Industry response as US EPA reveals proposed 2014 RFS numbers

The US Environmental Protection Agency (EPA) has released its proposed figures for the amount of renewable fuels to be blended into petrol and diesel via the Renewable Fuels Standard.

Amid industry speculation that volumes required would be a lot lower than previously thought, the following figures were released on 15 November:

Cellulosic ethanol - 17 million gallons
Biomass-based diesel – 1.28 billion gallons
Advanced biofuels – 2.2 billion gallons

These proposed volumes are all down from the expected 2014 statutory figures of 1.75 billion gallons, 1.5 billion gallons and 3.75 billon gallons respectively. This announcement is open for public comment a full 60 days after it is published in the Federal Register however.

The National Biodiesel Board (NBB) warned the decision to keep the biodiesel figure locked at 1.28 billion gallons for a second consecutive year would ‘cause plant closures and layoffs in the US biodiesel industry’ and called on the Obama Administration to recommit to developing American-made advanced biofuels.

Biodiesel production is on track to set a production record exceeding 1.7 billion gallons in 2013 alone, using a mix of feedstocks including recycled cooking oil, agricultural oils and animal fats.

‘This proposal, if it becomes final, would create a shrinking market, eliminate thousands of jobs and likely cause biodiesel plants to close across the country,’ says Anne Steckel, NBB VP of federal affairs. ‘It also sends a terrible signal to investors and entrepreneurs that jeopardises the future development of biodiesel and other advanced biofuels in the US.’

‘By re-writing the statute and re-defining the conditions upon which a waiver from the RFS can be granted, EPA is proposing to place the nation’s renewable energy policy in the hands of the oil companies,’ adds Bob Dinneen, the CEO of the Renewable Fuels Association. ‘That would be the death of innovation and evolution in our motor fuel markets, thus increasing consumer costs at the pump and the environmental cost of energy production. This proposal cannot stand.’

Dinneen expects, during the comment period, reason and fact to replace the fear and misinformation ‘peddled by Big Oil and seemingly adopted for this proposal’. He believes the Obama  Administration committed to addressing climate change simply cannot turn its back on biofuels.

‘An Administration managing an economic recovery cannot also watch petrol prices rise for lack of competition, nor can it be intent upon seeing the next generation of biofuel technology commercialised but eviscerate the demand base that would allow those fuels to succeed,’ he continues. ‘And an Administration that understands the importance of a healthy farm economy cannot rip away demand that farmers relied upon in growing the largest corn crop in history, particularly at a time when there is no Farm Bill safety net.’

USDA secretary Tom Vilsack comments: ‘It's important to take a long-term approach to the RFS … improved distribution and increased consumer use of renewable fuels are critical to the future of this industry. I am pleased that EPA is requesting comments on how we can help the biofuels industry expand the availability of high-ethanol blends, and I hope the industry uses the comment period to provide constructive suggestions.’