Web exclusive posted March 17, 2009, at 3:01 p.m. CST
Contrary to a previous Biodiesel Magazine report (see below) that stated underground mines can receive and sell renewable identification numbers (RINs), EPA rules currently require the RINs be retired for fuel destined for off-road use.
The following clarification of the U.S. EPA rules was found in the question and answer section of the EPA Web site.
The EPA believes that most biodiesel will ultimately be used as motor vehicle fuel, and therefore biodiesel producers can assume the biodiesel meets the EPA definition of renewable fuel and can assign RINs to it without tracking its ultimate use. However, if a renewable fuel is known to be destined for use in a non-road application, such as agricultural equipment or underground mining equipment, it’s not considered a motor vehicle fuel and isn’t a renewable fuel that is valid for renewable fuel standard(RFS) compliance, and thus can’t receive RINs. In cases where the fuel has been assigned RINs, those RINs must be retired and reported.
For biodiesel and other renewable fuels destined for motor vehicle use, there is a provision for the separation of the RINs from the fuel, which then can be sold separately. However, that separation of RINs can’t be done with fuel destined for off-road use. Recently, RINs have been trading at around 15 cents per gallon, which has the industry exploring new market opportunities.
