All Knowledge & Insights By Date

The U.S. Environmental Protection Agency (EPA) has proposed the volume requirements and associated percentage standards that would apply under the RFS program in calendar years 2014, 2015, and 2016 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel.  We will include a complete analysis of the EPA proposal and its impact in the June 4, 2015, Biobased and Renewable Products Update.

On May 18, 2015, the American Council On Renewable Energy (ACORE) issued a white paper arguing that "Co-location Requirements under the RFS Impede Advanced Biofuels Development." The paper was sent to EPA. It requests that EPA clarify its definition of feedstock material under the federal Renewable Fuel Standard (RFS) so that biofuels producers that pre-process their feedstocks away from final refineries are no longer prohibited from generating renewable identification numbers (RIN)...

The White House is reviewing EPA's proposed rules to set the 2014, 2015, and 2016 Renewable Fuel Standard (RFS) requirements. The proposals are not currently publicly available, but EPA has committed to propose them by June 1, 2015, and to promulgate the 2014 and 2015 rules by November 30, 2015. EPA is required by law to issue the following year's RFS requirements by November 30 of the previous year. The interagency review of the RFS rule is occurring amid complaints that delays in...

(BIO) released a new white paper on "Estimating Chilled Investment for Advanced Biofuels Due to RFS Uncertainty," along with an accompanying press release. BIO examined the impact of EPA's recent inability in administering the federal Renewable Fuel Standard (RFS) on investment in advanced and cellulosic biofuels. It has found that EPA's delay in issuing the final 2013 and 2014 RFS rules, among other delays in RFS administration, is responsible for most of the "$13.7 billion shortfall in...

On April 23, 2015, a bi-partisan group of 37 Senators led by Chuck Grassley (R-IA), Amy Klobuchar (D-MN), Dick Durbin (D-IL), John Thune (R-SD), Al Franken (D-MN), and Mark Kirk (R-IL) sent a letter to U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy urging a strong final 2014 Renewable Fuel Standard (RFS). The full list of 37 co-signors and text of the letter is available on Senator Grassley's website. The Senators urge EPA to reconsider its proposed 2014 renewable...

As referenced in last week's Biobased and Renewable Products Update, EPA published a Proposed Consent Decree along with a request for comment in response to the Clean Air Act (CAA) lawsuit filed by the American Fuel & Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API). The decree will establish deadlines for EPA to propose and issue in final the 2015 RFS. Comments are being accepted until May 20, 2015.

On April 10, 2015, the U.S. Environmental Protection Agency (EPA) lodged with the U.S. District Court for the District of Columbia a proposed consent decree to resolve litigation challenging the delay in issuing Renewable Fuel Standards (RFS) for 2014 and 2015 brought by the American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM) against EPA. The consent decree would establish EPA's schedule for issuing a RFS for 2014 and 2015. In its filing, EPA stated that...

On March 25, 2015, EPA announced the direct final rule, Regulation of Fuels and Fuel Additives: Cellulosic Waiver Credit Price and Minor Amendments to Renewable Fuel Standard Regulations, that would result in cellulosic waiver credit prices being posted on the EPA website rather than as a result of the rulemaking process. This would allow the credit prices to be announced as soon as the needed data for the wholesale price of gasoline is available, which would provide more certainty to the...

On March 30, 2015, the National Biodiesel Board (NBB) submitted a petition to EPA seeking reconsideration and a request for stay of EPA's approval of the Argentinian Camara Argentina de Biocombustibles (CARBIO) Alternative Biomass Tracking Program. According to the NBB press release, EPA failed to provide an opportunity for public comment on the EPA decision and a lack of transparency as to how the Argentinian biodiesel producers will demonstrate compliance with the Renewable Fuel Standard...

On March 18, 2015, Senator Ted Cruz (R-TX) introduced S. 791, "The American Energy Renaissance Act of 2015." Representative Jim Bridenstine (R-OK) introduced companion legislation, H.R. 1487. The legislation would phase out the Renewable Fuel Standard (RFS), approve the Keystone XL pipeline, open Alaska's Arctic National Wildlife Refuge for oil and gas exploration, and stop EPA from regulating GHG emissions. Under the bill, the RFS would start to be phased out in 2016 with a 20 percent reduction...

