AFPM Welcomes EPA Move to Address Biodiesel Fraud but Greater Fix is Needed

April 19, 2013

WASHINGTON – The American Fuel & Petrochemical Manufacturers (AFPM) and American Petroleum Institute (API) filed comments in response to the Environmental Protection Agency’s (EPA) proposed biofuel Quality Assurance Program.


“EPA’s proposal is a welcome attempt to address the significant fraud in the biofuel markets, but will not solve the systemic problems caused by the RFS biofuel mandates. These mandates will harm consumers as the EPA forces the consumption of increasing amounts of biofuels that are incompatible with today’s cars and refueling facilities,” said AFPM President Charles T. Drevna.


The comments provide mixed reviews of EPA’s proposal to fix the RIN problem. The refining group supports the agency’s decision to provide refiners with an affirmative defense to the liability created by fraudulent biofuel producers, but the scope of the EPA proposal is much broader than the problem it purports to solve. The rule follows EPA’s discovery of more than 140 million fraudulently created biodiesel RINs and its decision to assess fines against refiners who purchased these RINs from EPA-registered biodiesel producers.


Drevna continued, “The industry appreciates EPA’s efforts to improve the integrity of the program and see this as a positive move to address the larger problem of the structure and workability of the RFS program. While this rule provides some assurance that EPA is willing to address problems with the RFS, we view it as merely a band-aid on a gaping wound in need of a much more drastic measure.”


Both groups urge EPA to resist the temptation to create a third-party enforcement scheme that extends beyond the production facility. Despite this attempt to address fraudulent RINs, significant problems still exist with the RFS and the only resolution is for Congress to repeal it.


View the full comments here.


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