EPA proposes RFS volumes for 2018

The US Enviornmental Protection Agency (EPA) has signed a proposed rule setting the minimum amount of renewable fuels that must be supplied to the market in calendar year 2018 under the Renewable Fuel Standard (RFS) programme.

This includes setting the renewable volume obligations (RVOs), along with the 2019 RVO for biomass-based diesel.

The agency proposed a total renewable fuel volume of 19.24 billion gallons for 2018, of which 4.24bn is advanced biofuel, including 238 million gallons of cellulosic biofuel and 2.1 billion gallons of biomass-based diesel. That leaves a 15bn requirement for conventional renewable fuels like corn ethanol.  

Cuts

The requirement for total renewable fuel drops slightly from 19.28bn gallons to the proposed 19.24bn gallons, when compared to the final RVO for 2017. The cellulosic RVO has also been lowered, from 311 million gallons in 2017 to a proposed 238 million gallons in 2018, with the advanced biofuel requirement dropping from 4.28bn gallons in 2017 to a proposed 4.24bn gallons in 2018. The final RVO for biomass-based diesel in 2017 was set at 2bn gallons.

Some of the key elements are mentioned below:

 

• Non-advanced or “conventional” renewable fuel volumes are maintained at the 15bn gallon target set by Congress.
• The biomass-based diesel standard for 2019 would be maintained at the 2018 levels of 2.1 billion gallons.
• EPA is beginning technical analysis that will inform a future rule to reset the statutory volumes for cellulosic, advanced, and total biofuels. The law requires this reset when certain conditions are met.

“Increased fuel security is an important component of the path toward American energy dominance,” said EPA Administrator Scott Pruitt. “We are proposing new volumes consistent with market realities focused on actual production and consumer demand while being cognizant of the challenges that exist in bringing advanced biofuels into the marketplace. Timely implementation provides certainty to American refiners, the agriculture community and broader fuels industry, all of which play an important role in the RFS programme.”

Industry reaction

In response, Growth Energy CEO Emily Skor issued the following statement: “The release of the proposed RVOs is the first real test of the current administration’s pledged support for renewable fuels, and we are encouraged to see the EPA demonstrate President Trump’s continued commitment to the Renewable Fuel Standard.

“Information from the Department of Energy, as well as from the numerous retailers across the country selling higher biofuel blends, confirm what we’ve known for years – there is no ‘blend wall.’ More and more of America’s drivers are choosing higher biofuel blends, like E15, and fulfilling the promise of the RFS.

“While we are pleased with the EPA and Administration’s commitment to a 15-billion-gallon target for conventional biofuels, we would like to see final levels for cellulosic and advanced biofuels continue to give producers and stakeholders certainty in their investment in second generation technology. 

“The RFS is a great American success story: It has helped provide consumers with real choice and savings at the pump, while also strengthening our economy, delivering greater energy independence, and improving our environment.”

Elsewhere, the Renewable Fuels Association said: “We are pleased EPA is proposing to maintain the conventional biofuel requirement at the 15 billion gallon level required by the statute, just as EPA finalised in its 2017 RVO. Consumers only see the full benefits of the RFS when EPA implements the policy as intended by Congress. By staying the course and maintaining a strong RFS, consumers will continue to benefit from the policy, including a greater choice at the pump, while breathing cleaner air and seeing a boost to local economies. 

“By maintaining the 15 billion gallon level for corn ethanol, the rule will also help to drive more investment in infrastructure to accommodate higher ethanol blends. The RFS is a vital policy and we encourage EPA to finalise this rule as quickly as possible and certainly in time to meet the statutory deadline of 30 November.

“RFA recently issued an analysis of the RFS since its first adoption in 2005, finding that ‘by any objective measure, the RFS has been a tremendous success.’  Thanks to the RFS, ethanol production has grown, corn production has increased, US petroleum net import dependence has dropped and ethanol’s role in cleaning the air has increased.”

NBB slams plans

However, the National Biodiesel Board criticised the new proposals, saying it ignored the “realities and the law”.

Anne Steckel, vice president of federal affairs at the National Biodiesel Board, said: “This proposal continues to underestimate the ability of the biomass-based diesel industry to meet the volumes of the RFS programme. This is a missed opportunity for biodiesel, which reduces costs, provides economic benefits and results in lower prices at the pump. Higher advanced-biofuel and biomass-based diesel volumes will support additional jobs and investment in both rural economies and clean-energy-conscious communities.

“This is only a proposal, and, in the past, the EPA’s final numbers have been higher than those in the proposal. We will continue to work with the EPA and ensure the administration doesn’t turn its back on our domestic energy producers.

“The EPA should be committed to diversifying the diesel fuel market and prioritising advanced biofuels. Targets like this ignore reality and the law, inhibiting growth in the industry.”

This story was written by Liz Gyekye, editor of Biofuels International.