Wednesday, August 07, 2013

EPA finalizes Renewable Fuel Standard percentages in four categories; backs off some goals

The Environmental Protection Agency's "final 2013 overall volumes and standards require 16.55 billion gallons of renewable fuels to be blended into the U.S. fuel supply (a 9.74 percent blend)," Derrick Cain reports for Agri-Pulse, a Washington newsletter. "The rule reduces the targets of cellulosic biofuels and advanced biofuel based on current production, gives refineries and importers four more months to comply with the 2013 targets, and signals that the EPA will reduce targets in 2014 to address 'blend wall' concerns."

"The EPA standard specifically requires: biomass-based diesel (1.28 billion gallons; 1.13 percent), advanced biofuels (2.75 billion gallons; 1.62 percent), and cellulosic biofuels (6 million gallons; 0.004 percent)," Cain reports. "The 6 million mark for cellulosic biofuels was reduced from a proposed 14 million level among concerns there would not be enough of the fuel to meet that level."

The announcement has drawn mostly rave reviews. Sen. Tom Carper (D-Del.), chairman of the Senate Subcommittee on Clean Air and Nuclear Safety, told Cain, “I have long supported the goals of Renewable Fuel Standard, incentivizing environmentally-friendly options that move our country away from foreign fossil fuels, while safeguarding our energy security. I also strongly believe that as we make investments in renewable fuels to lower our dependency on foreign oil, we must ensure that we don’t have an adverse impact on the environment or our economy.”

Tom Buis, chief executive officer of ethanol producer Growth Energy, told Cain, “We look forward to closely reviewing the final rule and we strongly support increasing levels of renewable fuel into our nation’s fuel supply. The RFS continues to be a resounding success, helping create jobs in America that cannot be outsourced, revitalizing rural economies across the country in addition to reducing our dependence on foreign oil and improving our environment, all while providing consumers with a choice and savings at the pump.”

Danny Murphy, president of the American Soybean Association, said the updated volumes for 2013 will allow “promising growth” of the biodiesel industry, Cain writes. Anne Steckel, vice president of federal affairs for the National Biodiesel Board, said the EPA’s decision will help consumers, create jobs, and reduce emissions. She told Cain, "With nearly 1.1 billion gallons of production last year, the biodiesel industry produced enough fuel to fill 87 percent of the total advanced requirement in 2012."

There is some opposition from groups, such as the Feed Food Fairness Coalition. The group said, “This is just another example of the inflexibility of the RFS mandate, which is imposing numerous unintended consequences, not the least of which is higher food prices for small businesses in the food chain. “The Feed Food Fairness coalition will continue to advocate for a complete repeal of the RFS to put an end to this failed experiment which has helped no one except a small group of special interests, while needlessly harming livestock farmers, food chain businesses and consumers.” (Read more) To read the full report click here.

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