EPA Seeks Public Comments on Potential Cuts to 2018 and 2019 Biodiesel Obligations

In its July proposed rule, the agency put forth a volume of 2.1 billion gallons of biomass-based diesel for 2019.

October 05, 2017

WASHINGTON – Yesterday, the Environment Protection Agency (EPA) published in the Federal Register a Notice of Data Availability (NODA) to provide public notice and an opportunity to comment on potential reductions to the 2018 biomass-based diesel, advanced biofuel, and total renewable fuel volumes, as well as the 2019 biomass-based diesel volume under the Renewable Fuel Standard (RFS) program. In its July proposed rule, EPA had put forth a volume of 2.1 billion gallons of biomass-based diesel for 2019—the same amount as 2018 levels finalized in November 2016.

As previously reported, two recent developments—the expiration of the biodiesel blenders’ tax credit at the end of 2016 and the U.S. biodiesel industry’s efforts to impose tariffs on biomass-based diesel imported from Argentina and Indonesia—led to EPA’s announcement to seek comments on potential cuts to biodiesel and advanced biofuel volumes. 

The deadline to file comments is October 19, 2017—only a 15 day comment period. After the comment period closes, EPA will review all comments and send its final rule for the renewable volume obligations to the Office of Management and Budget (OMB).  By statute, EPA is supposed to finalize the 2018 volumes by November 30, 2017. 

EPA’s announcement signals its intent to lower the biodiesel and advanced biofuel volumes. Any regulatory action that impacts the renewable volume obligations under renewable fuels standard program affects the convenience and fuel retailing industry.

NACS will be submitting comments. If you have any questions regarding the public comment period, please contact Paige Anderson, NACS, Director Government Relations at panderson@convenience.org. For members of NACS, a memorandum has been prepared by counsel to provide more details in EPA’s action.

The Federal Register notice is available online.

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