SIOUX FALLS, S.D. (Dakota News Now) – On Friday, Governor Larry Rhoden and three other governors sent a letter to the Environmental Protection Agency asking for it to encourage more renewable fuel production.

The state leaders are looking for standards of 15 billion gallons for conventional ethanol and 5.25 billion gallons for biomass-based diesel.

That’s the Renewable Volume Obligation Level and for ethanol, it’s around the same as before but for diesel that’s a 57% increase and this push for renewable energy sources is good not just for producers but consumers as well.

If the EPA adopts the proposed Renewable Volume Obligation Levels, South Dakota as an ethanol producer will get to continue and produce a lot of ethanol and get credits in return, the state produces around 1.2 billion gallons of ethanol every year.

However, these Obligation Levels have been stagnant over the last three years, and one Renewable energy advocate said that’s been a problem.

“If you don’t have growth in the Renewable Volume Obligation, you’re not going to see growth within the Renewable Fuel Industry, so in South Dakota you may not see an ethanol plant expand,” Troy Bredenkamp, the Renewable Fuels Association Senior Vice President for Public Affairs said.

Bredenkamp said right now producers are comfortable with the standard set for ethanol but expect to see growth in future years as it’s going help save families some money.

“It’s certainly beneficial to the consumer to see higher blends of ethanol and other renewable fuels because that typically and almost always in ethanol’s case leads to lower prices at the pump,” Brendenkamp said.

In a statement, Governor Rhoden said these higher volumes will give biofuel producers and American farmers the confidence to invest, grow, and sustain their operations.

The Biden Administration was supposed to set the Renewable Fuel Standard for 2026 last October, however that was pushed back.

There is no indication as to when the EPA will have the levels set.

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