Posted February 4, 2014
Renewable fuels groups opposed the U.S. Environmental Protection Agency’s (EPA’s) proposal to reduce the 2014 renewable fuel standard (RFS), arguing that the decision violates the Clean Air Act, according to a Bloomberg BNA article available here.
In November, the EPA released its proposed 2014 RFS, reducing the proposed volume to 15.21 billion gallons. The comment period for the proposed rule closed on January 28. The reduction, according to EPA, was due to a lack of demand for higher ethanol blends and the fact that most cars and gas stations are limited to E10 with little consumer demand for more — what some call the “E10 blend wall.”
The EPA proposed to reduce the statutory blending requirements under Section 211(o)(7) of the Federal Air Pollution and Control Act (also known as the Clean Air Act, 42 U.S.C. §§7401-7671q), which “allows it to waive the RFS requirements if implementing the standard could cause severe economic harm or if there is inadequate domestic supply to meet the requirements.”
Renewable fuels producers dispute the EPA’s interpretation of its waiver authority.
Bob Dinneen, President and CEO of the Renewable Fuels Association, expressed concern that the EPA’s decision will negatively affect the Renewable Identification Number (RIN) market, according to an article by the Wisconsin Ag Connection here. Dinneen said that the proposed rule “completely eviscerates the RIN market.” “The most significant factor contributing to the so called ‘blend wall’ is EPA’s proposal itself,” Dinneen continued.
The Iowa Renewable Fuels Association also submitted comments on the proposed rule, giving several reasons for a higher RFS, according to the Cedar Valley Times here.
For more information on renewable energy, please visit the National Agricultural Law Center’s website here.
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