Did the Environmental Protection Agency take action recently on Renewable Volume Obligations by not actually taking any action? One ethanol group says yes it did.
Emily Skor, CEO of Growth Energy says the action EPA took was to essentially create more delay and with it more uncertainty.
“What EPA has proposed is that they want to indefinitely extend the compliance period for all of the outstanding RVO years of 2019 and 20, and 21 and 22. And of course, we don’t even have RVOs proposed, yet alone finalized, for 21 and 2022. So, essentially, this is a giant kick the can down the road. It really accomplishes nothing for us but prolongs uncertainty and instability, and so, needless to say, we’re pretty frustrated.”
Skor says what’s even more frustrating is that there’s no solid timeline for the resolution the biofuels industry needs.
“This is a proposal to indefinitely extend, so, what we need is we need to see the RVOs for 2021 and 2022. I mean, we’re already at the end of November, so, in all likelihood, when they do come out with 2021, it’s going to reflect the actual blending. Well, that’s not what the RFS intended, okay? You’re taking away that market-forcing mechanism that we need, so, we need the RVOs to come out. I actually testified before Congress making that point, and was very appreciative to see a lot of support from Republicans and Democrats on the House subcommittee that I was talking with, for the importance of how we’ve got to get the RFS out.”
What the biofuels industry doesn’t understand is the new administration appeared to be pro renewable fuels, but their actions aren’t matching up.
“From the outset, this administration and Mr. Reagan have talked about getting the RFS back on track. We all know that means getting it out on time, the blending requirements, And let’s see that 15 billion gallons of conventional ethanol blending.”
The ethanol industry is enjoying a bounce-back year in 2021 but Skor says they can’t keep going ahead without the certainty provided by the Renewable Fuel Standard.
Source: NAFB News