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August 2, 2019

EPA Holds Public Hearing On RVO Proposed Rule Under RFS

Lynn L Bergeson

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On July 31, 2019, EPA held a public hearing in Ypsilanti, MI, to obtain stakeholders’ input on its proposed rule to set Renewable Fuel Standard (RFS) 2020 renewable volume obligations (RVO) and 2021 biomass-based diesel volume. Among the various stakeholders providing oral statements to EPA were representatives from Growth Energy, the National Corn Growers Association (NCGA), the Renewable Fuels Association (RFA), Hero BX, and the National Biodiesel Board (NBB). Most of the oral comments provided were in opposition to the proposed rule. Industry representatives highly critized the proposed rule, stating that the RVOs proposed were unreasonable and would negatively impact economic growth through demand destruction and job losses. Many stakeholders also expressed disappointment that, in its proposed rule, EPA failed to account for approved Small Refinery Exemptions (SRE) granted. In agreement with other stakeholders’ comments, Growth Energy’s Vice President of Regulatory Affairs, Chris Bliley, stated that progress made thus far under the RFS Program is being threatened by this proposal. Bliley also added that too many exemptions have been granted in secrecy by EPA. Criticism was also made regarding compliance costs and its negative impact on jobs should this rule be approved. Tim Keaveney, Executive Vice President of Business Development at Hero BX, urged EPA to raise the RVOs for biodiesel to enable further industry growth. Overall, there seemed to be a general agreement that the proposed rule betrays President Trump’s commitment to maintaining the RFS Program.