RIN talk

Source: By MATTHEW CHOI, Politico • Posted: Monday, September 20, 2021

Democratic members of Pennsylvania’s congressional delegation are calling on the Biden administration to alter the Renewable Identification Number credits markets to protect union jobs at independent refineries, who typically purchase the credits to meet biofuel obligations under the Renewable Fuel Standard. They write that current high RIN prices will force Monroe Energy’s Trainer refinery to spend twice as much to comply with the program as was spent to purchase the entire company 10 years ago.

The lawmakers call on the administration to examine the financial challenges faced by independent refiners associated with the RFS — including weighing the reconfiguration of the RFS compliance system — to recognize the impact Covid-19 has had on refiners. The letter was signed by Democratic Sen. Bob Casey and Reps. Brendan Boyle, Dwight Evans, Mary Gay Scanlon, Conor Lamb, Susan Wild and Madeleine Dean.

Taking a look: That letter arrives as EPA’s Office of Inspector General signaled Friday it would begin an audit on the agency’s oversight of the RINs market. The audit is part of the OIG’s 2021 plan that called for looking at whether EPA provides reasonable assurance that the credit market complies with its regulations and guidance. “The OIG’s objective is to determine whether the EPA’s Moderated Transaction System and Quality Assurance Program include controls to identify and reduce the generation and trading of invalid RINs that are used to demonstrate compliance with renewable fuel standard,” the OIG said. It anticipates the audit will correct problems that increase fraud risks and reduce the positive environmental impacts of the RFS. EPA’s enforcement actions have so far largely centered on invalid biodiesel RINs.