Understanding the Renewable Fuel Standard program and its viability

Lack of a commercial-scale cellulosic ethanol industry has led to a Renewable Fuel Standard conundrum: Where do companies complying with the law find gallons or the renewable identification numbers, or RIN?  The U.S. Environmental Protection Agency issued waivers for cellulosic ethanol in the past decade because the industry has been slow to develop. Refiners and importers of gasoline and diesel have faced significant costs. Cellulosic credits are valued four times higher than corn-based ethanol credits."An industry organization leader who's now retired said a few years ago that it was easier to find a pink unicorn than the cellulosic fuel still required to be blended, even if at a lower volume," said DTN Energy Editor Brian Milne.The 38-digit RIN attached to a gallon of biofuel is important to both energy and agricultural markets.Gasoline refiners and importers must comply with the RFS by buying and submitting credits to the EPA, or face potentially heavy fines.