WASHINGTON – Last week the U.S. Environmental Protection Agency (EPA) finalized increases in renewable fuel volume requirements across all categories of biofuels under the Renewable Fuel Standard (RFS) program. In a required annual rulemaking, EPA’s action finalizes the volume requirements and associated percentage standards for cellulosic biofuel, advanced biofuel and total renewable fuel for 2017, and for biomass-based diesel for 2018.

Some elements of EPA’s action:

• Non-advanced or “conventional” renewable fuel increases in 2017, meeting the 15 billion-gallon congressional target for conventional fuels.
• The standard for biomass-based biodiesel, which must achieve at least 50% lifecycle greenhouse gas emission reductions compared to petroleum-based diesel, grows by 100 million gallons. The required volume of biomass-based diesel for 2017 is twice that of the minimum congressional target.
• Cellulosic biofuel, which must achieve at least 60% lifecycle greenhouse gas emissions reductions, grows 35% over the 2016 standard.
• The advanced biofuel standard, comprised of biomass-based diesel, cellulosic biofuel and other biofuel that achieves at least 50% lifecycle greenhouse gas emissions reductions, increases 19% over the 2016 standard.
• Total renewable fuel volumes grow 1.2 billion gallons from 2016 to 2017, a 6% increase.

Renewable Fuel Volume Requirements for 2014-2018

Final 2017 Percentage Standards

The Clean Air Act requires EPA to set annual RFS volume requirements for four categories of biofuels, and EPA implements the RFS program in consultation with the U.S. Department of Agriculture and the U.S. Department of Energy.

During the rulemaking process, NACS shared several concerns with EPA regarding the RFS program. NACS supported the original proposed volumes for 2017 and shared the importance of ensuring the volumes reflect the market conditions in order to avoid hitting the blend wall—the point at which the requirements for renewable fuels consumption exceed the volume of compliance flexibility under the rule. NACS will be closely monitoring how this expanded required level of renewable fuels is absorbed into the marketplace.

Read more on EPA’s announcement.