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Farm groups await Trump solution for RFS waivers
Farm groups are anxiously awaiting details on President Trump’s plan to repair damage caused by RFS waivers.
Minnesota Farm Bureau president Kevin Paap tells Brownfield the lost gallons must be accounted for.
“We built plants based on a 15 billion-gallon Renewable Fuel Standard, we invested that way. And we have to see those gallons that were waived by small refineries reallocated to make sure that 15 billion-gallons is the number.”
Last week President Trump reportedly met with oil-state senators as he attempts to strike a balance between oil and biofuel interests.
There’s speculation an announcement could happen soon, but so far there’s been no official word from the White House.
President Trump’s EPA has continually worked to weaken the Renewable Fuel Standard because of its impact on the Oil Industry.
The Renewable Fuels Standard was Implemented by Congress to increase Biofuel use in a closed, Oil Industry-Controlled Fuel Market. Congress set up a program that would work well, if properly followed to increase Biofuel use, reducing air pollution, reducing foreign oil imports, diversifying fuel sources and supporting the Farm Economy.
Over the last three years EPA has granted Refiners Waivers to NOT Comply with the Renewable Fuels Standard, reducing Biofuel Blending Obligations by approximately 4.3 Billion Gallons of Biofuel. This reduction amounts to a 10% reduction from what Biofuel Blending would have been under a properly enforced Renewable Fuel Standard. If the 4.3 Billion Gallons would have been blended as required under the RFS, refinery supplied fuel demand would have been reduced by less than 1%.
So, there you have it. EPA cheated the Biofuels Industry out of a 10% increase in sales, over the last three years, to keep the Oil Industry from loosing less than 1% of their fuel sales.
If you feel Cheated, you should. This year to date, the ethanol blend rate has been averaging 9.89%, had the Refinery Waivers been Reallocated as required in the RFS, the current Ethanol Blend rate would be closer to 10.96%. Peanuts to the Billion Dollar Refining Industry, but huge to the much smaller and struggling Biofuels Industry.
President Trump, when are you going to follow the Renewable Fuels Standard as Intended by Congress and stop cheating the farm economy out of its rightful RFS Mandated Biofuel Demand?
Refinery Waivers Must be Reallocated back to the Billion Dollar Refining Industry to keep the RFS working as intended by Congress.