As 2018 Renewable Fuel Numbers Disappoint, It’s ‘Advanced Biofuels Industry to EPA: More Please, Sir!’

November 30, 2017

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by Jim Lane (Biofuels Digest) In Washington, the Environmental Protection Agency released its final Renewable Fuel Standard renewable volume obligations for 2018. The agency finalized a total renewable fuel volume of 19.29 billion gallons , of which 4.29 BG is advanced biofuel, including 288 million gallons of cellulosic biofuel.

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Your takeaway: a flat-line from 2017 for advanced biofuels and an upward revision from EPA’s original proposal, after four months of hoo-hah and industry protest, of 50,000 gallons.

How small a number is 50,000 gallons? Let me put it this way. That’s, on average, one teaspoon of fuel for every 85 Americans.

So, the EPA has given its annual RFS volume obligation burp and it was about as foetid as it usually is, and once again the biofuels industry, looking at its vile and inadequate bowl of gruel, is humbly asking the Beadle for “more please, sir” in a scene right out of Oliver Twist.

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The level of disappointment is generally linked in a linear fashion to amount of low-carbon, advanced biofuels you are capable of making. If you can make very little, this year’s RVO was OK, if not great. Corn ethanol is just fine. If you can make lots of low-carbon fuels, you were somewhere between ‘meh’ and apoplectic.

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The Advanced Biofuels Association – Mike McAdams president

“The Advanced Biofuels Association applauds EPA for releasing the final 2018 Renewable Volume Obligation mandates on time and for adjusting the proposed volumes for the cellulosic and advanced pools. The announcement demonstrates strong, continued support for the Renewable Fuels Standard (RFS). It will also signal to industry that investment in this space is recognized and rewarded with increasing RFS mandates. Given all of the challenges of this year, ABFA is delighted that we were able to hold the line for the biomass-based diesel pool.

“We look forward to working with EPA further to finalize the biointermediates section of the pending Renewable Enhancement and Growth Support Rule, a much-needed regulatory fix that will expand the success of the advanced industry. ABFA appreciates EPA’s continued support of the RFS as our members bring new advanced biofuels production to America and deliver increasing volumes of low-carbon fuels to American consumers.”

Renewable Energy Group – Randy Howard, interim CEO

“The Administration heard us when we said the Advanced Biofuel RVO should grow in 2018, not be cut as EPA originally proposed. While we would have liked to see a larger increase, we consider this a crucial win – signaling a policy of continued RVO growth under the Trump administration.

“It would have been even better if EPA continued that policy of growth with the 2019 Biomass-Based Diesel RVO as we advocated. We feel the Administration missed an opportunity in not continuing a sensible and consistent growth trajectory for biomass-based diesel. We firmly believe the US industry is fully capable of delivering increasing volumes of biomass-based diesel to meet a growing RVO as Congress intended when it created the RFS. We will continue to work with EPA in 2018 to develop workable plans for additional growth in 2019.” READ MORE

EPA Finalizes RFS Volumes for 2018 and Biomass Based Diesel Volumes for 2019 (Environmental Protection Agency)

Biofuels Industry Reacts to Final RVO Numbers (AgWired.com; includes AUDIO)

EPA to Reward Iowa by Holding the Biofuel Mandate Steady (Bloomberg)

Grassley ‘disappointed’ but expected today’s EPA decision on RFS (Radio Iowa)

EPA finalizes 2018 RFS RVOs, 2019 RVO for biomass-based diesel (Ethanol Producer Magazine)

FINAL 2018 RVO REPRESENTS ‘MARKED IMPROVEMENT’ OVER PROPOSAL (KTIC)

U.S. EPA ups biofuel targets slightly, draws scorn from refiners (Reuters)

2018 RFS Volumes Set--EPA Leaves Biodiesel Alone, Raises Cellulosic Volumes (DTN The Progressive Farmer)

25x'25 Statement on EPA's Final RFS RVOs (25x'25)

Trump disappoints fossil fuel proponents and Corn Belt base as EPA leaves biofuels program mostly unchanged (CNBC)

EPA MAINTAINING RFS LEVELS LEAVES ROOM FOR IMPROVEMENT (Brownfield Ag News)

Dec. 1, 2017: RFS announcement offers mixed results for biofuel groups (Agri-Pulse; AUDIO)

Secretary Perdue Comments on RVO Numbers (Energy.AgWired.com; includes AUDIO)

Ethanol Report on Final 2018 RVOs (Energy.AgWired.com; includes AUDIO)

Mixed Reaction as EPA Releases Final 2018 RVO (Hoosier Ag Today)

EPA Sets 2018 Renewable Fuel Standard Targets Slightly Higher (Convenience Store News)

EPA maintains biofuel quotas, to the relief of Midlands ethanol-industry leaders (Omaha World-Herald)

Pruitt Reverses Course on Biofuels in 2018 RFS Determination (Environmental and Energy Study Institute)

Ethanol industry, farm officials support EPA’s decision on RFS (Grand Island Independent)

Renewable Fuel Standard for 2018 includes ethanol increase (Boating Industry)

Excerpt from 25 x '25: However, the alliance is disappointed the agency is keeping the 2019 biobased diesel requirements static at 2.1 billion gallons, the same as those already set for next year. And EPA's reduction in cellulosic ethanol requirements – from this year's 311 million gallons down to 288 million gallons next year – is equally frustrating. With requirements that fall far short of the capacity that these industries have to produce them, EPA is discouraging investment and innovation in two low-carbon transportation fuels that can – and should – be the standard for our nation in the years ahead. READ MORE

Excerpts from Environmental and Energy Study Institute:

The proposed volumes made waves this summer, as they were the first time that the EPA had chosen to lower total fuel volumes, compared to the prior year. Compared to the proposal, cellulosic biofuels received a modest boost of 50 million gallons in the final volumes. The biofuels industry argues that advancements – such as the growing biogas sector (a cellulosic fuel) and the rapid deployment of corn-fiber to fuel technology warrant more robust cellulosic fuel volumes for 2018. And, of course, these fuels represent even greater greenhouse emission reductions as compared to gasoline.

Additionally, in reducing statutory volumes by 20 percent in two consecutive years, EPA will prompt a “reset” of volumes. According to the Clean Air Act, any RFS reset undertaken by the EPA would require a complete analysis of various factors including impacts of the statute on the environment, the transportation fuels market, prices of agriculture commodities, food prices, job creation and rural development. READ MORE