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Correspondence Management System

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Number: AX-14-000-1577

Printing

Date: November 20, 2013 02:24:17

Citizen Information

Citizen/Originator: Kimberley, Grant

Organization: N/A

Address: 1255 SW Prairie Trail Parkway, Ankeny, IA 50023

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Control Number: AX-14-000-1577 Alternate Number: N/A

Status: For Your Information Closed Date: N/A

Due Date: N/A #of Extensions: 0

Letter Date: Nov 14, 2013 Received Date: Nov 18, 2013

Addressee: AD-Administrator

Addressee

Org: EPA

Contact Type: LTR (Letter) Priority Code: Normal

Signature: SNR-Signature Not Required Signature Date: N/A

File Code: 401_127_a General Correspondence Files Record copy

Subject: Daily Reading File - Please consider increasing conventional corn ethanol, biomass based

diesel and advanced biofuel categories of the Renewable Fuel Standard for 2014

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I Eliska Postell I OEX

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Date: Mon Nov 18 09:50:57 EST 2013

From: Leavy.Jacqueline@epamail.epa.gov

To: CMS.OEX@epamail.epa.gov

Subject: FW 2014 RFS-2 requirements: Please consider increasing conventional corn ethanol,

biomass based diesel and advanced biofuel categories o the RFS for 2014.

From: Grant Kimberley [mailto:GKimberley@iasoybeans.com]

Sent: Thursday, November 14, 2013 5:28 PM

To: Mccarthy, Gina

Subject: 2014 RFS-2 requirements: Please consider increasing conventional corn ethanol,

biomass based diesel and advanced biofuel categories o the RFS for 2014.

Ms. Gina McCarthy,

You had the opportunity to visit Iowa and my family farm with Senator Grassley a few years ago.

We appreciated the opportunity to host you at our farm and thank you for taking the time to come

to Iowa to learn more about agriculture and the biofuels industries and how they are important to

each other and the Midwest economies. Both agriculture and the biofuel industries are tied

together in so many ways for the benefit o the entire country. Farmers and biofuel producers

work hard to provide and produce essential products for the American consumer and economy

and play a big role in ensuring America s energy security, providing an economic engine for job

growth, rural economic development as well as being a net positive for the U.S. economy in

general.

I

am

very concerned with reports that the EPA is considering reducing and not allowing the

renewable fuel targets to increase as outlined in law and that your agency is actually even

considering a reduction

in

the targets to 13 billion gallons o corn ethanol and 1.28 billion gallons

o

biodiesel. Especially in light

o

the fact that in 2013 the ethanol and biodiesel industries

produced in excess o 13.8 and 1.7 billion gallons in 2013 and the fact that corn and soybean

prices have fallen in price by nearly half as compared to last year. USDA recently confirmed that

we will have record supplies o corn and soybeans this year and most likely for the foreseeable

future.

There really is no economic reason to hault or reduce the RFS targets in light o these facts. I also

believe that the so called blend wall could be easily breached

i

the oil industry knew they had to

move forward and offer E-15, E-85 and biodiesel blended fuels on a more widespread basis. The

infrastructure will be in place

i

the path forward is made more certain. The RFS is about offering

consumers choices, without it, the oil industry will not allow consumers any other choice but

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petroleum based fuels and nominal biofuel blends. If the targets are reduced the oil industry will

have no incentive to offer choices to consumers with higher blends o ethanol and biodiesel and

instead the oil industry will take that as a free pass and that will cut out the legs from underneath

any investment or innovation n future alternative energy sources or technologies and it will also

hurt farmers, small town jobs and rural economies that are tied to agriculture and biofuel

businesses.

Biodiesel is having a record year and will produce over 1.7 billion gallons this year and Ethanol s

having a very good production year as well producing in excess o 13.8 billion gallons, despite

being on the heels o a record drought. Both corn and soybean crop production is significantly

higher this year so feedstock availability s more than sufficient to sustain growth. But according to

a rumored draft proposal for next year s RFS volumes, the EPA

s

considering setting a

requirement o just 1.28 billion gallons for biodiesel and 13 billion gallons for corn ethanol next

year.

This would be a devastating blow

to

the ethanol and biodiesel industries, corn and soybean

farmers, livestock producers and rural communities. It would likely cause dozens o plants to shut

down, thousands o layoffs, farmers would go out o business and severely jeopardize any future

investment in the bio energy industry. It would hurt demand for corn and soybeans, lowering

prices for soybean and corn farmers and increasing the price o soybean meal and dried distiller

grains due to lower supply with reduced processing o soybeans and corn, consequently raising

feed costs for livestock producers. This would personally affect me and set back my opportunity to

join my family s farming operation

n

a time when it appears we would lose significant money

n

agriculture and see negative agriculture margins

i

reductions n the RFS occurred.

I understand the EPA proposal is being moved quickly through the Office o Management and

Budget, and farmers and biofuel supporters and rural communities urge the Administration to set a

volume requirement at least consistent with this year s projected production o 1.7 billion gallons o

biodiesel and 13.8/14 billion gallons o corn ethanol.

This is truly an urgent matter that has wide ranging energy security and economic impacts for

many people across the country. The RFS and reasonable increases each year o the Biofuel

targets have given consumers more choices in a market that would have otherwise been locked

out o due to the monopoly and legacy o the petroleum industry. All RFS biofuel targets should

be allowed to have continued increased growth as to place certainty into the marketplace and

incentive

to

the oil industry

to

bring the infrastructure up to date so consumers have choices. It is

truly critical to my livelihood and the success o my family farm business and all other related

agriculture and biofuel businesses that the RFS be allowed to move forward as outlined by law

based off o current production capacities. Thank you very much for your consideration and I

appreciate your support.

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