Last week just before Thanksgiving, the Environmental Protection Agency announced the renewable fuels standards for 2017. The increase in the renewable fuels standard was larger than what the EPA had indicated earlier, and larger than the corn and bean market anticipated. The big winner was beans because a lot more bean oil will be used for biodiesel. The result was a big rally in beans.

There was a lot of concern about the EPA rolling back the renewable fuel requirement. Last summer it looked like that was what was going to happen. I remember calling Randy Doyle, the manager of the AL-Corn Clean Fuel ethanol plant at Claremont. I did not understand how the EPA could roll back the renewable fuel standard or requirement.

The renewable fuel standard was passed by the United States Senate, House of Representatives and signed by the president. How can the EPA then say the renewable fuel standard should be lower than the law required? Randy said the EPA did not have the authority to lower the standard or requirement. If they did, the Renewable Fuels Association will challenge them in court.

By the way, Randy is also the president of the Renewable Fuels Association. He is a great contact because he knows policy in Washington, D.C., and how ethanol is made. This was all a lot of controversy about nothing. The requirements are right in line with what the law requires! Then again, maybe the EPA was concerned about being sued in federal court for not following the law.

More From KDHL Radio