Ethanol Blog

LINCOLN, Neb. (DTN) -- Two national ethanol groups have filed motions to intervene in an ongoing Renewable Fuel Standard challenge to the latest volumes finalized by the Trump administration, gearing up for yet another court fight on the law.

In separate motions filed with the U.S. Court of Appeals for the District of Columbia Circuit on Wednesday, Growth Energy and the Renewable Fuels Association have decided to enter the fray in several consolidated cases filed against the RFS Set 2 rule. The RFS for 2026 and 2027 requires the blending with fossil fuels 25.82 billion gallons for '26 and 25.98 billion gallons for '27.

Most of the challenges filed by the Center for Biological Diversity, Sierra Club, American Fuel and Petrochemical Manufacturers and several refining companies, have argued in court filings that record-high RFS volumes set recently should be cut back.

Also included among the cases is a challenge to the partial waiver of 2025 cellulosic biofuels volume requirements.

In its motion to intervene, Growth Energy said if the petitioners succeed, it would lower RFS volumes and harm the biofuels and agriculture industries.

"Petroleum and ethanol are in a zero-sum competition: petroleum producers directly 'compete with biofuel producers in the motor vehicle fuel market because ethanol is a substitute for the traditional petroleum-based components of gasoline,'" Growth Energy said in its filing.

"RFS standards function as a barrier protecting renewable fuels against competition from petroleum producers for the content of the nation's transportation fuel up to the level of the standards. By reducing the RFS standards, the petitioners' challenges would lift that regulatory restriction, subjecting Growth Energy's members to increased competition from petroleum producers, to the members' detriment."

The RFA makes the same case in its motion to intervene, that petitioners' success would harm the ethanol industry.

"The result would be a reduction in demand for RINs (renewable identification numbers) and for qualifying renewable fuels, including the ethanol produced by RFA's members," the RFA said.

"That, in turn, is likely to reduce ethanol blending volumes and/or lower the per-gallon prices for ethanol, thereby reducing the revenues for RFA's ethanol producer members. As this court has previously recognized, 'the basic laws of economics' demonstrate that a reduction in RFS volumes would cause the demand for renewable fuels and feedstock to 'drop.'"

The RFA further argues that "any decrease in the volumes established in the Set 2 Rule would in turn decrease RIN prices, reduce ethanol blending rates, and ultimately reduce revenues for RFA's ethanol producer members" and that "intervening in this matter is RFA's best opportunity to prevent such harm to its members' business interests."

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

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