Renewable Fuels are fuels produced from renewable resources. Examples include biofuels (e.g. Vegetable oil used as fuel, ethanol, methanol from clean energy and carbon dioxide or biomass, and biodiesel) and Hydrogen fuel (when produced with renewable processes).
Renewable Identification Number (RINS)
Renewable fuel is eligible to generate Renewable Identification Number (RIN) credits when it is produced with the intent to be used as transportation fuel, heating oil, or jet fuel in the contiguous 48 states and Hawaii;
Each RIN credit generated represents one ethanol-gallon equivalent of qualifying renewable fuel. These credits are used for compliance and are the “currency” of the Renewable Fuel Standard (RFS) program needed for blenders and refiners of fossil fuels to fulfill the EPA-specified Renewable Volume Obligations (RVOs); and
Renewable Fuel Standard requires blenders and refiners to annually purchase and retire RINs based on the volume of gasoline and/or diesel produced to satisfy their RVO requirement, which is calculated and established by the EPA annually.
Low Carbon Fuel Standard (LCFS)
LCFS is a rule enacted to reduce carbon intensity (CI) in transportation fuels as compared to conventional petroleum fuels, such as diesel and gasoline. The lower the CI score, the more beneficial impact that project has on the environment, and therefore, the more valuable each unit of energy;
LCFS credits can be generated when renewable fuels are used as a transportation fuel in the states of California and Oregon (and soon to be Washington). When renewable natural gas (RNG) is dispensed as a transportation fuel in one of these states, both RIN and LCFS credits can be generated as these credits can be stacked; and
California allows the generation of LCFS credits by projects: