WASHINGTON – The U.S. Environmental Protection Agency released its proposed rulemaking today to extend a one-pound (psi) Reid vapor pressure (RVP) waiver for higher ethanol blends such as E15 and to reform the Renewable Identification Number (RIN) market.
The Agency is proposing to change the RIN market by:
- Prohibiting parties other than obligated parties from purchasing RINs
- Limiting the amount of time a non-obligated party (i.e., fuel retailer) can hold RINs
Convenience retailers sell approximately 80% of the fuels sold in the United States. NACS supports the ability of its members to meet consumer demand and bring higher ethanol fuel blends like E15 to market; however, EPA’s proposed RIN market reforms would undercut the benefits of the RVP waiver.
“NACS is concerned that the proposed rulemaking would generate more problems than solutions,” said Paige Anderson, NACS director of government relations. “We believe that EPA’s proposal would create chaos in the RIN market and reduce retailers’ incentives to blend renewable fuel into the fuel supply.”
Currently, fuel refiners, importers and exporters of renewable fuels, known as obligated parties, are required to comply with Renewable Volume Obligations (RVOs) as part of the Renewable Fuel Standard (RFS). The obligated parties must retire RINs representing a renewable fuel for an annual compliance period. This system was designed with an open trading market to ensure a robust market for RINs.
NACS is reviewing the EPA’s proposal and will follow-up in NACS Daily with further information.