Ethanol organization representatives met Wednesday with with the Office of Management and Budget (OMB) to discuss the forthcoming rule from the Environmental Protection Agency regarding volume obligations under the Renewable Fuel Standard (RFS).
Renewable Fuels Association (RFA) president Bob Dinneen and Growth Energy CEO Tom Buis delivered the message that the RFS is working and that there is no reason for EPA to set the Renewable Volume Obligations (RVOs) for undifferentiated renewable fuel (primarily corn ethanol) below the levels specified in the statute.
Dinneen said data show the U.S. ethanol industry would have no problem meeting the 15 billion gallon blending level specified by the statute. “The latest data from the Energy Information Administration show that gasoline consumption projections for 2016 have increased. In fact, EIA expects 2016 gasoline demand to achieve a nine-year high,” said Dinneen. “Our calculations show that because of the uptick in gasoline demand alone, EPA must increase the 2016 RVO by 270 million gallons.”
Dinneen added that the EPA significantly understated the use of E85 and non-ethanol conventional renewable fuels, including non-advanced renewable diesel and biodiesel, in its proposal. “We provided OMB with data showing that EPA has understated the likely market for E85 and non-ethanol conventional biofuels in 2016 by at least 440 million gallons,” said Dinneen. “All of this suggests there will be at least 14.7 billion gallons of undifferentiated renewable fuel blended next year.”
“This meeting was really our closing argument before the administration makes its final decision. We impressed upon OMB that the oil industry’s ‘blend wall’ narrative is simply not true,” Buis added. “The data is there to prove the value of the program and it shows the RFS is doing exactly what it was intended to do. The president needs to uphold the statute.”
EPA is expected to issue the final RFS rule for 2014-2016 on or before November 30.