The EPA made an announcement last week that left the corn and biofuel industry feeling mixed.
Jim Zook, executive director of the Michigan Corn Growers Association, says there were two welcome announcements and one disappointing one.
“The EPA denied the 65 pending applications for the small refinery exemptions,” he says. “To us, that was huge to actually stick with what the RFS was put into place for and the laws around it. That’s huge, and hopefully that’ll set precedent so that in the future we won’t have to deal with these small refinery exemptions into the future.”
The other bit of good news was a proposed rule for volumes for 2022.
“This is the first time since the RFS has been in place we actually have what the future values should be, not looking back into the past,” says Zook.
Zook says the downside is that the gallons that were remanded in 2014 and 2016 are being spread out over time.
“For the most part, the RFS is doing what the RFS was intended—having them comply with what the law is, that’s extremely helpful,” he says.
For Michigan’s corn growers and ethanol plants, Zook says this announcement provides surety into the future.
“It really provides that yes, we are going to have some volume obligations that are out there that will utilize what we actually produce here in the state, so it’s going to be a positive,” says Zook. “It’s something where our plants can now plan for the future.”
For Zook’s full comments, listen to the December 13, 2021 edition of the Michigan Ag Today Podcast in the player below.
