A bipartisan group of 47 federal lawmakers, led by Sen. Chuck Grassley, R-Iowa, on Sept. 30 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to maintained proposed biomass-based diesel renewable volume obligations (RVOs) and move forward with plans to boost the domestic ag industry in its upcoming Renewable Fuel Standard “Set 2” rule.
The EPA on June released its proposed RFS “Set 2” rule, which aims to set 2026 and 2027 RVOs, including record high blending targets for biomass-based diesel. The rulemaking also includes provisions that make substantial changes to the RFS program by limiting the participation of imported fuels and feedstocks and eliminating electricity from the program.
As part of the effort to boost the domestic agriculture industry, the proposed rule would modify the value renewable identification numbers (RINs) based on whether the biofuel is derived from domestic or foreign sources. Under the proposed regulations, foreign biofuels and feedstocks would only generate 50% of the RIN value relative to domestic biofuels and feedstocks.
In the Sept. 30 letter, the lawmakers commend provisions of the proposed “Set 2” rule related to biobased-diesel (BBD) RVOs and foreign-produced fuels and feedstocks. “The combination of the strong BBD volumes coupled with prioritizing U.S. feedstocks represents a commonsense approach that puts American farmers first, strengthens domestic biofuel markets, and delivers tangible economic benefits to rural communities,” they wrote.
“Soybean oil may only represent 20 percent of the bean, but it accounts for more than half of its value in the U.S. market, and about half of that oil is used to make advanced biofuels such as biodiesel, renewable diesel and sustainable aviation fuel,” the lawmakers continued. “That means roughly a quarter of every bushel's value processed here in the U.S. is directly tied to biofuel demand. At a time when many farmers are struggling to break even, all federal biofuels policies should prioritize domestic agriculture and biofuel production, not foreign fuels made from foreign feedstocks. Additionally, while farmers face the uncertainty of foreign market demand, the Import RIN reduction would provide essential support for the farm economy so farmers could sell more products domestically.
“The EPA's own analysis highlights the positive impact of the Import RIN proposal: it will create jobs and generate economic growth in farming, transportation, and manufacturing, particularly in rural communities where oilseed processing facilities are located,” they continued. “This is exactly the outcome Congress intended when it created and expanded the Renewable Fuel Standard.
“The Import RIN reduction also aligns with Congressional intent under the 45Z Clean Fuel Production Credit, which prioritizes domestic feedstocks,” the lawmakers added. “Aligning EPA's policy with this standard helps level the playing field for domestic feedstock and biofuel producers with imported feedstocks, such as Brazilian tallow and so called “used cooking oil” from China, which would otherwise directly undercut U.S. energy, agriculture, and manufacturing.”
A comment period on the proposed “Set 2” closed Aug. 8. The EPA in mid-September issued a supplemental notice of proposed rulemaking (SNPRM) that considers several options for reallocating RFS RVOs under the small refinery exemption (SRE) program. A comment period on the SNPRM is scheduled to close Oct. 31. The EPA was expected to issue a final “Set 2” rule shortly thereafter. However, the partial government shutdown that began Oct. 1 may impact the timeline for the rulemaking, as nearly 90% of EPA staff are currently furloughed.
In addition to Grassley, the Sept. 30 letter is signed by Sens. Joni Ernst, R-Iowa; Amy Klobuchar, D-Minn.; Roger Marshall, R-Kan.; Elissa Slotkin, D-Mich.; Deb Fischer, R-Neb.; Todd Young, R-Ind.; Tina Smith, D-Minn.; Dick Durbin, D-Ill.; Pete Ricketts, R-Neb.; Michael Rounds, R-S.D.; Jerry Moran, R-Kan.; and Tammy Baldwin, D-Wis.
The letter was also signed by Reps. Reps. Mariannette Miller-Meeks, R-Iowa; Ashley Hinson, R-Iowa; Zach Nunn, R-Iowa; Randy Feenstra, R-Iowa; Angie Craig, D-Minn.; Sharice Davids, D-Kan.; Dusty Johnson, R-S.D.; Derek Schmidt, R-Kan.; Brad Finstad, R-Minn.; Nikki Budzinski, D-Ill.; Ann Wagner, R-Mo.; Don Bacon, R-Neb.; Tracey Mann, R-Kan.; Emanuel Cleaver, D-Mo.; Max Miller, R-Ohio; James Baird, R-Ind.; Michelle Fischbach, R-Minn.; James Comer, R-Ky.; Mike Bost, R-Ill.; David Kustoff, R-Tenn.; John Rose, R-Tenn.; Erin Houchin, R-Ind.; Mark Messmer, R-Ind.; Ron Estes, R-Kan.; Derrick Van Orden, R-Wis.; Mark Alford, R-Mo.; Kristen McDonald Rivet, D-Mich.; Darin LaHood, R-Ill.; Mike Flood, R-Neb.; Rudy Yakym, R-Ind.; Eric Sorensen, D-Ill.; Trent Kelly, R-Miss.; Carol Miller, R-W.Va.; and Adrian Smith, R-Neb.
A full copy of the letter is available on Grassley’s website.
