EPA Disappoints Biofuels Industry Again With Revised Volumes

WASHINGTON, DC – The U.S. Environmental Protection Agency (EPA) announced final rules to establish the cellulosic biofuel, advanced biofuel, and total renewable fuel volumes for 2020 and the biomass-based diesel volume for 2021 under the Renewable Fuel Standard (RFS) program. In a press release, EPA says the notice does not change the proposed volumes for 2020 and 2021. Instead, it proposes and seeks comment on adjustments to the way that annual renewable fuel percentages are calculated. Annual renewable fuel percentage standards are used to calculate the number of gallons each obligated party is required to blend into their fuel or to otherwise obtain renewable identification numbers (RINs) to demonstrate compliance. Biofuel and commodity groups have denounced the effort with one organization (NATSO) saying the plan would provide accounting relief for just a fraction of the gallons that have actually been waived and base that relief on the far smaller number of gallons that the Department of Energy recommended be waived. In 2016, EPA waived 790 million gallons under the small refinery exemption program. In 2017, it waived 1.82 billion gallons, and in 2018 it waived 1.43 billion gallons. The averages is 1.346 billion gallons waived per year over the past three years. To provide the accounting relief that President Trump negotiated in his deal just two weeks ago, EPA would need to ensure that 1.346 billion gallons are added to the 2020 renewable fuel obligations.