On April 22, 2016, EPA published Amendments Related to: Tier 3 Motor Vehicle Emission and Fuel Standards as a final rule in the Federal Register. This final action amends the RFS Quality Assurance Program (QAP) rule to exempt downstream end users of renewable fuels from product transfer document (PTD) requirements. EPA originally added the PTD requirements to the QAP rule, requiring parties taking ownership of renewable fuel to use the fuel for transportation -- parties would incur a renewable...
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On April 15, 2016, the U.S. Environmental Protection Agency (EPA) sent its newly proposed Renewable Fuel Standard (RFS) volumes for 2017 and 2018 to the U.S. Office of Management and Budget (OMB) for review. Under the Clean Air Act (CAA), EPA must set standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel by November 30 of the year before the standard is set for, and 14 months before the year that the biodiesel standard is set for. EPA's issuance...
On December 14, 2015, the U.S. Environmental Protection Agency (EPA) published the Renewable Fuel Standard (RFS) Program: Standards for 2014, 2015, and 2016 and Biomass-Based Diesel Volume for 2017 in the Federal Register. The final rule will become effective on February 12, 2016, and establishes annual percentage standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel for motor vehicle gasoline and diesel produced or imported in the years 2014, 2015,...
November 13, 2015
White House OMB Reviews Final Changes To Standards For Renewable Fuels
On October 30, 2015, the U.S. Environmental Protection Agency (EPA) submitted a draft final rule for review to the White House Office of Management and Budget (OMB) that would reduce the amount of biofuels that must be blended into the fuel supply in 2014, 2015, and 2016 from statutory requirements, as reported by Bloomberg BNA's Daily Environment Report on November 3, 2015. Details of the proposal are not public. EPA is working toward a November 30, 2015, deadline established in a...
October 22, 2015
Ethanol Mandates under RFS and EPA’s Lifecycle GHG Analysis
In a settlement with the American Fuel & Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API), the U.S. Environmental Protection Agency (EPA) agreed to set renewable fuel obligations for calendar years 2014 and 2015 by November 30, 2015, under the Renewable Fuel Standard (RFS). The RFS requires annual increases in the amount of renewable fuel that must be blended into the total volume of gasoline refined and consumed in the U.S. A current TV ad featured...
October 20, 2015
EPA’s Office of Inspector General Orders New Ethanol Emissions Study
In a memorandum dated October 15, 2015, the U.S. Environmental Protection Agency’s (EPA) Office of Inspector General (OIG) stated that it plans to begin preliminary research on the lifecycle impacts of EPA’s renewable fuel standard (RFS). The stated objectives from the memorandum are to determine whether EPA: (1) complied with the reporting requirements of laws authorizing the RFS; and (2) updated the lifecycle analysis supporting the RFS with findings from the...
September 25, 2015
Biofuel CEOs Send Letter To President Obama Over EPA RFS Proposal
On September 16, 2015, 23 biofuel executives sent a letter to President Obama regarding the U.S. Environmental Protection Agency's (EPA) Renewable Fuel Standard (RFS) volume requirement proposal. The revised RFS allows companies to challenge the distribution requirement of renewable fuel, potentially resulting in RFS requirements being waived on a year-to-year basis. The letter outlines the concern that the proposed RFS disincentivizes oil companies to blend renewable fuels into gasoline,...
September 18, 2015
Gina McCarthy Speaks About The Future Of The RFS
On September 15, 2015, the head of the EPA, Gina McCarthy, spoke at the Growth Energy Advocacy Conference about the need of the upcoming RFS rule to encourage long-term investment in advanced biofuels to successfully grow capacity. McCarthy went on to say that the November 30, 2015, deadline is a priority for her to have the RFS rule finished to improve investment conditions for biofuels. She considers the RFS to be one of the best tools that the Administration has in the long-term fight against...
On August 11, 2015, the U.S. Energy Information Administration (EIA) released the Short Term Energy Outlook (STEO) report. The report outlined expectations for regular gasoline to average a retail price of $2.41 for all of 2015, with prices for the fourth quarter of 2015 averaging $2.11. Consistently low gasoline prices, in addition to the proposed Renewable Fuel Standard volumes that were announced on May 29, 2015, have resulted in the EIA forecasting that ethanol consumption will average about...
On June 4, 2015, EPA published a notice in the Federal Register for a Public Hearing on the 2014, 2015, and 2016 Standards for the Renewable Fuel Standard (RFS) program. As part of the hearing, EPA will consider amendments to the annual percentage standards for cellulosic biofuel, biodiesel, and advanced biofuels that are added to fuel produced in the U.S. or imported for 2014, 2015, and 2016, and will consider amendments to the proposed biodiesel volume for 2017. The hearing will be held on...