Oil industry counters EPA renewable fuel reform plan

摘要

Changes EPA is considering for renewable fuel credits could only worsen flaws in the nation's biofuel mandate, a lobbying group for the petroleum industry said today. The American Petroleum Institute said a study it commissioned suggests that tinkering with the system of Renewable Identification Numbers, or RINs, isn't necessary and could increase fuel costs. "RIN reform does nothing to solve the fundamental problem," said Frank Macchiarola, vice president of downstream and industry operations for the API, on a conference call with reporters. To API, the fatal flaw in the renewable fuel standard is the rising volumes of ethanol the government requires to be added to the nation's fuel supply. The requirement compels refiners to either blend biofuel or buy the credits to show compliance, sometimes at costs they say are exorbitant. API said its analysis shows that refined product prices already reflect the cost of renewable fuel credits, reinforcing an earlier finding by EPA. The agency, however, is crafting regulations that could pave the way to changes in the RIN system, as well as expanding availability of fuel that contains 15 percent ethanol. The RIN changes under consideration include limiting participation in the RIN market to companies that actually have to meet the RFS requirements and requiring public disclosure when an individual holds a number of RINs above a certain limit.