AFPM Supports the "Stop RIN Fraud Act of 2012"
WASHINGTON, Sept. 20, 2012 /PRNewswire-USNewswire/ -- The American Fuel & Petrochemical Association (AFPM) offered its support to the "Stop RIN Fraud Act of 2012" (H.R. 6444), being introduced in the House of Representatives today.
In a letter sent to the bill's co-sponsors, AFPM President Charles T. Drevna said, "The commonsense approach embedded in the legislation would protect the innocent victims of fraud and aid in the restoration of confidence in the renewable fuels market."
To date, EPA has discovered 140 million fraudulent biomass based diesel Renewable Identification Numbers, or RINs, which are the credits refiners have to buy or otherwise obtain and hand in to show compliance with the federal biofuels mandate. This number represents more than six percent of the market for biodiesel RINs. As obligated parties, U.S. refiners purchased these RINs in order to comply with the Renewable Fuels Standard (RFS). They later discovered that these credits were not valid and that they were victims of fraudulent biodiesel producers. Although the RINs were purchased in good faith from EPA-registered producers listed on an EPA-administered website, the Agency moved to punish the victims of the fraud by issuing notices of violations (NOVs) accompanied by significant monetary fines. These obligated parties were also required to replace the invalid RINs through a massive repurchase mandate.
Drevna continued, "Although industry and EPA have been working together to resolve the situation, a solution has yet to be agreed upon. U.S. refiners have unknowingly purchased millions of fraudulent renewable identification numbers and paid approximately $200 million in RIN replacement costs. And, it is our understanding that EPA and the FBI continue to investigate more widespread fraud in the biodiesel industry.
"The "Stop RIN Fraud Act" would force EPA to establish a process for certifying RINs that would be valid for purposes of complying with the RFS. This logical solution would not absolve the industry of its responsibility to exercise due diligence or place unwarranted burdens on EPA, but would finally provide a fair solution."
AFPM, the American Fuel & Petrochemical Manufacturers (formerly known as NPRA, the National Petrochemical & Refiners Association) is a trade association representing high-tech American manufacturers of virtually the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as the petrochemicals used as building blocks for thousands of vital products in daily life. AFPM members make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities, strengthen economic and national security, and support 2 million American jobs.
SOURCE American Fuel & Petrochemical Manufacturers