On March 7, 2015, the 2015 Iowa Ag Summit brought together several Republican Presidential hopefuls to discuss agricultural issues, including the Renewable Fuel Standard (RFS), in the United States. The potential candidates present at the summit included former Governor Jeb Bush (R-FL), Governor Scott Walker (R-WI), Senator Ted Cruz (R-TX), Senator Lindsey Graham (R-SC), former Governor George Pataki (R-NY), former Governor Mike Huckabee (R-AR), former Senator Rick Santorum (R-PA), and former...

On February 9, 2015, a bi-partisan group of 32 Senators led by Senators Heidi Heitkamp (D-ND), Roy Blunt (R-MO), Patty Murray (D-WA), and Chuck Grassley (R-IA) sent a letter to U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy regarding 2014 and future biodiesel volume requirements under the federal Renewable Fuel Standard (RFS). In their letter, the Senators urge EPA to get the biodiesel renewable volume requirements (RVOs) under the RFS back on schedule. To this end, the...

A bipartisan House coalition introduced the RFS Reform Act on February 4, 2015. The coalition, consisting of Representatives Bob Goodlatte (R-VA), Jim Costa (D-CA), Steve Womack (R-AR), and Peter Welch (D-VT), failed to achieve passage of a similar bill in 2013. Representative Goodlatte has been vocal on his opposition to the RFS and ethanol mandate.  

On January 27, 2015, the U.S. Environmental Protection Agency (EPA) approved the importation of biodiesel made from soybeans from Argentinian biofuel producers as qualifying for U.S. biofuel credits under the federal Renewable Fuel Standard (RFS). Argentina's Biofuels Chamber's (CARBIO) request for an "Alternative Renewable Biomass Tracking Requirement" was approved, which allows foreign manufacturers to be part of the RFS if they follow certain environmental standards. The U.S. biodiesel...

EPA announced that renewable fuels produced from sorghum biomass could qualify as cellulosic fuel under the Renewable Fuel Standard (RFS). This is a result of a preliminary analysis of the Greenhouse Gas (GHG) emissions resulting from the growth and transport of biomass sorghum feedstocks that are used to make biofuels. The analysis, which was conducted in response to a petition from the National Sorghum Producers, assumes that the emissions from production of biofuels from biomass sorghum are...

On December 16, 2014, the Bipartisan Policy Center (BPC) released a report on "Options for Reforming the Renewable Fuel Standard." A copy of BPC's press release on the report, with links to the report and its summary, is also available online. BPC explains that the report results from three meetings of diverse stakeholders throughout 2014. It outlines an inventory of 40 potential regulatory or legislative reforms to the federal Renewable Fuel Standard (RFS). BPC in the report concludes that...

On Wednesday, December 10, 2014, the House Committee on Oversight and Government Reform's Subcommittee on Energy Policy, Health Care and Entitlements held a hearing on "Examining EPA's Management of the Renewable Fuel Standard Program." The sole witness was Janet McCabe, Acting Administrator for Air and Radiation at the U.S. Environmental Protection Agency (EPA). A copy of Ms. McCabe's written testimony is available online. Subcommittee Members on both sides of the aisle sharply criticized EPA...

On October 21, 2014, Citizens for Responsibility and Ethics in Washington (CREW) sued EPA. The suit was filed in the U.S. District Court for the District of Columbia. CREW alleges that EPA failed to comply with its Freedom of Information Act (FOIA) request for documents regarding external and intra-agency communications related to the Agency's formation of the 2014 federal Renewable Fuel Standard (RFS). CREW requested the documents as part of its effort to explore the extent to which the...

Last week, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack spoke at a biofuel industry conference and addressed concerns raised over the likelihood that the final 2014 Renewable Fuel Standard (RFS) rule would include renewable volume obligations (RVO) for total renewable fuel at levels below those included for 2014 under the statute. Generally, total renewable RVOs are comprised of corn-starch ethanol. Secretary Vilsack projected a positive spin on this likelihood, reportedly telling...

Inside EPA reports that the U.S. Environmental Protection Agency (EPA) will take at least 12 more months before a proposed ruling for the 2015 Renewable Fuel Standard (RFS) can be released. This pushes "issuance of a final version toward the end of the 2015 compliance year," while also violating the statutory mandate that EPA has to "issue the annual RFS targets before the compliance year begins." EPA did not meet that schedule in 2014 either, as the RFS is yet to be released...

