Ohio Soybean Association Disappointed In EPA’s Undercutting of Soy Diesel
June 22, 2023 Ohio Soybean Association
The Ohio Soybean Association (OSA) is disappointed by U.S. Environmental Protection Agency’s (EPA) final Renewable Volume Obligations (RVOs) for 2023, 2024, and 2025. RVOs set annual biofuel blending targets under the Renewable Fuel Standard. OSA does not believe the rule accurately reflects the growth expected in the soy-based diesel industry and falls far below the industry’s current production.
The 2023 finalized rule made zero increases to the 2023 volumes compared to the draft rule. For 2024 and 2025, EPA made modest increases compared to the draft rule.
“While we appreciate the modest increase the EPA made to the RVOs, these numbers don’t reflect the expected growth of the biofuels industry and soy growers were not prioritized,” said Patrick Knouff, Shelby County soybean farmer and OSA president.
Near where Knouff farms, the soybean crush plant in Sidney currently has plans to double their crush capacity, indicating that the soybean oil market is poised to support further growth of the biofuels market. OSA worked alongside the American Soybean Association to encourage EPA and the administration to raise volumes to a level that will continue to support growth of the biofuels industry. According to Clean Fuels Alliance America, biodiesel accounts for 13 percent of the bushel price of soybeans, making it a vital domestic market for soybean oil.
EPA’s 2022 volume target included the highest-ever number for total renewable fuels and specifically for biomass-based diesel since the renewable fuel standard was created, which makes this rule, which essentially means stagnation for future RVOs, particularly disappointing.