EPA announced a one-week delay to its rollout of the final renewable volume obligations, which set annual biofuel blending targets under the RFS, including proposed RVOs for 2023, 2024, and 2025.
EPA and Growth Energy filed a notice with the court agreeing to extend the June 14 deadline that was set by consent decree to June 21, which was quickly shared in various media reports.
In December, EPA announced blending mandates at a level that would essentially curtail growth in soy-based biofuels over the next three years, drawing surprise and concern from ASA and others in the biofuels industry. ASA called the draft set rule “deeply disappointing for the biofuels industry” and has continued emphasizing how significantly dialing back volume obligations threatens the integrity of the RFS and producers.
ASA Chief Economist Scott Gerlt told Bloomberg this week that EPA’s proposed numbers would “almost flatline demand despite growth in the industry.”
Last week, ASA joined Clean Fuels Alliance America and other industry stakeholders on a letter urging President Biden to ensure that EPA substantially boosts the biomass-based diesel and advanced biofuels volumes in the RFS for 2023, 2024 and 2025.
Biomass-based diesel is a vital domestic market for soybean farmers. The RFS has reduced U.S. dependence on foreign oil, lowered fuel prices, reduced greenhouse gas emissions, and added value by increasing demand for soybeans and corn.
ASA continues its call on EPA to support growth of the biofuels industry by raising volumes to a level that accounts for actual production, the significant investments made in soybean crush facilities, and the role of biobased diesel in lowering carbon emissions.
