(U.S. Environmental Protection Agency) On December 1, 2022, EPA announces a proposed rule to establish required Renewable Fuel Standard (RFS) volumes and percentage standards for 2023, 2024, and 2025, as well as to propose a series of important modifications to strengthen and expand the RFS program. The proposed volume targets and percentage standards are listed below.
2023 | 2024 | 2025 | |
---|---|---|---|
Cellulosic biofuel | 0.72 | 1.42 | 2.13 |
Biomass-based diesel | 2.82 | 2.89 | 2.95 |
Advanced biofuel | 5.82 | 6.62 | 7.43 |
Renewable fuel | 20.82 | 21.87 | 22.68 |
Supplemental standard | 0.25 | n/a | n/a |
a One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel.
2023 | 2024 | 2025 | |
---|---|---|---|
Cellulosic biofuel | 0.41% | 0.82% | 1.23% |
Biomass-based diesel | 2.54% | 2.60% | 2.67% |
Advanced biofuel | 3.33% | 3.80% | 4.28% |
Renewable fuel | 11.92% | 12.55% | 13.05% |
Supplemental standard | 0.14% | n/a | n/a |
Additionally, the proposed rule includes regulatory changes to prescribe how RINs from renewable electricity (eRINs) would be implemented and managed under the RFS program. This update to the RFS program would allow parties to register with EPA and generate eRINs produced from qualifying renewable biomass used as transportation fuel.
Minor regulatory changes including updates to third-party oversight review and other changes are also included in the proposed rule.
Public Hearing
EPA will hold a virtual public hearing on January 10, 2023, for the proposed rule. An additional session will be held on January 11, 2023, if necessary, to accommodate the number of testifiers that sign-up to testify. This hearing will be held virtually-only using Zoom (i.e., there will be no in-person hearing).
In order to attend the virtual public hearing, all attendees (including those who will not be presenting verbal testimony) must register by sending an email to RFS-Hearing@epa.gov. A separate registration form must be submitted for each person attending the hearing. Please register no later than January 3, 2023.
In order to allow everyone to be heard, EPA is limiting verbal testimony to three minutes per person. Speakers will not be able to share graphics via the virtual public hearing. Speakers will be able to request an approximate speaking time as part of the registration process, with preferences considered on a first-come, first-served basis.
If you have further questions or special needs, please contact Nick Parsons at RFS-Hearing@epa.gov.
Public Hearing Notice (pdf) (89.83 KB, 2022-12-01) (pre-publication, signed November 30, 2022)
Additional Resources
- Proposed Rule (pdf) (2.78 MB, 2022-12-01) (pre-publication, signed November 30, 2022)
- Draft Regulatory Impact Analysis (pdf) (13.97 MB, 2022-12-01) (November 2022, EPA-420-D-22-003)
EPA Takes Next Steps in Renewable Fuel Standard Program for 2023-25 -- Proposal Seeks Public Input on Program’s Role in U.S. Energy Security, Economy and Environment (Environmental Protection Agency)
RFA: Proposal for 2023-2025 RFS Volumes Creates Pathway for Sustainable Growth (Renewable Fuels Association)
EPA advances biomass for EVs, pushes increase in biofuels (E&E News)
Clean Fuels Says RFS Proposal for 2023 and Beyond Woefully Underestimates Biomass-based Diesel (Clean Fuels Alliance America)
MN BIO-FUELS STATEMENT ON EPA’S PROPOSED RFS VOLUMES FOR 2023, 2024 AND 2025 (Minnesota Bio-Fuels Association)
EVs injected into biofuel policy fight (Politico's Power Switch)
EPA seeks to mandate more use of ethanol and other biofuels (Associated Press)
EPA proposes higher biofuel blending volumes (Farm Progress)
U.S. EPA proposes revamp of biofuel program to include electric vehicles (Reuters)
US EPA proposes higher biofuel blending mandates for next three years (S&P Global)
Energy & Environment — EPA updates fuel blend proposal (The Hill)
RFA CEO Discusses EPA Proposal (AgNewsWire; includes AUDIO)
EPA aims to grow biofuels usage in latest RFS programme (Biofuels International)
House Agriculture Committee Chairman David Scott Statement on EPA Announcement on RVOs (U.S. House of Representatives Agriculture Committee)
WITH EYE ON SECOND-GENERATION BIOFUELS, EPA PROPOSES 10% INCREASE IN RFS (Successful Farming)
EPA releases Renewable Fuels Standards for 2023 through 2025 (RFD TV)
