PBF Energy chairman comments on Renewable Fuels Standard PBF Energy Inc.’s Executive Chairman, Thomas D. O’Malley, commented, in an April 12 article published by Platts, on the rising cost of compliance with the Renewable Fuels Standard through the purchase of RINs. RINs are renewable identification numbers attached to each gallon of renewable fuel produced and are used to ensure obligated parties are using the required quantities of renewable fuel in on-road fuels as mandated by the United States Environmental Protection Agency and the RFS. PBF Energy disclosed that it had expected to spend approximately $120M on RINs in 2013 and that amount could increase by $30M-$40M due to the rising cost of RINs. PBF Energy believes that the additional costs to producers associated with RINs will, unfortunately and inevitably, be passed on to consumers as the industry and consumers are effectively forced to comply with the government’s policy of subsidizing renewable fuels.
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