NPRA Testifies at EPA Hearing On RFS Implementation: RFS Credit Trading Program Should Be Clear, Enforceable and Provide Flexibility for Refiners.

WASHINGTON -- Charles T. Drevna, Executive Vice President, NPRA, the National Petrochemical & Refiners Association, today testified at the Environmental Protection Agency's (EPA) public hearing in Chicago on proposed rules to implement the renewable fuels standard (RFS). In his testimony, Mr. Drevna said: "NPRA believes that the RFS credit trading program - the core of the proposal - must be understandable, allow unambiguous enforcement, and promote adequate flexibility for refiners and gasoline importers."

Drevna congratulated EPA for its facilitation of early engagement, cooperative efforts, and open discussion involving all stakeholders. This approach was instrumental in the development of the core principles which form the foundation of the RFS proposal. Drevna went on to urge EPA to remain committed to principles developed by the stakeholder groups that would result in a fair, equitable, and easily enforceable regulatory program. These principles were designed to ensure maximum efficiency within the program while minimizing adverse impacts on consumers.

NPRA supports the Agency's decision to align the RFS "obligation" of refiners, importers, and blenders with the actual effective date of the final rule, rather than beginning the program on January 1, 2007. Without this adjustment and the certainty it provides, obligated parties would have no lead time to assess their individual situations. Drevna stated that NPRA supports EPA's concept of renewable identification numbers (RINs) as a centerpiece of the RFS implementing regulations. He continued, "In order to avoid a potentially difficult implementation, all parties need to work cooperatively in order to ensure the accuracy required to track and confirm RIN production and ownership."

NPRA also believes that new state renewable mandates should be preempted. Currently, new state biofuel mandates are not subject to the requirement that they be examined by EPA for their impact on either the fuel production or distribution system. NPRA strongly believes that state mandates should be subject to these requirements. "Congress did not anticipate the proliferation of new state ethanol and biodiesel mandates when it passed the Energy Policy Act of 2005. Neither Congress nor the Administration should take a pass on considering the potentially serious impacts of politically popular, but economically and environmentally questionable, state ethanol or biodiesel mandates," Drevna said.

Drevna concluded his testimony by saying that NPRA is committed to a smooth as possible implementation of the RFS, and urged that EPA "finalize the RFS program rules as soon as possible, while remaining faithful to the core principles developed and supported by all stakeholders."

NPRA is a national trade association with more than 450 member companies, including virtually all U.S. refiners and petrochemical manufacturers.