EPA Finalizes Increases in Renewable Fuel Levels
The EPA on Monday released final volume requirements under the Renewable Fuel Standard (RFS) program for 2014 through 2016. It also released final volume requirements for biomass-based diesel for 2014 to 2017.
This rule finalizes higher volumes of renewable fuel than the levels EPA proposed in June.
The final 2016 standard for cellulosic biofuel, which has the lowest carbon emissions, is nearly 200 million gallons—or seven times more—than the market produced in 2014.
The final 2016 standard for advanced biofuel is nearly 1 billion gallons, or 35% higher than the actual 2014 volumes; the total renewable standard requires growth from 2014 to 2016 of more than 1.8 billion gallons of biofuel, which is 11% higher than 2014 actual volumes.
Biodiesel standards grow steadily over the next several years, increasing every year to reach 2 billion gallons by 2017.
| 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|
| Cellulosic biofuel (million gallons) | 33 | 123 | 230 | n/a |
| Biomass-based diesel (billion gallons) | 1.63 | 1.73 | 1.90 | 2.00 |
| Advanced biofuel (billion gallons) | 2.67 | 2.88 | 3.61 | n/a |
| Renewable fuel (billion gallons) | 16.28 | 16.93 | 18.11 | n/a |
| (Units for all volumes are ethanol-equivalent, except for biomass-based diesel volumes which are expressed as physical gallons.) | ||||
| 2014 | 2015 | 2016 | |
|---|---|---|---|
| Cellulosic biofuel | 0.019% | 0.069% | 0.128% |
| Biomass-based diesel | 1.41% | 1.49% | 1.59% |
| Advanced biofuel | 1.51% | 1.62% | 2.01% |
| Renewable fuel | 9.19% | 9.52% | 10.10% |
Chip Bowling, President of the National Corn Growers Association, responded to the announcement:
“While we are pleased to see the EPA take a step forward and revise its original proposal, the fact remains that any reduction in the statutory amount will have a negative impact on our economy, our energy security, and the environment.”
He said the U.S. should be strengthening its commitment to renewable fuels and not back down.
Wade Cowan, President of the American Soybean Association, said that while the volumes in the final rule do not fully capitalize on the capacity and growth potential of U.S. biodiesel, it does provide a step in the right direction.
“As an industry we have always advocated for RFS volumes that are modest and achievable,” Cowan said, “and the biodiesel industry has met or exceeded the targets each and every year that the program has been in place.”
Soybean oil remains the largest source of oil for biodiesel production.