Clean Fuels Alliance urges EPA to reallocate waived RFS volumes or lose billions for soy industry – Brownfield Ag News

 

Report on EPA’s Renewable Fuel Standard and its Alignment with Sustainable Development Goals

Executive Summary

• Clean Fuels Alliance America has issued a call to the U.S. Environmental Protection Agency (EPA) to reallocate waived volumes under the Renewable Fuel Standard (RFS).
• This action is presented as a critical domestic policy decision that directly supports multiple Sustainable Development Goals (SDGs), including those related to clean energy, economic growth, and climate action, without reliance on international trade negotiations.
• Failure to reallocate volumes waived through small refinery exemptions could result in significant economic losses for the U.S. soy industry, undermining progress toward SDG 8 (Decent Work and Economic Growth).

Economic Implications and Contribution to SDG 8 (Decent Work and Economic Growth)

The EPA’s policy on RFS volumes has a direct and substantial impact on the economic viability of the U.S. agricultural sector, a key component of achieving SDG 8.

• Economic Risk: An analysis by World Agricultural Economic and Environmental Services projects that U.S. soybean farmers and processors face potential losses of up to $7.5 billion in crop value over the next two years if the EPA does not reallocate the exempted volumes.
• Support for Rural Livelihoods: The production of U.S. biodiesel and renewable diesel currently supports 10 percent of the value of every bushel of soybeans, highlighting the industry’s role in promoting sustained and inclusive economic growth in rural communities.
• Domestic Market Stability: Kurt Kovarik, Vice President of Federal Affairs for the Alliance, emphasized that strengthening the domestic biofuels market is a direct action the administration can take to support farmers, aligning with targets for productive employment and decent work for all.

Advancing SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action)

The RFS is a primary policy driver for increasing the share of renewable energy in the U.S. transportation sector, contributing directly to SDG 7 and SDG 13.

• Renewable Energy Share: By setting robust RFS volumes and reallocating waived gallons, the EPA can send a strong positive signal to the market, encouraging investment and production in biomass-based diesel and advancing SDG 7.3 (doubling the rate of improvement in energy efficiency).
• Climate Mitigation: The utilization of biofuels is a key strategy for reducing greenhouse gas emissions from the transport sector. The EPA’s decision on reallocation is therefore a critical lever for climate action, impacting the nation’s capacity to meet its climate goals under SDG 13.
• Sustainable Industry: The policy supports the infrastructure for a homegrown, sustainable industry, which is foundational to achieving SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production).

Policy Recommendations and Linkage to SDG 17 (Partnerships for the Goals)

The ongoing dialogue between industry stakeholders and government agencies exemplifies the multi-stakeholder partnerships essential for achieving the SDGs (SDG 17). The Alliance’s recommendations are as follows:

1. The EPA must fully reallocate the volumes waived through small refinery exemptions into the forthcoming 2026–2027 RFS volume obligations.
2. The administration should leverage the RFS as a domestic tool to accelerate the transition to clean fuels, thereby supporting national economic and environmental objectives.
3. Stakeholders are encouraged to participate in the public comment period, open until October 31, to ensure policy is developed through an inclusive and participatory process.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy
2. SDG 8: Decent Work and Economic Growth
3. SDG 12: Responsible Consumption and Production
4. SDG 13: Climate Action
5. SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 7: Affordable and Clean Energy

• Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
  
  Explanation: The article focuses on the production and use of “biodiesel and renewable diesel,” which are forms of renewable energy derived from biomass (soybeans). The entire discussion revolves around the Renewable Fuel Standard (RFS), a policy designed to increase the volume of renewable fuels in the nation’s fuel supply, directly aligning with this target.

SDG 8: Decent Work and Economic Growth

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.
  
  Explanation: The article highlights the economic significance of the biofuels industry as a “homegrown domestic market.” It states that biodiesel production “supports 10 percent of the value of every bushel of soybeans,” representing a high-value-added sector for agriculture. The potential loss of “$7.5 billion in crop value” underscores the industry’s role in economic productivity and growth for farmers and processors.

