service, March 2013.

  6. Source: Schnepf, R., and B.D. Yacobucci. “Renewable Fuel Standard (RFS): Overview and Issues.” Congressional Research Service, March 2013.

  7. Source: Schnepf, R., and B.D. Yacobucci. “Renewable Fuel Standard (RFS): Overview and Issues.” Congressional Research Service, March 2013.

  8. Source: Schnepf, R., and B.D. Yacobucci. “Renewable Fuel Standard (RFS): Overview and Issues.” Congressional Research Service, March 2013.

  9. The Ethanol Market: No Mandate Price Supply P* Demand Q* Quantity

  10. The Ethanol Market: Non-Binding Mandate Price Supply P* Demand QM Q* Quantity

  11. The Ethanol Market: A Binding Mandate Price Supply P* Demand Q* QM Quantity

  12. The Ethanol Market: A Binding Mandate Price Supply Ps P* Demand Q* QM Quantity

  13. The Ethanol Market: A Binding Mandate Price Supply Ps P* Pd Demand Q* QM Quantity

  14. The Ethanol Market: A Binding Mandate Gasoline Blenders Purchase Price Selling Price Price Supply Ps P* Pd Demand Q* QM Quantity

  15. The Ethanol Market: A Binding Mandate Gasoline Blenders Purchase Price Selling Price Price Supply Ps P* RINs Price Pd Demand Q* QM Quantity

  16. Source: Schnepf, R., and B.D. Yacobucci. “Renewable Fuel Standard (RFS): Overview and Issues.” Congressional Research Service, March 2013.

  17. A Continuum of Business Models for Obligated Parties in the U.S. Motor Fuel Supply Chain Long Refining Capacity Short Blending Capacity Short Refining Capacity Long Blending Capacity

  18. A Continuum of Business Models for Obligated Parties in the U.S. Motor Fuel Supply Chain Long Refining Capacity Short Blending Capacity Short Refining Capacity Long Blending Capacity RINs Surplus RINs Deficit

  19. Thank You!!

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