The National Biodiesel Board rolled out its short-term solution to help restore integrity to the biodiesel RIN (renewable identification number) market, as advised by the RIN Integrity Task Force recently established by NBB chairman Gary Haer and laid out to NBB members in a “town hall” style meeting last week.

The NBB began investigating the development of its own RIN integrity program in mid-2011. NBB told Biodiesel Magazine that in fall of 2011 a development group approached NBB with the precursor of the Genscape program and asked for NBB’s support and guidance in developing a program to meet NBB member needs. At that time, there were no other RIN integrity programs in the public domain, according to the NBB. 

The board did six months of due diligence with Genscape “to develop a program that was accessible and affordable to NBB members, and had the best chance of being accepted by obligated parties and the RIN markets,” NBB said, adding that the system reflects broad-based input from biodiesel producer members and leaders.

The RIN task force has met twice since its formation, and the 12-member panel agreed that the overarching goal is the need to establish stability in the RIN marketplace, including short- and long-term implications. “In the long-term, the task force will work to introduce a comprehensive and robust RIN integrity program,” NBB said. “In the short-term, the group and NBB are focused on ways to reopen RIN markets to small and medium sized producers who have generated a significant number of RINS but are effectively locked out of the system due to instability.”

The first step of this effort is an audit system to verify RIN integrity through Genscape. The first phase includes a web-based dashboard that promotes audited producers to obligated parties. Audits are based on task-force-approved requirements and would validate 2012 RINs with an option of also including 2011 RINs, according to NBB. Audits can begin immediately, with the dashboard set to launch April 30.

The second phase of the program includes a real-time data monitoring service that will be available to obligated parties through a paid subscription to the dashboard as well. It will serve as a tool for obligated parties to do their due diligence in verifying the validity of biomass-based diesel RINs. The program will be completely voluntary, NBB said, adding that it does not preclude other solutions in the marketplace.

One such solution was developed by Lee Enterprises Consulting, which introduced a RIN verification program prior to the National Biodiesel Conference in early February.  “We have both phase one (initial verification) and phase two (monthly monitoring) already in place,” said Wayne Lee, CEO of Lee Enterprises. “I have spoken with both the NBB and Genscape about their program and we may find some synergies in working together.” Lee said they are just entering those discussions and he is not sure if or how they will work out.

“As the world’s largest alternative fuels consulting group, our primary concern is for the small producer,” Lee said. “Under all these programs, the producer is paying for these verification services. Some of these programs are also charging the obligated parties to purchase the lists of producers that have been verified. I having a bit of trouble with the concept that a small producer should pay to have a verification program done, and then having that program charge obligated parties for the information. My initial thought is that any such program should be getting the client out to as many obligated parties as possible, so charging them may be an impediment. At this point, I am not certain if we will be working together in the future, but our program is out and available now.” Lee Enterprises’ program is called RIN 9000.