KANSAS CITY – In Kansas City yesterday, the Environmental Protection Agency (EPA) held a public hearing on its proposed RFS volumes for 2014, 2015 and 2016. More than 300 people on 42 panels testified, including the Governors of Iowa and Missouri, farmers, fuel marketers, oil producers and refiners, ethanol and bio diesel producers, and consumer groups.

In a predominately pro-ethanol crowd, EPA heard mostly from farmers and ethanol producers that its draft proposal did not go far enough to expand ethanol into the marketplace and that no changes were needed to the RFS program. On the other side, EPA heard from oil producers and refiners about their concerns that the volumes proposed for 2016 are too ambitious and should be under 10%. The current proposal increased the volumes by 11%.

NACS Director of Government Relations Paige Anderson testified on behalf of NACS and shared the convenience and fuel retailing industry’s perspective with EPA officials. “NACS generally supports the EPA draft proposal,” said Anderson. “We support EPA’s use of its waiver authority to bring the RFS volumes that Congress passed in 2007 more in line with the market realities of today.  Looking at supply beyond production and actually looking at what the market can absorb is critical.”

Anderson went on to say, “Our retailers’ sole objective is to sell what their customers want to buy. They want to be able to sell fuels lawfully, with minimal volatility and risk – especially with new fuels. The ‘build it and they will come’ philosophy does not apply or work in our industry.”

The public comment period ends on July 27, 2015. EPA hopes to finalize its rule by November. By law, they have to release the final volumes of RFS by November 30, 2015, for the 2016 volumes.