AFBF Encouraged by Progress on Renewable Fuel Standard
Chad Smith
Associate News Service Editor, NAFB
Faith Parum, Ph.D.
Deputy Chief Economist
photo credit: AFBF
Chad Smith
Associate News Service Editor, NAFB
Faith Parum, Ph.D.
Deputy Chief Economist
The Environmental Protection Agency announced a draft rule to reallocate 100% of renewable fuel volumes lost through small refinery exemptions. Chad Smith tells us it’s an important next step in supporting the farm economy.
Smith: The EPA proposed a rule would provide 100% reallocation of the renewable fuel volume requirements that were recently waived for 29 small refineries. Faith Parum, deputy chief economist for the American Farm Bureau Federation, said the reallocation of the waived volume requirements is good news for U.S. agriculture.
Parum: So earlier they said that they would reallocate 100% of the small refinery exemptions, which we're really thankful for. And this announcement just gives us a little bit more detail about when those reallocations will come into play, and announces a comment period for industry to weigh in.
Smith: She said small refinery exemptions take renewable fuel volumes out of the U.S. market.
Parum: These reallocations make sure that these renewable fuel volumes get made, and they're made with North American feedstocks. So, think about your corn and your soybean oil, and so that's really great for American farmers and ranchers because it keeps that renewable fuel in production and ups those feedstock requirements.
Smith: This is a big benefit for the U.S. agricultural economy.
Parum: This is great for the farm economy because it keeps demand for our feedstock strong. So, our corn, our soybean, canola-all of that is used for these renewable fuels. And by making sure that these volumes are reallocated, it'll make sure that demand is steady for U.S. farmers and ranchers.
Smith: Chad Smith, Washington.
