The Spread Between the Biodiesel RIN and Ethanol RIN Narrows

The spread between the 2020 ethanol RIN (E20) and the 2020 biodiesel RIN (B20) has narrowed noticeably since the US 10^th Circuit Court of Appeals made its January 24 ruling that the Environmental Protection Agency (EPA) inappropriately granted waivers to three small refiners within its jurisdiction.  

Many believe that this will be applied to all small refiners and may reduce the number of exemptions granted to only a handful, similar to what was seen in 2015.  If this were to happen, there would be a dramatic increase in the amount of ethanol being blended into the gasoline pool.  The increase would be large enough to cause concern over the 10 percent blend wall being breeched.  The market feels that refiners can only blend up to a10 percent blend for gasoline. 

If the renewable volume…