Energy and Environment MonitorJuly 12, 2010 EPA proposed the 2011 percentage standards for the four fuels categories under the agency’s Renewable Fuel Standard program, known as RFS2 (published July 20, 2010 [75 FR 42237-42268].
The Energy Independence and Security Act of 2007 (EISA) established the annual renewable fuel volume targets, reaching an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA is required to set renewable fuel standards each November for the following year based on gasoline and diesel projections from the Energy Information Administration (EIA). EPA is also required to set the cellulosic biofuel standard each year based on the volume projected to be available during the following year, using EIA projections and assessments of production capability from industry. If the projected available volume of cellulosic biofuel is less than the required volume specified in the statute, EPA must lower the required volume used to set the annual cellulosic biofuel percentage standard to the projected available volume. EPA must also determine whether the advanced biofuel and/or total renewable fuel volumes should be reduced by the same or a lesser amount.
This proposed rule provides the projected production of cellulosic biofuel for 2011, and proposed percentage standards for compliance year 2011.The annual standards for cellulosic, biomass-based diesel, advanced biofuel, and total renewable fuels that apply to all gasoline and diesel produced or imported in year 2011and calculates a percentage-based standard for the following year. Based on the standard, each refiner, importer and non-oxygenate blender of gasoline determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.
To calculate the percentage standard for cellulosic biofuel for 2011, EPA has used a potential volume range of 6.5 - 25.5 million ethanol-equivalent gallons (representing 5 - 17.1 million physical gallons). For the final rule, EPA intends to pick a single value from within this range to represent the projected available volume on which the 2011 percentage standard for cellulosic biofuel will be based. EPA also proposes that the applicable volumes for biomass-based diesel, advanced biofuel, and total renewable fuel for 2011 will be those specified in the statute.
· Biomass-based diesel (0.80 billion gallons; 0.68 percent)
· Advanced biofuels (1.35 billion gallons; 0.77 percent)
· Cellulosic biofuels (5 – 17.1 million gallons; 0.004 – 0.015 percent)
Four separate standards are required under the RFS2 program, corresponding to the four separate volume requirements shown in Table 2. The percentage standards represent the ratio of renewable fuel volume to non-renewable gasoline and diesel volume. The proposed standards for 2011 are shown below:
Proposed Percentage Standards for 2011:
Cellulosic biofuel 0.004-0.015%
Biomass-based diesel 0.68%
Advanced biofuel 0.77%
Based on analysis of market availability, EPA is proposing a 2011 cellulosic volume that is lower than the EISA target. There are two proposed changes to the RFS2 regulations. The first would create a temporary and limited means for certain renewable fuel producers to generate delayed Renewable Identification Numbers (RINs) after they have produced and sold renewable fuel. This proposal would apply only to those producers who use canola oil, grain sorghum, pulpwood, or palm oil to produce renewable fuel. The second proposal would establish a petition process that foreign countries could use to establish an aggregate approach to compliance with the renewable biomass provision akin to that applicable to the U.S.
July 1, 2010, was the deadline that major refiners, blenders, and importers had to meet for reporting, registration, and other key compliance requirements under EPA’s expanded renewable fuels standard program.
Comments on the proposed rule are due 30 days after publication in the Federal Register; as of this writing the rule has not yet been published in the Federal Register.
EPA is also proposing changes to the RFS2 regulations that would potentially apply to renewable fuel producers who use canola oil, grain sorghum, pulpwood, or palm oil as a feedstock. This program rule would allow the fuel produced by those feedstocks dating back to July 1, 2010 be used for compliance should EPA determine in a future rulemaking that such fuels meet certain greenhouse gas reduction thresholds.
The second change would set criteria for foreign feedstocks to be treated like domestic feedstocks in terms of the documentation needed to prove that they can be used to make qualifying renewable fuel under the RFS2 program.
EPA is seeking public comment on the renewable fuel standards and the proposed changes to the RFS2 regulations, which are due 30 days following publication of the proposed rule in the Federal Register.
July 1, 2010, was the deadline that major refiners, blenders, and importers had to meet for reporting, registration, and other key compliance requirements under EPA’s expanded renewable fuels standard program.
EPA is seeking public comment on the renewable fuel standards and the proposed changes to the RFS2 regulations, which are due August 20, 2010 Link to rule is http://edocket.access.gpo.gov/2010/2010-17281.htm
More information on the standards and regulations: http://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm
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