The biofuels industry has faced a rough stretch in recent years, with uncertainty and setbacks taking a toll not just on producers but on the entire agricultural economy. Blending decisions made under the previous administration led to the closure of several ethanol and biodiesel plants across Iowa, the nation’s leading biofuels producer. Those closures hit rural communities hard and weakened demand for corn and soybean oil. But last week’s announcement from the EPA on new Renewable Volume Obligations (RVOs) could finally offer the consistency and momentum the industry has been waiting for.
Monte Shaw, Executive Director of the Iowa Renewable Fuels Association, says the EPA’s announcement is a welcome development for Iowa’s ethanol producers. He’s been closely watching the Renewable Volume Obligations and is encouraged by the stronger numbers laid out in the new proposal.
Shaw says that the proposal also addresses foreign and domestically produced feedstocks and how they fit into the Renewable Fuel Standard going forward, and Shaw believes that there will be a lot of comment on that. It’s a debate IRFA will have to have with its members.
Still, Shaw cautions that the strength of the new RVOs could be undercut if the EPA begins handing out excessive Small Refinery Exemptions without reallocating the lost gallons. He warns that even a strong Renewable Fuel Standard can be quickly weakened if blending obligations aren’t fully enforced.
Iowa’s rural communities have felt the sting of biofuel plant closures in recent years, with jobs lost and local economies disrupted. While no promise that shuttered facilities will reopen overnight, Shaw says this new direction puts the industry on a path toward rebuilding production strength and stability.
The EPA’s proposal will now move into a 90-day public comment period, giving farmers, producers, and stakeholders a chance to weigh in before the rule is finalized, likely sometime around harvest this fall. Shaw and others in the industry say it’s a critical time to speak up in support of strong blending targets and American-made fuels. The biofuels sector plays a major role in supporting farm income and rural jobs, and these decisions will shape its future. Farmers are strongly encouraged to make their voices heard.
The full interview with Monte Shaw will be part of this afternoon’s edition of Ag Matters PM.