As previously reported, the U.S. Environmental Protection Agency (EPA) sent the final 2014 Renewable Fuel Standard (RFS) rule to the Office of Management and Budget (OMB) on August 22, 2014. Some sides speculate that OMB will need considerable time to review the final action, especially given the 340,000+ comments submitted to EPA in response to the proposal. Others, however, suggest that OMB will forego its allotted 90-day review period and issue the rule in late September or early October....

On August 22, 2014, the U.S. Environmental Protection Agency (EPA) sent the final 2014 Renewable Fuel Standard (RFS) rule to the Office of Management and Budget (OMB) for its review and formal publication in the Federal Register. This much anticipated review is the last step before public release. Nearly nine months behind schedule currently, it is unclear whether OMB will move quickly to release and publish the rule. Typically, OMB can take anywhere between 30 to 90 days to review a proposal,...

In an August 11, 2014, filing with the U.S. Securities and Exchange Commission, cellulosic biofuel company KiOR, Inc. (KiOR) reported that without any new financial commitments, the Company only has enough funding to operate through September 2014. This announcement is significant for the biofuels industry, as EPA had relied on KiOR's projected volumes of available cellulosic biofuels to make up a significant part of the 2013 cellulosic renewable volume obligations (RVO) under the federal...

The Energy Biosciences Institute at the University of Illinois recently helped fund two research projects that provide recommendations to prevent invasive species from being planted as new crops and used for bioenergy production. The two studies are: (1) "Resolving Regulatory Uncertainty: Legislative Language for Potentially Invasive Bioenergy Feedstocks"; and (2) "Bioenergy Feedstocks at Low Risk for Invasion in the U.S.: A 'White List' Approach." The first study...

On July 31, 2014, EPA again extended the 2013 Renewable Fuel Standard (RFS) annual compliance reporting and attest engagement reporting deadlines for obligated parties under the law. The Agency issued a direct final rule extending the deadlines to 30 and 90 days, respectively, after the final 2014 RFS rule is published in the Federal Register. EPA simultaneously issued a rule proposing the new deadlines on which the public may comment. The new deadlines will become effective September 29, 2014,...

Reportedly, U.S. House Energy and Commerce Committee Chair Fred Upton (R-MI) plans to introduce a bill to modify the federal Renewable Fuel Standard (RFS). The bill is expected to be introduced soon after EPA releases its final rule setting the final 2014 RFS volume requirements for obligated parties under the law. Just this week the Administration has made public statements to suggest that the final 2014 rule will increase volume requirements from the proposed version published last fall....

On July 15, 2014, Inside EPA reported that "the White House is examining options for reversing EPA's proposed cuts to several renewable fuel standard (RFS) production targets in order to promote biofuels that create fewer greenhouse gases (GHGs) than conventional fuels, informed sources say, as part of the Obama administration's broader efforts to combat climate change." The article also quotes sources stating: "[F]igures under discussion between administration officials...

On July 2, 2014, EPA released a signed, pre-published version of its final rule for "Renewable Fuel Standard (RFS) Pathways II and Modifications to the RFS Program, Ultra Low Sulfur Diesel Requirements, and E15 Misfueling Mitigation Requirements." Under the rule, EPA qualifies certain additional fuel pathways that the Agency has determined meet the lifecycle greenhouse gas reduction requirements for cellulosic biofuel under the RFS. The final rule also provides guidance regarding the...

On June 26, 2014, the Congressional Budget Office (CBO) issued a 38-page report on the federal Renewable Fuel Standard (RFS), "The Renewable Fuel Standard: Issues for 2014 and Beyond." The report examines potential compliance with the RFS through 2017 under three scenarios and evaluates the effects on food and fuel prices under each one. A copy of CBO's summary of the report is available online. A copy of the full report is available online. The report evaluated the impact on food...

On June 20, 2014, the National Biodiesel Board (NBB) filed a petition with the U.S. Court of Appeals for the District of Columbia Circuit requesting that the court rehear whether Monroe Energy (Monroe), a refining subsidiary of Delta Airlines, had standing to challenge EPA's final rule setting the 2013 Renewable Fuel Standard (RFS). BRAG reported on the court's recent denial of Monroe's challenge to that final rule. A copy of that report is available online. As BRAG reported, the...

