Secretary Vilsack Confirms Administration Support For Biofuel Production Leve

Last week, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack spoke at a biofuel industry conference and addressed concerns raised over the likelihood that the final 2014 Renewable Fuel Standard (RFS) rule would include renewable volume obligations (RVO) for total renewable fuel at levels below those included for 2014 under the statute. Generally, total renewable RVOs are comprised of corn-starch ethanol.

Secretary Vilsack projected a positive spin on this likelihood, reportedly telling the audience that the Obama Administration remains committed to working with the biofuels industry to get to 15 billion gallons of ethanol. The RFS would require the use of 15 billion gallons of total renewable fuel by 2022. It is generally predicted that the final 2014 RFS rule will raise the RVO levels for total renewable fuels over those contained in the proposed rule issued last year. RFS supporters in the biofuels industry, however, particularly those representing the corn ethanol industry, remain concerned that the reasoning behind final total renewable fuel RVOs will still be based partly on blend wall concerns argued by obligated parties and opponents to the law.