Renewable Identification Numbers (RINs)
Kempstar is an independent commodity trading firm focused on the distribution, supply and trading of liquid fuel throughout the United States.
We trade energy: we create markets for fuel products; we deliver railcars, safely, on-specification and on-time; and we engineer innovative financing structures to the benefit of our customers.
A RIN or Renewable Identification Number is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the United States Environmental Protection Agency’s Renewable Fuel Standard (RFS) implemented according to the Energy Policy Act of 2005.
Under the Energy Policy Act of 2005, the EPA is authorized to set annual quotas dictating what percentage of the total amount of motor fuels consumed in the US must be represented by biofuel blended into fossil fuels. Companies that refine, import or blend fossil fuels are obligated to meet certain individual RFS quotas based on the volume of fuel they introduce into the market. By fulfilling these requirements, the EPA projects that the industry will collectively satisfy the overall national quota they set. To ensure compliance, obligated parties are periodically required to demonstrate they have met their RFS quota by submitting a certain amount of RINs to the EPA. Because each of these RINs represent an amount of biofuel that has been blended into fossil fuels, the RINs submitted to the EPA by obligated parties are a quantitative representation of the amount of biofuel that has been blended into the fossil fuels used in America.