06 July, 2017
The RFS statue envisions blending 26 billion gallons of biofuel into the fuel supply in 2018.
The proposal would require refiners use 19.24 billion gallons of renewable fuels in 2018, slightly down from the 19.28 billion gallons required in 2017 and about 25 percent lower than the target Congress outlined in 2007.
"We are proposing new volumes consistent with market realities focused on actual production and consumer demand while being cognizant of the challenges that exist in bringing advanced biofuels into the marketplace", EPA Administrator Scott Pruitt said in a statement.
The EPA lowered the amount of biofuel that must be used in the USA next year.
The agency also noted the proposed biomass-based diesel volume exceeds the statutory minimum "and the proposed volumes of total renewable fuel, advanced biofuel, and cellulosic biofuel would achieve the implied statutory volumes for conventional biofuel and non-cellulosic advanced biofuel".
President Donald Trump vowed to help Iowa's ethanol industry, which he described as "under siege", during a June speech in Grand Rapids.
Monte Shaw, executive director of the Iowa Renewable Fuels Association, said the 15 billion figure represents a campaign promise kept.
"Unfortunately, a change in administrations did not change the EPA's underappreciation for the potential of USA biodiesel production", the trade group told the Washington Examiner.
The new regulations will likely also draw criticism from oil industry stakeholders, who have argued that the 15 billion gallon ethanol mandate represents a significant manufacturing challenge. "Keeping biodiesel levels frozen at 2.1 billion falls short of US industry capabilities, even before imports are considered".
On Wednesday, the EPA released its proposed rule to set 2018 renewable volume standards (RVOs) under the RFS, along with the 2019 RVO for biomass-based diesel.
"Studies show that higher ethanol volumes under the RFS would raise fuel costs for consumers and damage auto engines", said API Downstream Group Director Frank Macchiarola.
Cellulosic biofuel targets would fall from 311 million gallons to 238 million next year, according to the EPA proposal.
The American Petroleum Institute has lobbied for a 9.7 percent market cap on ethanol fuel in order to address the blend wall issue. "Today's proposal reaffirms the importance of RFS reform, as it is essential that Americans have access to fuels they want and can safely use in their vehicles". "The release of the proposed RVOs is the first real test of the current administration's pledged support for renewable fuels, and we are encouraged to see the EPA demonstrate President Trump's continued commitment to the Renewable Fuel Standard", said Emily Skor, CEO of Growth Energy. They both said they would continue to promote the industry.
The U.S. government on Wednesday proposed to reduce the volume of biofuel required to be used in gasoline and diesel fuel next year as it signaled the first step toward a potential broader overhaul of its biofuels program.
"Today's proposal shows that EPA understands the RFS shortfalls, and that it's determined to implement a workable and equitable program with the tools at its disposal".
