The API has welcomed a bipartisan legislation introduced by Representatives Pete Olson and Gene Green that would fix major flaws in the EPA’s renewable fuel credit program.
"This is a problem EPA could have, and should have resolved by now," said API President and CEO Jack Gerard. "EPA’s failure to act quickly could raise the cost of making fuels in the US, and it’s time for Congress to provide a solution."
The EPA has uncovered more than 140 million invalid renewable fuel credits (RINs), generated by three separate biodiesel companies, representing between 5 and 12% of the biodiesel market. Refiners that have purchased credits from the fraudulent companies have been subject to EPA fines and penalties and must purchase new credits, according to the API.
"The current system is unworkable and could potentially undermine the entire renewable fuel standard," said Gerard. "This legislation requires EPA to provide safeguards for refiners that purchase certified credits in good faith so they can begin purchasing credits to comply with next year’s biodiesel requirements."