Clean Fuels Applauds Governors’ Letter on RFS BBD Volumes

May 25, 2023

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(Clean Fuels Alliance America) Letter calls proposed RVOs “exactly the wrong signal to send right now” -- Today, Clean Fuels Alliance America welcomed a letter sent by Govs. Kim Reynolds (R-IA), Mike Parson (R-MO), and Jim Pillen (R-NE) to EPA Administrator Michael Regan, asking the agency to substantially increase the biomass-based diesel (BBD) and advanced biofuels volumes in the Renewable Fuel Standards for 2023, 2024 and 2025. The letter points out that the Environmental Protection Agency proposed BBD volumes below 3 billion gallons through 2025, even though the U.S. industry produced more than 3 billion gallons in 2022. EPA is expected to finalize the RFS volumes by June 14.

“Considerable investments by biodiesel and renewable diesel producers, oilseed processors, and farmers in our states will be put at risk without a true upward trajectory for the RFS volumes,” the governors write.

“Limiting rural economic development and hindering opportunities for farmers in our states is the wrong approach,” the letter continues. “Adding to the supply of fuel, expanding agriculture markets, and supporting rural economies is the right thing to do right now.”

Download the letter.

“Domestic biodiesel, renewable diesel, and sustainable aviation fuel producers, soybean growers and processors, and many other allied industries are looking to EPA to deliver on the promise of an upward trajectory for RFS volumes,” stated Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “Our members have made significant investments to grow the industry, and those investments are already paying off.”

“We thank Governors Reynolds, Parson and Pillen for highlighting the imbalance between EPA’s promised trajectory for the RFS and its proposal,” Kovarik added. “In the first three months of 2023, the clean fuels industry increased biodiesel and renewable diesel production enough to completely fill the meager space that EPA proposed for the next three years. EPA must significantly expand the RFS volumes to support the continued growth and availability of advanced biofuels.”

Dave Walton, a member of Clean Fuels Alliance America’s governing board and a farmer from Wilton, IA, stated, “A year ago, our industry cautiously celebrated what EPA called a ‘jumping off’ point that would put RFS volumes on an upward trajectory. But EPA’s proposal did not deliver on that promise; it wouldn’t provide any growth at all if you weigh it against the current pace of industry expansion. Biodiesel producers, oilseed processors and farmers face real-world consequences from low RFS volumes. There are 19 soybean processing projects in the Midwest to expand or build new facilities. As drafted, EPA’s proposed rule could put these investments at risk.”

Missouri Soybean Association President Matt Wright, a soybean grower from Emden, MO, said, “Planned growth of the biodiesel and renewable diesel industry promises substantial economic opportunities for farming communities. Biodiesel production adds nearly $500 million to the value of our state’s soybean crop and supports thousands of jobs. Expected growth has encouraged investment in additional soybean processing capacity that will keep more value of our soybean crop here in our local communities. As capacity and production grows, the economic benefits will increase – unless EPA fails to get the RFS volumes right.”

Greg Anderson, also a member of the Clean Fuels governing board and a farmer from Newman Grove, NE, added, “Homegrown biodiesel and renewable diesel production meets every one of the goals for the Renewable Fuel Standard – cleaner air, energy security, rural economic growth and opportunity. And it is providing drivers a break on fuel prices at the pump by increasing the supply. EPA has no reason to set low goals for the advanced biofuel sector.” READ MORE

Iowa governor joins appeal to EPA over biodiesel (Radio Iowa)

INSIDE CFAA: Champions, Allies Stand Up for Clean Fuels (Biodiesel Magazine)

Secretary Naig, 10 other commissioners of agriculture raise concerns with EPA about RFS volumes (Iowa Department of Agriculture and Land Stewardship/Biobased Diesel Daily)

LETTER TO THE PRESIDENT ASKS EPA TO SUPPORT RENEWABLE DIESEL, BIODIESEL IN NEW RFS RULES (Brownfield Ag News)

Ethanol Blog: Biomass Diesel, Advanced Biofuels Industries Ask Biden For Bump in Renewable Fuel Standard Volumes (DTN Progressive Farmer)

Excerpt from Brownfield Ag News: More than 70 biofuel stakeholders are calling on the Biden administration to increase biomass-based diesel and advanced biofuels volumes as the EPA is expected to finalize Renewable Fuel Standard volumes next week.

