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RENEWABLE FUELS ASSN SUPPORTS EPA REALLOCATION PROPOSAL, CALLS FOR REFORM OF SRE PROGRAM
Source: Renewable Fuels Association news release

Washington, DC -- At a hearing today held by the U.S. Environmental Protection Agency, the Renewable Fuels Association endorsed EPA's proposed reallocation plan to restore renewable fuel volumes lost to recent small refinery exemptions. RFA also continued its call for wholesale reform of the refinery exemption program.

"Congress intended small refinery exemptions to provide temporary relief to refiners facing genuine disproportionate economic hardship--not to become a permanent entitlement," RFA President and CEO Geoff Cooper said. "Yet, EPA continues granting exemptions under a flawed scoring matrix, despite its own findings that refiners generally recover RIN compliance costs through wholesale fuel prices. These unwarranted exemptions undermine the integrity of the RFS, reduce renewable fuel demand, and discourage investment by renewable fuel producers, farmers, and retailers who have invested billions to support this program."

Still, Cooper said, if EPA is going to continue granting SREs en masse, the agency has a duty to fully reallocate waived gallons lost to the exemptions.

"We commend Administrator Zeldin and the Trump administration for honoring their commitment to full reallocation and taking steps to mitigate the harm caused by these exemptions," he added. "RFA strongly supports EPA's proposal to reallocate 100 percent of the additional 770 million RINs exempted beyond the volume anticipated in the Set 2 rule. Without full reallocation, the RINs freed up by these exemptions can be carried forward to satisfy future obligations, displacing demand for newly produced renewable fuels, and eroding the historic 2026 and 2027 standards established by this administration."

Cooper also noted the strong profits refinery companies, large and small, are currently seeing while consumers are facing high fuel prices.

"At a time when gasoline and diesel supplies are tightening, refiners are enjoying strong profit margins, and Americans are still paying too much at the pump, we should be encouraging greater use of affordable, American-made renewable fuels," he said. "Full reallocation is essential to protecting the economic and consumer benefits the RFS was designed to deliver."

Click here for RFA's testimony, and here for the RFA news release when the reallocation plan was announced last month.

About the RFA

Since 1981, the Renewable Fuels Association has been the leading trade association for America's ethanol industry, working to drive expanded demand for American-made renewable fuels and bioproducts worldwide.


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