The price of the D4 Renewable Identification Number (RIN) has increased 130% so far in 2026. The jump in the price was a response to both a 70% increase in the minimum bio-based diesel volume mandate set by the Environmental Protection Agency (EPA) for 2026 and a higher price premium for soybean oil relative to ULSD (Ultra Low Sulfur Diesel). In today’s RBN blog, we analyze the additional factors at play in the increase, from both theoretical and practical standpoints.
Let’s start with a bit of background about how the mandates for renewable fuels work. As we noted in Something’s Gotta Give, the federal Renewable Fuel Standard (RFS) requires certain minimum volumes of biofuels to be blended into fuel sold in the U.S. The required minimum, known as the Renewable Volume Obligation (RVO), is determined each year by the EPA. A RIN is the regulatory mechanism for tracking the production and blending of renewable fuels and also allows refiners and importers to prove they’ve met their RVO mandates.
To see the importance of the RIN system, let’s consider a bio-based diesel producer who buys used cooking oil — a common feedstock for bio-based diesel production — for $6/gal, processes it into bio-based diesel, then sells it for $3/gal to be blended with refined petroleum diesel for eventual sale as diesel fuel to truckers. With a $6/gal feedstock cost and $3/gal product value, the producer’s profit margin is negative $3/gal. Without a subsidy, production and sales would be zero. The RIN credit is the primary instrument that provides that subsidy.
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To see how this works, think of the RIN as having three functions:
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About the song
“Runaway” was written by Del Shannon and Max Crook, and appears as the sixth song on side one of Shannon’s 1961 debut studio album, Runaway with Del Shannon. Singer/guitarist Charles Westover and his keyboardist, Max Crook, were playing together in a band featured at the Hi-Lo Club in Battle Creek, MI, called Charlie Johnson and the Big Little Show Band. Ann Arbor deejay Ollie McLaughlin helped them secure a record deal with Bigtop Records in New York in 1960. Westover changed his name to Del Shannon, and Crook, who had invented a new electronic keyboard he called a Musitron, changed his name to Maximilian Crook. The recording of Runaway took place at Bell Sound in New York City in January 1961 and features Crook soloing on his Musitron keyboard. Released as a single in February 1961, it went to #1 on the Billboard Hot 100 Singles chart and has been certified Gold by the Recording Industry Association of America. Personnel on the recording were: Del Shannon (vocals), Max Crook (Musitron solo), Moe Wechsler (piano), Al Caiola, Al Casamenti, Bucky Pizzarelli (guitars), Milt Hinton (bass), Joe Marshall (drums) and Bill Ramall (baritone sax). Producer Harry Balk sped up the recording a half-step before it was pressed to vinyl. As a side note, Crook’s Musitron was also used on Shannon’s “Hats off to Larry” and “So Long Baby.” It remained in Crook’s possession until he died in Deming, NM, in July 2020 at 83. The Musitron remains with Crook’s family.
The album, Runaway with Del Shannon, was recorded in January 1961 at Bell Sound in New York City and was produced by Harry Balk. Released on Bigtop Records in June 1961, it went to #32 on the Billboard 200 Albums chart. The album features the first recording of the Doc Pomus and Mort Shuman song “(Marie’s the Name) Latest Flame,” made popular by Elvis Presley. One single, the #1 hit “Runaway,” was released from the LP.
Del Shannon (Charles Weedon Westover) was an American singer, songwriter and musician best known for his signature song and #1 hit single, “Runaway.” He released 15 studio albums, two live albums, five compilation albums and 39 singles. He later worked with Dave Edmunds, and Tom Petty produced his 1982 studio album, Drop Down and Get Me. Shannon died at his home in Santa Clarita, CA, in February 1990 at 55. He was posthumously inducted into the Rock and Roll Hall of Fame in 1999.
"About the Song" -- written by Mickey McMahan , RBN Director of Musicology
