Further Renewable Fuel Volume Reductions Sought

Source: By Todd Neeley, DTN/Progressive Farmer • Posted: Wednesday, September 27, 2017

The U.S. Environmental Protection Agency has proposed further cuts to Renewable Fuel Standard volumes. (DTN file photo by Greg Horstmeier)

The U.S. Environmental Protection Agency has proposed further cuts to Renewable Fuel Standard volumes. (DTN file photo by Greg Horstmeier)

OMAHA (DTN) — The U.S. Environmental Protection Agency wants to further reduce the renewable volume blend requirements for advanced biofuels, biomass-based diesel volumes for 2018 and 2019, and the total renewable fuel volumes in the Renewable Fuel Standard, the agency announced in a notice on Tuesday.

The proposed reductions are in addition to the agency’s proposal to cut those volumes already. The deadline for the final RFS is Nov. 30. The latest change will be subject to an additional 15-day public comment period.

In the EPA notice for data availability, the agency is seeking comment on a proposal to reduce the 2018 advanced biofuel volume requirement from the proposed level of 4.24 billion gallons to 3.77 billion gallons and also to reduce the 2018 total renewable fuel volume requirement from the proposed level of 19.24 billion gallons to 18.77 billion gallons. The EPA said in the notice the new proposal is based on concerns about biofuel imports.

The announcement was met with shock and anger from renewable fuels groups and a United States senator. Biofuel and agriculture interest groups had already opposed the agency’s proposed cuts to the RFS before this latest notice was released.

Sen. Charles Grassley, R-Iowa, said in a statement it appears President Donald Trump’s administration is backing down from support for biofuels.

“It’s outrageous that the EPA would change course and propose a reduction in renewable fuel volumes,” Grassley said.

The senator added, “This seems like a bait-and-switch from the EPA’s prior proposal and from assurances from the president himself and cabinet secretaries in my office prior to confirmation for their strong support of renewable fuels. Reducing volumes would undermine domestic renewable fuel production. That’s contrary to the goal of America first, employing U.S. workers, and improving the U.S. economy.

“It’s contrary to the goal of meeting the country’s fuel needs, which is critical to economic growth. This all gives me a strong suspicion that big oil and refineries are prevailing, despite assurances to the contrary. I plan to press the administration to drop this terrible plan.”

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