RIN Lifecycle
RINs are the "currency" under the current RFS program. To understand the RFS program, please see the previous page.
Important Characteristics of RINs
Renewable identification numbers (RINs) are credits used for compliance, and are the “currency” of the RFS program.
Renewable fuel producers generate RINs
Market participants trade RINs
Obligated parties obtain and then ultimately retire RINs for compliance
RINs can currently be traded in two forms:
Assigned RINs - directly associated with a batch of fuel and that travel with that batch of fuel from party to party. Purchasers obtain both the renewable fuel and RINs together.
Separated RINs - formerly assigned with a batch of fuel, but are no longer assigned to a batch. Purchase only the RIN.
Examples of current typical RIN transactions include:
Generate - when a fuel is produced, a RIN is generated
Buy - when an assigned/separated RIN is bought/traded by a buyer from a seller
Sell - when an assigned/separated RIN is sold/traded by a seller to a buyer
Separate - when a RIN is separated from the fuel to which it was originally assigned
Retire - when a RIN is used to demonstrate compliance, or required to be retired for other purposes
The typical RIN lifecycle is depicted in the following graphic:
Who Are the Current Market Participants?
The current RFS program outlines 4 types of market participant categories:
Obligated parties (refiners and importers of gasoline or diesel)
Renewable fuel exporters
Renewable fuel producers
Registered RIN market participants
Participants include both domestic and foreign companies. A company may fall under one or more categories and can change from year to year based on their trading or business activities.
Where Do RINs Currently Get Exchanged?
EPA moderated transaction system (EMTS) is the official exchange and database of record for all transactions involving RINs. The typical process involves:
Parties enter into a trade agreement outside of EMTS
Each of the trading partners then enter into EMTS a separate record (“buy”/”sell”)
EMTS matches the trades; if the QA check is passed RINs are transferred between accounts
The graphic below depicts the lifecycle of RINs with respect to the market participants on the EMTS:
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