NATSO Says EPA’s RIN Changes Are Unnecessary

ALEXANDRIA, Va. – The Environmental Protection Agency (EPA) may propose regulations to reform the market for Renewable Identification Numbers (RINs). RINs are the “credits” that the EPA uses to ensure that refiners satisfy their obligations under the Renewable Fuel Standard (RFS). But NATSO, formerly known as the National Association of Truck Stop Operators, says the reforms under consideration would cause more harm than good.

The EPA says these changes will "improve transparency and limit volatility in RIN markets.” However, NATSO's “RIN Market Volatility” Chart shows that “wild RIN price swings over the past several years have been caused by policy announcements, rumors, and news reports, rather than any underlying flaw in RIN markets themselves.”

NATSO says that the changes proposed by the EPA would help a small subset of refiners so they could spend as little as possible to meet regulations and obligations, while avoiding any investment in renewable fuels.

“The RIN market in the United States will always respond to changes in federal policies that are designed to enable biofuels to displace petroleum-based fuels,” said David Fialkov, vice president of government relations at NATSO. “When there are rumors—true, false or otherwise—that EPA is considering adjusting annual renewable fuel mandates, of course RIN markets will respond.”

RIN prices today are less than half of what they were two years ago—and lower RIN prices reduce the demand for biofuels.

“Aside from continuing to bail out certain refining companies from their RFS obligations, I see no reason why EPA should be exploring any RIN market reforms,” Fialkov said. “Steady, predictable, transparent, growth-oriented implementation of the RFS will mitigate RIN market volatility and encourage America's fuel retailers to continue buying, blending, and selling more renewable fuel.”