Final rule breaks through so-called blend wall
WASHINGTON, D.C. — Growth Energy and its members are pleased to see that the President and the Environmental Protection Agency have recognized the need to move the renewable fuel industry past the so-called blend wall for the sake of America’s climate, energy security and rural economy. While this rule still relies on a flawed methodology that sets renewable fuel volumes below the statutory levels enacted by Congress, it is an important improvement from the proposed rule, and moves us closer to getting America’s most effective climate policy back on track and providing certainty for biofuels in the marketplace.
Specifically, we are pleased that the RVOs have been finalized after such a long delay and that the levels have increased from the original proposal. This final rule makes it possible to drive the growth of higher ethanol blends through the so-called blend wall, giving consumers choices at the pump, such as low-cost E15. Additionally, the numbers for 2016 represent a final rule closer to the statutory levels established by Congress, avoid the “reset” and indicate a more certain future for renewable fuels.
However, we remain concerned that the final rule continues to rely on the “distribution waiver” that redefines supply as demand and was rejected by Congress when the RFS was enacted into law. Of particular concern is that by using such a waiver, the oil industry is being rewarded for its unwillingness to follow the law and invest in infrastructure to move toward cleaner, renewable fuel, which sets a dangerous precedent for the future of the program. The uncertainty this waiver will create risks sending investment in the next generation of renewable fuel overseas just as this new, homegrown industry is taking off.
We appreciate Administrator McCarthy’s stated commitment to return to statutory levels, and our industry is committed to working with her to ensure the final rule announced today is the first step toward fulfilling that commitment.