2022 Renewable Fuel Volume Rule Will Lower Fuel Prices and Reduce Greenhouse Gas Emissions

June 3, 2022

2022 Renewable Fuel Volume Rule Will Lower Fuel Prices and Reduce Greenhouse Gas Emissions

Jun 3, 2022

Key Issues:Ethanol

Author: Bryan Goodman

The final 2022 renewable fuel volumes released today by the U.S. Environmental Protection Agency will support access to higher blends of ethanol, saving consumers money at the pump and cutting greenhouse gas emissions.

 

For 2022, the final Renewable Fuel Standard (RFS) volume of 20.63 billion gallons includes an implied 15 billion gallons of ethanol, following the law. EPA also added a supplemental 250 million gallon requirement for 2022, responding to a 2017 Court decision finding EPA improperly waived past volumes. EPA finalized the delayed 2021 volume at 18.85 billion gallons, including an implied 13.79 billion gallons for ethanol, tracking retroactive renewable fuel consumption for the year.

 

In a separate action, EPA finalized denial of 69 pending RFS exemption petitions. Closing the books on RFS exemptions helps restore much-needed integrity to the forward-looking volumes set today.

 

“More ethanol in the fuel supply saves Americans money at the pump and lowers greenhouse gas emissions,” said National Corn Growers Association President Chris Edgington. “Higher renewable fuel volumes for this year, which will increase and diversify our fuel supply, come at a crucial time as policymakers are working to lower fuel prices.”

 

Ethanol is priced $1.42 less per gallon than unblended gasoline at wholesale today, and drivers currently save up to 20 cents or more per gallon where E15 is available. Ethanol reduces GHG emissions by 50% compared to gasoline and replaces the most toxic gasoline components to cut air pollution.

 

“When President Biden visited an Iowa ethanol production facility in April, he said ethanol reduces our reliance on foreign oil, creates choice and competition at the pump for better prices, creates good-paying jobs and reduces greenhouse gas emissions,” said Edgington. “Farmers agree, and the increased RFS volumes for 2022 and denial of pending refinery exemptions will advance these objectives and move renewable fuels forward.”

 

While Edgington praised EPA for the strong forward-looking 2022 renewable fuel volumes, he expressed disappointment the agency made an unnecessary retroactive reduction of 2020 RFS volumes. The RFS already self-adjusts for declining fuel use, such as occurred in 2020, and this further reduction rewards the use of more oil at the expense of the environment.

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