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RFS falling short of corn growers’ wishes – again


By ANN HINCH
Associate Editor

WASHINGTON, D.C. — While Monday’s announcement from the U.S. EPA finalizing Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS) for 2016 showed a boost over its proposal several months ago, groups representing corn production indicated the news still leaves growers cold.
“While we are pleased to see the EPA take a step forward and revise its original proposal, the fact remains that any reduction in the statutory amount will have a negative impact on our economy, our energy security and the environment,” said Chip Bowling, president of the National Corn Growers Assoc. (NCGA). “We should be strengthening our commitment to renewable fuels, not backing down.”
Because the EPA has not finalized its RVO mandates a year ahead since 2013, 2014 and 2015 “rules” are simply what’s been produced already, though there is a month left in 2015. This year’s RVOs are to total 16.93 billion gallons (including mostly corn-based ethanol) – of that, 123 million are cellulosic biofuel, 2.88 billion are advanced biofuel and 1.73 billion are biomass-based diesel.
The total of 16.93 billion gallons is 630 million gallons more than proposed back in May – and for next year, Monday’s final mandate of 18.11 billion is 710 million more than EPA put forth in May. It is, however, only about 81 percent of the 22.25 billion gallons Congress originally envisioned to be produced during 2016 when it approved the RFS back in 2007.
The cellulosic mandate saw a boost from May’s proposed 206 million gallons in 2016, to 230 million, as did advanced biofuel, from 3.4 billion to 3.61 billion. Like corn ethanol, both are well below what was hoped for in 2016 by the 2007 Congress – 4.25 billion and 7.25 billion gallons, respectively.
Biomass-based diesel RVOs saw a jump from 1.8 billion to 1.9 billion gallons, with the bonus of a 2017 mandate of 2 billion. Biomass-based diesel is made up mostly of biodiesel but also includes renewable diesel, a biofuel made from the same feedstocks using a different technology.
The National Biodiesel Board (NBB), at least, seemed pleased with the EPA’s final numbers. CEO Joe Jobe remarked, “It is a good rule. It may not be all we had hoped for, but it will go a long way toward getting the U.S. biodiesel industry growing again and reducing our dangerous dependence on fossil fuels.”
“We certainly think the biodiesel and overall advanced biofuel standards could and should have been higher,” Jobe added. “The production capacity is there, and we have surplus fats and oils that can be put to good use.”
12/3/2015