Ethanol Blog

LINCOLN, Neb. (DTN) -- A bipartisan group of U.S. senators on Tuesday asked the U.S. Environmental Protection Agency to set higher volumes in the Renewable Fuel Standard to help consumers and grow the economy, while accounting for any biofuels volumes lost if the agency grants small-refinery exemptions.

In a letter sent to EPA Administrator Lee Zeldin the group of 17 senators said they'd like to see a multi-year RFS proposal starting with 2026 volumes.

The 2026 volumes should have been finalized in November 2024 but were put on hold until 2025.

"As the Trump administration pursues policies to increase liquid-fuel production and as biofuel production capacity consistently increases, RVO (renewable volume obligations) levels should also increase to reflect these changes," the letter said.

"The biofuels market continues to expand to new frontiers including marine shipping, aviation and rail. These markets are driven in part by demand for low-carbon fuels that biofuels can uniquely provide. We ask that the EPA raise RFS volumes for biomass-based diesel and advanced biofuels to levels that are consistent with production and availability, while ensuring an equivalent increase in total volumes to preserve demand across all categories of biofuels."

The letter is signed by Sens. Joni Ernst, R-Iowa; Charles Grassley, R-Iowa; Amy Klobuchar, D-Minnesota; Tammy Baldwin, D-Wisconsin; Tammy Duckworth, D-Illinois; Richard Durbin, D-Illinois; Deb Fischer, R-Nebraska; Roger Marshall, R-Kansas; Jerry Moran, R-Kansas; Gary Peters, R-Michigan; Pete Ricketts, R-Nebraska; Jeanne Shaheen, D-New Hampshire; Elissa Slotkin, D-Michigan; Tina Smith, D-Minnesota; Mike Rounds, R-South Dakota; and Josh Hawley, R-Missouri.

"Additionally, as you consider policies that reduce consumer costs, biofuels provide a buffer to market fluctuations in the liquid fuel market, consistently costing consumers less than traditional liquid fuels," the letter said.

"We ask the EPA to provide multi-year RVO standards to provide certainty and growth for the biofuels industry. Long-term industry stability helps drive continued investments in biofuels which in turn helps keep consumer costs low."

The senators said rural communities have paid a price when RFS volumes are "set too low."

They point to the closure or idling of "multiple biodiesel plants" during the past three years because volumes were set "significantly below" what industry requested and production capacity.

"Biofuels are a large economic driver for rural America as farmers' crops are used for feedstocks and many production facilities are located in small communities," the letter said.

"That is at risk if RVO standards are set too low. Additionally, should EPA grant any small-refinery exemptions, the gallons that would have been obligated to those refiners should be added back into the total number of required gallons, as intended by the structure of the RFS, so that the full volume of the RVOs is accounted for and the overall RVOs are not effectively reduced after the rule is finalized."

Read more on DTN:

"Small Refiners Ask Trump Administration For Seat at Table in RFS Discussions," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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