In 2005, Congress passed the Environmental Protection Act (EPAct) which aimed to infuse biofuels into the transportation fuels market. This Act gave rise to the Renewable Fuel Standard (RFS) and the creation of the RIN trade. In 2007, Congress updated some provisions in the Renewable Fuel Standard with the passage of the Energy Independence and Security Act (EISA). The RFS, as it has existed since the passage of EISA, is designed to incentivize the production and blending of renewable fuel to be used as transportation fuel through the RIN credits.
RINs are intangible credits that represent a gallon of renewable fuel. Since the purpose of EISA was to incentive the production and use of renewable fuel, companies that engage in activities contrary to that purpose incur a compliance obligation. Under the RFS, these types of entities are called Obligated Parties. As a mechanism of compliance, Obligated Parties are required to purchase RINs and retire (count against) them against any incurred compliance obligation. RINs are traded much like shares of stock, but are a product of a compliance obligation rather than an investment interest.
Where does RINAlliance fit into all this? Since its inception, RINAlliance has been helping clients navigate the ins and outs of the RFS. Boasting nearly two decades of experience, RINAlliance provides the web platform for RIN management, offers compliance services, markets RINs as needed, and provides 24-7 support. RINAlliance has the experience and expertise to take care of all your RFS and RIN management needs!