EPA Fulfills Another Trump Administration Promise: Finalizes RFS Volumes for 2020 and Biomass Based Diesel Volumes for 2021

December 19, 2019

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Today, the U.S. Environmental Protection Agency (EPA) finalized a rule that establishes the required renewable volumes under the Renewable Fuel Standard (RFS) program for 2020, and the biomass-based diesel volume for 2021. Through this action, the Trump Administration has fulfilled yet another key promise to the American people, American farmers and American biofuels producers by increasing biofuels volumes under the renewable fuel standard and modifying the program requirements to ensure those volumes are met. The EPA is committed to ensuring a net of 15 billion gallons of conventional biofuel is blended in 2020.

“Through President Trump’s leadership, this Administration continues to promote domestic ethanol and biodiesel production, supporting our Nation’s farmers and providing greater energy security,” said EPA Administrator Andrew Wheeler.“President Trump committed to our nation’s farmers that biofuel requirements would be expanded in 2020. At the EPA we are delivering on that promise and ensuring a net of 15 billion gallons of conventional biofuel are blended into the nation’s fuel supply.”

Under the Trump Administration, EPA has consistently increased the renewable volume obligations and continued to expand the nation’s renewable fuels sector. Through this rule, EPA has modified the RFS program by projecting small refinery relief to ensure that these final volumes are met, while adjudicating small refinery relief when appropriate. As proposed, we are finalizing a projection methodology based on the 2016-2018 annual average of exempted volumes had EPA strictly followed the Department of Energy (DOE) recommendations of 770 million Renewable Identification Numbers (RINs) in those years, including granting 50 percent relief where DOE recommended 50 percent relief. This is our general approach to adjudicating Small Refinery Exemption (SRE) petitions going forward, beginning with 2019 SRE petitions and including 2020 SRE petitions and beyond, we are committed to following the DOE recommendations. By proposing effectively 15.8 billion gallons for 2020 we will ensure meeting our target of 15 billion gallons.

The key elements of today’s action are as follows:

“Conventional” biofuel volumes, primarily met by corn ethanol, will be maintained at the 15 billion gallon target set by Congress for 2020.
Cellulosic biofuel volumes for 2020, and thus advanced biofuel volumes, will increase by almost 170 million gallons over the 2019 standard.
Biomass-based diesel volumes for 2021 will be equivalent to the standard for 2020, still more than double the statutory requirement.
EPA will closely examine the labeling requirements for E15 fuel and move forward with clarifying regulations as needed.
EPA has modified the way RFS obligations are determined to better ensure that these volumes are met, while still allowing for relief for small refineries consistent with the direction provided by Congress under the statute. By proposing effectively 15. 8 billion gallons we will net out at 15 billion.

This final rule is the latest in a series of steps the Administration has taken to expand domestic energy production and improve the RFS program which will help American farmers.

More information can be found here: https://www.epa.gov/renewable-fuel-standard-program/final-renewable-fuel-standards-2020-and-biomass-based-diesel-volume

Earlier this year, the Trump Administration made good on its promise to allow the year-round sale of E15 gasoline across the country. Building on the President’s earlier decision to allow year-round sales of E15, EPA is working to streamline labeling and remove other barriers to the sale of E15. EPA is also making important reforms to the Renewable Identification Number (RIN) compliance system to improve transparency and to deter price manipulation in the RIN market. These efforts will provide certainty and transparency to farmers and biofuel producers across the country.

Under President Trump’s leadership, EPA will continue to actively engage with stakeholders to expand the number of approved fuel pathways and add diversity to the biofuel mix in the United States. Since January 2017, EPA has approved 25 petitions for new fuel pathways, including a final rule in August 2018 that approved new pathways for biofuels derived from sorghum. EPA will continue to further explore opportunities to remove regulatory burdens that prevent marketplace entrance and growth to natural gas, flexible fuel vehicles, and E85 fuels.

Since taking office in 2017, the EPA under the Trump Administration has worked to provide long-term certainty and a workable regulatory environment for U.S. farmers and ranchers, including:

The repeal the 2015 Waters of the United States (WOTUS) rule and proposing a more common-sense replacement.
Ending long-standing agency practices of “sue and settle.”
Enhancing the agency’s partnership with agriculture stakeholders through EPA’s Smart Sectors program.
Issuing the long-term approval for the insecticide sulfoxaflor.
Taking steps towards re-registering the herbicide atrazine.
Encouraging market-based water quality training.
Signing a final rule exempting routine farm animal waste emissions from reporting under Emergency Planning and Community Right to Know Act (EPCRA).
Approving Renewable Fuel Standard pathways for corn and sorghum oil.
Reaffirming there is no risk to the public health when listing glyphosate as not a carcinogen.

In future, separate actions:

EPA will take final action to address the court’s 2016 remand.
USDA will pursue opportunities through the budget process to consider infrastructure projects that would accommodate higher biofuel blends.

The Trump Administration will continue to enact sensible regulation that improves the lives of all Americans.