Paul Winters with Clean Fuel Alliance America tells Brownfield the industry produces more fuel than what the current RFS proposal calls for. “It’s going to undercut the price of Rims. It’s going to discourage production. It’s going to undermine investments that our industry has made in producing new feedstocks and building new facilities, research and development on new fuels and new markets.”

Clean Fuels and 75 other organizations sent President Joe Biden a letter Thursday asking him to ensure that the Environmental Protection Agency increase biomass-based diesel and advanced biofuel volumes by 500 million gallons. Last month, the group sent EPA a letter requesting additional volume capacity.

Winters says the proposal won’t help create additional demand. “Companies have made these investments. They’ve made the commitments that they are counting on for value for their product. If EPA does not raise the RFS volumes, they’re going to undercut the value of biodiesel and renewable diesel.”

And, he says, that could negatively impact the soy crushing industry. “If the end market here in the United States for crush capacity doesn’t continue to grow, then crushers are going to have to make some choices about those investments, either delaying you know completion or or looking at older facilities maybe.”

EPA has until next Wednesday, June 14^th , to release the final volumes.

The American Soybean Association, 22 state soybean associations, Diesel Technology Forum, National Energy and Fuels Institute, National Oilseed Processors Association, North American Renderers Association, and U.S. Canola Association also signed the letter. READ MORE

Excerpt from DTN Progressive Farmer: On the eve of the expected release of the final Renewable Fuel Standard volumes for 2023 to 2025, a group of 75 industry representatives asked President Joe Biden to ensure the EPA "substantially" increases volumes for biomass-based diesel and advanced biofuels above the agency's original proposal.

In a letter to Biden, Clean Fuels Alliance America along with the likes of the American Soybean Association and 22 state-level soybean associations, the Diesel Technology Forum, National Energy and Fuels Institute, National Oilseed Processors Association, North American Renderers Association and the U.S. Canola Association, said the industries already are producing more biofuels than the original proposal called for.

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"The proposed RFS volumes simply do not provide sufficient market space for the fuels that are produced and available now to help numerous industries decarbonize their transportation footprint," the letter said. "The low volumes threaten the ability of new market sectors, like marine and aviation, to decarbonize in the near term.

"The undersigned have asked EPA to annually increase the biomass-based diesel volumes by 500 million gallons. Given the demonstrated increase in production in the first four months of this year, the request is very conservative. As your administration reviews the RFS rule for 2023, 2024 and 2025 before its final release on June 14, we ask that you ensure a true upward trajectory for the program's volumes to further facilitate the growth of homegrown, low-carbon, advanced biofuels."

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"That proposal severely undermines the rapid growth of domestic biodiesel and renewable diesel production," the letter said. "It would allow no market space at all for sustainable aviation fuel."

EPA data shows domestic biodiesel and renewable diesel production for January through April 2023 is 30% higher compared to the same four-month period in 2022.

"The domestic production rate is likely to increase as companies complete construction of additional new capacity and bring it online," the letter said.

"Companies across 10 different Midwestern states have invested more than $5 billion to expand or construct 20 oil-seed processing facilities over the next three years."

Kurt Kovarik, vice president of federal affairs with Clean Fuels, said in a statement, "Our members, agriculture partners, and fuel users have all made significant investments to grow the industry, and those investments are already paying off. In the first months of 2023, the clean fuels industry increased biodiesel and renewable diesel production by more than 200 million gallons.

"EPA must follow through on its promise of an upward trajectory for RFS volumes. As capacity and production grows, the economic benefits will increase -- unless EPA fails to get the RFS volumes right." READ MORE