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Biofuel and farm groups say EPA needs to do more

Biofuel groups are expressing their concerns about the EPA’s latest proposal for Renewable Fuel Standard volumes for 2020 and 2021 in Michigan today.

Geoff Cooper with the Renewable Fuels Association was one of many to testify that the EPA’s supplemental proposed rule fails to reflect the President’s intent to restore integrity to the program. “The effect of the 2016 through 2018 retroactive exemptions on required renewable fuel blending volumes is substantial.  Altogether, the 85 exemptions reduced 2016 through 2018 RFS blending requirements by a total of 4.04 billion gallons.”

National Corn Growers Association’s Brian Thalmann, a Minnesota farmer, says depressed economics in the ethanol industry over the past year have made prices struggle to match the market price of corn.  He says farmers have a simple message, “When it comes to the Renewable Fuels Standard, we need EPA to follow the law.”

Emily Skor with Growth Energy says the recent explosion in exemptions has destroyed demand for ethanol.  Her organization and several others want EPA to use actual small refinery volume data in the final rule, make the methodology apply to all RVO rulemakings and remove additional barriers on the sale of E-15. “EPA must properly account for exempted gallons and restore lost demand.”

Patrick Kelly with American Petroleum Institute says the supplement proposal was prompted by a “deal” and contrary to statute. “USDA’s undue influence on this rulemaking does not align with the American people, it is wrong to play politics with our nation’s fuel supply and consumers vehicles.”

Dozens of farmers, retailers, and ethanol producers also are testifying today on the proposal.