On May 29, 2014, the Environmental Working Group (EWG) released a report entitled "Ethanol's Broken Promise: Using Less Corn Ethanol Reduces Greenhouse Gas Emissions." A copy of the report is available online. The report concludes that "[t]he Environmental Protection Agency's pending proposal to cut the amount of corn ethanol that must be blended into gasoline in 2014 by 1.39 billion gallons would lower U.S. greenhouse gas emissions by the equivalent of 3 million tons of...

On Friday, May 23, 2014, EPA published its semi-annul regulatory agenda (Agenda) indicating the Agency's upcoming priorities and timelines. A copy of the Agenda is available online. According to the Agenda, EPA plans to issue several actions that will impact the biofuels industry, including the following: * 2014 Renewable Fuel Standard (RFS): EPA anticipates issuing the final rule in June 2014. BRAG has issued a report on the 2014 RFS. A copy of that report is available online. * 2015 RFS:...

Renewable Fuel Standard (RFS) advocacy is continuing at a steady pace in anticipation of the expected imminent release of the U.S. Environmental Protection Agency's (EPA) 2014 final RFS rule. Some biofuels advocates believe that they are making an impact with their stepped-up advocacy, as they believe the Administration will adjust the total renewable and advanced biofuel targets upwards from its proposed reductions to those categories of renewable fuels. The final rule is expected to be issued...

On May 2, 2013, EPA published a proposed rule and a direct final rule that would amend its 2013 cellulosic requirement published on August 15, 2013. The rules are available here and here. Through these actions, EPA is proposing a revised and reduced cellulosic standard for 2013 of 810,185 gallons. As EPA explains, the direct final rule will be "effective on July 1, 2014 without further notice, unless EPA receives relevant adverse comment by June 2, 2014. If EPA receives relevant adverse...

On May 6, 2014, in what is largely seen as a win for the U.S. Environmental Protection Agency (EPA) and the biofuels industry, the U.S. Court of Appeals for the District of Columbia Circuit rejected the challenge to EPA's final 2013 Renewable Fuel Standard (RFS) rule by Monroe Energy, LLC (Monroe Energy), a refinery and subsidiary of Delta Airlines. In Monroe Energy, LLC v. EPA, the court held that EPA properly utilized its authority under the federal RFS to set the 2013 RFS volume...

The White House Office of Management and Budget (OMB) has reportedly received the final rule on "RFS Pathways II and Technical Amendments to the RFS2 Standards" (RFS Pathways II rule) from EPA. This is the last step in the process before EPA publishes the final rule. EPA's summary of its proposed RFS Pathways II rule is available online. A copy of the 38-page proposed rule, which was published in the Federal Register on June 14, 2013, is also available online. The Biobased and...

EPA is vigorously questioning results of a U.S. Department of Energy (DOE)-funded study that concludes ethanol produced from crop residues such as corn stover can have higher lifecycle greenhouse gas (GHG) emissions than conventional gasoline, arguing that the findings are based on an "extremely unlikely scenario" of unsubstantiated agricultural practices. RFA is also highly critical of the new study, claiming its "methodology is fundamentally flawed and its conclusions are highly...

Oral argument was heard on April 7, 2014, on a joint motion filed in the U.S. Court of Appeals for the D.C. Circuit by EPA, API, and AFPM to sever certain issues and hold them in abeyance pending administrative reconsideration. Monroe Energy LLC et al. v. EPA, D.C. Cir., No. 13-1265. According to the Respondent-Intervenors Biotechnology Industry Organization (BIO), Growth Energy, and Renewable Fuels Association (RFA) in their April 16, 2014, response opposing EPA's motion, severing the case...

On April 22, 2014, the U.S. Environmental Protection Agency (EPA) signed off on a Direct Final Rule requiring petroleum refiners and importers to blend 810,185 gallons of cellulosic fuels into the fuel supply in 2013 in response to petitions for reconsideration of the Final Rule from the American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM). The pre-publication version of the Direct Final Rule is available online. Petitioners successfully argued that...

On April 11, 2014, the American Petroleum Institute (API) and American Fuel & Petrochemical Manufacturers (AFPM) petitioned the U.S. Court of Appeals for the District of Columbia Circuit to place a hold on their challenge to EPA's 2013 RFS final rule until EPA completes its reconsideration of the rule. EPA joined in the motion. Just days earlier, on Monday, April 7, 2014, the parties to the litigation challenging EPA's 2013 final RFS rule, including API, AFPM, and EPA, were in court...

