EPA, CFTC reach accord on improving renewable fuels market
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WASHINGTON, Mar. 17, 2016 - EPA and the Commodity Futures Trading Commission today announced a memorandum of understanding (MOU) aimed at improving regulation of the Renewable Identification Numbers (RINs) market.
The MOU calls for CFTC “to advise EPA on techniques that could be employed to minimize fraud, market abuses, or other violations” in the RINs market, according to the MOU's language. The EPA will share information with CFTC, which, in turn, will advise EPA on the correct course of action.
In a statement, Renewable Fuels Association President and CEO Bob Dinneen said he was “encouraged” to see the coordination and cooperation between the two entities.
“For several years, RFA, members of Congress, and other stakeholders with an interest in the success of the RFS have been requesting that EPA coordinate with CFTC to take steps to prevent manipulation and increase transparency in the RIN market,” Dinneen said. “Through this agreement, we believe CFTC will provide valuable expertise and insight that will improve the functionality and clarity of the RIN system for all market participants and the public.”
The EPA defines RINs as the “currency” of the Renewable Fuel Standard (RFS). In the RINs market, renewable fuels producers generate RINs, which are then traded by the market participants and ultimately retired by final obligated parties.
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