Investment bank Wells Fargo criticizes RINs, recommends eliminating them

Source: By OPIS • Posted: Tuesday, June 15, 2021

Wells Fargo is not staying neutral in the battle between independent refiners and blenders of ethanol. The investment bank put together a weekend report which advocates that ethanol RINs be eliminated, describing the Renewable Identification Numbers as “among the most expensive GHG reduction plans ever designed.” In a statement that is guaranteed to garner a vitriolic response from various renewables organizations, Wells Fargo implied that the D6 RIN costs (for ethanol) were passed through at the pump and now exceed the federal excise tax of 18.3cts/gal on motor fuel. The report even asks the question, “Should the D6 RIN be eliminated and replaced by a higher federal excise tax?” with the implication that RINs “offer an “exceptionally expensive path to CO2 emissions reductions.”