RIN prices posted modest losses over the course of May as stronger biodiesel margins weighed on D4 credits, leading to sympathetic losses in D6s. D3 RINs posted a robust recovery after stalling out in late April. Speculation that the eRIN will not be included in the finalized ‘Set Rule’, or that eRIN obligation will be trimmed dominated the marketplace. Market participants are highly anticipating an increase in the advanced category following efforts to drive obligations more in line with actual production capacity.
- The EPA delivered the final RFS ‘Set Rule’ to the White House Office of Management and Budget (OMB) on May 15. The EPA is now required to issue a final RFS for 2023, 2024, and 2025 by June 14
- D4 RIN generation slowed modestly yet held well above the top of the five-year range. D4 output was up 104MM credits on year-ago levels, or 21%.
- D3 RIN generation also came in over the top of the five-year range for the month of April, running 10.9MM credits over 2022 levels, up 21% on the year.
- Earlier in the year, an SRE hardship waiver by United Refining was denied by the Third Court.
