Posted November 20, 2013
The U.S. Environmental Protection Agency (EPA) recently released its proposed 2014 Renewable Fuel Standards (RFS), reducing the proposed volume to 15.21 billion gallons, according to the EPA news release available here. The proposed rule is available here.
EPA Administrator Gina McCarthy said, “We have made great progress in recent years, and EPA continues to support the RFS goal of increasing biofuel production and use. We look forward to working with all stakeholders to develop a final rule that maintains the strength and promise of the RFS program.”
The proposal covers a variety of approaches for setting the 2014 standards, and includes production and consumption ranges for “key categories of biofuel covered by the RFS program.”
The proposal drew criticism from ethanol advocates, who say the decision will hurt Iowa’s economy, farmers, and rural communities, according to an article by the Des Moines Register available here.
“It’s pulling the rug out of Iowa and America’s farmers,” said Monte Shaw, executive director of the Iowa Renewable Fuel Association. “I hope we don’t look back at this date as the beginning of another farm crisis.”
Iowa has 42 ethanol and 12 biodiesel plants with three cellulosic plants under construction.
The EPA said that part of the problem was that fuel systems and service stations are not set up for more than 10 percent ethanol, according to a New York Times article available here. Most cars and gas stations are limited to E10 and there is little consumer demand for more – some call this the “E10 blend wall.”
Since the Energy Independence and Security Act of 2007 was passed, oil imports have dropped and domestic production has increased. Domestic oil production is now exceeding oil imports for the first time in many years. The demand for motor fuel has also declined, which was not anticipated by the 2007 law.
For more information on renewable energy, please visit the National Agricultural Law Center’s website here.
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