May 13, 2026
Selecting the right reason for a RIN trade is like ordering a meal for dine in or to go at a restaurant. Seems simple, right? Same food, but very different handling. Reasons for RIN trades work the same way. Spot, Term, Consignment, and Standard don’t change what you’re selling; they describe how the deal is structured. Once you understand what each one is actually describing, picking the right one becomes very straightforward.
The Common RIN Trade Types You Need to Know
Each time you sell RINs, you’ll select one of four primary trade types when entering the transaction. Each corresponds to a specific type of transaction. Using the right one ensures an accurate representation of the deal.
Spot vs. Term
The easiest way to determine a reason for separated RINs is to look at the contracts behind the transactions:
- Spot transactions: The EPA defines Spot as a trade with a fixed price, fixed quantity, and a single delivery of RINs. All three must be true.
- Term transactions: In contrast to spot, Term trades are where only one of those is not true (fixed price, fixed quantity, and single delivery of RINs). For example, some trading partners may have an annual contract where both parties agree to trade RINs on a schedule but the price changes based on market pricing. Each transaction is a delivery against that agreement.
Something Worth Knowing: If you’re executing Term trades, there’s one thing worth keeping on your radar. Per EPA guidance, Term agreements establish contractual affiliate status between buyer and seller, and transaction during a compliance period may affect reporting requirements. A Spot transaction generally does not create a contractual affiliate relationship.
Consignment: Two Scenarios
Consignment is for $0 RIN transactions, such as:
- RIN Aggregation: Many RIN owners use aggregation services to bring their RINs to market. For example, the consignment code is used where a renewable fuel producer or blender hands over separated RINs to a RIN aggregator who bundles and sells the larger quantity of RINs to a third party.
- Blender Doesn’t Purchase RINs With Renewable Fuel: Another example where the consignment code can be used is when a blender purchases a quantity of renewable fuel without desiring to purchase the RINs. The blender purchases renewable fuel and separates the RINs upon blending the renewable fuel with gasoline or diesel. After separating the RINs, the blender passes them back to the producer at no cost.
Standard: The Default for Assigned RINs
Use Standard when selling Assigned RINs – RINs that are still attached to a volume of physical renewable fuel. Terms, Spot, and Consignment are only used for Separated RINs.
Quick Reference: Which Reason for Which Situation
- Spot | Fixed price, fixed quantity, and single delivery are all true (Separated)
- Term | Only one is not true: Fixed price, fixed quantity, and single delivery (Separated)
- Consignment | $0 RIN transactions (Separated or Assigned)
- Standard | Selling renewable fuel with assigned RINs (Assigned)
The Takeaway
Spot, Term, Consignment, and Standard each describe a trade structure. Match the type to the deal or contract, and the rest follows naturally – no different than knowing whether your food order is dine in or to go. If you’re unsure which applies to a specific transaction, the RINAlliance team can help. For questions about RIN trading, compliance reporting, or how the RINAlliance platform streamlines RIN management, get in touch or request a demo.
– Rhonda O’Connor, Director of Operations, Compliance & Communications