Ethanol Blog

RINs Slide after EPA Issues 2019 RVO Proposal

Tuesday morning price gains for D4 and D6 renewable identification numbers were erased in the afternoon following the announcement by the Environmental Protection Agency of proposed Renewable Volume Obligations for 2019 under the Renewable Fuels Standard.

In addition to announcing the 2019 RVO, EPA reported the availability of 3.06 billion carryover RINs, up from its prior estimate of 2.22 billion.

EPA also said it is "currently considering a handful of ideas, including: prohibiting parties other than obligated parties from purchasing separated RINs; requiring public disclosure if a party holds a certain percentage of the RIN market; and/or requiring obligated parties to retire RINs for compliance purposes on a more frequent basis."

Trade sources pegged 2018 D6 RINs Tuesday afternoon at 26.0 cents for a 3.0-cent loss on the day, and below deals up to 30.0 cents on the session. 2017 D6 RINs declined 2.0 cents to 20.0 cents, pegged last at a 6.0-cent discount to 2018 D6 RINs. 2018 D4 biomass-based diesel RINs ended at 50.0 cents, steady on the day but down 2.5 cents from a deal as high as 52.5 cents, sources said.

Dawn Gallagher can be reached at dawn.gallagher@dtn.com

(ES/)

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