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
“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.”
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.