NBB Opposes RIN Reform Proposals, Supports Opening Market to E15

Apr 30, 2019, 8:52 AM
NBB asks EPA to hold RIN reforms unless there is evidence of a need


 Contact: Paul Winters

WASHINGTON, DC – The National Biodiesel Board (NBB) today filed formal comments on the Environmental Protection Agency’s proposed Modifications to Fuel Regulations to Provide Flexibility for E15; Modifications to RFS RIN Market Regulations rules. On behalf of members, NBB expressed appreciation for the agency’s effort to enable growth of biofuel use by allowing year-round E15 sales. However, NBB respectfully disagreed with EPA’s proposal to modify RIN market regulations without first showing data-based evidence of problems within the RIN market.

“The proposed RIN market reforms are unnecessary, as EPA has yet to see data-based evidence of RIN market manipulation. Reforming a system that, while certainly not perfect, is working as intended with no evidence of manipulation has the potential to disrupt and even undermine the system that obligated parties use to demonstrate compliance with the RFS,” NBB writes in the comments.

“We ask that the agency use this Proposed Rule as an opportunity to provide transparency to the small refinery exemption process and address the timing of granting these exemptions,” NBB continues.

“Increasing transparency in the small refinery exemption process is what is actually needed to prevent manipulation in the RIN market,” NBB concludes.

Kurt Kovarik, NBB’s Vice President of Federal Affairs, added, “Right now, retroactive small refinery exemptions are having the most negative impact on RIN markets, destroying demand for more than 360 million gallons of biodiesel and renewable diesel. Rather than unneeded reforms that could further disrupt the RIN market, EPA should increase transparency around the small refinery exemptions, end its practice of encouraging retroactive petitions, and ensure that annual volumes that it set are met.”

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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