EPA Finalizes 2013 Renewable Fuel Standards to Help Promote American Energy Independence, Reduce Carbon Pollution

(U.S. Environmental Protection Agency) EPA also announces steps to address concerns about the E10 blend wall
As part of an ongoing effort to enhance energy security and reduce carbon pollution, the U.S. Environmental Protection Agency (EPA) today finalized the 2013 percentage standards for four fuel categories that are part of the Renewable Fuel Standard (RFS) program established by Congress. Most of these fuels are produced by American farmers and growers domestically and help reduce the carbon pollution that contributes to climate change.
The final 2013 overall volumes and standards require 16.55 billion gallons of renewable fuels to be blended into the U.S. fuel supply (a 9.74 percent blend). This standard specifically requires:
•           Biomass-based diesel (1.28 billion gallons; 1.13 percent)
•           Advanced biofuels (2.75 billion gallons; 1.62 percent)
•           Cellulosic biofuels (6.00 million gallons; 0.004 percent)
These standards reflect EPA’s updated production projections, which are informed by extensive engagement with industry and a thorough assessment of the biofuels market.
During this rulemaking, EPA received comments from a number of stakeholders concerning the “E10 blend wall.” Projected to occur in 2014, the “E10 blend wall” refers to the difficulty in incorporating ethanol into the fuel supply at volumes exceeding those achieved by the sale of nearly all gasoline as E10. Most gasoline sold in the U.S. today is E10. In the rule issued today, EPA is announcing that it will propose to use flexibilities in the RFS statute to reduce both the advanced biofuel and total renewable volumes in the forthcoming 2014 RFS volume requirement proposal.
EPA is also providing greater lead time and flexibility in complying with the 2013 volume requirements by extending the deadline to comply with the 2013 standards by four months, to June 30, 2014.
A January 2013 ruling by the U.S. Court of Appeals required the agency to reevaluate projections for cellulosic biofuel to reflect market conditions; the final 2013 standard for cellulosic biofuel announced today was developed in a manner consistent with the approach outlined in that ruling.
The Energy Independence and Security Act (EISA) established the RFS program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.
More information on the standards and regulations: http://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm
More information on renewable fuels: http://www.epa.gov/otaq/fuels/renewablefuels/index.htm
READ MORE and MORE (Benzinga) and MORE (National Biodiesel Board) and MORE , MORE and MORE  (Biofuels Digest) and MORE (Times-Picayune) and MORE (Reuters) and MORE (Ethanol Producer Magazine) and MORE (Bloomberg BusinessWeek) and MORE (The Hill Reg Watch) and MORE (DomesticFuel.com includes audio interview with Mindi Farber-DeAnda, Team Lead, Biofuels and Emerging Technologies, Office of Petroleum, Natural Gas, and Biofuels Analysis at EIA who explains how the two agencies (DOE and EPA) work together on this)

Excerpt from National Biodiesel Board: ...“Biodiesel is proving that Advanced Biofuels are working today and that they can reduce prices for consumers,” Steckel (Anne Steckel, NBB’s vice president of federal affairs) said. “The RFS is a critical component to that success, and today’s rule will help stimulate new technologies and additional growth.”
"Today's announcement also demonstrates that the EPA has tremendous flexibility in addressing concerns stemming from the various volume requirements under the RFS, and that it is prepared to use that flexibility in a practical way to ensure that the policy is running smoothly," Steckel added. READ MORE

Excerpts from Biofuels Digest: ...
Bob Dinneen, CEO, Renewable Fuels Association
“First and foremost, by decreasing the cellulosic requirement by 99.4 percent to a very realistic, achievable number, the EPA has totally obliterated Big Oil’s myth that the RFS is inflexible and unworkable. As in years past, the finalized annual requirements are a testament to the inherent flexibility that is the backbone of the RFS.”
...
Brooke Coleman, Executive Director, Advanced Ethanol Council
“It is clear that U.S. EPA has done its homework when it comes to setting the 2013 standard. The commercial cellulosic biofuel facilities that U.S. EPA projected to start up in 2013 are indeed operating, and the adjusted targets reflect the number of actual gallons expected to be available through the end of the year. We agree with U.S. EPA that there will be sufficient quantities of advanced biofuels in the market to maintain the broader advanced biofuel standard, which is consistent with the legislative intent of the RFS to promote advanced renewable fuels.”
...
Leticia Phillips, Brazilian Sugarcane Industry Association (UNICA)
“Sugarcane ethanol producers applaud today’s Environmental Protection Agency (EPA) announcement on 2013 annual percentage standards for the Renewable Fuels Standard (RFS), which maintains the advanced biofuel volume at 2.75 billion gallons. Brazilian exports provided nearly one-quarter of the entire U.S. advanced biofuel supply in 2012, are projected to supply nearly 700 million gallons in 2013, and could supply up to one billion additional gallons in 2014 – all with at least 61% fewer emissions than gasoline, according to the EPA.” READ MORE

Excerpt from Bloomberg BusinessWeek: ...Refiners have argued that the RIN price is driving up the cost of gasoline for consumers.
Gasoline for September delivery declined 3.66 cents to $2.9140 a gallon at 3:55 p.m. on the New York Mercantile Exchange, a four-week low, as the value of RINs fell today. READ MORE and MORE