AFPM says gap year applications won’t impact ethanol demand

In Washington, AFPM issued the following statement about the ‘gap year’ applications that have been submitted by small refineries in order to make the case that RFS obligations in previous years have been a source of disproportionate economic harm. EPA is currently reviewing these petitions:

“The refining industry is under immense financial pressure, and the last thing our industry and workers need in this critical moment is a more expensive RFS burden. Gap year waivers are meant to ensure small refineries remain eligible to even apply for hardship relief in the future after conflicting decisions from the 10th Circuit Court of Appeals.

“RFS mandates cost U.S. refiners and consumers billions of dollars each year and are responsible for millions of gallons of foreign biofuel imports. It is long past time for the program to be reset and reformed, but in the meantime EPA should use all the tools at its disposal to protect consumers and refining jobs.”

The law makes clear that small refineries may apply for RFS relief at any time. According to official government data, the small refinery exemption (SRE) program has not reduced demand for domestic ethanol.