By Keith Reid

In an unusually timely manner, compared to recent history, EPA has released its Renewable Fuels Standard proposed annual percentage volumes for cellulosic biofuel, biomass-based diesel, advanced biofuel and total renewable fuel for 2017. In addition it released its proposed applicable volume of biomass based diesel for 2018.

In general, the proposals bump up the volumes compared to 2016, but do not require the much higher volumes that would have been in place under the initial mandate assumptions.  As the proposal summary notes:

In this action, we are proposing standards that are designed to achieve the Congressional intent of increasing renewable fuel use over time in order to reduce lifecycle GHG emissions of transportation fuels and increase energy security, while at the same time accounting for the real world challenges that have slowed progress toward such goals. Those challenges have made the volume targets established by Congress for 2017 beyond reach for all but the minimum 1.0 billion gallons for biomass-based diesel (BBD). We are proposing to use the waiver mechanisms provided by Congress to establish volume requirements that would be lower than the statutory targets for fuels other than biomass-based diesel, but set at a level that we believe would spur growth in renewable fuel use, consistent with Congressional intent. 

Specific volumes recommended:

  • Total renewable fuel increases from 18.1 billion gallons to 18.8 billion gallons. The Clean Air Act had called for 24 billion gallons.
  • Advanced biofuel increases from 3.6 billion gallons to 4 billion gallons. The Clean Air Act had called for 9 billion gallons.
  • Biomass based diesel increased from 1.9 billion gallons to 2 billion gallons. A quantity greater than 1 billion gallons was specified under the Clean Air Act. This is the final standard, not proposed.
  • Cellulosic biofuel increased from 23 million gallons to 31 million gallons. The clean air act had been particularly ambitious anticipating 5.5 billion gallons.

While this represents a middle ground—not a significant retreat from the RFS nor an aggressive move toward mandate requirements—as would be expected no one is particularly happy with the results. [Updated: The levels push the blend wall concern, but are anticipated to be absorbed through increased demand due to lower fuel prices.] Comments must be received on or before July 11, 2016. EPA will announce the public hearing date and location for this proposal in a supplemental Federal Register document.

 

The following links are to the official responses from a range of organizations as posted on our website:

API on RFS Volumes: EPA Must Do More to Protect Consumers

RFA: EPA’s Draft 2017 RFS Rule Relies on Illegal Interpretation of Waiver Authority

NBB: EPA Proposes Modest Biodiesel Growth under Renewable Fuel Standard

ACE: EPA Should Increase 2017 RFS Blending Levels as Gasoline Use Reaches Record Highs

Growth Energy: EPA Proposal: Moves RFS Forward, Improvement Still Needed

The full proposal PDF can be found HERE.