AEM President Dennis Slater issued the following statement regarding proposed Renewable Volume Obligations (RVOs) for 2018:
The equipment manufacturing industry is encouraged that the proposed Renewable Volume Obligations (RVOs) for 2018 maintain existing requirements for conventional biofuels. Those targets are worth maintaining -- and expanding -- as the administration works to finalize its rules for 2018.
The Renewable Fuel Standard is important for equipment manufacturers because it helps to promote American energy independence, and the security and future prosperity of America's farm economy. Those are priorities shared by U.S. manufacturers of farm equipment, who in turn support some 320,000 jobs across the United States.
Just two weeks ago, President Trump spoke in Iowa of his administration’s work to "protect our nation’s proud farming legacy, including ethanol." If President Trump truly wants to protect America's farmers, manufacturers, and ethanol producers, his administration should set final RVOs at levels that will continue to advance a strong domestic market for producers of biofuels.
Congress created the Renewable Fuel Standard (RFS) program in 2005 in an effort to help reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil.
The standard requires refiners to blend higher percentages of a variety of biofuels into the nation's gasoline and diesel supplies through 2022. Although the Renewable Fuel Standard requires different forms of biofuels to be blended, the vast majority of renewable fuels in the nation's fuel supply currently come from corn ethanol.
The EPA, which puts out Renewable Fuel Standard blending requirements on annual basis, will keep the standard the same for 2018 as it was for the 2017 requirement of 15 billion gallons of conventional biofuels met primarily by using corn ethanol.