The Environmental Protection Agency (EPA) recently released proposed 2019 Renewable Volume Obligations (RVOs) for the Renewable Fuel Standard (RFS). The proposed RVOs set blending targets across different classes of biofuels and take comment on a range of issues related to the RFS in advance of a final regulation.
The EPA issued a proposal for 19.88 billion gallons of biofuel including 15 billion gallons of conventional biofuel to be blended in 2019, which on its surface is in line with the statutory levels intended by Congress. However, that blending target cannot be relied upon, because recent actions at the EPA have made clear that those gallons are not guaranteed to be blended. The agency has aggressively abused the so-called “small refinery waiver,” which was designed for small refineries experiencing disproportionate economic hardship to absolve them of their duty to blend biofuels under the RFS. Under the watch of this EPA, the frequency of these waivers being issued has dramatically spiked, and the waivers have been granted to numerous oil refiners including some of the world’s largest oil companies.
The misuse of EPA waivers has destroyed an estimated 2.25 billion gallons of biofuel demand in 2016 and 2017 alone by giving oil refiners a handout that allows them to neglect their responsibility to blend ethanol into the fuel supply. This flies in the face of the intent of the RFS and hurts farmers across the American heartland at a time when farm income is at a 12-year low, all to line the pockets of a select few oil refiners. The 2019 RVO proposal does nothing to reallocate the countless gallons of ethanol that were lost due to RFS waivers handed out by the EPA, nor does it restore the volumes lost to from the 2016 RVO, despite our victory in court last July that directs EPA to properly exercise its RVO authority which would lead to the restoration of 500 million gallons of biofuel demand.
President Trump has stated his support for farmers, the biofuels industry, and the RFS. Meanwhile, the EPA continues its failure in implementing the President’s agenda at the expense of rural America. We need you to take action today to tell EPA regulators that they must restore biofuel volumes under the RFS and stop bailing out oil refineries.