Legal Alert: Renewable Fuel Standard Costs Increase 1400% in Two Months: Corn-Ethanol RINs Cross $1.00 per Gallon Threshold

The federal Renewable Fuel Standard (RFS) requires gasoline and diesel refiners, blenders and importers to purchase and use an ever increasing number of renewable fuel credits (known as RINs) representing volumes of renewable fuel to offset the annual production of petroleum - based transportation fuel. The cost of complying with the RFS has increased by more than 1400% in 2013, costing refiners and importers of gasoline and diesel approximately $0.09 for every gallon of gasoline and diesel they produce at present RIN prices.

RINs are generated by renewable fuel producers when they sell qualifying renewable fuel. RINs may be traded separately or with corresponding volumes of renewable fuel. The renewable fuel produced is blended with gasoline and diesel and used for transportation fuel, heating oil and jet fuel.

There are several different types of RINs, corresponding to different types of renewable fuel that qualify for the mandates of the RFS: (1) total renewable fuel RINs (generally representing corn - ethanol production); (2) biomass - based diesel RINs (generally representing biodiesel production); (3) advanced biofuel RINs (generally representing sugarcane - ethanol production); and (4) cellulosic RINs (representing fuel from the fibrous portion of a plant). This year, importers and refiners of gasoline and diesel will be required to purchase and retire 13.8 billion corn - ethanol RINs, representing approximately 85% of the overall number of RINs that these parties must purchase.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:


Sutherland Asbill & Brennan LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.