Today the Environmental Protection Agency (EPA) released its proposal for the 2014 Renewable Volume Obligations (RVOs) as part of the Renewable Fuel Standard (RFS) for the amount of renewable fuels to be blended into gasoline and diesel. The EPA has proposed to set the cellulosic biofuel category at 17 million gallons, biomass-based diesel at 1.28 billion gallons, advanced biofuel at 2.20 billion gallons and renewable fuel at 15.21 billion. Development with input from the U.S. Department of Energy and U.S. Department of Agriculture, the proposal seeks public input.
Fuels America coalition hosted a media call in reaction to the EPA’s proposed renewable volume obligations (RVOs) today. The biofuels industry said they were disappointed and that the proposed volumes would set the entire industry back and that the EPA’s proposal cannot stand.
During the call, Bob Dinneen from the Renewable Fuels Association (RFA) unveiled a new analysis showing how the RVOs, if implemented, would impact gas prices. In addition to Bob Dinneen, participants included Brent Brent Erickson, Executive Vice President, BIO; Roger Johnson, President of the National Farmers Union; Tom Buis, CEO of Growth Energy; and Jeff Lautt, CEO of POET.
The Fuels America said of today’s proposed 2014 RFS numbers, “We are astounded by the proposal released by the Administration today. It reflects an “all of the above, except biofuels” energy strategy. If implemented, would cost American drivers more than $7 billion in higher gas prices, and hand the oil companies a windfall of $10.3 billion. The impact of this proposal on the renewable fuel industry– both first and second generation – cannot be overstated. It caps the amount of renewable fuel used in our gasoline far below what the industry is already making, and could make next year, using an approach that is inconsistent with the RFS.
Dinneen said during the press conference, “By re-writing the statute and re-defining the conditions upon which a waiver from the RFS can be granted, EPA is proposing to place the nation’s renewable energy policy in the hands of the oil companies. That would be the death of innovation and evolution in our motor fuel markets, thus increasing consumer costs at the pump and the environmental cost of energy production. This proposal cannot stand.”
Buis noted that this is a proposed rule and not a final rule and there will be a 60 day comment period. “We welcome the opportunity to ensure that biofuel stakeholders are able to express their concern with this proposed rule, while also laying out a reasonable pathway to achieve the goals of the RFS during the forthcoming comment period.
This fall, the corn industry is looking at a record breaking harvest while the EPA has proposed renewable fuel volumes well below what the ethanol industry is capable of supplying. Lautt responded during the call that the opportunity to offer more affordable fuel options to consumers has never been better.
Listen to the full Fuels America press call here: Industry Responds to 2014 RFS RVO Proposal