Renewable Identification Numbers. These RINs are environmental credits that trade in the open market, and are the mechanism by which the U.S. Environmental Protection Agency monitors compliance with the Renewable Fuels Standard. Obligated refiners and importers of transportation fuels must purchase a number of these RINs each year, in order to be in compliance with content thresholds established by the Renewable Volume Obligation (RVO). RINs prices depend on their corresponding D-Code, which classifies renewable fuels by feedstock and greenhouse gas reduction potential. D3 = cellulosic biofuels D4 = biomass advanced biofuels D5 = advanced biofuels D6 = renewable fuels D7 = cellulosic fuels. D3 RINs are the most flexible, because they can be used to satisfy compliance with the lower D-Codes, and therefore tend to fetch the highest prices.
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