Current Market Conditions, Blend Wall Concerns, RFS Reset

Biodiesel RINs are up six percent from last Monday and 181 percent above a year ago.  Ethanol RINs are seven percent higher and trading 227 percent over values from a year ago. EPA and the White House once again pushed back getting the 2021 and 2022 RVO’s in place.  The 2021 RVO should have been finalized in November of 2020 and the proposed 2022 RVO should have been released by the end of June 2021. Lack of clarity surrounding renewable volume obligations continues to support elevated RIN Values.  Blend wall concerns within the implied ethanol mandate could mean significant volume requirements may fall to the D4 biodiesel/renewable diesel category. 

The EPA is concerned and looking to mitigate fallout from refiners claiming to suffer hardship from meeting their obligations.  It appears the EPA is struggling to find a way follow statutory guidelines while attempting to…