Stronger RFS volumes needed, CFAA says

Clean Fuels Alliance America says the U.S. EPA needs to increase future biodiesel volumes under the Renewable Fuel Standard.

Kurt Kovarik, vice president of federal affairs, says the finalized RVOs through 2025 provided only moderate increases. “In accordance with the statute, EPA should be working on the next RVO to finalize it this fall 2024 for the year of 2026,” he said. “I don’t think they’re going to do that. We’ve got a presidential election year and I don’t think they’re going to go through the trouble of potentially creating enemies in this space.”

Chevron Renewable Energy Group recently announced a shutdown of two of its Midwestern-based biodiesel plants indefinitely, citing poor market conditions resulting from weak biodiesel volumes under the RFS.

Kovarik tells Brownfield the industry warned EPA about possible plant closures when its set RVOs below the industry’s overall capacity. “The impact that it’s having on the industry is real,” he said, “it’s tangible and unfortunately it appears as though these two plants that were announced that they’re going to be idled is a direct result of that action.”

Kovarik says domestic production and use of advanced biomass-based diesel increased one billion gallons year-over-year in 2023.

AUDIO: Kurt Kovarik – Clean Fuels Alliance America

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