The Renewable Fuels Association (RFA) has sent a letter to the US Environmental Protection Agency’s (EPA) acting administrator Andrew Wheeler regarding the biomass-based biodiesel blending obligations for 2021 and 2022.
With the obligations being calculated for a release in spring 2019, which is deemed in the letter as the ‘reset rule’, the RFA has requested that the EPA account for three separate entities.
The first, according to the RFA, is the 500 million gallons of renewable fuel that was improperly waived from the 2016 standards.
Secondly, the estimated 232 million Renewable Identification Number (RIN) ‘write-off’ as part of the Philadelphia Energy Solutions Refining and Marketing bankruptcy settlement. Biofuels International reported on the initial bankruptcy claim after the Philadelphia refinery reportedly owed over $100 million (€87.8 million) in RINs to the EPA.
Lastly, the 2.25 billion RINs attributable to 48 small refinery exemptions granted for compliance years 2016 and 2017.
In the letter, the RFA claim that because of these three considerations, many ethanol plants have recently idled, shut down or announced layoffs. It also alleges that American farmers have been affected by the hurt demand and prices.
Concluding, the association describes the reset rule as a ‘perfect vehicle’ for the EPA to adjust the obligations, ensuring that the statutory volumes are met.
The full letter can be read here.