US financial regulator CFTC has pulled the US renewable fuels and RINs markets into its orbit after signing a Memorandum of Understanding (MoU) to help EPA investigate potential “fraud, market abuse, or other violations” in the renewable fuels markets which it oversee.
EPA has agreed to share information, including proprietary business information, with CFTC. CFTC has undertaken to advise EPA on techniques to minimize “frauds, market abuses or other violations” and to conduct “appropriate” oversight in RIN and renewable fuel markets. Being able to review this information on the RIN and renewable fuel markets will allow CFTC to increase its understanding of the “operation of and participants in those markets,” the MoU says.
Third parties will not be allowed to “suppress, or exclude” any information shared after the document was co-signed on 15 March from being subject to an information request under the agreement.
US fuel suppliers currently report their compliance with the RFS2 mandate by reporting their RIN transactions into the EPA’s moderated transaction system (EMTS). EPA publishes monthly updates on the number of RINs generated for each biofuel category outlined under the RFS2 “nested” system.
MS – 18/03/2016