WASHINGTON--(BUSINESS WIRE)--The Biotechnology Innovation Organization (BIO) today released the new white paper, “The Myth of High RIN Prices As Proof of the Blend Wall,” analyzing data recently released by EPA on compliance with the Renewable Fuel Standard between 2010 and 2013 (the latest year for which compliance is complete). The newly available data challenge the widely accepted assumption that the blend wall – the point at which ethanol blending in gasoline exceeds 10 percent – caused the 2013 spike in Renewable Identification Number (RIN) spot market prices.
Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “The success of the Renewable Fuel Standard has become distorted by the myth that U.S. refiners have encountered an unbreakable blend wall. Oil refiners, their champions in Congress, and even EPA have proposed changes to the RFS program based on this myth. Yet these changes to the RFS are aimed at solving a problem that never existed.
“Data recently made available by EPA demonstrates that obligated oil refiners and importers were able to meet RFS requirements through 2013 – even building excess RINs – despite having reached the blend wall as early as 2010 and definitely surpassing it by 2012. EPA’s delays in issuing 2014 and 2015 rules – which were in response to the assumed arrival of the blend wall – obscured this data until now.
“The delays in issuing rules and the proposed changes to the RFS have undercut investment in advanced biofuels and harmed developers of new technology. EPA should reconsider its proposed RFS rules for 2017 in light of the newly available data.”
BIO’s new white paper finds:
- Data recently released by EPA challenges conventional wisdom that the blend wall caused RIN prices to rise in 2013.
- Refiners and importers blended ethanol into obligated gasoline volumes beyond the 10 percent limit as early as 2010.
- Refiners’ and importers’ use of compliance flexibility reveals they did not experience RIN shortages at any point.
- EPA’s rulemaking delays and unwarranted changes to the RFS based on blend wall assumptions harmed biofuel producers while providing obligated parties relief from a problem that didn’t exist.
- EPA should reconsider its 2017 RFS proposed rule in light of this newly available data.
The white paper is available at: https://www.bio.org/sites/default/files/Disproving_the_Blend_Wall.pdf.
About BIO
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.
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