RINs: Terminology Explained

In the process of looking something else up I ran across RINs: RINs are "renewable identification numbers.

The EPA requires that each gallon of renewable fuel produced have a unique serial number attached to it.

Is that not incredible? Each gallon of renewable fuel produced must have a unique serial number attached to it.

So, those folks producing ethanol must have a unique serial number attached to every gallon -- every gallon -- of ethanol produced. I find that amazing.

And then producers can trade RINs. If a producer produces more renewable energy than needed, they can trade them to another producer who needs them to make their quotas. RINs have become a currency in the fuels industry. Sort of like "cap and trade." ENRON would have made a killing trading RINs. 

For more about RINs, this is a great site: Got RINS? At renewableenergyworld.com.

One more reason I love maintaining a blog: the things one runs across.