On April 10, 2014, the U.S. Environmental Protection Agency (EPA) released its strategic plan through 2018. A copy of the plan is available online. It includes statements by EPA reinforcing its commitment to enhancing implementation of the Toxic Substances Control Act of 1976 (TSCA) and the federal Renewable Fuel Standard (RFS) over the next four years. In the 99-page document, EPA reiterates its position supporting enhancing TSCA. To that end, EPA stresses that "[p]otential legislative...

On April 7, 2014, the U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments in Monroe Energy, LLC v. EPA (No. 13-1265). In the case, Monroe Energy, a subsidiary of Delta Airlines, the American Petroleum Institute (API), and the American Fuel & Petrochemical Manufacturers (AFPM) are challenging EPA's final 2013 RFS rule. The plaintiffs' arguments include that the rule should be overturned because EPA improperly considered the availability of carryover...

On April 8, 2014, the Senate Committee on Agriculture, Nutrition and Forestry held a hearing on "Advanced Biofuels: Creating Jobs and Lower Prices at the Pump." The following witnesses testified at the hearing: Mr. Richard Childress, CEO, Richard Childress Racing, LLC; Mr. Jan Koninckx, Global Business Director for Biorefineries, DuPont Industrial Biosciences; Mr. Brooke Coleman, Executive Director, Advanced Ethanol Council; Dr. Sumesh Arora, Vice President, Innovate Mississippi,...

On March 28, 2014, Representatives Bob Goodlatte (R-VA), Jim Costa (D-CA), Steve Womack (R-AR), and Peter Welch (D-VT) sent a letter to U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy with targeted questions related to the implementation of the Renewable Fuel Standard (RFS). The four Members of Congress all believe the RFS is not working in its current form. Last fall, they introduced H.R. 1462, the "RFS Reform Act," which eliminates corn-based ethanol...

The U.S. Environmental Protection Agency (EPA) has announced that it will take approximately the next six months to evaluate and improve the petition process for new fuel pathways under the federal Renewable Fuel Standard (RFS). Every producer that wants their renewable fuel to qualify under the RFS must have its fuel pathway, including feedstock and technology process, approved by EPA. EPA intends to make the process more efficient and transparent, and thereby reduce the amount of time it takes...

U.S. cellulosic biofuels producer, KiOR, filed its annual report with the Securities and Exchange Commission (SEC) this week. In the report, the company expresses concerns about sufficient funding to continue operations moving forward. Although KiOR has received a conditional funding commitment of up to $25 million from its founder Vinod Khosla, receipt of the funding depends on certain production milestones that may not be met. In December 2013, KiOR reported a $347.5 million net loss, and in...

On February 25, 2014, EPA sent its final rule to "Establish a Voluntary Quality Assurance Program for Verifying the Validity of Renewable Identification Numbers Under the RFS2 Program" to the U.S. Office of Management and Budget (OMB) for final review. EPA is expected to take action to release the final rule as soon as OMB completes its review. As proposed, the rule would be retroactive to January 2013. It is the result of efforts to help restore investor confidence in the Renewable...

On February 20, 2014, the National Highway Traffic Safety Administration's (NHTSA) proposed rule on "Alternative Fuel Vehicle Badging, Fuel Compartment Labels and Consumer Information on Alternative Fuel Usage" was published in the Federal Register. Comments are due to NHTSA by April 21, 2014. A copy of the proposed rule is available online. The proposed rule would require badges, labels, and owner's manual information for new passenger cars, low speed vehicles (LSV), and...

On February 11, 2014, Representative Dave Loebsack (D-IA) introduced H.R. 4051, the Renewable Fuel Utilization, Expansion, and Leadership (Re-FUEL) Act. The bill currently has no co-sponsors. The bill is designed to help fuel retailers with investments in renewable and alternative fuel infrastructure to provide consumers with the increased ability to choose alternative fuels at the pump. It would create a competitive grant program through the U.S. Department of Agriculture (USDA) to invest in...

On February 4, 2014, EPA filed a 113 page brief in the U.S. Court of Appeals for the District of Columbia. In its brief, EPA attempts to defend its final rule setting the 2013 RFS in the face of challenges to it by Monroe, the American Petroleum Institute, and American Fuel and Petrochemical Manufacturers. EPA argues that it was reasonable to maintain the total renewable and advanced biofuel levels under the RFS statute for 2013 because it determined that sufficient compliance options would be...