Renewable Identification Number
Encyclopedia
A Renewable Identification Number (or RIN) is a serial number assigned to a batch of biofuel
for the purpose of tracking its production, use, and trading as required by the United States Environmental Protection Agency
's Renewable Fuel Standard implemented according to the Energy Policy Act of 2005
.
Under the Energy Policy Act of 2005, the EPA is authorized to set annual quotas dictating what percentage of the total amount of motor fuels consumed in the US must be represented by biofuel blended into fossil fuels. Companies that refine, import or blend fossil fuels are obligated to meet certain individual RFS quotas based on the volume of fuel the introduce into the market. By fulfilling these requirements, the EPA projects that the industry will collectively the satisfy the overall national quota they set. To ensure compliance, obligated parties are periodically required to demonstrate they have met their RFS quota by submitting a certain amount of RINs to the EPA. Because each of these RINs represent an amount of biofuel that has been blended into fossil fuels, the RINs submitted to the EPA by obligated parties are a quantitative representation of the amount of biofuel that has been blended into the fossil fuels used in America.
Biofuel
Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...
for the purpose of tracking its production, use, and trading as required by the United States Environmental Protection Agency
United States Environmental Protection Agency
The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...
's Renewable Fuel Standard implemented according to the Energy Policy Act of 2005
Energy Policy Act of 2005
The Energy Policy Act of 2005 is a bill passed by the United States Congress on July 29, 2005, and signed into law by President George W. Bush on August 8, 2005, at Sandia National Laboratories in Albuquerque, New Mexico...
.
Under the Energy Policy Act of 2005, the EPA is authorized to set annual quotas dictating what percentage of the total amount of motor fuels consumed in the US must be represented by biofuel blended into fossil fuels. Companies that refine, import or blend fossil fuels are obligated to meet certain individual RFS quotas based on the volume of fuel the introduce into the market. By fulfilling these requirements, the EPA projects that the industry will collectively the satisfy the overall national quota they set. To ensure compliance, obligated parties are periodically required to demonstrate they have met their RFS quota by submitting a certain amount of RINs to the EPA. Because each of these RINs represent an amount of biofuel that has been blended into fossil fuels, the RINs submitted to the EPA by obligated parties are a quantitative representation of the amount of biofuel that has been blended into the fossil fuels used in America.