Wilmar Oleo North America LLC 

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9307 Broadway SUite**31~' Pe<~rland.**  TX 77584 Tel (7' '3) 482-3981 ohn@wlln'il" com sg 

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www.wilmar-international com January 31, 2013

Ms. Gina McCarthy Assistant Adminstrator for th e Office of Air and Radiation United States Environmental Protect Agency Ariel Rios Building 1200 Pennsylvania Avenue, N.W

. Mail Code: 6101A Washington, D.C. 20460

Dear Assistant Administrator McCarthy,

In July 2012, Wilmar received a statement from the EPA that stated:

"In a previous interpretation of the RFS2 regulations, we concluded that palm fatty acid distillate (PFAD) qualifies under the existing RFS2 program as a waste product from the production of food. Our determination is that PFAD is
a by-product in the production of palm oil and do not represent a primary product and are not the purpose for growing palms or extracting and purifying palm oil. While PFAD has some existing uses such as a supplemental energy source for boiler fuel
, we conclude that these other uses are generally considered low value uses and removal of PFADs from such alternative uses will not substantially impact these other uses (e

.g., decreasing the amount of PFAD used as boiler fuel will not substantially impact the availability of feedstock used for boiler fuel)

. Therefore we concluded that PFAD in the circumstances which were presented to EPA, is consistent with the description of a waste as included in the final RFS2 rulemaking, assuming the material also meets the definition of renewable biomass and any and all other applicable compliance requirements established by rule. EPA reserves the right to reassess this determination at a later date should circumstances change."

We understand that after complaints from US domestic producers worried about their market share
, EPA is rethinking its previous position. EPA is now not only reviewing PFAD
, but all other feedstocks designated as a waste product 

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.g., animal fat and used cooking oil)

. Wilmar has numerous concerns regarding this review of waste product designations. Based on EPA's previous guidance
, we undertook steps to amend our facility registrations to begin supplying PFAD biodiesel to the United States once the direct esterification pathway is finalized. Several US based producers have plans as well to use PFAD as a feedstock to make biodiesel. Additionally, there are several other waste streams coming from the palm process such as palm oil recovered from the activated clay used in the refining process. These too had received waste oil designations from EPA
, but are now under question

.Wilmar Oleo North America LLC

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www.wilmar-international.com 

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Wilmar believes EPA's initial assessment of qualifying PFAD as a waste product was correct. In fact
, PFAD is a lower value product than many of the other feedstocks approved as waste products by EPA such as animal fat. The European Union also considers PFAD to be a waste product.

EPA's review of waste product designations has created a large degree of uncertainty that is affecting business decisions across the industry

. For example, we have 3 European plant registrations under review that are being held up due to the declaration that they plan to make biodiesel from PFAD as well as other waste oils. At a minimum, EPA should state that any decision it makes with respect to waste product designation would only take effect prospectively.

If EPA decides to disqualify PFAD as a waste oil or subject it to a GHG review, then it must immediately disqualify the other higher value waste streams, such as used cooking oil and animal fat, and subject them to a similar review. Our concern is that the playing field be fair. Given all the issues surrounding RIN fraud
, as soon as possible EPA needs to formally list the approved waste oils so there is no confusion going forward.

We would be happy to discuss this issue with you and your team on a call or in a meeting

. Thank you for your prompt attention to this matter.
Sincerely, 

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John Cummings Vice President, Commercial Wilmar Oleo North America LLC 9307 Broadway, Suite 313 Pearland, TX 77584
(713) 824-5834 john @wilmar.com.sgUSEPAGINAMCCARTHY1200PENNSYLVANIAAVENWRM54068.-'-REF1:175722-02/01/2013WS1&.11.16Lf'2442l&.IIR111/21113fl'.I(UJIOfnl,..,._,...\..,..,.lbft.a--·-ft{