US EPA unveils 2017 biofuels proposal

The US Environmental Protection Agency (EPA) is proposing a slight increase in the amount of corn-based ethanol and biofuels blends that will be mixed into gasoline and diesel sold at fuel pumps in 2017.

The EPA wants to see 18.8bn gallons blended into the US’ fuel supply in 2017, up 4% from the 18.11bn gallons set for this year. That volume includes 14.8bn for conventional biofuels, mainly ethanol, up from 14.5bn for this year, the EPA said in a statement.

This figure is still far below the 24bn gallon target in the Renewable Fuel Standard (RFS) set in 2007 by Congress, which was aimed at cutting US oil imports and increasing renewable fuel use.

According to the EPA, the proposed volumes would represent growth over the following historic levels:

• Total renewable fuel volumes would grow by nearly 700 million gallons between 2016 and 2017.
• Advanced renewable fuel – which requires 50% lifecycle carbon emissions reductions – would grow by nearly 400 million gallons between 2016 and 2017.
• The non-advanced or “conventional” fuels portion of total renewable fuels – which requires a minimum of 20% lifecycle carbon emissions reductions - would increase by 300 million gallons between 2016 and 2017 and achieve 99% of the Congressional target of 15 billion gallons. 
• Biomass-based biodiesel – which must achieve at least 50% lifecycle emissions reductions - would grow by 100 million gallons between 2017 and 2018.
• Cellulosic biofuel – which requires 60% lifecycle carbon emissions reductions- would grow by 82 million gallons, or 35 percent between 2016 and 2017.

Biomass-based diesel

Speaking about the plans, Daniel J. Oh, CEO of US-based advanced biofuels producer Renewable Energy Group, said: “We are pleased that EPA has again proposed continued growth of biomass-based diesel and overall advanced biofuel volumes. 

“This proposal provides greater certainty in the marketplace, reflects the expanding usage and blend levels consumers want, and points towards continuing growth for the cleaner, lower carbon intensity fuel we produce.

“We are very appreciative of the advanced biofuel advocates within the Administration and on Capitol Hill for their consistent support. 

“We will continue to work alongside our industry partners to provide the EPA, OMB and other federal agencies additional market data that will support additional growth in the D4 (biomass-based diesel) and D5 (general advanced biofuel) categories, as we believe that there is a compelling basis for further increases over time.” 

However, not all producers welcomed the EPA’s plans.  According to media agency Reuters, US biofuels producer Poet objected to the plans. While going in the right direction, "they once again fail to acknowledge the existing capabilities of the biofuels industry and fuel retailers in meeting the (RFS) goals," said Poet CEO Jeff Broin in a statement seen by Reuters.

Nebraska Governor Pete Ricketts also criticised the EPA’s proposal.

He explained: “Once again, the EPA is proposing to lower the Renewable Fuel Standard and to break their promise to the American people.

“Continued efforts to lower the RFS will negatively impact Nebraska and other Midwestern states by creating uncertainty for companies who are investing in our communities and bringing the jobs we need to continue to make our state the best place in the world to live, work, and raise a family.  I urge the Obama Administration to reconsider their proposed reduction, and to keep their promise on the RFS to the American people.”

Oil industry criticism

In contract, the oil industry said the proposed biofuel volumes are not safe for cars on the road and will raise gas prices at the pump, which are on the low end of there they have been in recent years.

“The administration is potentially putting the safety of American consumers, their vehicles and our economy at risk,” American Petroleum Institute downstream group director Frank Macchiarola told the Environmental Leader.  

He added: “Higher ethanol blends, such as E15, can damage engines and fuel systems — potentially forcing drivers to pay for costly repairs, according to extensive testing by the auto and oil industries. API is urging EPA to set the final ethanol mandate at no more than 9.7% of gasoline demand.”