Last week, AEM filed comments with the Environmental Protection Agency (EPA) urging them to support American agricultural equipment manufacturing jobs by reallocating Renewable Fuel Standard gallons lost through small refinery exemptions (SREs).   

The current EPA proposal would base the number of reallocated gallons on Department of Energy (DOE) recommendations, not actual gallons waived. As the letter states, “Basing the three-year average of waived gallons on Department of Energy (DOE) recommendations is an illogical approach that hurts our nation’s farmers. Using the DOE recommendations results in 770 million gallons of reallocated biofuels. However, this is far short of the 1.36 billion three-year average when based on actual gallons lost – a difference of 590 million gallons.”

Failure to reallocate real gallons lost would reduce corn demand in 2020 by 210 million bushels.

“The current EPA proposal on gallon reallocation will hurt both farmers and equipment manufacturers,” said AEM President Dennis Slater. “A modified proposal to properly reallocate gallons keeps the Administration’s promise to our industries, and it also supports an environmentally friendly solution that strengthens our energy independence. Additionally, increased ethanol sales will benefit farmers, equipment manufacturers, and the greater U.S. economy. We encourage the EPA to base reallocated gallons on the real numbers, instead of a short-sighted, bureaucratic recommendation.”

With commodity prices already low and the link between farm income and equipment sales well established, AEM strongly encourages the EPA to address our concerns.

For more information on the EPA’s reallocation process, contact AEM’s Nick Tindall at ntindall@aem.org.

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