Biodiesel industry continues progress to stabilize RIN market
As the RFS continues to come under fire, the biodiesel industry is actively striving to improve the program. One of the criticisms that opponents use to attack the RFS and characterize it as an ineffective policy is the handful of isolated fraud cases that have impacted the RIN markets. That is why the National Biodiesel Board’s RIN Integrity Task Force has worked diligently to provide a solution to the uncertainties in the RIN market.
The U.S. biodiesel industry took a large step towards stabilizing the RIN market with the launch of the Genscape’s trademarked RIN Integrity Network dashboard in late May. NBB’s RIN Integrity Task Force, made up of obligated parties, blenders, retailers, and small and large biodiesel producers, helped guide the development of the voluntary, private-sector program that would provide transparency and integrity to the marketplace.
The RIN Integrity Network dashboard allows obligated parties who subscribe to the Genscape service to do their due diligence with real-time information on participating biodiesel producers through a user-friendly, online information service. This dashboard allows subscribing parties to cheaply and easily tell whether an individual biodiesel producer's RINs have been verified through the Genscape system, which includes ongoing monitoring through physical equipment, data from producers and feedstock providers, and EMTS monitoring.
Currently there have been more than 70 full registrations, and 15 obligated parties have signed up to trial the service.
Hearing concerns from the industry on cost, NBB has worked hard to encourage Genscape to develop a pricing structure that is both effective and affordable and shares the cost among stakeholders throughout the entire RIN system. The structure is flexible to fit individual producer needs with the lowest risk option being a $1,000 annual fee plus a penny per RIN sold, capped at $40,000. Other options include a higher annual fee with reduced variable pricing based on RINs sold. All pricing structures reflect a 20 percent discount to NBB members.
Recently, Genscape announced a partnership with Lee Enterprises Consulting that would add valuable RIN education, fuel quality, and additional consulting services to the program.
Additional information can be found at info.genscape.com/RIN.