American Ethanol Summer 2017 - Page 21

Initial Reaction: What’s the latest on the future of RFS and RVP? Q: There seems to be confusion in the media and marketplace regarding what will happen with the Renewable Fuel Standard (RFS) in 2022. Where is this confusion originating? A: Last May, a specific oil company was telling Capitol Hill lawmakers there was too much uncertainty in the policy, and they should be concerned about post-2022—ethanol production could disappear. This is simply a scare tactic, attempting to force negotiations to reform the RFS now. Q: What is really going to happen with the RFS in 2022? A: When Congress passed the RFS in 2007, it laid out a series of annual production targets for various biofuels. Those annual targets extend only through 2022, but that does not mean According to the EPA, by 2022 the Renewable Fuel Standard will reduce carbon pollution by 138 metric tons. the RFS expires. Instead, the responsibility for maintaining the RFS and setting production targets passes from Congress to the U.S. Environmental Protection Agency (EPA). Q: What criteria will the EPA use to set those targets? A: There are six basic criteria the EPA must consider, by law: 1) environmental impact, 2) energy security, 3) anticipated renewable fuel production levels, 4) fueling infrastructure capacity, 5) cost of fuel, and 6) rural economic development. Q: Is it likely the RFS will cease to exist in 2022? A: Believing that the EPA will dramatically cut or eliminate the conventional portion of the RFS ignores political and economic reality. When you (continued next page) Growth Energy CEO Emily Skor; Brooke Coleman, Advanced Biofuels Business Council (ABBC); and Mike Lorenz, Sheetz, at the legislative hearing on S. 517, the Consumer and Fuel Retailer Choice Act. SUMMER 2017 21