Articles
February 14, 2023
Association concerned with increased biofuel volumes in Renewable Fuel Standard proposal
Changes would pose challenges to product availability, increase costs.
As the Environmental Protection Agency conducts a review of the Renewable Fuel Standard (RFS) program, the Association expressed concern with the agency’s proposed changes to increase biofuel volumes and the ramifications that would have on the overall food supply chain, restaurants, and consumers.
Established as part of the Energy Policy Act of 2005, the RFS is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels.
Designed to reduce greenhouse gas emissions and reduce the country’s dependence on imported oil, the RFS has actually created a seismic shift and volatility in the agriculture marketplace, where the usage of corn crops for fuel production rather than the food supply has triggered higher prices. According to the U.S. Department of Agriculture’s Economic Research Service, approximately 40% of annual corn production is now used to make biofuels.
Demand for renewable biofuels dramatically increased since the RFS was implemented, and the Association warns that even more demand would only further impact the availability and price of vegetable oils for the food industry.
Data from the International Energy Agency show that the use of vegetable oil for biofuel production is expected to increase 46% in the coming years.
While the proposed increase to biofuel volumes is alarming, the Association notes that the RFS’ eRIN framework, which allows projects to generate renewable electricity for electric vehicles, and measures to help increase food waste recycling, would be welcomed by the restaurant industry.
The EPA will review stakeholder comments before it issues a final rule. Contact Association Director of Food and Sustainability Policy Laura Abshire for more information.
Established as part of the Energy Policy Act of 2005, the RFS is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels.
Designed to reduce greenhouse gas emissions and reduce the country’s dependence on imported oil, the RFS has actually created a seismic shift and volatility in the agriculture marketplace, where the usage of corn crops for fuel production rather than the food supply has triggered higher prices. According to the U.S. Department of Agriculture’s Economic Research Service, approximately 40% of annual corn production is now used to make biofuels.
Demand for renewable biofuels dramatically increased since the RFS was implemented, and the Association warns that even more demand would only further impact the availability and price of vegetable oils for the food industry.
Data from the International Energy Agency show that the use of vegetable oil for biofuel production is expected to increase 46% in the coming years.
While the proposed increase to biofuel volumes is alarming, the Association notes that the RFS’ eRIN framework, which allows projects to generate renewable electricity for electric vehicles, and measures to help increase food waste recycling, would be welcomed by the restaurant industry.
The EPA will review stakeholder comments before it issues a final rule. Contact Association Director of Food and Sustainability Policy Laura Abshire for more information.