The American Petroleum Institute (API) has struck again by filing a lawsuit with the D.C. Circuit Court against the Environmental Protection Agency (EPA) over the volume requirements of the Renewable Fuel Standard (RFS).
“This is another frivolous effort by API to abuse the court system in their slavish effort to repeal a public policy that is working for farmers, gasoline marketers, and consumers,” responded Bob Dinneen, President and CEO of the Renewable Fuels Association (RFS). “While the 2013 RVOs were issued later than anyone would have liked, the fact is the statute is crystal clear, and all stakeholders have been producing and blending at levels that will unquestionably meet the 2013 requirements. This is a lawsuit in search of a problem.”
According to data from EPA Moderated Transaction System (EMTS), 8.65 billion renewable fuel (D6) RINs were generated through August. This implies at least 13 billion D6 RINs will be generated for calendar year 2013. When combined with the 2.0 billion D6 RINs carried forward from 2012, there will be approximately 15 billion D6 RINs available to comply with a requirement of 13.8 billion. In fact, there is likely to be a surplus of at least 1.2 billion D6 RINs carried in to 2014 – in other words a surplus, not a shortfall as API is claiming.
“This latest move comes as no surprise. Big Oil is doing, and continues to do everything possible to undermine the RFS and prevent competition in the marketplace from higher blends of renewable fuel,” said Tom Buis, CEO of Growth Energy.
In addition to the D6 RINs, 1.6 billion biomass-based diesel (D4) RINs were generated through August, implying an annual total of 2.4 billion D4 RINs. In addition, nearly 290 million surplus D4 RINs generated in 2012 were carried in to 2013. Once again, there will be more than enough D4 RINs to meet the 1.92 billion RIN biodiesel requirement.
In terms of D5 RINS, 408 million advanced biofuel RINs were generated through August, demonsrating the industry is on pace to generate 612 million D5 RINs. When combined with surplus D5 RINs carried forward from 2012, and recognizing that surplus biodiesel (D4) RINs can be used in lieu of D5 RINs, there will be no problem in meeting the 2013 advanced biofuel requirement. It is also important to note that the EPA waived the statutory cellulosic biofuel standard by 99 percent in 2013. Through August, nearly 130,000 cellulosic biofuel RINs had been generated, and RIN generation is expected to accelerate in the remainder of the year.