Ag Policy Blog
Todd Neeley DTN Staff Reporter

Tuesday 07/08/14

McCarthy Hint on Direction of RFS?

EPA Administrator Gina McCarthy reiterated her previous statements that the Renewable Fuel Standard 2014 volumes would be released "soon," during a conference call with reporters Tuesday. But this time she may have provided a hint about where EPA is going with the law.

"It has become very clear to me that there's some general concern about volumes and adjustment to volumes," she said. "We're just taking the time we need to make sure the Renewable Fuel Standard takes that into account. It has taken awhile longer. I think they'll (ag, ethanol) be pleased that we're taking the time to get it right."

Earlier this year media reports suggested EPA was leaning toward backing off its initial proposed RFS cuts, after an outpouring of support for the law from rural America during a public comment period last year.

EPA has a history of delay when it comes to the release of biofuels volumes in the RFS, and the much-anticipated release of the 2014 numbers is no different.

The agency had indicated the release could come as soon as the end of June, but that deadline has come and gone, leaving open to a variety of interpretations as to what this delay could mean for the agriculture and ethanol industries.

Perhaps the first impression may be that EPA realizes from public comments issued in the months following the release of the law that proposed across-the-board cuts to biofuels volumes including corn-based ethanol, that maybe the agency overstepped with its proposal and realizes industries such as corn ethanol and biodiesel will have no problem at all in meeting the needed production this year.

We've already heard the biodiesel industry, for example, should easily eclipse the 2-billion-gallon mark this year -- far beyond EPA's proposal for 1.39 billion gallons to come from biomass-based diesel, or biodiesel.

What's more, last week EPA announced the release of a final rule approving additional biofuels pathways in the RFS. That approval includes the use of corn fiber as a cellulosic-ethanol pathway.

That announcement coincided with an announcement by Quad County Corn Processors in Galva, Iowa, that it had commercially produced the first gallons of cellulosic ethanol using corn fiber.

Thus far actual commercial cellulosic ethanol production has not met the demands of the RFS, as the industry has fallen far short of production targets for years.

Follow me on Twitter @toddneeleyDTN.

Posted at 10:20AM CDT 07/08/14 by Todd Neeley
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
August  2014
S M T W T F S
               1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31                  
Subscribe to Ag Policy Blog RSS
Recent Blog Posts
  • USDA Releases Greenhouse Gas Report
  • USDA Says SCO Insurance is Ready for 2015 Crops
  • U.S. Sugar Growers Make Case Against Mexican Imports
  • CoBank to Lead New Rural Investment Fund
  • USDA Names Research Foundation Board Members
  • Life is a Highway Full of Bumps and Detours
  • AFBF not Impressed by EPA Reaction to Ag Concerns
  • Bumper Crop 2014 Crop Would Put ARC in Spotlight
  • House Continues to Wrestle with Waters of the United States
  • White House Opposes Bonus Depreciation Bill
  • Amendments Blocked on Sportsmen's Bill
  • McCarthy Hint on Direction of RFS?
  • EPA Chief Headed to Show-Me State
  • Nebraskans Question FSA Livestock Disaster Payment Formula
  • Finding My Kicks on Route 66
  • Ag Leaders Question Next Steps on Immigration Reform
  • Business Groups Want Quick Action on COOL
  • Conservation Agriculture: Moon Shot or Forced Change is Coming
  • Talks Continue Over Brazilian Cotton Payments
  • Rupert Murdoch: Congress Should Act on Immigration Reform