The Environmental Protection Agency (EPA) today announced they will not be finalizing the 2014 applicable percentage of standards under the 2014 Renewable Fuel Standard (RFS) until next year. They also announced that the compliance deadline for 2013 RFS standards will also take place in 2015. Both corn and soybean groups reacted to the announcement, which impacts ethanol and biodiesel production and demand.

“Today’s announcement by EPA shows the Administration recognizes the proposed rule was inherently flawed and based on an unworkable methodology,” said National Corn Growers Association president Chip Bowling in a statement. “Corn farmers have produced a second record crop in two years, resulting in corn prices that have fallen below the cost of production in many parts of the country. Our members have been frustrated by the uncertainty and delays surrounding the RFS.”

“The continued delays create great uncertainty for the biodiesel industry and soybean farmers and limits the industry’s ability to invest and expand,” said American Soybean Association President Ray Gaesser. “The Proposed Rule was unacceptable and would have taken biodiesel backward from the amounts produced and utilized in 2013. However, ASA believes that EPA can and should finalize a 2014 rule that sets the biomass-based diesel volumes at or above the nearly 1.8 billion gallons that were produced and consumed in the U.S. in 2013.”

The EPA cites major consumer concerns as the reason for the delay. “The proposal has generated significant comment and controversy, particularly about how volumes should be set in light of lower gasoline consumption than had been forecast at the time that the Energy Independence and Security Act was enacted, and whether and on what basis the statutory volumes should be waived. Most notably, commenters expressed concerns regarding the proposal’s ability to ensure continued progress towards achieving the volumes of renewable fuel targeted by the statute.”