EPA takes comments on RVO proposal

Jan 7, 2022  | 2 min  | Ep4721

A snowstorm struck the South and Northeast stranding hundreds of drivers for more than a day.

Parental advice is to have a full tank of gas before setting out on a journey. Ethanol producers hope drivers keep having choices at the pump for more of the corn-based product.

Here’s Peter Tubbs. peter.tubbs@iowapbs.org

This week, the Environmental Protection Agency took public comments on their proposed rules for Renewable Volume Obligations. The RVOs dictate the amount of ethanol that gasoline blenders must add to the nation’s fuel supply.
Geoff Cooper, CEO, Renewable Fuels Association: “Our message to EPA during the hearing is that while their proposals are not perfect, we think what they're proposing is really a step in the right direction toward finally restoring some sanity toward it within the Renewable Fuel Standard Program.”

 For 2021, the EPA estimates the RVO would be set at 18.5 billion gallons of renewable fuels. The 2022 RVO would rise to 20.7 billion gallons. 
The EPA has struggled to estimate renewable fuel demand as the economy recovers from drops in fuel needs caused by the COVID-19 pandemic. 
Geoff Cooper, CEO, Renewable Fuels Association: “The RFS actually has a self-correcting mechanism built within the program that when gasoline and diesel consumption is reduced because of COVID or any other market anomaly, the actual renewable fuel blending requirement adjusts lower by the same amount. And so there's no need no legal basis for EPA to go back in time and try to revise that number downward.”
The EPA also has proposed cancelling any outstanding Small Refinery Exemptions that let refiners out of their blending obligations.
Geoff Cooper, CEO, Renewable Fuels Association: 
“When they released this proposal, there were 65 of those exemption requests that were still pending. That represents about 3 billion gallons of renewable fuel requirements. So we're very happy to see EPA are taking a step toward denying all of those exemptions.” 
The public comment period is open through February 4th.
For Market to Market, I’m Peter Tubbs.

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