EPA issues final Renewable Fuel Standard volumes for ethanol

  • EPA issues final Renewable Fuel Standard volumes for ethanol

EPA issues final Renewable Fuel Standard volumes for ethanol

"Today's decision by the EPA directly threatens the safety of millions of American boaters".

Under EPA's action, renewable fuel volume requirements for 2017 increased to 19.28 billion gallons compared with 18.11 billion in 2016. "Whereas the convention ethanol is capped out".

"Moving forward, we call on the EPA to continue following the law and keep the RFS on track".

However, the ASA said it would still like to see additional support and promotion of domestically produced biodiesel, through higher volumes for the biomass-based diesel category.

The RFS Reform Act eliminates corn-based ethanol requirements, caps the amount of ethanol that can be blended into conventional gasoline at 10 percent, and requires the EPA to set cellulosic biofuels levels at production levels. The EPA did not follow the statutory limits in the past and a lawsuit is pending.

Executive Director of IRFA Monte Shaw says there's a lot of corn this year, "But it definitely puts an upward pressure on corn demand and corn prices, which is good for farmers".

GAO's report concluded that producing advanced biofuel is extremely expensive, takes a long time to produce and likely won't meet its goals of reducing America's dependence on foreign oil or to lowering carbon dioxide (CO2) emissions. Now, though, the EPA is under fire in a fight over yet another policy: required ethanol fuel volumes.

The AMA objects to this increase in the Renewable Volume Obligations under the Renewable Fuel Standard. Heitkamp also helped lead 40 senators in urging the Administration to increase biodiesel RVOs to encourage continued industry growth and diversity in the nation's energy supply. Without ethanol buyers, Brunkhorst said, in Nebraska alone "another 600 million bushels would be back on the market" for sale as cattle feed, corn syrup production and for other uses.

"The levels announced today provide opportunities but also do not take full advantage of an opportunity to further promote a viable, domestically produced renewable fuel industry that is USA biodiesel", said ASA President Richard Wilkins.

In its November 23 final rule, though, the E.P.A. said, "A careful review of the comments we received in response to the May 31, 2016, Notice of Proposed Rulemaking and other information that has become available since May has led us to conclude that volume reductions for 2017 need not be as great as we had proposed". Though EPA has acknowledged the realities of the blend wall, increasing mandated corn-ethanol volumes is not the appropriate response. Announcing higher fuel volumes for 2017 only emphasizes the unfairness of this mandate, and the need for Congress to step in and stop the harmful impacts.