NBB Asks EPA to Reform Small Refinery Exemptions at Public Hearing

Mar 29, 2019, 9:18 AM
NBB executives, members offer testimony at RIN Reform rule hearing


 Contact: Paul Winters

YPSILANTI, MI – Today, representatives from the National Biodiesel Board (NBB) and its member companies testified at the Environmental Protection Agency’s (EPA) public hearing on the proposed Modifications to Fuel Regulations to Provide Flexibility for E15 and to Elements of the Renewable Identification Number (RIN) Compliance System. NBB asked the agency not to adopt the proposed changes to the RIN system as it finalizes the E15 rule.

“EPA must change its practice of encouraging retroactive small refinery exemption petitions,” Kurt Kovarik, NBB’s Vice President of Federal Affairs, testified. “We ask that the agency use this opportunity to instead address the timing of small refinery exemption petitions. If EPA finds that it can easily propose a quarterly compliance deadline in the RIN reform proposed rule, the agency should feel just as comfortable applying a similar reasonable administrative requirement that small refineries submit petitions before the end of the compliance year.”

NBB Chairman Kent Engelbrecht also testified, stating, “We appreciate EPA taking claims of RIN market manipulation seriously. But because the agency has yet to see data-based evidence of such behavior, we recommend that EPA not finalize the RIN reform portion of the proposed rule.”

Roy Strom, President & CEO of W2Fuel, LLC, an NBB member, stated at the hearing, “To succeed, the biodiesel industry needs signals that allow us to forecast market demand. While the RVO should be the forecast, the current practice of granting retroactive small refinery exemptions undermines that signal.”

Chris Peterson, President of HERO BX, testifying on behalf of NBB, said, “Unfortunately, EPA has not provided any evidence of RIN market manipulation to warrant any of its proposed reforms. The reforms themselves could further lead to market uncertainty and financial losses.”

David Cobb, NBB Director of Federal Affairs, added, “EPA acknowledges within its proposal that there is no evidence of RIN market manipulation to date. Rather than solve a problem, the proposed RIN system changes could potentially disrupt the RIN market and even undermine the RFS.”

On Thursday, March 28, EPA granted a 35th small refinery exemption for 2017, upping the total volume of exempted gasoline and diesel for that year to 17.05 billion gallons. The exemptions have destroyed demand for more than 360 million gallons of biomass-based diesel over the past 12 months.

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. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.


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