EPA announces new biofuel blending mandate proposal (The Hill)
EPA proposes adding power for electric vehicles to ethanol, biodiesel mandate (Des Moines Register)
EPA’s RFS ‘Set’ Seeks Steady Growth Of Biofuel Volumes For Three Years (Inside EPA)
Geoff Cooper on RFS: This is really good for the ethanol industry (RFD TV; includes VIDEO)
EPA proposes RFS volumes for 2023-2025 with modest boost for conventional ethanol (DRG News; includes AUDIO)
Senator Baldwin hails EPA for building upon clean energy (WEAU)
Kansas Corn welcomes EPA's ethanol volume announcement (Morning Ag Clips)
EPA aims to grow biofuels usage in latest RFS programme (Biofuels International)
EPA Renewable Fuel Standard proposed ‘set’ rule raises mixed reactions in agriculture (Solutions from the Land)
Grassley comments on EPA’s proposed ethanol and advanced biofuels blending requirements (Iowa AgriBusiness Radio Network)
EPA proposes raising biofuel quotas in fossil fuels, electric vehicles (The Lebanon Reporter)
Feenstra sees pluses, minuses in EPA’s RFS recs (Radio Iowa)
ERNST SEES POSITIVES AND NEGATIVES OF RFS PROPOSAL (Brownfiel Ag News)
U.S. biofuels proposal would lift near-term greenhouse gas emissions, EPA says (Reuters)
Growth Energy Flags Twisted Facts from Reuters, Again (Growth Energy)
Unpacking EPA’s e-RIN Proposal (BioCycle Magazine)
EPA Wants to Hear Your Thoughts on the Proposed RFS Levels (AgWeb)
Clean Fuels Expresses Frustration with EPA’s RFS Proposal for 2023 - 2025 (Clean Fuels America Alliance)
Biofuels Groups Provide Comments on RFS Proposal (Energy.AgWired.com)
2. BIOFUEL GROUPS, NCGA MOSTLY SHOW SUPPORT FOR EPA PROPOSAL (Successful Farming)
Biofuel groups offer testimony on EPA’s proposed RFS ‘set’ rule (Ethanol Producer Magazine)
New RFS Battle Lines Emerge In Fights Over Proposed ‘Set’ Rule’s ‘eRINs’ (Inside EPA)
EPA told to hold off on EV proposal -- At a public hearing, the agency faced criticism on its efforts to tie electric vehicles to the renewable fuel standard. (Politico Pro/E&E News Greenwire)
The New RVOs, Not as Clear Cut as it Might Appear (Biofuels Digest/Missouri Corn Growers Association)
Major US agriculture groups testify on proposed 2023-2025 RVOs (DRG News)
BATTLE RENEWED OVER RFS: (Washington Examiner)
FLASH REPORT: EPA Issues Proposed RFS Standards for 2023-2025 plus Requirements for eRINs (Stillwater Associates)
State Officials Seek EPA Vehicle Rules Stronger Than Biden’s EV Goals (Inside EPA)
MN BIO-FUELS SUBMITS COMMENTS TO EPA ON PROPOSED RFS VOLUMES FOR 2023, 2024 AND 2025 (Minnesota Bio-Fuels Association)
RFA Comments: Proposed 2023-2025 Volumes Create ‘Firm Foundation’ for RFS (Renewable Fuels Association)
ACE COMMENTS URGE EPA TO MAXIMIZE ON OPPORTUNITY TO INCREASE RENEWABLE FUEL VOLUMES FOR 2023-2025 (American Coalition for Ethanol)
Watchdog Tells EPA: Renewable Fuel Standard Should Not Bolster Dirty Energy -- Agency’s proposed rule would incentivize ethanol and factory farm gas production (Food & Water Watch)
Ethanol trade groups submit comments on EPA’s proposed RVOs (Ethanol Producer Magazine)
Biofuels Groups Submit Final RFS Proposal Comments (Energy.AgWired.com)
Illinois producers ‘very supportive’ of proposed higher federal requirements for biofuels (Cities 929)
American Soybean Association tells EPA to affirm its commitment to a strong RFS (Biobased Diesel Daily)
Excerpt from Ethanol Producer Magazine: The Iowa Biodiesel Board also urged the EPA to reconsider its proposed targets for biomass-based diesel. “The proposed volumes for biomass-based diesel and overall advanced biofuel volumes through 2025 are not consistent with the industry’s projected growth, or with the Administration’s own goals to reduce greenhouse gas emissions,” said Grant Kimberley, executive director of the IBB. “Sending the right market signals through increased volumes, in contrast to what EPA currently proposes, would boost our state’s rural economy and Iowa soybean farmers, who rely on strong commodity demand to support their livelihoods and feed the world.” READ MORE
Excerpt from Politico Pro/E&E News Greenwire: EPA's proposal to wrap electric vehicles into the nation's renewable fuel standard ran into headwinds from fuel industry groups at a public hearing Tuesday.
