API’s newest report says EPA proposal to reform RINs even worse than status quo

In Washington, the American Petroleum Institute released a new study that found EPA’s proposal to reform the Renewable Identification Numbers (RINs) market will only worsen program. API’s new report finds that RINs prices tend to react to demand for RINs, which is directly related to EPA’s approach to setting annual renewable fuel volumes. This could ultimately harm consumers, it said.

“API’s new study makes clear that the EPA’s RINs reform proposal both misdiagnosed the problem and provides misguided and counterproductive solutions,” said API Vice President of Downstream and Industry Operations Frank Macchiarola. “Our analysis confirms the previous findings of the EPA, as well as findings by independent analysts, that refined product prices already reflect the cost of obtaining RINs and that no significant reform of the current RIN system is needed. In fact, reforming the RINs market will exacerbate the already broken fuels mandate – the Renewable Fuels Standard (RFS) – which is costly and unnecessary for U.S. consumers.