How do

RINs work?

How do RINs work?

The equivalence value determines how many RINs a renewable fuel producer can generate with each gallon of renewable fuel produced. For example, a D4 RIN has an equivalence value of 1.5, so if 1,000 USG of biomass based biodiesel are produced, then 1,500 D4 RINs can be generated by that renewable fuel producer based on qualifying renewable fuel production. RINs are used by obligated parties to satisfy the four obligation categories: cellulosic biofuels, advanced biofuels, biomass based biodiesel and renewable biofuels. The table adjacent shows which D-code RINs can be used to satisfy RVOs.

Not all RINs are created equal

D6 (ethanol) credits are 1:1

10 gallons of ethanol blended into 90 gallons of gasoline = 10 D6 RINs

D4 (biomass-based diesel) credits = 1.5 RINs/gallon

5 gallons of biodiesel blended into 95 gallons of ULSD = 7.5 D4 RINs

D4 (renewable diesel) credits = 1.7 RINs/gallon

5 gallons of renewable diesel blended into 95 gallons of ULSD = 8.5 D5 RINs

RIN "Nesting"

The ability of certain RINs to fulfill multiple compliance categories means that a given type of advanced biofuel RIN can be used in more than one renewable fuel obligation category by an obligated party. Thus, D5 RINs can satisfy the advanced AND the total renewable fuel mandate/compliance obligation.

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Nested structure of renewable fuel categories and RINs

– EPA