US EPA to issue biofuel mandate proposal soon to quell RINs market: Wheeler

Washington — The US Environmental Protection Agency will make a Renewable Fuel Standard announcement soon that should "quell the RIN markets," Administrator Andrew Wheeler said Wednesday. This move will be in response to a recent appeals court ruling challenging its widespread use of small-refinery waivers.

Wheeler testified to the US House Committee on Appropriations that the EPA was still working through the legal issues in the January 24 ruling by the US Court of Appeals for the 10th Circuit, which said the agency "abused its discretion" when issuing the so-called hardship waivers to refineries that process less than 75,000 b/d.

S&P Global Platts assessed D6 ethanol RINs for 2020 compliance at 35.25 cents/RIN Wednesday, down 1.25 cents from Tuesday. D4 biodiesel RINs for 2020 compliance were assessed 0.25 cent higher at 49 cents/RIN.

D6 RINs have jumped 26.25 cents since the 10th Circuit ruling on January 24, while D4 RINs have risen 5 cents in the same period.

RINs are tradable credits the EPA issues to track production and use of alternative transportation fuels. For corn-based ethanol, one gallon of ethanol yields one RIN.

Wheeler said EPA and Department of Justice lawyers were working on the response to the 10th Circuit, which is due by next week.

"We will be announcing something shortly, and hopefully that announcement will help quell the RIN markets," he said.

Representative Chris Stewart, Republican-Utah, asked what else the agency was doing to keep RINs prices down.

"We're looking at other avenues to provide some stability to the program and to try to make that sure we don't have the wild fluctuations in the RIN price market," Wheeler said.