EPA misses RVO deadline

Dec 4, 2020  | 2 min  | Ep4616

The Trump Administration’s Environmental Protection Agency missed it’s November 30 statutory deadline to set the 2021 renewable volume obligations, or RVOs, under the Renewable Fuel Standard. 
Releasing the standard in the preceding year is required under the RFS statute, and often begins with a proposed rule released in the previous summer to allow time for public comment. The EPA failed to issue even the proposed rule in 2020, blaming COVID-19 for the delay.
Growth Energy, a trade association of ethanol producers, notified the EPA of their intent to sue over the missed deadline for 2021 EVO targets. The EPA now has 60 days to issue the obligation specifics or face a lawsuit.
Federal figures show overall domestic fuel consumption has fallen to a 30-year low. With the RVOs in place, biofuel and fossil fuel producers get much needed guidance for their renewable fuel blending obligations for the coming year. Without hard obligation numbers, the market may underestimate their blending needs and cut the demand for renewable fuels. 
The final volume requirement for 2020 was 20.09 billion gallons, an increase of 17 millions gallons from the 2019 requirement.
For Market to Market, I’m Peter Tubbs

 

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