WASHINGTON – The U.S. Environmental Protection Agency (EPA) announced last week proposed changes to the Renewable Fuel Standard (RFS) volume mandate for 2014.
Developed with input from the U.S. Department of Energy and U.S. Department of Agriculture, the proposal seeks public input on annual volume requirements for renewable fuels in all motor vehicle gasoline and diesel produced or imported by the United States in 2014. The proposal seeks to put the Renewable Fuel Standard (RFS) program on “a steady path forward,” according the EPA, while continuing to seek input on different approaches to address the “E10 blend wall.”
EPA’s proposal discusses a variety of approaches for setting the 2014 RFS, including a number of production and consumption ranges for key categories of biofuel covered by the RFS program. The proposal seeks comment on a range of total renewable fuel volumes for 2014 and proposes a level within that range of 15.21 billion gallons. Specifically, EPA is seeking comment on the following proposed volumes:
Category |
Proposed Volume * |
Range |
Cellulosic biofuel |
17 mill gal |
8-30 million gallons |
Biomass-based diesel |
1.28 bill gal |
1.28 billion gallons |
Advanced biofuel |
2.20 bill gal |
2.0-2.51 billion gallons |
Renewable fuel |
15.21 bill gal |
15.00-15.52 billion gallons |
*All volumes are ethanol-equivalent, except for biomass-based diesel which is actual |
Nearly all gasoline sold in the United States is now E10 (fuel with up to 10% ethanol). While production of renewable fuels has been growing in recent years, advances in vehicle fuel economy and other economic factors have pushed gasoline consumption far lower than what was expected when Congress passed the RFS in 2007. As a result, we are now at the “E10 blend wall,” the point at which the E10 fuel pool is saturated with ethanol. If gasoline demand continues to decline, as currently forecast, continuing growth in the use of ethanol will require greater use of higher ethanol blends such as E15 and E85.
The 2014 proposal seeks input on what additional actions could be taken by the government and industry stakeholders to help overcome current market challenges, and to minimize the need for adjustments in the statutory renewable fuel volume requirements in the future. Looking forward, the proposal indicates that growth in capacity for ethanol consumption would continuously be reflected in the standards set beyond 2014.
In a separate action, EPA is also seeking comment on petitions for a waiver of the RFS that would apply in 2014. EPA expects that a determination on the substance of the petitions will be issued at the same time that EPA issues a final rule establishing the 2014 RFS.
Once the proposal is published in the Federal Register, it will be open to a 60-day public comment period.