A renewable fuels group urges the Environmental Protection Agency to increase Renewable Volume Obligations.
Renewable fuels groups expect the Environmental Protection Agency (EPA) to release final Renewable Volume Obligations (RVOs) by month’s end. Final numbers serve as blending targets for the upcoming year. Numbers for ethanol and advanced will be for 2018 while numbers for biodiesel will be for 2019.
Growth Energy CEO Emily Skor stresses the importance of increasing advanced, biodiesel and cellulosic numbers.
“EPA proposed numbers lower than what the marketplace warrants and lower than what they should be, in some instances,” Skor said. “We’ve had a lot of conversation with the EPA. We brought forward data to show the marketplace reality warrants bringing those numbers up.”
Skor adds the final number for ethanol is expected to remain as proposed, at 15 billion gallons. If the EPA fails to increase RVO for advanced, biodiesel and cellulosic numbers, the numbers will send a chilling effect to investors.
“Eighty-percent of the investment in second-generation cellulosic technology is from people who are producing corn-based ethanol. This (will) very much have an impact on rural America and people throughout the state of Iowa, which is the largest producer of advanced biofuel in addition to first-generation corn biofuel, Skor said.
Skor adds renewable fuel investors are poised for growth, and need certainty and predictability in policy making.