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ABFA President urges Congress to reform the RFS  

Friday, June 22, 2018

Washington, D.C. – Michael McAdams, President of the Advanced Biofuels Association (ABFA), urged Congress to reform the Renewable Fuels Standard (RFS) in testimony today before the House Energy & Commerce Subcommittee on Environment.


“When the program was written in 2007, Congress and the nation recognized first-generation technologies for biodiesel and ethanol. However, new technologies and diverse feedstocks have emerged since the passage of the RFS2. These technologies produce a range of fuels delivering greater greenhouse gas emissions reductions,” said McAdams in his testimony. “Comprehensive reform will achieve the vision for advanced renewable fuels that this Committee and Congress as a whole overwhelmingly supported when it passed the RFS2 in 2007.”


McAdams advocated for several topline changes to the RFS including basing the annual Renewable Volume Obligation (RVO) on actual production in the previous compliance year. “Our rules-based approach takes the politics out of the RFS,” said McAdams. “Tying the RVO to the previous year’s production reduces uncertainty and speculation surrounding the annual mandates, therefore reducing volatility in the Renewable Identification Number (RIN) market and ultimately improving the cost efficiency of the program.”


Additionally, McAdams encouraged the Committee to review the EPA’s use of the small refinery exemption provision in the Renewable Fuel Standard. “EPA is misusing this provision, stretching the definition of ‘disproportionate economic hardship’ in order to lower RIN prices for the benefit of a small number of merchant refiners that have refused to invest in RFS compliance over the last ten years,” said McAdams. “Congress must make explicit its intent to protect only those small, independent refineries experiencing verifiable, disproportionate, and significant economic hardship, and not to further augment the results of highly profitable refiners.”


“ABFA strongly supports the efforts Chairman Shimkus, Ranking Member Pallone, and the Committee have made over the last year to review the RFS,” concluded McAdams. “Now is the time for Congress to act on this progress.”


McAdam’s full testimony can be found here.

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