Representatives for both the petroleum and biofuel industries called the proposal — which would encourage the use of biofuel to generate electricity for use in electric vehicles — overly complex, and some pressed the agency to handle the issue separately from the annual biofuel regulations it's currently contemplating.
At issue is EPA's proposal to allow EV manufacturers to generate renewable fuel credits for the electricity that's generated from biogas — such as from manure digesters on farms — and used to power their vehicles. The system would for the first time make EVs part of a renewable fuel program that was created mainly to support liquid fuels derived from crops (Greenwire, Dec. 1, 2022).
Renewable fuel credits, called renewable identification numbers, are like a form of currency that keeps the RFS program running. In the ethanol industry, refineries buy RINs, for instance, as an alternative to blending ethanol into transportation fuel. But the eRIN system would work differently, which has raised objections from traditional RFS participants who say it's too favorable to nonliquid-fueled vehicles. READ MORE
Excerpt from Biofuels Digest/Missouri Corn Growers Association: The perplexing Regulatory Impact Analysis
And worse yet is the perplexing Regulatory Impact Analysis (RIA) that accompanied the rule. This analysis claims the RFS, specifically the road transport category, increases every pollutant from NOx to evaporative emissions—even carbon monoxide!
Could that be used in future years to backtrack on RFS volumes and further erode demand? Quite possibly, certainly ethanol opponents could point to that and challenge any use of ethanol, never mind an increase. How could this be? The answer is the MOVES model EPA uses that penalizes ethanol and must be corrected.
So we have our work cut out for us, even if the current proposed RVOs are finalized. The Next Generation Fuels Act, the control of toxics in gasoline, the correction of the MOVES Model, and demanding EPA correct this flawed impact analysis are on the to-do list. READ MORE
Excerpt from Renewable Fuels Association: Today’s proposal from the U.S. Environmental Protection Agency for 2023-2025 Renewable Fuel Standard volumes creates a clear pathway for sustainable growth in the production and use of low-carbon renewable fuels, according to the Renewable Fuels Association.
“EPA’s proposed rule solidifies a role for the Renewable Fuel Standard in future efforts to reduce carbon emissions and enhance our nation’s energy security,” said RFA President and CEO Geoff Cooper. “Once finalized, this rule will significantly accelerate growth and investment in the low-carbon renewable fuels that will help decarbonize our nation’s transportation sector, extend domestic fuel supplies, and bolster the rural economy. By including three years’ worth of RFS volumes, EPA’s proposed rule will finally provide certainty and stability for the entire supply chain. EPA Administrator Michael Regan put the RFS program back on track with the 2022 volume obligations, and today’s proposal builds upon that solid foundation. RFA thanks Administrator Regan and the Biden administration for continuing to make good on their commitment to grow the marketplace for lower-carbon, lower-cost renewable fuels.”
...
Cooper noted that these renewable volume obligations also would stimulate rapid growth in E15 and E85, making it that much more important that a resolution is found for allowing year-round sales of E15, especially with new legislation filed this week with the support of RFA, the American Petroleum Institute and others. READ MORE
Excerpt from E&E News: The proposal also includes a long-anticipated provision allowing for electricity generated through biomass to qualify for renewable fuel credits — called eRINs — if it’s used to power electric vehicles. That provision would become effective on Jan. 1, 2024, allowing time for regulated parties to register, EPA said.
