California Congressional delegation urges EPA to drop distribution waivers from RFS

The California Congressional delegation has added its voice to the crowd urging the US Environmental Protection Agency (EPA) to increase its proposed biofuel obligations for 2017.

In an open letter addresses to EPA administrator Gina McCarthy, six Californian Members of Congress expressed their concern that the suggested renewable volume obligations (RVO) under the Renewable Fuel Standard (RFS) fail “to get the programme back on track” and should be revised.

The delegates call the RFS “one of the few tools” the US has to reduce transport emissions and claim that a “strong RFS is vital” to implementing a US low carbon fuel standard.

While the letter recognises that EPA is moving “in the right direction” by increasing the total renewable fuel volume to 18.8 billion gallons for 2017, the amount falls short of what the US Congress originally envisioned.

“[The proposed rule] continues to rely on a flawed ‘distribution waiver’ methodology that has sent a chilling signal to biofuels investors since initially proposed in November 2013,” the letter reads.

“Under this methodology, which Congress previously rejected, EPA allows the oil industry to avoid its statutory blending obligation by claiming there is inadequate infrastructure to bring more biofuels to consumers,” the delegates continue.

According to the Biotechnology Innovation Organization, EPA’s actions have caused a shortfall of $22.7 billion (appr. €20.5bn) in domestic US investment in advanced biofuels with projects either being put on hold or moved overseas.

The Congressmen urge EPA to eliminate the distribution waivers to increase stability for the RFS and help advance the biofuels industry.

Getting back on track ‘critical’

Ethanol trade association Growth Energy has expressed its support for the California delegates, stating that obligated parties are currently being let “off the hook”, which decreases availability of higher biofuel blends.

“By returning to the statutory levels, the administration would send a signal to the renewable fuels industry that they are committed to achieving the goals of carbon reduction, a free and fair fuel marketplace where consumers have a choice, and reaffirm their commitment to reduce our dangerous dependence on foreign oil,” said Emily Skor, CEO at Growth Energy.

“Getting the RFS back on track is critical if we wish to continue to build on the progress already achieved,” she continued.

This article was written by Ilari Kauppila, deputy editor at Biofuels International