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Proposed retroactive RVO cuts deeply disappointing to MN farmers

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Today, after months of speculation, the U.S. Environmental Protection Agency (EPA) finally announced plans to reduce the 2020 Renewable Volume Obligation (RVO) from the statutorily outlined — and previously finalized — 15 billion gallons to 12.5 billion gallons for corn ethanol. It’s the first time the EPA has proposed a retroactive cut to RVOs under the Renewable Fuel Standard (RFS), which has helped tens of millions of U.S. consumers access lower-carbon, lower-cost biofuels.

Also today, the EPA proposed setting conventional biofuels volumes for 2021 RVOs at 13.3 billion gallons and 2022 RVOs at 15.25 billion gallons.

The Minnesota Corn Growers Association (MCGA) is pleased to see RVOs maintained at statutorily outlined levels for 2022, but deeply disappointed by the proposed cut to 2020 RVOs. The proposed cuts will hamper the Biden administration’s own climate goals and advance the interests of the oil industry at the expense of farmers and rural communities. This decision also flies in the face of the commitment President Biden made as a presidential candidate to uphold the RFS.

Ethanol is a higher-octane, lower-cost fuel that reduces harmful greenhouse gas emissions by nearly half compared to regular gasoline and provides significant economic benefits in our rural communities. Any proposal to cut RVOs will only serve to protect market share for petroleum refiners and Big Oil allies and reduce access to this cleaner-burning fuel.

“For an administration that claims to be forward thinking on climate policy, this proposal to turn their back on a right-here, right-now climate solution is regrettable,” MCGA President Bryan Biegler said. “We urge the administration to reconsider the proposal and stand up for clean air, the nation’s family farms and rural economies.”

The administration today also announced $700 million in USDA grants. These funds were authorized by Congress in December 2020, and MCGA appreciates that the assistance will finally be available to biofuel producers. USDA also announced $100 million of Commodity Credit Corporation funds for another round of higher-blend biofuel-infrastructure grants. While the funds will be helpful to biofuel producers and expand availability of higher ethanol blends, they do not fully offset the damage caused by the proposed RVO cuts.

MCGA will be closely monitoring the rulemaking process before the RVO is finalized and will continue to work with our congressional champions on policies that support farmers, rural economies and the environment. MCGA thanks Minnesota Sens. Amy Klobuchar and Tina Smith and Reps. Angie Craig, Tom Emmer, Michelle Fischbach and Jim Hagedorn for urging the administration to uphold a strong RFS.

Stay connected to the latest ethanol and agriculture policy updates out of St. Paul and Washington, D.C., by visiting mncorn.org.

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