EPA Improves Cellulosic Waiver Credits Says ABFA
Wednesday, March 25, 2015
Michael McAdams, head of the Advanced Biofuels Association made the following statement following today’s rulemaking by the EPA with regard to the cellulosic waiver credit.
This morning, the Environmental Protection Agency (EPA) announced a direct final rulemaking, which set forward a new path for setting the cellulosic waiver credit RIN price. This action, which is a direct result of advocacy efforts carried out by the Advanced Biofuels Association (ABFA) over the last 18 months, will help bring the cellulosic waiver credit RIN prices to parity with the RIN values of other renewables. In addition, the revised rule also helps incentivize the purchase of actual gallons of cellulosic biofuel rather than using the waiver credit loophole.
This rule raises the posted waiver price from its outdated 2013 position at $0.42, to a more reasonable rate of $0.64 for 2015. This increases the competitiveness of the RIN value relative to the renewable pool which now sits at $0.67 cents – sending a positive signal to markets and investors.
The ABFA has advocated on behalf of improving the cellulosic waiver credit for nearly a year and a half, so we are pleased to see EPA take this step in the right direction. However, more work is necessary to strengthen the renewable fuels standard for next-generation biofuel producers, including the legislative reforms we outlined earlier this month. ABFA looks forward to continue working with the EPA, impacted stakeholders and interested parties, as we seek to deliver the next generation of biofuels.