Including the eRINs makes the projections for cellulosic ethanol particularly uncertain, the agency said, since those are feedstocks that would be used for the purpose.
“While the production of liquid cellulosic biofuel has remained limited in recent years,” EPA said, “the inclusion of eRINs into the program affords another opportunity for dramatic growth of cellulosic biofuel.”
The eRINs could also complicate matters for the biogas industry, exapanding that commodity’s use for electricity while taking away incentives to use biogas for vehicles that run on liquefied natural gas or compressed natural gas. READ MORE
Excerpt from Clean Fuels Alliance America: Proposed volumes are below existing production, undercutting investments in new capacity -- Today, Clean Fuels Alliance America criticized the Environmental Protection Agency’s proposed Renewable Fuel Standard volumes for 2023 and beyond for undercutting investments in biodiesel and renewable diesel capacity. The minor increases for biomass-based diesel volumes in 2023, 2024 and 2025 are below the industry’s existing production and ignore the clean fuels industry’s significant investments in new capacity. The volumes provide no additional space for sustainable aviation fuel and short-circuit the nation’s goals to cut carbon emissions.
“EPA’s overdue set proposal significantly undercounts existing biomass-based diesel production and fails to provide growth for investments the industry has already made in additional capacity, including for sustainable aviation fuel. The volumes EPA is proposing for 2023, 2024 and 2025 ignore the more than 3 billion gallons currently in the market and fail to take into account the planned growth of the clean fuels sector,” said Clean Fuels Vice President of Federal Affairs Kurt Kovarik.
EPA’s data from the RFS program show that the U.S. market reached 3.1 billion gallons of biomass-based diesel in 2021 and already 2.9 billion gallons through October 2022, with two months still to go. The Energy Information Administration’s Short Term Energy Outlook, which informs EPA’s decisions on annual RFS volumes, currently projects a 500-million-gallon increase in biodiesel and renewable diesel consumption for 2023. EIA has also projected 2.4. billion gallons of added renewable diesel capacity coming online by 2024 and calculated another 1.8 billion gallons in announced planned capacity.
“The biodiesel and renewable diesel industry has already made considerable investments in production capacity and distribution infrastructure that will come online by 2025. The soybean and canola industries have invested more than $4 billion to bring additional feedstock capacity online over the next several years,” Kovarik continued. “EPA’s proposed biomass-based diesel volumes undercut those investments.”
EPA’s proposed biomass-based diesel volumes for 2023 and beyond:
(billion gallons) | 2023 | Growth from 2022 | 2024 | Growth from 2023 | 2025 | Growth from 2024 |
Biomass-based diesel | 2.82 | 0.06 | 2.89 | 0.07 | 2.95 | 0.06 |
Clean Fuels appreciates EPA’s final rule creating a pathway to produce renewable diesel, jet fuel, heating oil, naphtha, and liquefied petroleum gas (LPG) from canola oil, which will generate even more biomass-based diesel and advanced biofuel gallons for the program. The approval enables a more diverse feedstock supply for the clean fuels industry. But the potential growth is not accounted for in the proposed volumes.
Clean Fuels supports EPA’s proposed alternative compliance method to document points of origin for used cooking oil supplies under separated food waste plans. This method will allow small producers to continue using a low-carbon feedstock and rely on documentation from used cooking oil aggregators.
“The clean fuels industry is meeting and exceeding all of the statutory factors that EPA is supposed to consider when setting volumes,” Kovarik added. “Our industry’s growth can generate new jobs and increase economic opportunities for growers, fuel producers and other economic sectors. Increasing production of clean fuels improves U.S. energy security, lowers diesel fuel prices, and generates carbon and emission reductions today that are necessary to meet future national environmental goals.”
