EPA hikes renewable fuel volumes by 6 per cent for 2017

WASHINGTON, D.C. – The EPA finalized volume requirements and associated percentage standards that apply under the RFS program in calendar year 2017 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel.

The EPA also finalized the volume requirement for biomass-based diesel for 2018.
The final volumes represent continued growth over historic levels. The final standards meet or exceed the volume targets specified by Congress for total renewable fuel, biomass-based diesel, and advanced biofuel.

U.S. Senator Joni Ernst (R-IA) approved of the action.

“I am pleased the EPA has finally listened to the American people as well as the comments my colleagues and I have pushed forward, and set the final volume requirements for conventional biofuels for 2017 at appropriate and congressionally approved levels. The RFS is critical in reducing our dependence on foreign oil, and provides consumers with choices at the pump. Most importantly, it spurs investment and research in renewable fuels and supports our rural economy in Iowa.

“Iowa is a leader in ethanol and biodiesel production and retail, and maintaining a strong RFS aligned with congressional intent is critically important to our state and our country. As we move into a new Congress, I remain committed to promoting innovation in this field while protecting our domestic energy security.

Earlier this year, the Ernst and others called for the EPA to follow Congressional intent when the proposed rule was initially released earlier this year. In addition, Ernst joined a bipartisan group of 39 senators on June 26, 2016, in sending a letter to the EPA encouraging the agency to set the RVO at the level directed by Congress.

Iowa Governor Terry Branstad also weighed in on the decision.

“I am very encouraged that the EPA has decided to increase its conventional renewable fuel volume requirement to the levels set by Congress for 2017, putting the program back on the right track,” said Governor Branstad. “Although the biodiesel numbers did not grow as much as the industry advocated, I understand that biodiesel is best positioned to compete for increased volumes in the increased advanced biofuels category. Federal decisions have led to unnecessary uncertainty in agriculture and the biofuels industry the last few years. In this week of Thanksgiving, Iowans should generally be thankful that our nation is moving back toward a robust RFS that is vital to the revitalization of rural America.”

Total renewable fuel volumes grow by 1.2 billion gallons from 2016 to 2017, a 6 percent increase.

Advanced renewable fuel – which requires 50 percent lifecycle carbon emissions reductions – grow by roughly 700 million gallons between 2016 and 2017.
Non-advanced or “conventional” renewable fuel increases in 2017 meet the 15 billion gallon congressional target for conventional fuels.

The standard for biomass-based biodiesel – which must achieve at least 50 percent 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 as high as the minimum congressional target.

Cellulosic biofuel – which must achieve at least 60 percent lifecycle greenhouse gas emissions reductions – grows by 35 percent over the 2016 standard.
The advanced biofuel standard – which is comprised of biomass-based diesel, cellulosic biofuel, and other biofuel that achieves at least 50 percent lifecycle greenhouse gas emissions reductions – increases by 19 percent over the 2016 standard.