A group of 16 senators, led by Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minn., on April 8 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to increase renewable volume obligations (RVOs) and account for small refinery exemptions (SREs) in the agency’s upcoming Renewable Fuel Standard rulemaking. 

In their letter, the senators encourage Zeldin to increase the RVOs for biobased diesel and advanced biofuels “to levels that are consistent with production and availability, while ensuring an equivalent increase in total volumes to preserve demand across all categories of biofuels.” 

The letter explains that low RVOs for biomass-based diesel and advanced biofuels have caused several biodiesel plants to close or idle over the past three years. “Biofuels are a large economic driver for rural America as farmers’ crops are used for feedstocks and many production facilities are located in small communities,” the senators wrote. “That is at risk if RVO standards are set too low.”

The senators are also urging the EPA to provide multi-year RVO standards to provide certainty and growth for the biofuels industry. “Long term industry stability helps drive continued investments in biofuels which in turn helps keep consumer costs low,” they wrote. 

In addition, the letter addresses the impact of SREs on RVOs. “Should EPA grant any small refinery exemptions, the gallons that would have been obligated to those refiners should be added back into the total number of required gallons, as intended by the structure of the RFS, so that the full volume of the RVOs is accounted for and the overall RVOs are not effectively reduced after the rule is finalized,” the senators wrote.

In addition to Grassley and Klobuchar, the letter was signed by Sens. Joni Ernst, R-Iowa; Tammy Baldwin, D-Wis.; Tammy Duckworth, D-Ill.; Richard Durbin, D-Ill.; Deb Fischer, R-Neb.; Roger Marshall, R-Kan.; Jerry Moran, R-Kan.; Gary Peters, R-Mich.; Pete Ricketts, R-Neb.; Jeanne Shaheen, D-N.H.; Elissa Slotkin, D-Mich.; Tina Smith, D-Minn.; Mike Rounds, R-S.D.; and Josh Hawley, R-Mo.

The Renewable Fuels Association has thanked the group of senators for advocating for a strong RFS. “These senators understand the importance of lower-cost, American-made renewable fuels to both the farm economy and drivers across the country,” said Geoff Cooper, president and CEO of the RFA. “We thank Sens. Grassley and Klobuchar, and their colleagues, for urging EPA to swiftly finalize strong Renewable Fuel Standard volumes to support American energy independence and economic strength.”

Growth Energy is also commending the senators’ support of the RFS. “When the Senate’s biofuel champions talk, EPA should take care to listen,” said Emily Skor, CEO of Growth Energy. “This letter hits all the right notes when it comes to offering guidelines that EPA should follow in order to set the strongest possible RVOs that deliver the greatest amount of economic benefits to the rural economy. We commend Senators Grassley and Klobuchar for their leadership in drafting this letter, and we urge EPA to take its advice by setting higher biofuel blending volumes, issuing RVOs for more than just one year, and making sure that any gallons lost to SREs are added back into the total number of required biofuel gallons.” 

A full copy of the letter is available on Grassley’s website.