Recently, Clean Fuels published a new study, “Economic Impact of Biodiesel on the U.S. Economy 2022,” conducted by LMC International. The study finds that based on 2021 market data, the biodiesel and renewable diesel industry produced 3.1 billion gallons and generated $23.2 billion in economic activity, while supporting 75,200 jobs paying $3.6 billion in annual wages in the United States. For every 100-million-gallon increase in domestic clean fuel production, the direct, indirect and induced economic activity increases by $1.09 billion and U.S. jobs grow by 3,185. The largest economic and employment benefits occurred in the farming, oilseed processing, and fuel production sectors.
The study further calculates that producing 6 billion gallons of clean fuels in the United States would increase overall economic activity from the current $23.2 billion to $61.6 billion and support 187,003 jobs earning $8.8 billion in wages. The construction of additional capacity would increase economic activity by an added $4.3 billion and support an additional 144,500 related temporary jobs earning $5.8 billion in wages.
When setting RFS volumes, EPA must consider the infrastructure and rate of future commercial production for advanced biofuels like biodiesel, renewable diesel and SAF. According to the Energy Information Administration, biodiesel and renewable diesel capacity is already 750 million gallons higher in 2022 compared 2021. EIA’s Short Term Energy Outlook projects availability of 3.9 billion gallons of biodiesel and renewable diesel in 2023. Further, USDA’s successful Higher Blends Infrastructure Incentive Program has already supported infrastructure investments for an additional 1 billion gallons of biodiesel. Congress has made a strong commitment to continue infrastructure grants through 2030. READ MORE
Excerpt from Reuters: Geoff Cooper, the head of the Renewable Fuels Association biofuel trade group, criticized the EPA projections.
"EPA’s analysis is flawed because it assumes cropland expansion will be necessary to support ethanol production volumes in 2023-2025," he said.
"This purported ‘land use change’ assumed by EPA results in grossly exaggerated GHG emissions estimates for 2023-2025."
In the EPA's analysis, the ethanol portion of the volumes mandates could yield a net impact on emissions of anywhere between negative 99 million metric tons to positive 13.8 million metric tons over 30 years.
A study published this year in the Proceedings of the National Academy of Sciences found that ethanol is likely worse for the climate over its full lifecycle than straight gasoline because of the carbon lost during corn planting.
The biofuel industry and the U.S. Department of Energy have rejected that research, citing other studies showing ethanol’s lifecycle emissions far lower than gasoline. READ MORE
Excerpt from Growth Energy: Growth Energy CEO Emily Skor released the following statement in response to a highly misleading article from Reuters about ethanol’s climate benefits. The latest story recycles the same “flawed interpretation of data” the outlet admitted to publishing this September before withdrawing the report.
“It’s astonishing that the editors at Reuters would allow this to slip by after the same reporter revealed the same shocking bias just a few short months ago,” said Emily Skor, CEO of Growth Energy. “The author misrepresented Environmental Protection Agency (EPA) data to suggest that we should only focus on immediate emissions from producing biofuel, rather than emissions reductions from using biofuels to replace petroleum over time. By that logic, we’d never build windmills or solar panels either.’
“Glaringly, the reporter also misleadingly touts the most outdated elements of EPA’s review – those based on inflated land use projections that the rest of the scientific community replaced with real-world data years ago. In fact, the U.S. Department of Energy (DOE) responded to similar claims in a letter to Growth Energy, acknowledging the scientific consensus – backed by the nation’s best climate modelers – shows that U.S. ethanol slashes greenhouse gas emissions by 44 to 52 percent.
“To overcome the world’s climate challenges, we must be guided by the best available science, which shows that biofuels are vital to reaching net zero,” Skor continued. “It’s disappointing that Reuters would sacrifice its journalistic standards to parrot bogus claims we hear from fossil fuel lobbyists.”
To get accurate facts on low-carbon biofuels, visit Growth Energy’s climate solutions page. READ MORE
Excerpt from Minnesota Bio-Fuels Association: To build on that foundation, in the letter, MN Bio-Fuels encouraged the EPA to take several actions when finalizing the proposal including:
- Setting the implied conventional renewable fuel volumes at the aforementioned targets, which would send a strong signal that there will be a buyer for D6 volumes produced for the next three compliance years.
- Continuing the implementation of the 2023 supplemented volume of 250 million gallons would finally bring the EPA into full compliance with the DC Circuit Court of Appeals’ remand of the 2016 RVO rule in Americans for Clean Energy vs EPA.
