December 11, 2019
BY Erin Krueger
Rep. Collin Peterson, chair of the House Agriculture Committee, sent a letter to the U.S. EPA on Dec. 6 raising concerns that the agency’s supplemental notice of proposed rulemaking regarding small refinery exemptions (SREs) fails to uphold the integrity of the Renewable Fuel Standard.
In the letter, Peterson urges EPA Administrator Andrew Wheeler to ensure the final rule establishes a methodology that guarantees 15 billion gallons of conventional ethanol on an annual basis and keeps biodiesel requirements whole.
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The letter outlines the impact of the 85 SREs the agency has approved since early last year, which Peterson said have caused three ethanol plants to close permanently and another 14 to idle, affecting nearly 3,000 jobs and hundreds of millions of bushels of corn on an annual basis. In addition, 10 biodiesel plants have closed, impacting hundreds more workers.
“The RFS promises our rural economies that 15 billion gallons of conventional ethanol and increasing volumes of advanced biofuels such as biodiesel will be blended into the nation’s transportation fuel supply,” Peterson wrote. “This supplemental rule fails to provide a suitable methodology for accounting for granted SREs. It is wholly inadequate for EPA to account for SREs by arbitrarily basing those projections on recommendations from the Department of Energy (DOE). Not only has EPA consistently waived more gallons than DOE recommends, the method will simply not fulfill the annual promise of the RFS. Nothing short of meeting this promise is acceptable.
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“EPA’s proposed supplemental rule fails to provide the certainty needed in rural communities,” Peterson continued. “Without a binding commitment that EPA will account for exemptions granted by ePA, this rule fails to keep the RFS whole.”
A full copy of the letter can be downloaded from Peterson’s website.
The U.S. Energy Information Administration maintained its forecast for 2025 and 2026 biodiesel, renewable diesel and sustainable aviation fuel (SAF) production in its latest Short-Term Energy Outlook, released July 8.
XCF Global Inc. on July 10 shared its strategic plan to invest close to $1 billion in developing a network of SAF production facilities, expanding its U.S. footprint, and advancing its international growth strategy.
U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.
XCF Global Inc. on July 8 provided a production update on its flagship New Rise Reno facility, underscoring that the plant has successfully produced SAF, renewable diesel, and renewable naphtha during its initial ramp-up.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.