The American Fuel & Petrochemical Manufacturers (AFPM)
has filed a petition for reconsideration of the Environmental
Protection Agency's final rule Regulation of Fuels and Fuel
Additives: 2013 Biomass-Based Diesel Renewable Fuel Volume. The
rule increased the volume of biomass-based diesel from 1
billion to 1.28 billion gallons.
In the petition, AFPM strongly urges EPA to reconsider its
decision to increase the biomass-based diesel volumes by 28% in
2013. Since the EPA initially issued the rule, a number of
factors have surfaced that could result in unintended
consequences that will adversely impact both the domestic refining industry and US
"EPA's own data estimates that the cost of increasing the
biomass-based diesel mandate will add between $253 million and
$381 million to consumers' transportation fuel bill in 2013,"
said AFPM President Charles T. Drevna. "The US economy is still
struggling, and this increase will hurt the millions who rely
on transportation fuels."
Contrary to EPA's research, evidence is strong that an
increase in the 2013 volume will not affect domestic energy
security, as the US currently is a net exporter of diesel. In
the category of unintended consequences, EPA's decision will
curtail investment in advanced biofuels that compete with
biodiesel and will increase carbon emissions in 2013 under the
The increase could also negatively impact the price and supply
of agricultural commodities, since additional biodiesel feedstocks, such as soybean oil,
will be required under the rule.
"Before increasing the 2013 volume, EPA must resolve the
pervasive problem that exists in the biodiesel market of
renewable identification number (RIN) fraud," Mr. Drevna
said. "To date, over 140 million fraudulent RINs have been sold
to unsuspecting refiners concerned with meeting their RFS
obligations. That number and the costs associated with the
fraud will grow as investigations of additional biodiesel
producers continue today."