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February 8, 2019

RFA President And CEO Appeals To EPA Administrator On RFS Reset Rule

Lynn L Bergeson

By Lynn L. Bergeson

On January 29, 2019, the Renewable Fuels Association (RFA) President and Chief Executive Officer (CEO), Geoff Cooper, submitted a letter to EPA Acting Administrator, Andrew Wheeler, regarding the Renewable Fuel Standard (RFS) Reset Rule. Addressing EPA’s final RFS rule that would be released in Spring 2019 resetting statutory RFS blending obligations for 2020, 2021, and 2022, as well as biomass-based diesel blending obligations for 2021 and 2022, the letter reflects RFA’s expectations as EPA completes the rulemaking. RFA would like EPA to use the Reset Rule “as an opportunity to adjust future implied blending obligations for conventional renewable fuels” accounting for three considerations:

  1. The 500 million gallons of renewable fuel waived improperly from the 2016 standards;
  2. The 232 million Renewable Identification Number (RIN) write-off from the Philadelphia Energy Solutions Refining and Marketing, L.L.C. bankruptcy settlement; and
  3. The 2.25 billion RIN values attributable to 48 small refinery exemptions granted in 2016 and 2017.

In his letter, Mr. Cooper claims that these three considerations resulted in ethanol plant idling/shutdown, layoffs, and decreased demand and prices for farmers. Mr. Cooper, therefore, requests that the aforementioned considerations be accounted for in the implementation of the Reset Rule, stating that the rule “provides the perfect vehicle for EPA to make appropriate adjustments to ensure the statutory volumes are met” and “satisfies the Congressional intent behind the RFS program.”