Greg Staiti, Chair, Regulatory Committee

July 8, 2025

Good day. I hope everyone had a great Independence Day. My name is Greg Staiti. I am Chair of the Regulatory Committee for the Advanced Biofuels Association (ABFA). On behalf of the Advanced Biofuels Association, thank you for the opportunity to testify on EPA’s Proposed Rule, “Renewable Fuel Standard (RFS) Program: Standards for 2026 and 2027, Partial Waiver of 2025 Cellulosic Biofuel Volume Requirement, and Other Changes”.

ABFA is a 501(c)6 non-profit trade association founded in 2007 representing more than forty companies from the U.S and around the world who are primary stakeholders in the energy and biofuels industries. ABFA represents advanced biofuels including renewable diesel, biodiesel, renewable gasoline, ethanol, jet fuel (SAF), heating oil, renewable gas, and Dimethyl Ether. We represent the largest producers of renewable diesel, biodiesel, and jet fuel in the United States. Annually our members produce more than four billion gallons of advanced biofuels, and that number is growing rapidly — particularly in the renewable (RD) diesel space.

I am here today on behalf of our Association to first thank the Agency for issuing the proposed standards in a timely fashion and to express our universal support for EPA’s increase in the advanced biofuel standards. However, the Agency’s proposal includes changes that unnecessarily interfere with the free market, undermine the program and are not fully consistent with previous application of the law.

To begin with the elephant in the room, the Agency’s proposed biomass-based diesel RVO risks sending a signal to producers that as little as 60-to-65% of capacity utilization could be needed. This results from the fundamental changes the Agency has introduced to the RFS program that will cause significant uncertainty in the various impacted markets. Let us unpack these issues.

First, the Agency has cut Renewable Identification Number (RIN) valuations by 50 percent for foreign fuels and domestic fuels produced from foreign feed stocks. ABFA and its membership do not support this change or the uncertainty it introduces into industry and individual RFS compliance. By its own acknowledgement, the Agency expects that compliance demonstrations will be significantly affected by the variables caused in multiple market sectors, including feedstock type, feedstock sources and utilization. “Actual” market volumes needed for compliance could vary significantly from a low “domestic only” range to higher ranges depending on what the mix of domestic versus foreign based fuels are introduced in the market. These ranges will be affected by a multitude of factors – such as U.S. tax policy, global commodity prices and logistics availability – that go well beyond the scope of the RFS to control. This is already emerging as a significant cause of confusion among many market participants and to obligated parties needing to plan for 2026 and 2027 compliance. Producers in particular

need certainty in demand for both RINs and gallons, and EPA’s proposal has made forecasting both much more challenging. To the extent there is concern about the use of foreign fuels and feedstocks, those are better addressed through U.S. trade negotiations and U.S. tax policy such as 45Z.

Second, there is no basis under the Clean Air Act (CAA) for the import devaluation provisions in the RFS program. The Clean Air Act specifically calls for the biomass-based diesel category to be stated in gallons; EPAs proposed move away from “gallons” in this category to RINs is only necessitated by its change in import treatment. If you withdraw the proposed 50 percent devaluation from foreign feedstock-based fuels, you can subsequently withdraw this change as well.

These fundamental shifts in past policy, on tenuous legal grounds, threaten the routine implementation of next year’s RVOs. Likewise uncertain is how EPA intends to handle Small Refinery Exemptions – both pending and forecast – within the final RVOs. While this issue is too broad in scope for full attention in our short window for testimony, however EPA moves forward we believe that any exempt volume should be re-allocated to the obligated party pool or else the very purpose of mandates – supporting domestic production and use of renewable fuels – will go unfulfilled.

Considering these points, ABFA reiterates its position that at least 5.75 billion “actual gallons” of BBD must be required by the RFS standards. Domestic biomass-based diesel capacity can easily deliver at least 5.75 billion “gallons” of qualified BBD and EPA’s final rule needs to provide the certainty to the market to do so. We commissioned a third party, GlobalData, to conduct a feedstock analysis to support market determinations pertaining to those available for food, feed and then fuel. ABFA previously submitted this to the Agency in the spring of 2025 and an update will be submitted to the Agency for the Record along with our comments on this proposal. Additionally, we commissioned Lipow Oil Associates to prepare a market evaluation depicting and projecting renewable fuel production capabilities, capacities, and utilization rates – all of which are supported by current market data. That analysis was presented and submitted to the Agency in the spring prior to the issuance of the proposal and will again be included in our final comments.

Finally, the Agency has requested comments on a number of other specific proposed actions and asked broader questions pertaining to the future of this program. ABFA and its members plan to address these specific proposed actions and questions in our written comments.

We appreciate the Agency’s continued and thoughtful oversight of the Renewable Fuels Standard program and thank you for the opportunity to testify on these critical issues.

I am happy to address any questions you may have.