EPA Finalizes RFS Numbers for 2014-2016

Agency used waiver authority to set numbers lower than those called for by Congress.

December 01, 2015

WASHINGTON, D.C. – Yesterday, the Environmental Protection Agency (EPA), which was under a court-ordered deadline to finalize numbers by November 30, issued a final rule establishing renewable volume obligations (RVOs) for 2014, 2015 and 2016.

Although the final numbers listed below are higher than initially proposed by the agency earlier this year, the EPA did use its waiver authority to set the numbers lower than those called for by Congress in the most recent revisions to the Renewable Fuel Standard (RFS). Specifically, EPA’s 2016 standard requires blending 18.11 billion gallons of renewable fuels into the fuel supply rather than the 22.25 billion gallons required under federal law.

For ethanol, the new 2016 standard calls for 14.5 billion gallons to be blended into the fuel supply next year, 500,000 gallons more than the agency had initially proposed. However, that number is also 500,000 gallons less than the target 15 billion gallons required by the statute.

Volumes Used to Determine the Final Percentage Standards
 
2014
2015
2016
2017
Cellulosic biofuel
33 mill gal
123 mill gal
230 mill gal
n/a
Biomass-based diesel
1.63 bill gal
1.73 bill gal
1.90 bill gal
2.00 bill gal
Advanced biofuel
2.67 bill gal
2.88 bill gal
3.61 bill gal
n/a
Total renewable fuels
16.28 bill gal
16.93 bill gal
18.11 bill gal
n/a

All volumes are ethanol-equivalent, except for biomass-based diesel, which is actual.

Final Percentage Standards
 
2014
2015
2016
Cellulosic biofuel
0.019%
0.069%
0.128%
Biomass-based diesel
1.41%
1.49%
1.59%
Advanced biofuel
1.51%
1.62%
2.01%
Total renewable fuels
9.19%
9.52%
10.10%

NACS is continuing to review the more than 200-page rule, but at first blush is pleased that EPA exercised its waiver authority to set RVOs lower than the levels mandated by Congress. Further analysis is needed, and NACS welcomes input from members regarding how these numbers will impact the fuels marketplace.

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