I feel like I am becoming a broken record when it comes to talking about the hurdles that the biofuels industry has had to leap over these past few years. We all know that 2020 was supposed to be their year to shine. 2020 was a year that nobody anticipated, but let?s put the pandemic on the back burner for right now. The challenge we are focused on today is the industry?s old nemesis at the Environmental Protection Agency (EPA).
Audio: Full interview with Growth Energy CEO Emily Skor
If you do not factor in the COVID-19 pandemic, nothing has caused more hurt to the biofuels industry than the very office that you would think would be more supportive. We all know that the EPA under the Trump administration has done more to undermine the Renewable Fuels Standard and prop up Big Oil. Sure, the current iteration of the office can tout the passage of year-round E15 and the recent denial of a few small refinery exemption waivers (SREs). While the industry should be, and is, thankful for that, it does not make up for the demand destruction and the lack of accountability in the prior years.
As the administration enters its lame-duck period, it should be no surprise that not a lot will get done. That is the status quo in lame-duck administrations of the past. What is aggravating is that deadlines that are mandated by law are being simply ignored. Deadlines that have to do with an industry that the outgoing administration heavily pledged to support in both campaigns.
The deadline for the final approval of the 2021 Renewable Volume Obligations was November 30th. That deadline has passed. Not only do we not have a final RVO rule for next year, but we have also not even seen a proposal for the new year. Many ag and biofuels groups spent November lobbying the EPA to get off the pot and do their job. Now, as the deadline has passed, one biofuels group may be taking a move out of the current administration?s playbook and going to court. However, the timing may put a burden on the incoming Biden administration. Either way, there is a demand for accountability to the law, no matter who sits in the oval office next month.
Emily Skor is the CEO of Growth Energy. Yesterday, Growth Energy notified the EPA of their intent to sue the agency over their failure to follow the law and deliver the 2021 RVOs. When we talked on December 1st, Skor said they are keeping the foot on the gas.
One may question why the EPA would flout a federally mandated deadline. Skor simply says it is politics. The administration was trying its best not to ruffle its support bases in the biofuels and fossil fuels sectors ahead of an election.
The intent to file suit gives the EPA 60 days to do something on the RVOs, or legal action will be taken by Growth Energy. However, if you are doing the math at home, we have only 49 days until the new administration comes in. Skor says it does not matter whose Administration is in control, the RVOs must be taken care of.
Skor says she is optimistic that we will see new support for biofuels under a Biden Administration. He campaigned heavily on the inclusion of biofuels for the rural economy. If anything, this action sends a signal to the incoming Biden Administration that they are going to have to start on day one to build up trust with an industry and a voter base that has been burned.
A copy of Growth Energy?s letter to EPA can be found here.
