Clean Fuels Alliance America, based in Jefferson City, Mo., welcomed the Environmental Protection Agency's final rule for the 2021 and 2022 Renewable Fuel Standard volumes. The final rule recognizes the continued growth of biodiesel, renewable diesel and other clean fuels and establishes readily achievable program obligations. Clean Fuels supports EPA's decision to deny pending small refinery exemptions and its consistent finding that the program benefits Americans without hardships for refiners.
"Clean Fuels and its members appreciate EPA Administrator Regan's recognition that homegrown, clean fuels offer a better solution to high fuel prices stemming from high oil prices and supply shortages," said Kurt Kovarik, vice president of federal affairs for Clean Fuels. "We support EPA's efforts to get the Renewable Fuel Standard back on track and to finalize 2022 volumes as a jumping off point for future growth. We stand ready to work with the agency to move forward and set volumes for 2023 and beyond. And we encourage the agency to quickly finalize new feedstocks pathways, such as that for canola oil."
"Biodiesel and renewable diesel are essential to keeping the U.S. economy moving right now, meeting more than 5 percent of the nation's need for heavy duty transportation and shipping fuel. The clean fuels industry increased production and supply even during the economic emergency of the last few years, helping Americans save 4% on the cost of diesel fuel and all the other consumer items that rely on diesel fuel for shipping," Kovarik added.
A recent study from the World Agricultural Economic and Environmental Service shows that U.S. biodiesel and renewable diesel production generates a 4 percent decrease in the price of diesel fuel. The WAEES study is available for download on cleanfuels.org.
Kovarik continued, "EPA's denial of pending small refinery exemptions for 2019 through 2021 assures our industry that the volumes set today will be fully met, even with compliance flexibilities. This is an important first step in restoring integrity to the program."
The rule meets EPA's consent decree with the U.S. Court of Appeals for the D.C. Circuit to finalize the 2021 and 2022 rules. EPA is currently taking comment on a proposed consent decree to finalize the 2023 RFS volumes and standards by April 2023.
The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America's clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board and state checkoff organizations.
U.S. Senator Deb Fischer (R-Neb.) said, "While the 2022 RVOs are significant, retroactively lowering the 2020 RVOs directly undermines these gains and contradicts Biden's campaign promises. Making matters worse, the administration has decided to postpone small refineries' compliance with the RFS, which hurts the integrity of the whole system."
To which the Small Refinery Coalition -- an ad hoc group of businesses owning and operating facilities that refine less than 75,000 barrels of crude oil per day in Alabama, Mississippi, Louisiana, Arkansas, Oklahoma, Texas, New Mexico, Oklahoma, Colorado, Wyoming, Montana, Washington, California, Washington, North Dakota, Indiana, West Virginia, and Pennsylvania -- said:
"Despite President Biden's repeated promises to use 'every tool at [his] disposal' to lower fuel prices, today's actions by EPA do just the opposite -- throwing gasoline on the bonfire of skyrocketing inflation. The result of EPA's actions, increasing both the 2021 and 2022 RFS blending mandates and simultaneously denying hardship relief to our nation's smallest refineries, is that Americans will pay even more at the pump, at a time when they can least afford it."
"Cushioning these bad announcements with the release of long-overdue COVID assistance for producers that was available over a year and a half ago doesn't change the facts. The President's actions demonstrate he isn't committed to supporting rural America or pursuing an all-the-above energy strategy," said Fischer. Looking to the future, it is imperative that the administration set robust 2023 RVOs in a timely manner. Doing so will ensure the country is leveraging the power of biofuels to lower costs at the pump and provide consumers with needed financial relief."
Meanwhile, Chris Edgington, Iowa farmer and president of the National Corn Growers Association, said, "More ethanol in the fuel supply saves Americans money at the pump and lowers greenhouse gas emissions. Higher renewable fuel volumes for this year, which will increase and diversify our fuel supply, come at a crucial time as policymakers are working to lower fuel prices. When President Biden visited an Iowa ethanol production facility in April, he said ethanol reduces our reliance on foreign oil, creates choice and competition at the pump for better prices, creates good-paying jobs and reduces greenhouse gas emissions. Farmers agree, and the increased RFS volumes for 2022 and denial of pending refinery exemptions will advance these objectives and move renewable fuels forward."
Emily Skor, CEO of Growth Energy, said, "These last six months have been a rude awakening for those who have grown complacent about U.S. energy supplies. EPA's 2022 renewable fuel blending requirements will deliver savings at the pump for working families, slash carbon emissions, and strengthen U.S. energy security by bringing more American renewable fuel into our fuel supply. In just the last few months, E15 has been a shield against skyrocketing fuel prices, saving drivers almost $0.60 per gallon in some areas while American biofuels cut greenhouse gas emissions by 46 percent compared to gasoline. We applaud President Biden and his EPA for this action, which will set the direction of total and advanced renewable fuel volumes for 2023 and beyond."
Geoff Cooper, president and CEO of the Renewable Fuels Association, noted, "At long last, the RFS is being put back on track. Today's actions by EPA and the Biden administration restore integrity and stability to the RFS program after several years of wanton mismanagement and abuse by the previous administration. The combination of a strong RVO for 2022, restoration of illegally waived volume from 2016, and a new direction for the SRE program puts the RFS program on solid footing for the future. We thank Administrator Regan and President Biden for honoring their commitments to implement the RFS in a way that is fair, transparent, and focused on growth. By requiring petroleum refiners to blend larger volumes of low-cost biofuels like ethanol, today's actions will put downward pressure on gas prices and provide economic relief to American families facing record-high pump prices. In the last few days alone, wholesale ethanol prices have been as much as $1.30 per gallon lower than gasoline, leading to significant savings at the pump for consumers of ethanol-blended fuels like E10, E15, and E85."
Missouri Corn Growers Association (MCGA) President Jay Schutte of Benton City, said, "At a time when families are suffering from high inflation and skyrocketing gas prices, it makes sense to bring every viable energy option to the table. While the 2021 levels fall short, the precedent set with 2022 numbers, is a strong signal the administration intends to fulfill the RFS as set out by Congress. Priced today more than $1.40 under unblended gasoline at the wholesale level, corn-based ethanol is a high octane, low carbon fuel source that helps clean the air and our environment. Meanwhile, the oil industry continues to make billions in record profits on the backs of America's business owners and consumers.
"It is clear we need to do more to diversify our energy portfolio. Missouri corn farmers and the state's ethanol industry stand ready to answer the call with a locally refined fuel that can help lower gas prices and reduce greenhouse gas emissions."
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