- Increase D3 cellulosic biofuel volumes by up to 250 million gallons a year from 2023 to 2025 “so that cellulosic biofuels made from corn kernel fiber are given the opportunity to advance in the marketplace.
- Remaining consistent with the holdings of the Tenth Circuite Court's decision in Renewable Fuels Association vs EPA in denying small refinery waivers during the three compliance years.
Finally, Werner said, "...biofuels can do even more to help increase energy security and reduce costs for consumers while providing environmental benefits."
In the letter, MN Bio-Fuels encouraged the EPA to implement the outstanding regulatory action to remove the 1-PSI volatility waiver for gasoline-ethanol blends in Midwest states so that E15 (Unleaded 88) can be sold in the summer of 2023 and adopt the US Department of Energy's Argonne GREET model for lifecycle assessments.
Read MN Bio-Fuels’ full comments to the EPA here. READ MORE
Excerpt from Renewable Fuels Association: RFA’s comments also voiced strong support for EPA’s policy on small refinery exemptions, stating the agency’s approach matches “the spirit and intent of the law,” complies with recent court decisions, and brings much-needed certainty and long-term clarity to the RFS program.
Finally, RFA encouraged EPA to re-evaluate growth opportunities for advanced biofuels such as biomass-based diesel and ensure that its final approach to renewable electricity RINs, or “eRINs”, honors the RFS program’s statutory intent, and is consistent with RIN generation provisions for all other renewable fuel pathways. RFA also asked the agency to revisit some of the problematic conclusions in its Draft Regulatory Impact Analysis. READ MORE
Excerpt from Ethanol Producer Magazine: The American Coalition made clear that what it supported and objected to in the RVO proposal. ACE backs an “effective” conventional biofuel requirement of 15.25 billion gallons for 2023 through 2025; restoring the final 250-million-gallon remedy as a supplemental requirement for 2023; the multi-year nature of the Set rule, because it provides market participants certainty to plan for the future; no Small Refinery Exemptions (SREs) for 2023 through 2025; and updating the EPA’s antiquated greenhouse gas (GHG) model assumptions and methodology in the future.
ACE stated clearly that it objects to the agency suggesting that it may retroactively waive blending levels established by this rulemaking; proposing an “alternative approach” to reduce conventional biofuel blending for 2024 and 2025 and expressing doubt about the ability for higher blends of corn-starch ethanol to play a primary role in helping fulfill the residual or implied conventional biofuel targets of the RFS; and breaking precedent by giving Tesla and other vehicle manufacturers the ability to generate eRINs when all other RINs are generated by the producer of the renewable fuel.
ACE encouraged the EPA to revisit its overly conservative ethanol blending projections evidenced by data from the EIA indicating the concentration of ethanol in U.S. gasoline set a record level of 10.5% during the summer of 2022; ensure any increase to advanced volumes be accompanied by a corresponding increase in total renewable fuel in the final rule; adopt GREET for its lifecycle modeling, consistent with what Congress required of Treasury in the Inflation Reduction Act 45Z clean fuel production tax credit; require stronger traceability and verification standards to avoid fraud and abuse of eRINs; prioritize approving corn kernel fiber pathway registrations in 2023; and take swift action on a plan by several governors to enable year-round access to E15 in their states.
“Ethanol can and should be an even bigger part of the solution to climate change, and we are encouraged by statements from you and USDA Secretary Vilsack that biofuels and agriculture will have a seat at the table as the Biden administration determines how to achieve the ambitious goal of net-zero carbon emissions in the U.S. by midcentury,” Jennings wrote. “We are particularly encouraged by new funding provided to USDA through the IRA to scale the deployment of climate-smart farming practices and demonstrate the link those practices have on reducing GHG emissions from products such as biofuels.”
In the comments, Jennings shares details on ACE’s USDA-funded project, in partnership with lop land-grant scientists and Sandia National Lab, to document and validate the benefits of climate smart practices on the carbon intensity of corn ethanol. “EPA’s proposal rightfully notes climate-smart agriculture practices can measurably reduce corn ethanol’s carbon intensity,” Jennings adds. READ MORE
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