Background

The Clean Air Act requires EPA to set annual RFS volumes of biofuels that must be used for transportation fuel for four categories of biofuels: total, advanced, cellulosic, and biomass-based diesel. EPA implements the RFS program in consultation with the U.S. Department of Agriculture, the U.S. Department of Energy, and consistent with direction from Congress. READ MORE

Ethanol Industry Disappointed with EPA Final Rule (Energy.AgWired.com; includes AUDIO)

Growth Energy says more action needed by EPA to restore biofuel growth (Growth Energy)

Trump EPA finalizes 2020 biofuel rule, corn lobby objects (Reuters)

Trump Quota Rebuffs Biofuels Allies (Rig Zone)

Farm, ethanol groups angered at final EPA ethanol rule (Associated Press/Seattle pi)

BIOFUEL STAKEHOLDERS CRITICAL OF EPA 2020 RFS FINAL RULE (Brownfield Ag News)

Biofuel Groups Criticize EPA Ethanol Rule as Too Favorable to Oil Refiners: Groups say rule’s exemptions undermine target; Iowa senators say agency neglected promises to aid farmers hurt by trade war (Wall Street Journal)

Trump Rebuffs Corn Farmers With Status Quo on Biofuels (Bloomberg)

EPA sticks with RFS reallocation plan over farm country wishes (AgriPulse)

EPA finalizes ethanol rule to chagrin of producers, oil industry (The Hill)

US refiners required to blend 20.09 billion gallons renewable fuel in 2020: EPA (S&P Global Platts)

Daily on Energy, presented by Renew Biodiesel: Fossil fuel plants get a boost from Trump-appointed regulators (Washington Examiner)

Farmers underwhelmed, saying EPA "playing games" on ethanol (NTV ABC)

Despite heavy lobbying, Iowa farmers, elected leaders say Trump's EPA reneges on renewable fuels promise (Des Moines Register)

Farm, ethanol groups angered at final EPA ethanol rule (Central Valley Business Monthly/Associated Press)

RFA Reacts to EPA Final Rule (AgNewsWire)

Sen. Joni Ernst calls for EPA chief to be replaced, says ethanol rules fall short of biofuels target (Omaha World-Herald)

Noem joins chorus critical of final EPA ethanol rule (Gillette News Record)

OTHER VOICES: Trump administration keeps promises to farmers, biofuel producers -- Andrew Wheeler (Sioux City Journal)

NBB Disappointed with Lack of Growth in 2020 RFS Volumes (National Biodiesel Board)

Biodiesel, Soybean Leaders Ask President to Improve 2020 RFS Rule (National Biodiesel Board)

Excerpt from Energy.AgWired.com: Renewable Fuels Association President and CEO Geoff Cooper says the rule fails to deliver on President Trump’s commitment to restore integrity to the RFS. “While the final rule is an improvement over the original proposal, it still does not guarantee that the law’s 15-billion-gallon conventional biofuel blending requirement will be fully enforced by EPA in 2020,” said Cooper.

According to the rule released today, EPA will project SRE volumes based on historical Department of Energy (DOE) recommendations, rather than the actual volume of SREs issued by EPA. Ironically, however, EPA has generally chosen to ignore DOE’s recommendations regarding SRE petitions in recent years. For the 2016-2018 compliance years, the volume of required renewable fuel blending waived by EPA was almost double the amount recommended by DOE.

“After doing the exact opposite in recent years, EPA is now suggesting it will follow DOE’s recommendations on 2020 SRE petitions,” Cooper said.

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American Coalition for Ethanol (ACE) CEO Brian Jennings says disappointed is an understatement. “Over the course of the past few months, we’ve gone from promises of a ‘giant package’ to the reality of a lump of coal…We are forced yet again to continue defending the RFS and fighting EPA’s mismanagement of the program in the third branch of government, but this is another painful reminder our industry needs to go on offense with a new plan to increase demand on ethanol’s low carbon and high octane advantages.”

The National Biodiesel Board (NBB) expressed its disappointment with the final rule, which maintains the 2020 overall advanced volume and 2021 biomass-based diesel volume at the same levels as the current year, blocking growth for the biodiesel industry. “EPA’s final rule for the 2020 RFS volumes is simply out of step with Congressional intent and President Trump’s promises,” said Kurt Kovarik, NBB’s VP of Federal Affairs. “This week, Congress and the president are extending the biodiesel tax incentive through 2022 and sending an unmistakable signal that they support continued growth of biodiesel and renewable diesel. At the same time, EPA Administrator Wheeler is doing everything he can to block that growth.”

National Corn Growers Association (NCGA) President Kevin Ross said, “The Administration has chosen to move forward with a final rule that corn farmers believe falls short of adequately addressing the demand destruction caused by EPA’s abuse of RFS refinery waivers. While using the DOE recommendations to account for waivers is an improvement over the status quo, it is now on corn farmers to hold the Administration to their commitment of a minimum of 15 billion gallon volume, as the law requires. We will use future rulemakings and other opportunities to hold the EPA accountable.” READ MORE