EPA Proposes Increases in Renewable Fuel Levels

May 29, 2015

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(Environmental Protection Agency) Today the EPA announced proposed volume requirements under the Renewable Fuel Standard (RFS) program for the years 2014, 2015 and 2016, and also proposed volume requirements for biomass-based diesel for 2017. The proposal would boost renewable fuel production and provide for ambitious yet responsible growth over multiple years, supporting future expansion of the biofuels industry.

“This proposal marks an important step forward in making sure the Renewable Fuel Standard program delivers on the Congressional intent to increase biofuel use, lower greenhouse gas emissions and improve energy security,” said Janet McCabe, the acting assistant administrator for EPA’s Office of Air. “We believe these proposed volume requirements will provide a strong incentive for continued investment and growth in biofuels.”

After extensive outreach and dialogue with the agricultural community, biofuel producers and the oil and gas industry, EPA is proposing to establish 2014 standards at levels that reflect the actual amount of domestic biofuel use in that year, and standards for 2015 and 2016 (and 2017 for biodiesel) that increase steadily over time.

Proposed Renewable Fuels Volumes

	2014	2015	2016	2017
Cellulosic biofuel	33 mill gal	106 mill gal	206 mill gal	n/a
Biomass-based diesel	1.63 bill gal	1.70 bill gal	1.80 bill gal	1.90 bill gal
Advanced biofuel	2.68 bill gal	2.90 bill gal	3.40 bill gal	n/a
Total renewable fuel	15.93 bill gal	16.30 bill gal	17.40 bill gal	n/a

Note: Units for all volumes are ethanol-equivalent, except for biomass-based diesel volumes which are expressed as physical gallons.

The proposed volumes represent substantial growth over historic levels. For example:

· The proposed 2016 standard for cellulosic biofuel – those fuels with the lowest GHG emissions profile – is more than 170 million gallons higher than the actual 2014 volumes. That’s six times higher than actual 2014 volumes.

· The proposed 2016 standard for total renewable fuel is nearly 1.5 billion gallons more, or about 9 percent higher, than the actual 2014 volumes.

· The proposed 2016 standard for advanced biofuel is more than 700 million gallons – 27 percent – higher than the actual 2014 volumes.

· Biodiesel standards grow steadily over the next several years, increasing every year to reach 1.9 billion gallons by 2017. That’s 17 percent higher than the actual 2014 volumes.

EPA is proposing to use the tools provided by Congress to adjust the standards below the statutory targets, but the steadily increasing volumes in the proposal indicate that biofuels remain an important part of the nation’s overall strategy to enhance energy security and address climate change.
The Clean Air Act requires EPA to set annual RFS volume requirements for four categories of biofuels. By displacing fossil fuels, biofuels help reduce greenhouse gas emissions and help strengthen energy security.

EPA will hold a public hearing on this proposal on June 25, 2015, in Kansas City, Kansas. The period for public input and comment will be open until July 27. EPA will finalize the volume standards in this rule by Nov. 30.

For more information on today’s announcement, go to www.epa.gov/otaq/fuels/renewablefuels/regulations.htm READ MORE and MORE and MORE (Biofuels Digest) and MORE / MORE (Environmental Protection Agency) and MORE (Algae Biomass Organization) and MORE (Biomass Magazine) and MORE (Washington Post) and MORE (Bloomberg)

Excerpt from EPA blog: Indeed, the proposed 2016 numbers will incentivize real growth in the market.

The proposed 2016 standard for cellulosic biofuel – those fuels with the lowest GHG emissions profile – is more than 170 million gallons higher than the actual 2014 volumes. That’s six times higher than actual 2014 volumes.
The proposed 2016 standard for total renewable fuel is nearly 1.5 billion gallons more, or about 9 percent higher, than the actual 2014 volumes.
The proposed 2016 standard for advanced biofuel is more than 700 million gallons27 percent – higher than the actual 2014 volumes.
Biodiesel standards grow steadily over the next several years, increasing every year to reach 1.9 billion gallons by 2017. That’s 17 percent higher than the actual 2014 volumes. READ MORE

Excerpt from Biomass Magazine: Brent Erickson, executive vice president of the Biotechnology Industry Organization’s Industrial & Environmental Section, said the proposal will continue to chill investment for advanced biofuels. “EPA’s delays in the RFS rulemaking have already done significant damage to the advanced biofuel industry,” he said.

“The agency’s 2013 proposal to constrict market access for renewable fuels and its delays in approving pathways for advanced biofuels have chilled investment in the sector,” Erickson said. “We estimate EPA is responsible for a $13.7 billion shortfall in necessary investments for advanced biofuel capacity. EPA shouldn’t scratch its head and wonder why the cellulosic biofuel industry is having increasing difficulty attract capital to build additional new capacity.”

“Additionally, the previous proposed 2014 rule and the delay in finalizing it caused a measureable increase in greenhouse gas emissions,” Erickson said. “While transportation fuel increased from 2013 through 2014, oil companies used proportionally less renewable fuel. The result was 21 million metric tons of added CO2 emissions during the past year – equal to putting 4.4 million more cars on the road.”

“Today’s overdue re-proposal doesn’t do enough to get the RFS program back on track,” Erickson continued. “The RFS was designed to provide a market floor for biofuels. Instead, EPA has once again proposed to help the oil industry build a regulatory wall to keep advanced biofuels out of the U.S. market.” READ MORE