AFPM Encouraged by EPA Proposed Changes to Biofuel Mandates

July 05, 2017

WASHINGTON – Following the release of the 2018 Renewable Volume Obligations (RVOs) for the Renewable Fuel Standard (RFS), AFPM President and CEO Chet Thompson released the following statement:

“We are pleased the Environmental Protection Agency (EPA) has proposed a reduction in the amount of biofuels that must be used in the U.S. This is further recognition that the RFS is broken and not functioning how Congress originally envisioned.

“Acknowledgment of the high cost of compliance has been a long time coming, and we are grateful that this EPA proposal comes closer to reflecting what the market has shown year after year – the mandated levels of advanced, cellulosic, and biodiesel in the RFS are unrealistic. Nevertheless, the mandates for conventional and advanced biofuels are still too high – either exceeding demonstrated domestic biofuel production or the ability to use more biofuel than vehicles, engines, and the fueling infrastructure can handle.

“We are encouraged that EPA has signaled it won’t pursue policies that push mandates beyond what the market can absorb, is committed to transparency and reducing manipulation in the Renewable Identification Number (RIN) market, and wants to ensure we are not incentivizing imported biofuels over American refined gasoline and diesel.

“Today’s proposal shows that EPA understands the RFS shortfalls, and that it’s determined to implement a workable and equitable program with the tools at its disposal. Ultimately, however, Congress must step in and repeal or significantly reform this broken program, which has failed to deliver on its policy objectives.”

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