Wilmar Oleo North America LLC 

• 

9307 Broadway SUite 31~' 

Pe<~rland. TX 77584 

Tel (7' '3) 482-3981 

ohn@wlln'il" com sg 

w1 mar 

www.wilmar-international com 

January 31, 2013 

Ms. Gina McCarthy 

Assistant Adminstrator for the 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 (e.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 

nt;l G•oaJw. v Su to 31 ,' 

Pear,~r d. 1 X 71'584 

'el J1'3i 482 3981 

JOIH' @•,y,jr1ilr ~Or1.C,q 

www. wilmar-inter national.com 

• 1m 

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, 

J 

John Cummings 

Vice President, Commercial 

Wilmar Oleo North America LLC 

9307 Broadway, Suite 313 

Pearland, TX 77584 

(713) 824-5834 

john @wilmar.com.sg 
USEPA 

GINA MCCARTHY 

1200 PENNSYLVANIA AVE NW 

RM 54068 

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