Policy implications of high RIN prices and the 'blend wall'

摘要

Renewable identification numbers (RINs) ensure that blenders fulfill the mandated blend requirement of the RFS. Each gallon of ethanol is assigned a RIN, which is separated at the end of the supply chain when ethanol is blended with gasoline, and the RIN is forfeited to the US Environmental Protection Agency (EPA) as proof of compliance with the RFS. If some blenders blend more ethanol than the mandated minimum, the ensuing excess RINs can be banked for later use (in lieu of not blending the required minimum) or traded for use by other blenders. RINs can also be borrowed from the following year.