The National Biodiesel Board is currently looking at a way of certifying RINs. They saw the problem of off spec biodiesel a few years ago and developed the BQ-9000 quality assurance program. Now they are working on this issue. It will take some time to go through the committee process, but we can hope that within a year there will be an insurance program or other certification process.
RINs are a large part of the economy of commercial biodiesel production. Current value is around $1.40 per RIN, and there are 1 and 1/2 RINs per gallon, so this has a potential value of $2.10 per gallon or so. I say potential, because you have got to sell them, and if a broker is involved, he wants a share. That share used to be around 15 to 20%, and now it may be half of the RIN value, if they can sell at all.
Location: Ashfield, MA USA | Registered: March 21, 2001
The RIN traders that I keep in touch will aren't raking their suppliers over the coals that harshly. After the innitial RIN Fraud fallout, most suppliers are getting better pricing.
Recent EPA rulemaking with create a 2 tiered RIN system, the difference between the tiers being that mount of liability that the RIN producer and trader take.
