Biofuels industry says that the RFS is ‘back on track’ as it welcomes the EPA’s action

The biofuels industry has welcomed the US Environmental Protection Agency’s (EPA) final rule to set 2017 renewable volume obligations (RVOs) under the renewable fuel standard (RFS), along with 2018 RVOs for biomass-based diesel.

The conventional biofuel amount of 15 billion gallons is an increase from 14.8 billion gallons in the proposed rule, and sets the levels in line with bipartisan Congressional intent.

Under the new RFS rule, which was published yesterday 23 November, 2016, Biomass-Based Diesel standards would move to 2.1 billion gallons in 2018 up from 2 billion gallons in 2017.

The biofuels industry has welcomed the new action.

Emily Skor, CEO of Growth Energy, said: “We are pleased that the EPA’s rule finally achieves the statutory volume for conventional biofuel as called for by Congress.

“The RFS is our country’s most successful energy policy. It continues to inject much needed competition and consumer choice into the vehicle fuels marketplace. It enables greater consumer adoption of cleaner biofuels that displace toxic additives and reduce harmful emissions, while creating American jobs, spurring innovation and lowering the price at the pump.

“Today’s announcement by the administration validates the critical importance of cleaner burning, less expensive biofuels, like ethanol. The American ethanol industry is a true success story, and with increased volumes, producers can unleash their full potential to ensure that higher blends, such as E15, are available to consumers and producers can continue to innovate by developing 21st Century fuels for 21st Century cars.”

The EPA also increased the total advanced biofuel RVO above its proposed 4.0 billion ethanol-equivalent gallons to 4.28 billion gallons, a 670 million gallon increase over 2016.

Biomass-based diesel

“While our industry has shown that higher volumes of biomass-based diesel can and will be produced and consumed, this final rule elevates the growth trajectory for our cleaner, lower carbon intensity advanced biofuel,” said Daniel J. Oh, REG’s president and CEO. 

Oh added: “Biomass-based diesel will continue to lead the way. We appreciate the support of those at the EPA, many others throughout the Administration and our bi-partisan champions on Capitol Hill who all helped make this possible.”

‘A positive signal’

Renewable Fuels Association (RFA) president and CEO Bob Dinneen said: “We can all be thankful EPA has raised the conventional biofuel requirement to the 15 billion gallon level required by the statute. The move will send a positive signal to investors, rippling throughout our economy and environment.

“By signalling its commitment to a growing biofuels market, the agency will stimulate new interest in cellulosic ethanol and other advanced biofuels, drive investment in infrastructure to accommodate E15 and higher ethanol blends, and make a further dent in reducing greenhouse gas emissions.

“The final RVO rule helps put consumers in the driver’s seat when it comes to fuel choice at the pump and we thank EPA for listening to the public’s demand for lower cost, higher octane fuels, recognising the rising demand for gasoline and abiding by the statute. We look forward to getting the RFS back on track, providing the consumer savings, carbon reductions and energy security benefits envisioned by Congress.”

‘Back on track’

“The Renewable Fuel Standard (RFS) is fulfilling its promise. We’re glad the program is back on track," said Adam Monroe, President, Americas.

He added: “Since its inception, the RFS has created more than 357,000 good-paying American jobs that can’t be outsourced. These workers, and the biofuel they produce, have helped us all breathe easier by reducing toxic emissions and protecting people’s health. They’ve also led America to a resurgence in American manufacturing, reducing our dependence on foreign oil. The RFS is a key reason America is achieving its economic, health and climate goals.”

“Novozymes has 1,200 employees in the US and has invested hundreds of millions of dollars in biofuel technology development, putting scientists to work finding ways to turn biomass into biofuel, and building facilities like our $200 million enzyme manufacturing plant in Blair, Nebraska. We made these investments because the Renewable Fuel Standard is strong, stable and clear. With today’s decision, it remains that way.”

Poet CEO Jeff Broin said: “The grain ethanol industry is ready and able to meet its obligation under the Renewable Fuel Standard, and today’s rule from the EPA reflects that reality.

“I commend the EPA on holding firm to the letter of the law despite enormous pressure from oil interests. These numbers reflect the intent of Congress in making homegrown, renewable biofuels a sizable portion of our transportation fuel supply.

“Biofuels like ethanol improve our energy security, replace cancer-causing chemicals in gasoline and reduce greenhouse gasses. Biofuels drive rural economies across the Midwest, and today’s announcement is welcome news for those areas in particular. We must continue to grow the market for biofuels so that we can bring safer, cleaner fuels to America. The EPA’s numbers do just that.”

‘Bad move’

Nevertheless, the American Petroleum Institute (API) criticised the EPA’s action.

According to the API, increasing the volume of higher ethanol fuel blends through this federal mandate is irresponsible and could put consumers on the hook for unnecessary repairs bills, API Downstream Group Director Frank Macchiarola said following EPA’s release of the 2017 RFS mandates on November 23.

“We are disappointed that EPA has taken a step backwards with this final rule,” said Macchiarola. “The RFS mandate is a bad deal for the American consumer. Today’s announcement only serves to reinforce the need for Congress to repeal or significantly reform the RFS. Democrats and Republicans agree this programme is a failure.”

The American Motorcyclist Association also criticised the EPA’s final rule. The trade body said the US EPA’s 2017 RFS volumes requirements are higher than the agency’s May proposal and will mandate more ethanol in the nation’s fuel supply chain despite a low demand for higher ethanol blends and an inadequate distribution and sales network.

“We told the EPA in May that increasing the amount of ethanol in our fuel supply creates an untenable situation for the marketplace and raises the risk to motorcyclists and ATV owners,” said Wayne Allard, AMA vice president for government relations.

He added: “The agency ignored our comments and the concerns of millions of motorcyclists. So, now it is up to Congress to fix the RFS.”