RENEWABLE FUEL STANDARD

 

Mr. President, Don’t Cap Our Future

 

President Trump is on the verge of changes to the Renewable Fuel Standard that would devastate American family farmers and nearly 360,000 industry jobs.  The National Corn Growers Association is asking farmers to make your voice heard NOW

The President, USDA and the EPA need to understand the economic challenges that farmers are facing today.

 

Corn farmers have fought hard the past ten years, within Congress, with the last Administration, and in the Courts to protect the opportunity for renewable fuels to continue to grow as an option for consumers. For farmers, ethanol blending equates to corn demand.  Blending more homegrown biofuels like ethanol into gasoline lowers the cost of clean-burning fuel and benefits everyone. The proposal from the oil industry, being considered by the President, could cut farm income almost $4 billion dollars per year for the next two years.  It is a deal that American farmers cannot afford.  

 

“Farmers care deeply about the future of ethanol because of its immediate impact on corn prices so we are asking the President not to cap future growth and opportunity in rural America and add to the list of 12,000 farmers who went out of business last year,” NCGA president Kevin Skunes said.

 

The proposed changes would reduce ethanol demand by more than 750 million gallons and cost corn farmers as much as 25-cents/bushel.  There is ample evidence from recent analysis from Iowa State, University of Illinois and Purdue University that back up NCGA’s concerns.

 

“We understand the President is committed to protecting jobs—so are we.  We need the President to understand that this commitment needs to extend to rural America—to our farms, biofuels plants, and the manufacturing and processing jobs that depend upon American agriculture,” Skunes said.

 

 

Purdue University

http://www.ethanolrfa.org/wp-content/uploads/2018/03/Impacts-of-Options-for-Modifying-the-RFS_Purdue_2018-03.pdf

 

Iowa State University – Center for Agricultural and Rural Development

https://www.card.iastate.edu/products/publications/pdf/18pb21.pdf

 

University of Illinois

http://farmdocdaily.illinois.edu/2018/02/the-grand-bargain-trading-an-e15-rvp-waiver.html

 

 

The Renewable Fuel Standard:

 

  • Has spurred economic growth for farmers and rural communities

 

  • Provides a dependable structure that assists in stabilizing markets and promoting new technological advancements in the biofuels industry

 

  • Is NOT a “mandate.”                                                      
    • The standards set by the EPA simply allows more American-made products to be part of America’s fuel supply.
    • We should be strengthening our commitment to renewable fuels, not backing down.

 

 

RFS Overview

For more than 20 years, the National Corn Growers has worked side by side with farmers, industry, and government to build the ethanol industry from the ground up. Corn farmers across the country and the ethanol industry have helped America move one step closer to energy independence.  Our industry is also a major force in the revitalization of rural America by helping create green jobs and stimulating economic activity in rural communities. 

 

Corn farmers and the ethanol industry play a significant role in promoting both energy independence and a stable, prosperous U. S. economy.  All this has been possible due in large part to the passage of the Renewable Fuel Standard (RFS) in 2005 and expansion in 2007.  The RFS has been a remarkable success and has helped to promote cleaner, greener fuels while also helping America become more energy independent.  We must protect the integrity of the RFS.

 

How it works

The Environmental Protection Agency (EPA) is responsible for issuing annual regulations to ensure fuel sold in the U.S. contains the correct volume of renewable fuel. Also, the EPA is obligated to set the annual renewable volume obligation (RVO) for the upcoming year by November 30.  After three years of regulatory uncertainty, NCGA was pleased EPA set the 2017 RVO at the 15 billion gallons for conventional ethanol, in line with the statute set by Congress.  As EPA continues work on the 2018 RVO, sending your comments will help ensure EPA issues a strong final RVO.

 

 

Other Resources

Download NCGA’s RFS Issue Brief

Read the Austin Dillon Op-Ed on the RFS