AFPM sends US EPA petition to request waiver of 2016 cellulosic biofuel volumetric requirements

The American Fuel & Petrochemical Manufacturers (AFPM) has sent a petition to the US Environmental Protection Agency (EPA) requesting that it waives its 2016 cellulosic biofuels volumes “due to an inadequate domestic supply of such fuel”.

According to the trade body that represents oil and high-tech American manufacturers, it wants the EPA to waive the Renewable Fuel Standard (RFS) cellulosic volumes to avoid “phantom fuel” compliance payments arising from a shortfall in 2016 cellulosic production.  

AFPM estimates that a favourable decision on this petition would reduce payments for these non-existent fuels by $50-75 million (€48m-€71m).

In a letter to the EPA’s administrator, the AFPM wrote that its refining members are adversely impacted by EPA’s “overestimate of 2016 cellulosic biofuel production” and are unable to acquire the requisite amount of cellulosic biofuel Renewable Identification Numbers (RINs) to comply with EPA’s 2016 cellulosic mandate under the RFS.

Compliance years

In December 2015, EPA promulgated the applicable volumetric requirements for various renewable fuels under the RFS for compliance years 2014-2016.  This rulemaking established the mandated volume of cellulosic biofuel for 2016 at 230 million ethanol-equivalent gallons.

In promulgating the final rule, EPA exercised its waiver authority to reduce the statutorily prescribed amount of cellulosic biofuel under the RFS from 4.25 billion gallons to 230 million gallons. In connection with that rulemaking, AFPM commented that the reduced cellulosic volumes EPA was contemplating in the proposal were too aggressive and unlikely to be achieved. AFPM also filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit.

In its letter to the EPA, the AFPM wrote: “Although the 2016 compliance year is not complete, it is now obvious that there will be a significant shortfall in the quantity of cellulosic biofuels available for compliance. Indeed, the EPA Moderated Transaction System (EMTS) data posted through October (the most recent data available) confirms that the cellulosic biofuel industry has not produced enough qualified product to enable compliance with the 2016 cellulosic standard.

“In fact, analysing the amount of cellulosic fuel produced through November results in a 2016 annualized cellulosic biofuel production rate between 173.8 and 190 million gallons, approximately 40-60 million gallons short of EPA’s estimated target.”

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