SDG 12: Responsible Consumption and Production

• Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
  
  Explanation: The article discusses using soybeans, a natural and renewable resource, to produce “biomass-based diesel.” The RFS policy itself encourages a shift in production and consumption patterns away from finite fossil fuels toward renewable resources, which is central to this target.

SDG 13: Climate Action

• Target 13.2: Integrate climate change measures into national policies, strategies and planning.
  
  Explanation: The Renewable Fuel Standard (RFS), which the article focuses on, is a national policy implemented by a federal agency (the EPA). This policy is a direct example of integrating climate change measures into national planning, as biofuels are promoted to reduce greenhouse gas emissions compared to conventional fuels.

SDG 17: Partnerships for the Goals

• Target 17.14: Enhance policy coherence for sustainable development.
  
  Explanation: The article describes the Clean Fuels Alliance America, an industry group, urging the U.S. Environmental Protection Agency (EPA), a government body, to fully implement the RFS policy by reallocating waived volumes. This interaction demonstrates the effort to ensure that national policies are implemented coherently and effectively to achieve their intended sustainable development outcomes.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicators for SDG 7 (Target 7.2)

• Indicator: Volume of renewable fuels mandated and produced.
  
  Explanation: The article repeatedly mentions the “Renewable Fuel Standard volumes” and the need to “reallocate the waved gallons.” The specific volume of biodiesel and renewable diesel produced and blended into the national fuel supply is a direct measure of the share of renewable energy in the transportation sector.

Indicators for SDG 8 (Target 8.2)

• Indicator: Monetary value of the biofuel industry’s contribution to the agricultural sector.
  
  Explanation: The article provides specific financial figures that can be used as indicators. It states that U.S. soybean farmers could lose “$7.5 billion in crop value” and that biodiesel production “supports 10 percent of the value of every bushel of soybeans.” These figures directly measure the economic impact and value addition of the industry.

Indicators for SDG 12 (Target 12.2)

• Indicator: Amount of domestic biomass used for energy production.
  
  Explanation: While not giving a specific quantity, the article’s focus on “biomass-based diesel” from soybeans implies that the quantity of soybeans (a natural resource) processed into fuel is a key metric for measuring the use of natural resources for sustainable production.

Indicators for SDG 13 (Target 13.2)

• Indicator: Implementation status of national policies related to renewable energy.
  
  Explanation: The core issue of the article is the EPA’s decision on “how to reallocate waived gallons from small refinery exemptions in the 2026–2027 RFS volumes.” The EPA’s final ruling and the enforcement of these volumes serve as a direct indicator of the implementation and strength of a national climate-related policy.

Indicators for SDG 17 (Target 17.14)

• Indicator: Actions taken by government agencies in response to stakeholder engagement on sustainable development policies.
  
  Explanation: The article notes that the “EPA is accepting comments through October 31.” The process of public comment and the subsequent policy decision by the EPA on reallocating RFS volumes reflect the mechanism for ensuring policy coherence through multi-stakeholder partnerships. The final decision itself is an indicator of the effectiveness of this engagement.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

SDGs	Targets	Indicators
SDG 7: Affordable and Clean Energy	7.2: Increase substantially the share of renewable energy in the global energy mix.	The volume of “biodiesel and renewable diesel” produced under the “Renewable Fuel Standard volumes.”
SDG 8: Decent Work and Economic Growth	8.2: Achieve higher levels of economic productivity through diversification and high-value added sectors.	The economic value added to soybeans, specifically the “$7.5 billion in crop value” and the “10 percent of the value of every bushel of soybeans.”
SDG 12: Responsible Consumption and Production	12.2: Achieve the sustainable management and efficient use of natural resources.	The use of soybeans, a renewable natural resource, for the production of “biomass-based diesel.”
SDG 13: Climate Action	13.2: Integrate climate change measures into national policies, strategies and planning.	The implementation and enforcement of the Renewable Fuel Standard (RFS) by the EPA as a national climate policy.
SDG 17: Partnerships for the Goals	17.14: Enhance policy coherence for sustainable development.	The EPA’s policy decision on reallocating waived RFS volumes in response to engagement from industry stakeholders like the Clean Fuels Alliance.

Source: brownfieldagnews.com