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NBB, Dozens of Biodiesel Companies Ask the President to Address RIN Values Without Undercutting the RFS and Rural America

Dec 18, 2017
Broad Biofuels Coalition of 90 Signees Joined Letter to President Trump

NEWS
FOR IMMEDIATE RELEASE

 Contact: Rosemarie Calabro Tully
202-641-6209
rcalabrotully@biodiesel.org

WASHINGTON, D.C. – The National Biodiesel Board (NBB) recently signed onto a letter sent to President Trump from a broad, biofuels coalition on the costs of Renewable Identification Numbers (RINs) to refiners. Ninety organizations and companies joined the letter to offer solutions to addressing RIN costs that also do not harm the Renewable Fuel Standard (RFS) program.

There are ways to address RIN values for refiners without undercutting the RFS and rural America. We have been working on many of them for years, and we would welcome the opportunity to move these ideas forward,” the group writes.

Specifically, the group proposed curing inequity in the U.S. tax code between biofuels and oil, improving transparency in RIN trading markets to prevent market manipulation, and securing regulatory parity for Reid Vapor Pressure (RVP) between ethanol-blended fuels and standard gasoline fuels.

Notably, the group highlighted some of the inconsistencies in the refiners’ arguments about RIN costs hurting them: “[R]efiners are not required to buy RINs under the RFS. … If a refiner chooses instead to buy a RIN credit, the Environmental Protection Agency ruled last month that ‘refiners are generally able to recover the cost of RINs in the prices they receive for their refined products, and therefore, high RIN prices do not cause significant harm to refiners.’” In fact, recent quarterly earnings statements evidence that independent refiners are doing quite well.

President Trump has stated that the RFS has reenergized rural America. The 300 biorefineries operating across the country today support hundreds of thousands of manufacturing jobs, reduce foreign oil dependence and keep fuel prices down. The RFS is necessary because fuel markets are not free markets. In the letter, the group tells the president: “The RFS is working, and we very much appreciate your unwavering support of the program.”

Of the ninety signees, dozens were NBB members, including: ADM, AGP, American GreenFuels, BIOX, Crimson Renewable Energy LP, Ever Cat Fuels LLC, Green Plains, HERO BX, High Plains Bioenergy, Incobrasa, Integrity Biofuels, Iowa Renewable Energy, IWP, Kolmar, Lakeview Biodiesel, Louisiana Eco Green LLC, Maine Standard Biofuels, Mid-America Biofuels, Minnesota Soybean Processors, National Renderers Association, New Leaf Biofuel, Newport Biodiesel, Owensboro Grain, Renewable Biofuels, Renewable Energy Group, SeQuential, Scott Biodiesel, Solfuels, Western Dubuque Biodiesel LLC, Western Iowa Energy and World Energy. The full text of the letter is available for download as a PDF here.

The National Biodiesel Board is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers and fuel distributors. In terms of federal policy issues, the trade association has been primarily focused this year on increasing volumes in the Renewable Fuel Standard, reinstating the biodiesel tax incentive and securing relief through several trade petitions on unfairly traded biodiesel imports. These efforts contribute to growing the biodiesel industry that already supports nearly 64,000 jobs across the United States.

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.  

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For more information on biodiesel, visit www.biodiesel.org