US refiners Tuesday asked the Environmental Protection Agency to reconsider its earlier rule boosting the volume of biodiesel to be produced in 2013 as part of the Renewable Fuel Standard.
In September, the EPA increased the target volume for biomass-based diesel fuel to 1.28 billion gallons from 1.0 billion gallons. The statute creating the RFS mandated annual biomass-based diesel volumes of 1 million gallons through 2012 and gave the EPA discretion to set future annual targets.
In its petition challenging that decision, the American Fuel and Petrochemical Manufacturers reiterated earlier claims that the decision would boost consumer fuel prices and said the EPA should instead work to address several cases of fraud in the market for renewable fuel credits.
"In the category of unintended consequences, EPA's decision will curtail investment in advanced biofuels that complete with biodiesel and will increase carbon emissions in 2013 under the RFS," the group said in a statement. "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."
The AFPM also noted that the decision will not help US energy security because the country is a net exporter of diesel fuel.
"Before increasing the 2013 volume, EPA must resolve the pervasive problem that exists in the biodiesel market of Renewable Identification Number (RIN) fraud," AFPM President Charles Drevna said in a statement. "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."
The National Biodiesel Board dismissed the move.
"Contrary to the petroleum industry's complaints, biodiesel production will only boost the economy by creating new jobs and economic activity," Anne Steckel, the group's vice president of federal affairs said in a statement. "Last year alone, our industry supported more than 40,000 jobs, with plants in nearly every state in the country.
In 2013, the RFS will save US consumers $120.25 million at the pump, and going forward it will certainly help consumers by diversifying our fuel supplies so that we're not so vulnerable to oil price spikes that hit year after year."
