EPA Releases Proposed Renewable Volume Obligations for 2017

The proposed grain-based ethanol volume is higher than the 2016 amount at 14.8 billion gallons.

May 19, 2016

WASHINGTON – On Wednesday, the Environmental Protection Agency (EPA) released proposed 2017 Renewable Volume Obligations (RVOs) for the Renewable Fuel Standard (RFS). The proposed 2017 conventional biofuel—or grain-based ethanol—volume of 14.8 billion gallons is higher than the 2016 amount of 14.5 billion gallons, but lower than the 15 billion gallons set by statute for the RFS. See the charts below for the specific volumes for each category. 

NACS has long advocated that the RVOs must reflect the demand for renewable fuels in the marketplace. “We are taking a close look at EPA’s proposed RVOs and will be reaching out to the industry to see how these increased volumes would affect our retailers,” said Paige Anderson, NACS director, government relations. “We want to ensure that the market is able to absorb these increased volumes of renewable fuels—and avoid hitting the blend-wall.”

By law, EPA must finalize the 2017 RVOs by November 30, 2016. EPA also announced that it will hold a public hearing on June 9 in Kansas City, Missouri, and that the public comment period will remain open until July 11. Read the EPA’s summary of its proposed rule here

EPA’s proposed RVOs and percentage standards are as follows, with 2016 final volumes and percentage standards listed for reference:

Volumes Used to Determine the Proposed Percentage Standards
2016 2017 2018
Cellulosic biofuel 230 mill gal 230 mill gal n/a
Biomass-based diesel 1.90 bill gal 2.0 bill gal 2.1 bill gal
Advanced biofuel 3.61 bill gal 4.0 bill gal n/a
Total renewable fuels 18.11 bill gal 18.8 bill gal n/a

Units for all volumes are ethanol-equivalent, except for biomass-based diesel volumes which are expressed as physical gallons.

Proposed Percentage Standards
2016 2017
Cellulosic biofuel 0.128% 0.173%
Biomass-based diesel 1.59% 1.67%
Advanced biofuel 2.01% 2.22%
Total renewable fuels 10.10% 10.44%
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