EPA received positive reactions from the Kansas and National Corn Growers Association on Thursday when the agency released its proposed ethanol levels for 2023, 2024 and 2025 for the Renewable Fuels Standard (RFS). The proposed Renewable Volume Obligation (RVO) includes an implied 15 billion gallons for conventional ethanol for 2023, which increases to 15.25 billion gallons for both 2024 and 2025. Kansas Corn Growers Association and National Corn Growers Association leaders were pleased with the EPA's forward-looking approach of annual increases in the RVO proposal. Kansas Corn CEO Greg Krissek said the RVO proposal is positive overall, meeting the statutory level in 2023, with higher amounts in 2024 and 2025.
"The statutory level is 15 billion gallons, but ethanol can play a much bigger role in our nation's fuel supply. A simple step is to remove the oautdated barrier to year-round sales of E15 fuel, which we are working to pass through Congress," Krissek said. "In the past, EPA was known to delay the RVO proposals and then issue them retroactively. Providing this baseline through 2025 gives us more certainty," Krissek said.
The Renewable Volume Obligation (RVO) sets the annual volumes of ethanol and other renewable fuels to be used in the fuel supply to reduce emissions, expand and diversify the fuel supply, improve energy security and lower costs.
"EPA clearly recognizes that renewable fuels like ethanol play a critical role in cutting greenhouse gas emissions, increasing U.S. energy independence and providing long-term relief to consumers at the pump. With continued pressure on energy security and costs and the need to accelerate carbon emission reductions, however, biofuels can contribute even more, and we will make that case to EPA for the final volumes," said National Corn Growers Association President Tom Haag.
In addition to proposing the levels through 2025, the agency also followed through on proposing to restore the remaining 250 million gallons from a prior court decision for 2023. EPA did not propose a specific update for lifecycle GHG assessments of biofuels but instead will take further comment and review options for a future update. Such an update is overdue and necessary to accurately reflect the shrinking carbon footprint of today's ethanol, and NCGA will continue urging EPA to adopt the Department of Energy's data-driven assessment.
The 2023-2025 proposal is EPA's first RFS volume rule based on qualitative environmental, economic and agriculture factors listed in the statute, rather than specific volumes in law, which afforded EPA greater latitude in proposing these annual requirements within certain guardrails. As such, EPA builds on the strong baseline of the 2022 RFS volumes, which included the full statutory 15 billion gallons for ethanol, providing for modest future growth with this proposal.
KCGA and NCGA will submit detailed comments to EPA on the proposal, and EPA has agreed to finalize the RFS volumes by June 2023.
Categories: Kansas, Crops, Corn