As part of an ongoing effort to enhance energy security and reduce carbon pollution, the U.S. Environmental Protection Agency (EPA) today finalized the 2013 percentage standards for four fuel categories that are part of the Renewable Fuel Standard (RFS) program established by Congress. Most of these fuels are produced by American farmers and growers domestically and help reduce the carbon pollution that contributes to climate change.
The final 2013 overall volumes and standards require 16.55 billion gallons of renewable fuels to be blended into the U.S. fuel supply (a 9.74 percent blend). This standard specifically requires:
• Biomass-based diesel (1.28 billion gallons; 1.13 percent)
• Advanced biofuels (2.75 billion gallons; 1.62 percent)
• Cellulosic biofuels (6.00 million gallons; 0.004 percent)
These standards reflect EPA’s updated production projections, which are informed by extensive engagement with industry and a thorough assessment of the biofuels market.
During this rulemaking, EPA received comments from a number of stakeholders concerning the “E10 blend wall.” Projected to occur in 2014, the “E10 blend wall” refers to the difficulty in incorporating ethanol into the fuel supply at volumes exceeding those achieved by the sale of nearly all gasoline as E10. Most gasoline sold in the U.S. today is E10. In the rule issued today, EPA is announcing that it will propose to use flexibilities in the RFS statute to reduce both the advanced biofuel and total renewable volumes in the forthcoming 2014 RFS volume requirement proposal.
EPA is also providing greater lead time and flexibility in complying with the 2013 volume requirements by extending the deadline to comply with the 2013 standards by four months, to June 30, 2014.
A January 2013 ruling by the U.S. Court of Appeals required the agency to reevaluate projections for cellulosic biofuel to reflect market conditions; the final 2013 standard for cellulosic biofuel announced today was developed in a manner consistent with the approach outlined in that ruling.
The Energy Independence and Security Act (EISA) established the RFS program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.
More information on the standards and regulations: https://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm
Industry Reaction
Following the Environmental Protection Agency (EPA) announcement of the final 2013 Renewable Volume Obligations for the Renewable Fuel Standard (RFS), Tom Buis CEO of Growth Energy released the following statement:
“Growth Energy is pleased that the EPA has finalized the 2013 biofuel volumes and has continued to show its strong commitment to the RFS. We look forward to closely reviewing the final rule and we strongly support increasing levels of renewable fuel into our nation’s fuel supply.
“The RFS continues to be a resounding success, helping create jobs in America that cannot be outsourced, revitalizing rural economies across the country in addition to reducing our dependence on foreign oil and improving our environment, all while providing consumers with a choice and savings at the pump.
“Growth Energy provided substantive comments to the proposed volumes earlier this year demonstrating our continued support for the success and flexibility of the RFS.”
Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE) issued the following statement on the final Renewable Volume Obligations (RVO) under the Renewable Fuel Standard (RFS).
“ACE appreciates that the U.S. Environmental Protection Agency (EPA) has issued the final volumes for 2013, keeping the total volume intact and thoughtfully used the flexibility given to it by Congress to set the final cellulosic target at 6 million gallons. We think that total is realistic to reach this year. To ensure that the RFS drives sufficient demand for E15 and higher blends of ethanol, and serves as a catalyst for innovation in advanced and cellulosic biofuels, ACE will continue our constructive dialogue with EPA as it considers its flexibility to address the volumes for 2014 and beyond.