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Ag and ethanol groups are unhappy with EPA’s biofuels proposal

Ag and ethanol groups are accusing the EPA of reneging on the biofuels deal announced earlier this month.

They’re responding to a supplemental proposal for renewable
fuels volumes issued by the EPA on Tuesday afternoon.

Geoff Cooper, president and CEO of the Renewable Fuels Association issued this statement:

“If the Oct. 4 announcement from EPA was a big step forward, today’s supplemental proposal is a step backward. It falls short of delivering on President Trump’s pledge to restore integrity to the Renewable Fuel Standard and leaves farmers, ethanol producers, and consumers with more questions than answers.

“It is baffling to us that the proposal sets the three-year average of exempted volume using the very same DOE recommendations that EPA blatantly ignored over and over. We are concerned that the volume of actual exemptions granted in 2020 could very well exceed the amount of projected exemptions from DOE, putting us right back into the quagmire where the 15-billion-gallon requirement is eroded and undermined.

“Simply put, this proposal is not what was promised by the administration just over a week ago and fails to answer President Trump’s personal call for a stronger conventional biofuel requirement of more than 15 billion. It is our hope that President Trump will personally intervene again to get the RFS back on track and ensure his EPA honors the commitments that were made.”

From the National Biodiesel Board:

“Today, the National Biodiesel Board (NBB) said it is skeptical the Environmental Protection Agency’s proposed supplemental rule will ensure that 2020 and future biomass-based diesel volume obligations are fully met. The supplemental notice contains a never-before-discussed proposal to estimate small refinery exemptions for 2020, with no assurance that the estimate will come close to actual future exemptions. The biodiesel industry does not believe the proposal meets President Donald Trump’s October 4 promise to American farmers and biodiesel producers.

“Kurt Kovarik, NBB Vice President of Federal Affairs, added, ‘The notice that EPA issued today is significantly different from the agreement that biofuel industry champions negotiated with President Trump just two weeks ago, which was to estimate future exempted RFS volumes based on the average of actual volumes exempted over the past three years. EPA is proposing a brand-new method for making the estimate – one that was never previously proposed or discussed and significantly undercounts past exemptions.’”

The Iowa Corn Growers Association issued the following statement:

“Today, we are outraged the Environmental Protection Agency (EPA) did not implement the details that were presented and outlined by the President only eleven days ago. Any proposal that does not account for actual waived gallons under the Renewable Fuel Standard (RFS) fails to restore the integrity of the law. Last week President Trump promised to uphold the Congressional intent of the RFS by addressing the demand destruction brought on by expanded use of small refinery exemptions and prospectively account for those exemptions using a three-year rolling average of actual waived gallons, beginning with the 2020 biofuel standard. Today’s announcement falls well short of that mark, only accounting for the Department of Energy recommendations that the EPA itself ignored.

“The Iowa Corn Growers Association (ICGA) will continue to fight back on demand destruction with our biofuels champions and President Trump to ensure the final 2020 Renewable Volume Obligations (RVO) reflect the commitments made by the President to restore the integrity of the RFS to the benefit of farmers and consumers everywhere.”

Statement from Kevin Ross, president of the National Corn Growers Association:

“While corn farmers appreciate the EPA’s intent to follow Department of Energy recommendations on waivers going forward, the proposed rule fails to provide the assurance needed that EPA’s practices for granting waivers will change going forward. Farmers have long been skeptical of the EPA’s administration of the RFS. This proposal doesn’t provide farmers confidence in EPA’s ability to follow through and make this right. President Trump made a commitment to farmers and instructed the EPA to follow the law, but this proposal appears to come up short again.”

Growth Energy CEO Emily Skor issued the following statement:

“It is unconscionable that EPA’s proposal betrays President Trump’s promise to rural America. A week ago, Administrator Wheeler personally took to the airwaves and promised Iowa farmers that he would accurately account for lost gallons moving forward based on the ‘last three years of the waivers.’ Administration officials repeatedly said that 15 billion gallons will mean 15 billion gallons and this proposal fails to ensure that farm families and biofuel producers have the certainty they need to reinvest and rebuild after three years of massive demand destruction at the hands of EPA.   
    
“After completely ignoring Department of Energy (DOE) advice
 to reduce exemptions, EPA now proposes to use DOE’s deflated numbers to turn a real fix into little more than a Band-Aid. To effectively address demand destruction moving forward, EPA’s fix must incorporate a projection of actual exempted gallons, not simply apply an out-of-date DOE recommendation. 

“The proposal released today will do nothing to bring back the ethanol plants that have shut down or help the burden that many of our corn farmers currently face. Every day that passes without the true solution President Trump promised means more and more pain for America’s farmers and rural workers.” 

Stay tuned from more reaction on Brownfield.