The Renewable Fuel Standard (RFS) marked its 17th anniversary on August 8th. Joe Kakesh, general counsel for Growth Energy, talks about how the program is changing.
?Until recently, Congress gave the EPA specific statutory volume for blending each year through 2022,? Kakesh said. ?But starting in 2023, EPA is now required to establish these Renewable Volume Obligations, or RVOs, through a process called The Set. Rather than being given these numbers by Congress, EPA determines what the volume is going to be based on six factors that include reference to climate change, the impact of the RFS on rural economic development, energy security, and it’s also required to consult with the U.S. Department of Agriculture and the Department of Energy in making those determinations about volumes.?
He says the RFS has been the most successful clean-energy policy in American history. The Set offers an opportunity to bring the program to its full potential.
?To accelerate climate progress, we have to drive biofuels growth across all categories of biofuels,? Kakesh said. ?And The Set offers EPA policymakers an excellent regulatory vehicle to take advantage of readily available climate solutions, such as biofuels. But on the flip side, the failure to embrace this opportunity would undermine the Biden administration’s efforts to achieve its climate goals. As the President himself has said, you simply can’t get to net zero by 2050 without biofuels, so let’s not lose that opportunity as we pivot in The Set toward these six statutory volumes.?
Kakesh said Growth Energy has three expectations for the EPA regarding the RFS.
?We’re laser-focused on making sure that the set reflects Congress’s overarching directive to EPA to steadily expand the critical role that biofuels play in mitigating climate change and lowering prices at the pump,? Kakesh said. ?We?ve outlined a number of expectations for EPA. First, ensure that ethanol continues to play a growing role in driving climate progress, as Congress intended, building on those 15 billion gallons of conventional biofuels set in the 2022 RVO. That’s your floor. Second, EPA needs to update its models on the lifecycle analysis for greenhouse gas emissions to reflect the best available science that highlights the contributions of low-carbon bioethanol to our nation’s climate goals. And third, EPA needs to set forward-looking requirements for advanced and cellulosic biofuel categories that spur continued innovation and growth without favoring one technology over the other.?
Kakesh added that The Set marks a watershed moment for the RFS.
?It’s vital that President Biden’s team at the EPA fully embrace this opportunity to hold down fuel prices and rapidly decarbonize the transportation sector by advancing biofuels,? Kakesh said. ?Under a consent decree agreement, EPA is going to be required to formally propose the RVOs under The Set by November 16, 2022, to give the industry some stability and expectations for future years. There’s also going to be a public comment period. In the meantime, Growth Energy is rallying industry stakeholders to stay engaged in the process and make sure EPA understands the importance of biofuels in our climate future.?
For more information, go to growthenergy.org.
