The final EPA rule sets the target for conventional renewable fuels - primarily ethanol - at 15B gallons - in 2018, but rejects pleas from biodiesel producers as it maintains a 2.1B gallon quota for biodiesel in 2019.
Today's announcement of the final 2018 Renewable Volume Obligation under the Renewable Fuel Standard is either pleasing or a missed opportunity, depending on your point of view.
Iowa Senator Joni Ernst has mixed emotions about the Environmental Protection Agency's Renewable Fuel Standard levels announced Thursday. That's a small bump from 19.28-billion-gallon standard from 2017.
The cellulosic mandate is an increase from the July proposal, but represents a cut of 23 billion gallons from the current level finalized past year by the Obama administration. The 2019 biodiesel amount is set for 2.1 billion gallons.
The agency is "discouraging investment and discouraging growth" by keeping biodiesel volumes flat, says Iowa Gov. Reynolds.
The EPA, which is required to announce the volumes targets on Thursday, did not immediately comment. "We would like to have seen a boost to the target blending levels for cellulosic biofuels, and we will continue to work with the administration to advance the RFS goal of further stimulating growth and showing USA leadership in 21st century fuels".
The Clean Air Act requires EPA to set the RFS volume requirements annually and to finalize the standards by November 30 for the following year. The agency maintained the requirement for conventional renewable fuels like corn ethanol at 15 billion gallons.
"As far as the advanced biofuels, a little disappointed". The cellulosic level was cut more than 7 percent from 2017, although less than the 25 percent cut that was originally proposed, according to the association.More news: Nissan Kicks Juke Out Of The Range At The LA Auto Show
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Kimberley says the 2.5 billion gallons they requested for 2019 was not only reasonable, but achievable.
Iowa Biodiesel Board Executive Director Grant Kimberly says they are disappointed with the decision.
Representatives of two major oil and gas industry associations said the RFS is outdated and in need of a major overhaul. Eventually, though, President Trump intervened and the proposals went by the wayside. "By rejecting structural changes to the RFS and finalizing a 15-billion-gallon conventional biofuels level, there is some certainty for rural America as it struggles with commodity surpluses".
Grassley, Ernst, King, Young, and Loebsack all ended their statements with an emphasis on their continued commitment to advocating for and defending the Renewable Fuel Standard and the USA biofuel industry.
On Thursday, the EPA chose to require refiners to blend 19.29 billion gallons of renewable fuels in 2018, up from 19.28 billion gallons this year. Under the RFS, ethanol has helped to lower prices at the pump, reduce greenhouse emissions, displace harmful toxic gasoline compounds, reduce crude oil imports, and boost local economies.
The head of the leading USA ethanol industry trade association applauded the EPA's decision to keep a 15-billion-gallon mandate for conventional biofuels.
American Soybean Association President Ron Moore said failing to increase the biodiesel RVO "continues to be a missed opportunity to capitalize on a valuable market for soybean oil", and that EPA should "take another look at biodiesel and the value US soybean farmers bring to the domestic energy discussion". "We think this action is bad for USA manufacturing and American consumers and encourage Congress to finally fix the RFS".