Renewable Fuel Standard (RFS):

The Environmental Protection Agency's delays in setting the 2021 Renewable Fuel Standard obligations create uncertainty for the biodiesel and renewable diesel industry. While the agency provided compliance flexibility to oil refineries, it created addtional uncertainty for biofuel producers by indicating to reporters that it would retroactively slash RFS volumes for both 2020 and 2021.

Please contact your Representative and Senators and update them on the situation through this form. As the 117th Congress considers legislative options to address environmental and economic issues, this is an opportunity to let lawmakers know that support for the RFS helps biodiesel and renewable diesel producers.

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As our members and industry supporters communicate with Washington policy makers, the media, and the public, NBB provides the resources to the right and works with them to amplify these points:

  • EPA knows that RFS deadlines are important to all program stakeholders. Biodiesel and renewable diesel producers particularly rely on market signals from annual rules.
  • The missed deadlines create additional uncertainty for biodiesel and renewable diesel producers, who have set goals for continued growth through 2030.
  • EPA destroyed demand for hundreds of millions of gallons of biodiesel over the past several years by abusing small refinery exemptions. EPA has many options to repair the damage to the biodiesel industry and is required to do so.
  • Each small refinery exemption can eliminate demand for an entire biodiesel facility’s annual production. A “small” oil refinery can produce up to 3 million gallons of fuel per day. Its annual RFS obligation would include 20 million gallons of biodiesel, the amount some small plants produce in a year.
  • A U.S. Court of Appeals decision from January 2020 limited EPA’s authority to grant small refinery exemptions. EPA should immediately apply the court’s ruling to all pending and future exemptions.
  • EPA also ignored a 2017 U.S. Court of Appeals order to reconsider a waiver of 500 million gallons of renewable fuel. It is long past time for the agency to address the shortfall.

 


Focus on RFS News




NBB Calls on DOJ to Maintain Integrity of RFS, Reject PES Settlement

Mar 26, 2018, 4:14 PM
Proposed settlement would allow PES to escape RFS obligations, harming renewable fuels industry

NEWS
FOR IMMEDIATE RELEASE

 Contact: Kaleb Little
202-737-8801
klittle@biodiesel.org

WASHINGTON, D.C. – The National Biodiesel Board called on the Department of Justice to reconsider its proposed settlement allowing PES Holdings to escape the vast majority of their 2016–2017 obligations under the Renewable Fuel Standard (RFS). The proposed settlement would harm the renewable fuels industry and undermine the intent of the RFS program by excusing more than 70 percent of the company’s compliance obligations for the two-year period.

“While PES continues to blame the RFS for their woes, the fact is, the bankruptcy is a mess of their own making. Poor management and a failure to respond to changes in the crude oil market is to blame,” said Kurt Kovarik, NBB’s vice president of federal affairs. “PES should not be rewarded for deliberately failing to comply with the decade-old Renewable Fuel Standard. Doing so is akin to rewarding a toddler in the midst of a temper tantrum. Instead, the government should hold PES to the same renewable volume obligation as all other refiners. Not doing so could severely hinder the RFS’s goals of enhancing energy security, protecting the environment, and building our nation’s rural economy.”      

NBB highlighted two key components in comments to the DOJ submitted today. First, the RFS holds parent companies liable for the compliance obligations of their subsidiaries. Thus, PES’s corporate parents Carlyle and Sunoco can be required to comply with the RFS obligations incurred by PES. EPA has not explained why it is abandoning that avenue for ensuring complete fulfillment of PES’s obligations. Second, the renewable volume obligations (RVOs) under the RFS cannot be discharged in bankruptcy. The RFS creates an affirmative duty for obligated parties to blend or use biofuels or to buy credits from others who have done so. Such a duty persists through the bankruptcy because it cannot be resolved by a payment to the Government.

“At the very least, a finalized settlement should require PES or its parent companies to comply with a far greater share of its RVOs,” Kovarik said. “The RFS is working to drive billions of gallons of cleaner-burning advanced biofuels and thousands of jobs throughout the country, and its integrity should not be undermined.”

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. Biodiesel supports roughly 64,000 jobs across the United States.

The National Biodiesel Board is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers and fuel distributors.

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For more about biodiesel, visit www.biodiesel.org

NBB’s comments submitted to the Department of Justice can be found here.

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