http://online.wsj.com/article/PR-CO-20130419-910827.html?mod=googlenews_wsj
AFPM Welcomes EPA Move to Address Biodiesel Fraud but Greater Fix is Needed
WASHINGTON, April 19, 2013 /PRNewswire-USNewswire/ -- The American
Fuel & Petrochemical Manufacturers (AFPM) and American Petroleum
Institute (API) filed comments in response to the Environmental
Protection Agency's (EPA) proposed biofuel Quality Assurance Program.
(Logo: http://photos.prnewswire.com/prnh/20120125/MM41823LOGO)
"EPA's proposal is a welcome attempt to address the significant fraud in
the biofuel markets, but will not solve the systemic problems caused by
the RFS biofuel mandates. These mandates will harm consumers as the EPA
forces the consumption of increasing amounts of biofuels that are
incompatible with today's cars and refueling facilities," said AFPM
President Charles T. Drevna.
The comments provide mixed reviews of EPA's proposal to fix the RIN
problem. The refining group supports the agency's decision to provide
refiners with an affirmative defense to the liability created by
fraudulent biofuel producers, but the scope of the EPA proposal is much
broader than the problem it purports to solve. The rule follows EPA's
discovery of more than 140 million fraudulently created biodiesel RINs
and its decision to assess fines against refiners who purchased these
RINs from EPA-registered biodiesel producers.
Drevna continued, "The industry appreciates EPA's efforts to improve the
integrity of the program and see this as a positive move to address the
larger problem of the structure and workability of the RFS program.
While this rule provides some assurance that EPA is willing to address
problems with the RFS, we view it as merely a band-aid on a gaping wound
in need of a much more drastic measure."
Both groups urge EPA to resist the temptation to create a third-party
enforcement scheme that extends beyond the production facility. Despite
this attempt to address fraudulent RINs, significant problems still
exist with the RFS and the only resolution is for Congress to repeal it.
View the full comments here.
About AFPM
AFPM, the American Fuel & Petrochemical Manufacturers is a trade
association representing high-tech American manufacturers of virtually
the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and
home heating oil, as well as the petrochemicals used as building blocks
for thousands of vital products in daily life. AFPM members make modern
life possible and keep America moving and growing as they meet the needs
of our nation and local communities, strengthen economic and national
security, and support 2 million American jobs.
Visit us: afpm.org
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