WHAT:
The Subcommittee on Environment, chaired by Rep. John Shimkus (R-IL), held a hearing today on the Renewable Fuel Standard (RFS) program’s use of renewable identification numbers (RINs).
WHY:
“The purpose of today’s hearing is very much educational in nature and is intended to promote greater understanding of how RINs fit into the overall Renewable Fuel Standard. In order to chart a legislative path forward, it is critical that the subcommittee first gather the facts and comprehend the various complexities of the RFS program," said #SubEnvironment Chairman Shimkus.
“It is my desire to move legislation that will pave the future of transportation fuels in the United States, and in order for this to happen it is important that we understand what RINs are and how they fit into the Renewable Fuel Standard - a program that in 2017, spurred the production of 15.8 billion gallons of ethanol and 1.6 billion gallons of biodiesel in the United States," said Full Committee Chairman Greg Walden (R-OR). “[This hearing] is intended to help members understand the program so that they can make informed decisions when the time to legislate comes."
WHO:
* Sandra Dunphy,Director, Energy Compliance Services, Weaver and Tidwell, L.L.P (Opening Statement )
* Gabriel E. Lade,Assistant Professor of Economics, Iowa State University (Opening Statement )
* Corey Lavinsky,Director of Global Biofuels, S&P Global Platts Analytics (Opening Statement )
* Paul Niznik, Senior Consultant, Argus Media Incorporated (Opening Statement )
* Brent Yacobucci, Energy and Minerals Manager, Congressional Research Service (Opening Statement )
KEY MOMENTS:
“Whether you’re talking about refiners or biofuel producers, all the participants in the market have raised issues, in one form or another, about uncertainty." - Mr. Yacobucci
Chairman Walden asked about the overall assessment of how well the Environmental Protection Agency’s (EPA) overseeing the RIN market and implementation. Ms. Dunphy responded, “I think the EPA does a pretty good job administering the regulations as they were written, but the RIN market oversight is missing. There’s really not any oversight of the trading activity of RINs."
#SubEnvironment Chairman Shimkus asked if the witnesses believe there is a RIN market transparency issue. Mr. Niznik responded, “We track RINs transactions from real market participants reporting from actual trades, so that’s how we gather data on pricing. And still even at that level we can’t have the understanding of the full volumes of the marketplace at any one given time that would be able to elucidate any issues on market manipulation."
RESOURCES:
The Majority Memorandum, witness testimony, and an archived webcast are available online HERE.
